-----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, RNV/YMvg6J0N8QAcRJwfY3tVYefiq0Q5bQ7EoKUO2mSBz+7jKWnKX78sHdHHZe0x hCuog27+zHbDVRVYk5M+5w== 0000099189-97-000003.txt : 19970329 0000099189-97-000003.hdr.sgml : 19970329 ACCESSION NUMBER: 0000099189-97-000003 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19961231 FILED AS OF DATE: 19970328 SROS: NYSE SROS: PSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: TRANSAMERICA CORP CENTRAL INDEX KEY: 0000099189 STANDARD INDUSTRIAL CLASSIFICATION: LIFE INSURANCE [6311] IRS NUMBER: 940932740 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 11-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-02964 FILM NUMBER: 97565985 BUSINESS ADDRESS: STREET 1: 600 MONTGOMERY ST CITY: SAN FRANCISCO STATE: CA ZIP: 94111 BUSINESS PHONE: 4159834000 MAIL ADDRESS: STREET 1: 600 MONTGOMERY STREET CITY: SAN FRANCISCO STATE: CA ZIP: 94111 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, 33-38267 and 33-55587 _____________________ For the Fiscal Year Ended December 31, 1996 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 LLP, Independent Auditors Statement of Net Assets Available for Plan Benefits December 31, 1996 and 1995 Statement of Changes in Net Assets Available for Plan Benefits - Years ended December 31, 1996, 1995 and 1994 Notes to Financial Statements - December 31, 1996 (b) Exhibit filed as a part of this report: 23.1 Consent of Ernst & Young LLP to the incorporation by reference of their report dated March 21, 1997 in Transamerica Corporation's Registration Statements on Form S-8 (File Nos. 2-83724, 33-12324, 33-38267 and 33-55587). 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 27, 1997 Page 3 FINANCIAL STATEMENTS For ANNUAL REPORT ON FORM 11-K TRANSAMERICA CORPORATION EMPLOYEES STOCK SAVINGS PLAN Year Ended December 31, 1996 Page 4 REPORT OF ERNST & YOUNG LLP, 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 (the Plan) as of December 31, 1996 and 1995, 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, 1996. 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, 1996 and 1995, and the changes in its net assets available for plan benefits for each of the three years in the period ended December 31, 1996, in conformity with generally accepted accounting principles. Ernst & Young LLP Los Angeles, California March 21, 1997 Page 5 TRANSAMERICA CORPORATION EMPLOYEES STOCK SAVINGS PLAN STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS December 31, 1996 (Part 1 of 2)
Transamerica Life Insurance & Annuity Transamerica Transamerica __________________________________________________ Premier Corporation Fixed Equity Cash Common Bond Income Equity Index Reserve Stock Fund Fund Fund Fund Fund ____________ ____ ______ ______ ______ ____________ Investments: Transamerica Corporation Common Stock--at fair value (cost $128,357,251 for 3,021,573) shares) .......... $238,717,137 Transamerica Bond Fund--at fair value (cost $4,813,130 for 397,169 shares) .......... $5,620,882 Transamerica Fixed Income Fund--at cost plus accrued interest of $13,675,089, which approximates fair value ........................ $45,730,944 Transamerica Equity Fund--at fair value (cost $22,461,318 for 2,226,803 shares) ........ $36,837,936 Transamerica Equity Index Fund--at fair value (cost $4,924,707 for 407,652 shares) ...................... $6,984,976 Transamerica Premier Cash Reserve Fund--at cost, which approximates fair value ...... $4,486,994 Dodge & Cox Balanced Fund--at fair value (cost $7,797,914 for 159,303 shares) .......... T. Rowe Price Equity Income Fund--at fair value (cost $10,672,738 for 599,043 shares) ...................... Loans to participants ......... ____________ __________ ___________ ___________ __________ __________ Total investments ............. 238,717,137 5,620,882 45,730,944 36,837,936 6,984,976 4,486,994 Dividends receivable ............ 1,505,277 ____________ __________ ___________ ___________ __________ __________ NET ASSETS AVAILABLE FOR PLAN BENEFITS $240,222,414 $5,620,882 $45,730,944 $36,837,936 $6,984,976 $4,486,994 ============ ========== =========== =========== ========== ========== APPROXIMATE NUMBER OF PARTICIPATING EMPLOYEES 7,000 1,300 3,300 3,500 1,700 900 ===== ===== ===== ===== ===== === See notes to financial statements
