-----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, N96E+J3+FEI75WAiq6hH/YxnhxaXJ136qNswGxQvMmI/vErNt2rAe1DqPMwiLJLh CV7UTXKsDHWUwyNze4QndA== 0001005477-98-002109.txt : 19980630 0001005477-98-002109.hdr.sgml : 19980630 ACCESSION NUMBER: 0001005477-98-002109 CONFORMED SUBMISSION TYPE: 10-K405/A PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19971231 FILED AS OF DATE: 19980629 SROS: NYSE SROS: PCX FILER: COMPANY DATA: COMPANY CONFORMED NAME: TRAVELERS GROUP INC CENTRAL INDEX KEY: 0000831001 STANDARD INDUSTRIAL CLASSIFICATION: FIRE, MARINE & CASUALTY INSURANCE [6331] IRS NUMBER: 521568099 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-K405/A SEC ACT: SEC FILE NUMBER: 001-09924 FILM NUMBER: 98657058 BUSINESS ADDRESS: STREET 1: 388 GREENWICH ST STREET 2: LEGAL DEPT 20TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10013 BUSINESS PHONE: 2128168000 MAIL ADDRESS: STREET 1: 388 GREENWICH ST STREET 2: LEGAL DEPT 20TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10013 FORMER COMPANY: FORMER CONFORMED NAME: TRAVELERS INC DATE OF NAME CHANGE: 19940103 FORMER COMPANY: FORMER CONFORMED NAME: PRIMERICA CORP /NEW/ DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: COMMERCIAL CREDIT GROUP INC DATE OF NAME CHANGE: 19890102 10-K405/A 1 FORM 10-K405/A-1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ----------------- FORM 10-K/A-1 |X| ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 1997 OR |_| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______ ---------------- Commission file number 1-9924 ---------------- TRAVELERS GROUP INC. (Exact name of registrant as specified in its charter) Delaware 52-1568099 (State or other jurisdiction of (I.R.S. Employer Identification No.) incorporation or organization) 388 Greenwich Street, New York, New York 10013 (Address of principal executive offices) (Zip Code) (212) 816-8000 (Registrant's telephone number, including area code) ---------------- Securities registered pursuant to Section 12(b) of the Act:
Title of each class Name of each exchange on which registered ------------------- ----------------------------------------- Common Stock, par value $ .01 per share New York Stock Exchange and Pacific Exchange Depositary Shares, each representing 1/5th of a share of New York Stock Exchange 6.365% Cumulative Preferred Stock, Series F Depositary Shares, each representing 1/5th of a share of New York Stock Exchange 6.213% Cumulative Preferred Stock, Series G Depositary Shares, each representing 1/5th of a share of New York Stock Exchange 6.231% Cumulative Preferred Stock, Series H Depositary Shares, each representing 1/20th of a share of New York Stock Exchange 8.08% Cumulative Preferred Stock, Series J Depositary Shares, each representing 1/20th of a share of New York Stock Exchange 8.40% Cumulative Preferred Stock, Series K 7 3/4% Notes Due June 15, 1999 New York Stock Exchange 1998 Warrants to Purchase Common Stock New York Stock Exchange 8% Trust Preferred Securities of Subsidiary Trust (and New York Stock Exchange registrant's guaranty with respect thereto) 7 3/4% Trust Preferred Securities of Subsidiary Trust (and New York Stock Exchange registrant's guaranty with respect thereto) 7 5/8% Trust Preferred Securities of Subsidiary Trust (and New York Stock Exchange registrant's guaranty with respect thereto) 6.850% Trust Preferred Securities (TRUPS(R)) of Subsidiary New York Stock Exchange Trust (and registrant's guaranty with respect thereto)
Securities registered pursuant to Section 12(g) of the Act: None [Cover page 1 of 2 pages.] Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X NO --- --- Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.|X| The aggregate market value of the voting stock held by nonaffiliates of the registrant as of March 4, 1998 was approximately $61.5 billion. As of March 4, 1998, 1,152,647,587 shares of the registrant's Common Stock, par value $.01 per share, were outstanding. DOCUMENTS INCORPORATED BY REFERENCE Certain portions of the registrant's Annual Report to Stockholders for the fiscal year ended December 31, 1997 are incorporated by reference into Part II of this Form 10-K. Certain portions of the registrant's Proxy Statement for the 1998 Annual Meeting of Stockholders to be held on April 22, 1998 are incorporated by reference into Part III of this Form 10-K. [Cover page 2 of 2 pages.] EXPLANATORY NOTE This Form 10-K/A-1 is being filed to include as an exhibit to the Form 10-K financial statements for the Travelers Group Inc. 401(k) Savings Plan pursuant to Rule 15d-21 of the Securities Exchange Act of 1934, as amended. Other than the related additions to the Exhibit Index, the text of Item 14 has not been amended and speaks as of the date of the original filing of the Form 10-K. 2 PART IV ------- Item 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM 8-K. (a) Documents filed as a part of the report: (1) Financial Statements. See Index to Consolidated Financial Statements and Schedules on page F-1 hereof. (2) Financial Statement Schedules. See Index to Consolidated Financial Statements and Schedules on page F-1 hereof. (3) Exhibits: See Exhibit Index. (b) Reports on Form 8-K: On October 7, 1997, the Company filed a Current Report on Form 8-K, dated October 3, 1997, filing certain exhibits under Item 7 thereof relating to the offer and sale of the Company's 5.864% Cumulative Preferred Stock, Series M, $1.00 par value per share. On October 20, 1997, the Company filed a Current Report on Form 8-K, dated October 13, 1997, reporting under Item 5 thereof the results of its operations for the three and nine months ended September 30, 1997, and certain other selected financial data. On October 28, 1997, the Company filed a Current Report on Form 8-K/A (which amended the Form 8-K filed on September 25, 1997), filing under Item 7 thereof certain pro forma financial information. On November 28, 1997, the Company filed a Current Report on Form 8-K, dated November 28, 1997, reporting under Item 2 thereof the consummation of the transaction with Salomon Inc, reporting under Item 5 thereof certain material pending legal proceedings and filing under Item 7 thereof certain financial statements and exhibits. 3 No other reports on Form 8-K were filed during the fourth quarter of 1997; however, on January 8, 1998, the Company filed a Current Report on Form 8-K, dated January 6, 1998, filing certain exhibits under Item 7 thereof relating to the offer and sale of the Company's 6 5/8% Notes due January 15, 2028; on January 28, 1998, the Company filed a Current Report on Form 8-K, dated January 26, 1998, reporting under Item 5 thereof the results of its operations for the quarter and year ended December 31, 1997, and certain other selected financial data; and on February 19, 1998, the Company filed a Current Report on Form 8-K, dated February 17, 1998, filing certain exhibits under Item 7 thereof relating to the offer and sale of the Company's 6 7/8% Notes due February 15, 2098. 4 EXHIBIT INDEX ------------- Exhibit Number Description of Exhibit - ------ ---------------------- 3.01 Restated Certificate of Incorporation of Travelers Group Inc. (the "Company"), Certificate of Amendment to the Restated Certificate of Incorporation, filed April 26, 1995, Certificate of Amendment to the Restated Certificate of Incorporation, filed, April 24, 1996, Certificate of Amendment to the Restated Certificate of Incorporation, filed April 23, 1997, Certificate of Designation of 6.365% Cumulative Preferred Stock, Series F, Certificate of Designation of 6.213% Cumulative Preferred Stock, Series G, Certificate of Designation of 6.231% Cumulative Preferred Stock, Series H, Certificate of Designation of Series I Cumulative Convertible Preferred Stock, Certificate of Designation of 8.08% Cumulative Preferred Stock, Series J, Certificate of Designation of 8.40% Cumulative Preferred Stock, Series K, Certificate of Designation of 9.50% Cumulative Preferred Stock, Series L, Certificate of Designation of 5.864% Cumulative Preferred Stock, Series M, and Certificate of Designation of Cumulative Adjustable Rate Preferred Stock, Series Y, incorporated by reference to Exhibit 99.01 to the Form 8-A/A of Salomon Smith Barney Holdings Inc. and SI Financing Trust I (File No. 1-04346). 3.02 By-Laws of the Company, as amended through April 23, 1997, incorporated by reference to Exhibit 3.02 to the Company's Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 1997 (File No. 1-9924). 10.01* Employment Protection Agreement, dated as of December 31, 1987, between the Company (as successor to Commercial Credit Company ("CCC")) and Sanford I. Weill, incorporated by reference to Exhibit 10.03 to CCC's Annual Report on Form 10-K for the fiscal year ended December 31, 1987 (File No. 1-6594). 10.02.1* Travelers Group Stock Option Plan (as amended and restated as of April 24, 1996), incorporated by reference to Exhibit 10.02.1 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 1996 (File No. 1-9924) (the "Company's 1996 10-K"). 10.02.2* Amendment No. 14 to the Travelers Group Stock Option Plan, incorporated by reference to Exhibit 10.01 to the Company's Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 1996 (File No. 1-9924) (the "Company's September 30, 1996 10-Q"). 10.02.3* Amendment No. 15 to the Travelers Group Stock Option Plan (effective July 23, 1997), incorporated by reference to Exhibit 10.04 to the Company's Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 1997 (File No. 1-9924) (the "Company's September 30, 1997 10-Q"). 5 Exhibit Number Description of Exhibit - ------ ---------------------- 10.03* Travelers Group 1996 Stock Incentive Plan (as amended through July 23, 1997), incorporated by reference to Exhibit 10.03 to the Company's September 30, 1997 10-Q. 10.04* Travelers Group Retirement Benefit Equalization Plan (as amended and restated as of January 1, 1994), incorporated by reference to Exhibit 10.03 to the Company's 1996 10-K. 10.05* Letter Agreement, dated December 14, 1988, between Joseph A. Califano, Jr. and the Company, incorporated by reference to Exhibit 10.21.1 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 1988 (File No. 1-9924). 10.06* Travelers Group Inc. Amended and Restated Compensation Plan for Non-Employee Directors, incorporated by reference to Exhibit 10.02 to the Company's September 30, 1996 10-Q. 10.07.1* Supplemental Retirement Plan of the Company, incorporated by reference to Exhibit 10.23 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 1990 (File No. 1-9924). 10.07.2* Amendment to the Company's Supplemental Retirement Plan, incorporated by reference to Exhibit 10.06.2 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 1993 (File No. 1-9924) (the "Company's 1993 10-K"). 10.08* The Travelers Inc. Executive Performance Compensation Plan (effective April 27, 1994), incorporated by reference to Exhibit 10.07 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 1995 (File No. 1-9924). 10.09* Travelers Group Capital Accumulation Plan (as amended through July 23, 1997), incorporated by reference to Exhibit 10.02 to the Company's September 30, 1997 10-Q. 10.10* Agreement, dated December 21, 1993, between the Company and Edward H. Budd, incorporated by reference to Exhibit 10.22 to the Company's 1993 10-K. 10.11* The Travelers Inc. Deferred Compensation and Partnership Participation Plan, incorporated by reference to Exhibit 10.31 to the Company's Annual Report on Form 10-K/A-1 for the fiscal year ended December 31, 1994 (File No. 1-9924). 