EXHIBIT 99.08
Travelers Group 401(k) Savings Plan
Financial Statements and Schedules
December 31, 1995 and 1994
(with Independent Auditors' Report Thereon)
Travelers Group 401(k) Savings Plan
December 31, 1995 and 1994
Index
Page
----
Independent Auditors' Report 1
Financial Statements:
Statements of Net Assets Available for Plan Benefits
at December 31, 1995 and 1994 2
Statements of Changes in Net Assets Available for Plan Benefits
for the years ended December 31, 1995 and 1994 3
Notes to Financial Statements 4
Supplemental Schedules:
Schedule to Form 5500: Item 27(a)
Schedule of Assets Held for Investment Purposes
at December 31, 1995 26
Schedule of Assets Held for Investment Purposes
Which Were Both Acquired and Disposed Within the Plan Year
for the year ended December 31, 1995 28
Schedule to Form 5500: Item 27(d)
Schedule of Reportable Transactions
for the year ended December 31, 1995 29
The other schedules required by Item 27 of Form 5500 are not applicable and
are therefore omitted.
Independent Auditors' Report
To the Plans Administration Committee of
Travelers Group Inc.:
We have audited the accompanying statements of net assets available for plan
benefits of Travelers Group 401(k) Savings Plan as of December 31, 1995 and
1994, and the related statements of changes in net assets available for plan
benefits for the years then ended. 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 as
of December 31, 1995 and 1994, and the changes in net assets available for plan
benefits for the years then ended in conformity with generally accepted
accounting principles.
Our December 31, 1995 audit was performed 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, assets held for investment purposes
which were both acquired and disposed within the plan year, and reportable
transactions are presented for the purpose of additional analysis and are not a
required part of the basic financial statements, but are supplementary
information required by the Department of Labor's Rules and Regulations for
Reporting and Disclosure under the Employee Retirement Income Security Act of
1974, as amended. The supplemental schedules have been subjected to the
auditing procedures applied in the audit of the basic financial statements
and, in our opinion, are fairly stated in all material respects in relation to
the basic financial statements as of and for the year ended December 31, 1995
taken as a whole.
/s/ KPMG Peat Marwick LLP
New York, New York
June 21, 1996
1
Travelers Group 401(k) Savings Plan
Statements of Net Assets Available for Plan Benefits
December 31, 1995 and 1994
1995 1994
---- ----
Assets:
Investments (notes 2 and 3) $1,193,575,670 $830,805,913
Cash 720,652 312,574
------------- -----------
1,194,296,322 831,118,487
------------- -----------
Receivables:
Contribution 21,930,809 25,670,548
Dividends and other 1,103,858 1,490,848
------------- -----------
Total receivables 23,034,667 27,161,396
------------- -----------
Total assets 1,217,330,989 858,279,883
------------- -----------
Liabilities:
Payable for investment purchases 1,537,443 3,206,995
------------- -----------
Net assets available for plan benefits $1,215,793,546 $855,072,888
============= ===========
See accompanying notes to financial statements.
2
Travelers Group 401(k) Savings Plan
Statements of Changes in Net Assets Available for Plan Benefits
Years ended December 31, 1995 and 1994
1995 1994
---- ----
Investment activity:
Dividends $ 54,730,004 $ 37,721,863
Interest 10,397,567 11,979,519
Appreciation (depreciation) in fair value
of investments 238,944,182 (65,295,864)
------------- ------------
304,071,753 (15,594,482)
Less: Trustee/administrative expenses (2,207,972) (2,163,517)
------------ ------------
Net investment income (loss) 301,863,781 (17,757,999)
------------- ------------
Contributions:
Participant 112,718,750 115,976,200
Employer 24,143,255 30,677,722
Rollover 8,030,943 10,813,472
------------- -------------
Total contributions 144,892,948 157,467,394
------------- -------------
Distributions to participants (86,127,167) (60,657,867)
------------ ------------
Increase in net assets available for plan
benefits 360,629,562 79,051,528
------------- -------------
Net assets available for plan benefits:
Beginning of year 855,072,888 772,462,946
Transfers from Lehman Brothers Holdings, Inc. 91,096 3,558,414
------------- -------------
End of year $1,215,793,546 $ 855,072,888
============= =============
See accompanying notes to financial statements.
3
Travelers Group 401(k) Savings Plan
Notes to Financial Statements
December 31, 1995 and 1994
1. Plan Description
The following brief description of Travelers Group 401(k) Savings Plan (the
"Plan") is provided for general information purposes only. Participants
should refer to the Travelers Group 401(k) Savings Plan Document (as amended
and restated as of June 30, 1994) for more complete information.
The Plan covers all eligible employees of Travelers Group Inc.
("Travelers"), the Plan sponsor, and eligible employees of subsidiaries and
affiliates of Travelers (the "Company") as may become participating
companies. The Plan is administered by the Plans Administration Committee
of Travelers Group Inc.
The Plan is a defined contribution plan designed to encourage savings on the
part of eligible employees. Eligible employees may elect to have a portion
of their regular pay, including overtime, reduced each pay period, in any
one percent increment, by an amount from 1% to 15% of their compensation
(subject to a statutory limitation of $9,240 for each of 1995 and 1994) as
"pre-tax contributions" and the Company will make a contribution, equal to a
specified percentage of the participant's contribution, on their behalf as
a pre-tax contribution.
Pre-tax contributions and employer contributions, as well as the earnings
thereon, are taxed to the participant only at the time of distribution.
Travelers, for itself or on behalf of the Company, as appropriate,
contributes a "matching employer contribution" on behalf of each participant
as of the last day of the Plan year. For the years ended December 31, 1995
and 1994, the matching employer contribution made by Travelers equaled 100%
of each participant's pre-tax contributions up to an annual maximum of
$1,000. In addition, Travelers, for itself or on behalf of the Company,
made contributions on behalf of eligible employees who elected to have pre-
tax contributions invested in the Travelers Group Inc. Common Stock Fund by
having such contributions invested at a 5% discount from the fair value of
such stock ("discount contributions"). The Plan currently does not allow
after-tax contributions.
Although it has not expressed any intention to do so, Travelers has the
right under the Plan to discontinue its contributions at any time and to
terminate the Plan subject to the provisions of the Employee Retirement
Income Security Act of 1974, as amended ("ERISA"). In the event of Plan
termination, either full or partial, all amounts credited to the
Participants' accounts shall become 100 percent vested and, therefore, not
be subject to forfeiture.
Fund Transfers and Allocation of Contributions
----------------------------------------------
Participants may elect to divide their contribution among funds in
increments divisible by 5%.
Matching employer contributions are invested in the Travelers Group Inc.
Common Stock Fund.
4
Travelers Group 401(k) Savings Plan
Notes to Financial Statements
1. Plan Description (Continued)
A participant may elect to suspend his/her pre-tax contributions, as soon as
administratively practicable, by filing prior written notice with the Plan
administrator. Such participant may thereafter resume pre-tax contributions
as of the first pay period beginning in any calendar month, subject to the
Plan's notice requirements. In addition, a participant may change the rate
of his/her pre-tax contributions as of the first pay period beginning in any
calendar month, subject to the Plan's notice requirements.
A participant may elect to change the allocation of future pre-tax
contributions among the funds once each calendar month as of the first day
of any pay period, subject to the Plan's notice requirements.
A participant may elect to transfer the value of his/her pre-tax
contributions in increments divisible by 5% or a specified number of whole
shares from one or more of the investment funds to another investment fund
or funds once each calendar month. The transfer will be effective as of the
last business day of the calendar month subject to the Plan's notice
requirements.
Contributions
-------------
The rights of a participant to his/her pre-tax contributions and any
earnings thereon are at all times fully vested and non-forfeitable.
Matching employer contributions are fully vested and non-forfeitable for
those participants whose initial date of employment is before January 1,
1992. For those participants whose initial date of employment is on or
after January 1, 1992, matching employer contributions are 100% vested and
non-forfeitable after five years of service.
Rollover and Transfer Contributions
-----------------------------------
The Plan permits participants to have their interests in other qualified
profit-sharing plans transferred to the Plan or to make rollover
contributions into the Plan from an individual retirement account (or
similar arrangement) resulting from a rollover from another qualified plan
or directly from another qualified plan. Such transfers or rollovers to the
Plan may only be made with the approval of the Plan administrator and do not
affect any other contributions made by or on behalf of a participant.
Loans
-----
Subject to the Plan's provisions, the requirements contained within
ERISA and the Internal Revenue Code of 1986, as amended (the "Code"),
a participant may apply for a loan from the Plan at an annual interest
rate equal to one percentage point above the Prime Rate published in The
Wall Street Journal for the first business day of the month in which the
loan application is received. The loan repayment by a participant who is
employed by the Company is generally made through after-tax payroll
deductions.
5
Travelers Group 401(k) Savings Plan
Notes to Financial Statements
1. Plan Description (Continued)
Withdrawals
-----------
Prior to termination of employment, a participant may withdraw, as of the
last business day of any month, subject to the Plan's notice requirements,
all or a portion of the value of his or her rollover contributions account,
all or any portion of the vested value of his/her account if the participant
has attained age 59-1/2 or becomes totally and permanently disabled, or all
or any portion of the value of his/her pre-tax contributions account in the
event of demonstrated financial hardship, subject to the Plan's provisions.
