SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 11-K
REPORT PURSUANT TO
SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 (FEE REQUIRED)
For the Calendar Year Ended December 31, 2001
TANDY EMPLOYEES
SUPPLEMENTAL STOCK PROGRAM
(full title of Program)
RADIOSHACK CORPORATION
100 Throckmorton Street, Suite 1800
Fort Worth, Texas 76102
(Name of issuer and address of principal executive offices)
Index to Exhibits is on sequential page number 13
TANDY EMPLOYEES
SUPPLEMENTAL STOCK PROGRAM
FORT WORTH, TEXAS
REPORT OF EXAMINATION
DECEMBER 31, 2001
-2-
C O N T E N T S
---------------
Page
----
CERTIFIED PUBLIC ACCOUNTANTS REPORT ............................. 4
STATEMENT OF FINANCIAL CONDITION ................................ 5
STATEMENT OF INCOME AND CHANGES
IN PLAN EQUITY ................................................ 6
NOTES TO FINANCIAL STATEMENTS ................................... 7-10
ADDITIONAL INFORMATION .......................................... 11
SIGNATURE PAGE .................................................. 12
INDEX TO EXHIBITS ............................................... 13
EXHIBIT 23 - CONSENT OF INDEPENDENT ACCOUNTANT .................. 14
-3-
CURTIS B MORRISON, CPA
5819 Chimney Wood Circle
Fort Worth, Texas 76112
(817) 429-3878
The Administrative Committee and Participants of
Tandy Employees Supplemental Stock Program
Fort Worth, Texas
Independent Auditors Report
I have audited the accompanying statement of financial condition of the Tandy
Employees Supplemental Stock Program as of December 31, 2001 and 2000, and the
related statement of income and changes in plan equity for the years ended
December 31, 2001, 2000 and 1999. These financial statements are the
responsibility of the Program's management. My responsibility is to express an
opinion on these financial statements based on my audit.
I conducted my audit in accordance with generally accepted auditing standards.
Those standards require that I plan and perform my audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the overall
financial statement presentation. I believe that my audit provides a reasonable
basis for my opinion.
In my opinion, the financial statements referred to above present fairly, in all
material respects, the financial position of the Tandy Employees Supplemental
Stock Program as of December 31, 2001 and 2000, and results of its operations
for the years ended December 31, 2001, 2000 and 1999 in conformity with
generally accepted accounting principles.
My audit was made for the purpose of forming an opinion on the basic financial
statements taken as a whole. The supplemental schedule of assets held for
investment purposes is presented for purposes of complying with the Department
of Labor's Rules and Regulations for Reporting and Disclosure under the Employee
Retirement Income Security Act of 1974 and is not a required part of the basic
financial statements. The supplemental schedule has been subjected to the
auditing procedures applied in the audit of the basic financial statements and,
in my opinion, is fairly stated in all material respects in relation to the
basic financial statements taken as a whole.
CURTIS B MORRISON, CPA
Fort Worth, Texas
June 3, 2002
-4-
TANDY EMPLOYEES
SUPPLEMENTAL STOCK PROGRAM
FORT WORTH, TEXAS
STATEMENT OF FINANCIAL CONDITION
DECEMBER 31, 2001 AND 2000
PLAN ASSETS
-----------
2001 2000
---- ----
Investment in Securities of
Participating Employer (Note B): $20,447,833 $34,110,451
Common Stock
Contributions Receivable 0 0
----------- -----------
TOTAL $20,447,833 $34,110,451
----------- -----------
LIABILITIES AND PLAN EQUITY
---------------------------
Liabilities: $ 0 $ 0
----------- -----------
Plan Equity:
Participants Interest in Tandy $20,447,833 $34,110,451
=========== ===========
Employees Supplemental Stock
Program
The accompanying notes are an integral part of these financial statements.
-5-
TANDY EMPLOYEES
SUPPLEMENTAL STOCK PROGRAM
FORT WORTH, TEXAS
STATEMENT OF INCOME AND CHANGES IN PLAN EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2001, 2000 AND 1999
2001 2000 1999
---- ---- ----
Investment Income:
Interest $ 0 $ 0 $ 0
Dividend 0 0 0
------------ ------------ ------------
0 0 0
------------ ------------ ------------
Realized Gain (Loss) on
Securities (Note C): $ 0 $ 0 $ 0
------------ ------------ ------------
Increase (Decrease) in
Unrealized Appreciation
of Investments (Note D) $(14,138,611) $(12,251,065) $ 19,219,248
------------ ------------ ------------
Contributions (Note A):
Participating Employees $ 2,048,352 $ 2,364,245 $ 1,585,286
Participating Employer 1,639,561 1,892,781 1,268,383
Other Contributions 152,746 183,514 224,922
------------ ------------
$ 3,840,659 $ 4,440,540 $ 3,078,591
------------ ------------ ------------
Less:
Withdrawals of
Participant's Interest $ 3,364,666 $ 2,270,533 $ 4,628,244
------------ ------------ ------------
Net Increase (Decrease)
in Plan for the Year
Ended 12-31-01/00/99 $(13,662,618) $(10,081,058) $ 17,669,595
Add Plan Equity at
Beginning of Year
1-1/01/00/99 34,110,451 44,191,509 26,521,914
------------ ------------ ------------
Plan Equity at
End of Year
12-31-01/00/99 $ 20,447,833 $ 34,110,451 $ 44,191,509
============ ============ ============
The accompanying notes are integral part of these financial statements.
-6-
TANDY EMPLOYEES
SUPPLEMENTAL STOCK PROGRAM
FORT WORTH, TEXAS
STATEMENT OF INCOME AND CHANGES IN PLAN EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2001, 2000 AND 1999
NOTE A - DESCRIPTION OF THE PROGRAM
The following description of the Tandy Employees Supplemental Stock Program (the
"Program") provides only general information. Participants should refer to the
Program Prospectus for a more complete description of the Program's provisions.
General
-------
The purpose of the Program is to assist the employees of RadioShack Corporation
and its participating affiliates and associates (collectively called "Company")
in building personal net worth and to encourage ownership in the Company by
providing a Program for regular investment in the Company's common stock after
an employee has reached a maximum salary deferral contribution limit under the
Tandy Fund.
The Program is subject to Title I of the Employee Retirement Security Act of
1974 (ERISA) relating to the protection of employee benefit rights, but is not
subject to Title IV, relating to plan termination insurance coverage, and such
insurance will not be extended to participants in the Program in the future.
Contributions
-------------
Prior to January 1, 1996, through authorized payroll deduction a participant
could contribute 5% of his or her gross salary or wages to the Program after
reaching a maximum salary deferral contribution limit under the Tandy Employees
Deferred Salary and Investment Plan. Effective January 1, 1996 the contribution
percentage could vary from 1 to 8% of his or her gross salary or wages after
reaching a maximum salary deferral contribution limit under the Tandy Fund.
The Company makes contributions to the Program equal to 80% of the participant's
contribution.
Cash dividends are added to the participant's account as Other contributions
paid on the shares of common stock credited to a participant's account. These
Other contributions are not subject to matching contributions by the Company.
The participant's contributions and the Company matching contribution are a part
of the employee's current compensation, and, as such, are subject to all
applicable federal, state, and local income, federal insurance contributions act
and other taxes. The
-7-
TANDY EMPLOYEES
SUPPLEMENTAL STOCK PROGRAM
FORT WORTH, TEXAS
STATEMENT OF INCOME AND CHANGES IN PLAN EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2001, 2000 AND 1999
NOTE A - DESCRIPTION OF THE PROGRAM (CONTINUED)
cash dividends allocated to a participant's account are taxable to the
participant for the calendar year allocated.
As promptly as practicable after the end of each calendar quarter the
participant's contribution, the Company contribution, and any Other
contributions are used for the acquisition of the Company's common stock with
shares being credited to the participant's account on the basis of the number of
shares purchased at a price equal to the average of the closing prices of the
Company common stock as reported for the New York Stock Exchange Composite
Transactions for each trading day in the calendar month for which the
contributions are made.
The following is a schedule of Employee, Company, and Other contributions:
2001 2000 1999
---- ---- ----
Employees $2,048,352 $2,364,245 $1,585,286
---------- ---------- ----------
Company $1,639,561 $1,892,781 $1,268,383
---------- ---------- ----------
Other $ 152,746 $ 183,514 $ 224,922
---------- ---------- ----------
Participants' Accounts
----------------------
Each participant is mailed a quarterly statement showing his or her
contributions to date, Company and Other contributions to date, the number of
shares purchased and the average share price for shares purchased to date. Each
participant is also mailed a copy of the annual report of the Company, any
appendix to the prospectus, and the summary annual report.
Vesting
-------
The participants' accounts are fully vested at the end of each calendar quarter.
Payment of Benefits
-------------------
The distribution of the Company common stock to the participant is not a taxable
event. Cash paid in lieu of stock upon withdrawal will, to the extent that it
exceeds or is less than
-8-
TANDY EMPLOYEES
SUPPLEMENTAL STOCK PROGRAM
FORT WORTH, TEXAS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2001, 2000 AND 1999
NOTE A - DESCRIPTION OF THE PROGRAM (CONTINUED)
the cost basis of the Company common stock, be treated as long or short term
capital gain or loss, respectively.
A participant will recognize gain or loss on subsequent disposition of his or
her common stock, measured by the difference between the amount realized and the
cost basis.
NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Valuation of Securities
-----------------------
RadioShack common stock is valued at the closing price as reported on the New
York Stock Exchange Composite Transactions.
SCHEDULE OF INVESTMENTS IN SECURITIES
-------------------------------------
OF PARTICIPATING EMPLOYER
-------------------------
NO. OF VALUE
SHARES COST 12-31-01
------ ---- --------
COMMON STOCK
RadioShack Corporation
Common Stock 679,330 $14,812,980 $20,447,833
----------- -----------
Contributions
-------------
The contributions are accrued as incurred.
Income Tax Status
-----------------
The Program is not a qualified plan under Section 401 of the Internal Revenue
Code. All items of income and gains and losses are treated as received or
incurred directly by the participants for federal income tax purposes.
-9-
TANDY EMPLOYEES
SUPPLEMENTAL STOCK PROGRAM
FORT WORTH, TEXAS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2001, 2000 AND 1999
NOTE C - REALIZED GAIN ON SECURITIES
None (No sale of securities was made during the year).
NOTE D - UNREALIZED APPRECIATION
2001 2000 1999
---- ---- ----
Unrealized Appreciation
(Depreciation) at
12-31-01/00/99 $ 5,634,853 $ 19,773,464 $32,024,529
Unrealized Appreciation
(Depreciation) at
12-31-00/99/98 19,773,464 32,024,529 12,805,281
------------ ---------- ----------
Net Increase (Decrease)
for Year ended
12-31-01/00/99 $(14,138,611) $(12,251,065) $19,219,248
============ ============ ===========
The unrealized appreciation or depreciation of securities held for investment
for financial statement reporting prepared in conformity with generally accepted
accounting principles differ from that for income tax reporting.
Generally accepted accounting principles measure unrealized appreciation or
depreciation as the difference between the securities market value at the plan's
year end and its historical cost. The unrealized appreciation or depreciation
for income tax reporting is the difference between the securities market value
at the plan year end and its current value at the beginning of the plan year.
A participant's account is increased or decreased by the unrealized appreciation
or depreciation recognized under generally accepted accounting principles.
-10-
TANDY EMPLOYEES
SUPPLEMENTAL STOCK PROGRAM
FORT WORTH, TEXAS
ADDITIONAL INFORMATION
YEAR ENDED DECEMBER 31, 2001
ITEM 30a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
Issuer Description of Cost Current Value
------ Investment ----
--------------
RadioShack Corporation Common Stock $14,812,980 $20,447,833
----------- -----------
-11-
SIGNATURES
----------
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Administrative Committee has duly caused this annual report to be signed on its
behalf by the undersigned hereunto duly authorized.
TANDY EMPLOYEES
SUPPLEMENTAL STOCK PROGRAM
by /s/ J. Bradley
-----------------------------------------
J. Bradley
Administrative Committee Member
by /s/ R. Ray
-----------------------------------------
R. Ray
Administrative Committee Member
by /s/ R. McInnis
-----------------------------------------
R. McInnis
Administrative Committee Member
Date June 18, 2002
-----------------------------
-12-
Index to Exhibits
Exhibit Description Page
Number of Exhibit Number
------ ----------- -------
23 Consent of 14
Independent
Accountant
-13-