6 Exhibit Number Description of Exhibit - ------ ---------------------- 10.12* The Travelers Corporation 1984 Management Incentive Plan (as amended effective January 1, 1991), incorporated by reference to Exhibit 10(c) to the Annual Report on Form 10-K of The Travelers Corporation ("old Travelers") for the fiscal year ended December 31, 1990 (File No. 1-5799). 10.13* The Travelers Corporation Supplemental Benefit Plan (effective December 20, 1992), incorporated by reference to Exhibit 10(d) to the Annual Report on Form 10-K of old Travelers for the fiscal year ended December 31, 1992 (File No. 1-5799). 10.14* The Travelers Insurance Deferred Compensation Plan (formerly The Travelers Corporation TESIP Restoration and Non-Qualified Savings Plan) (as amended and restated through January 1, 1997). 10.15* The Travelers Corporation Directors' Deferred Compensation Plan (as amended November 7, 1986), incorporated by reference to Exhibit 10(d) to the Annual Report on Form 10-K of old Travelers for the fiscal year ended December 31, 1986 (File No. 1-5799). 10.16* Travelers Property Casualty Corp. Capital Accumulation Plan (as amended through July 23, 1997), incorporated by reference to Exhibit 10.01 to the Quarterly Report on Form 10-Q of Travelers Property Casualty Corp. for the fiscal quarter ended September 30, 1997 (File No. 1-14328). 10.17* Letter Agreement, dated as of August 14, 1997, between the Company and Thomas W. Jones, incorporated by reference to Exhibit 10.01 to the Company's September 30, 1997 10-Q. 10.18 Agreement and Plan of Merger, dated as of September 24, 1997, among the Company, Diamonds Acquisition Corp. and Salomon Inc, incorporated by reference to Exhibit 2.01 to the Company's Current Report on Form 8-K/A-1, dated September 24, 1997 (File No. 1-9924). 10.19* Salomon Inc Equity Partnership Plan for Key Employees (as amended through March 19, 1997). 12.01 Computation of Ratio of Earnings to Fixed Charges. 13.01 Pages 32 through 92 of the 1997 Annual Report to Stockholders of the Company (pagination of exhibit does not correspond to pagination in the 1997 Annual Report to Stockholders). 21.01 Subsidiaries of the Company. 23.01 Consent of KPMG Peat Marwick LLP, Independent Certified Public Accountants. 7 Exhibit Number Description of Exhibit - ------ ---------------------- 23.02 Consent of Arthur Andersen LLP, Independent Certified Public Accountants. 23.03+ Accountants' consent to incorporation by reference of report filed with Exhibit 99.05. 24.01 Powers of Attorney. 27.01 Financial Data Schedule. 27.02 Restated Financial Data Schedule - 1996. 27.03 Restated Financial Data Schedule - 1995. 99.01 Glossary of Insurance Terms. 99.02 Independent Auditors' Report. 99.03 The fifth through sixth and the eighth through sixteenth paragraphs under the caption "Legal Proceedings" beginning on page 13 of the Annual Report on Form 10-K of Salomon Smith Barney Holdings Inc. for the fiscal year ended December 31, 1997 (File No. 1-4346). 99.04 The second through sixth paragraphs under the caption "Legal Proceedings" beginning on page 53 of the Annual Report on From 10-K of Travelers Property Casualty Corp. for the fiscal year ended December 31, 1997 (File No. 1-14328). 99.05+ 1997 Financial Statements of Travelers Group 401(k) Savings Plan. The total amount of securities authorized pursuant to any instrument defining rights of holders of long-term debt of the Company does not exceed 10% of the total assets of the Company and its consolidated subsidiaries. The Company will furnish copies of any such instrument to the SEC upon request. The financial statements required by Form 11-K for 1997 for the Company's employee savings plan will be filed as an exhibit by amendment to this Form 10-K pursuant to Rule 15d-21 of the Securities Exchange Act of 1934, as amended. Copies of any of the exhibits referred to above will be furnished at a cost of $.25 per page (although no charge will be made for the 1997 Annual Report on Form 10-K) to security holders who make written request therefor to Corporate Communications and Investor Relations Department, Travelers Group Inc., 388 Greenwich Street, New York, New York 10013. - ---------- * Denotes a management contract or compensatory plan or arrangement required to be filed as an exhibit pursuant to Item 14(c) of Form 10-K. + Filed with Form 10-K/A-1. Except as otherwise indicated, all exhibits were filed with the initial filing of the Form 10-K. 8 SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, on the 29th day of June, 1998. TRAVELERS GROUP INC. (Registrant) By: /s/ Irwin Ettinger -------------------------------------- Irwin Ettinger Executive Vice President 9 EXHIBIT INDEX ------------- Exhibit Number Description of Exhibit - ------ ---------------------- 3.01 Restated Certificate of Incorporation of Travelers Group Inc. (the "Company"), Certificate of Amendment to the Restated Certificate of Incorporation, filed April 26, 1995, Certificate of Amendment to the Restated Certificate of Incorporation, filed, April 24, 1996, Certificate of Amendment to the Restated Certificate of Incorporation, filed April 23, 1997, Certificate of Designation of 6.365% Cumulative Preferred Stock, Series F, Certificate of Designation of 6.213% Cumulative Preferred Stock, Series G, Certificate of Designation of 6.231% Cumulative Preferred Stock, Series H, Certificate of Designation of Series I Cumulative Convertible Preferred Stock, Certificate of Designation of 8.08% Cumulative Preferred Stock, Series J, Certificate of Designation of 8.40% Cumulative Preferred Stock, Series K, Certificate of Designation of 9.50% Cumulative Preferred Stock, Series L, Certificate of Designation of 5.864% Cumulative Preferred Stock, Series M, and Certificate of Designation of Cumulative Adjustable Rate Preferred Stock, Series Y, incorporated by reference to Exhibit 99.01 to the Form 8-A/A of Salomon Smith Barney Holdings Inc. and SI Financing Trust I (File No. 1-04346). 3.02 By-Laws of the Company, as amended through April 23, 1997, incorporated by reference to Exhibit 3.02 to the Company's Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 1997 (File No. 1-9924). 10.01* Employment Protection Agreement, dated as of December 31, 1987, between the Company (as successor to Commercial Credit Company ("CCC")) and Sanford I. Weill, incorporated by reference to Exhibit 10.03 to CCC's Annual Report on Form 10-K for the fiscal year ended December 31, 1987 (File No. 1-6594). 10.02.1* Travelers Group Stock Option Plan (as amended and restated as of April 24, 1996), incorporated by reference to Exhibit 10.02.1 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 1996 (File No. 1-9924) (the "Company's 1996 10-K"). 10.02.2* Amendment No. 14 to the Travelers Group Stock Option Plan, incorporated by reference to Exhibit 10.01 to the Company's Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 1996 (File No. 1-9924) (the "Company's September 30, 1996 10-Q"). 10.02.3* Amendment No. 15 to the Travelers Group Stock Option Plan (effective July 23, 1997), incorporated by reference to Exhibit 10.04 to the Company's Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 1997 (File No. 1-9924) (the "Company's September 30, 1997 10-Q"). Exhibit Number Description of Exhibit - ------ ---------------------- 10.03* Travelers Group 1996 Stock Incentive Plan (as amended through July 23, 1997), incorporated by reference to Exhibit 10.03 to the Company's September 30, 1997 10-Q. 10.04* Travelers Group Retirement Benefit Equalization Plan (as amended and restated as of January 1, 1994), incorporated by reference to Exhibit 10.03 to the Company's 1996 10-K. 10.05* Letter Agreement, dated December 14, 1988, between Joseph A. Califano, Jr. and the Company, incorporated by reference to Exhibit 10.21.1 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 1988 (File No. 1-9924). 10.06* Travelers Group Inc. Amended and Restated Compensation Plan for Non-Employee Directors, incorporated by reference to Exhibit 10.02 to the Company's September 30, 1996 10-Q. 10.07.1* Supplemental Retirement Plan of the Company, incorporated by reference to Exhibit 10.23 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 1990 (File No. 1-9924). 10.07.2* Amendment to the Company's Supplemental Retirement Plan, incorporated by reference to Exhibit 10.06.2 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 1993 (File No. 1-9924) (the "Company's 1993 10-K"). 10.08* The Travelers Inc. Executive Performance Compensation Plan (effective April 27, 1994), incorporated by reference to Exhibit 10.07 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 1995 (File No. 1-9924). 10.09* Travelers Group Capital Accumulation Plan (as amended through July 23, 1997), incorporated by reference to Exhibit 10.02 to the Company's September 30, 1997 10-Q. 10.10* Agreement, dated December 21, 1993, between the Company and Edward H. Budd, incorporated by reference to Exhibit 10.22 to the Company's 1993 10-K. 10.11* The Travelers Inc. Deferred Compensation and Partnership Participation Plan, incorporated by reference to Exhibit 10.31 to the Company's Annual Report on Form 10-K/A-1 for the fiscal year ended December 31, 1994 (File No. 1-9924). Exhibit Number Description of Exhibit - ------ ---------------------- 10.12* The Travelers Corporation 1984 Management Incentive Plan (as amended effective January 1, 1991), incorporated by reference to Exhibit 10(c) to the Annual Report on Form 10-K of The Travelers Corporation ("old Travelers") for the fiscal year ended December 31, 1990 (File No. 1-5799). 10.13* The Travelers Corporation Supplemental Benefit Plan (effective December 20, 1992), incorporated by reference to Exhibit 10(d) to the Annual Report on Form 10-K of old Travelers for the fiscal year ended December 31, 1992 (File No. 1-5799). 10.14* The Travelers Insurance Deferred Compensation Plan (formerly The Travelers Corporation TESIP Restoration and Non-Qualified Savings Plan) (as amended and restated through January 1, 1997). 10.15* The Travelers Corporation Directors' Deferred Compensation Plan (as amended November 7, 1986), incorporated by reference to Exhibit 10(d) to the Annual Report on Form 10-K of old Travelers for the fiscal year ended December 31, 1986 (File No. 1-5799). 10.16* Travelers Property Casualty Corp. Capital Accumulation Plan (as amended through July 23, 1997), incorporated by reference to Exhibit 10.01 to the Quarterly Report on Form 10-Q of Travelers Property Casualty Corp. for the fiscal quarter ended September 30, 1997 (File No. 1-14328). 10.17* Letter Agreement, dated as of August 14, 1997, between the Company and Thomas W. Jones, incorporated by reference to Exhibit 10.01 to the Company's September 30, 1997 10-Q. 10.18 Agreement and Plan of Merger, dated as of September 24, 1997, among the Company, Diamonds Acquisition Corp. and Salomon Inc, incorporated by reference to Exhibit 2.01 to the Company's Current Report on Form 8-K/A-1, dated September 24, 1997 (File No. 1-9924). 10.19* Salomon Inc Equity Partnership Plan for Key Employees (as amended through March 19, 1997). 12.01 Computation of Ratio of Earnings to Fixed Charges. 