Withdrawals to which a participant is entitled are the amounts that can be
provided by the contributions and income thereon (including net realized and
unrealized investment gains and losses) allocated to each participant's
account.
Withdrawals from the Travelers Group Inc. Common Stock Fund and the American
Express Common Stock Fund may be paid in either shares of common stock or
cash at the discretion of the participant. Fractional shares and
withdrawals from other funds are paid in cash.
Distributions
-------------
The participant shall have distributed the total of his/her account in a
lump-sum payment on the last business day of the month coincident with
his/her retirement date. If the participant leaves the Company before
retirement, he/she may elect to have his/her account distributed to him/her
as of the last business day of the month coincident to his/her last day of
employment. Distributions from the Travelers Group Inc. Common Stock Fund
and the American Express Common Stock Fund may be paid in either shares of
common stock or cash at the discretion of the participant. Fractional
shares and distributions from other funds are paid in cash.
Other Information
-----------------
On April 26, 1995, the shareholders of Travelers approved an amendment
changing the Company's name from The Travelers Inc. to Travelers Group Inc.
Subsequent to this date, the Plan changed its name from The Travelers Inc.
401(k) Savings Plan to Travelers Group 401(k) Savings Plan and The Travelers
Inc. Common Stock Fund changed its name to Travelers Group Inc. Common Stock
Fund which invests in shares of Travelers Group Inc. Common Stock.
During 1993, following the acquisition by the Company of the domestic retail
brokerage and asset management businesses of Shearson Lehman Brothers
Holdings Inc. ("Lehman"), the net assets of the 401(k) savings plan
sponsored by Lehman (the "Shearson Plan"), that were attributable to the
participants included in the acquisition, were transferred to the Plan.
During 1994 and 1995, as prescribed by the acquisition document dated July
31, 1993, additional transfers were made between Lehman Brothers Holdings
Inc. and the Plan.
6
Travelers Group 401(k) Savings Plan
Notes to Financial Statements
1. Plan Description (Continued)
During 1994, the assets of the American Express Daily Dividend Fund were
transferred into the Smith Barney Money Fund; the assets of the Smith Barney
Equity Fund were transferred into the Smith Barney Income and Growth Fund;
the Salomon Brothers Capital Fund was transferred into the Smith Barney
Appreciation Fund; and the Connecticut General GIC Fund was transferred into
the Smith Barney Guaranteed Income Fund which was previously named the
Shearson Fixed Income Fund. In addition, the Smith Barney World Fund
changed its name to the Smith Barney International Equity Fund.
During 1995, the assets of Smith Barney Global Opportunities Fund were
transferred to the Smith Barney Money Fund.
2. Summary of Significant Accounting Policies
(a) Accounting Method
The financial statements of the Plan have been prepared on the accrual
basis.
(b) Investment Valuation and Income Recognition
The Plan's investments are stated at fair value or cost plus accrued
interest which approximates fair value, except for its investment
contracts which are reflected in the financial statements at contract
value. The aggregate fair value of the investment contracts included
in the Smith Barney Guaranteed Income Fund was approximately $149
million at December 31, 1995. 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. Stock is valued
at its quoted market price. Participant loans receivable are valued
at cost which approximates fair value.
Purchases and sales of securities are recorded on a trade-date basis.
Interest income is recorded on the accrual basis. Dividends are
recorded on the ex-dividend date.
Net appreciation (depreciation) in the fair value of investments
include the Plan's investments bought, sold and held during the year.
The following listing details the determination of the fair value of
each of the Plan's investments at year end:
The shares of common stock held by the Travelers Group Inc. Common
Stock Fund and American Express Common Stock Fund are valued at the
last reported sale price on the New York Stock Exchange for the last
business day of the year.
The shares of the following registered investment companies are
valued at the net asset value per share as determined by Van Kampen
American Capital:
Van Kampen American Capital Comstock Fund
Van Kampen American Capital Emerging Growth Fund
Van Kampen American Capital Enterprise Fund
Van Kampen American Capital Government Securities Fund
7
Travelers Group 401(k) Savings Plan
Notes to Financial Statements
2. Summary of Significant Accounting Policies (Continued)
Van Kampen American Capital Reserve Fund
Common Sense Government Fund
Common Sense Growth and Income Fund
Common Sense Growth Fund
Common Sense Money Market Fund
The shares of the following registered investment companies are valued
at the net asset value per share as determined by Smith Barney Mutual
Funds Management Inc.:
Smith Barney Income and Growth Fund
Smith Barney Income Return Fund
Smith Barney International Equity Fund
Smith Barney Money Fund
Smith Barney Aggressive Growth Fund
Smith Barney Appreciation Fund
Smith Barney Diversified Strategic Income Fund
Smith Barney Global Opportunities Fund
Smith Barney High Income Fund
Smith Barney Utility Fund
Smith Barney U.S. Government Securities Fund
Smith Barney Special Equities Fund
Smith Barney Managed Growth Fund
Short-term money market investments, the Loan Fund and the Deferred
Profit Sharing Plan are valued at cost plus accrued interest which
approximates fair value. The Smith Barney Guaranteed Income Fund is
valued at contract value.
(c) Payment of Benefits
Benefits are recorded when paid.
(d) Use of Estimates in the Preparation of the Financial Statements
The preparation of financial statements in conformity with generally
accepted accounting principles requires the Plan administrator to make
estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosure of contingent assets and liabilities at
the date of the financial statements and the reported amounts of
revenues and expenses during the accounting period. Actual results
could differ from those estimates.
(e) Concentration of Credit Risk
The Plan's investments are currently held with multiple registered
investment companies as indicated in footnote 2(b), Investment
Valuation and Income Recognition. The Plan places its investments with
quality financial institutions and the Plan administrator believes that
no significant concentration of credit risk exists with regard to
investments.
8
Travelers Group 401(k) Savings Plan
Notes to Financial Statements
2. Summary of Significant Accounting Policies (Continued)
(f) Reclassification
Certain reclassifications have been made to prior year's financial
statements to conform to the current year's presentation.
3. Investments
During the years ended December 31, 1995 and 1994, the Plan's investments
[including investments bought, sold and held] appreciated (depreciated) in
value by $238,944,182 and $(65,295,864), respectively, as follows:
1995 1994
---- ----
Stock funds $ 169,831,278 $ (25,351,256)
Mutual funds 69,112,904 (39,944,608)
------------ ------------
$ 238,944,182 $ (65,295,864)
============ ============
A summary of the investments in the Plan as of December 31, 1995 and 1994 is
listed below. "Funds not yet invested" represent the line item "cash" on
the accompanying statements of net assets available for plan benefits. Such
amounts are included in a short-term liquid reserve fund pending allocation
to the appropriate investment funds.
