-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, PtM3ox8N6dA+tLdWVT3TEFJTt9CePpcWamO0ED9L3QiSDNL7TaiR9H8bk7D+mV2A VvPjI/ocO14iMFDCNY5NuQ== 0000099189-94-000013.txt : 19940404 0000099189-94-000013.hdr.sgml : 19940404 ACCESSION NUMBER: 0000099189-94-000013 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19931231 FILED AS OF DATE: 19940331 FILER: COMPANY DATA: COMPANY CONFORMED NAME: TRANSAMERICA CORP CENTRAL INDEX KEY: 0000099189 STANDARD INDUSTRIAL CLASSIFICATION: 6199 IRS NUMBER: 940932740 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 11-K SEC ACT: 34 SEC FILE NUMBER: 001-02964 FILM NUMBER: 94519747 BUSINESS ADDRESS: STREET 1: 600 MONTGOMERY ST CITY: SAN FRANCISCO STATE: CA ZIP: 94111 BUSINESS PHONE: 4159834000 11-K 1 Page 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _____________________ FORM 11-K ( X ) Annual Report Pursuant to Section 15(d) of the Securities Exchange Act of 1934 Commission file Nos. 2-83724, 33-12324 and 33-38267 _____________________ For the Fiscal Year Ended December 31, 1993 TRANSAMERICA CORPORATION EMPLOYEES STOCK SAVINGS PLAN (Full Title of the Plan) TRANSAMERICA CORPORATION 600 Montgomery Street San Francisco, California 94111 (Name of Issuer of the Securities Held Pursuant to the Plan and the Address of its Principal Executive Office) Page 2 Required information: (a) Financial statements filed as a part of this report: Report of Ernst & Young, Independent Auditors Statement of Net Assets Available for Plan Benefits December 31, 1993 and 1992 Statement of Changes in Net Assets Available for Plan Benefits - Years ended December 31, 1993, 1992 and 1991 Notes to Financial Statements - Three years ended December 31, 1993 (b) Exhibit filed as a part of this report: EX-23. Consent of Ernst & Young to the incorporation by reference of their report dated March 25, 1994 in Transamerica Corporation's Registration Statements on Form S-8 (File Nos. 2-83724, 33-12324 and 33-38267). Signatures Pursuant to the requirements of the Securities Exchange Act of 1934, the Administration Committee of the Plan has duly caused this annual report to be signed on its behalf by the undersigned thereunto duly authorized. TRANSAMERICA CORPORATION EMPLOYEES STOCK SAVINGS PLAN (Name of Plan) Burton E. Broome Vice President and Controller Transamerica Corporation For the Transamerica Corporation Employees Stock Savings Plan Administration Committee Date: March 31, 1994 Page 3 FINANCIAL STATEMENTS For ANNUAL REPORT ON FORM 11-K TRANSAMERICA CORPORATION EMPLOYEES STOCK SAVINGS PLAN Year Ended December 31, 1993 Page 4 REPORT OF ERNST & YOUNG, INDEPENDENT AUDITORS Board of Directors Transamerica Corporation San Francisco, California We have audited the accompanying statements of net assets available for plan benefits of Transamerica Corporation Employees Stock Savings Plan as of December 31, 1993 and 1992, and the related statements of changes in net assets available for plan benefits for each of the three years in the period ended December 31, 1993. 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 at December 31, 1993 and 1992, and the changes in its net assets available for plan benefits for each of the three years in the period ended December 31, 1993, in conformity with generally accepted accounting principles. Ernst & Young Los Angeles, California March 25, 1994 Page 5 TRANSAMERICA CORPORATION EMPLOYEES STOCK SAVINGS PLAN STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS December 31, 1993 (Part 1 of 2)
Transamerica Life Insurance & Annuity Trans- Transamerica __________________________________________________ america Corporation Fixed Equity Cash Common Bond Income Equity Index Reserve Stock Fund Fund Fund Fund Fund ____________ ____ ______ ______ ______ _______ Investments: Transamerica Corporation Common Stock--at market value (cost $102,205,886 for 2,987,738 shares) ........... $169,554,142 Transamerica Bond Fund--at market value (cost $3,188,596 for 286,966 shares) .......... $3,360,372 Transamerica Fixed Income Fund--at cost plus accrued interest of $13,003,731, which approximates market value ........................ $44,590,690 Transamerica Equity Fund--at market value (cost $8,636,131 for 698,671 shares) .......... $9,901,365 Transamerica Equity Index Fund--at market value (cost $2,077,413 for 191,750 shares) ...................... $2,201,666 Transamerica Cash Reserve Fund--at cost, which approxi- mates market value ........... $3,135,417 Dodge & Cox Balanced Fund--at market value (cost $4,307,707 for 94,451 shares) ........... T. Rowe Price Equity Income Fund--at market value (cost $4,388,934 for 269,460 shares) ...................... Loans to participants (interest rate at 7%) .................. ____________ __________ ___________ __________ __________ __________ Total investments ............. 169,554,142 3,360,372 44,590,690 9,901,365 2,201,666 3,135,417 Dividends receivable ............ 1,493,869 Cash equivalents ................ 550,314 ____________ __________ ___________ __________ __________ __________ NET ASSETS AVAILABLE FOR PLAN BENEFITS $171,598,325 $3,360,372 $44,590,690 $9,901,365 $2,201,666 $3,135,417 ============ ========== =========== =========== ========== ========== APPROXIMATE NUMBER OF PARTICIPATING EMPLOYEES 5,400 1,000 3,800 1,900 1,000 700 ===== ===== ===== ===== ===== ===== See notes to financial statements
Page 6 TRANSAMERICA CORPORATION EMPLOYEES STOCK SAVINGS PLAN STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS December 31, 1993 (Part 2 of 2)
T. Rowe Dodge Price & Cox Equity Balanced Income Participant Fund Fund Loans Total ________ _______ ___________ _____ Investments: Transamerica Corporation Common Stock--at market value (cost $102,205,886 for 2,987,738 shares) ........... $169,554,142 Transamerica Bond Fund--at market value (cost $3,188,596 for 286,966 shares) .......... 3,360,372 Transamerica Fixed Income Fund--at cost plus accrued interest of $13,003,731, which approximates market value ........................ 44,590,690 Transamerica Equity Fund--at market value (cost $8,636,131 for 698,671 shares) .......... 9,901,365 Transamerica Equity Index Fund--at market value (cost $2,077,413 for 191,750 shares) ...................... 2,201,666 Transamerica Cash Reserve Fund--at cost, which approxi- mates market value ........... 3,135,417 Dodge & Cox Balanced Fund--at market value (cost $4,307,707 for 94,451 shares) ........... $4,382,526 4,382,526 T. Rowe Price Equity Income Fund--at market value (cost $4,388,934 for 269,460 shares) ...................... $4,486,500 4,486,500 Loans to participants (interest rate at 7%) .................. $5,939,828 5,939,828 __________ __________ __________ ____________ Total investments ............. 4,382,526 4,486,500 5,939,828 247,552,506 Dividends receivable ............ 1,493,869 Cash equivalents ................ 550,314 __________ __________ __________ ____________ NET ASSETS AVAILABLE FOR PLAN BENEFITS $4,382,526 $4,486,500 $5,939,828 $249,596,689 ========== ========== ========== ============ APPROXIMATE NUMBER OF PARTICIPATING EMPLOYEES 1,300 1,600 800 ===== ===== === See notes to financial statements
Page 7 TRANSAMERICA CORPORATION EMPLOYEES STOCK SAVINGS PLAN STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS December 31, 1992
Trans- Trans- Transamerica america america Fidelity Corporation Fixed Cash FPA Fidelity Equity- Common Income Reserve Capital Magellan Income Stock Fund Fund Fund,Inc. Fund,Inc. Fund Total ____________ _______ _______ ________ _________ ________ _____ Investments: Transamerica Corporation Common Stock--at market value (cost $137,952,194 for 4,320,374 shares) ... $207,377,921 $207,377,921 Transamerica Fixed Income Fund--at cost plus accrued interest of $18,053,409, which approx- imates market value ..... $59,356,084 59,356,084 Transamerica Cash Reserve Fund--at cost, which approximates market value ................... $1,350,595 1,350,595 FPA Capital Fund, Inc.-- at market value (cost $280,663 for 23,542 shares) ................. $444,715 444,715 Fidelity Magellan Fund, Inc.--at market value (cost $1,760,596 for 29,081 shares) .......... $1,832,378 1,832,378 Fidelity Equity-Income Fund--at market value (cost $392,530 for 14,801 shares) .......... $429,368 429,368 ____________ ___________ __________ ________ __________ ________ ____________ Total investments ........ 207,377,921 59,356,084 1,350,595 444,715 1,832,378 429,368 270,791,061 Dividends receivable ....... 2,160,187 2,160,187 Cash equivalents ........... 707,841 707,841 ____________ ___________ __________ ________ __________ ________ ____________ NET ASSETS AVAILABLE FOR PLAN BENEFITS $210,245,949 $59,356,084 $1,350,595 $444,715 $1,832,378 $429,368 $273,659,089 ============ =========== ========== ======== ========== ======== ============ APPROXIMATE NUMBER OF PARTICIPATING EMPLOYEES 7,000 4,700 125 60 100 40 ===== ===== === == === == See notes to financial statements