13.01 Pages 32 through 92 of the 1997 Annual Report to Stockholders of the Company (pagination of exhibit does not correspond to pagination in the 1997 Annual Report to Stockholders). 21.01 Subsidiaries of the Company. 23.01 Consent of KPMG Peat Marwick LLP, Independent Certified Public Accountants. Exhibit Number Description of Exhibit - ------ ---------------------- 23.02 Consent of Arthur Andersen LLP, Independent Certified Public Accountants. 23.03+ Accountants' consent to incorporation by reference of report filed with Exhibit 99.05. 24.01 Powers of Attorney. 27.01 Financial Data Schedule. 27.02 Restated Financial Data Schedule - 1996. 27.03 Restated Financial Data Schedule - 1995. 99.01 Glossary of Insurance Terms. 99.02 Independent Auditors' Report. 99.03 The fifth through sixth and the eighth through sixteenth paragraphs under the caption "Legal Proceedings" beginning on page 13 of the Annual Report on Form 10-K of Salomon Smith Barney Holdings Inc. for the fiscal year ended December 31, 1997 (File No. 1-4346). 99.04 The second through sixth paragraphs under the caption "Legal Proceedings" beginning on page 53 of the Annual Report on From 10-K of Travelers Property Casualty Corp. for the fiscal year ended December 31, 1997 (File No. 1-14328). 99.05+ 1997 Financial Statements of Travelers Group 401(k) Savings Plan. The total amount of securities authorized pursuant to any instrument defining rights of holders of long-term debt of the Company does not exceed 10% of the total assets of the Company and its consolidated subsidiaries. The Company will furnish copies of any such instrument to the SEC upon request. The financial statements required by Form 11-K for 1997 for the Company's employee savings plan will be filed as an exhibit by amendment to this Form 10-K pursuant to Rule 15d-21 of the Securities Exchange Act of 1934, as amended. Copies of any of the exhibits referred to above will be furnished at a cost of $.25 per page (although no charge will be made for the 1997 Annual Report on Form 10-K) to security holders who make written request therefor to Corporate Communications and Investor Relations Department, Travelers Group Inc., 388 Greenwich Street, New York, New York 10013. - ---------- * Denotes a management contract or compensatory plan or arrangement required to be filed as an exhibit pursuant to Item 14(c) of Form 10-K. + Filed with Form 10-K/A-1. Except as otherwise indicated, all exhibits were filed with the initial filing of the Form 10-K. EX-23.03 2 ACCOUNTS' CONSENT Exhibit 23.03 CONSENT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS The Plans Administration Committee Travelers Group Inc.: We consent to the incorporation by reference in the Registration Statements (Nos. 33-32130, 33-43997, 33-52027, 33-59524 and 333-25603) on Form S-8 of Travelers Group Inc. of our report dated June 23, 1998 relating to the statements of net assets available for plan benefits of Travelers Group 401(k) Savings Plan as of December 31, 1997 and 1996, and the related statements of changes in net assets available for plan benefits for the years then ended, and the supplemental schedules of assets held for investment purposes, assets held for investment purposes which were both acquired and disposed of within the plan year, and reportable transactions as of and for the year ended December 31, 1997, which report is being filed with Form 10-K/A-1 as an amendment to the 1997 Annual Report on Form 10-K of Travelers Group Inc. /s/ KPMG PEAT MARWICK LLP New York, New York June 29, 1998 EX-99.05 3 FINANCIAL STATEMENTS Travelers Group 401(k) Savings Plan December 31, 1997 and 1996 Index Page ---- Independent Auditors' Report F-2 Financial Statements: Statements of Net Assets Available for Plan Benefits at December 31, 1997 and 1996 F-3 Statements of Changes in Net Assets Available for Plan Benefits for the years ended December 31, 1997 and 1996 F-4 Notes to Financial Statements F-5 Supplemental Schedules: Schedule to Form 5500: Item 27(a) Schedule of Assets Held for Investment Purposes at December 31, 1997 F-43 Schedule of Assets Held for Investment Purposes Which Were Both Acquired and Disposed Within The Plan Year for the year ended December 31, 1997 F-48 Schedule to Form 5500: Item 27(d) Schedule of Reportable Transactions for the year ended December 31, 1997 F-49 The other schedules required by Item 27 of Form 5500 are not applicable and are therefore omitted. F-1 Independent Auditors' Report To the Plans Administration Committee of Travelers Group Inc.: We have audited the accompanying statements of net assets available for plan benefits of Travelers Group 401(k) Savings Plan as of December 31, 1997 and 1996, and the related statements of changes in net assets available for plan benefits for the years then ended. These financial statements are the responsibility of the Plan Administrator. 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 the Plan Administrator, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for plan benefits of the Plan as of December 31, 1997 and 1996, and the changes in net assets available for plan benefits for the years then ended in conformity with generally accepted accounting principles. Our December 31, 1997 audit was performed for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedules of assets held for investment purposes, assets held for investment purposes which were both acquired and disposed of within the Plan year and reportable transactions are presented for the purpose of additional analysis and are not a required part of the basic financial statements, but are supplementary information required by the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974, as amended. The supplemental schedules have been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements as of and for the year ended December 31, 1997 taken as a whole. New York, New York June 23, 1998 F-2 Travelers Group 401(k) Savings Plan Statements of Net Assets Available for Plan Benefits December 31, 1997 and 1996
1997 1996 ---- ---- Assets: Investments (notes 2 and 3) $4,674,578,303 $2,867,380,324 Cash 18,360,722 9,405,955 -------------- -------------- 4,692,939,025 2,876,786,279 -------------- -------------- Receivables: Contributions 17,193,699 18,838,337 Dividends and other 11,556,287 14,111,728 -------------- -------------- Total receivables 28,749,986 32,950,065 -------------- -------------- Total assets 4,721,689,011 2,909,736,344 -------------- -------------- Liabilities: Payable for investment purchases 6,818,531 2,536,913 Forfeiture credits due to employer -- 12,800,143 ESOP note payable 17,450,000 34,900,000 -------------- -------------- Total liabilities 24,268,531 50,237,056 -------------- -------------- Net assets available for plan benefits $4,697,420,480 $2,859,499,288 ============== ==============
See accompanying notes to financial statements. F-3 Travelers Group 401(k) Savings Plan Statements of Changes in Net Assets Available for Plan Benefits Years ended December 31, 1997 and 1996
1997 1996 ---- ---- Investment activity: Dividends $ 114,793,555 $ 79,270,418 Interest 44,500,303 41,521,488 Net appreciation in fair value of investments 1,014,454,681 421,845,008 --------------- --------------- 1,173,748,539 542,636,914 Less: Trustee/administrative expenses (1,830,683) (1,877,723) --------------- --------------- Net investment income 1,171,917,856 540,759,191 --------------- --------------- Contributions: Participant 226,379,513 230,647,125 Employer 96,750 32,714,489 --------------- --------------- Total contributions 226,476,263 263,361,614 --------------- --------------- Distributions to participants (217,969,324) (193,469,103) --------------- --------------- Increase in net assets available for plan benefits 1,180,424,795 610,651,702 --------------- --------------- Net assets available for plan benefits (note 1): Beginning of year 2,859,499,288 1,215,793,546 Transfer from Salomon Inc 657,496,397 -- Transfer from Copeland Associates, Inc. -- 28,135,653 Transfer from TESIP -- 1,111,942,625 Transfer to United HealthCare Corp. -- (107,024,238) --------------- --------------- End of year $ 4,697,420,480 $ 2,859,499,288 =============== ===============
See accompanying notes to financial statements. F-4 Travelers Group 401(k) Savings Plan Notes to Financial Statements December 31, 1997 and 1996 1. Plan Description The following brief description of Travelers Group 401(k) Savings Plan (the "Plan") is provided for general information purposes only. Participants should refer to the Travelers Group 401(k) Savings Plan Document (as amended and restated as of June 1, 1996, subsequently amended through amendment number 2 and by action under the authority of the Board of Directors of Travelers Group Inc.) for more complete information. The Plan covers all eligible employees of Travelers Group Inc. ("Travelers"), the Plan sponsor, and eligible employees of subsidiaries and affiliates of Travelers (the "Company") as may become participating companies. The Plan is administered by the Plans Administration Committee of Travelers Group Inc. ("Plan Administrator"). In November 1997, Travelers merged with Salomon Inc ("Salomon") in a transaction accounted for as a pooling of interests. Accordingly, all outstanding stock of Salomon was exchanged for stock of Travelers. Effective as of December 1, 1997, the Salomon Inc Retirement Plan was merged into the Plan. All stock held in the Salomon Stock Fund was exchanged for shares of Travelers and such shares became part of the Travelers Common Stock Fund. The Salomon merger resulted in a $657 million increase in net assets available for plan benefits. The net assets transferred includes the employer contribution for the 1997 plan year for Salomon Participants (as defined below). Effective as of January 1, 1996, the Travelers Savings, Investment and Stock Ownership Plan ("TESIP") and the 401(k) Retirement and Profit Sharing Plan of Copeland Associates, Inc. ("Copeland") were merged into the Plan. Effective January 2, 1996, all assets and liabilities attributable to participants employed by MetraHealth Companies, Inc. or affiliates thereof ("MetraHealth") who were included in TESIP were transferred to the United HealthCare Corporation 401(k) Savings Plan pursuant to an agreement between Travelers and MetraHealth ("MetraHealth 401(k) Transfer") in connection with the acquisition of MetraHealth by United HealthCare Corporation. Following the MetraHealth 401(k) Transfer, Travelers has no further obligation to provide any benefits to MetraHealth participants under the Plan. The TESIP merger resulted in a $1,005 million increase in net assets available for plan benefits, net of the $107 million transferred to the United HealthCare Corporation 401(k) Savings Plan attributable to MetraHealth participants. The Copeland merger resulted in a $28 million increase in net assets available for plan benefits. F-5 Travelers Group 401(k) Savings Plan Notes to Financial Statements 1. Plan Description (Continued) The Plan is a defined contribution plan designed to encourage savings on the part of eligible employees. Eligible employees may elect to have a portion of their regular pay, including overtime, reduced each pay period, in any one percent increment, by an amount from 1% to 15% of their compensation (subject to a statutory limitation) as pretax contributions. Employee