1995 Investment Funds Cost Value
- --------------------- ---- -----
Travelers Group Inc. Common Stock Fund
Invested $ 151,907,915 $ 304,814,224
Funds not yet invested 655,686 655,686
----------- -----------
Total 152,563,601 305,469,910
----------- -----------
Van Kampen American Capital Reserve Fund
Invested 11,496,598 11,496,598
Funds not yet invested 2,563 2,563
----------- -----------
Total 11,499,161 11,499,161
----------- -----------
Van Kampen American Capital Government
Securities Fund
Invested 5,140,310 5,150,591
Funds not yet invested 1,250 1,250
----------- -----------
Total 5,141,560 5,151,841
----------- -----------
Van Kampen American Capital Comstock Fund
Invested 10,272,639 9,525,110
Funds not yet invested 1,967 1,967
----------- -----------
Total 10,274,606 9,527,077
----------- -----------
9
Travelers Group 401(k) Savings Plan
Notes to Financial Statements
3. Investments (Continued)
1995 Investment Funds Cost Value
--------------------- ---- -----
Van Kampen American Capital Emerging
Growth Fund
Invested $ 72,433,796 $85,204,531
Funds not yet invested 3,639 3,639
---------- ----------
Total 72,437,435 85,208,170
---------- ----------
Common Sense Money Market Fund
Invested 2,732,191 2,732,189
Funds not yet invested 1,133 1,133
---------- ----------
Total 2,733,324 2,733,322
---------- ----------
Common Sense Government Fund
Invested 910,107 887,600
Funds not yet invested 575 575
---------- ----------
Total 910,682 888,175
---------- ----------
Common Sense Growth and Income Fund
Invested 3,069,018 3,233,904
Funds not yet invested 946 946
---------- ----------
Total 3,069,964 3,234,850
---------- ----------
Common Sense Growth Fund
Invested 3,782,938 3,927,164
Funds not yet invested 1,101 1,101
---------- ----------
Total 3,784,039 3,928,265
---------- ----------
Loan Fund
Invested 39,611,649 39,611,649
---------- ----------
Total 39,611,649 39,611,649
---------- ----------
Smith Barney Income and Growth Fund
Invested 85,293,431 98,655,385
Funds not yet invested 810 810
---------- ----------
Total 85,294,241 98,656,195
---------- ----------
Smith Barney U.S. Government Securities Fund
Invested 20,582,957 20,923,181
Funds not yet invested 900 900
---------- ----------
Total 20,583,857 20,924,081
---------- ----------
Smith Barney Income Return Fund
Invested 5,706,488 5,768,707
Funds not yet invested 883 883
---------- ----------
Total 5,707,371 5,769,590
---------- ----------
10
Travelers Group 401(k) Savings Plan
Notes to Financial Statements
3. Investments (Continued)
1995 Investment Funds Cost Value
--------------------- ---- -----
Smith Barney Money Fund
Invested $31,271,665 $ 31,271,665
Funds not yet invested 887 887
---------- ----------
Total 31,272,552 31,272,552
---------- ----------
Smith Barney International Equity Fund
Invested 93,116,193 94,757,657
Funds not yet invested 773 773
----------- -----------
Total 93,116,966 94,758,430
----------- -----------
Van Kampen American Capital Enterprise Fund
Invested 26,717,625 27,640,186
Funds not yet invested 797 797
----------- -----------
Total 26,718,422 27,640,983
----------- -----------
Smith Barney High Income Fund
Invested 9,123,829 8,670,973
Funds not yet invested 816 816
----------- -----------
Total 9,124,645 8,671,789
----------- -----------
Smith Barney Aggressive Growth Fund
Invested 24,577,162 33,112,710
Funds not yet invested 839 839
----------- -----------
Total 24,578,001 33,113,549
----------- -----------
Smith Barney Appreciation Fund
Invested 106,488,345 131,250,468
Funds not yet invested 815 815
----------- -----------
Total 106,489,160 131,251,283
----------- -----------
Smith Barney Diversified Strategic Fund
Invested 14,507,017 14,289,961
Funds not yet invested 656 656
----------- -----------
Total 14,507,673 14,290,617
----------- -----------
Smith Barney Utility Fund
Invested 13,433,904 14,843,236
Funds not yet rovested 987 987
----------- -----------
Total 13,434,891 14,844,223
----------- -----------
Smith Barney Guaranteed Income Fund
Invested 142,873,227 142,873,227
Funds not yet invested 9,071 9,071
----------- -----------
Total 142,882,298 142,882,298
----------- -----------
11
Travelers Group 401(k) Savings Plan
Notes to Financial Statements
3. Investments (Continued)
1995 Investment Funds Cost Value
--------------------- ---- -----
American Express Common Stock Fund
Invested $ 59,124,871 $ 87,464,433
Funds not yet invested 32,060 32,060
----------- ------------
Total 59,156,931 87,496,493
----------- ------------
Deferred Profit Sharing Plan
Invested 66,429 66,429
----------- ------------
Total 66,429 66,429
----------- -------------
Smith Barney Special Equities Fund
Invested 4,974,942 5,364,534
Funds not yet invested 875 875
----------- -------------
Total 4,975,817 5,365,409
----------- -------------
Smith Barney Managed Growth Fund
Invested 9,817,140 10,039,358
Funds not yet invested 623 623
----------- -------------
Total 9,817,763 10,039,981
----------- -------------
1995 Total Investments $949,753,038 $1,194,296,322
=========== =============
1994 Investment Funds
---------------------
Travelers Group Inc. Common Stock Fund
Invested $107,107,900 $ 123,836,997
Funds not yet invested 208,569 208,569
----------- -------------
Total 107,316,469 124,045,566
----------- -------------
Van Kampen American Capital Reserve Fund
Invested 11,840,613 11,840,613
Funds not yet invested 112 112
----------- -------------
Total 11,840,725 11,840,725
----------- -------------
Van Kampen American Capital Government
Securities Fund
Invested 4,899,874 4,443,863
Funds not yet invested 4 4
----------- -------------
Total 4,899,878 4,443,867
----------- -------------
Van Kampen American Capital Comstock Fund
Invested 9,693,217 7,457,863
Funds not yet invested 16 16
----------- -------------
Total 9,693,233 7,457,879
----------- -------------
12
Travelers Group 401(k) Savings Plan
Notes to Financial Statements
3. Investments (Continued)
1994 Investment Funds Cost Value
--------------------- ---- -----
Van Kampen American Capital Emerging
Growth Fund
Invested $ 47,354,968 $ 44,587,338
Funds not yet invested 2,262 2,262
------------ -----------
Total 47,357,230 44,589,600
------------ -----------
Common Sense Money Market Fund
Invested 2,835,617 2,835,617
Funds not yet invested 639 639
------------ -----------
Total 2,836,256 2,836,256
------------ -----------
Common Sense Government Fund
Invested 857,650 755,249
Funds not yet invested 24 24
------------ -----------
Total 857,674 755,273
------------ -----------
Common Sense Growth and Income Fund
Invested 2,487,437 2,197,881
Funds not yet invested 2 2
------------ -----------
Total 2,487,439 2,197,883
------------ -----------
Common Sense Growth Fund
Invested 3,043,875 2,835,350
Funds not yet invested 6 6
------------ -----------
Total 3,043,881 2,835,356
------------ -----------
Loan Fund
Invested 31,275,886 31,275,886
------------ -----------
Total 31,275,886 31,275,886
------------ -----------
Smith Barney Income and Growth Fund
Invested 80,907,790 79,994,986
Funds not yet invested 2,310 2,310
------------ -----------
Total 80,910,100 79,997,296
------------ -----------
Smith Barney U.S. Government Securities Fund
Invested 19,956,983 18,579,414
Funds not yet invested 915 915
------------ -----------
Total 19,957,898 18,580,329
------------ -----------
Smith Barney Income Return Fund
Invested 7,203,647 7,078,832
Funds not yet invested 699 699
------------ -----------
Total 7,204,346 7,079,531
------------ -----------
13
Travelers Group 401(k) Savings Plan
Notes to Financial Statements
3. Investments (Continued)
1994 Investment Funds Cost Value
--------------------- ---- -----
Smith Barney Money Fund
Invested $ 29,718,296 $ 29,718,296
Funds not yet invested 10,669 10,669
---------- -----------
Total 29,728,965 29,728,965
---------- -----------
Smith Barney International Equity Fund
Invested 71,360,902 71,101,442
Funds not yet invested 2,046 2,046
---------- -----------
Total 71,362,948 71,103,488
---------- -----------
Van Kampen American Capital Enterprise Fund
Invested 14,792,862 13,870,616
Funds not yet invested 729 729
---------- -----------
Total 14,793,591 13,871,345
---------- -----------
Smith Barney High Income Fund
Invested 11,080,781 9,775,793
Funds not yet invested 8,770 8,770
---------- -----------
Total 11,089,551 9,784,563
---------- -----------
Smith Barney Aggressive Growth Fund
Invested 18,458,119 22,797,316
Funds not yet invested 765 765
---------- -----------
Total 18,458,884 22,798,081
---------- -----------
Smith Barney Appreciation Fund
Invested 91,591,156 101,479,606
Funds not yet invested 803 803
---------- -----------
Total 91,591,959 101,480,409
---------- -----------
Smith Barney Diversified Strategic Fund
Invested 13,047,968 11,907,701
Funds not yet invested 3,839 3,839
---------- -----------
Total 13,051,807 11,911,540
---------- -----------
Smith Barney Global Opportunities Fund
Invested 10,971,200 10,596,627
Funds not yet invested 829 829
---------- -----------
Total 10,972,029 10,597,456
---------- -----------
Smith Barney Utility Fund
Invested 11,933,511 10,466,979
Funds not yet invested 9,820 9,820
---------- ----------
Total 11,943,331 10,476,799
---------- ----------
14
Travelers Group 401(k) Savings Plan
Notes to Financial Statements
3. Investments (Continued)
1994 Investment Funds Cost Value
--------------------- ---- -----
Smith Barney Guaranteed Income Fund
Invested $ 138,828,645 $ 138,828,645
Funds not yet invested 56,373 56,373
----------- -----------
Total 138,885,018 138,885,018
----------- -----------
American Express Common Stock Fund
Invested 69,070,193 72,480,055
Funds not yet invested 2,373 2,373
----------- -----------
Total 69,072,566 72,482,428
----------- -----------
Deferred Profit Sharing Plan
Invested 62,948 62,948
----------- -----------
Total 62,948 62,948
----------- -----------
1994 Total investments $ 810,694,612 $ 831,118,487
=========== ===========
4. Federal Income Tax Consequences
On March 31, 1995, the Internal Revenue Service issued a determination
letter approving the continued exemption of the Plan and its underlying
trust from federal income taxes under the Code. Since the date of this
letter, the Plan has been amended as required by the determination letter.
In the opinion of the Plan administrator and the Plan's legal counsel, the
Plan and its trust are operated within the terms of the Plan and in
compliance with the applicable rules of the Code.
Matching employer contributions, pre-tax contributions and discount
contributions and the Plan earnings on all contributions are not taxable to
participants until they are withdrawn by or distributed to the participants.
Also, unrealized appreciation on shares of Travelers Group Inc. Common Stock
and American Express Common Stock distributed in a qualifying lump-sum
distribution is not taxable at the time of distribution.