Page 6 TRANSAMERICA CORPORATION EMPLOYEES STOCK SAVINGS PLAN STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS December 31, 1996 (Part 2 of 2)
T. Rowe Dodge Price & Cox Equity Balanced Income Participant Fund Fund Loans Total ________ _______ ___________ _____ Investments: Transamerica Corporation Common Stock--at fair value (cost $128,357,251 for 3,021,573) shares) .......... $238,717,137 Transamerica Bond Fund--at fair value (cost $4,813,130 for 397,169 shares) .......... 5,620,882 Transamerica Fixed Income Fund--at cost plus accrued interest of $13,675,089, which approximates fair value ........................ 45,730,944 Transamerica Equity Fund--at fair value (cost $22,461,318 for 2,226,803 shares) ........ 36,837,936 Transamerica Equity Index Fund--at fair value (cost $4,924,707 for 407,652 shares) ...................... 6,984,976 Transamerica Premier Cash Reserve Fund--at cost, which approximates fair value ...... 4,486,994 Dodge & Cox Balanced Fund--at fair value (cost $7,797,914 for 159,303 shares) .......... $9,529,502 9,529,502 T. Rowe Price Equity Income Fund--at fair value (cost $10,672,738 for 599,043 shares) ...................... $13,502,435 13,502,435 Loans to participants ......... $10,393,794 10,393,794 __________ ___________ ___________ ____________ Total investments ............. 9,529,502 13,502,435 10,393,794 371,804,600 Dividends receivable ............ 1,505,277 __________ ___________ ___________ ____________ NET ASSETS AVAILABLE FOR PLAN BENEFITS $9,529,502 $13,502,435 $10,393,794 $373,309,877 ========== =========== =========== ============ APPROXIMATE NUMBER OF PARTICIPATING EMPLOYEES 2,000 2,400 1,600 ===== ===== ===== See notes to financial statements
Page 7 TRANSAMERICA CORPORATION EMPLOYEES STOCK SAVINGS PLAN STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS December 31, 1995 (Part 1 of 2)
Transamerica Life Insurance & Annuity John Transamerica __________________________________________________ Hancock Corporation Fixed Equity Cash Common Bond Income Equity Index Reserve Stock Fund Fund Fund Fund Fund ____________ ____ ______ ______ ______ _______ Investments: Transamerica Corporation Common Stock--at fair value (cost $120,190,857 for 3,074,805 shares) ........... $224,076,383 Transamerica Bond Fund--at fair value (cost $4,085,077 for 347,480 shares) .......... $4,782,438 Transamerica Fixed Income Fund--at cost plus accrued interest of $15,115,530, which approximates fair value ........................ $48,502,439 Transamerica Equity Fund--at fair value (cost $16,661,300 for 1,872,290 shares) ........ $23,876,384 Transamerica Equity Index Fund--at fair value (cost $3,151,346 for 303,761 shares) ...................... $4,239,452 John Hancock Cash Reserve Fund--at cost, which approxi- mates fair value ............. $3,256,918 Dodge & Cox Balanced Fund--at fair value (cost $6,542,558 for 136,681 shares) .......... T. Rowe Price Equity Income Fund--at fair value (cost $7,636,693 for 447,346 shares) ...................... Loans to participants ......... ____________ __________ ___________ ___________ __________ __________ Total investments ............. 224,076,383 4,782,438 48,502,439 23,876,384 4,239,452 3,256,918 Dividends receivable ............ 1,537,402 Cash equivalents ................ 565,056 5,255 ____________ __________ ___________ ___________ __________ __________ NET ASSETS AVAILABLE FOR PLAN BENEFITS $226,178,841 $4,782,438 $48,502,439 $23,881,639 $4,239,452 $3,256,918 ============ ========== =========== =========== ========== ========== APPROXIMATE NUMBER OF PARTICIPATING EMPLOYEES 7,100 1,300 3,600 3,100 1,400 800 ===== ===== ===== ===== ===== === See notes to financial statements