Page 8 TRANSAMERICA CORPORATION EMPLOYEES STOCK SAVINGS PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS Year Ended December 31, 1993 (Part 1 of 2)
Transamerica Life Insurance & Annuity Trans- Transamerica __________________________________________________ america Corporation Fixed Equity Cash Common Bond Income Equity Index Reserve Stock Fund Fund Fund Fund Fund ____________ ____ _______ ______ ______ ________ ADDITIONS Net investment income: Interest ..................... $ 34,889 $ 3,667,033 Dividends .................... 6,031,417 $ 61,208 ____________ ___________ __________ Net investment income .... 6,066,306 3,667,033 61,208 Net change in unrealized appreciation (depreciation) of investments ............... (2,077,471) $ 171,776 $ 1,265,234 $ 124,253 Appreciation realized on sale for transfer ................. 10,354,125 14,784 41,811 11,702 Contributions: Participants ................. 4,939,607 656,726 3,272,585 1,897,828 708,609 382,198 Loan recontribution .......... 223,565 14,306 123,661 56,840 19,729 12,678 Employer (reduced by for- feitures of $310,785) ...... 8,990,730 Interfund transfers ............ (22,074,718) 3,267,387 (1,044,182) 7,930,152 2,025,061 2,581,187 Loan disbursement .............. (3,006,667) (99,508) (2,380,908) (181,857) (106,487) (113,190) ____________ __________ ___________ ___________ __________ __________ Total additions .......... 3,415,477 4,025,471 3,638,189 11,010,008 2,782,867 2,924,081 DEDUCTIONS Distributions to participants: Securities, at cost .......... 6,627,759 66,332 115,930 44,965 Cash ......................... 119,136 4,011,376 319,637 Transamerica Insurance Group transfer: Securities, at cost .......... 35,060,574 598,767 14,392,207 992,713 536,236 819,622 Cash ......................... 255,632 ____________ __________ ___________ __________ __________ __________ Total deductions ......... 42,063,101 665,099 18,403,583 1,108,643 581,201 1,139,259 ____________ __________ ___________ __________ __________ __________ Net additions (deductions) ..... (38,647,624) 3,360,372 (14,765,394) 9,901,365 2,201,666 1,784,822 Net assets available for plan benefits at beginning of year 210,245,949 59,356,084 1,350,595 ____________ __________ ___________ __________ __________ __________ NET ASSETS AVAILABLE FOR PLAN BENEFITS AT END OF YEAR $171,598,325 $3,360,372 $44,590,690 $9,901,365 $2,201,666 $3,135,417 ============= ========== =========== ========== ========== ========== See notes to financial statements
Page 9 TRANSAMERICA CORPORATION EMPLOYEES STOCK SAVINGS PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS Year Ended December 31, 1993 (Part 2 of 2)
T. Rowe Dodge Price Fidelity & Cox Equity FPA Fidelity Equity- Balanced Income Capital Magellan Income Participant Fund Fund Fund, Inc. Fund,Inc. Fund Loans Total ________ _______ __________ _________ ________ ___________ _____ ADDITIONS Net investment income: Interest ..................... $ 112,559 $ 3,814,481 Dividends .................... $ 200,381 $ 319,989 $ 11,851 $ 94,957 $ 7,388 6,727,191 __________ __________ ________ __________ ________ __________ ___________ Net investment income .... 200,381 319,989 11,851 94,957 7,388 112,559 10,541,672 Net change in unrealized appreciation (depreciation) of investments ............... 74,819 97,566 (164,052) (71,782) (36,838) (616,495) Appreciation realized on sale for transfer ................. 29,727 21,912 148,144 199,308 65,914 10,887,427 Contributions: Participants ................. 1,064,251 1,457,157 14,378,961 Loan recontribution .......... 33,337 38,515 (522,631) - Employer (reduced by for- feitures of $310,785) ...... 8,990,730 Interfund transfers ............ 4,873,260 4,793,765 (401,520) (1,623,220) (327,172) - Loan disbursements ............. (210,286) (232,908) (9,908) (3,504) (4,677) 6,349,900 - __________ __________ ________ __________ ________ __________ ____________ Total additions .......... 6,065,489 6,495,996 (415,485) (1,404,241) (295,385) 5,939,828 44,182,295 DEDUCTIONS Distributions to participants: Securities, at cost .......... 147,100 148,616 2,541 24,543 14,617 7,192,403 Cash ......................... 4,450,149 Transamerica Insurance Group transfer: Securities, at cost .......... 1,535,863 1,860,880 26,689 403,594 119,366 56,346,511 Cash ......................... 255,632 __________ __________ ________ __________ ________ ____________ Total deductions ......... 1,682,963 2,009,496 29,230 428,137 133,983 68,244,695 __________ __________ ________ __________ ________ __________ ____________ Net additions (deductions) ..... 4,382,526 4,486,500 (444,715) (1,832,378) (429,368) 5,939,828 (24,062,400) Net assets available for plan benefits at beginning of year 444,715 1,832,378 429,368 273,659,089 __________ __________ ________ __________ ________ __________ ____________ NET ASSETS AVAILABLE FOR PLAN BENEFITS AT END OF YEAR $4,382,526 $4,486,500 $ - $ - $ - $5,939,828 $249,596,689 ========== ========== ======== ========== ======== ========== ============ See notes to financial statements
Page 10 TRANSAMERICA CORPORATION EMPLOYEES STOCK SAVINGS PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS Year Ended December 31, 1992
Trans- Trans- Transamerica america america Fidelity Corporation Fixed Cash FPA Fidelity Equity- Common Income Reserve Capital Magellan Income Stock Fund Fund Fund,Inc. Fund,Inc. Fund Total ____________ _______ _______ _________ _________ ________ _____ ADDITIONS Net investment income: Interest ................ $ 50,313 $ 4,629,606 $ 4,679,919 Dividends ............... 8,499,233 $ 55,325 $ 35,772 $ 256,668 $ 17,839 8,864,837 ___________ ___________ __________ ________ __________ ________ ____________ Net investment income ............. 8,549,546 4,629,606 55,325 35,772 256,668 17,839 13,544,756 Net change in unrealized appreciation (deprecia- tion) of investments .... 28,242,396 25,009 (160,696) 34,781 28,141,490 Appreciation realized on sale for transfer and dividend payout ......... 841,261 1,647 2,287 2,147 847,342 Contributions: Participants ............ 7,525,526 6,402,557 187,656 67,813 14,183,552 Employer (reduced by for- feitures of $631,596) .. 9,597,071 9,597,071 Interfund transfers ....... (2,299,769) 2,088,738 (41,723) (4,210) 372,421 (115,457) - ____________ ___________ __________ ________ __________ ________ ____________ Total additions ..... 52,456,031 13,120,901 13,602 58,218 658,336 7,123 66,314,211 DEDUCTIONS Distributions to partici- pants: Securities, at cost .... 14,366,872 43,451 141,588 46,406 14,598,317 Cash ................... 240,437 7,652,497 535,221 8,428,155 Dividend payout ........ 280,041 280,041 ____________ ___________ __________ ________ __________ ________ ____________ Total deductions .... 14,887,350 7,652,497 535,221 43,451 141,588 46,406 23,306,513 ____________ ___________ __________ ________ __________ ________ ____________ Net additions (deductions) 37,568,681 5,468,404 (521,619) 14,767 516,748 (39,283) 43,007,698 Net assets available for plan benefits at begin- ning of year ............ 172,677,268 53,887,680 1,872,214 429,948 1,315,630 468,651 230,651,391 ____________ ___________ __________ ________ __________ ________ ____________ NET ASSETS AVAILABLE FOR PLAN BENEFITS AT END OF YEAR $210,245,949 $59,356,084 $1,350,595 $444,715 $1,832,378 $429,368 $273,659,089 ============ =========== ========== ======== ========== ======== ============ See notes to financial statements
Page 11 TRANSAMERICA CORPORATION EMPLOYEES STOCK SAVINGS PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS Year Ended December 31, 1991
Trans- Trans- Transamerica america america Fidelity Corporation Fixed Cash FPA Fidelity Equity- Common Income Reserve Capital Magellan Income Stock Fund Fund Fund,Inc. Fund,Inc. Fund Total ____________ _______ _______ _________ _________ ________ _____ ADDITIONS Net investment income: Interest ................ $ 82,639 $ 4,409,882 $ 4,492,521 Dividends ............... 8,317,549 $ 110,939 $ 24,480 $ 107,138 $ 18,623 8,578,729 ____________ ___________ __________ ________ __________ ________ ____________ Net investment income ............. 8,400,188 4,409,882 110,939 24,480 107,138 18,623 13,071,250 Net change in unrealized appreciation of invest- ments ................... 