As noted previously, during 1995, the Shearson Plan, which operated pursuant
to a favorable determination letter providing that the Shearson Plan
qualified under Section 401(a) of the Code as exempt from federal income
tax, transferred certain assets to the Plan. As further noted in footnote 7
below, effective as of January 1, 1996, certain plans, which operated
pursuant to a favorable determination letter providing that the applicable
plan qualified under Section 401(a) of the Code as exempt from federal
income tax, merged into the Plan. In addition, effective as of January 2,
1996, the Plan transferred to a plan, which operated pursuant to a favorable
determination letter providing that the transferee plan qualified under
Section 401(a) of the Code as exempt from federal income tax, certain assets
and liabilities attributable to participants no longer employed by Travelers
or the Company. Such transfers did not give rise to taxable event on the
part of the participants or the Plan.
15
Travelers Group 401(k) Savings Plan
Notes to Financial Statements
4. Federal Income Tax Consequences (Continued)
On January 24, 1996, the Board of Directors of Travelers declared a stock
split in the form of a 50% stock dividend payable to shareholders of
record, including the Plan. The declaration and subsequent payment of the
stock dividend did not give rise to a taxable event on the part of the
participants or the Plan.
5. Related Party Transactions
Certain Plan investments are shares of stock issued by Travelers. Travelers
is the Plan sponsor as defined by the Plan and, therefore, these
transactions qualify as party-in-interest. These transactions are exempt
under ERISA section 408(e)(3) given that the Plan is an eligible individual
retirement account plan as defined by ERISA.
Certain Plan investments are shares of registered investment companies
(mutual funds, stock funds and investment contracts) that are valued by
Smith Barney Mutual Fund Management ("SB Mutual"), an affiliate, and,
therefore, would qualify SB Mutual as a party-in-interest.
6. Net Assets Available for Plan Benefits
Net assets available for plan benefits as of December 31, 1995 and 1994
consist of the following:
1995 1994
---- ----
Vested Benefits $ 1,195,529,373 $ 845,495,065
Non-Vested Benefits 20,264,173 9,577,823
------------- -----------
Total $1,215,793,546 $ 855,072,888
============== ===========
Non-vested benefits are comprised of employer contributions for those
participants whose initial date of employment is on or after January 1, 1992
who have not reached their five years of service and are therefore subject
to forfeiture. Forfeitures will be used by Travelers to reduce any future
employer contributions. As of December 31, 1995 and 1994, employer
contributions were reduced by approximately $1,706,000 and $398,000,
respectively.
7. Subsequent Events
Effective as of January 1, 1996, the Travelers Savings, Investment and Stock
Ownership Plan ("TESIP") was merged into the Plan pursuant to Section 12.01
of the Plan, as amended. Effective January 2, 1996, all assets and
liabilities attributable to participants employed by MetraHealth Companies,
Inc. or affiliates thereof ("MetraHealth") who were included in TESIP were
transferred to the United HealthCare Corporation 401(k) Savings Plan
pursuant to an agreement between Travelers and MetraHealth ("MetraHealth
401(k) Transfer") in connection with the acquisition of MetraHealth by
United HealthCare Corporation. The TESIP merger amounted to a
$1,004,918,387 increase in net assets available for plan benefits, net of
the $107,024,238 transferred to the United HealthCare Corporation 401(k)
Savings Plan attributable to MetraHealth participants. Following the
MetraHealth 401(k) Transfer, Travelers shall have no further obligation to
provide any benefits to MetraHealth participants under the Plan.
Also effective January 1, 1996, the Profit Sharing Plan of Copeland
Associates, Inc. was merged into the Plan pursuant to Section 12.01 of
the Plan, as amended.
16
Travelers Group 401(k) Savings Plan
Notes to Financial Statements
8. Investment Allocation With Fund Information
Employee, employer and rollover contributions are invested in various funds
as indicated in footnotes 2 and 3. These contributions are directed to
each fund at the discretion of the individual participant. Net assets
available for plan benefits and changes in net assets available for plan
benefits, by fund, are as follows:
December 31, 1995
----------------------------------------------------------------------------------------------
Travelers Van Kampen Van Kampen Van Kampen Van Kampen
Group Inc. American Capital American Capital American American
Common Emerging Governmental Capital Capital
Stock Growth Loan Securities Comstock Reserve
Fund Fund Fund Fund Fund Fund
---- ---- ---- ---- ---- ----
Assets
------
Investments (notes 2 and 3) $ 304,814,224 85,204,531 39,611,649 5,150,591 9,525,110 11,496,598
Cash 655,686 3,639 - 1,250 1,967 2,563
Receivables:
Contribution 21,745,185 7,484 - - - -
Dividends and other 15,256 150,170 - 9,208 19,444 41
----------- ---------- ----------- --------- --------- ----------
Total receivables 21,760,441 157,654 - 9,208 19,444 41
----------- ---------- ----------- --------- --------- ----------
Total assets 327,230,351 85,365,824 39,611,649 5,161,049 9,546,521 11,499,202
----------- ---------- ----------- --------- --------- ----------
Liabilities
-----------
Payable for investment purchases 593,154 - - - - 35,918
---------- ---------- ----------- --------- --------- ----------
Net assets available for
plan benefits $326,637,197 85,365,824 39,611,649 5,161,049 9,546,521 11,463,284
=========== ========== ========== ========= ========= ==========
Investment activity:
Dividends 3,759,762 8,031,351 - 323,020 1,310,925 576,763
Interest 49,681 33,751 - 213 278 467
Appreciation (depreciation) in
fair value of investments 142,257,189 16,326,189 - 413,114 1,302,364 -
----------- ---------- ---------- --------- --------- ----------
146,066,632 24,391,291 - 736,347 2,613,567 577,230
Less: Trustee/administrative
expenses (407,288) (101,595) - (13,086) (21,074) (29,296)
---------- --------- ---------- -------- -------- ---------
Net investment income (loss) 145,659,344 24,289,696 - 723,261 2,592,493 547,934
----------- ---------- ---------- --------- --------- ----------
Contributions:
Participants 19,708,679 17,004,464 2,720,694 629,913 911,287 767,361
Employer 24,143,255 - - - - -
Rollover 1,389,270 966,192 - 30,337 63,505 25,304
----------- ---------- ---------- --------- --------- ----------
Total contributions 45,241,204 17,970,656 2,720,694 660,250 974,792 792,665
----------- ---------- ---------- --------- --------- ----------
Distributions to participants (20,987,299) (4,792,336) (1,963,555) (496,251) (816,520) (1,632,224)
Loan activity, net (632,282) (170,571) 7,578,624 (18,399) (38,130) (49,273)
Transfers from (to) other funds 12,118,427 3,269,549 - (154,653) (628,337) (37,705)
----------- ---------- ---------- -------- -------- ---------
Net increase (decrease) 181,399,394 40,566,994 8,335,763 714,208 2,084,298 (378,603)
----------- ---------- ---------- --------- --------- ---------
Net assets available for plan
benefits:
Beginning of year 145,237,803 44,798,830 31,275,886 4,446,841 7,462,223 11,841,887
Transfers from Lehman Brothers
Holdings, Inc. - - - - - -
----------- ---------- ---------- --------- --------- ----------
End of year $326,637,197 85,365,824 39,611,649 5,161,049 9,546,521 11,463,284
=========== ========== ========== ========= ========= ==========
December 31, 1995
---------------------------
Common
Common Sense
Sense Growth and
Growth Income
Fund Fund
---- ----
Assets
------
Investments (notes 2 and 3) 3,927,164 3,233,904
Cash 1,101 946
Receivables:
Contribution - -
Dividends and other 554,505 338,874
--------- ---------
Total receivables 554,505 338,874
--------- ---------
Total assets 4,482,770 3,573,724
--------- ---------
Liabilities
-----------
Payable for investment purchases 554,504 333,838
--------- ---------
Net assets available for
plan benefits 3,928,266 3,239,886
========= =========
Investment activity:
Dividends 554,503 367,987
Interest 133 80
Appreciation (depreciation) in
fair value of investments 392,298 465,757
--------- ---------
946,934 833,824
Less: Trustee/administrative
expenses (9,694) (8,189)
-------- --------
Net investment income (loss) 937,240 825,635
--------- ---------
Contributions:
Participants 528,115 415,781
Employer - -
Rollover 22,934 20,555
--------- ---------
Total contributions 551,049 436,336
--------- ---------
Distributions to participants (279,050) (111,869)