Page 8 TRANSAMERICA CORPORATION EMPLOYEES STOCK SAVINGS PLAN STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS December 31, 1995 (Part 2 of 2)
T. Rowe Dodge Price & Cox Equity Balanced Income Participant Fund Fund Loans Total ________ _______ ___________ _____ Investments: Transamerica Corporation Common Stock--at fair value (cost $120,190,857 for 3,074,805 shares) ............ $224,076,383 Transamerica Bond Fund--at fair value (cost $4,085,077 for 347,480 shares) .......... 4,782,438 Transamerica Fixed Income Fund--at cost plus accrued interest of $15,115,530, which approximates fair value ........................ 48,502,439 Transamerica Equity Fund--at fair value (cost $16,661,300 for 1,872,290 shares) .......... 23,876,384 Transamerica Equity Index Fund--at fair value (cost $3,151,346 for 303,761 shares) ...................... 4,239,452 John Hancock Cash Reserve Fund--at cost, which approxi- mates fair value ............. 3,256,918 Dodge & Cox Balanced Fund--at fair value (cost $6,542,558 for 136,681 shares) ........... $7,462,800 7,462,800 T. Rowe Price Equity Income Fund--at fair value (cost $7,636,693 for 447,346 shares) ....................... $8,951,391 8,951,391 Loans to participants .......... $7,911,492 7,911,492 __________ __________ __________ ____________ Total investments ............. 7,462,800 8,951,391 7,911,492 333,059,697 Dividends receivable ............ 1,537,402 Cash equivalents ................ 570,311 __________ __________ __________ ____________ NET ASSETS AVAILABLE FOR PLAN BENEFITS $7,462,800 $8,951,391 $7,911,492 $335,167,410 ========== ========== ========== ============ APPROXIMATE NUMBER OF PARTICIPATING EMPLOYEES 1,800 2,000 1,500 ===== ===== ===== 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, 1996 (Part 1 of 2)
Transamerica Life Insurance & Annuity John Transamerica Transamerica ________________________________________________ Hancock Premier Corporation Fixed Equity Cash Cash Common Bond Income Equity Index Reserve Reserve Stock Fund Fund Fund Fund Fund Fund ____________ ____ _______ ______ ______ _______ ____________ ADDITIONS Net investment income: Interest ..................... $ 112,978 $ 3,129,336 $ 148,801 $ 16,194 Dividends .................... 6,067,765 ____________ ___________ __________ __________ Net investment income .... 6,180,743 3,129,336 148,801 16,194 Net realized investment gains and change in net unrealized appreciation of investments .. 11,395,695 $ 152,532 $ 7,390,655 $1,017,355 Contributions: Participants ................. 4,163,875 663,775 1,672,291 4,033,844 987,603 281,951 26,486 Loan repayments .............. 1,365,567 120,734 671,760 885,340 160,538 68,190 13,708 Employer (reduced by for- feitures of $324,244) ...... 8,504,613 Defaulted loans .............. Interfund transfers ............ (6,906,438) 313,611 (1,551,915) 3,217,194 1,166,937 (2,854,188) 4,450,966 Loan advances .................. (2,333,277) (235,212) (1,355,182) (951,122) (266,513) (109,261) (10,003) ____________ __________ __________ ___________ __________ __________ __________ Total additions .......... 22,370,778 1,015,440 2,566,290 14,575,911 3,065,920 (2,464,507) 4,497,351 DEDUCTIONS Distributions to participants: Securities, at cost .......... 8,228,451 Cash ......................... 98,754 176,996 5,337,785 1,619,614 320,396 792,411 10,357 ____________ __________ __________ ___________ __________ __________ __________ Total deductions ......... 8,327,205 176,996 5,337,785 1,619,614 320,396 792,411 10,357 ____________ __________ __________ ___________ __________ __________ __________ Net additions/(deductions) ..... 