pre-tax contributions and employer contributions, as well as the earnings thereon, are taxed to the participant only at the time of distribution. For the year ended December 31, 1997 ("1997 Plan Year"), Travelers, for itself or on behalf of the Company, as appropriate, contributed an employer contribution on behalf of each participant, excluding Salomon participants ("Salomon Participants"), ("Travelers Participants") as of the last day of the Plan year. In the 1997 Plan Year, Travelers contributed $350 to all full-time eligible Travelers employees earning $40,000 or less per annum who were with the Company as of December 31, 1996 and through December 31, 1997. A similar amount of $175 was contributed to all part-time eligible Travelers employees with the Company as of December 31, 1996 and through December 31, 1997. Travelers employees earning greater than $40,000 per annum were not eligible to receive any employer contributions. For the year ended December 31, 1996, the matching employer contribution made by Travelers equaled 100% of each participant's pretax contributions up to an annual maximum of $1,000. Travelers, for itself or on behalf of the Company, makes contributions on behalf of eligible Travelers Participants who elect to have pretax contributions invested in the Travelers Common Stock Fund and the Travelers Property Casualty Common Stock Fund by having such contributions invested at a 5% discount from the fair value of such stock ("Discount Contributions"). In addition, certain Travelers Participants are also eligible for a transitional benefit, in which the Company will continue to make a matching contribution of 50% of their pretax contributions of up to 5% of their pay, through December 31, 1997. Salomon Participants are eligible for a Company match of 75% of the lesser of all pre-tax contributions to the Plan by participants or 6% of each participant's compensation ("401(k) Matching Contributions"). The first 50% of the 401(k) Matching Contributions will be invested in the funds chosen by the participant, the remaining 25% will be invested in the Travelers Common Stock Fund (formerly the Salomon Inc Stock Fund) and may not be sold or transferred until the participant retires or terminates employment with the Company. For Salomon Participants earning $360,000 or more, the 401(k) Matching Contribution will be at 50%, and be invested in funds chosen by the participant. In addition, for these participants, the Company will make a contribution of between 2% and 15% of the participant's compensation, up to $100,000, based on the participant's years of service (the "Guideline Benefit"). F-6 Travelers Group 401(k) Savings Plan Notes to Financial Statements 1. Plan Description (Continued) The Plan also accepts or includes certain after-tax contributions, subject to restrictions, related to certain Plan participants. In June 1989, TESIP was amended to include an Employee Stock Ownership Plan (the "ESOP"). The ESOP borrowed $200 million, at a variable interest rate, from Chase Manhattan Bank ("ESOP Loan"). Increasing semiannual payments that began January 1, 1990 will fully amortize the debt by January 1, 1998. The loan is guaranteed by Travelers. Concurrently, the trustee for the ESOP purchased preferred shares, which were ultimately converted to shares of Travelers Series C Convertible Preferred Stock, for the ESOP, for $200 million with the proceeds of the ESOP Loan. Each share of Series C Convertible Preferred Stock is guaranteed by Travelers at a minimum value of $53.25 and is entitled to receive a cumulative annual dividend of $4.53. Such dividends are reinvested in additional shares of Series C Convertible Preferred Stock at a cost equal to the value determined as described in note 2. These shares are then subject to the same guaranteed minimum value. The Series C Convertible Preferred Stock may be held only by the ESOP trustee. The Series C Preferred is convertible into one share of Travelers common stock for each $21.99 of stated value of Series C Preferred, subject to antidilution adjustments in certain circumstances. The Company matches pretax contributions by employees as described above with the Series C Convertible Preferred Stock valued at the greater of its minimum value of $53.25 per share or the estimated fair value of the Series C Convertible Preferred Stock determined as described in note 2. Principal payments made during 1997 on the ESOP Loan totaled $17.5 million. The minimum principal payments to be made in 1998 are $17.4 million. As of December 31, 1997, participants in the ESOP had an aggregate beneficial interest in Series C Convertible Preferred Stock totaling $346 million (2,633,019 shares based on the $131.59 per share estimated fair value at December 31, 1997). In addition, at December 31, 1997, the ESOP had an aggregate beneficial interest in Series C Convertible Preferred Stock totaling $33 million (247,440 shares based on the $131.59 per share estimated fair value at December 31, 1997), which was unallocated to participants in the ESOP. Although it has not expressed any intention to do so, Travelers has the right under the Plan to discontinue its contributions at any time and to terminate the Plan subject to the provisions of the Employee Retirement Income Security Act of 1974, as amended ("ERISA"). In the event of Plan termination, either full or partial, all amounts credited to the participants' accounts shall become 100 % vested and, therefore, will not be subject to forfeiture. F-7 Travelers Group 401(k) Savings Plan Notes to Financial Statements 1. Plan Description (Continued) Fund Transfers and Allocation of Contributions Participants may elect to divide their contributions among the funds included in the Plan in increments divisible by 5%. Participants are only eligible to participate in certain funds in the Plan, based upon which subsidiary of Travelers Group Inc. the participant is directly employed. A participant may elect to suspend his/her contributions, as soon as administratively practicable, subject to the Plan's notice requirements. Such participant may thereafter resume contributions as of the first pay period beginning in any calendar month, subject to the Plan's notice requirements. In addition, a participant may change the rate of his/her contributions as of the first pay period beginning in any calendar month, subject to the Plan's notice requirements. A participant may elect to change the allocation of future contributions among the funds once each calendar month on or about the first day of any pay period, subject to the Plan's notice requirements. A participant may elect to transfer the value of his/her contributions in increments divisible by 5% or a specified number of whole shares from one or more of the investment funds to another investment fund or funds, subject to restriction, once each calendar month. The transfer will be effective on or about the last business day of the calendar month, subject to the Plan's notice requirements. Contributions The rights of a participant to his/her contributions and any earnings thereon are at all times fully vested and non-forfeitable. Prior to January 1, 1997, matching employer contributions for Travelers Participants of the Plan are fully vested and non-forfeitable for those participants whose initial date of employment is before January 1, 1993. For those Travelers Participants whose initial date of employment is on or after January 1, 1993, matching employer contributions are 100% vested and non-forfeitable after five years of service. Salomon Participants are immediately vested in the 401(k) Matching Contributions and earnings thereon. With respect to the Guideline Benefit Contributions, participants vest 10% per year after completing one year of eligible service with the Company. Commencing with the fifth year, the vesting percentage increases to 20% as each subsequent year of eligible service is completed, so that participants become fully vested after completion of seven years of eligible service. F-8 Travelers Group 401(k) Savings Plan Notes to Financial Statements 1. Plan Description (Continued) Forfeitures of employer matching contributions to the Plan by participants that terminate employment prior to becoming fully vested are used to reduce future employer contributions to the Plan. Forfeitures available in individual funds within the Plan may be used to reduce employer matching contributions required in other funds within the Plan. Forfeitures not yet utilized to reduce contributions are reflected as a liability in the statement of net assets available for plan benefits. For the years ended December 31, 1997 and 1996, current Plan year employer contributions were reduced by approximately $7.6 million and $5.9 million, respectively for forfeitures. Rollover and Transfer Contributions The Plan permits participants to have their interests in other qualified profit-sharing plans transferred to the Plan or to make rollover contributions into the Plan from an individual retirement account (or similar arrangement) resulting from a rollover from another qualified plan or directly from another qualified plan. Such transfers or rollovers to the Plan may only be made with the approval of the Plan Administrator and do not affect any other contributions made by or on behalf of a participant. Loans Subject to the Plan's provisions and the requirements contained within ERISA and the Internal Revenue Code of 1986, as amended (the "Code"), participants may apply for a loan from the Plan at an annual interest rate equal to the prime rate, as published in The Wall Street Journal for the first business day of the month in which the loan application is received, plus one percent for Travelers Participants or plus two percent for Salomon Participants. Loan repayment by participants who are employed by the Company are generally made through after-tax payroll deductions. Withdrawals Prior to termination of employment, a participant may withdraw, on or about the last business day of any month, subject to the Plan's notice requirements, all or a portion of the value of his or her rollover contributions account, all or any portion of the vested value of his/her account if the participant has attained age 59-1/2 or becomes totally and permanently disabled, or all or any portion of the value of his/her contributions account in the event of demonstrated financial hardship, subject to the Plan's provisions. The Plan does not allow withdrawals of 401(k) Matching Contributions or Guideline Benefit Contributions to be made prior to retirement or other termination of employment. F-9 Travelers Group 401(k) Savings Plan Notes to Financial Statements 1. Plan Description (Continued) Withdrawals to which a participant is entitled are the amounts that can be provided by the contributions and income thereon (including net realized and unrealized investment gains and losses) allocated to each participant's account. Withdrawals from the Travelers Common Stock Fund, the TAP Common Stock Fund and the American Express Common Stock Fund may be paid in either shares of common stock or cash at the discretion of the participant. Fractional shares and withdrawals from other funds are paid in cash. Participants after-tax contributions and earnings thereon are nonforfeitable and may be withdrawn at any