Loan activity, net (45,850) (27,024)
Transfers from (to) other funds (69,794) (81,717)
-------- --------
Net increase (decrease) 1,093,595 1,041,361
--------- ---------
Net assets available for plan
benefits:
Beginning of year 2,834,671 2,198,525
Transfers from Lehman Brothers
Holdings, Inc. - -
--------- ---------
End of year 3,928,266 3,239,886
========= =========
18
Travelers Group 401(k) Savings Plan
Notes to Financial Statements
8. Investment Allocation With Fund Information (Continued)
December 31, 1995
--------------------------------------------------------------------------
Common Common Smith Barney Smith Barney Smith Barney
Sense Sense Income and U.S. Government Income
Government Money Market Growth Securities Return
Fund Fund Fund Fund Fund
---- ---- ---- ---- ----
Assets
- ------
Investments (notes 2 and 3) $ 887,600 2,732,189 98,655,385 20,923,181 5,768,707
Cash 575 1,133 810 900 883
Receivables:
Contribution - - 3,318 2,392 -
Dividends and other 4,667 10,331 380 53 43
-------- ---------- ---------- ---------- ---------
Total receivables 4,667 10,331 3,698 2,445 43
-------- ---------- ---------- ---------- ---------
Total assets 892,842 2,743,653 98,659,893 20,926,526 5,769,633
-------- ---------- ---------- ---------- ---------
Liabilities
- -----------
Payable for investment purchases 9,701 10,328 - - -
-------- ---------- ---------- ---------- ---------
Net assets available for
plan benefits $ 883,141 2,733,325 98,659,893 20,926,526 5,769,633
======== ========== ========== ========== =========
Investment activity:
Dividends 54,894 132,333 10,299,575 1,469,275 356,591
Interest 25 142 - - 105
Appreciation (depreciation) in
fair value of investments 72,961 - 16,214,153 1,682,526 197,389
-------- ---------- ---------- ---------- ---------
127,880 132,475 26,513,728 3,151,801 554,085
Less: Trustee/administrative expenses (4,262) (8,609) (132,430) (33,679) (14,655)
------- --------- --------- --------- --------
Net investment income (loss) 123,618 123,866 26,381,298 3,118,122 539,430
-------- ---------- ---------- ---------- ---------
Contributions:
Participants 112,600 (5,795) 8,296,020 1,856,609 3,231
Employer - - - - -
Rollover 6,931 - 767,807 379,786 -
-------- ---------- ---------- ---------- ---------
Total contributions 119,531 (5,795) 9,063,827 2,236,395 3,231
-------- --------- ---------- ---------- ---------
Distributions to participants (66,786) (250,314) (8,190,356) (1,631,376) (779,812)
Loan activity, net 1,293 (32,918) (408,954) (172,184) (75,131)
Transfers from (to) other funds (50,887) 62,217 (8,323,205) (1,244,463) (1,012,589)
-------- ---------- ----------- ----------- ----------
Net increase (decrease) 126,769 (102,944) 18,522,610 2,306,494 (1,324,871)
--------- --------- ------------ ------------ ----------
Net assets available for plan benefits
Beginning of year 756,372 2,836,269 80,121,843 18,620,032 7,079,533
Transfer from Lehman Brothers
Holdings, Inc. - - 15,440 - 14,971
--------- ---------- ------------ ------------ -----------
End of year $ 883,141 2,733,325 98,659,893 20,926,526 5,769,633
========= ========== ============ ============ ===========
December 31, 1995
-------------------------------
Van Kampen American
American Capital Express
Enterprise Common
Fund Stock Fund
---- ----------
Assets
- ------
Investments (notes 2 and 3) 27,640,186 87,464,433
Cash 797 32,060
Receivables:
Contribution 10,253 -
Dividends and other 2 83
---------- ----------
Total receivables 10,255 83
---------- ----------
Total assets 27,651,238 87,496,576
---------- ----------
Liabilities
- -----------
Payable for investment purchases - -
---------- ----------
Net assets available for
plan benefits 27,651,238 87,496,576
========== ==========
Investment activity:
Dividends 3,873,606 1,539,620
Interest 4,610 -
Appreciation (depreciation) in
fair value of investments 1,914,256 27,652,262
---------- ----------
5,792,472 29,191,882
Less: Trustee/administrative expenses (33,044) (145,003)
--------- ---------
Net investment income (loss) 5,759,428 29,046,879
---------- ----------
Contributions:
Participants 4,380,173 (1,105)
Employer - -
Rollover 536,409 -
---------- ----------
Total contributions 4,916,582 (1,105)
---------- ---------
Distributions to participants (972,538) (7,101,193)
Loan activity, net (28,325) (1,290,302)
Transfers from (to) other funds 4,061,419 (6,195,379)
---------- ----------
Net increase (decrease) 13,736,566 14,458,900
---------- -----------
Net assets available for plan benefits
Beginning of year 13,914,672 73,035,522
Transfer from Lehman Brothers
Holdings, Inc. - 2,154
---------- -----------
End of year 27,651,238 87,496,576
========== ===========
19
Travelers Group 401(k) Savings Plan
Notes to Financial Statements
8. Investment Allocation With Fund Information (Continued)
December 31, 1995
----------------------------------------------------------------------------------------------
Smith Barney Smith Barney Smith Barney Smith Barney
Smith Barney Aggressive Smith Barney Global International Diversified
Money Growth Appreciation Opportunities Equity Strategic
Fund Fund Fund Fund Fund Income Fund
---- ---- ---- ---- ---- -----------
Assets
- ------
Investments (notes 2 and 3) $ 31,271,665 33,112,710 131,250,468 - 94,757,657 14,289,961
Cash 887 839 815 - 773 656
Receivables:
Contribution 110,928 9,189 9,314 - 11,664 (203)
Dividends and other 273 3 259 - 6 65
----------- ----------- ----------- ---------- ---------- ----------
Total receivables 111,201 9,192 9,573 - 11,670 (138)
----------- ----------- ----------- ---------- ---------- ----------
Total assets 31,383,753 33,122,741 131,260,856 - 94,770,100 14,290,479
----------- ----------- ----------- ---------- ---------- ----------
Liabilities
- -----------
Payable for investment purchases - - - - - -
----------- ----------- ----------- ---------- ---------- ----------
Net assets available for
plan benefits $ 31,383,753 33,122,741 131,260,856 - 94,770,100 14,290,479
=========== =========== =========== ========== ========== ==========
Investment activity:
Dividends 1,726,595 2,667,050 12,611,115 - 1,662,094 1,236,016
Interest - 3,077 6,714 (910) 1,500 2,470
Appreciation (depreciation) in
fair value of investments - 5,200,165 18,271,524 (290,203) 1,968,376 803,879
----------- ----------- ----------- --------- ---------- ----------
1,726,595 7,870,292 30,889,353 (291,113) 3,631,970 2,042,365
Less: Trustee/administrative expenses (50,469) (40,436) (171,708) (8,654) (125,183) (24,967)
---------- ---------- ---------- --------- --------- ---------
Net investment income (loss) 1,676,126 7,829,856 30,717,645 (299,767) 3,506,787 2,017,398
----------- ----------- ----------- --------- ---------- ----------
Contributions:
Participants 4,073,779 334,745 14,126,794 - 19,836,696 3,118,183
Employer - - - - - -
Rollover 625,450 116,091 760,774 - 863,665 149,922
----------- ----------- ---------- ---------- ---------- ----------
Total contributions 4,699,229 450,836 14,887,568 - 20,700,361 3,268,105
----------- ----------- ---------- ---------- ---------- ----------
Distributions to participants (5,167,140) (1,763,463) (8,151,684) (164,405) (5,848,921) (1,360,335)
Loan activity, net (155,251) (824,973) (1,697,306) (142,469) (30,920) (66,661)
Transfers from (to) other funds 477,280 4,621,116 (6,171,907) (9,990,829) 5,063,305 (1,538,957)
----------- ----------- ---------- ---------- ---------- ----------
Net increase (decrease) 1,530,244 10,313,372 29,584,316 (10,597,470) 23,390,612 2,319,550
----------- ----------- ----------- ------------ ---------- -----------
Net assets available for plan benefits
Beginning of year 29,849,918 22,798,109 101,655,148 10,597,470 71,377,296 11,970,929
Transfer from Lehman Brothers
Holdings, Inc. 3,591 11,260 21,392 - 2,192 -
----------- ----------- ----------- ------------- ---------- -----------
End of year $ 31,383,753 33,122,741 131,260,856 - 94,770,100 14,290,479
=========== =========== =========== ============= ========== ===========
20
Travelers Group 401(k) Savings Plan
Notes to Financial Statements
8. Investment Allocation With Fund Information (Continued)
December 31, 1995
-----------------------------------------------------------------------------
Smith Barney Smith Barney Smith Barney Smith Barney
High Smith Barney Guaranteed Special Managed
Income Utility Income Equities Growth
Fund Fund Fund Fund Fund
---- ---- ---- ---- ----
Assets
------
Investments (notes 2 and 3) $ 8,670,973 14,843,236 142,873,227 5,364,534 10,039,358
Cash 816 987 9,071 875 623
Receivables:
Contributions - 5,904 (3,925) 9,759 9,547
Dividends and other 59 32 100 2 2
