-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, HfxQ7EJcm+K0VSczfzg0V/9kTMx+5aQ+DPeAXpJ66WfyLCTgyBahF7MQo9KrX8N4 NkOGSU8+zR9F+qR9WUbyQA== 0000912057-97-022012.txt : 19970627 0000912057-97-022012.hdr.sgml : 19970627 ACCESSION NUMBER: 0000912057-97-022012 CONFORMED SUBMISSION TYPE: 10-K405/A PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19961231 FILED AS OF DATE: 19970626 SROS: NYSE SROS: PSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: TRAVELERS GROUP INC CENTRAL INDEX KEY: 0000831001 STANDARD INDUSTRIAL CLASSIFICATION: FIRE, MARINE & CASUALTY INSURANCE [6331] IRS NUMBER: 521568099 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-K405/A SEC ACT: SEC FILE NUMBER: 001-09924 FILM NUMBER: 97630457 BUSINESS ADDRESS: STREET 1: 388 GREENWICH ST STREET 2: LEGAL DEPT 20TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10013 BUSINESS PHONE: 2128168000 MAIL ADDRESS: STREET 1: 388 GREENWICH ST STREET 2: LEGAL DEPT 20TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10013 FORMER COMPANY: FORMER CONFORMED NAME: TRAVELERS INC DATE OF NAME CHANGE: 19940103 FORMER COMPANY: FORMER CONFORMED NAME: PRIMERICA CORP /NEW/ DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: COMMERCIAL CREDIT GROUP INC DATE OF NAME CHANGE: 19890102 10-K405/A 1 10-K 405/A UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _________________ FORM 10-K/A-1 /x/ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 1996 OR / / TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______ ________________ Commission file number 1-9924 ________________ TRAVELERS GROUP INC. (Exact name of registrant as specified in its charter) Delaware 52-1568099 (State or other jurisdiction of (I.R.S. Employer Identification No.) incorporation or organization) 388 Greenwich Street, New York, New York 10013 (Address of principal executive offices) (Zip Code) (212) 816-8000 (Registrant's telephone number, including area code) ________________ Securities registered pursuant to Section 12(b) of the Act: Name of each exchange on Title of each class which registered ___________________ ________________________ Common Stock, par value $ .01 per share New York Stock Exchange and Pacific Stock Exchange Depositary Shares, each representing New York Stock Exchange 1/10 of a share of 8.125% Cumulative Preferred Stock, Series A Depositary Shares, each representing 1/2 New York Stock Exchange of a share of 9.25% Preferred Stock, Series D 7 3/4% Notes Due June 15, 1999 New York Stock Exchange 1998 Warrants to Purchase Common Stock New York Stock Exchange 8% Trust Preferred Securities of New York Stock Exchange Subsidiary Trust (and registrant's guaranty with respect thereto) 7 3/4% Trust Preferred Securities of New York Stock Exchange Subsidiary Trust (and registrant's guaranty with respect thereto) 7 5/8% Trust Preferred Securities of New York Stock Exchange Subsidiary Trust (and registrant's guaranty with respect thereto) Securities registered pursuant to Section 12(g) of the Act: None Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No ______ ______ Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. /X/ The aggregate market value of the voting stock held by nonaffiliates of the registrant as of March 5, 1997 was approximately $34.2 billion. As of March 5, 1997, 641,379,081 shares of the registrant's Common Stock, par value $.01 per share, were outstanding. DOCUMENTS INCORPORATED BY REFERENCE Certain portions of the registrant's Annual Report to Stockholders for the fiscal year ended December 31, 1996 are incorporated by reference into Part II of this Form 10-K/A-1. Certain portions of the registrant's Proxy Statement for the 1997 Annual Meeting of Stockholders to be held on April 23, 1997 are incorporated by reference into Part III of this Form 10-K/A-1. EXPLANATORY NOTE This Form 10-K/A-1 is being filed to include as an exhibit to the Form 10-K financial statements for the Travelers Group 401(k) Savings Plan pursuant to Rule 15d-21 of the Securities Exchange Act of 1934, as amended. Other than the related additions to the Exhibit Index, the text of Item 14 has not been amended and speaks as of the date of the original filing of the Form 10-K. 2 PART IV ------- Item 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM 8-K. (a) Documents filed as a part of the report: (1) Financial Statements. See Index to Consolidated Financial Statements and Schedules on page F-1 hereof. (2) Financial Statement Schedules. See Index to Consolidated Financial Statements and Schedules on page F-1 hereof. (3) Exhibits: See Exhibit Index. (b) Reports on Form 8-K: No reports on Form 8-K were filed during the fourth quarter of 1996. 3 EXHIBIT INDEX _____________ Exhibit Filing Number Description of Exhibit Method _______ ______________________ ________ 3.01 Restated Certificate of Incorporation of Travelers Group Inc. (formerly The Travelers Inc.) (the "Company"), Certificate of Designation of Cumulative Adjustable Rate Preferred Stock, Series Y, and Certificate of Amendment to the Restated Certificate of Incorporation, incorporated by reference to Exhibit 3.01 to Amendment No. 1 to the Company's Registration Statement on Form S-4 (No. 333-00737). 3.02 By-Laws of the Company as amended through January 24, 1996, incorporated by reference to Exhibit 3.02 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 1995 (File No. 1-9924) (the "Company's 1995 10-K"). 10.01* Employment Protection Agreement, dated as of December 31, 1987, between the Company (as successor to Commercial Credit Company ("CCC")) and Sanford I. Weill, incorporated by reference to Exhibit 10.03 to CCC's Annual Report on Form 10-K for the fiscal year ended December 31, 1987 (File No. 1-6594). 10.02.1* Travelers Group Stock Option Plan (as amended and restated as of April 24, 1996). 10.02.2* Amendment No. 14 to the Travelers Group Stock Option Plan, incorporated by reference to Exhibit 10.01 to the Company's Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 1996 (File No. 1-9924) (the "Company's September 30, 1996 10-Q"). 10.03* Travelers Group 1996 Stock Incentive Plan (as amended through November 22, 1996). 10.04* Retirement Benefit Equalization Plan of the Company (as amended and restated as of January 1, 1994). 10.05* Letter Agreement between Joseph A. Califano, Jr. and the Company, dated December 14, 1988, incorporated by reference to Exhibit 10.21.1 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 1988 (File No. 1-9924). 4 Exhibit Filing Number Description of Exhibit Method _______ ______________________ ________ 10.06* Travelers Group Inc. Amended and Restated Compensation Plan for Non-Employee Directors, incorporated by reference to Exhibit 10.02 to the Company's September 30, 1996 10-Q. 10.07.1* Supplemental Retirement Plan of the Company, incorporated by reference to Exhibit 10.23 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 1990 (File No. 1-9924). 10.07.2* Amendment to the Company's Supplemental Retirement Plan, incorporated by reference to Exhibit 10.06.2 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 1993 (File No. 1-9924) (the "Company's 1993 10-K"). 10.08* The Travelers Inc. Executive Performance Compensation Plan, effective April 27, 1994, incorporated by reference to Exhibit 10.07 to the Company's 1995 10-K. 10.09* Travelers Group Capital Accumulation Plan (as amended through September 25, 1996), incorporated by reference to Exhibit 10.03 to the Company's September 30, 1996 10-Q. 10.10* Agreement dated December 21, 1993 between the Company and Edward H. Budd, incorporated by reference to Exhibit 10.22 to the Company's 1993 10-K. 10.11* The Travelers Inc. Deferred Compensation and Partnership Participation Plan, incorporated by reference to Exhibit 10.31 to the Company's Annual Report on Form 10-K/A-1 for the fiscal year ended December 31, 1994 (File No. 1-9924). 10.12.1 Stock Purchase Agreement dated as of November 28, 1995, between The Travelers Insurance Group Inc. and Aetna Life and Casualty Company, incorporated by reference to Exhibit 10.1 to the Annual Report on Form 10-K of Aetna Life and Casualty Company for the fiscal year ended December 31, 1995 (File No. 1-5704). 5 Exhibit Filing Number Description of Exhibit Method _______ ______________________ ________ 10.12.2 Assignment of Stock Purchase Agreement, dated as of March 22, 1996, between Travelers Property Casualty Corp. (formerly Travelers/Aetna Property Casualty Corp.) ("TAP") and The Travelers Insurance Group Inc., incorporated by reference to Exhibit 2.2 to Amendment No. 5 of the Registration Statement on Form S-1 of TAP (No. 333-2254). 10.12.3 Amendment to Stock Purchase Agreement, dated as of April 2, 1996, between TAP and Aetna Casualty and Surety Company, incorporated by reference to Exhibit 10.01 to the Company's Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 1996 (File No. 1-9924) (the "Company's March 31, 1996 10-Q"). 10.13* The Travelers Corporation 1984 Management Incentive Plan, as amended effective January 1, 1991, incorporated by reference to Exhibit 10(c) to the Annual Report on Form 10-K of The Travelers Corporation ("old Travelers") for the fiscal year ended December 31, 1990 (File No. 1-5799). 10.14* The Travelers Corporation Supplemental Benefit Plan, effective December 20, 1992, incorporated by reference to Exhibit 10(d) to the Annual Report on Form 10-K of old Travelers for the fiscal year ended December 31, 1992 (File No. 1-5799). 10.15* The Travelers Corporation TESIP Restoration and Non-Qualified Savings Plan, effective January 1, 1991, incorporated by reference to Exhibit 10(e) to the Annual Report on Form 10-K of old Travelers for the fiscal year ended December 31, 1991 (File No. 1-5799). 10.16* The Travelers Corporation Directors' Deferred Compensation Plan, as amended November 7, 1986, incorporated by reference to Exhibit 10(d) to the Annual Report on Form 10-K of old Travelers for the fiscal year ended December 31, 1986 (File No. 1-5799). 10.17* Employment Agreement dated as of December 30, 1994, between SBI and Joseph J. Plumeri II, incorporated by reference to Exhibit 10.30 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 1994 (File No. 1-9924). 6 Exhibit Filing Number Description of Exhibit Method _______ ______________________ ________ 10.18* Letter Agreement, dated as of January 13, 1997, between the Company and Jon C. Madonna. 10.19* Travelers Property Casualty Corp. Capital Accumulation Plan (as amended through September 1, 1996), incorporated by reference to Exhibit 10.01 to the Quarterly Report on Form 10-Q of Travelers Property Casualty Corp. (formerly Travelers/Aetna Property Casualty Corp.) for the fiscal quarter ended September 30, 1996 (File No. 1-14328). 11.01 Computation of Earnings Per Share. 12.01 Computation of Ratio of Earnings to Fixed Charges. 13.01 Pages 32 through 78 of the 1996 Annual Report to Stockholders of the Company (pagination of exhibit does not correspond to pagination in the 1996 Annual Report to Stockholders). 21.01 Subsidiaries of the Company. 23.01 Consent of KPMG Peat Marwick LLP, Independent Certified Public Accountants. 23.02** Accountant's consent to incorporation by Electronic reference of report filed with Exhibit 99.07. 24.01 Powers of Attorney. 27.01 Financial Data Schedule. 99.01 The fourth paragraph on page 26 of the Company's September 30, 1993 10-Q, the first paragraph under the heading "Smith Barney" on page 65 of the Company's 1995 10-K and the first paragraph on page 34 of the Company's September 30, 1996 10-Q. 99.02 The third paragraph on page 16 of the Quarterly Report on Form 10-Q of Smith Barney Holdings Inc. for the fiscal quarter ended September 30, 1994 and the last full paragraph on page 65 of the Company's 1995 10-K. 99.03 The first paragraph on page 35 of the Company's Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 1996 (the "Company's June 30, 1996 10-Q"). 99.04 The paragraph that begins on page 2 and ends on page 3 of the Company's Current Report on Form 8-K dated March 1, 1994. 7 Exhibit Filing Number Description of Exhibit Method _______ ______________________ ________ 99.05 The paragraph that begins on page 90 and ends on page 91 of the Prospectus dated April 22, 1996 of TAP, the second paragraph on page 35 of the Company's June 30, 1996 10-Q and the second paragraph on page 34 of the Company's September 30, 1996 10-Q. 99.06 The second paragraph on page 30 of the Company's Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 1995, the fourth paragraph on page 25 of the Company's March 31, 1996 10-Q and the third paragraph on page 34 of the Company's September 30, 1996 10-Q. 99.07** 1996 Financial Statements of Travelers Electronic Group 401(k) Savings Plan. The total amount of securities authorized pursuant to any instrument defining rights of holders of long-term debt of the Company does not exceed 10% of the total assets of the Company and its consolidated subsidiaries. The Company will furnish copies of any such instrument to the Commission upon request. The financial statements required by Form 11-K for 1996 for the Travelers Group 401(k) Savings Plan are being filed as an exhibit to this Form 10-K/A-1 pursuant to Rule 15d-21 of the Securities Exchange Act of 1934, as amended. Copies of any of the exhibits referred to above will be furnished at a cost of $.25 per page (although no charge will be made for the 1996 Annual Report on Form 10-K) to security holders who make written request therefor to Corporate Communications and Investor Relations Department, Travelers Group Inc., 388 Greenwich Street, New York, New York 10013. ____________________ * Denotes a management contract or compensatory plan or arrangement required to be filed as an exhibit pursuant to Item 14(c) of Form 10-K. ** Filed with Form 10-K/A-1. Except as otherwise indicated, all other exhibits were filed with the initial filing of the Form 10-K. 8 SIGNATURE Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, on the 26th day of June, 1997. TRAVELERS GROUP INC. (Registrant) By: /s/ Irwin Ettinger ---------------------- Irwin Ettinger Executive Vice President 9 EXHIBIT INDEX _____________ Exhibit Filing Number Description of Exhibit Method _______ ______________________ ________ 3.01 Restated Certificate of Incorporation of Travelers Group Inc. (formerly The Travelers Inc.) (the "Company"), Certificate of Designation of Cumulative Adjustable Rate Preferred Stock, Series Y, and Certificate of Amendment to the Restated Certificate of Incorporation, incorporated by reference to Exhibit 3.01 to Amendment No. 1 to the Company's Registration Statement on Form S-4 (No. 333-00737). 3.02 By-Laws of the Company as amended through January 24, 1996, incorporated by reference to Exhibit 3.02 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 1995 (File No. 1-9924) (the "Company's 1995 10-K"). 10.01* Employment Protection Agreement, dated as of December 31, 1987, between the Company (as successor to Commercial Credit Company ("CCC")) and Sanford I. Weill, incorporated by reference to Exhibit 10.03 to CCC's Annual Report on Form 10-K for the fiscal year ended December 31, 1987 (File No. 1-6594). 10.02.1* Travelers Group Stock Option Plan (as amended and restated as of April 24, 1996). 10.02.2* Amendment No. 14 to the Travelers Group Stock Option Plan, incorporated by reference to Exhibit 10.01 to the Company's Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 1996 (File No. 1-9924) (the "Company's September 30, 1996 10-Q"). 10.03* Travelers Group 1996 Stock Incentive Plan (as amended through November 22, 1996). 10.04* Retirement Benefit Equalization Plan of the Company (as amended and restated as of January 1, 1994). 10.05* Letter Agreement between Joseph A. Califano, Jr. and the Company, dated December 14, 1988, incorporated by reference to Exhibit 10.21.1 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 1988 (File No. 1-9924). Exhibit Filing Number Description of Exhibit Method _______ ______________________ ________ 10.06* Travelers Group Inc. Amended and Restated Compensation Plan for Non-Employee Directors, incorporated by reference to Exhibit 10.02 to the Company's September 30, 1996 10-Q. 10.07.1* Supplemental Retirement Plan of the Company, incorporated by reference to Exhibit 10.23 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 1990 (File No. 1-9924). 10.07.2* Amendment to the Company's Supplemental Retirement Plan, incorporated by reference to Exhibit 10.06.2 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 1993 (File No. 1-9924) (the "Company's 1993 10-K"). 10.08* The Travelers Inc. Executive Performance Compensation Plan, effective April 27, 1994, incorporated by reference to Exhibit 10.07 to the Company's 1995 10-K. 10.09* Travelers Group Capital Accumulation Plan (as amended through September 25, 1996), incorporated by reference to Exhibit 10.03 to the Company's September 30, 1996 10-Q. 10.10* Agreement dated December 21, 1993 between the Company and Edward H. Budd, incorporated by reference to Exhibit 10.22 to the Company's 1993 10-K. 10.11* The Travelers Inc. Deferred Compensation and Partnership Participation Plan, incorporated by reference to Exhibit 10.31 to the Company's Annual Report on Form 10-K/A-1 for the fiscal year ended December 31, 1994 (File No. 1-9924). 10.12.1 Stock Purchase Agreement dated as of November 28, 1995, between The Travelers Insurance Group Inc. and Aetna Life and Casualty Company, incorporated by reference to Exhibit 10.1 to the Annual Report on Form 10-K of Aetna Life and Casualty Company for the fiscal year ended December 31, 1995 (File No. 1-5704). Exhibit Filing Number Description of Exhibit Method _______ ______________________ ________ 10.12.2 Assignment of Stock Purchase Agreement, dated as of March 22, 1996, between Travelers Property Casualty Corp. (formerly Travelers/Aetna Property Casualty Corp.) ("TAP") and The Travelers Insurance Group Inc., incorporated by reference to Exhibit 2.2 to Amendment No. 5 of the Registration Statement on Form S-1 of TAP (No. 333-2254). 10.12.3 Amendment to Stock Purchase Agreement, dated as of April 2, 1996, between TAP and Aetna Casualty and Surety Company, incorporated by reference to Exhibit 10.01 to the Company's Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 1996 (File No. 1-9924) (the "Company's March 31, 1996 10-Q"). 10.13* The Travelers Corporation 1984 Management Incentive Plan, as amended effective January 1, 1991, incorporated by reference to Exhibit 10(c) to the Annual Report on Form 10-K of The Travelers Corporation ("old Travelers") for the fiscal year ended December 31, 1990 (File No. 1-5799). 10.14* The Travelers Corporation Supplemental Benefit Plan, effective December 20, 1992, incorporated by reference to Exhibit 10(d) to the Annual Report on Form 10-K of old Travelers for the fiscal year ended December 31, 1992 (File No. 1-5799). 10.15* The Travelers Corporation TESIP Restoration and Non-Qualified Savings Plan, effective January 1, 1991, incorporated by reference to Exhibit 10(e) to the Annual Report on Form 10-K of old Travelers for the fiscal year ended December 31, 1991 (File No. 1-5799). 10.16* The Travelers Corporation Directors' Deferred Compensation Plan, as amended November 7, 1986, incorporated by reference to Exhibit 10(d) to the Annual Report on Form 10-K of old Travelers for the fiscal year ended December 31, 1986 (File No. 1-5799). 10.17* Employment Agreement dated as of December 30, 1994, between SBI and Joseph J. Plumeri II, incorporated by reference to Exhibit 10.30 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 1994 (File No. 1-9924). Exhibit Filing Number Description of Exhibit Method _______ ______________________ ________ 10.18* Letter Agreement, dated as of January 13, 1997, between the Company and Jon C. Madonna. 10.19* Travelers Property Casualty Corp. Capital Accumulation Plan (as amended through September 1, 1996), incorporated by reference to Exhibit 10.01 to the Quarterly Report on Form 10-Q of Travelers Property Casualty Corp. (formerly Travelers/Aetna Property Casualty Corp.) for the fiscal quarter ended September 30, 1996 (File No. 1-14328). 11.01 Computation of Earnings Per Share. 12.01 Computation of Ratio of Earnings to Fixed Charges. 13.01 Pages 32 through 78 of the 1996 Annual Report to Stockholders of the Company (pagination of exhibit does not correspond to pagination in the 1996 Annual Report to Stockholders). 21.01 Subsidiaries of the Company. 23.01 Consent of KPMG Peat Marwick LLP, Independent Certified Public Accountants. 23.02** Accountant's consent to incorporation by Electronic reference of report filed with Exhibit 99.07. 24.01 Powers of Attorney. 27.01 Financial Data Schedule. 99.01 The fourth paragraph on page 26 of the Company's September 30, 1993 10-Q, the first paragraph under the heading "Smith Barney" on page 65 of the Company's 1995 10-K and the first paragraph on page 34 of the Company's September 30, 1996 10-Q. 99.02 The third paragraph on page 16 of the Quarterly Report on Form 10-Q of Smith Barney Holdings Inc. for the fiscal quarter ended September 30, 1994 and the last full paragraph on page 65 of the Company's 1995 10-K. 99.03 The first paragraph on page 35 of the Company's Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 1996 (the "Company's June 30, 1996 10-Q"). 99.04 The paragraph that begins on page 2 and ends on page 3 of the Company's Current Report on Form 8-K dated March 1, 1994. Exhibit Filing Number Description of Exhibit Method _______ ______________________ ________ 99.05 The paragraph that begins on page 90 and ends on page 91 of the Prospectus dated April 22, 1996 of TAP, the second paragraph on page 35 of the Company's June 30, 1996 10-Q and the second paragraph on page 34 of the Company's September 30, 1996 10-Q. 99.06 The second paragraph on page 30 of the Company's Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 1995, the fourth paragraph on page 25 of the Company's March 31, 1996 10-Q and the third paragraph on page 34 of the Company's September 30, 1996 10-Q. 99.07** 1996 Financial Statements of Travelers Electronic Group 401(k) Savings Plan. The total amount of securities authorized pursuant to any instrument defining rights of holders of long-term debt of the Company does not exceed 10% of the total assets of the Company and its consolidated subsidiaries. The Company will furnish copies of any such instrument to the Commission upon request. The financial statements required by Form 11-K for 1996 for the Travelers Group 401(k) Savings Plan are being filed as an exhibit to this Form 10-K/A-1 pursuant to Rule 15d-21 of the Securities Exchange Act of 1934, as amended. Copies of any of the exhibits referred to above will be furnished at a cost of $.25 per page (although no charge will be made for the 1996 Annual Report on Form 10-K) to security holders who make written request therefor to Corporate Communications and Investor Relations Department, Travelers Group Inc., 388 Greenwich Street, New York, New York 10013. ___________________ * Denotes a management contract or compensatory plan or arrangement required to be filed as an exhibit pursuant to Item 14(c) of Form 10-K. ** Filed with Form 10-K/A-1. Except as otherwise indicated, all other exhibits were filed with the initial filing of the Form 10-K. EX-23.02 2 EXHIBIT 23.02 Exhibit 23.02 CONSENT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS The Plans Administration Committee Travelers Group Inc.: We consent to the incorporation by reference in the Registration Statements (Nos. 33-32130, 33-43997, 33-52027, 33-59524 and 333-25603) on Form S-8 of Travelers Group Inc. of our report dated June 23, 1997 relating to the statements of net assets available for plan benefits of Travelers Group 401(k) Savings Plan as of December 31, 1996 and 1995, and the related statements of changes in net assets available for plan benefits for the years then ended, and 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 as of and for the year ended December 31, 1996, which report is being filed with Form 10-K/A-1 as an amendment to the 1996 Annual Report on Form 10-K of Travelers Group Inc. /s/ KPMG PEAT MARWICK LLP New York, New York June 26, 1997 EX-99.07 3 EXHIBIT 99.07 Exhibit 99.07 Travelers Group 401(k) Savings Plan Financial Statements and Schedules December 31, 1996 and 1995 (With Independent Auditors' Report Thereon) Travelers Group 401(k) Savings Plan December 31, 1996 and 1995 Index
Page ----- Independent Auditors' Report 1 Financial Statements: Statements of Net Assets Available for Plan Benefits at December 31, 1996 and 1995 2 Statements of Changes in Net Assets Available for Plan Benefits for the years ended December 31, 1996 and 1995 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, 1996 32 Schedule of Assets Held for Investment Purposes Which Were Both Acquired and Disposed Within The Plan Year for the year ended December 31, 1996 34 Schedule to Form 5500: Item 27(d) Schedule of Reportable Transactions for the year ended December 31, 1996 35
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, 1996 and 1995, 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, 1996 and 1995, 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, 1996 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, 1996 taken as a whole. /s/ KPMG PEAT MARWICK LLP New York, New York June 23, 1997 1 Travelers Group 401(k) Savings Plan STATEMENTS OF NET ASSETS AVAILABLE FOR PLAN BENEFITS December 31, 1996 and 1995
1996 1995 ---------------- ---------------- Assets: Investments (notes 2 and 3) $ 2,867,380,324 $ 1,193,575,670 Cash 9,405,955 720,652 ---------------- ---------------- 2,876,786,279 1,194,296,322 ---------------- ---------------- Receivables: Contributions 18,838,337 21,930,809 Dividends and other 14,111,728 1,103,858 ---------------- ---------------- Total receivables 32,950,065 23,034,667 ---------------- ---------------- Total assets 2,909,736,344 1,217,330,989 ---------------- ---------------- Liabilities: Payable for investment purchases 2,536,913 1,537,443 Forfeiture credits due to employer 12,800,143 -- ESOP note payable 34,900,000 -- ---------------- ---------------- Total liabilities 50,237,056 1,537,443 ---------------- ---------------- Net assets available for plan benefits $ 2,859,499,288 $ 1,215,793,546 ---------------- ---------------- ---------------- ----------------
See accompanying notes to financial statements. 2 Travelers Group 401(k) Savings Plan STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS For the years ended December 31, 1996 and 1995
1996 1995 --------------- --------------- Investment activity: Dividends $79,270,418 $54,730,004 Interest 41,521,488 10,397,567 Net appreciation in fair value of investments 421,845,008 238,944,182 --------------- --------------- 542,636,914 304,071,753 Less: Trustee/administrative expenses (1,877,723) (2,207,972) --------------- --------------- Net investment income 540,759,191 301,863,781 --------------- --------------- Contributions: Participant 230,647,125 120,749,693 Employer (note 6) 32,714,489 24,143,255 --------------- --------------- Total contributions 263,361,614 144,892,948 --------------- --------------- Distributions to participants (193,469,103) (86,127,167) --------------- --------------- Increase in net assets available for plan benefits 610,651,702 360,629,562 --------------- --------------- Net assets available for plan benefits (note 1): Beginning of year 1,215,793,546 855,072,888 Transfer from Copeland Associates, Inc. 28,135,653 -- Transfer from TESIP 1,111,942,625 -- Transfer to United HealthCare Corp. (107,024,238) -- Transfer from Lehman Brothers Holdings, Inc. -- 91,096 --------------- --------------- End of year $2,859,499,288 $1,215,793,546 --------------- --------------- --------------- ---------------
See accompanying notes to financial statements. 3 TRAVELERS GROUP 401(k) SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1996 AND 1995 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 1, 1996) 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. ("Plan Administrator"). Effective as of January 1, 1996, the Travelers Savings, Investment and Stock Ownership Plan ("TESIP") and the 401(k) Retirement and Profit Sharing Plan of Copeland Associates, Inc. ("Copeland") were merged into the Plan. 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. Following the MetraHealth 401(k) Transfer, Travelers has no further obligation to provide any benefits to MetraHealth participants under the Plan. The TESIP merger resulted in 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. The Copeland merger resulted in a $28,135,653 increase in net assets available for plan benefits. During 1993, following the acquisition by the Company of the domestic retail brokerage and asset management businesses of Shearson Lehman Brothers Holdings, Inc. ("Shearson"), the net assets of the 401(k) savings plan sponsored by Shearson (the "Shearson Plan") that were attributable to the participants included in the acquisition were transferred to the Plan. During 1995, as prescribed by the acquisition document, additional transfers were made between Lehman Brothers Holdings, Inc. and the Plan. 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 $9,500 and $9,240 for 1996 and 1995, respectively) 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. Employee 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, 1996 and 1995, the matching employer contribution made by Travelers 4 TRAVELERS GROUP 401(k) SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS 1. PLAN DESCRIPTION (CONTINUED) 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, makes contributions on behalf of eligible employees who elect to have pre-tax contributions invested in the Travelers Common Stock Fund by having such contributions invested at a 5% discount from the fair value of such stock ("discount contributions"). On June 15, 1989, TESIP was amended to include an Employee Stock Ownership Plan (the "ESOP"). On June 21, 1989, the ESOP borrowed $200 million, at a variable interest rate, from Chase Manhattan Bank. The variable interest rate, which is adjusted monthly, was 5.01% as of December 31, 1996. Increasing semi-annual payments that began January 1, 1990 will fully amortize the debt by January 1, 1998. Principal payments made during 1996 totaled $32.4 million. The minimum principal payments to be made in 1997 and 1998 are $17.5 million and $17.4 million, respectively. The loan is guaranteed by Travelers Group Inc. On June 21, 1989, the trustee for the ESOP, Fleet Bank, purchased 3,755,869 shares of Travelers Corporation Series A Preference Stock for the ESOP for $200 million with the proceeds of the loan. On December 31, 1993, in conjunction with the merger of the Travelers Corporation into Travelers, the shares of Series A Preference Stock were converted into shares of Travelers Series C Convertible Preferred Stock, which have substantially the same rights and privileges as the shares so converted. The Series C Convertible Preferred Stock is pledged as collateral for the loan and is being released from collateral as the loan is repaid. The Company matches pre-tax contributions by employees as described above with the Series C Convertible Preferred Stock valued at the greater of its minimum value of $53.25 per share or the estimated fair value of the Series C Convertible Preferred Stock determined as described in note 2. Each share of Series C Convertible Preferred Stock is guaranteed by Travelers at a minimum value of $53.25 and is entitled to receive a cumulative annual divided of $4.53. Such dividends are reinvested in additional shares of Series C Convertible Preferred Stock at a cost equal to the value determined as described in note 2. These shares are then subject to the same guaranteed minimum value. The Series C Convertible Preferred Stock may be held only by the ESOP trustee. The Series C Preferred is convertible into one share of Travelers common stock for each $32.98 of stated value of Series C Preferred, subject to antidilution adjustments in certain circumstances. As of December 31, 1996, participants in the ESOP had an aggregate beneficial interest in Series C Convertible Preferred Stock totaling $220.2 million (2,705,589 shares based on the $81.40 per share estimated fair value at December 31, 1996). In addition, at December 31, 1996, the ESOP had an aggregate beneficial interest in Series C Convertible Preferred Stock totaling $30.9 million (380,023 shares based on the $81.40 per share estimated fair value at December 31, 1996), which was unallocated to participants in the ESOP. 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, will not be subject to forfeiture. 5 TRAVELERS GROUP 401(k) SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS 1. PLAN DESCRIPTION (CONTINUED) FUND TRANSFERS AND ALLOCATION OF CONTRIBUTIONS Participants may elect to divide their contributions among the funds included in the Plan in increments divisible by 5%. Matching employer contributions are invested in the Travelers Common Stock Fund and the ESOP. 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. Forfeitures of employer matching contributions to the Plan by participants that terminate employment prior to becoming fully vested are used to reduce future employer contributions to the Plan. Forfeitures not yet utilized to reduce contributions are reflected as a liability in the statements of net assets available for plan benefits. 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. 6 TRAVELERS GROUP 401(k) SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS 1. PLAN DESCRIPTION (CONTINUED) LOANS Subject to the Plan's provisions and 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. 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 (with the exception of certain participants), 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 Common Stock Fund, the Travelers Property Casualty Corp. Common Stock Fund ("TAP 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 the total of his/her account distributed 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 Common Stock Fund, the TAP 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. Distributions from the ESOP may be paid in either shares of Travelers common stock or cash at the discretion of the participant. Fractional shares and distributions from other funds are paid in cash. OTHER INFORMATION During 1996, the Smith Barney Income Return Fund and the Smith Barney High Income Fund were terminated, and upon termination, no more contributions were accepted to these funds. As of January 2, 1997, all balances in these funds were transferred to other funds in the Plan as elected by the participants or, where elections were not made, the funds were temporarily transferred to the Smith Barney Money Fund. During 1995, the assets of the Smith Barney Global Opportunities Fund were transferred to the Smith Barney Money Fund. 7 TRAVELERS GROUP 401(K) SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS 1. PLAN DESCRIPTION (CONTINUED) 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. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Accounting Method The financial statements of the Plan have been prepared on the accrual basis of accounting. (b) Investment Valuation and Income Recognition 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 Common Stock Fund, TAP 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 of December 31, 1996 and 1995, 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 VAN KAMPEN AMERICAN CAPITAL RESERVE FUND COMMON SENSE GOVERNMENT FUND COMMON SENSE GROWTH & INCOME FUND COMMON SENSE GROWTH FUND COMMON SENSE MONEY MARKET FUND 8 TRAVELERS GROUP 401(k) SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) The shares of the following registered investment companies are valued at the net asset value per share as of December 31, 1996 and 1995, as determined by Smith Barney Mutual Funds Management Inc.: SMITH BARNEY EQUITY INCOME 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 UTILITIES FUND SMITH BARNEY U.S. GOVERNMENT SECURITIES FUND SMITH BARNEY SPECIAL EQUITIES FUND SMITH BARNEY MANAGED GROWTH FUND The shares of the following registered investment companies are valued at the net asset value per share as of December 31, 1996, as determined by the Copeland Administrative Operations Inc.: AMERICAN ODYSSEY CORE EQUITY FUND AMERICAN ODYSSEY EMERGING FUND AMERICAN ODYSSEY INTERNATIONAL FUND AMERICAN ODYSSEY LONG-TERM BOND FUND AMERICAN ODYSSEY INTERMEDIATE-TERM BOND FUND AMERICAN ODYSSEY SHORT-TERM BOND FUND AMERICAN ODYSSEY IN-TIME INVESTING FUNDS The shares of the following registered investment companies are valued at the net asset value per share as of December 31, 1996, as determined by the State Street Bank & Trust Company: S&P 500 Flagship Fund Russell 2000 Fund Short-term money market investments, the Loan Fund and the Deferred Profit Sharing Plan are valued at cost plus earned interest which approximates fair value. Guaranteed investment contracts, which are included in the guaranteed income funds, are valued at contract value which approximates fair value. The ESOP Fund is carried at estimated fair value, which is the greater of the minimum value of $53.25 per share, or estimated fair value as determined from an appraisal prepared by an independent appraiser. The Universal Life Insurance is carried at contract value, which approximates fair value as reported to the Plan by TransAmerica Assurance Company. Participant loans receivable are valued at cost which approximates fair value. A significant concentration of the Plan's assets are invested in or managed by the Company (see note 5 regarding related party transactions). 9 TRAVELERS GROUP 401(k) SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Purchases and sales of securities are recorded on a trade date basis. Interest income is recorded on the accrual basis and is net of interest charges incurred on ESOP debt. Dividends are recorded on the ex-dividend date. Net appreciation in the fair value of investments includes the Plan's investments bought, sold and held during the year. (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) 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, 1996 and 1995, the Plan's investments (including investments bought, sold and held) appreciated in value by $421,845,008 and $238,944,182, respectively, as follows:
1996 1995 -------------- ------------- Stock funds $ 294,827,004 $ 169,831,278 Mutual funds 127,018,004 69,112,904 -------------- ------------- $ 421,845,008 $ 238,944,182 -------------- ------------- -------------- -------------
10 TRAVELERS GROUP 401(k) SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS 3. INVESTMENTS (CONTINUED) A summary of the investments in the Plan as of December 31, 1996 and 1995 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.
1996 INVESTMENT FUND COST VALUE - -------------------------------------------------------------- ------------- -------------- Deferred Profit Sharing Plan Invested $ 69,738 $ 69,738 ------------- -------------- Total 69,738 69,738 ------------- -------------- Travelers Common Stock Fund Invested 332,313,775 871,309,221 Funds not yet invested 1,363,307 1,363,307 ------------- -------------- Total 333,677,082 872,672,528 ------------- -------------- American Express Common Stock Fund Invested 45,233,192 92,516,434 Funds not yet invested 6,046 6,046 ------------- -------------- Total 45,239,238 92,522,480 ------------- -------------- Van Kampen American Capital Reserve Fund Invested 11,293,897 11,293,897 Funds not yet invested 72 72 ------------- -------------- Total 11,293,969 11,293,969 ------------- -------------- Van Kampen American Capital Enterprise Fund Invested 35,088,837 40,325,261 Funds not yet invested 781 781 ------------- -------------- Total 35,089,618 40,326,042 ------------- -------------- Van Kampen American Capital Government Securities Fund Invested 4,960,687 4,800,137 Funds not yet invested 31 31 ------------- -------------- Total 4,960,718 4,800,168 ------------- -------------- Van Kampen American Capital Comstock Fund Invested 12,065,019 11,538,961 Funds not yet invested 89 89 ------------- -------------- Total 12,065,108 11,539,050 ------------- --------------
11 TRAVELERS GROUP 401(k) SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS 3. INVESTMENTS (CONTINUED)
1996 INVESTMENT FUND COST VALUE - -------------------------------------------------------------- ------------- -------------- Van Kampen American Capital Emerging Growth Fund Invested $ 93,333,932 $ 115,878,893 Funds not yet invested 683 683 ------------- -------------- Total 93,334,615 115,879,576 ------------- -------------- Common Sense Money Market Fund Invested 2,424,328 2,424,328 Funds not yet invested 102 102 ------------- -------------- Total 2,424,430 2,424,430 ------------- -------------- Common Sense Government Fund Invested 897,874 848,658 Funds not yet invested 15 15 ------------- -------------- Total 897,889 848,673 ------------- -------------- Common Sense Growth & Income Fund Invested 3,261,771 3,460,659 Funds not yet invested 827 827 ------------- -------------- Total 3,262,598 3,461,486 ------------- -------------- Common Sense Growth Fund Invested 3,675,207 4,094,073 Funds not yet invested 41 41 ------------- -------------- Total 3,675,248 4,094,114 ------------- -------------- Smith Barney Equity Income Fund Invested 100,026,545 113,137,894 Funds not yet invested 108,145 108,145 ------------- -------------- Total 100,134,690 113,246,039 ------------- -------------- Smith Barney U.S. Government Securities Fund Invested 19,656,510 19,514,448 Funds not yet invested 28,106 28,106 ------------- -------------- Total 19,684,616 19,542,554 ------------- --------------
12 TRAVELERS GROUP 401(k) SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS 3. INVESTMENTS (CONTINUED)
1996 INVESTMENT FUND COST VALUE - -------------------------------------------------------------- ------------- -------------- Smith Barney Income Return Fund Funds not yet invested $ 500 $ 500 ------------- -------------- Total 500 500 ------------- -------------- Smith Barney Money Fund Invested 36,960,963 36,960,963 Funds not yet invested 782 782 ------------- -------------- Total 36,961,745 36,961,745 ------------- -------------- Smith Barney International Equity Fund Invested 108,446,719 123,570,164 Funds not yet invested 120,492 120,492 ------------- -------------- Total 108,567,211 123,690,656 ------------- -------------- Smith Barney High Income Fund Funds not yet invested 682 682 ------------- -------------- Total 682 682 ------------- -------------- Smith Barney Aggressive Growth Fund Invested 25,469,615 33,026,655 Funds not yet invested 807 807 ------------- -------------- Total 25,470,422 33,027,462 ------------- -------------- Smith Barney Appreciation Fund Invested 121,128,556 153,001,216 ------------- -------------- Total 121,128,556 153,001,216 ------------- -------------- Smith Barney Diversified Strategic Income Fund Invested 17,350,256 17,442,154 Funds not yet invested 846 846 ------------- -------------- Total 17,351,102 17,443,000 ------------- --------------