27,622,095 146,634 209,839 76,889 28,055,457 Appreciation realized on sale for transfer and dividend payout ......... 325,483 419 424 326,326 Contributions: Participants ............ 9,987,225 5,668,223 148,754 57,665 15,861,867 Employer (reduced by for- feitures of $434,933) .. 9,709,476 9,709,476 Interfund transfers ....... (574,904) 306,794 (2,367) 208,285 62,192 - ____________ ___________ __________ ________ __________ ________ ____________ Total additions ..... 55,469,563 10,384,899 108,572 171,114 674,435 215,793 67,024,376 DEDUCTIONS Distributions to partici- pants: Securities, at cost .... 14,592,510 7,800 53,081 48,339 14,701,730 Cash ................... 248,800 7,706,595 241,237 8,196,632 Dividend payout ........ 5,115,055 5,115,055 ____________ ___________ __________ ________ __________ ________ ____________ Total deductions .... 19,956,365 7,706,595 241,237 7,800 53,081 48,339 28,013,417 ____________ ___________ __________ ________ __________ ________ ____________ Net additions (deductions) 35,513,198 2,678,304 (132,665) 163,314 621,354 167,454 39,010,959 Net assets available for plan benefits at begin- ning of year ............ 137,164,070 51,209,376 2,004,879 266,634 694,276 301,197 191,640,432 ____________ ___________ __________ ________ __________ ________ ____________ NET ASSETS AVAILABLE FOR PLAN BENEFITS AT END OF YEAR $172,677,268 $53,887,680 $1,872,214 $429,948 $1,315,630 $468,651 $230,651,391 ============ =========== ========== ======== ========== ======== ============ See notes to financial statements
Page 12 TRANSAMERICA CORPORATION EMPLOYEES STOCK SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS Three Years Ended December 31, 1993 NOTE A--Description of the Plan The Transamerica Corporation Employees Stock Savings Plan (the Plan) is an employee stock ownership plan with provisions for pretax salary deferrals under Section 401(k) of the Internal Revenue Code. Substantially all full- time salaried employees of Transamerica Corporation (the Corporation) and its subsidiaries may participate upon completion of one year of service. Subject to certain restrictions, participants generally may defer 1% to 6% of their salaries and contribute that amount to the Plan. These salary deferrals are matched at 75% by employer contributions. In addition, subject to certain restrictions, prior to January 1, 1992, participants were permitted to defer an amount from their salaries equivalent to the amount of cash dividends they periodically received as distributions from the Plan. These salary deferrals were not matched by employer contributions. Effective January 1, 1993, most non-highly compensated employees (as defined) are permitted to defer an additional 1% to 6% of their salaries as contributions to the Plan, and if Plan non-discrimination tests permit, highly compensated employees may defer an additional 1% of their salaries as contributions to the Plan. These additional contributions are not matched by the employer. Through December 31, 1992, participant contributions under the Plan were invested, as directed by the participant, either entirely in the Corporation's common stock or in the Transamerica Fixed Income Fund or split between these two alternatives. Participants age 55 or older could elect certain additional investment alternatives. All employer matching contributions under the Plan are invested in the Corporation's common stock, except as described in the next paragraph. Effective January 1, 1993, participants also are permitted to direct that their salary deferrals be invested in any of six additional investment alternatives: the Transamerica Cash Reserve Fund, the Transamerica Bond Fund, the Dodge & Cox Balanced Fund, the T. Rowe Price Equity Income Fund, the Transamerica Equity Index Fund, and the Transamerica Equity Fund. Beginning February 1, 1993, participants age 60 or older may redirect the investment of all or part of their employer matching contributions from the Corporation's common stock to any of the other available investment alternatives. Beginning July 1, 1993, eligible participants may, subject to certain restrictions, apply for loans from their plan accounts. Loan repayments are deposited back into the participant's plan accounts and allocated to the various investment funds according to the