------------ ----------- ------------ ---------- -----------
Total receivables 59 5,936 (3,825) 9,761 9,549
------------ ----------- ----------- ---------- -----------
Total assets 8,671,848 14,850,159 142,878,473 5,375,170 10,049,530
------------ ----------- ------------ ---------- -----------
Liabilities
-----------
Payable for investment purchases - - - - -
------------ ----------- ------------ ---------- -----------
Net assets available for
plan benefits $ 8,671,848 14,850,159 142,878,473 5,375,170 10,049,530
============ =========== ============ ========== ===========
Investment activity:
Dividends 995,877 970,311 - 87,561 119,699
Interest 74 23,807 10,270,443 239 668
Appreciation (depreciation) in
fair value of investments 641,628 2,845,859 - 390,239 222,257
------------ ----------- ------------ ---------- -----------
1,637,579 3,839,977 10,270,443 478,039 342,624
Less: Trustee/administrative expenses (18,758) (24,172) (779,237) (951) (1,533)
----------- ---------- ----------- --------- ----------
Net investment income (loss) 1,618,821 3,815,805 9,491,206 477,088 341,091
------------ ----------- ------------ ---------- -----------
Contributions:
Participants - 2,453,665 11,005,423 172,964 268,474
Employer - - - - -
Rollover - 159,325 1,027,900 21,241 97,545
------------ ----------- ------------ ---------- -----------
Total contributions - 2,612,990 12,033,323 194,205 366,019
------------ ----------- ------------ ---------- -----------
Distributions to participants (1,114,211) (433,507) (12,000,987) (9,455) (41,580)
Loan activity, net (256,086) (224,041) (1,246,863) 10,893 43,103
Transfer from (to) other funds (1,364,466) (1,464,025) (5,387,736) 4,702,439 9,340,897
---------- ---------- ----------- ---------- -----------
Net increase (decrease) (1,115,942) 4,307,222 2,888,943 5,375,170 10,049,530
---------- ----------- ------------ ---------- -----------
Net assets available for plan benefits
Beginning of year 9,784,581 10,526,050 139,989,530 - -
Transfers from Lehman Brothers
Holdings, Inc. 3,209 16,887 - - -
----------- ----------- ------------ ---------- -----------
End of year $ 8,671,848 14,850,159 142,878,473 5,375,170 10,049,530
=========== =========== ============ ========== ===========
December 31, 1995
----------------------------
Deferred
Profit
Sharing
Plan Total
---- -----
Assets
------
Investments (notes 2 and 3) 66,429 1,193,575,670
Cash - 720,652
Receivables:
Contributions - 21,930,809
Dividends and other - 1,103,858
-------- --------------
Total receivables - 23,034,667
-------- --------------
Total assets 66,429 1,217,330,989
-------- --------------
Liabilities
-----------
Payable for investment purchases - 1,537,443
-------- --------------
Net assets available for
plan benefits 66,429 1,215,793,546
======== ==============
Investment activity:
Dividends 3,481 54,730,004
Interest - 10,397,567
Appreciation (depreciation) in
fair value of investments - 238,944,182
-------- --------------
3,481 304,071,753
Less: Trustee/administrative expenses - (2,207,972)
-------- -------------
Net investment income (loss) 3,481 301,863,781
-------- --------------
Contributions:
Participants - 112,718,750
Employer - 24,143,255
Rollover - 8,030,943
-------- --------------
Total contributions - 144,892,948
-------- --------------
Distributions to participants - (86,127,167)
Loan activity, net - -
Transfer from (to) other funds - -
-------- --------------
Net increase (decrease) 3,481 360,629,562
-------- --------------
Net assets available for plan benefits
Beginning of year 62,948 855,072,888
Transfers from Lehman Brothers
Holdings, Inc. - 91,096
-------- --------------
End of year 66,429 1,215,793,546
======== ==============
21
Travelers Group 401(k) Savings Plan
Notes to Financial Statements
8. Investment Allocation With Fund Information (Continued)
December 31, 1994
------------------------------------------------------------------------------------------------
Travelers Van Kampen Van Kampen Van Kampen Van Kampen
Group Inc. American Capital American Capital American American
Common Emerging Governmental Capital Capital
Stock Growth Loan Securities Comstock Reserve
Fund Fund Fund Fund Fund Fund
---- ---- ---- ---- ---- ----
Assets
------
Investments (notes 2 and 3) $ 123,836,997 44,587,338 31,275,886 4,443,863 7,457,863 11,840,613
Cash 208,569 2,262 - 4 16 112
Receivables:
Contribution 24,381,544 209,192 - 2,963 4,330 1,099
Dividends and other 16,624 38 - 11 14 63
------------ ---------- ---------- --------- --------- ----------
Total receivables 24,398,168 209,230 - 2,974 4,344 1,162
------------ ---------- ---------- --------- --------- ----------
Total assets 148,443,734 44,798,830 31,275,886 4,446,841 7,462,223 11,841,887
------------ ---------- ---------- --------- --------- ----------
Liabilities
-----------
Payable for investment purchases 3,205,931 - - - - -
------------ ---------- ---------- --------- --------- ----------
Net assets available for
plan benefits $145,237,803 44,798,830 31,275,886 4,446,841 7,462,223 11,841,887
=========== ========== ========== ========= ========= ==========
Investment activity:
Dividends 1,972,118 1,146,639 - 306,947 1,621,623 390,130
Interest 33,136 586 - 4 17 115
Appreciation (depreciation) in
fair value of investments (22,229,082) (3,276,920) - (517,550) (2,292,877) -
----------- ---------- ---------- -------- ---------- ----------
(20,223,828) (2,129,695) - (210,599) (671,237) 390,245
Less: Trustee/administrative
expenses (468,233) (72,273) - (2,077) (3,507) (5,645)
----------- ---------- ---------- -------- ---------- ---------
Net investment income (loss) (20,692,061) (2,201,968) - (212,676) (674,744) 384,600
----------- ---------- ---------- -------- ---------- ----------
Contributions:
Participants 20,930,937 17,585,222 1,309,929 654,519 895,838 718,418
Employer 30,677,722 - - - - -
Rollover 1,979,451 1,220,013 - 38,937 79,304 136,958
------------ ----------- ---------- --------- ----------- ----------
Total contributions 53,588,110 18,805,235 1,309,929 693,456 975,142 855,376
------------ ----------- ---------- --------- ----------- ----------
Distributions to participants (7,868,752) (2,081,841) (951,276) (318,204) (465,051) (1,097,674)
Loan activity, net (601,027) (986,082) 18,342,250 (12,368) (10,074) (140,734)
Transfers from (to) other funds 19,242,757 20,115,830 - (483,677) 330,396 (182,312)
------------ ----------- ---------- --------- ----------- ---------
Net increase (decrease) 43,669,027 33,651,174 18,700,903 (333,469) 155,669 (180,744)
------------ ----------- ---------- --------- ----------- ---------
Net assets available for plan benefits
Beginning of year 101,563,394 11,146,795 12,574,983 4,780,310 7,306,554 12,022,631
Transfers from Lehman Brothers
Holdings, Inc. 5,382 861 - - - -
------------ ----------- ---------- ---------- ----------- ----------
End of year $ 145,237,803 44,798,830 31,275,886 4,446,841 7,462,223 11,841,887
============ =========== ========== ========== =========== ==========
December 31, 1994
-------------------------------
Common
Common Sense
Sense Growth and
Growth Income
Fund Fund
---- ----
Assets
------
Investments (notes 2 and 3) 2,835,350 2,197,881
Cash 6 2
Receivables:
Contribution 377 641
Dividends and other 2 1
--------- ----------
Total receivables 379 642
--------- ----------
Total assets 2,835,735 2,198,525
--------- ----------
Liabilities
-----------
Payable for investment purchases 1,064 -
--------- ----------
Net assets available for
plan benefits 2,834,671 2,198,525
========= ==========
Investment activity:
Dividends 224,829 269,617
Interest 6 2
Appreciation (depreciation) in
fair value of investments (212,363) (292,570)
--------- ---------
12,472 (22,951)
Less: Trustee/administrative
expenses (1,310) (1,015)
--------- ---------
Net investment income (loss) 11,162 (23,966)
---------- ---------
Contributions:
Participants 404,281 319,166
Employer - -
Rollover 11,811 7,693
---------- ----------
Total contributions 416,092 326,859
---------- ----------
Distributions to participants (114,070) (64,657)
Loan activity, net (11,814) (5,141)
Transfers from (to) other funds (217,516) (95,102)
--------- ---------
Net increase (decrease) 83,854 137,993
---------- ----------
Net assets available for plan benefits
Beginning of year 2,750,817 2,060,532
Transfers from Lehman Brothers
Holdings, Inc. - -
---------- ----------
End of year 2,834,671 2,198,525
========== ==========
22
Travelers Group 401(k) Savings Plan
Notes to Financial Statements
8. Investment Allocation With Fund Information (Continued)
December 31, 1994
-----------------------------------------------------------------------------------
Common Common Smith Barney Smith Barney Smith Barney
Sense Sense Income and U.S. Government Income
Government Money Market Growth Securities Return
Fund Fund Fund Fund Fund
---- ---- ---- ---- ----
Assets
- ------
Investments (notes 2 and 3) $ 755,249 2,835,617 79,994,986 18,579,414 7,078,832
Cash 24 639 2,310 915 699
Receivables:
Contribution 34 10 124,460 39,685 -
Dividends and other 1,065 3 87 18 2
---------- --------- ---------- ---------- ---------
Total receivables 1,099 13 124,547 39,703 2
---------- --------- ---------- ---------- ---------
Total assets 756,372 2,836,269 80,121,843 18,620,032 7,079,533
---------- --------- ---------- ---------- ---------
Liabilities
- -----------
Payable for investment purchases - - - - -
---------- --------- ---------- ---------- ---------
Net assets available for
plan benefits $ 756,372 2,836,269 80,121,843 18,620,032 7,079,533
========== ========= ========== ========== =========
Investment activity:
Dividends 51,965 91,769 3,583,204 1,382,644 365,485
Interest 25 12 918 451 225
Appreciation (depreciation) in
fair value of investments (119,078) - (7,428,927) (1,684,038) (206,381)
--------- --------- ---------- ---------- ----------
(67,088) 91,781 (3,844,805) (300,943) 159,329
Less: Trustee/administrative expenses (368) (1,318) (147,491) (39,724) (18,557)
-------- -------- ---------- ---------- ----------
Net investment income (loss) (67,456) 90,463 (3,992,296) (340,667) 140,772
--------- --------- ---------- ---------- ----------
Contributions:
Participants 99,657 146,515 8,861,939 1,907,521 40
Employer - - - - -
Rollover 52 27 962,804 301,343 -
---------- --------- ----------- ----------- -----------
Total contributions 99,709 146,542 9,824,743 2,208,864 40
---------- --------- ----------- ----------- -----------
Distributions to participants (15,362) (179,466) (6,861,042) (1,965,798) (599,147)
Loan activity, net (7,265) (27,067) (850,047) (222,735) (166,651)
Transfers from (to) other funds (38,584) (190,714) 3,435,988 (2,948,131) (2,505,508)
--------- -------- ----------- ---------- ----------
Net increase (decrease) (28,958) (160,242) 1,557,346 (3,268,467) (3,130,494)
--------- -------- ----------- ---------- ----------
Net assets available for plan benefits
Beginning of year 785,330 2,996,511 78,563,180 21,888,499 10,210,027
Transfers from Lehman Brothers
Holdings, Inc. - - 1,317 - -
---------- --------- ----------- ----------- -----------
End of year $ 756,372 2,836,269 80,121,843 18,620,032 7,079,533
========== ========= =========== =========== ===========
December 31, 1994
-------------------------------------------------
Van Kampen American American
American Capital Express Express
Enterprise Common Daily
Fund Stock Fund Dividend Fund
---- ---------- -------------
Assets
------
Investments (notes 2 and 3) 13,870,616 72,480,055 -
Cash 729 2,373 -
Receivables:
Contribution 43,314 - -
Dividends and other 13 553,094 -
---------- ---------- ----------
Total receivables 43,327 553,094 -
---------- ---------- ----------
Total assets 13,914,672 73,035,522 -
---------- ---------- ----------
Liabilities
-----------
Payable for investment purchases - - -
---------- ---------- ----------
Net assets available for
plan benefits 13,914,672 73,035,522 -
========== ========== ==========
Investment activity:
Dividends 855,695 11,091,983 -
Interest 295 11,329 -
Appreciation (depreciation) in
fair value of investments (875,103) (3,122,174) -
-------- ---------- ----------
(19,113) 7,981,138 -
Less: Trustee/administrative expenses (27,115) (167,178) -
-------- ---------- ----------
Net investment income (loss) (46,228) 7,813,960 -
-------- ----------- ----------
Contributions:
Participants 4,069,007 - -
Employer - - -
Rollover 458,621 - -
--------- ----------- ----------
Total contributions 4,527,628 - -
--------- ----------- ----------
Distributions to participants (692,464) (6,775,234) -
Loan activity, net (221,571) (2,375,186) -
Transfers from (to) other funds 7,420,472 (13,341,000) (15,160,261)
--------- ----------- -----------
Net increase (decrease) 10,987,837 (14,677,460) (15,160,261)
---------- ----------- -----------
Net assets available for plan benefits
Beginning of year 2,926,835 86,887,004 15,160,261
Transfers from Lehman Brothers
Holdings, Inc. - 825,978 -
---------- ------------ ------------
End of year 13,914,672 73,035,522 -
========== ============ ============
23
Travelers Group 401(k) Savings Plan
Notes to Financial Statements
8. Investment Allocation With Fund Information (Continued)
December 31, 1994
-----------------------------------------------------------------------------------
Smith Barney Smith Barney Smith Barney
Smith Barney Aggressive Smith Barney Global International
Money Growth Appreciation Opportunities Equity
Fund Fund Fund Fund Fund
---- ---- ---- ---- ----
Assets
- ------
Investments (notes 2 and 3) $ 29,718,296 22,797,316 101,479,606 10,596,627 71,101,442
Cash 10,669 765 803 829 2,046
Receivables:
Contribution 120,929 - 174,621 - 273,743
Dividends and other 24 28 118 14 65
----------- ----------- ----------- ---------- ----------
Total receivables 120,953 28 174,739 14 273,808
----------- ----------- ----------- ---------- ----------
Total assets 29,849,918 22,798,109 101,655,148 10,597,470 71,377,296
----------- ----------- ----------- ---------- ----------
Liabilities
- -----------
Payable for investment purchases - - - - -
----------- ----------- ----------- ---------- ----------
Net assets available for
plan benefits $ 29,849,918 22,798,109 101,655,148 10,597,470 71,377,296
=========== =========== =========== ========== ==========
Investment activity:
Dividends 1,043,998 753,630 7,579,686 817,060 962,268
Interest 6,862 195 1,990 159 624
Appreciation (depreciation) in
fair value of investments - (1,181,449) (8,146,394) (1,085,678) (7,428,241)
----------- ---------- ---------- ---------- ----------
1,050,860 (427,624) (564,718) (268,459) (6,465,349)
Less: Trustee/administrative expenses (58,498) (53,013) (204,381) (30,541) (116,621)
---------- ---------- ---------- ---------- ----------
Net investment income (loss) 992,362 (480,637) (769,099) (299,000) (6,581,970)
----------- ---------- ---------- ---------- ----------
Contributions:
Participants 4,259,935 36 15,502,740 - 20,488,965
Employer - - - - -
Rollover 1,599,355 - 813,027 - 1,473,686
----------- ---------- ----------- ----------- -----------
Total contributions 5,859,290 36 16,315,767 - 21,962,651
----------- ---------- ----------- ----------- -----------
Distributions to participants (3,497,171) (2,010,574) (7,023,399) (1,094,588) (3,487,820)
Loan activity, net (776,198) (1,217,986) (3,766,563) (561,973) (1,432,513)
Transfers from (to) other funds 12,824,059 (10,661,662) (20,225,506) (10,041,987) 32,337,688
----------- ----------- ----------- ----------- ----------
Net increase (decrease) 15,402,342 (14,370,823) (15,468,800) (11,997,548) 42,798,036
----------- ----------- ----------- ----------- -----------
Net assets available for plan benefits
Beginning of year 14,480,197 36,915,484 116,966,137 22,440,353 28,578,248
Transfers from Lehman Brothers
Holdings, Inc. (32,621) 253,448 157,811 154,665 1,012
---------- ------------ ------------ ------------ -----------
End of year $ 29,849,918 22,798,109 101,655,148 10,597,470 71,377,296
=========== ============ ============ ============ ===========
December 31, 1994
-----------------------------------------------
Smith Barney
Diversified Smith Barney Connecticut
Strategic Equity General
Income Fund Fund GIC
----------- ---- ---
Assets
------
Investments (notes 2 and 3) 11,907,701 - -
Cash 3,839 - -
Receivables:
Contribution 59,377 - -
Dividends and other 12 - -
---------- --------- ---------
Total receivables 59,389 - -
---------- --------- ---------
Total assets 11,970,929 - -
---------- --------- ---------
Liabilities
-----------
Payable for investment purchases - - -
---------- --------- ---------
Net assets available for
plan benefits 11,970,929 - -
========== ========= =========
Investment activity:
Dividends 966,367 314,030 -
Interest 341 168 -
Appreciation (depreciation) in
fair value of investments (1,262,670) (225,600) -
---------- -------- ---------
(295,962) 88,598 -
Less: Trustee/administrative expenses (26,261) (4,560) -
--------- -------- ---------
Net investment income (loss) (322,223) 84,038 -
---------- --------- ---------
Contributions:
Participants 3,815,537 - -
Employer - - -
Rollover 423,358 - -
----------- --------- ---------
Total contributions 4,238,895 - -
----------- --------- ---------
Distributions to participants (888,735) (191,647) -
Loan activity, net (369,610) (20,854) -
Transfers from (to) other funds 844,650 (9,019,786) (16,976,542)
----------- ---------- -----------
Net increase (decrease) 3,502,977 (9,148,249) (16,976,542)
----------- ---------- ----------
Net assets available for plan benefits
Beginning of year 8,362,217 9,148,249 16,976,542
Transfers from Lehman Brothers
Holdings, Inc. 105,735 - -
----------- ----------- ------------
End of year 11,970,929 - -
=========== =========== ============
24
Travelers Group 401(k) Savings Plan
Notes to Financial Statements
8. Investment Allocation With Fund Information (Continued)
December 31, 1994
-------------------------------------------------------------------------------------------
Smith Barney Smith Barney Deferred Salomon
High Smith Barney Guaranteed Profit Brothers
Income Utilities Income Sharing Capital
Fund Fund Fund Plan Fund Total
---- ---- ---- ---- ---- -----
Assets
- ------
Investments (notes 2 and 3) $ 9,775,793 10,466,979 138,828,645 62,948 - 830,805,913
Cash 8,770 9,820 56,373 - - 312,574
Receivables:
Contribution - 49,234 184,995 - - 25,670,548
Dividends and other 18 17 919,517 - - 1,490,848
---------- ---------- ----------- ------- -------- -----------
Total receivables 18 49,251 1,104,512 - - 27,161,396
---------- ---------- ----------- ------- -------- -----------
Total assets 9,784,581 10,526,050 139,989,530 62,948 - 858,279,883
---------- ---------- ----------- ------- -------- -----------
Liabilities
- -----------
Payable for investment purchases - - - - - 3,206,995
---------- ---------- ----------- ------- -------- -----------
Net assets available for
plan benefits $ 9,784,581 10,526,050 139,989,530 62,948 - 855,072,888
========== ========== =========== ======= ======== ===========
Investment activity:
Dividends 1,173,657 756,519 - - - 37,721,863
Interest 103 248 11,919,415 2,293 - 11,979,519
Appreciation (depreciation) in
fair value of investments (1,666,833) (2,041,936) - - - (65,295,864)
---------- ---------- ----------- ------- -------- -----------
(493,073) (1,285,169) 11,919,415 2,293 - (15,594,482)
Less: Trustee/administrative expenses (26,132) (27,908) (659,791) - - (2,163,517)
---------- ---------- ---------- ------- -------- -----------
Net investment income (loss) (519,205) (1,313,077) 11,259,624 2,293 - (17,757,999)
---------- ---------- ----------- ------- -------- -----------
Contributions:
Participants - 2,803,528 11,202,470 - - 115,976,200
Employer - - - - - 30,677,722
Rollover - 209,812 1,097,220 - - 10,813,472
----------- ----------- ----------- ------- ------- ------------
Total contributions - 3,013,340 12,299,690 - - 157,467,394
----------- ----------- ----------- ------- ------- ------------
Distributions to participants (1,162,276) (1,201,735) (10,029,884) (20,000) - (60,657,867)
Loan activity, net (590,957) (471,942) (3,495,892) - - -
Transfers from (to) other funds (3,799,377) (4,133,142) 16,538,772 - (3,069,805) -
---------- ---------- ----------- ------- ---------- ------------
Net increase (decrease) (6,071,815) (4,106,556) 26,572,310 (17,707) (3,069,805) 79,051,528
---------- ---------- ----------- ------- ---------- ------------
Net assets available for plan benefits
Beginning of year 15,665,918 14,409,854 111,745,624 80,655 3,069,805 772,462,946
Transfers from Lehman Brothers
Holdings, Inc. 190,478 222,752 1,671,596 - - 3,558,414
----------- ----------- ----------- -------- ---------- ------------
End of year $ 9,784,581 10,526,050 139,989,530 62,948 - 855,072,888
=========== =========== =========== ======== ========== ============
25
Travelers Group 401(k) Savings Plan
Schedule to Form 5500: Item 27(a)
Schedule of Assets Held for Investment Purposes
December 31, 1995
Number
Investment Descriptions of Shares Cost Value1
- ----------------------- --------- ---- ------
Short Term Funds:
Liquid Reserve Fund 720,652 $ 720,652 $ 720,652
Deferred Profit Sharing Plan 66,429 66,429 66,429
------------ -----------
787,081 787,081
------------ -----------
Stock Funds:
Travelers Group Inc. Common Stock Fund*2 4,867,293 151,907,915 304,814,224
American Express Common Stock Fund 2,113,944 59,124,871 87,464,433
------------ -----------
211,032,786 392,278,657
----------- -----------
Mutual Funds:
Van Kampen American Capital Reserve Fund 11,496,598 11,496,598 11,496,598
Van Kampen American Capital Government
Securities Fund 488,208 5,140,310 5,150,591
Van Kampen American Capital Comstock Fund 655,097 10,272,639 9,525,110
Van Kampen American Capital Emerging
Growth Fund 2,794,507 72,433,796 85,204,531
Common Sense Money Market Fund 2,732,191 2,732,191 2,732,189
Common Sense Government Fund 81,731 910,107 887,600
Common Sense Growth & Income Fund 197,430 3,069,018 3,233,904
Common Sense Growth Fund 251,097 3,782,938 3,927,164
Smith Barney Income & Growth Fund* 6,752,593 85,293,431 98,655,385
Smith Barney U.S. Government Securities Fund* 1,538,469 20,582,957 20,923,181
Smith Barney Income Return Fund* 600,282 5,706,488 5,768,707
Smith Barney Money Fund/Government Fund* 31,271,665 31,271,665 31,271,665
Smith Barney International Equity Fund* 5,570,703 93,116,193 94,757,657
Van Kampen American Capital Enterprise Fund 2,114,781 26,717,625 27,640,186
Smith Barney High Income Fund* 775,579 9,123,829 8,670,973
Smith Barney Aggressive Growth Fund* 1,038,993 24,577,162 33,112,710
Smith Barney Appreciation Fund* 11,020,190 106,488,345 131,250,468
Smith Barney Diversified Fund* 1,797,479 14,507,017 14,289,961
Smith Barney Utility Fund* 941,830 13,433,904 14,843,236
Smith Barney Special Equity Fund* 176,117 4,974,942 5,364,534
Smith Barney Managed Growth Fund* 834,527 9,817,140 10,039,358
----------- ------------
555,448,295 618,745,708
----------- ------------
(Continued)
26
Travelers Group 401(k) Savings Plan
Schedule to Form 5500: Item 27(a)
Schedule of Assets Held for Investment Purposes (Continued)
December 31, 1995
Number
Investment Descriptions (continued) of Shares Cost Value1
- ----------------------------------- --------- ---- ------
Guaranteed Investment Contracts ("GIC")3:
Aetna Life Insurance GIC #14355 4,701,145 $ 4,701,145 $ 4,701,145
Connecticut General Life Insurance
GIC #25112 18,588,183 18,588,183 18,588,183
John Hancock Contract GIC #7129 8,308,764 8,308,764 8,308,764
Metropolitan Life Insurance-Annuity Term
Life GIC #13560 7,387,412 7,387,412 7,387,412
Metropolitan Life GIC #13560 9,386,392 9,386,392 9,386,392
Principal Financial Corporate
Contract #4-09271-01 8,638,210 8,638,210 8,638,210
Principal Financial Corporate
Contract #49271-2 2,686,734 2,686,734 2,686,734
Prudential Insurance Company GIC #7658-211 6,295,860 6,295,860 6,295,860
Prudential Insurance Company GIC #7658-212 9,210,979 9,210,979 9,210,979
Travelers Life Insurance Company
Contract #GR16409A* 2,721,393 2,721,393 2,721,393
Travelers Life Insurance Company
Contract #GR-16384* 51,444,445 51,444,445 51,444,445
Travelers Life Insurance Company
Contract #GR-16409* 13,503,710 13,503,710 13,503,710
------------ -------------
142,873,227 142,873,227
------------ -------------
Loans:
Loan Fund 39,611,649 39,611,649
------------ -------------
Total Investments $ 949,753,038 $1,194,296,322
============ =============
- --------------------
* Parties-in-interest exempt under the ERISA regulation. See footnote 5 of
notes to financial statements.
1 See footnote 2(b) of notes to financial statements for a discussion of
investment valuation.
2 On January 24, 1996, The Board of Directors of Travelers declared a 3-for-2
stock split in the form of 50% stock dividend, payable on May 24, 1996 to
shareholders of record on May 6, 1996.
3 The rates of the guaranteed investment contracts range from 6.15% to
9.60%. The blended rate of return earned for 1995 was 7.75% prior to fund
expenses.
27
Travelers Group 401(k) Savings Plan
Schedule to Form 5500: Item 27(a)
Schedule of Assets Held for Investment Purposes Which Were Both Acquired and
Disposed Within The Plan Year
For The Year Ended December 31, 1995
There were no assets held for investment purposes which were both acquired and
disposed within the Plan year.
28
Travelers Group 401(k) Savings Plan
Schedule to Form 5500: Item 27(d)
Schedule of Reportable Transactions
For The Year Ended December 31, 1995
The following series of transactions exceeded 5% of the Plan's net assets
available for plan benefits of $855,072,888 at the beginning of the year ended
December 31, 1995.
No. of Purchase Selling Expense Cost Net
Description Transactions price price with trade of asset Gain(loss)
- ----------- ------------ ----- ----- ---------- -------- ----------
Travelers Group Inc. Common Stock Fund 262 $ 66,561,534 - 44,807 66,606,341 -
Travelers Group Inc. Common Stock Fund 215 - 17,430,212 19,453 11,408,961 6,001,798
29