13 TRAVELERS GROUP 401(k) SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS 3. INVESTMENTS (CONTINUED)
1996 INVESTMENT FUND COST VALUE - -------------------------------------------------------------- ------------- -------------- Smith Barney Utilities Fund Invested $ 12,770,411 $ 13,271,144 Funds not yet invested 30,120 30,120 ------------- ------------- Total 12,800,531 13,301,264 ------------- ------------- Smith Barney Guaranteed Income Fund Invested 146,832,175 146,832,175 Funds not yet invested 160,998 160,998 ------------- ------------- Total 146,993,173 146,993,173 ------------- ------------- Smith Barney Special Equities Fund Invested 13,533,860 12,672,596 Funds not yet invested 770 770 ------------ ------------- Total 13,534,630 12,673,366 ------------- ------------- Smith Barney Managed Growth Fund Invested 20,348,755 22,293,836 Funds not yet invested 757 757 ------------- ------------- Total 20,349,512 22,294,593 ------------ ------------- Term Interest Guarantee Contracts Invested 9,842,206 9,842,206 ------------- ------------- Total 9,842,206 9,842,206 ------------- ------------- Universal Life Insurance Invested 42,020 42,020 ------------- ------------- Total 42,020 42,020 ------------- ------------- American Odyssey Core Equity Fund Invested 6,580,650 7,370,760 ------------- ------------- Total 6,580,650 7,370,760 ------------- ------------- American Odyssey Emerging Fund Invested 4,329,452 5,117,401 ------------- ------------- Total 4,329,452 5,117,401 ------------- -------------
14 TRAVELERS GROUP 401(k) SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS 3. INVESTMENTS (CONTINUED)
1996 INVESTMENT FUND COST VALUE - -------------------------------------------------------------- -------------- ---------------- American Odyssey International Fund Invested $ 4,143,706 $ 4,328,109 -------------- ---------------- Total 4,143,706 4,328,109 -------------- ---------------- American Odyssey Long-Term Bond Fund Invested 944,780 1,020,989 -------------- ---------------- Total 944,780 1,020,989 -------------- ---------------- American Odyssey Intermediate-Term Bond Fund Invested 572,788 588,449 -------------- ---------------- Total 572,788 588,449 -------------- ---------------- American Odyssey Short-Term Bond Fund Invested 336,584 333,958 -------------- ---------------- Total 336,584 333,958 -------------- ---------------- American Odyssey Core Equity Fund-In-Time Investing Funds Invested 529,017 522,823 -------------- ---------------- Total 529,017 522,823 -------------- ---------------- American Odyssey Short-Term Bond Fund-In-Time Investing Funds Invested 132,401 130,850 -------------- ---------------- Total 132,401 130,850 -------------- ---------------- TESIP Fixed Fund Invested 396,851,788 396,851,788 -------------- ---------------- Total 396,851,788 396,851,788 -------------- ---------------- Fixed IRA Fund Invested 61,959,660 61,959,660 -------------- ---------------- Total 61,959,660 61,959,660 -------------- ---------------- Russell 2000 Fund Invested 34,169,822 46,096,698 Funds not yet invested 182 182 -------------- ---------------- Total 34,170,004 46,096,880 -------------- ---------------- 15
TRAVELERS GROUP 401(k) SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS 3. INVESTMENTS (CONTINUED)
1996 INVESTMENT FUND COST VALUE - ----------------------------------------------------------------------------- ---------------- ---------------- S&P 500 Flagship Fund Invested $ 52,460,900 $ 79,731,555 Funds not yet invested 598 598 ---------------- ---------------- Total 52,461,498 79,732,153 ---------------- ---------------- ESOP Fund Invested 164,521,877 251,168,817 Funds not yet invested 7,579,000 7,579,000 ---------------- ---------------- Total 172,100,877 258,747,817 ---------------- ---------------- Stable Fund Invested 18,263,998 18,263,998 ---------------- ---------------- Total 18,263,998 18,263,998 ---------------- ---------------- TAP Common Stock Fund Invested 45,529,053 67,457,543 Funds not yet invested 1,176 1,176 ---------------- ---------------- Total 45,530,229 67,458,719 ---------------- ---------------- Loan Fund Invested 66,269,195 66,269,195 ---------------- ---------------- Total 66,269,195 66,269,195 ---------------- ---------------- 1996 Total Investments $ 2,044,028,474 $ 2,876,786,279 ---------------- ---------------- ---------------- ---------------- 1995 INVESTMENT FUNDS - --------------------- Travelers 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 ---------------- ----------------
16 TRAVELERS GROUP 401(k) SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS 3. INVESTMENTS (CONTINUED)
1995 INVESTMENT FUNDS COST VALUE - ----------------------------------------------------------------------------- ---------------- ---------------- 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 ---------------- ---------------- 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 & 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 ---------------- ----------------
17 TRAVELERS GROUP 401(k) SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS 3. INVESTMENTS (CONTINUED)
1995 INVESTMENT FUNDS COST VALUE - ----------------------------------------------------------------------------- ---------------- ---------------- 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 ---------------- ---------------- 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 ---------------- ----------------
18 TRAVELERS GROUP 401(k) SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS 3. INVESTMENTS (CONTINUED)
1995 INVESTMENT FUNDS COST VALUE - ----------------------------------------------------------------------------- ---------------- ---------------- Smith Barney Diversified Strategic Income Fund Invested $ 14,507,017 $ 14,289,961 Funds not yet invested 656 656 ---------------- ---------------- Total 14,507,673 14,290,617 ---------------- ---------------- Smith Barney Utilities Fund Invested 13,433,904 14,843,236 Funds not yet invested 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 ---------------- ---------------- 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 ---------------- ---------------- ---------------- ----------------
4. FEDERAL INCOME TAX CONSEQUENCES On November 1, 1996, the Internal Revenue Service issued a determination letter approving the continued exemption of the Plan, as amended and restated as of June 1, 1996, and its underlying trusts from federal income taxes under the Code. In the opinion of the Plan Administrator and the Plan's legal counsel, the Plan and its trusts are operated within the terms of the Plan and in compliance with the applicable rules of the Code. 19 TRAVELERS GROUP 401(k) SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS 4. FEDERAL INCOME TAX CONSEQUENCES (CONTINUED) Matching employer contributions, pre-tax contributions, 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 common stock, Travelers Property Casualty Corp. common stock and American Express common stock distributed in a qualifying lump-sum distribution is not taxable at the time of distribution. 5. RELATED PARTY TRANSACTIONS Certain Plan investments are shares of stock issued by Travelers or its subsidiaries. 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 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 Inc. ("SB Mutual") and, therefore, would qualify SB Mutual as a party-in-interest. Substantially all transactions of the Copeland portion of the Plan involved related parties as the manager of, transfer agent of and dividend disbursement agent for the American Odyssey Funds. Copeland is an indirect wholly owned subsidiary of Travelers. The Travelers Insurance Company, which issued group annuity contracts held by the Plan trustee and provides recordkeeping and other administrative services regarding the Plan, is also an indirect wholly owned subsidiary of Travelers. 6. NET ASSETS AVAILABLE FOR PLAN BENEFITS Net assets available for plan benefits as of December 31, 1996 and 1995 consist of the following:
1996 1995 ---------------- ---------------- Vested Benefits.......................................... $ 2,799,262,457 $ 1,195,529,373 Non-Vested Benefits...................................... 60,236,831 20,264,173 ---------------- ---------------- Total.................................................... $ 2,859,499,288 $ 1,215,793,546 ---------------- ---------------- ---------------- ----------------
Non-vested benefits are comprised of employer contributions for those participants whose initial date of employment is on or after January 1, 1992 and, therefore, have not rendered five years of service. As a result, these benefits are subject to forfeiture. Forfeitures will be used by Travelers to reduce any future employer contributions. For the years ended December 31, 1996 and 1995, employer contributions were reduced by approximately $5,899,000 and $1,706,000, respectively for forfeitures. 20 TRAVELERS GROUP 401(k) SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS 7. SUBSEQUENT EVENTS As of January 1, 1997, the employer contribution match of up to a maximum of $1,000 is no longer effective. In 1997, Travelers will contribute $350 to all full-time employees earning less than $40,000 per annum who are with the Company as of December 31, 1996 through December 31, 1997. A similar amount of $175 will be contributed to all part-time employees with the Company as of December 31, 1996 through December 31, 1997. Employees earning $40,000 per annum or greater will not be eligible to receive any employer matching contribution. 21 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 notes 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, 1996 -------------------------------------------------------------------- VAN KAMPEN VAN KAMPEN VAN KAMPEN TRAVELERS AMERICAN CAPITAL AMERICAN CAPITAL AMERICAN CAPITAL COMMON STOCK EMERGING GOVERNMENT COMSTOCK FUND GROWTH FUND SECURITIES FUND FUND ------------ ---------------- ---------------- ---------------- Assets - ------ Investments (notes 2 and 3)....................... $871,309,221 115,878,893 4,800,137 11,538,961 Cash.............................................. 1,363,307 683 31 89 Receivables: Contributions.................................... 17,548,498 18,780 115 3,947 Dividends and other.............................. 739,684 183 2 18 ------------ ---------------- ---------------- ---------------- Total receivables............................... 18,288,182 18,963 117 3,965 ------------ ---------------- ---------------- ---------------- Total assets................................... 890,960,710 115,898,539 4,800,285 11,543,015 ------------ ---------------- ---------------- ---------------- Liabilities - ----------- Forfeiture credits due to employer................ -- -- -- -- ESOP note payable................................. -- -- -- -- Payable for investment purchases.................. 2,312,421 -- -- -- ------------ ---------------- ---------------- ---------------- Net assets available for plan benefits............ $888,648,289 115,898,539 4,800,285 11,543,015 ------------ ---------------- ---------------- ---------------- ------------ ---------------- ---------------- ---------------- Investment activity: Dividends........................................ 8,458,995 5,006,897 330,011 1,917,568 Interest......................................... 35,216 2,444 192 291 Appreciation (depreciation) in fair value of investments..................................... 267,605,848 11,694,267 (222,974) 219,289 ------------ ---------------- ---------------- ---------------- 276,100,059 16,703,608 107,229 2,137,148 Less: Trustee/administrative expenses............. (451,621) (111,678) (11,359) (20,574) ------------ ---------------- ---------------- ---------------- Net investment income (loss)..................... 275,648,438 16,591,930 95,870 2,116,574 ------------ ---------------- ---------------- ---------------- Contributions: Participant...................................... 36,167,440 18,619,707 567,269 986,703 Employer (note 6)................................ 18,690,492 -- -- -- ------------ ---------------- ---------------- ---------------- Total contributions............................. 54,857,932 18,619,707 567,269 986,703 ------------ ---------------- ---------------- ---------------- Distributions to participants..................... (48,266,088) (7,591,396) (416,287) (669,842) Loan activity, net................................ (1,051,775) (454,588) (20,998) (40,783) Transfers from (to) other funds................... 23,516,525 3,367,062 (586,618) (396,158) ------------ ---------------- ---------------- ---------------- Net increase (decrease).......................... 304,705,032 30,532,715 (360,764) 1,996,494 ------------ ---------------- ---------------- ---------------- Net assets available for plan benefits: Beginning of year................................ 326,637,197 85,365,824 5,161,049 9,546,521 Transfers from (to) other plans (note 1)......... 257,306,060 -- -- -- ------------ ---------------- ---------------- ---------------- End of year...................................... $888,648,289 115,898,539 4,800,285 11,543,015 ------------ ---------------- ---------------- ---------------- ------------ ---------------- ---------------- ---------------- ---------------------------------------------------------- VAN KAMPEN COMMON COMMON COMMON AMERICAN CAPITAL SENSE SENSE SENSE RESERVE GROWTH GROWTH & INCOME GOVERNMENT FUND FUND FUND FUND ---------------- --------- --------------- ---------- Assets - ------ Investments (notes 2 and 3)....................... 11,293,897 4,094,073 3,460,659 848,658 Cash.............................................. 72 41 827 15 Receivables: Contributions.................................... 327 (675) -- (290) Dividends and other.............................. 8 1 1 -- ---------------- --------- --------------- ---------- Total receivables............................... 335 (674) 1 (290) ---------------- --------- --------------- ---------- Total assets................................... 11,294,304 4,093,440 3,461,487 848,383 ---------------- --------- --------------- ---------- Liabilities - ----------- Forfeiture credits due to employer................ -- -- -- -- ESOP note payable................................. -- -- -- -- Payable for investment purchases.................. -- -- -- -- ---------------- --------- --------------- ---------- Net assets available for plan benefits............ 11,294,304 4,093,440 3,461,487 848,383 ---------------- --------- --------------- ---------- ---------------- --------- --------------- ---------- Investment activity: Dividends........................................ 502,322 -- 41,430 60,340 Interest......................................... 473 218 124 51 Appreciation (depreciation) in fair value of investments..................................... -- 374,253 95,040 (43,309) ---------------- --------- --------------- ---------- 502,795 374,471 136,594 17,082 Less: Trustee/administrative expenses............. (22,771) (10,077) (8,952) (4,450) ---------------- --------- --------------- ---------- Net investment income (loss)..................... 480,024 364,394 127,642 12,632 ---------------- --------- --------------- ---------- Contributions: Participant...................................... 665,005 395,981 334,083 74,960 Employer (note 6)................................ -- -- -- -- ---------------- --------- --------------- ---------- Total contributions............................. 665,005 395,981 334,083 74,960 ---------------- --------- --------------- ---------- Distributions to participants..................... (849,439) (381,487) (161,536) (64,444) Loan activity, net................................ (89,005) (61,552) (52,313) (7,935) Transfers from (to) other funds................... (375,565) (152,162) (26,275) (49,971) ---------------- --------- --------------- ---------- Net increase (decrease).......................... (168,980) 165,174 221,601 (34,758) ---------------- --------- --------------- ---------- Net assets available for plan benefits: Beginning of year................................ 11,463,284 3,928,266 3,239,886 883,141 Transfers from (to) other plans (note 1)......... -- -- -- -- ---------------- --------- --------------- ---------- End of year...................................... 11,294,304 4,093,440 3,461,487 848,383 ---------------- --------- --------------- ---------- ---------------- --------- --------------- ----------
22 TRAVELERS GROUP 401(k) SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS 8. INVESTMENT ALLOCATION WITH FUND INFORMATION (CONTINUED)
DECEMBER 31, 1996 ----------------------------------------------------------------------------- COMMON SMITH BARNEY SMITH BARNEY VAN KAMPEN AMERICAN SENSE U.S. GOVERNMENT INCOME AMERICAN CAPITAL EXPRESS MONEY MARKET SECURITIES RETURN ENTERPRISE COMMON FUND FUND FUND FUND STOCK FUND ------------ --------------- ------------ ---------------- ---------- Assets - ------ Investments (notes 2 and 3)....................... $2,424,328 19,514,448 -- 40,325,261 92,516,434 Cash.............................................. 102 28,106 500 781 6,046 Receivables: Contributions.................................... (45) (354) -- 20,322 -- Dividends and other.............................. 1 546,928 3,604,057 82 2,044,659 ------------ --------------- ------------ ---------------- ---------- Total receivables............................... (44) 546,574 3,604,057 20,404 2,044,659 ------------ --------------- ------------ ---------------- ---------- Total assets................................... 2,424,386 20,089,128 3,604,557 40,346,446 94,567,139 ------------ --------------- ------------ ---------------- ---------- Liabilities - ----------- Forfeiture credits due to employer................ -- -- -- -- -- ESOP note payable................................. -- -- -- -- -- Payable for investment purchases.................. -- -- -- -- -- ----------- --------------- ------------ ---------------- ---------- Net assets available for plan benefits............ $2,424,386 20,089,128 3,604,557 40,346,446 94,567,139 ----------- --------------- ------------ ---------------- ---------- ----------- --------------- ------------ ---------------- ---------- Investment activity: Dividends........................................ 111,424 1,415,811 271,346 2,437,673 2,173,442 Interest......................................... 222 426 113 700 2,358 Appreciation (depreciation) in fair value of investments..................................... -- (529,098) (64,620) 4,670,407 27,221,156 ------------ --------------- ------------ ---------------- ---------- 111,646 887,139 206,839 7,108,780 29,396,956 Less: Trustee/administrative expenses............. (7,341) (24,540) (9,516) (35,622) (105,795) ------------ --------------- ------------ ---------------- ---------- Net investment income (loss)..................... 104,305 862,599 197,323 7,073,158 29,291,161 ----------- --------------- ------------ ---------------- ---------- Contributions: Participant...................................... 121,362 1,877,256 -- 5,593,630 -- Employer (note 6)................................ -- -- -- -- -- ------------ --------------- ------------ ---------------- ---------- Total contributions............................. 121,362 1,877,256 -- 5,593,630 -- ------------ --------------- ------------ ---------------- ---------- Distributions to participants..................... (172,303) (2,019,429) (207,379) (2,503,146) (6,916,999) Loan activity, net................................ (10,274) (38,951) (23,333) 15,127 (713,583) Transfers from (to) other funds................... (352,029) (1,518,873) (2,131,687) 2,516,439 (14,590,016) ------------ --------------- ------------ ---------------- ---------- Net increase (decrease).......................... (308,939) (837,398) (2,165,076) 12,695,208 7,070,563 ------------ --------------- ------------ ---------------- ---------- Net assets available for plan benefits: Beginning of year................................ 2,733,325 20,926,526 5,769,633 27,651,238 87,496,576 Transfers from (to) other plans (note 1)......... -- -- -- -- -- ------------ --------------- ------------ ---------------- ---------- End of year...................................... $2,424,386 20,089,128 3,604,557 40,346,446 94,567,139 ------------ --------------- ------------ ---------------- ---------- ------------ --------------- ------------ ---------------- ---------- ------------------------------------------- SMITH BARNEY SMITH BARNEY AGGRESSIVE SMITH BARNEY MONEY GROWTH APPRECIATION FUND FUND FUND ------------ ------------ ------------ Assets - ------ Investments (notes 2 and 3)....................... 36,960,963 33,026,655 153,001,216 Cash.............................................. 782 807 -- Receivables: Contributions.................................... 97,306 2,617 38,019 Dividends and other.............................. 84 56 628,000 ------------ ------------ ------------ Total receivables................................ 97,390 2,673 666,019 ------------ ------------ ------------ Total assets.................................... 37,059,135 33,030,135 153,667,235 ------------ ------------ ------------ Liabilities - ----------- Forfeiture credits due to employer................ -- -- -- ESOP note payable................................. -- -- -- Payable for investment purchases.................. -- -- -- ----------- ----------- ------------- Net assets available for plan benefits............ 37,059,135 33,030,135 153,667,235 ----------- ----------- ------------- ----------- ----------- ------------- Investment activity: Dividends........................................ 1,696,780 844,945 15,083,390 Interest......................................... 1,172 715 2,676 Appreciation (depreciation) in fair value of investments..................................... -- 141,351 10,769,409 ------------ ------------ ------------ 1,697,952 987,011 25,855,475 Less: Trustee/administrative expenses............. (37,035) (35,809) (133,592) ------------ ------------ ------------ Net investment income (loss)..................... 1,660,917 951,202 25,721,883 ----------- ----------- ------------- Contributions: Participant...................................... 4,083,746 4,094,778 14,193,571 Employer (note 6)................................ -- -- -- ------------ ------------ ------------ Total contributions............................. 4,083,746 4,094,778 14,193,571 ------------ ------------ ------------ Distributions to participants..................... (3,577,926) (2,347,107) (9,179,803) Loan activity, net................................ (145,104) (306,909) (1,030,387) Transfers from (to) other funds................... 3,653,749 (2,484,570) (7,298,885) ------------ ------------ ------------ Net increase (decrease).......................... 5,675,382 (92,606) 22,406,379 ------------ ------------ ------------ Net assets available for plan benefits: Beginning of year................................ 31,383,753 33,122,741 131,260,856 Transfers from (to) other plans (note 1)......... -- -- -- ------------ ------------ ------------ End of year...................................... 37,059,135 33,030,135 153,667,235 ------------ ------------ ------------ ------------ ------------ ------------
23 TRAVELERS GROUP 401(k) SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS 8. INVESTMENT ALLOCATION WITH FUND INFORMATION (CONTINUED)
DECEMBER 31, 1996 --------------------------------------------------------------------------- SMITH BARNEY SMITH BARNEY SMITH BARNEY INTERNATIONAL DIVERSIFIED SMITH BARNEY GUARANTEED EQUITY STRATEGIC HIGH SMITH BARNEY INCOME FUND INCOME FUND INCOME FUND UTILITIES FUND FUND ------------- ------------ ------------ -------------- ------------ Assets - ------ Investments (notes 2 and 3)....................... $123,570,164 17,442,154 -- 13,271,144 146,832,175 Cash.............................................. 120,492 846 682 30,120 160,998 Receivables: Contributions.................................... 17,537 277 -- 690 8 Dividends and other.............................. 54,598 25 4,598,892 406,322 1,476 ------------- ------------ ------------ -------------- ------------ Total receivables............................... 72,135 302 4,598,892 407,012 1,484 ------------- ------------ ------------ -------------- ------------ Total assets................................... 123,762,791 17,443,302 4,599,574 13,708,276 146,994,657 ------------- ------------ ------------ -------------- ------------ Liabilities - ----------- Forfeiture credits due to employer................ -- -- -- -- -- ESOP note payable................................. -- -- -- -- -- Payable for investment purchases.................. -- -- -- -- -- ------------- ------------ ------------ -------------- ------------ Net assets available for plan benefits............ $123,762,791 17,443,302 4,599,574 13,708,276 146,994,657 ------------- ------------ ------------ -------------- ------------ ------------- ------------ ------------ -------------- ------------ Investment activity: Dividends........................................ 391,248 1,392,575 748,818 1,126,628 -- Interest......................................... 2,001 435 214 410 10,277,198 Appreciation (depreciation) in fair value of investments..................................... 14,211,070 279,985 133,944 (781,740) -- ------------- ------------ ------------ -------------- ------------ 14,604,319 1,672,995 882,976 345,298 10,277,198 Less: Trustee/administrative expenses............. (108,933) (19,984) (11,894) (18,744) (528,595) ------------- ------------ ------------ -------------- ------------ Net investment income (loss)..................... 14,495,386 1,653,011 871,082 326,554 9,748,603 ------------- ------------ ------------ -------------- ------------ Contributions: Participant...................................... 18,520,479 2,590,957 -- 2,186,049 10,191,617 Employer (note 6)................................ -- -- -- -- -- ------------- ------------ ------------ -------------- ------------ Total contributions............................. 18,520,479 2,590,957 -- 2,186,049 10,191,617 ------------- ------------ ------------ -------------- ------------ Distributions to participants..................... (7,551,649) (1,407,760) (536,801) (952,954) (8,386,682) Loan activity, net................................ (322,629) (25,131) (129,240) (124,350) (838,047) Transfers from (to) other funds................... 3,851,104 341,746 (4,277,315) (2,577,182) (6,599,307) ------------- ------------ ------------ -------------- ------------ Net increase (decrease).......................... 28,992,691 3,152,823 (4,072,274) (1,141,883) 4,116,184 ------------- ------------ ------------ -------------- ------------ Net assets available for plan benefits: Beginning of year................................ 94,770,100 14,290,479 8,671,848 14,850,159 142,878,473 Transfers from (to) other plans (note 1)......... -- -- -- -- -- ------------- ------------ ------------ -------------- ------------ End of year...................................... $123,762,791 17,443,302 4,599,574 13,708,276 146,994,657 ------------- ------------ ------------ -------------- ------------ ------------- ------------ ------------ -------------- ------------ ------------------------------------------ SMITH BARNEY SMITH BARNEY SMITH BARNEY EQUITY SPECIAL MANAGED INCOME EQUITIES GROWTH FUND FUND FUND ------------ ------------ ------------ Assets - ------ Investments (notes 2 and 3)....................... 113,137,894 12,672,596 22,293,836 Cash.............................................. 108,145 770 757 Receivables: Contributions.................................... 21,814 16,568 3,502 Dividends and other.............................. 333,308 43 34 ------------ ------------ ------------ Total receivables............................... 355,122 16,611 3,536 ------------ ------------ ------------ Total assets................................... 113,601,161 12,689,977 22,298,129 ------------ ------------ ------------ Liabilities - ----------- Forfeiture credits due to employer................ -- -- -- ESOP note payable................................. -- -- -- Payable for investment purchases.................. -- -- -- ------------ ------------ ------------ Net assets available for plan benefits............ 113,601,161 12,689,977 22,298,129 ------------ ------------ ------------ ------------ ------------ ------------ Investment activity: Dividends........................................ 15,059,620 273,518 934,257 Interest......................................... 2,043 283 389 Appreciation (depreciation) in fair value of investments..................................... 1,378,843 (1,256,214) 1,755,064 ------------ ------------ ------------ 16,440,506 (982,413) 2,689,710 Less: Trustee/administrative expenses............. (102,036) (14,778) (20,052) ------------ ------------ ------------ Net investment income (loss)..................... 16,338,470 (997,191) 2,669,658 ------------ ------------ ------------ Contributions: Participant...................................... 8,546,997 3,206,465 3,262,947 Employer (note 6)................................ -- -- -- ------------ ------------ ------------ Total contributions............................. 8,546,997 3,206,465 3,262,947 ------------ ------------ ------------ Distributions to participants..................... (6,873,477) (497,096) (650,751) Loan activity, net................................ (280,788) 60,728 90,261 Transfers from (to) other funds................... (2,789,934) 5,541,901 6,876,484 ------------ ------------ ------------ Net increase (decrease).......................... 14,941,268 7,314,807 12,248,599 ------------ ------------ ------------ Net assets available for plan benefits: Beginning of year................................ 98,659,893 5,375,170 10,049,530 Transfers from (to) other plans (note 1)......... -- -- -- ------------ ------------ ------------ End of year...................................... 113,601,161 12,689,977 22,298,129 ------------ ------------ ------------ ------------ ------------ ------------
24 TRAVELERS GROUP 401(k) SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS 8. INVESTMENT ALLOCATION WITH FUND INFORMATION (CONTINUED)
DECEMBER 31, 1996 ----------------------------------------------------------------------- DEFERRED PROFIT TESIP FIXED S & P 500 RUSSELL SHARING FIXED IRA FLAGSHIP 2000 ESOP PLAN FUND FUND FUND FUND FUND -------- ----------- ---------- ---------- ---------- ----------- Assets - ------ Investments (notes 2 and 3)....................... $69,738 396,851,788 61,959,660 79,731,555 46,096,698 251,168,817 Cash.............................................. -- -- -- 598 182 7,579,000 Receivables: Contributions.................................... -- (176,285) -- 90,849 46,108 -- Dividends and other.............................. -- -- -- -- -- 47,347 -------- ----------- ---------- ---------- ---------- ----------- Total receivables............................... -- (176,285) -- 90,849 46,108 47,347 -------- ----------- ---------- ---------- ---------- ----------- Total assets................................... 69,738 396,675,503 61,959,660 79,823,002 46,142,988 258,795,164 -------- ----------- ---------- ---------- ---------- ----------- Liabilities - ----------- Forfeiture credits due to employer................ -- -- -- -- -- 12,800,143 ESOP note payable................................. -- -- -- -- -- 34,900,000 Payable for investment purchases.................. -- 58,343 -- 7,849 4,394 150,414 -------- ----------- ---------- ---------- ---------- ----------- Net assets available for plan benefits............ $69,738 396,617,160 61,959,660 79,815,153 46,138,594 210,944,607 -------- ----------- ---------- ---------- ---------- ----------- -------- ----------- ---------- ---------- ---------- ----------- Investment activity: Dividends........................................ 3,309 -- -- -- -- 17,593,491 Interest......................................... -- 27,351,646 4,233,052 -- -- (1,986,212) Appreciation (depreciation) in fair value of investments..................................... -- -- -- 14,224,959 6,410,241 40,252,473 -------- ----------- ---------- ---------- ---------- ----------- 3,309 27,351,646 4,233,052 14,224,959 6,410,241 55,859,752 Less: Trustee/administrative expenses............. -- -- -- -- -- -- -------- ----------- ---------- ---------- ---------- ----------- Net investment income (loss)..................... 3,309 27,351,646 4,233,052 14,224,959 6,410,241 55,859,752 -------- ----------- ---------- ---------- ---------- ----------- Contributions: Participant...................................... -- 4,777,710 -- 12,187,814 6,457,449 -- Employer (note 6)................................ -- -- -- -- -- 13,275,941 -------- ----------- ---------- ---------- ---------- ----------- Total contributions............................. -- 4,777,710 -- 12,187,814 6,457,449 13,275,941 -------- ----------- ---------- ---------- ---------- ----------- Distributions to participants..................... -- (42,571,721) (7,722,814) (5,441,036) (2,617,212) (14,637,596) Loan activity, net................................ -- (358,809) -- -- -- -- Transfers from (to) other funds................... -- (908,960) -- (756,492) (133,326) 398,179 -------- ----------- ---------- ---------- ---------- ----------- Net increase (decrease).......................... 3,309 (11,710,134) (3,489,762) 20,215,245 10,117,152 54,896,276 -------- ----------- ---------- ---------- ---------- ----------- Net assets available for plan benefits: Beginning of year................................ 66,429 -- -- -- -- -- Transfers from (to) other plans (note 1)......... -- 408,327,294 65,449,422 59,599,908 36,021,442 156,048,331 -------- ----------- ---------- ---------- ---------- ----------- End of year...................................... $69,738 396,617,160 61,959,660 79,815,153 46,138,594 210,944,607 -------- ----------- ---------- ---------- ---------- ----------- -------- ----------- ---------- ---------- ---------- ----------- ------------------------ TAP STABLE COMMON STOCK FUND FUND ---------- ------------ Assets - ------ Investments (notes 2 and 3)....................... 18,263,998 67,457,543 Cash.............................................. -- 1,176 Receivables: Contributions.................................... 178,394 -- Dividends and other.............................. -- -- ---------- ------------ Total receivables............................... 178,394 -- ---------- ------------ Total assets................................... 18,442,392 67,458,719 ---------- ------------ Liabilities - ----------- Forfeiture credits due to employer................ -- -- ESOP note payable................................. -- -- Payable for investment purchases.................. 54 3,438 ---------- ------------ Net assets available for plan benefits............ 18,442,338 67,455,281 ---------- ------------ ---------- ------------ Investment activity: Dividends........................................ -- 286,379 Interest......................................... 782,766 -- Appreciation (depreciation) in fair value of investments..................................... -- 22,107,866 ---------- ------------ 782,766 22,394,245 Less: Trustee/administrative expenses............. -- -- ---------- ------------ Net investment income (loss)..................... 782,766 22,394,245 ---------- ------------ Contributions: Participant...................................... 18,558,938 45,597,083 Employer (note 6)................................ -- -- ---------- ------------ Total contributions............................. 18,558,938 45,597,083 ---------- ------------ Distributions to participants..................... (417,988) (536,047) Loan activity, net................................ (793,061) -- Transfers from (to) other funds................... 311,683 -- ---------- ------------ Net increase (decrease).......................... 18,442,338 67,455,281 ---------- ------------ Net assets available for plan benefits: Beginning of year................................ -- -- Transfers from (to) other plans (note 1)......... -- -- ---------- ------------ End of year...................................... 18,442,338 67,455,281 ---------- ------------ ---------- ------------
25 TRAVELERS GROUP 401(k) SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS 8. INVESTMENT ALLOCATION WITH FUND INFORMATION (CONTINUED)
DECEMBER 31, 1996 ------------------------------------------------------------------------- TERM AMERICAN AMERICAN AMERICAN AMERICAN INTEREST UNIVERSAL ODYSSEY ODYSSEY ODYSSEY ODYSSEY GUARANTEE LIFE CORE EMERGING INTERNATIONAL LONG-TERM CONTRACTS INSURANCE EQUITY FUND FUND FUND BOND FUND ---------- --------- ----------- --------- ------------- --------- Assets - ------ Investments (notes 2 and 3)....................... $9,842,206 42,020 7,370,760 5,117,401 4,328,109 1,020,989 Cash.............................................. -- -- -- -- -- -- Receivables: Contributions.................................... 68,896 -- 66,816 74,740 43,956 8,949 Dividends and other.............................. -- -- 435,136 429,450 107,811 52,014 ---------- --------- ----------- --------- ------------- --------- Total receivables............................... 68,896 -- 501,952 504,190 151,767 60,963 ---------- --------- ----------- --------- ------------- --------- Total assets................................... 9,911,102 42,020 7,872,712 5,621,591 4,479,876 1,081,952 ---------- --------- ----------- --------- ------------- --------- Liabilities - ----------- Forfeiture credits due to employer................ -- -- -- -- -- -- ESOP note payable................................. -- -- -- -- -- -- Payable for investment purchases.................. -- -- -- -- -- -- ---------- --------- ----------- --------- ------------- --------- Net assets available for plan benefits............ $9,911,102 42,020 7,872,712 5,621,591 4,479,876 1,081,952 ---------- --------- ----------- --------- ------------- --------- ---------- --------- ----------- --------- ------------- --------- Investment activity: Dividends........................................ -- -- 437,418 429,450 107,811 52,014 Interest......................................... 807,669 2,203 -- -- -- -- Appreciation (depreciation) in fair value of investments..................................... -- 3,971 1,021,827 (536,264) 942,576 (64,273) ---------- --------- ----------- --------- ------------- --------- 807,669 6,174 1,459,245 (106,814) 1,050,387 (12,259) Less: Trustee/administrative expenses............ -- -- (7,832) (6,702) (4,457) (1,218) ---------- --------- ----------- --------- ------------- --------- Net investment income (loss).................... 807,669 6,174 1,451,413 (113,516) 1,045,930 (13,477) ---------- --------- ----------- --------- ------------- --------- Contributions: Participant...................................... 404,797 25,228 908,249 938,324 570,487 124,202 Employer (note 6)................................ -- -- -- -- -- -- ---------- --------- ----------- --------- ------------- --------- Total contributions............................. 404,797 25,228 908,249 938,324 570,487 124,202 ---------- --------- ----------- --------- ------------- --------- Distributions to participants..................... (1,068,651) (6,468) (476,213) (287,898) (222,123) (25,487) Loan activity, net................................ 28,279 -- -- -- -- -- Transfers from (to) other funds................... 175,894 -- 90,225 (132,028) (988) (173,733) ---------- --------- ----------- --------- ------------- --------- Net increase (decrease).......................... 347,988 24,934 1,973,674 404,882 1,393,306 (88,495) ---------- --------- ----------- --------- ------------- --------- Net assets available for plan benefits: Beginning of year................................ -- -- -- -- -- -- Transfers from (to) other plans (note 1)......... 9,563,114 17,086 5,899,038 5,216,709 3,086,570 1,170,447 ---------- --------- ----------- --------- ------------- --------- End of year...................................... $9,911,102 42,020 7,872,712 5,621,591 4,479,876 1,081,952 ---------- --------- ----------- --------- ------------- --------- ---------- --------- ----------- --------- ------------- --------- ------------------------------ AMERICAN AMERICAN ODYSSEY ODYSSEY INTERMEDIATE-TERM SHORT-TERM BOND FUND BOND FUND ----------------- ---------- Assets - ------ Investments (notes 2 and 3)....................... 588,449 333,958 Cash.............................................. -- -- Receivables: Contributions.................................... 3,361 968 Dividends and other.............................. 33,959 11,987 ------- ---------- Total receivables............................... 37,320 12,955 ------- ---------- Total assets................................... 625,769 346,913 ------- ---------- Liabilities - ----------- Forfeiture credits due to employer................ -- -- ESOP note payable................................. -- -- Payable for investment purchases.................. -- -- ------- ---------- Net assets available for plan benefits............ 625,769 346,913 ------- ---------- ------- ---------- Investment activity: Dividends........................................ 33,959 11,987 Interest......................................... -- -- Appreciation (depreciation) in fair value of investments..................................... (481) 20,326 ------- ---------- 33,478 32,313 ------- ---------- Less: Trustee/administrative expenses............ (705) (335) ------- ---------- Net investment income (loss).................... 32,773 31,978 ------- ---------- Contributions: Participant...................................... 67,696 10,953 Employer (note 6)................................ -- -- ------- ---------- Total contributions............................. 67,696 10,953 ------- ---------- Distributions to participants..................... (34,655) (41,004) Loan activity, net................................ -- -- Transfers from (to) other funds................... (13,026) 164,212 ------- ---------- Net increase (decrease).......................... 52,788 166,139 ------- ---------- Net assets available for plan benefits: Beginning of year................................ -- -- Transfers from (to) other plans (note 1)......... 572,981 180,774 ------- ---------- End of year...................................... 625,769 346,913 ------- ---------- ------- ----------
26 TRAVELERS GROUP 401(k) SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS 8. INVESTMENT ALLOCATION WITH FUND INFORMATION (CONTINUED)
DECEMBER 31, 1996 ----------------------------------------------------------------- IN-TIME INVESTING ------------------------ AMERICAN AMERICAN ODYSSEY ODYSSEY CORE EQUITY SHORT-TERM PREFERRED LOAN FUND BOND FUND STOCK FUND FUND TOTAL ----------- ---------- ---------- ---------- ------------- Assets - ------ Investments (notes 2 and 3)....................... $522,823 130,850 -- 66,269,195 2,867,380,324 Cash.............................................. -- -- -- -- 9,405,955 Receivables: Contributions.................................... 3,613 -- 639,009 -- 18,838,337 Dividends and other.............................. 30,865 4,697 -- -- 14,111,728 ----------- ---------- ---------- ---------- ------------- Total receivables............................... 34,478 4,697 639,009 -- 32,950,065 ----------- ---------- ---------- ---------- ------------- Total assets................................... 557,301 135,547 639,009 66,269,195 2,909,736,344 ----------- ---------- ---------- ---------- ------------- Liabilities - ----------- Forfeiture credits due to employer................ -- -- -- -- 12,800,143 ESOP note payable................................. -- -- -- -- 34,900,000 Payable for investment purchases.................. -- -- -- -- 2,536,913 ----------- ---------- ---------- ---------- ------------- Net assets available for plan benefits............ $557,301 135,547 639,009 66,269,195 2,859,499,288 ----------- ---------- ---------- ---------- ------------- ----------- ---------- ---------- ---------- ------------- Investment activity: Dividends........................................ 30,865 4,697 -- -- 79,270,418 Interest......................................... -- -- -- -- 41,521,488 Appreciation (depreciation) in fair value of investments..................................... 206,455 (396,639) -- -- 421,845,008 ----------- ---------- ---------- ---------- ------------- 237,320 (391,942) -- -- 542,636,914 Less: Trustee/administrative expenses............ (540) (186) -- -- (1,877,723) ----------- ---------- ---------- ---------- ------------- Net investment income (loss).................... 236,780 (392,128) -- -- 540,759,191 ----------- ---------- ---------- ---------- ------------- Contributions: Participant...................................... 44,690 9,416 -- 3,683,087 230,647,125 Employer (note 6)................................ -- -- 748,056 -- 32,714,489 ----------- ---------- ---------- ---------- ------------- Total contributions............................. 44,690 9,416 748,056 3,683,087 263,361,614 ----------- ---------- ---------- ---------- ------------- Distributions to participants..................... (1,226) (306) -- (5,178,877) (193,469,103) Loan activity, net................................ -- -- -- 6,725,150 -- Transfers from (to) other funds................... (118,548) 117,039 (109,047) (2,369,547) -- ----------- ---------- ---------- ---------- ------------- Net increase (decrease)......................... 161,696 (265,979) 639,009 2,859,813 610,651,702 ----------- ---------- ---------- ---------- ------------- Net assets available for plan benefits: Beginning of year................................ -- -- -- 39,611,649 1,215,793,546 Transfers from (to) other plans (note 1)......... 395,605 401,526 -- 23,797,733 1,033,054,040 ----------- ---------- ---------- ---------- ------------- End of year...................................... $557,301 135,547 639,009 66,269,195 2,859,499,288 ----------- ---------- ---------- ---------- ------------- ----------- ---------- ---------- ---------- -------------
27 Travelers Group 401(k) Savings Plan Notes to Financial Statements 8. INVESTMENT ALLOCATION WITH FUND INFORMATION (CONTINUED)
DECEMBER 31, 1995 ------------------------------------------------------- VAN KAMPEN VAN KAMPEN AMERICAN TRAVELERS AMERICAN CAPITAL CAPITAL COMMON EMERGING GOVERNMENT STOCK GROWTH LOAN SECURITIES FUND FUND FUND FUND ----------- ---------------- ---------- ------------ Assets - ------ Investments (notes 2 and 3) $304,814,224 85,204,531 39,611,649 5,150,591 Cash 655,686 3,639 -- 1,250 Receivables: Contributions 21,745,185 7,484 -- -- Dividends and other 15,256 150,170 -- 9,208 ------------ ---------- ---------- --------- Total receivables 21,760,441 157,654 -- 9,208 ------------ ---------- ---------- --------- Total assets 327,230,351 85,365,824 39,611,649 5,161,049 ------------ ---------- ---------- --------- Liabilities - ----------- Payable for investment purchases 593,154 -- -- -- ------------ ---------- ---------- --------- Net assets available for plan benefits $326,637,197 85,365,824 39,611,649 5,161,049 ------------ ---------- ---------- --------- ------------ ---------- ---------- --------- Investment activity: Dividends 3,759,762 8,031,351 -- 323,020 Interest 49,681 33,751 -- 213 Appreciation (depreciation) in fair value of investments 142,257,189 16,326,189 -- 413,114 ------------ ---------- ---------- --------- 146,066,632 24,391,291 -- 736,347 Less: Trustee/administrative expenses (407,288) (101,595) -- (13,086) ------------ ---------- ---------- --------- Net investment income (loss) 145,659,344 24,289,696 -- 723,261 ------------ ---------- ---------- --------- Contributions: Participants 21,097,949 17,970,656 2,720,694 660,250 Employer (note 6) 24,143,255 -- -- -- ------------ ---------- ---------- --------- Total contributions 45,241,204 17,970,656 2,720,694 660,250 ------------ ---------- ---------- --------- Distributions to participants (20,987,299) (4,792,336) (1,963,555) (496,251) Loan activity, net (632,282) (170,571) 7,578,624 (18,399) Transfers from (to) other funds 12,118,427 3,269,549 -- (154,653) ------------ ---------- ---------- --------- Net increase (decrease) 181,399,394 40,566,994 8,335,763 714,208 ------------ ---------- ---------- --------- Net assets available for plan benefits: Beginning of year 145,237,803 44,798,830 31,275,886 4,446,841 Transfers from Lehman Brothers Holdings, Inc. (note 1) -- -- -- -- ------------ ---------- ---------- --------- End of year $326,637,197 85,365,824 39,611,649 5,161,049 ------------ ---------- ---------- --------- ------------ ---------- ---------- --------- VAN KAMPEN VAN KAMPEN COMMON AMERICAN AMERICAN COMMON SENSE CAPITAL CAPITAL SENSE GROWTH & COMSTOCK RESERVE GROWTH INCOME FUND FUND FUND FUND ---------- ---------- ---------- ----------- Assets - ------ Investments (notes 2 and 3) 9,525,110 11,496,598 3,927,164 3,233,904 Cash 1,967 2,563 1,101 946 Receivables: Contributions -- -- -- -- Dividends and other 19,444 41 554,505 338,874 --------- ---------- --------- --------- Total receivables 19,444 41 554,505 338,874 --------- ---------- --------- --------- Total assets 9,546,521 11,499,202 4,482,770 3,573,724 --------- ---------- --------- --------- Liabilities - ----------- Payable for investment purchases -- 35,918 554,504 333,838 --------- ---------- --------- --------- Net assets available for plan benefits 9,546,521 11,463,284 3,928,266 3,239,886 --------- ---------- --------- --------- --------- ---------- --------- --------- Investment activity: Dividends 1,310,925 576,763 554,503 367,987 Interest 278 467 133 80 Appreciation (depreciation) in fair value of investments 1,302,364 -- 392,298 465,757 --------- --------- --------- ---------- 2,613,567 577,230 946,934 833,824 Less: Trustee/administrative expenses (21,074) (29,296) (9,694) (8,189) --------- --------- --------- ---------- Net investment income (loss) 2,592,493 547,934 937,240 825,635 --------- --------- --------- ---------- Contributions: Participants 974,792 792,665 551,049 436,336 Employer (note 6) -- -- -- -- --------- --------- --------- ---------- Total contributions 974,792 792,665 551,049 436,336 --------- --------- --------- ---------- Distributions to participants (816,520) (1,632,224) (279,050) (111,869) Loan activity, net (38,130) (49,273) (45,850) (27,024) Transfers from (to) other funds (628,337) (37,705) (69,794) (81,717) --------- --------- --------- ---------- Net increase (decrease) 2,084,298 (378,603) 1,093,595 1,041,361 --------- --------- --------- ---------- Net assets available for plan benefits: Beginning of year 7,462,223 11,841,887 2,834,671 2,198,525 Transfers from Lehman Brothers Holdings, Inc. (note 1) -- -- -- -- --------- ---------- --------- ---------- End of year 9,546,521 11,463,284 3,928,266 3,239,886 --------- ---------- --------- ---------- --------- ---------- --------- ----------
28 Travelers Group 401(k) Savings Plan Notes to Financial Statements 8. INVESTMENT ALLOCATION WITH FUND INFORMATION (CONTINUED)
DECEMBER 31, 1995 -------------------------- COMMON COMMON SENSE SENSE GOVERNMENT MONEY MARKET FUND FUND ----------- ------------- Assets - ------ Investments (notes 2 and 3) $ 887,600 2,732,189 Cash 575 1,133 Receivables: Contributions -- -- Dividends and other 4,667 10,331 ----------- ------------- Total receivables 4,667 10,331 ----------- ------------- Total assets 892,842 2,743,653 ----------- ------------- Liabilities - ----------- Payable for investment purchases 9,701 10,328 ----------- ------------- Net assets available for plan benefits $ 883,141 2,733,325 ----------- ------------- ----------- ------------- Investment activity: Dividends 54,894 132,333 Interest 25 142 Appreciation (depreciation) in fair value of investments 72,961 -- ----------- ------------- 127,880 132,475 Less: Trustee/administrative expenses (4,262) (8,609) ----------- ------------- Net investment income (loss) 123,618 123,866 ----------- ------------- Contributions: Participants 119,531 (5,795) Employer (note 6) -- -- ----------- ------------- Total contributions 119,531 (5,795) ----------- ------------- Distributions to participants (66,786) (250,314) Loan activity, net 1,293 (32,918) Transfers from (to) other funds (50,887) 62,217 ----------- ------------- Net increase (decrease) 126,769 (102,944) ----------- ------------- Net assets available for plan benefits: Beginning of year 756,372 2,836,269 Transfer from Lehman Brothers Holdings, Inc. (note 1) -- -- ----------- ------------- End of year $ 883,141 2,733,325 ----------- ------------- ----------- ------------- SMITH BARNEY SMITH BARNEY SMITH BARNEY VAN KAMPEN AMERICAN INCOME AND U.S. GOVERNMENT INCOME AMERICAN CAPITAL EXPRESS GROWTH SECURITIES RETURN ENTERPRISE COMMON FUND FUND FUND FUND STOCK FUND ------------ --------------- ------------- ---------------- ----------- Assets - ------ Investments (notes 2 and 3) 98,655,385 20,923,181 5,768,707 27,640,186 87,464,433 Cash 810 900 883 797 32,060 Receivables: Contributions 3,318 2,392 -- 10,253 -- Dividends and other 380 53 43 2 83 ------------ --------------- ------------- ---------------- ----------- Total receivables 3,698 2,445 43 10,255 83 ------------ --------------- ------------- ---------------- ----------- Total assets 98,659,893 20,926,526 5,769,633 27,651,238 87,496,576 ------------ --------------- ------------- ---------------- ----------- Liabilities - ----------- Payable for investment purchases -- -- -- -- -- ------------ --------------- ------------- ---------------- ----------- Net assets available for plan benefits 98,659,893 20,926,526 5,769,633 27,651,238 87,496,576 ------------ --------------- ------------- ---------------- ----------- ------------ --------------- ------------- ---------------- ----------- Investment activity: Dividends 10,299,575 1,469,275 356,591 3,873,606 1,539,620 Interest -- -- 105 4,610 -- Appreciation (depreciation) in fair value of 16,214,153 1,682,526 197,389 1,914,256 27,652,262 investments ------------ --------------- ------------- ---------------- ----------- 26,513,728 3,151,801 554,085 5,792,472 29,191,882 Less: Trustee/administrative expenses (132,430) (33,679) (14,655) (33,044) (145,003) ------------ --------------- ------------- ---------------- ----------- Net investment income (loss) 26,381,298 3,118,122 539,430 5,759,428 29,046,879 ------------ --------------- ------------- ---------------- ----------- Contributions: Participants 9,063,827 2,236,395 3,231 4,916,582 (1,105) Employer (note 6) -- -- -- -- -- ------------ --------------- ------------- ---------------- ----------- Total contributions 9,063,827 2,236,395 3,231 4,916,582 (1,105) ------------ --------------- ------------- ---------------- ----------- Distributions to participants (8,190,356) (1,631,376) (779,812) (972,538) (7,101,193) Loan activity, net (408,954) (172,184) (75,131) (28,325) (1,290,302) Transfers from (to) other funds (8,323,205) (1,244,463) (1,012,589) 4,061,419 (6,195,379) ------------ --------------- ------------- ---------------- ----------- Net increase (decrease) 18,522,610 2,306,494 (1,324,871) 13,736,566 14,458,900 ------------ --------------- ------------- ---------------- ----------- Net assets available for plan benefits: Beginning of year 80,121,843 18,620,032 7,079,533 13,914,672 73,035,522 Transfer from Lehman Brothers Holdings, Inc. 15,440 -- 14,971 -- 2,154 (note 1) ------------ --------------- ------------- ---------------- ----------- End of year 98,659,893 20,926,526 5,769,633 27,651,238 87,496,576 ------------ --------------- ------------- ---------------- ----------- ------------ --------------- ------------- ---------------- -----------
29 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 AGGRESSIVE SMITH BARNEY GLOBAL MONEY GROWTH APPRECIATION OPPORTUNITIES FUND FUND FUND FUND ------------- ------------ ------------- -------------- Assets - ------ Investments (notes 2 and 3) $31,271,665 33,112,710 131,250,468 -- Cash 887 839 815 -- Receivables: Contributions 110,928 9,189 9,314 -- Dividends and other 273 3 259 -- ------------- ------------- ------------- ------------- Total receivables 111,201 9,192 9,573 -- ------------- ------------- ------------- ------------- Total assets 31,383,753 33,122,741 131,260,856 -- ------------- ------------- ------------- ------------- Liabilities - ----------- Payable for investment purchases -- -- -- -- ------------- ------------- ------------- ------------- Net assets available for plan benefits $31,383,753 33,122,741 131,260,856 -- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- Investment activity: Dividends 1,726,595 2,667,050 12,611,115 -- Interest -- 3,077 6,714 (910) Appreciation (depreciation) in fair value of investments -- 5,200,165 18,271,524 (290,203) ------------- ------------- ------------- ------------- 1,726,595 7,870,292 30,889,353 (291,113) Less: Trustee/administrative expenses (50,469) (40,436) (171,708) (8,654) ------------- ------------- ------------- ------------- Net investment income (loss) 1,676,126 7,829,856 30,717,645 (299,767) ------------- ------------- ------------- ------------- Contributions: Participants 4,699,229 450,836 14,887,568 -- Employer (note 6) -- -- -- -- ------------- ------------- ------------- ------------- Total contributions 4,699,229 450,836 14,887,568 -- ------------- ------------- ------------- ------------- Distributions to participants (5,167,140) (1,763,463) (8,151,684) (164,405) Loan activity, net (155,251) (824,973) (1,697,306) (142,469) Transfers from (to) other funds 477,280 4,621,116 (6,171,907) (9,990,829) ------------- ------------- ------------- ------------- Net increase (decrease) 1,530,244 10,313,372 29,584,316 (10,597,470) ------------- ------------- ------------- ------------- Net assets available for plan benefits: Beginning of year 29,849,918 22,798,109 101,655,148 10,597,470 Transfer from Lehman Brothers Holdings, Inc. (note 1) 3,591 11,260 21,392 -- ------------- ------------- ------------- ------------- End of year $31,383,753 33,122,741 131,260,856 -- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- SMITH BARNEY SMITH BARNEY INTERNATIONAL DIVERSIFIED EQUITY STRATEGIC FUND INCOME FUND ------------ ------------ Assets - ------ Investments (notes 2 and 3) 94,757,657 14,289,961 Cash 773 656 Receivables: Contributions 11,664 (203) Dividends and other 6 65 ------------ ------------ Total receivables 11,670 (138) ------------ ------------ Total assets 94,770,100 14,290,479 ------------ ------------ Liabilities - ----------- Payable for investment purchases -- -- ------------ ------------ Net assets available for plan benefits 94,770,100 14,290,479 ------------ ------------ ------------ ------------ Investment activity: Dividends 1,662,094 1,236,016 Interest 1,500 2,470 Appreciation (depreciation) in fair value of investments 1,968,376 803,879 ------------ ------------ 3,631,970 2,042,365 Less: Trustee/administrative expenses (125,183) (24,967) ------------ ------------ Net investment income (loss) 3,506,787 2,017,398 ------------ ------------ Contributions: Participants 20,700,361 3,268,105 Employer (note 6) -- -- ------------ ------------ Total contributions 20,700,361 3,268,105 ------------ ------------ Distributions to participants (5,848,921) (1,360,335) Loan activity, net (30,920) (66,661) Transfers from (to) other funds 5,063,305 (1,538,957) ------------ ------------ Net increase (decrease) 23,390,612 2,319,550 ------------ ------------ Net assets available for plan benefits: Beginning of year 71,377,296 11,970,929 Transfer from Lehman Brothers Holdings, Inc. (note 1) 2,192 -- ------------ ------------ End of year 94,770,100 14,290,479 ------------ ------------ ------------ ------------
30 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 HIGH SMITH BARNEY GUARANTEED SPECIAL INCOME UTILITIES INCOME EQUITIES FUND FUND FUND FUND ------------- ------------- ------------- ------------- Assets - ------ Investments (notes 2 and 3) $ 8,670,973 14,843,236 142,873,227 5,364,534 Cash 816 987 9,071 875 Receivables: Contributions -- 5,904 (3,925) 9,759 Dividends and other 59 32 100 2 ------------- ------------- ------------- ------------- Total receivables 59 5,936 (3,825) 9,761 ------------- ------------- ------------- ------------- Total assets 8,671,848 14,850,159 142,878,473 5,375,170 ------------- ------------- ------------- ------------- Liabilities - ----------- Payable for investment purchases -- -- -- -- ------------- ------------- ------------- ------------- Net assets available for plan benefits $ 8,671,848 14,850,159 142,878,473 5,375,170 ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- Investment activity: Dividends 995,877 970,311 -- 87,561 Interest 74 23,807 10,270,443 239 Appreciation (depreciation) in fair value of investments 641,628 2,845,859 -- 390,239 ------------- ------------- ------------- ------------- 1,637,579 3,839,977 10,270,443 478,039 Less: Trustee/administrative expenses (18,758) (24,172) (779,237) (951) ------------- ------------- ------------- ------------- Net investment income (loss) 1,618,821 3,815,805 9,491,206 477,088 ------------- ------------- ------------- ------------- Contributions: Participants -- 2,612,990 12,033,323 194,205 Employer (note 6) -- -- -- -- ------------- ------------- ------------- ------------- Total contributions -- 2,612,990 12,033,323 194,205 ------------- ------------- ------------- ------------- Distributions to participants (1,114,211) (433,507) (12,000,987) (9,455) Loan activity, net (256,086) (224,041) (1,246,863) 10,893 Transfer from (to) other funds (1,364,466) (1,464,025) (5,387,736) 4,702,439 ------------- ------------- ------------- ------------- Net increase (decrease) (1,115,942) 4,307,222 2,888,943 5,375,170 ------------- ------------- ------------- ------------- Net assets available for plan benefits: Beginning of year 9,784,581 10,526,050 139,989,530 -- Transfers from Lehman Brothers Holdings, Inc. (note 1) 3,209 16,887 -- -- ------------- ------------- ------------- ------------- End of year $ 8,671,848 14,850,159 142,878,473 5,375,170 ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- SMITH BARNEY DEFERRED MANAGED PROFIT GROWTH SHARING FUND PLAN TOTAL ------------- ----------- ------------ Assets - ------ Investments (notes 2 and 3) 10,039,358 66,429 1,193,575,670 Cash 623 -- 720,652 Receivables: Contributions 9,547 -- 21,930,809 Dividends and other 2 -- 1,103,858 ------------- ----------- ------------- Total receivables 9,549 -- 23,034,667 ------------- ----------- ------------- Total assets 10,049,530 66,429 1,217,330,989 ------------- ----------- ------------- Liabilities - ----------- Payable for investment purchases -- -- 1,537,443 ------------- ----------- ------------- Net assets available for plan benefits 10,049,530 66,429 1,215,793,546 ------------- ----------- ------------- ------------- ----------- ------------- Investment activity: Dividends 119,699 3,481 54,730,004 Interest 668 -- 10,397,567 Appreciation (depreciation) in fair value of investments 222,257 -- 238,944,182 ------------- ----------- ------------- 342,624 3,481 304,071,753 Less: Trustee/administrative expenses (1,533) -- (2,207,972) ------------- ----------- ------------- Net investment income (loss) 341,091 3,481 301,863,781 ------------- ----------- ------------- Contributions: Participants 366,019 -- 120,749,693 Employer (note 6) -- -- 24,143,255 ------------- ----------- ------------- Total contributions 366,019 -- 144,892,948 ------------- ----------- ------------- Distributions to participants (41,580) -- (86,127,167) Loan activity, net 43,103 -- -- Transfer from (to) other funds 9,340,897 -- -- ------------- ----------- ------------- Net increase (decrease) 10,049,530 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. (note 1) -- -- 91,096 ------------- ----------- ------------- End of year 10,049,530 66,429 1,215,793,546 ------------- ----------- ------------- ------------- ----------- -------------
31 Travelers Group 401(k) Savings Plan Schedule to Form 5500: Item 27(a) Schedule of Assets Held for Investment Purposes December 31, 1996
Number of Shares Cost Value** --------- ---- ----- Short-Term Funds: - ---------------- Travelers Group Liquid Reserve Fund 9,405,955 $ 9,405,955 $ 9,405,955 Deferred Profit Sharing Plan 69,738 69,738 69,738 ------------ ------------ 9,475,693 9,475,693 ------------ ------------ Stock Funds: - ----------- Travelers Group Inc. Common Stock Fund* 19,202,407 332,313,775 871,309,221 Travelers Group Inc. Series C Preferred Stock* 3,085,612 164,521,877 251,168,817 Travelers Property Casualty Corp. Common Stock Fund* 1,906,927 45,529,053 67,457,543 American Express Common Stock Fund 1,637,459 45,233,192 92,516,434 ------------ ------------- 587,597,897 1,282,452,015 ------------ ------------- Mutual Funds: - ------------ Van Kampen American Capital Reserve Fund 11,293,897 11,293,897 11,293,897 Van Kampen American Capital Enterprise Fund 2,667,015 35,088,837 40,325,261 Van Kampen American Capital Government Securities Fund 475,261 4,960,687 4,800,137 Van Kampen American Capital Comstock Fund 780,715 12,065,019 11,538,961 Van Kampen American Capital Emerging Growth Fund 3,373,476 93,333,932 115,878,893 Common Sense Money Market Fund 2,424,328 2,424,328 2,424,328 Common Sense Government Fund 81,996 897,874 848,658 Common Sense Growth & Income Fund 205,747 3,261,771 3,460,659 Common Sense Growth Fund 239,981 3,675,207 4,094,073 Smith Barney Equity Income Fund* 7,634,136 100,026,545 113,137,894 Smith Barney U.S. Government Securities Fund* 1,471,678 19,656,510 19,514,448 Smith Barney Money Fund* 36,960,963 36,960,963 36,960,963 Smith Barney International Equity Fund* 6,389,357 108,446,719 123,570,164 Smith Barney Aggressive Growth Fund* 1,030,794 25,469,615 33,026,655 Smith Barney Appreciation Fund* 11,877,704 121,128,556 153,001,216 Smith Barney Diversified Strategic Income Fund* 2,158,682 17,350,256 17,442,154 Smith Barney Utilities Fund* 885,924 12,770,411 13,271,144 Smith Barney Special Equities Fund* 448,429 13,533,860 12,672,596 Smith Barney Managed Growth Fund* 1,660,003 20,348,755 22,293,836 American Odyssey Core Equity Fund* 503,931 6,580,650 7,370,760 American Odyssey Emerging Fund* 413,327 4,329,452 5,117,401 American Odyssey Equity Fund* 294,159 4,143,706 4,328,109 American Odyssey Long-Term Bond Fund* 108,790 944,780 1,020,989 American Odyssey Intermediate-Term Bond Fund* 61,020 572,788 588,449 American Odyssey Short-Term Bond Fund* 33,784 336,584 333,958 State Street Global Advisors Flagship Fund 668,344 52,460,900 79,731,555 State Street Global Advisors Russell 2000 Fund 2,395,309 34,169,822 46,096,698 ----------- ----------- 746,232,424 884,143,856 ----------- -----------
32 Travelers Group 401(k) Savings Plan Schedule to Form 5500: Item 27(a) Schedule of Assets Held for Investment Purposes (Continued) December 31, 1996
Number of Shares Cost Value** --------- ---- ----- Guaranteed Investment Contracts ("GIC")--Smith Barney***: - -------------------------------------------------------- Aetna Life Insurance GIC #14355 3,411,940 $ 3,411,940 $ 3,411,940 John Hancock Contract GIC #7129 4,153,339 4,153,339 4,153,339 Metropolitan Life Insurance-Annuity Term Life GIC #13561 3,992,896 3,992,896 3,992,896 Principal Financial Corporate Contract #4-09271-01 9,170,218 9,170,218 9,170,218 Principal Financial Corporate Contract #49271-2 2,852,203 2,852,203 2,852,203 Prudential Insurance Company GIC #7658-211 6,706,351 6,706,351 6,706,351 Prudential Insurance Company GIC #7658-212 9,883,380 9,883,380 9,883,380 Travelers Insurance Company #GR-16384* 70,763,882 70,763,882 70,763,882 Travelers Insurance Company #GR-16409* 14,584,008 14,584,008 14,584,008 Travelers Insurance Company #GR-16409A* 21,313,958 21,313,958 21,313,958 Term Interest Guaranteed Annuity Contracts: - ------------------------------------------ Group Annuity Contract #GR-16171* 2,049,951 2,049,951 2,049,951 Group Annuity Contract #GR-16331* 1,773,398 1,773,398 1,773,398 Group Annuity Contract #GR-16424* 2,865,859 2,865,859 2,865,859 Group Annuity Contract #GR-16487* 3,152,998 3,152,998 3,152,998 Travelers Insurance Company Annuity Contracts* 477,075,446 477,075,446 477,075,446 -------------- -------------- 633,749,827 633,749,827 -------------- -------------- Universal Life Insurance: - ------------------------ Universal Life Insurance 42,020 42,020 42,020 In-Time Investing Fund: - ---------------------- American Odyssey Core Equity Fund* 35,745 529,017 522,823 American Odyssey Short-Term Bond Fund* 13,237 132,401 130,850 -------------- -------------- 661,418 653,673 -------------- ------------- Loan Fund**** 66,269,195 66,269,195 -------------- -------------- Total $2,044,028,474 $2,876,786,279 -------------- -------------- -------------- --------------
* Parties-in-interest exempt under the ERISA Regulation. See note 5 of notes to financial statements. ** See note 2 of notes to financial statements for a discussion of investment valuation. *** The interest rates of the guaranteed investment contracts range from 6.2% to 9.6%. The blended rate of return earned for 1996 was 6.7% prior to fund expenses. **** The interest rates on loans to participants equal 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. 33 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, 1996 There were no assets held for investment purposes which were both acquired and disposed within the Plan year. 34 Travelers Group 401(k) Savings Plan Schedule to Form 5500: Item 27(d) Schedule of Reportable Transactions For the year ended December 31, 1996 The following series of transactions exceeded 5% of the Plan's net assets available for plan benefits.
EXPENSE NO. OF PURCHASE SELLING WITH COST NET DESCRIPTION TRANSACTIONS PRICE PRICE TRADE OF ASSET GAIN(LOSS) - ----------------------------------------- ------------- ------------- ------------ ----------- ------------ ------------ Liquid Reserve Fund 1,865 $124,872,321 -- -- 124,872,321 -- Liquid Reserve Fund 1,566 $ -- 136,661,578 -- 136,661,578 -- Travelers Group Inc. Common Stock Fund 325 $108,480,380 -- 78,026 108,558,406 -- Travelers Group Inc. Common Stock Fund 290 $ -- 47,712,104 41,967 21,451,040 26,219,097
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