EX-99 3 l87978aex99.htm EX-99-FIN STMTS-TRW CANADA STOCK SAVINGS PLAN EX-99-FIN STMTS-TRW CANADA STOCK SAVINGS PLAN

Exhibit 99

Financial Statements

THE TRW CANADA STOCK SAVINGS PLAN
December 31, 2000 and 1999

 

REPORT OF INDEPENDENT AUDITORS

To the Participants and the Board of Administration of
The TRW Canada Stock Savings Plan

We have audited the statements of financial condition of the TRW Stock Fund, Pooled Money Market Fund Employees Profit Sharing Plan, Pooled Balanced Fund Registered Retirement Savings Plan and Pooled Money Market Fund Registered Retirement Savings Plan [constituting The TRW Canada Stock Savings Plan] as at December 31, 2000 and 1999 and the related statements of operations and changes in fund equity for these funds for the years then ended. These financial statements are the responsibility of the company’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in Canada. Those standards require that we plan and perform an audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.

In our opinion, these financial statements present fairly, in all material respects, the financial position of the several funds of The TRW Canada Stock Savings Plan as at December 31, 2000 and 1999 and the results of their operations and the changes in fund equity for the years then ended in accordance with accounting principles generally accepted in Canada.

     
Hamilton, Canada, /s/ Ernst & Young LLP
March 8, 2001. Chartered Accountants

 

The TRW Canada Stock Savings Plan
TRW Stock Fund

STATEMENTS OF FINANCIAL CONDITION

As at December 31

                           
2000 1999
$ $
[expressed in Canadian dollars]
ASSETS
Cash 11,107 5,246
Receivable from TRW Canada Limited 138,306 87,163
Investments at quoted market value
TRW Inc. common stock
20,367 shares [cost $1,390,023] in 2000 and
13,089 shares [cost $957,618] in 1999 1,183,437 981,170
1,332,850 1,073,579
LIABILITIES AND FUND EQUITY
Withdrawals, terminations, and short-term distributions 903,887 828,383
Fund equity [including net unrealized appreciation of investments] 428,963 245,196
1,332,850 1,073,579
Number of shares outstanding at December 31 20,367 13,089
Fund equity per share at December 31 22.9816 18.7329

See accompanying notes

 

The TRW Canada Stock Savings Plan
TRW Stock Fund

STATEMENTS OF OPERATIONS AND
CHANGES IN FUND EQUITY

Years ended December 31

                             
2000 1999
$ $
[expressed in Canadian dollars]
 
INVESTMENT INCOME
Dividends on TRW Inc. common stock 16,461 11,030
Interest 539 34
17,000 11,064
CONTRIBUTIONS
Participants 707,339 455,563
TRW Canada Limited
50% of total participants’ contributions to all funds		 597,775 440,952
1,305,114 896,515
Net realized gain on transfer of investments to participants [note 4] 71,011 90,527
Unrealized depreciation of investments [note 4] (230,138 ) (82,077 )
(159,127 ) 8,450
1,162,987 916,029
Less withdrawals and terminations
Paid
Cash 1,288 1,583
TRW Inc. common stock 1,161 shares in 2000; 713 shares in 1999 74,045 55,970
75,333 57,553
Payable
Cash 11,436 7,979
TRW Inc. common stock 15,589 shares in 2000; 11,594 shares in 1999 892,451 820,404
903,887 828,383
979,220 885,936
Increase in fund equity 183,767 30,093
 
Fund equity at January 1 245,196 215,103
Fund equity at December 31 428,963 245,196

See accompanying notes

 

The TRW Canada Stock Savings Plan
Pooled Money Market Fund Employees Profit Sharing Plan

STATEMENTS OF FINANCIAL CONDITION

As at December 31

                           
2000 1999
$ $
[expressed in Canadian dollars]
 
ASSETS
Cash 21 11,879
Receivable from TRW Canada Limited 23,409 22,019
Investments at market value
Royal Trust Company Classified Money Market Fund
25,186 units [cost $251,863] in 2000 and
22,325 units [cost $223,250] in 1999		 251,863 223,250
275,293 257,148
LIABILITIES AND FUND EQUITY
Withdrawals, terminations, and short-term distributions 218,947 211,299
Fund equity 56,346 45,849
275,293 257,148
Number of units outstanding at December 31 5,634.6 4,584.9
Fund equity per unit at December 31 10.0 10.0

See accompanying notes

 

The TRW Canada Stock Savings Plan
Pooled Money Market Fund Employees Profit Sharing Plan

STATEMENTS OF OPERATIONS AND
CHANGES IN FUND EQUITY

Years ended December 31

                           
2000 1999
$ $
[expressed in Canadian dollars]
 
Interest income 8,905 5,506
Participants’ contributions 238,091 230,976
246,996 236,482
Less cash withdrawals and terminations
Paid 31,715 20,126
Payable 204,784 205,424
236,499 225,550
Increase in fund equity 10,497 10,932
Fund equity at January 1 45,849 34,917
Fund equity at December 31 56,346 45,849

See accompanying notes

 

The TRW Canada Stock Savings Plan
Pooled Balanced Fund Registered Retirement Savings Plan

STATEMENTS OF FINANCIAL CONDITION

As at December 31

                           
2000 1999
$ $
[expressed in Canadian dollars]
 
ASSETS
Cash 9 9,021
Receivable from TRW Canada Limited 18,964 12,653
Dividends receivable 18,692 5,077
Investments at quoted market value
Royal Trust Company Classified Balanced Fund 49,447.5982 units [cost $759,145] in 2000 and 40,584.5417 units [cost $565,355] in 1999 869,927 686,045
907,592 712,796
LIABILITIES AND FUND EQUITY
Withdrawals, terminations, and short-term distributions 43,045 13,503
Fund equity [including net unrealized appreciation of investments] 864,547 699,293
907,592 712,796
Number of units outstanding at December 31 49,447.5982 40,584.5417
Fund equity per unit at December 31 17.4841 17.230

See accompanying notes

 

The TRW Canada Stock Savings Plan
Pooled Balanced Fund Registered Retirement Savings Plan

STATEMENTS OF OPERATIONS AND
CHANGES IN FUND EQUITY

Years ended December 31

                           
2000 1999
$ $
[expressed in Canadian dollars]
 
Income 49,441 25,558
Contributions
Participants’ contributions 183,056 136,422
Net realized gain on disposition of investments [note 4] 34,021 10,587
Unrealized (depreciation) appreciation of investments [note 4] (9,908 ) 42,821
24,113 53,408
256,610 215,388
Less cash withdrawals and terminations
Paid 48,311 89,062
Payable 43,045 13,503
91,356 102,565
Increase in fund equity 165,254 112,823
 
Fund equity at January 1 699,293 586,470
Fund equity at December 31 864,547 699,293

See accompanying notes

 

The TRW Canada Stock Savings Plan
Pooled Money Market Fund Registered Retirement Savings Plan

STATEMENTS OF FINANCIAL CONDITION

As at December 31

                           
2000 1999
$ $
[expressed in Canadian dollars]
 
ASSETS
Cash 1 5,177
Receivable from TRW Canada Limited 6,699 5,695
Investments at market value
Royal Trust Company Classified Pooled Money Market Fund 30,690 units [cost $306,899] in 2000 and 23,897 units [cost $238,966] in 1999 306,899 238,966
313,599 249,838
LIABILITIES AND FUND EQUITY
Withdrawals, terminations, and short-term distributions 9,075 —
Fund equity 304,524 249,838
313,599 249,838
Number of units outstanding at December 31 30,452.4 24,983.8
Fund equity per unit at December 31 10.0 10.0

See accompanying notes

 

The TRW Canada Stock Savings Plan
Pooled Money Market Fund Registered Retirement Savings Plan

STATEMENTS OF OPERATIONS AND
CHANGES IN FUND EQUITY

Years ended December 31

                           
2000 1999
$ $
[expressed in Canadian dollars]
 
Interest income 15,069 12,336
Participants’ contributions 67,391 59,633
82,460 71,969
Less cash withdrawals and terminations
Paid 18,699 91,888
Payable 9,075 —
27,774 91,888
Increase (decrease) in fund equity 54,686 (19,919 )
 
Fund equity at January 1 249,838 269,757
Fund equity at December 31 304,524 249,838

See accompanying notes

 

The TRW Canada Stock Savings Plan

NOTES TO FINANCIAL STATEMENTS

December 31, 2000 and 1999

1. GENERAL PLAN PROVISIONS

The investment programs of The TRW Canada Stock Savings Plan [the “Plan"] are as follows:

Participant contributions

Upon enrollment or re-enrollment, each participant directs that his contributions [computed in increments of one percent, from two percent to six percent of qualifying compensation] are to be invested in accordance with any of the following investment options:

     
[a] 100% in the TRW Stock Fund [the common stock of TRW Inc. in accordance with the Trust agreement and the Plan].
 
[b] 100% in the Pooled Money Market Fund Employees Profit Sharing Plan. At present, the Trustee invests all of the Pooled Money Market Fund amounts in the Royal Trust Company, Classified Money Market Fund in accordance with the Trust agreement and the Plan.
 
[c] 100% in the Pooled Balanced Fund Registered Retirement Savings Plan. At present, the Trustee invests all of the Pooled Balanced Fund amounts in the Royal Trust Company, Classified Balanced Fund, in accordance with the Trust agreement and the Plan.
 
[d] 100% in the Pooled Money Market Fund Registered Retirement Savings Plan. At present, the Trustee invests all of the Pooled Money Market Fund amounts in the Royal Trust Company, Classified Pooled Money Market Fund in accordance with the Trust agreement and the Plan.
 
[e] A combination of options [a] through [d] in multiples of 25%.

Such direction may be revised on 30 days prior notice, effective January 1 of any year.

TRW Canada Limited contributions

TRW Canada Limited shall contribute to the Plan for each month, out of current or accumulated earnings, an amount equal to 50% of participant contributions for such month. TRW Canada Limited contributions vest immediately.

All TRW Canada Limited contributions are invested in the TRW Stock Fund.

TRW Canada Limited does not charge a fee for administering the Plans.

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The TRW Canada Stock Savings Plan

NOTES TO FINANCIAL STATEMENTS

December 31, 2000 and 1999

The number of participants in each Fund at December 31 is as follows:

                         
2000 1999
# #
TRW Stock Fund 586 245
Pooled Money Market Fund Employees Profit Sharing Plan 128 75
Pooled Balanced Fund Registered Retirement Savings Plan 153 62
Pooled Money Market Fund Registered Retirement Savings Plan 62 39

The total number of participants in the Plan is less than the sum of the number of participants shown above because many are participating in more than one Fund.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

These financial statements have been prepared in accordance with accounting principles generally accepted in Canada, and are within the framework of the accounting policies summarized below.

Gains and losses on investments

The realized gains or losses on disposition or transfer of an investment are determined from the market value of the investment at the date of disposition or transfer and the average cost base of that specific pool of investments prior to the disposition or transfer.

Unrealized gains or losses are determined as the net effect of the change in appreciation (depreciation) of investments from January 1 to December 31, based on market value and the average cost base of each investment at those respective dates.

Income recognition

Dividends are recognized as earned.

Interest income is recognized as it is earned consistent with the accrual basis of accounting.

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The TRW Canada Stock Savings Plan

NOTES TO FINANCIAL STATEMENTS

December 31, 2000 and 1999

3. INCOME TAXES

The Plan is exempt from Canadian federal income taxes under provisions of the Income Tax Act. Federal income tax consequences to the participants under the Plan are as provided in the Income Tax Act. TRW Canada Limited contributions are taxable to the participants as is the income and all post-1971 capital gains less post-1971 capital losses of the Plan, all of which are allocated to the participants by the Trustee during the year, whether or not such amounts are paid to the participants by the Trustee during the year. In some circumstances, the amounts taxable could exceed the amounts allocated. The amount of foreign non-business income tax paid on foreign source income by the trusts under the Plan for the year is allocated to and deemed to have been paid by the participants for Canadian federal income tax purposes. Participants who are non-resident taxpayers are subject to special rules depending on whether they have performed duties in Canada during the year and are subject to 15% withholding tax on amounts paid or credited to them under the Plan.

4. UNREALIZED AND REALIZED (LOSSES) GAINS

Investments are stated at their quoted market value. The net unrealized appreciation (depreciation) of investments included in fund equity is as follows:

                           
TRW Pooled
Stock Balanced
Fund Fund
$ $
[expressed in Canadian dollars]
 
Balance at December 31, 1998 105,629 77,869
Change for the year
Market value (82,077 ) 42,821
Balance at December 31, 1999 23,552 120,690
Change for the year
Market value (230,138 ) (9,908 )
Balance at December 31, 2000 (206,586 ) 110,782

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The TRW Canada Stock Savings Plan

NOTES TO FINANCIAL STATEMENTS

December 31, 2000 and 1999

The net realized gains on the transfer or disposition of investments are summarized as follows:

                         
TRW Stock Fund
2000 1999
$ $
[expressed in Canadian dollars]
 
Amount realized 926,829 942,356
Cost — average 855,818 851,829
Net realized gain 71,011 90,527
 
Pooled Balanced Fund
Registered Retirement
Savings Plan
2000 1999
$ $
[expressed in Canadian dollars]
 
Amount realized 181,059 66,113
Cost — average 147,038 55,526
Net realized gain 34,021 10,587

5. RELATED PARTY TRANSACTIONS

All expenses related to The TRW Canada Stock Savings Plan are paid by TRW Canada Limited.

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