14,043,573 838,444 (2,771,495) 12,956,297 2,745,524 (3,256,918) 4,486,994 Net assets available for plan benefits at December 31, 1995 226,178,841 4,782,438 48,502,439 23,881,639 4,239,452 3,256,918 ____________ __________ ___________ ___________ __________ __________ __________ NET ASSETS AVAILABLE FOR PLAN BENEFITS AT DECEMBER 31, 1996 $240,222,414 $5,620,882 $45,730,944 $36,837,936 $6,984,976 $ $4,486,994 ============ ========== =========== =========== ========== ========== ========== 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, 1996 (Part 2 of 2)
T. Rowe Dodge Price & Cox Equity Balanced Income Participant Fund Fund Loans Total ________ ________ ___________ _____ ADDITIONS Net investment income: Interest .................... $ 747,490 $ 4,154,799 Dividends .................... $ 312,471 $ 385,916 6,766,152 __________ ___________ ___________ ____________ Net investment income .... 312,471 385,916 747,490 10,920,951 Net realized investment gains and change in net unrealized appreciation of investments .. 841,824 1,555,580 22,353,641 Contributions: Participants ................. 1,210,012 1,483,319 14,523,156 Loan repayments .............. 218,638 309,833 (3,814,308) Employer (reduced by for- feitures of $324,244) ...... 8,504,613 Defaulted loans .............. 376,919 376,919 Interfund transfers ............ 412,665 1,751,168 Loan advances .................. (274,858) (385,385) 5,920,813 __________ ___________ ___________ ____________ Total additions .......... 2,720,752 5,100,431 3,230,914 56,679,280 DEDUCTIONS Distributions to participants: Securities, at cost .......... 8,228,451 Cash ......................... 654,050 549,387 748,612 10,308,362 __________ ___________ ___________ ____________ Total deductions ......... 654,050 549,387 748,612 18,536,813 __________ ___________ ___________ ____________ Net additions/(deductions) ..... 2,066,702 4,551,044 2,482,302 38,142,467 Net assets available for plan benefits at December 31, 1995 7,462,800 8,951,391 7,911,492 335,167,410 __________ ___________ ___________ ____________ NET ASSETS AVAILABLE FOR PLAN BENEFITS AT DECEMBER 31, 1996 $9,529,502 $13,502,435 $10,393,794 $373,309,877 ========== =========== =========== ============ 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, 1995 (Part 1 of 2)
Transamerica Life Insurance & Annuity John Transamerica _________________________________________________ Hancock Corporation Fixed Equity Cash Common Bond Income Equity Index Reserve Stock Fund Fund Fund Fund Fund ____________ ____ _______ ______ ______ _________ ADDITIONS Net investment income: Interest ..................... $ 63,635 $ 3,179,887 $ 148,147 Dividends .................... 6,253,457 ____________ ___________ __________ Net investment income .... 6,317,092 3,179,887 148,147 Net realized investment gains and change in net unrealized appreciation of investments .. 66,849,524 $ 764,570 $ 6,082,744 $1,012,391 Contributions: Participants ................. 4,321,150 581,499 2,375,423 2,959,499 667,139 272,627 Loan recontribution .......... 1,253,637 91,018 609,699 537,233 119,455 68,378 Employer (reduced by for- feitures of $402,690) ...... 8,037,553 Interfund transfers ............ (9,177,146) 563,497 3,276,844 2,102,343 142,863 1,960,347 Loan disbursements ............. (1,345,349) (124,961) (1,208,934) (430,533) (107,425) (202,722) ____________ __________ __________ ___________ __________ __________ Total additions .......... 76,256,461 1,875,623 8,232,919 11,251,286 1,834,423 2,246,777 DEDUCTIONS Distributions to participants: Securities, at cost .......... 7,868,446 188,362 693,154 239,167 Cash ......................... 140,251 4,854,941 1,223,577 ____________ __________ __________ ___________ __________ __________ Total deductions ......... 8,008,697 188,362 4,854,941 693,154 239,167 1,223,577 ____________ __________ __________ ___________ __________ __________ Net additions .................. 68,247,764 1,687,261 3,377,978 10,558,132 1,595,256 1,023,200 Net assets available for plan benefits at December 31, 1994 157,931,077 3,095,177 45,124,461 13,323,507 2,644,196 2,233,718 ____________ __________ ___________ ___________ __________ __________ NET ASSETS AVAILABLE FOR PLAN BENEFITS AT DECEMBER 31, 1995 $226,178,841 $4,782,438 $48,502,439 $23,881,639 $4,239,452 $3,256,918 ============ ========== =========== =========== ========== ========== See notes to financial statements
Page 12 TRANSAMERICA CORPORATION EMPLOYEES STOCK SAVINGS PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS Year Ended December 31, 1995 (Part 2 of 2)
T. Rowe Dodge Price & Cox Equity Balanced Income Participant Fund Fund Loans Total ________ ________ ___________ _____ ADDITIONS Net investment income: Interest ..................... $ 570,839 $ 3,962,508 Dividends .................... $ 385,103 $ 470,457 7,109,017 __________ __________ __________ ____________ Net investment income .... 385,103 470,457 570,839 11,071,525 Net realized investment gains and change in net unrealized appreciation of investments .. 1,032,118 1,493,733 77,235,080 Contributions: Participants ................. 1,140,779 1,275,354 13,593,470 Loan recontribution .......... 199,863 237,989 (3,117,272) Employer (reduced by for- feitures of $402,690) ...... 8,037,553 Interfund transfers ............ 508,526 622,726 Loan disbursements ............ (255,767) (226,609) 3,902,300 __________ __________ __________ ____________ Total additions .......... 3,010,622 3,873,650 1,355,867 109,937,628 DEDUCTIONS Distributions to participants: Securities, at cost .......... 878,789 451,755 10,319,673 Cash ......................... 517,566 6,736,335 __________ __________ __________ ____________ Total deductions ......... 878,789 451,755 517,566 17,056,008 __________ __________ __________ ____________ Net additions .................. 2,131,833 3,421,895 838,301 92,881,620 Net assets available for plan benefits at December 31, 1994 5,330,967 5,529,496 7,073,191 242,285,790 __________ __________ __________ ____________ NET ASSETS AVAILABLE FOR PLAN BENEFITS AT DECEMBER 31, 1995 $7,462,800 $8,951,391 $7,911,492 $335,167,410 ========== ========== ========== ============ See notes to financial statements
Page 13 TRANSAMERICA CORPORATION EMPLOYEES STOCK SAVINGS PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS Year Ended December 31, 1994 (Part 1 of 2)
Transamerica Life Insurance & Annuity John Transamerica _________________________________________________ Hancock Corporation Fixed Equity Cash Common Bond Income Equity Index Reserve Stock Fund Fund Fund Fund Fund ____________ ____ _______ ______ ______ ________ ADDITIONS Net investment income: Interest ..................... $ 43,895 $ 3,181,205 Dividends .................... 6,151,722 $ 97,271 ____________ ___________ __________ Net investment income .... 6,195,617 3,181,205 97,271 Net realized investment gains and change in net unrealized appreciation (depreciation) of investments ............... (24,352,000) $ (190,820) $ 507,571 $ 22,473 Contributions: Participants ................. 4,575,031 645,681 2,250,526 2,527,598 645,672 259,149 Loan recontribution .......... 1,094,361 77,012 485,824 299,834 98,409 45,534 Employer (reduced by for- feitures of $238,558) ...... 8,019,375 Interfund transfers ............ (1,265,560) (301,619) 540,764 800,926 (170,004) 147,978 Loan disbursements ............. (1,415,247) (108,388) (1,163,217) (342,484) (75,855) (113,603) ____________ __________ ___________ ___________ __________ __________ Total additions .......... (7,148,423) 121,866 5,295,102 3,793,445 520,695 436,329 DEDUCTIONS Distributions to participants: Securities, at cost .......... 6,413,511 387,061 371,303 78,165 Cash ......................... 105,314 4,761,331 1,338,028 ____________ __________ ___________ ___________ __________ __________ Total deductions ......... 6,518,825 387,061 4,761,331 371,303 78,165 1,338,028 ____________ __________ ___________ ___________ __________ __________ Net additions (deductions) ..... (13,667,248) (265,195) 533,771 3,422,142 442,530 (901,699) Net assets available for plan benefits at December 31, 1993 171,598,325 3,360,372 44,590,690 9,901,365 2,201,666 3,135,417 ____________ __________ ___________ ___________ __________ __________ NET ASSETS AVAILABLE FOR PLAN BENEFITS AT DECEMBER 31, 1994 $157,931,077 $3,095,177 $45,124,461 $13,323,507 $2,644,196 $2,233,718 ============ ========== =========== =========== ========== ========== See notes to financial statements
Page 14 TRANSAMERICA CORPORATION EMPLOYEES STOCK SAVINGS PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS Year Ended December 31, 1994 (Part 2 of 2)
T. Rowe Dodge Price & Cox Equity Balanced Income Participant Fund Fund Loans Total ________ ________ ___________ _____ ADDITIONS Net investment income: Interest ..................... $ 468,102 $ 3,693,202 Dividends .................... $ 229,155 $ 426,629 6,904,777 __________ __________ __________ ____________ Net investment income .... 229,155 426,629 468,102 10,597,979 Net realized investment gains and change in net unrealized appreciation (depreciation) of investments ............... (126,177) (222,945) (24,361,898) Contributions: Participants ................. 1,074,570 1,200,158 13,178,385 Loan recontribution .......... 141,133 166,322 (2,408,429) Employer (reduced by for- feitures of $238,558) ...... 8,019,375 Interfund transfers ............ 365,994 (118,479) Loan disbursements ........... (147,487) (144,719) 3,511,000 __________ __________ __________ ____________ Total additions .......... 1,537,188 1,306,966 1,570,673 7,433,841 DEDUCTIONS Distributions to participants: Securities, at cost .......... 588,747 263,970 8,102,757 Cash ......................... 437,310 6,641,983 __________ __________ __________ ____________ Total deductions ......... 588,747 263,970 437,310 14,744,740 __________ __________ __________ ____________ Net additions (deductions) ..... 948,441 1,042,996 1,133,363 (7,310,899) Net assets available for plan benefits at December 31, 1993 4,382,526 4,486,500 5,939,828 249,596,689 __________ __________ __________ ____________ NET ASSETS AVAILABLE FOR PLAN BENEFITS AT DECEMBER 31, 1994 $5,330,967 $5,529,496 $7,073,191 $242,285,790 ========== ========== ========== ============ See notes to financial statements
Page 15 TRANSAMERICA CORPORATION EMPLOYEES STOCK SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS December 31, 1996 NOTE A--Description of the Plan The Transamerica Corporation Employees Stock Savings Plan (the Plan) is a profit-sharing plan with provisions for pretax salary deferrals under Section 401(k) of the Internal Revenue Code (the Code). (Prior to January 1, 1994, the Plan was an employee stock ownership plan which permitted Section 401(k) salary deferrals.) Substantially all 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. Most non-highly compensated employees (as defined) are permitted to defer an additional 1% to 6% of their salaries as contributions to the Plan. Effective January 1, 1997, highly compensated employees (as defined) are permitted to defer an additional 1% to 4% of their salaries as contributions to the Plan. These additional contributions are not matched by the employer. Participant contributions under the Plan are invested, as directed by the participant, in any of eight investment alternatives: the Corporation's Common Stock, the Transamerica Premier Cash Reserve Fund (formerly John Hancock Cash Reserve Fund), the Transamerica Bond Fund, the Dodge & Cox Balanced Fund, the T. Rowe Price Equity Income Fund, the Transamerica Fixed Income Fund, the Transamerica Equity Index Fund, and the Transamerica Equity Fund. All employer matching contributions are invested in the Corporation's common stock. 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. 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 employer 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 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. Page 16 TRANSAMERICA CORPORATION EMPLOYEES STOCK SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS (Continued) December 31, 1996 NOTE A--Description of the Plan (Continued) 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 account balances. 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. The Transamerica Fixed Income Fund is valued at cost plus accrued interest income and the Transamerica Premier Cash Reserve Fund (formerly John Hancock Cash Reserve Fund) is valued at cost, which approximates fair value. Shares of the Transamerica Bond Fund, the Transamerica Equity Fund, the Transamerica Equity Index Fund, the Dodge & Cox Balanced Fund, and the T. Rowe Price 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 Balanced Fund and T. Rowe Price Equity Income Fund is recorded on the ex-dividend date. Dividend income from Transamerica Premier Cash Reserve Fund (formerly John Hancock Cash Reserve Fund) is accrued as earned and interest income from Transamerica Fixed Income Fund, Northern Trust's Short Term Investment Fund (cash equivalent) and from participant loans is accrued as earned. Interest charged on participant loans is at a fixed rate and is calculated at the Northern Trust prime rate plus one percent. Expenses: All Plan administrative expenses are paid by the Corporation and its participating subsidiaries. Page 17 TRANSAMERICA CORPORATION EMPLOYEES STOCK SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS (Continued) December 31, 1996 NOTE B--Significant Accounting Policies (Continued) Income Taxes: The Internal Revenue Service has issued a determination letter dated June 13, 1996, that the Plan qualifies, in form, under Section 401(a) of the Internal Revenue Code of 1986, as amended (the "Code"), and the underlying trust is, therefore, exempt from federal income taxes under Section 501(a) of the Code. Under a tax-qualified plan, 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. Certain amounts reported in the financial statements are based on management estimates. Such amounts may ultimately differ from those estimates. 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, 1996 are summarized as follows: Shares Cost ______ ____ Balance at December 31, 1993 2,987,738 $102,205,886 Purchases .................. 398,287 20,536,045 Sale for transfer .......... (34,790) (1,132,876) Sale for loan distribution . (27,428) (1,080,828) Distributions .............. (186,135) (6,413,511) Fair value of forfeiture ... (5,655) (288,040) _________ ____________ Balance at December 31, 1994 3,132,017 113,826,676 Purchases .................. 338,636 20,825,900 Sale for transfer .......... (152,156) (5,226,403) Sale for loan distribution . (21,772) (974,429) Distributions .............. (215,815) (7,868,446) Fair value of forfeiture ... (6,105) (392,441) _________ ____________ Balance at December 31, 1995 3,074,805 120,190,857 Purchases .................. 290,971 21,873,028 Sale for transfer .......... (99,125) (3,695,996) Sale for loan distribution . (30,706) (1,473,526) Distributions .............. (210,255) (8,228,446) Fair value of forfeiture ... (4,117) (308,666) _________ ____________ Balance at December 31, 1996 3,021,573 $128,357,251 ========= ============ Page 18 TRANSAMERICA CORPORATION EMPLOYEES STOCK SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS (Continued) December 31, 1996 NOTE C--Reportable Transactions (Continued) In January 1996, the Plan terminated its agreement with Bank of America, its trustee, and transferred all the Plan's assets totaling $334,275,395 to its new trustee, Northern Trust Company. This constituted a single transaction in excess of 5% of the current value Plan's assets, which is defined as a category (i) reportable transaction under ERISA. During 1996, there were 30 open market purchases of Transamerica Corporation Common Stock totaling 200,649 shares at a cost of $14,937,328 and 20 open market sales of Transamerica Corporation Common Stock totaling 128,290 shares for $9,981,978. For the Transamerica Fixed Income Fund there were 92 purchases totaling $8,385,501 and 371 sales totaling $11,861,777. 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. Northern Trust Company, as Trustee for the Plan, temporarily invests certain cash receipts of the plan in Northern Trust's Short Term Investment Fund prior to investing the funds in the participants' selected investments. During 1996, there were $18,411,622 in purchases of the Short Term Investment Fund and $17,278,010 in sales 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 (ii) or (iv) reportable transactions during 1996. 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 fair value of securities held. The following table shows the unrealized appreciation (depreciation) of investments at December 31, 1996, 1995 and 1994, and the changes in unrealized appreciation (depreciation). Page 19 TRANSAMERICA CORPORATION EMPLOYEES STOCK SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS (Continued) December 31, 1996 NOTE D--Changes in Unrealized Appreciation (Depreciation) of Investments (Continued)
Transamerica Life Insurance & Annuity T. Rowe Transamerica _____________________________________ Dodge Price Corporation Equity & Cox Equity Common Bond Equity Index Balanced Income Stock Fund Fund Fund Fund Fund Total ____________ ____ ______ ______ ________ _______ _____ UNREALIZED APPRECIATION AT DECEMBER 31, 1993 $ 67,348,256 $ 171,776 $ 1,265,234 $ 124,253 $ 74,819 $ 97,566 $ 69,081,904 Net increase (decrease) in unrealized appreciation in 1994 ......................... (25,357,091) (185,366) 441,730 8,548 (133,943) (229,951) (25,456,073) ____________ _________ ___________ __________ __________ __________ ____________ UNREALIZED APPRECIATION (DEPRECIATION) AT DECEMBER 31, 1994 41,991,165 (13,590) 1,706,964 132,801 (59,124) (132,385) 43,625,831 Net increase in unrealized appreciation in 1995 ......... 61,894,361 710,951 5,508,120 955,305 979,366 1,447,083 71,495,186 ____________ _________ ___________ __________ __________ __________ ____________ UNREALIZED APPRECIATION AT DECEMBER 31, 1995 103,885,526 697,361 7,215,084 1,088,106 920,242 1,314,698 115,121,017 Net increase in unrealized appreciation in 1996 ......... 6,474,360 110,391 7,161,534 972,163 811,346 1,514,999 17,044,793 ____________ _________ ___________ __________ __________ __________ ____________ UNREALIZED APPRECIATION AT DECEMBER 31, 1996 $110,359,886 $ 807,752 $14,376,618 $2,060,269 $1,731,588 $2,829,697 $132,165,810 ============ ========= =========== ========== ========== ========== ============
EX-23.1 2 EXHIBIT 23.1 CONSENT OF INDEPENDENT AUDITORS We consent to the incorporation by reference in Registration Statements on Form S-8 (File Nos. 2-83724, 33-12324, 33-38267 and 33-55587) pertaining to the Transamerica Corporation Employee Stock Savings Plan of our report dated March 21, 1997, with respect to the financial statements of Transamerica Corporation Employee Stock Savings Plan included in this Annual Report on Form 11-K for the year ended December 31, 1996. Ernst & Young LLP Los Angeles, California March 24, 1997 -----END PRIVACY-ENHANCED MESSAGE-----