participant's election for allocation of pretax contributions. Loans from the Company matching account are not permitted. The Corporation and its participating subsidiaries, including Transamerica Life Insurance and Annuity Company (the issuer of the group pension contract under which the Transamerica Fixed Income Fund is maintained and the sponsoring company for the Transamerica Bond Fund, Transamerica Equity Fund and Transamerica Equity Index Fund), are defined as parties in interest Page 13 TRANSAMERICA CORPORATION EMPLOYEES STOCK SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS (Continued) Three Years Ended December 31, 1993 NOTE A--Description of the Plan (Continued) with respect to the Plan under the Employee Retirement Income Security Act of 1974 (ERISA). Transactions between the Plan and such parties in interest are intended to qualify for one or more of the prohibited transaction exemptions under ERISA. The Plan provides that participants acquire a vested interest in the employer account balances based upon their years of service with the Corporation or its participating subsidiaries. If a participant terminates employment before full vesting, the nonvested portion of the participant's interest will be forfeited. The Corporation has the right to change or terminate the Plan at any time. In the event the Plan is terminated, the Plan provides for full vesting of all participants' employer accounts. During 1993, the Corporation completed the sale of its subsidiary, Transamerica Insurance Group. Account balances of the participating employees of Transamerica Insurance Group were transferred to the stock savings plan of the new company, TIG Holdings, Inc., after completion of the initial public offering in April 1993. NOTE B--Significant Accounting Policies Accounting for Investments: The Plan's investment in the Corporation's common stock is valued at the closing price on the last business day of the year on the New York Stock Exchange Composite Transactions. Transamerica Fixed Income Fund is valued at cost plus accrued interest income and Transamerica Cash Reserve Fund is valued at cost, which approximates market value. Shares of Transamerica Bond Fund, Transamerica Equity Fund, Transamerica Equity Index Fund, Dodge & Cox Balanced Fund, T. Rowe Price Equity Income Fund, FPA Capital Fund, Inc., Fidelity Magellan Fund, Inc. and Fidelity Equity-Income Fund are valued at the net asset value per share reported by the Fund at December 31. Investment transactions are accounted for on the date the securities are purchased or sold (trade date). Repurchases of shares within the Plan are accounted for at the average monthly price of the shares in the month they are sold by employees or forfeited to the Plan. The price is calculated as the average of the price of the stock as listed in the New York Stock Exchange composite transactions as determined by the Plan administrator in a uniform and nondiscriminatory manner. The cost of shares sold or distributed is determined on an average cost basis. Dividend income from the Corporation's common stock and shares of Dodge & Cox Balance Fund, T. Rowe Price Equity Income Fund, FPA Capital Fund, Inc., Fidelity Magellan Fund, Inc. and Fidelity Equity-Income Fund is recorded on the ex-dividend date. Dividend income from Transamerica Cash Reserve Fund is accrued as earned and interest income from Transamerica Fixed Income Fund, Bank of America's Short Term Investment Fund Page 14 TRANSAMERICA CORPORATION EMPLOYEES STOCK SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS (Continued) Three Years Ended December 31, 1993 NOTE B--Significant Accounting Policies (Continued) (cash equivalent) and from participant loans is accrued as earned. Interest on participant loans is calculated at the Bank of America prime rate plus 1%. Expenses: All Plan administrative expenses are paid by the Corporation and its participating subsidiaries. Income Taxes: The Plan is qualified under section 401(a) of the Code, and its related trust and custodial accounts are exempt from federal income tax, under section 501(a) of the Code. Participants are not subject to income tax on employer contributions, contributions made through salary deferrals, or income credited to their accounts until these amounts are distributed. NOTE C--Reportable Transactions Changes in the Plan's investment in Transamerica Corporation Common Stock during each of the three years in the period ended December 31, 1993 are summarized as follows: Shares Cost ______ ____ Balance at January 1, 1991 . 4,122,700 $120,941,866 Purchases .................. 686,631 23,851,836 Sale for dividend payout ... (14,910) (389,979) Transfers .................. (20,941) (584,944) Distributions .............. (510,404) (15,011,941) _________ ____________ Balance at December 31, 1991 4,263,076 128,806,838 Purchases .................. 599,598 25,693,619 Sale for dividend payout ... 120 2,982 Transfers .................. (55,890) (1,566,155) Distributions .............. (486,530) (14,985,090) _________ ____________ Balance at December 31, 1992 4,320,374 137,952,194 Purchases .................. 426,186 22,288,648 Sale for transfer .......... (464,385) (14,210,571) Sale for loan distribution . (51,596) (1,834,569) Distributions .............. (210,069) (6,627,759) Market value of forfeiture . (5,549) (301,483) Transamerica Insurance Group distribution ....... (1,027,223) (35,060,574) _________ ____________ Balance at December 31, 1993 2,987,738 $102,205,886 ========= ============ Page 15 TRANSAMERICA CORPORATION EMPLOYEES STOCK SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS (Continued) Three Years Ended December 31, 1993 NOTE C--Reportable Transactions (Continued) During 1993 there were 58 open market purchases of Transamerica Corporation Common Stock totaling 301,585 shares at a cost of $15,806,536 and 13 open market sales of Transamerica Corporation common stock totaling 392,680 shares at a cost of $20,134,568. For Transamerica Fixed Income there were 129 purchases totaling $15,089,450 and 45 sales totaling $14,599,959. These constitute a series of transactions in excess of 5% of the current value of the Plan's assets, which are defined as category (iii) reportable transactions under ERISA. Bank of America NT & SA, as Trustee for the Plan, temporarily invests certain cash receipts of the plan in Bank of America's Short Term Investment Fund prior to investing the funds in their respective investments. During 1993 there were 534 individual purchases of Short Term Investment Fund units totaling $33,336,526 and 479 sales totaling $34,210,744 each of which constitutes a series of transactions in excess of 5% of the current value of the Plan's assets, and which are defined as category (iii) reportable transactions under ERISA. There were no category (i), (ii) or (iv) reportable transactions during 1993. The Plan incurred no expenses, and realized no gain or loss except for interest earned during the period the units were held by the Plan, on these transactions. NOTE D--Changes in Unrealized Appreciation (Depreciation) of Investments The changes in unrealized appreciation (depreciation) of investments result from fluctuations in the market value of securities held. The following table shows the unrealized appreciation (depreciation) of investments at December 31, 1993, 1992 and 1991, and the changes in unrealized appreciation (depreciation). Page 16 TRANSAMERICA CORPORATION EMPLOYEES STOCK SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS (Continued) Three Years Ended December 31, 1993 NOTE D--Changes in Unrealized Appreciation (Depreciation) of Investments (Continued) (Part 1 of 2)
Transamerica Life Insurance & Annuity Transamerica _____________________________________ Corporation Equity Common Bond Equity Index Stock Fund Fund Fund ____________ ____ ______ ______ Unrealized appreciation (depreciation) at January 1, 1991 ......................... $13,561,236 Increase in unrealized appreciation ................. 31,109,030 Appreciation realized on sale for dividend payout .......... (134,876) Appreciation realized on sale for transfer ................. (190,607) Amounts distributed to partici- pants ........................ (3,161,452) ___________ Net increase in unrealized appreciation in 1991 ......... 27,622,095 ___________ UNREALIZED APPRECIATION AT DECEMBER 31, 1991 41,183,331 Increase (decrease) in unrealized appreciation ...... 35,223,333 Appreciation realized on sale for dividend payout .......... 