time. Distributions Travelers Participants can have the total of his/her account distributed in a lump-sum payment on the last business day of the month coincident with his/her retirement date. If the participant leaves the Company before retirement, he/she may elect to have his/her account distributed to him/her as of the last business day of the month coincident to his/her last day of employment. Salomon Participants have the option of receiving their participant account balances at retirement in the form of a lump-sum payment, in installments for any period of time from a minimum of ten years up to life expectancy, in annuity payments or in other forms approved by the Plan Administrator. Distributions from the Travelers Common Stock Fund, the TAP Common Stock Fund and the American Express Common Stock Fund may be paid in either shares of common stock or cash at the discretion of the participant. Distributions from the ESOP may be paid in either shares of Travelers common stock or cash at the discretion of the participant. Fractional shares and distributions from other funds are paid in cash. Other Information During 1997, the following Smith Barney Concert Allocation Series funds were made available to the Travelers Participants: High Growth Portfolio, Growth Portfolio, Balanced Portfolio, Conservative Portfolio and the Income Portfolio. As a result of the merger described above, the following funds were also added to the Plan during 1997: Salomon Brothers Institutional Money Market Fund, Salomon Brothers Capital Fund Inc, SBAM Broad Market Fixed Income Fund, Putnam OTC & Emerging Growth Fund, Fidelity Blue Chip Growth Fund, Templeton Developing Markets Trust, BGI Tactical Asset Allocation Fund, Europacific Growth Fund, Index Equity Fund and the Intermediate Bond Fund. During 1996, the Smith Barney Income Return Fund and High Income Fund were terminated, and upon termination, no more contributions were accepted to these funds. As of January 2, 1997, all balances in these funds were transferred to other funds in the Plan as elected by the participants or, where elections were not made, the funds were temporarily transferred to the Smith Barney Money Fund. F-10 Travelers Group 401(k) Savings Plan Notes to Financial Statements 2. Summary of Significant Accounting Policies (a) Accounting Method The financial statements of the Plan have been prepared on the accrual basis of accounting. (b) Investment Valuation and Income Recognition The following listing details the determination of the fair value of each of the Plan's investments at year end: The shares of common stock held by the Travelers Common Stock Fund, TAP Common Stock Fund and American Express Common Stock Fund are valued at the last reported sale price on the New York Stock Exchange for the last business day of the year. The investments in the SBAM Broad Market Fixed Income Fund, managed by Salomon Brothers Asset Management, and the Fisher Francis Intermediate Bond Fund, managed by Fisher, Francis Trees & Watts are valued at the last reported sales price on a national securities exchange for the last business day of the year. The shares of the following registered investment companies are valued at the net asset value per share as of December 31, 1997 and 1996, as determined by Van Kampen American Capital: Van Kampen American Capital Comstock Fund Van Kampen American Capital Emerging Growth Fund Van Kampen American Capital Enterprise Fund Van Kampen American Capital Government Securities Fund Van Kampen American Capital Reserve Fund Common Sense Government Fund Common Sense Growth & Income Fund Common Sense Growth Fund Common Sense Money Market Fund The shares of the following registered investment companies are valued at the net asset value per share as of December 31, 1997 and 1996, as determined by Smith Barney Mutual Funds Management Inc.: Smith Barney Equity Income Fund Smith Barney International Equity Fund Smith Barney Money Fund Smith Barney Aggressive Growth Fund Smith Barney Appreciation Fund F-11 Travelers Group 401(k) Savings Plan Notes to Financial Statements 2. Summary of Significant Accounting Policies (Continued) Smith Barney Diversified Strategic Income Fund Smith Barney Utilities Fund Smith Barney U.S. Government Securities Fund Smith Barney Income Return Fund Smith Barney High Income Fund Smith Barney Special Equities Fund Smith Barney Managed Growth Fund Concert Allocation Series High Growth Portfolio Concert Allocation Series Growth Portfolio Concert Allocation Series Balanced Portfolio Concert Allocation Series Conservative Portfolio Concert Allocation Series Income Portfolio The shares of the following registered investment companies are valued at the net asset value per share as of December 31, 1997, as determined by Salomon Brothers Asset Management Inc: Salomon Brothers Institutional Money Market Fund Salomon Brothers Capital Fund Salomon Brothers High Yield Bond Fund The shares of the following registered investment companies are valued at the net asset value per share as of December 31, 1997, as determined by the respective Investment Managers: Putnam OTC & Emerging Growth Fund - Putnam Investment Management, Inc. Fidelity Blue Chip Growth Fund - Fidelity Management and Research Company Templeton Developing Markets Trust - Templeton Investment Management (Hong Kong) Limited Europacific Growth Fund - The American Funds Group The investments in the following commingled trust funds are valued at the net asset value per unit as of December 31, 1997 as determined by the respective Investment Managers: BGI Tactical Asset Allocation Fund - Barclays Global Investors Bankers Trust Index Equity Fund - Bankers Trust F-12 Travelers Group 401(k) Savings Plan Notes to Financial Statements 2. Summary of Significant Accounting Policies (Continued) The shares of the following registered investment companies are valued at the net asset value per share as of December 31, 1997 and 1996, as determined by the Copeland Administrative Operations Inc.: American Odyssey Core Equity Fund American Odyssey Emerging Opportunities Fund American Odyssey International Equity Fund American Odyssey Long-Term Bond Fund American Odyssey Intermediate-Term Bond Fund American Odyssey Short-Term Bond Fund American Odyssey In-Time Investing Funds The shares of the following registered investment companies are valued at the net asset value per share as of December 31, 1997 and 1996, as determined by the State Street Bank & Trust Company: S&P 500 Flagship Fund Russell 2000 Fund Short-term money market investments, the Loan Fund and the Deferred Profit Sharing Plan are valued at cost plus earned interest which approximates fair value. Guaranteed investment contracts, which are included in the guaranteed income funds, and guaranteed annuity contracts are valued at contract value which approximates fair value. The ESOP Fund is carried at estimated fair value, which is the greater of the minimum value of $53.25 per share, or estimated fair value as determined from an appraisal prepared by an independent appraiser. The Universal Life Insurance Contract is carried at contract value, which approximates fair value as reported to the Plan by TransAmerica Assurance Company. Participant loans receivable are valued at cost which approximates fair value. A significant concentration of the Plan's assets are invested in or managed by the Company (see note 5 regarding related party transactions). Purchases and sales of securities are recorded on a trade date basis. Interest income is recorded on the accrual basis and is net of interest charges incurred on ESOP debt. Dividends are recorded on the ex-dividend date. Net appreciation in the fair value of investments includes the Plan's investments bought, sold and held during the year. (c) Payment of Benefits Benefits are recorded when paid. F-13 Travelers Group 401(k) Savings Plan Notes to Financial Statements 2. Summary of Significant Accounting Policies (Continued) (d) Use of Estimates in the Preparation of the Financial Statements The preparation of financial statements in conformity with generally accepted accounting principles requires the Plan Administrator to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the accounting period. Actual results could differ from those estimates. (e) Reclassification Certain reclassifications have been made to prior year's financial statements to conform to the current year's presentation. 3. Investments During the years ended December 31, 1997 and 1996, the Plan's investments (including investments bought, sold and held) appreciated in value by $1,014 million and $422 million respectively, as follows: 1997 1996 ---- ---- Stock funds $ 765,199,876 $ 294,827,004 Mutual funds 249,129,721 127,018,004 Other 125,084 -- --------------- --------------- $ 1,014,454,681 $ 421,845,008 =============== =============== A summary of the investments in the Plan as of December 31, 1997 and 1996 is listed below. "Funds not yet invested" represent the line item "cash" on the accompanying statements of net assets available for plan benefits. Such amounts are included in a short-term liquid reserve fund pending allocation to the appropriate investment funds. F-14 Travelers Group 401(k) Savings Plan Notes to Financial Statements 3. Investments (Continued) 1997 Investment Funds Cost Value --------------------- ---- ----- Deferred Profit Sharing Plan Invested $ 63,194 $ 63,194 -------------- -------------- Total 63,194 63,194 -------------- -------------- Travelers Common Stock Fund Invested 447,581,950 1,661,311,551 Funds not yet invested 1,970,467 1,970,467 -------------- -------------- Total 449,552,417 1,663,282,018 -------------- -------------- American Express Common Stock Fund Invested 39,300,908 131,792,887 Funds not yet invested 10,855 10,855 -------------- -------------- Total 39,311,763 131,803,742 -------------- -------------- Van Kampen American Capital Reserve Fund Invested 10,514,136 10,514,136 Funds not yet invested 16 16 -------------- -------------- Total 10,514,152 10,514,152 -------------- -------------- Van Kampen American Capital Enterprise Fund Invested 50,394,719 61,770,464 Funds not yet invested 1,081 1,081 -------------- -------------- Total 50,395,800 61,771,545 -------------- -------------- Van Kampen American Capital Government Securities Fund Invested 4,712,686 4,666,556 Funds not yet invested 3 3 -------------- -------------- Total 4,712,689 4,666,559 -------------- -------------- F-15 Travelers Group 401(k) Savings Plan Notes to Financial Statements 3. Investments (Continued) 1997 Investment Funds Cost Value --------------------- ---- ----- Van Kampen American Capital Comstock Fund Invested $ 14,292,544 $ 14,890,615 Funds not yet invested 3 3 -------------- -------------- Total 14,292,547 14,890,618 -------------- -------------- Van Kampen American Capital Emerging Growth Fund Invested 116,290,325 148,374,110 Funds not yet invested 1,175 1,175 -------------- -------------- Total 116,291,500 148,375,285 -------------- -------------- Common Sense Money Market Fund Invested 2,436,540 2,436,540 Funds not yet invested 27 27 -------------- -------------- Total 2,436,567 2,436,567 -------------- -------------- Common Sense Government Fund Invested 615,668 601,480 Funds not yet invested 15 15 -------------- -------------- Total 615,683 601,495 -------------- -------------- Common Sense Growth & Income Fund Invested 4,446,012 4,696,405 Funds not yet invested 17 17 -------------- -------------- Total 4,446,029 4,696,422 -------------- -------------- Common Sense Growth Fund Invested 4,610,085 5,139,348 Funds not yet invested 23 23 -------------- -------------- Total 4,610,108 5,139,371 -------------- -------------- F-16 Travelers Group 401(k) Savings Plan Notes to Financial Statements 3. Investments (Continued) 1997 Investment Funds Cost Value --------------------- ---- ----- Smith Barney Equity Income Fund Invested $ 15,016,496 $ 144,030,836 Funds not yet invested 834 834 -------------- -------------- Total 15,017,330 144,031,670 -------------- -------------- Smith Barney U.S. Government Securities Fund Invested 22,372,262 22,818,510 Funds not yet invested 692 692 -------------- -------------- Total 22,372,954 22,819,202 -------------- -------------- Smith Barney Money Fund Invested 51,341,355 51,341,355 Funds not yet invested 880 880 -------------- -------------- Total 51,342,235 51,342,235 -------------- -------------- Smith Barney International Equity Fund Invested 106,204,777 120,881,658 Funds not yet invested 744 744 -------------- -------------- Total 106,205,521 120,882,402 -------------- -------------- Smith Barney Aggressive Growth Fund Invested 31,230,599 44,989,795 Funds not yet invested 845 845 -------------- -------------- Total 31,231,444 44,990,640 -------------- -------------- Smith Barney Appreciation Fund Invested 153,090,589 193,899,159 Funds not yet invested 811 811 -------------- -------------- Total 153,091,400 193,899,970 -------------- -------------- F-17 Travelers Group 401(k) Savings Plan Notes to Financial Statements 3. Investments (Continued) 1997 Investment Funds Cost Value --------------------- ---- ----- Smith Barney Diversified Strategic Income Fund Invested $ 20,465,071 $ 20,380,833 Funds not yet invested 799 799 ------------ ------------ Total 20,465,870 20,381,632 ------------ ------------ Smith Barney Utilities Fund Invested 10,029,524 11,394,421 Funds not yet invested 803 803 ------------ ------------ Total 10,030,327 11,395,224 ------------ ------------ Smith Barney Guaranteed Income Fund Invested 149,626,246 149,626,246 Funds not yet invested 263,184 263,184 ------------ ------------ Total 149,889,430 149,889,430 ------------ ------------ Smith Barney Special Equities Fund Invested 15,768,355 14,341,800 Funds not yet invested 813 813 ------------ ------------ Total 15,769,168 14,342,613 ------------ ------------ Smith Barney Managed Growth Fund Invested 26,532,285 29,569,359 Funds not yet invested 827 827 ------------ ------------ Total 26,533,112 29,570,186 ------------ ------------ Concert Allocation Series High Growth Portfolio Invested 2,865,312 2,784,406 Funds not yet invested 27 27 ------------ ------------ Total 2,865,339 2,784,433 ------------ ------------ F-18 Travelers Group 401(k) Savings Plan Notes to Financial Statements 3. Investments (Continued) 1997 Investment Funds Cost Value --------------------- ---- ----- Concert Allocation Series Growth Portfolio Invested $ 2,784,112 $ 2,711,780 Funds not yet invested 19 19 ------------ ------------ Total 2,784,131 2,711,799 ------------ ------------ Concert Allocation Series Balanced Portfolio Invested 2,693,332 2,629,801 Funds not yet invested 49 49 ------------ ------------ Total 2,693,381 2,629,850 ------------ ------------ Concert Allocation Series Conservative Portfolio Invested 610,286 594,928 Funds not yet invested 35 35 ------------ ------------ Total 610,321 594,963 ------------ ------------ Concert Allocation Series Income Portfolio Invested 610,401 602,848 Funds not yet invested 109 109 ------------ ------------ Total 610,510 602,957 ------------ ------------ Salomon Brothers Institutional Money Market Fund Invested 68,906,636 68,906,636 Funds not yet invested (1,046,623) (1,046,623) ------------ ------------ Total 67,860,013 67,860,013 ------------ ------------ Salomon Brothers Capital Fund Invested 85,766,879 96,571,938 Funds not yet invested -- -- ------------ ------------ Total 85,766,879 96,571,938 ------------ ------------ F-19 Travelers Group 401(k) Savings Plan Notes to Financial Statements 3. Investments (Continued) 1997 Investment Funds Cost Value --------------------- ---- ----- Bankers Trust Index Equity Fund Invested $ 58,327,650 $137,211,432 Funds not yet invested 1,102 1,102 ------------ ------------ Total 58,328,752 137,212,534 ------------ ------------ Europacific Growth Fund Invested 62,833,371 69,993,825 Funds not yet invested 9,670 9,670 ------------ ------------ Total 62,843,041 70,003,495 ------------ ------------ Putnam OTC & Emerging Growth Fund Invested 31,499,917 36,305,689 Funds not yet invested 172 172 ------------ ------------ Total 31,500,089 36,305,861 ------------ ------------ Templeton Developing Markets Trust Invested 23,176,996 20,370,381 Funds not yet invested (7,680) (7,680) ------------ ------------ Total 23,169,316 20,362,701 ------------ ------------ Fidelity Blue Chip Growth Fund Invested 9,333,747 10,573,734 Funds not yet invested -- -- ------------ ------------ Total 9,333,747 10,573,734 ------------ ------------ Salomon Brothers High Yield Bond Fund Invested 10,243,057 10,455,154 Funds not yet invested 97 97 ------------ ------------ Total 10,243,154 10,455,251 ------------ ------------ F-20 Travelers Group 401(k) Savings Plan Notes to Financial Statements 3. Investments (Continued) 1997 Investment Funds Cost Value --------------------- ---- ----- BGI Tactical Asset Allocation Fund Invested $ 9,811,448 $ 13,885,715 Funds not yet invested 91 91 ------------ ------------ Total 9,811,539 13,885,806 ------------ ------------ SBAM Broad Market Fixed Income Fund Invested 3,898,699 3,935,125 Funds not yet invested 683,926 683,926 ------------ ------------ Total 4,582,625 4,619,051 ------------ ------------ Fisher Francis Intermediate Bond Fund Invested 43,211,053 43,101,392 Funds not yet invested 6,944,723 6,944,723 ------------ ------------ Total 50,155,776 50,046,115 ------------ ------------ Salomon Investment Contract Fund Invested 73,808,224 73,808,224 Funds not yet invested -- -- ------------ ------------ Total 73,808,224 73,808,224 ------------ ------------ Guaranteed Annuity Contracts Invested 8,988,512 8,988,512 ------------ ------------ Total 8,988,512 8,988,512 ------------ ------------ Universal Life Insurance Contract Invested 55,493 55,493 ------------ ------------ Total 55,493 55,493 ------------ ------------ F-21 Travelers Group 401(k) Savings Plan Notes to Financial Statements 3. Investments (Continued) 1997 Investment Funds Cost Value --------------------- ---- ----- American Odyssey Core Equity Fund Invested $ 8,820,054 $ 11,102,905 ------------ ------------ Total 8,820,054 11,102,905 ------------ ------------ American Odyssey Emerging Opportunities Fund Invested 5,250,692 6,148,638 ------------ ------------ Total 5,250,692 6,148,638 ------------ ------------ American Odyssey International Equity Fund Invested 4,202,653 5,144,165 ------------ ------------ Total 4,202,653 5,144,165 ------------ ------------ American Odyssey Long-Term Bond Fund Invested 928,113 1,016,543 ------------ ------------ Total 928,113 1,016,543 ------------ ------------ American Odyssey Intermediate-Term Bond Fund Invested 586,050 637,343 ------------ ------------ Total 586,050 637,343 ------------ ------------ American Odyssey Short-Term Bond Fund Invested 121,146 111,499 ------------ ------------ Total 121,146 111,499 ------------ ------------ American Odyssey In-Time Investing Fund Invested 803,395 1,082,064 ------------ ------------ Total 803,395 1,082,064 ------------ ------------ F-22 Travelers Group 401(k) Savings Plan Notes to Financial Statements 3. Investments (Continued) 1997 Investment Funds Cost Value --------------------- ---- ----- Fixed Savings Fund Invested $406,088,810 $406,088,810 ------------ ------------ Total 406,088,810 406,088,810 ------------ ------------ Fixed IRA Fund Invested 58,127,388 58,127,388 ------------ ------------ Total 58,127,388 58,127,388 ------------ ------------ Russell 2000 Fund Invested 41,911,733 64,058,436 Funds not yet invested 1,755 1,755 ------------ ------------ Total 41,913,488 64,060,191 ------------ ------------ S&P 500 Flagship Fund Invested 65,834,861 118,520,465 Funds not yet invested 2,665 2,665 ------------ ------------ Total 65,837,526 118,523,130 ------------ ------------ ESOP Fund Invested 153,583,316 379,039,600 Funds not yet invested 9,479,216 9,479,216 ------------ ------------ Total 163,062,532 388,518,816 ------------ ------------ Stable Interest Fund Invested 17,039,728 17,039,728 ------------ ------------ Total 17,039,728 17,039,728 ------------ ------------ F-23 Travelers Group 401(k) Savings Plan Notes to Financial Statements 3. Investments (Continued) 1997 Investment Funds Cost Value --------------------- ---- ----- TAP Common Stock Fund Invested $ 36,396,446 $ 66,506,184 Funds not yet invested 36,455 36,455 -------------- -------------- Total 36,432,901 66,542,639 -------------- -------------- Loan Fund Invested 86,936,264 86,936,264 -------------- -------------- Total 86,936,264 86,936,264 -------------- -------------- 1997 Total Investments and Cash $2,701,352,822 $4,692,939,025 ============== ============== 1996 Investment Funds --------------------- Deferred Profit Sharing Plan Invested $ 69,738 $ 69,738 -------------- -------------- Total 69,738 69,738 -------------- -------------- Travelers Common Stock Fund Invested 332,313,775 871,309,221 Funds not yet invested 1,363,307 1,363,307 -------------- -------------- Total 333,677,082 872,672,528 -------------- -------------- American Express Common Stock Fund Invested 45,233,192 92,516,434 Funds not yet invested 6,046 6,046 -------------- -------------- Total 45,239,238 92,522,480 -------------- -------------- F-24 Travelers Group 401(k) Savings Plan Notes to Financial Statements 3. Investments (Continued) 1996 Investment Funds Cost Value --------------------- ---- ----- Van Kampen American Capital Reserve Fund Invested $ 11,293,897 $ 11,293,897 Funds not yet invested 72 72 ------------ ------------ Total 11,293,969 11,293,969 ------------ ------------ Van Kampen American Capital Enterprise Fund Invested 35,088,837 40,325,261 Funds not yet invested 781 781 ------------ ------------ Total 35,089,618 40,326,042 ------------ ------------ Van Kampen American Capital Government Securities Fund Invested 4,960,687 4,800,137 Funds not yet invested 31 31 ------------ ------------ Total 4,960,718 4,800,168 ------------ ------------ Van Kampen American Capital Comstock Fund Invested 12,065,019 11,538,961 Funds not yet invested 89 89 ------------ ------------ Total 12,065,108 11,539,050 ------------ ------------ Van Kampen American Capital Emerging Growth Fund Invested 93,333,932 115,878,893 Funds not yet invested 683 683 ------------ ------------ Total 93,334,615 115,879,576 ------------ ------------ Common Sense Money Market Fund Invested 2,424,328 2,424,328 Funds not yet invested 102 102 ------------ ------------ Total 2,424,430 2,424,430 ------------ ------------ F-25 Travelers Group 401(k) Savings Plan Notes to Financial Statements 3. Investments (Continued) 1996 Investment Funds Cost Value --------------------- ---- ----- Common Sense Government Fund Invested $ 897,874 $ 848,658 Funds not yet invested 15 15 ------------ ------------ Total 897,889 848,673 ------------ ------------ Common Sense Growth & Income Fund Invested 3,261,771 3,460,659 Funds not yet invested 827 827 ------------ ------------ Total 3,262,598 3,461,486 ------------ ------------ Common Sense Growth Fund Invested 3,675,207 4,094,073 Funds not yet invested 41 41 ------------ ------------ Total 3,675,248 4,094,114 ------------ ------------ Smith Barney Equity Income Fund Invested 100,026,545 113,137,894 Funds not yet invested 108,145 108,145 ------------ ------------ Total 100,134,690 113,246,039 ------------ ------------ Smith Barney U.S. Government Securities Fund Invested 19,656,510 19,514,448 Funds not yet invested 28,106 28,106 ------------ ------------ Total 19,684,616 19,542,554 ------------ ------------ Smith Barney Income Return Fund Funds not yet invested 500 500 ------------ ------------ Total 500 500 ------------ ------------ F-26 Travelers Group 401(k) Savings Plan Notes to Financial Statements 3. Investments (Continued) 1996 Investment Funds Cost Value --------------------- ---- ----- Smith Barney Money Fund Invested $ 36,960,963 $ 36,960,963 Funds not yet invested 782 782 ------------ ------------ Total 36,961,745 36,961,745 ------------ ------------ Smith Barney International Equity Fund Invested 108,446,719 123,570,164 Funds not yet invested 120,492 120,492 ------------ ------------ Total 108,567,211 123,690,656 ------------ ------------ Smith Barney High Income Fund Funds not yet invested 682 682 ------------ ------------ Total 682 682 ------------ ------------ Smith Barney Aggressive Growth Fund Invested 25,469,615 33,026,655 Funds not yet invested 807 807 ------------ ------------ Total 25,470,422 33,027,462 ------------ ------------ Smith Barney Appreciation Fund Invested 121,128,556 153,001,216 ------------ ------------ Total 121,128,556 153,001,216 ------------ ------------ Smith Barney Diversified Strategic Income Fund Invested 17,350,256 17,442,154 Funds not yet invested 846 846 ------------ ------------ Total 17,351,102 17,443,000 ------------ ------------ F-27 Travelers Group 401(k) Savings Plan Notes to Financial Statements 3. Investments (Continued) 1996 Investment Funds Cost Value --------------------- ---- ----- Smith Barney Utilities Fund Invested $ 12,770,411 $ 13,271,144 Funds not yet invested 30,120 30,120 ------------ ------------ Total 12,800,531 13,301,264 ------------ ------------ Smith Barney Guaranteed Income Fund Invested 146,832,175 146,832,175 Funds not yet invested 160,998 160,998 ------------ ------------ Total 146,993,173 146,993,173 ------------ ------------ Smith Barney Special Equities Fund Invested 13,533,860 12,672,596 Funds not yet invested 770 770 ------------ ------------ Total 13,534,630 12,673,366 ------------ ------------ Smith Barney Managed Growth Fund Invested 20,348,755 22,293,836 Funds not yet invested 757 757 ------------ ------------ Total 20,349,512 22,294,593 ------------ ------------ Guaranteed Annuity Contracts Invested 9,842,206 9,842,206 ------------ ------------ Total 9,842,206 9,842,206 ------------ ------------ Universal Life Insurance Contract Invested 42,020 42,020 ------------ ------------ Total 42,020 42,020 ------------ ------------ F-28 Travelers Group 401(k) Savings Plan Notes to Financial Statements 3. Investments (Continued) 1996 Investment Funds Cost Value --------------------- ---- ----- American Odyssey Core Equity Fund Invested $6,580,650 $7,370,760 ---------- ---------- Total 6,580,650 7,370,760 ---------- ---------- American Odyssey Emerging Opportunities Fund Invested 4,329,452 5,117,401 ---------- ---------- Total 4,329,452 5,117,401 ---------- ---------- American Odyssey International Equity Fund Invested 4,143,706 4,328,109 ---------- ---------- Total 4,143,706 4,328,109 ---------- ---------- American Odyssey Long-Term Bond Fund Invested 944,780 1,020,989 ---------- ---------- Total 944,780 1,020,989 ---------- ---------- American Odyssey Intermediate-Term Bond Fund Invested 572,788 588,449 ---------- ---------- Total 572,788 588,449 ---------- ---------- American Odyssey Short-Term Bond Fund Invested 336,584 333,958 ---------- ---------- Total 336,584 333,958 ---------- ---------- American Odyssey In-Time Investing Fund Invested 661,418 653,673 ---------- ---------- Total 661,418 653,673 ---------- ---------- F-29 Travelers Group 401(k) Savings Plan Notes to Financial Statements 3. Investments (Continued) 1996 Investment Funds Cost Value --------------------- ---- ----- Fixed Savings Fund Invested $396,851,788 $396,851,788 ------------ ------------ Total 396,851,788 396,851,788 ------------ ------------ Fixed IRA Fund Invested 61,959,660 61,959,660 ------------ ------------ Total 61,959,660 61,959,660 ------------ ------------ Russell 2000 Fund Invested 34,169,822 46,096,698 Funds not yet invested 182 182 ------------ ------------ Total 34,170,004 46,096,880 ------------ ------------ S&P 500 Flagship Fund Invested 52,460,900 79,731,555 Funds not yet invested 598 598 ------------ ------------ Total 52,461,498 79,732,153 ------------ ------------ ESOP Fund Invested 164,521,877 251,168,817 Funds not yet invested 7,579,000 7,579,000 ------------ ------------ Total 172,100,877 258,747,817 ------------ ------------ Stable Interest Fund Invested 18,263,998 18,263,998 ------------ ------------ Total 18,263,998 18,263,998 ------------ ------------ F-30 Travelers Group 401(k) Savings Plan Notes to Financial Statements 3. Investments (Continued) 1996 Investment Funds Cost Value --------------------- ---- ----- TAP Common Stock Fund Invested $ 45,529,053 $ 67,457,543 Funds not yet invested 1,176 1,176 -------------- -------------- Total 45,530,229 67,458,719 -------------- -------------- Loan Fund Invested 66,269,195 66,269,195 -------------- -------------- Total 66,269,195 66,269,195 -------------- -------------- 1996 Total Investments and Cash $2,044,028,474 $2,876,786,279 ============== ============== 4. Federal Income Tax Consequences The Plan obtained its latest determination letter on November 1, 1996, in which the Internal Revenue Service stated that the Plan, as then designed, was in compliance with the applicable requirements of the Internal Revenue Code. The Plan has been amended since receiving the determination letter. However, the Plan Administrator and the Plan's tax counsel believe that the Plan is currently designed and being operated in compliance with the applicable requirements of the Internal Revenue Code. Therefore, no provision for income taxes has been included in the Plan's financial statements. Matching employer contributions, pretax contributions, Discount Contributions and the Plan earnings on all contributions are not taxable to participants until they are withdrawn by or distributed to the participants. Also, unrealized appreciation on shares of Travelers common stock, Travelers Property Casualty Corp. common stock and American Express common stock distributed in a qualifying lump-sum distribution is not taxable at the time of distribution. 5. Related Party Transactions Certain Plan investments are shares of stock issued by Travelers or its subsidiaries. Travelers is the Plan sponsor as defined by the Plan. Certain Plan investments are shares of registered investment companies (mutual funds, stock funds and investment contracts) that are valued by Smith Barney Mutual Fund Management Inc. ("SB Mutual") and Salomon Brothers Asset Management Inc ("Salomon Asset Management"). Such transactions qualify as party-in-interest. F-31 Travelers Group 401(k) Savings Plan Notes to Financial Statements 5. Related Party Transactions (Continued) Substantially all transactions of the Copeland portion of the Plan involved related parties as the manager of, transfer agent of and dividend disbursement agent for the American Odyssey Funds. Copeland is an indirect wholly owned subsidiary of Travelers. The Travelers Insurance Company, which issued group annuity contracts held by the Plan trustee and provides recordkeeping and other administrative services regarding the Plan, is also an indirect wholly owned subsidiary of Travelers. 6. Subsequent Events In January 1998, all of the outstanding shares of Series C Convertible Preferred Stock were converted into 6,941,859 shares of Travelers common stock. F-32 Travelers Group 401(k) Savings Plan Notes to Financial Statements 7. Investment Allocation With Fund Information Employee, employer, and rollover contributions are invested in various funds as indicated in notes 2 and 3. These contributions are directed to each fund at the discretion of the individual participant. Net assets available for plan benefits and changes in net assets available for plan benefits, by fund, are as follows:
December 31, 1997 --------------------------------------------------------------------------------------- Van Kampen Van Kampen Van Kampen Travelers American Capital American Capital American Capital Common Stock Emerging Government Comstock Fund Growth Fund Securities Fund Fund ----------------- ------------------ ------------------- ----------------------- Assets Investments (notes 2 and 3) $ 1,661,311,551 148,374,110 4,666,556 14,890,615 Cash 1,970,467 1,175 3 3 Receivables: Contributions 484,888 20,290 631 18,846 Dividends and other 3,609,777 37 4 15 ----------------- ------------------ ------------------- ----------------------- Total receivables 4,094,665 20,327 635 18,861 ----------------- ------------------ ------------------- ----------------------- Total assets 1,667,376,683 148,395,612 4,667,194 14,909,479 ----------------- ------------------ ------------------- ----------------------- Liabilities Forfeiture credits due to employer - - - - ESOP note payable - - - - Payable for investment purchases 1,590,067 - - - ----------------- ------------------ ------------------- ----------------------- Total liabilities 1,590,067 - - - Receivable from (payable to) other funds 4,021,002 - - - ----------------- ------------------ ------------------- ----------------------- Net assets available for plan benefits $ 1,669,807,618 148,395,612 4,667,194 14,909,479 ================= ================== =================== ======================= Investment activity: Dividends 12,448,553 13,389,897 306,971 2,068,801 Interest 65,117 7,022 367 188,592 Appreciation (depreciation) in fair value of investments 700,288,040 12,563,742 69,214 1,208,350 ----------------- ------------------ ------------------- ----------------------- 712,801,710 25,960,661 376,552 3,465,743 Less: Trustee/administrative expenses (555,906) (93,400) (8,019) (16,880) ----------------- ------------------ ------------------- ----------------------- Net investment income (loss) 712,245,804 25,867,261 368,533 3,448,863 ----------------- ------------------ ------------------- ----------------------- Contributions: Participant 64,532,708 18,973,018 551,452 1,245,903 Employer - (813) - - ----------------- ------------------ ------------------- ----------------------- Total contributions 64,532,708 18,972,205 551,452 1,245,903 ----------------- ------------------ ------------------- ----------------------- Distributions to participants (73,673,547) (6,901,403) (287,751) (863,271) Loan activity, net (6,428,158) (453,956) (51,508) (63,107) Transfers from (to) other funds 48,655,133 (4,987,034) (713,817) (401,924) ----------------- ------------------ ------------------- ----------------------- Net increase (decrease) 745,331,940 32,497,073 (133,091) 3,366,464 ----------------- ------------------ ------------------- ----------------------- Net assets available for plan benefits: Beginning of year 888,648,289 115,898,539 4,800,285 11,543,015 Transfers from (to) other plans (note 1) 35,827,389 - - - ----------------- ------------------ ------------------- ----------------------- End of year $ 1,669,807,618 148,395,612 4,667,194 14,909,479 ================= ================== =================== ======================= December 31, 1997 ---------------------------------------------------------------------------------- Van Kampen Common Common Common American Capital Sense Sense Sense Reserve Growth Growth & Income Government Fund Fund Fund Fund -------------------- ----------------- ----------------- ----------------- Assets Investments (notes 2 and 3) 10,514,136 5,139,348 4,696,405 601,480 Cash 16 23 17 15 Receivables: Contributions 514 213 805 - Dividends and other 13 4 1 - -------------------- ----------------- ----------------- ----------------- Total receivables 527 217 806 - -------------------- ----------------- ----------------- ----------------- Total assets 10,514,679 5,139,588 4,697,228 601,495 -------------------- ----------------- ----------------- ----------------- Liabilities Forfeiture credits due to employer - - - - ESOP note payable - - - - Payable for investment purchases - - - - -------------------- ----------------- ----------------- ----------------- Total liabilities - - - - Receivable from (payable to) other funds - - - - -------------------- ----------------- ----------------- ----------------- Net assets available for plan benefits 10,514,679 5,139,588 4,697,228 601,495 ==================== ================= ================= ================= Investment activity: Dividends 505,987 1,211,263 1,265,201 47,735 Interest 679 189 191 84 Appreciation (depreciation) in fair value of investments - 299,151 137,364 13,100 -------------------- ----------------- ----------------- ----------------- 506,666 1,510,603 1,402,756 60,919 Less: Trustee/administrative expenses (14,981) (8,003) (7,577) (3,796) -------------------- ----------------- ----------------- ----------------- Net investment income (loss) 491,685 1,502,600 1,395,179 57,123 -------------------- ----------------- ----------------- ----------------- Contributions: Participant 594,427 359,988 299,759 52,023 Employer - - - - -------------------- ----------------- ----------------- ----------------- Total contributions 594,427 359,988 299,759 52,023 -------------------- ----------------- ----------------- ----------------- Distributions to participants (1,114,189) (555,189) (192,448) (20,514) Loan activity, net (148,505) (24,500) (37,195) (13,242) Transfers from (to) other funds (603,043) (236,751) (229,554) (322,278) -------------------- ----------------- ----------------- ----------------- Net increase (decrease) (779,625) 1,046,148 1,235,741 (246,888) -------------------- ----------------- ----------------- ----------------- Net assets available for plan benefits: Beginning of year 11,294,304 4,093,440 3,461,487 848,383 Transfers from (to) other plans (note 1) - - - - -------------------- ----------------- ----------------- ----------------- End of year 10,514,679 5,139,588 4,697,228 601,495 ==================== ================= ================= ================= December 31, 1997 ------------------------------------- Concert Common Allocation Sense Series Money Market High Growth Fund Portfolio ----------------- ----------------- Assets Investments (notes 2 and 3) 2,436,540 2,784,406 Cash 27 27 Receivables: Contributions - 18,680 Dividends and other 3 65,247 ----------------- ----------------- Total receivables 3 83,927 ----------------- ----------------- Total assets 2,436,570 2,868,360 ----------------- ----------------- Liabilities Forfeiture credits due to employer - - ESOP note payable - - Payable for investment purchases - 345 ----------------- ----------------- Total liabilities - 345 Receivable from (payable to) other funds - - ----------------- ----------------- Net assets available for plan benefits 2,436,570 2,868,015 ================= ================= Investment activity: Dividends 114,444 31,755 Interest 183 62 Appreciation (depreciation) in fair value of investments - (5,969) ----------------- ----------------- 114,627 25,848 Less: Trustee/administrative expenses (5,667) (2,308) ----------------- ----------------- Net investment income (loss) 108,960 23,540 ----------------- ----------------- Contributions: Participant 116,684 1,176,997 Employer (838) - ----------------- ----------------- Total contributions 115,846 1,176,997 ----------------- ----------------- Distributions to participants (262,076) (17,092) Loan activity, net (30,668) (55,316) Transfers from (to) other funds 80,122 1,739,886 ----------------- ----------------- Net increase (decrease) 12,184 2,868,015 ----------------- ----------------- Net assets available for plan benefits: Beginning of year 2,424,386 - Transfers from (to) other plans (note 1) - - ----------------- ----------------- End of year 2,436,570 2,868,015 ================= =================
F-33 Travelers Group 401(k) Savings Plan Notes to Financial Statements 7. Investment Allocation (Continued)
December 31, 1997 ---------------------------------------------------------------------------------- Concert Concert Concert Concert Allocation Allocation Allocation Allocation Series Series Series Series Growth Balanced Conservative Income Portfolio Portfolio Portfolio Portfolio -------------------- ------------------ ------------------ ----------------- Assets Investments (notes 2 and 3) $ 2,711,780 2,629,801 594,928 602,848 Cash 19 49 35 109 Receivables: Contributions 25,020 34,826 2,062 748 Dividends and other 38,999 190,346 16,529 45,851 -------------------- ------------------ ------------------ ----------------- Total receivables 64,019 225,172 18,591 46,599 -------------------- ------------------ ------------------ ----------------- Total assets 2,775,818 2,855,022 613,554 649,556 -------------------- ------------------ ------------------ ----------------- Liabilities Forfeiture credits due to employer - - - - ESOP note payable - - - - Payable for investment purchases 353 337 256 216 -------------------- ------------------ ------------------ ----------------- Total liabilities 353 337 256 216 Receivable from (payable to) other funds - - - - -------------------- ------------------ ------------------ ----------------- Net assets available for plan benefits $ 2,775,465 2,854,685 613,298 649,340 ==================== ================== ================== ================= Investment activity: Dividends 39,855 35,523 15,924 23,685 Interest 35 35 50 12 Appreciation (depreciation) in fair value of investments 53,510 35,836 18,663 8,570 -------------------- ------------------ ------------------ ----------------- 93,400 71,394 34,637 32,267 Less: Trustee/administrative expenses (2,214) (2,209) (2,067) (2,167) -------------------- ------------------ ------------------ ----------------- Net investment income (loss) 91,186 69,185 32,570 30,100 -------------------- ------------------ ------------------ ----------------- Contributions: Participant 992,599 689,672 240,892 137,279 Employer - - - - -------------------- ------------------ ------------------ ----------------- Total contributions 992,599 689,672 240,892 137,279 -------------------- ------------------ ------------------ ----------------- Distributions to participants (12,484) 17,922 (104,016) (2,694) Loan activity, net (20,760) (53,005) (19,651) (2,134) Transfers from (to) other funds 1,724,924 2,130,911 463,503 486,789 -------------------- ------------------ ------------------ ----------------- Net increase (decrease) 2,775,465 2,854,685 613,298 649,340 -------------------- ------------------ ------------------ ----------------- Net assets available for plan benefits: Beginning of year - - - - Transfers from (to) other plans (note 1) - - - - -------------------- ------------------ ------------------ ----------------- End of year $ 2,775,465 2,854,685 613,298 649,340 ==================== ================== ================== ================= December 31, 1997 --------------------------------------------------------------------------------- Smith Barney Smith Barney Van Kampen American U.S. Government Income American Capital Express Securities Return Enterprise Common Fund Fund Fund Stock Fund ------------------ ------------------ -------------------- ------------------ Assets Investments (notes 2 and 3) 22,818,510 - 61,770,464 131,792,887 Cash 692 - 1,081 10,855 Receivables: Contributions 115,791 - 13,379 - Dividends and other 5 - 16 336,968 ------------------ ------------------ -------------------- ------------------ Total receivables 115,796 - 13,395 336,968 ------------------ ------------------ -------------------- ------------------ Total assets 22,934,998 - 61,784,940 132,140,710 ------------------ ------------------ -------------------- ------------------ Liabilities Forfeiture credits due to employer - - - - ESOP note payable - - - - Payable for investment purchases - - - - ------------------ ------------------ -------------------- ------------------ Total liabilities - - - - Receivable from (payable to) other funds - - - - ------------------ ------------------ -------------------- ------------------ Net assets available for plan benefits 22,934,998 - 61,784,940 132,140,710 ================== ================== ==================== ================== Investment activity: Dividends 1,373,353 - 6,100,144 1,382,436 Interest 731 - 1,104 1,645 Appreciation (depreciation) in fair value of investments 577,128 - 6,579,603 50,726,202 ------------------ ------------------ -------------------- ------------------ 1,951,212 - 12,680,851 52,110,283 Less: Trustee/administrative expenses (17,530) - (35,413) (85,580) ------------------ ------------------ -------------------- ------------------ Net investment income (loss) 1,933,682 - 12,645,438 52,024,703 ------------------ ------------------ -------------------- ------------------ Contributions: Participant 1,745,837 - 6,863,798 - Employer (213) - - - ------------------ ------------------ -------------------- ------------------ Total contributions 1,745,624 - 6,863,798 - ------------------ ------------------ -------------------- ------------------ Distributions to participants (1,728,466) (59,771) (2,491,488) (6,226,279) Loan activity, net (22,597) (3,237) (60,852) (767,295) Transfers from (to) other funds 917,627 (3,541,549) 4,481,598 (7,457,558) ------------------ ------------------ -------------------- ------------------ Net increase (decrease) 2,845,870 (3,604,557) 21,438,494 37,573,571 ------------------ ------------------ -------------------- ------------------ Net assets available for plan benefits: Beginning of year 20,089,128 3,604,557 40,346,446 94,567,139 Transfers from (to) other plans (note 1) - - - - ------------------ ------------------ -------------------- ------------------ End of year 22,934,998 - 61,784,940 132,140,710 ================== ================== ==================== ================== December 31, 1997 ---------------------------------------------------------------- