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Exhibit 28(b)
FINANCIAL STATEMENTS
THE TRW CANADA STOCK
SAVINGS PLAN
DECEMBER 31, 1994 AND 1993
[ERNST & YOUNG LOGO]
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REPORT OF INDEPENDENT AUDITORS
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To the Participants and the Board of Administration of
THE TRW CANADA STOCK SAVINGS PLAN
We have audited the statements of financial condition of the TRW Stock Fund,
Pooled Money Market Fund Employees Profit Sharing Plan, Pooled Balanced Fund
Registered Retirement Savings Plan and Pooled Money Market Fund Registered
Retirement Savings Plan [constituting THE TRW CANADA STOCK SAVINGS PLAN] as at
December 31, 1994 and 1993 and the related statements of operations and changes
in fund equity for these funds for the years then ended. These financial
statements are the responsibility of the company'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 an audit to obtain
reasonable assurance 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.
In our opinion, these financial statements present fairly, in all material
respects, the financial position of the several funds of THE TRW CANADA STOCK
SAVINGS PLAN as at December 31, 1994 and 1993 and the results of their
operations and the changes in fund equity for the years then ended in
accordance with accounting principles generally accepted in Canada.
Hamilton, Canada,
March 17, 1995.
/s/ Ernst & Young
Chartered Accountants
[ERNST & YOUNG LOGO]
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THE TRW CANADA STOCK SAVINGS PLAN
TRW STOCK FUND
STATEMENTS OF FINANCIAL CONDITION
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As at December 31
1994 1993
$ $
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[expressed in Canadian dollars]
ASSETS
Cash 56,984 30,438
Receivable from TRW Canada Limited 9,608 22,789
Investments at quoted market value
TRW Inc. common stock
8,018 shares [cost $736,255] in 1994 and
9,190 shares [cost $713,962] in 1993 741,825 841,140
---------------------------------------------------------------------------------------------------
808,417 894,367
===================================================================================================
LIABILITIES AND FUND EQUITY
LIABILITIES
Withdrawals, terminations and short term distributions 664,220 747,502
Fund equity [including net unrealized appreciation of investments] 144,197 146,865
---------------------------------------------------------------------------------------------------
808,417 894,367
===================================================================================================
NUMBER OF SHARES OUTSTANDING AT DECEMBER 31 8,018 9,190
===================================================================================================
FUND EQUITY PER SHARE AT DECEMBER 31 17.9842 15.9810
===================================================================================================
See accompanying notes
[ERNST & YOUNG LOGO]
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THE TRW CANADA STOCK SAVINGS PLAN
TRW STOCK FUND
STATEMENTS OF OPERATIONS AND CHANGES IN FUND EQUITY
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Years ended December 31
1994 1993
$ $
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[expressed in Canadian dollars]
INVESTMENT INCOME
Dividends on TRW Inc. common stock 10,458 11,579
Interest 159 275
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10,617 11,854
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CONTRIBUTIONS
Participants 387,848 371,565
TRW Canada Limited
50% of total participants' contributions to all funds 370,938 381,419
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758,786 752,984
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Net realized gain on transfer
of investments to participants [note 4] 116,865 132,939
Unrealized depreciation of investments [note 4] (121,608) (21,021)
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(4,743) 111,918
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764,660 876,756
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Less withdrawals and terminations in respect
of the current year
Paid
Cash 4,025 3,111
TRW Inc. common stock
1,048 shares in 1994; 1,725 shares in 1993 99,083 140,595
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103,108 143,706
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Payable
Cash 17,330 18,026
TRW Inc. common stock
6,992 shares in 1994; 7,970 shares in 1993 646,890 729,476
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664,220 747,502
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767,328 891,208
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DECREASE IN FUND EQUITY (2,668) (14,452)
Fund equity at January 1 146,865 161,317
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FUND EQUITY AT DECEMBER 31 144,197 146,865
====================================================================================================
See accompanying notes
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THE TRW CANADA STOCK SAVINGS PLAN
POOLED MONEY MARKET FUND EMPLOYEES PROFIT SHARING PLAN
STATEMENTS OF FINANCIAL CONDITION
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As at December 31
1994 1993
$ $
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[expressed in Canadian dollars]
ASSETS
Cash 13,100 12,082
Receivable from TRW Canada Limited 2,339 4,322
Interest receivable 1,132 982
Investment at market value
Royal Trust Company Classified Money Market Fund
19,967 units [cost $199,667] in 1994 and
21,978 units [cost $219,775] in 1993 199,667 219,775
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216,238 237,161
============================================================================
LIABILITIES AND FUND EQUITY
LIABILITIES
Withdrawals, terminations and short term distributions 190,553 209,101
Fund equity 25,685 28,060
----------------------------------------------------------------------------
216,238 237,161
============================================================================
NUMBER OF UNITS OUTSTANDING AT DECEMBER 31 2,568.5 2,806.0
============================================================================
FUND EQUITY PER UNIT AT DECEMBER 31 10.0 10.0
============================================================================
See accompanying notes
[ERNST & YOUNG LOGO]
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THE TRW CANADA STOCK SAVINGS PLAN
POOLED MONEY MARKET FUND EMPLOYEES PROFIT SHARING PLAN
STATEMENTS OF OPERATIONS AND CHANGES IN FUND EQUITY
------------------------------------------------------------------------
Years ended December 31
1994 1993
$ $
------------------------------------------------------------------------
[expressed in Canadian dollars]
INTEREST INCOME 7,018 7,989
PARTICIPANTS' CONTRIBUTIONS 208,002 233,107
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215,020 241,096
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Less cash withdrawals and terminations
Paid 26,842 51,580
Payable 190,553 209,101
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217,395 260,681
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DECREASE IN FUND EQUITY (2,375) (19,585)
Fund equity at January 1 28,060 47,645
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FUND EQUITY AT DECEMBER 31 25,685 28,060
========================================================================
See accompanying notes
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THE TRW CANADA STOCK SAVINGS PLAN
POOLED BALANCED FUND REGISTERED RETIREMENT SAVINGS PLAN
STATEMENTS OF FINANCIAL CONDITION
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As at December 31
1994 1993
$ $
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[expressed in Canadian dollars]
ASSETS
Cash 4,258 4,810
Receivable from TRW Canada Limited 1,942 3,761
Interest receivable 10,095 7,915
Receivable from Pooled Money Market Fund Registered
Retirement Savings Plan -- 1,948
Investments at quoted market value
Royal Trust Company Classified Balanced Fund
16,966.3907 units [cost $201,864] in 1994 and
14,200.6884 units [cost $164,198] in 1993 199,962 184,792
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216,257 203,226
============================================================================================================
LIABILITIES AND FUND EQUITY
LIABILITIES
Withdrawals, terminations and short term distributions 17,478 3,807
Fund equity [including net unrealized appreciation of investments] 198,779 199,419
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216,257 203,226
============================================================================================================
NUMBER OF UNITS OUTSTANDING AT DECEMBER 31 16,966.3907 14,200.6884
============================================================================================================
FUND EQUITY PER UNIT AT DECEMBER 31 11.716 14.043
============================================================================================================
See accompanying notes
[ERNST & YOUNG LOGO]
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THE TRW CANADA STOCK SAVINGS PLAN
POOLED BALANCED FUND REGISTERED RETIREMENT SAVINGS PLAN
STATEMENTS OF OPERATIONS AND CHANGES IN FUND EQUITY
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Years ended December 31
1994 1993
$ $
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[expressed in Canadian dollars]
INCOME 19,205 14,857
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CONTRIBUTIONS
Participants' contributions 90,583 84,617
Transfer from Pooled Money Market Fund Registered
Retirement Savings Plan -- 8,290
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90,583 92,907
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Net realized gain on disposition of investments [note 4] 2,140 719
Unrealized appreciation (depreciation) of investments [note 4] (22,496) 17,870
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(20,356) 18,589
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89,432 126,353