1,233 Appreciation realized on sale for transfer ................. (842,494) Amounts distributed to partici- pants ........................ (6,139,676) ___________ Net increase (decrease) in unrealized appreciation in 1992 ......................... 28,242,396 ___________ UNREALIZED APPRECIATION AT DECEMBER 31, 1992 69,425,727 Increase in unrealized appreciation ................. 32,282,541 $193,694 $1,337,865 $147,878 Appreciation realized on sale for transfer ................. (9,182,026) (7,411) (20,101) (7,429) Appreciation realized on sale for loan ..................... (1,172,099) (7,373) (21,710) (4,273) Amounts distributed to partici- pants ........................ (4,495,240) (3,605) (13,316) (823) Transamerica Insurance Group transfer ..................... (19,510,647) (3,529) (17,504) (11,100) ___________ ________ __________ ________ Net increase (decrease) in unrealized appreciation in 1993 ......................... (2,077,471) 171,776 1,265,234 124,253 ___________ ________ __________ ________ UNREALIZED APPRECIATION AT DECEMBER 31, 1993 $67,348,256 $171,776 $1,265,234 $124,253 =========== ======== ========== ========
Page 17 TRANSAMERICA CORPORATION EMPLOYEES STOCK SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS (Continued) Three Years Ended December 31, 1993 NOTE D--Changes in Unrealized Appreciation (Depreciation) of Investments (Continued) (Part 2 of 2)
T. Rowe Dodge Price Fidelity & Cox Equity FPA Fidelity Equity- Balanced Income Capital Magellan Income Fund Fund Fund, Inc. Fund,Inc. Fund Total ________ _______ __________ _________ ________ _____ Unrealized appreciation (depreciation) at January 1, 1991 ......................... $ (7,591) $ 22,639 $(74,832) $13,501,452 Increase in unrealized appreciation ................. 149,882 219,028 76,610 31,554,550 Appreciation realized on sale for dividend payout .......... (134,876) Appreciation realized on sale for transfer ................. (419) (424) (191,450) Amounts distributed to partici- pants ........................ (3,248) (8,770) 703 (3,172,767) ________ ________ ________ ___________ Net increase in unrealized appreciation in 1991 ......... 146,634 209,839 76,889 28,055,457 ________ ________ ________ ___________ UNREALIZED APPRECIATION AT DECEMBER 31, 1991 139,043 232,478 2,057 41,556,909 Increase (decrease) in unrealized appreciation ...... 48,523 (146,690) 40,110 35,165,276 Appreciation realized on sale for dividend payout .......... 1,233 Appreciation realized on sale for transfer ................. (1,647) (2,287) (2,147) (848,575) Amounts distributed to partici- pants ........................ (21,867) (11,719) (3,182) (6,176,444) ________ _______ ________ ___________ Net increase (decrease) in unrealized appreciation in 1992 ......................... 25,009 (160,696) 34,781 28,141,490 ________ ________ ________ ___________ UNREALIZED APPRECIATION AT DECEMBER 31, 1992 164,052 71,782 36,838 69,698,399 Increase in unrealized appreciation ................. $124,136 $144,889 1,650 168,984 50,271 34,451,908 Appreciation realized on sale for transfer ................. (19,478) (10,937) (144,562) (198,947) (65,025) (9,655,916) Appreciation realized on sale for loan ..................... (10,249) (10,975) (3,582) (361) (889) (1,231,511) Amounts distributed to partici- pants ........................ (5,051) 5,567 (1,572) (4,403) (2,547) (4,520,990) Transamerica Insurance Group transfer ..................... (14,539) (30,978) (15,986) (37,055) (18,648) (19,659,986) ________ ________ ________ ________ ________ ___________ Net increase (decrease) in unrealized appreciation in 1993 ......................... 74,819 97,566 (164,052) (71,782) (36,838) (616,495) ________ ________ ________ ________ _______ ___________ UNREALIZED APPRECIATION AT DECEMBER 31, 1993 $ 74,819 $ 97,566 $ - $ - $ - $69,081,904 ======== ======== ======== ======== ======== ===========
EX-23 2 Page 1 EXHIBIT EX-23 CONSENT OF INDEPENDENT AUDITORS We consent to the incorporation by reference in Registration Statements on Form S-8 (File Nos. 2-83724, 33-12324 and 33-38267) of our report dated March 25, 1994 on the financial statements included in the Annual Report on Form 11-K of Transamerica Corporation Employees Stock Savings Plan for the year ended December 31, 1993. Ernst & Young Los Angeles, California March 31, 1994 -----END PRIVACY-ENHANCED MESSAGE-----