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Less cash withdrawals and terminations
Paid 72,594 40,300
Payable 17,478 3,807
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90,072 44,107
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INCREASE (DECREASE) IN FUND EQUITY (640) 82,246
Fund equity at January 1 199,419 117,173
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FUND EQUITY AT DECEMBER 31 198,779 199,419
==============================================================================================================
See accompanying notes
[ERNST & YOUNG LOGO]
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THE TRW CANADA STOCK SAVINGS PLAN
POOLED MONEY MARKET FUND REGISTERED RETIREMENT SAVINGS PLAN
STATEMENTS OF FINANCIAL CONDITION
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As at December 31
1994 1993
$ $
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[expressed in Canadian dollars]
ASSETS
Cash 1,598 3,284
Receivable from TRW Canada Limited 2,470 3,672
Interest receivable 1,192 874
Investment at market value
Royal Trust Company Classified Pooled Money Market Fund
20,374.5 units [cost $203,745] in 1994 and 19,054.8 units
[cost $190,548] in 1993 203,745 190,548
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209,005 198,378
=====================================================================================================
LIABILITIES AND FUND EQUITY
LIABILITIES
Withdrawals, terminations and short term distributions 14,282 1,563
Payable to Pooled Balanced Fund Registered Retirement
Savings Plan -- 1,948
Fund equity 194,723 194,867
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209,005 198,378
=====================================================================================================
NUMBER OF UNITS OUTSTANDING AT DECEMBER 31 19,472.3 19,486.7
=====================================================================================================
FUND EQUITY PER UNIT AT DECEMBER 31 10.0 10.0
=====================================================================================================
See accompanying notes
[ERNST & YOUNG LOGO]
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THE TRW CANADA STOCK SAVINGS PLAN
POOLED MONEY MARKET FUND REGISTERED RETIREMENT SAVINGS PLAN
STATEMENTS OF OPERATIONS AND CHANGES IN FUND EQUITY
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Years ended December 31
1994 1993
$ $
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[expressed in Canadian dollars]
INTEREST INCOME 10,729 10,052
PARTICIPANTS' CONTRIBUTIONS 55,440 73,538
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66,169 83,590
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Less cash withdrawals and terminations
Paid
Cash 52,031 40,325
Transfer to Pooled Balanced Fund Registered Retirement
Savings Plan -- 6,342
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52,031 46,667
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Payable
Cash 14,282 1,563
Transfer to Pooled Balanced Fund Registered Retirement
Savings Plan -- 1,948
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14,282 3,511
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66,313 50,178
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INCREASE (DECREASE) IN FUND EQUITY (144) 33,412
Fund equity at January 1 194,867 161,455
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FUND EQUITY AT DECEMBER 31 194,723 194,867
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See accompanying notes
[ERNST & YOUNG LOGO]
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THE TRW CANADA STOCK SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
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December 31, 1994 and 1993
1. GENERAL PLAN PROVISIONS
The investment programs of the TRW Canada Stock Savings Plan [the "Plan"] are
as follows:
PARTICIPANT CONTRIBUTIONS
Upon enrollment or re-enrollment, each participant directs that his
contributions [computed in increments of one percent, from two per cent to six
per cent of qualifying compensation] are to be invested in accordance with any
of the following investment options:
[a] 100% in the TRW Stock Fund [the common stock of TRW Inc. in
accordance with the trust agreement and the Plan].
[b] 100% in the Pooled Money Market Fund Employees Profit Sharing
Plan. At present, the Trustee invests all of the Pooled Money
Market Fund amounts in the Royal Trust Company, Classified Money
Market Fund in accordance with the Trust agreement and the Plan.
[c] 100% in the Pooled Balanced Fund Registered Retirement Savings
Plan. At present, the Trustee invests all of the Pooled Balanced
Fund amounts in the Royal Trust Company, Classified Balanced Fund,
in accordance with the Trust agreement and the Plan.
[d] 100% in the Pooled Money Market Fund Registered Retirement Savings
Plan. At present, the Trustee invests all of the Pooled Money
Market Fund amounts in the Royal Trust Company, Classified Pooled
Money Market Fund in accordance with the Trust agreement and the
Plan.
[e] A combination of options [a] through [d] in multiples of 25%.
Such direction may be revised on 30 days prior notice, effective January 1 of
any year.
TRW CANADA LIMITED CONTRIBUTIONS
TRW Canada Limited shall contribute to the plan for each month, out of current
or accumulated earnings, an amount equal to 50% of participant contributions
for such month. TRW Canada Limited contributions vest immediately.
All TRW Canada Limited contributions are invested in the TRW Stock Fund.
TRW Canada Limited does not charge a fee for administering the Plans.
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THE TRW CANADA STOCK SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
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December 31, 1994 and 1993
The number of participants in each Fund at December 31 is as follows:
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TRW Stock Fund 269 267
Pooled Money Market Fund Employees Profit Sharing Plan 110 112
Pooled Balanced Fund Registered Retirement Savings Plan 66 64
Pooled Money Market Fund Registered Retirement Savings Plan 49 56
The total number of participants in the Plan is less than the sum of the number
of participants shown above because many are participating in more than one
Fund.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
These financial statements have been prepared in accordance with accounting
principles generally accepted in Canada, and are within the framework of the
accounting policies summarized below.
GAIN AND LOSSES ON INVESTMENTS
The realized gain or loss on disposition or transfer of an investment is
determined from the market value of the investment at the date of disposition
or transfer and the average cost base of that specific pool of investments
prior to the disposition or transfer.
Unrealized gains or losses are determined as the net effect of the change in
appreciation/depreciation of the investments from January 1 to December 31,
based on market values and the average cost base of each investment at those
respective dates.
INCOME RECOGNITION
Dividends are recognized as earned.
Interest income is recognized as it is earned consistent with the accrual basis
of accounting.
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THE TRW CANADA STOCK SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
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December 31, 1994 and 1993
3. INCOME TAXES
The Plan is exempt from Canadian federal income taxes under provisions of the
Income Tax Act. Federal income tax consequences to the participants under the
Plan are as provided in the Income Tax Act. TRW Canada Limited contributions
are taxable to the participants as is the income and all post-1971 capital
gains less post-1971 capital losses of the Plan, all of which are allocated to
the participants by the Trustee during the year, whether or not such amounts
are paid to the participants by the Trustee during the year. In some
circumstances, the amounts taxable could exceed the amounts allocated. The
amount of foreign non-business income tax paid on foreign source income by the
trusts under the Plan for the year is allocated to and deemed to have been paid
by the participants for Canadian federal income tax purposes. Participants who
are non-resident taxpayers are subject to special rules depending on whether
they have performed duties in Canada during the year and are subject to 15%
withholding tax on amounts paid or credited to them under the Plan.
4. UNREALIZED AND REALIZED (LOSSES) GAINS
Investments are stated at their quoted market value. The net unrealized
appreciation (depreciation) of investments included in fund equity is as
follows:
TRW POOLED
STOCK BALANCED
FUND FUND
$ $
-------------------------------------------------------------
BALANCE AT DECEMBER 31, 1992 148,199 2,724
Change for the year
Market value (21,021) 17,870
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BALANCE AT DECEMBER 31, 1993 127,178 20,594
Change for the year
Market value (121,608) (22,496)
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BALANCE AT DECEMBER 31, 1994 5,570 (1,902)
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THE TRW CANADA STOCK SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
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December 31, 1994 and 1993
The net realized gain on disposition of investments is summarized as follows:
TRW STOCK FUND
----------------------
1994 1993
$ $
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AMOUNT REALIZED 837,779 884,176
Cost - average 720,914 751,237
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NET REALIZED GAIN 116,865 132,939
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POOLED BALANCED FUND
REGISTERED RETIREMENT
SAVINGS PLAN
----------------------
1994 1993
$ $
----------------------------------------------------
AMOUNT REALIZED 32,470 11,050
Cost - average 30,330 10,331
----------------------------------------------------
NET REALIZED GAIN 2,140 719
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5. RELATED PARTY TRANSACTIONS
All expenses related to the TRW Canada Stock Savings Plan are paid by TRW
Canada Limited.
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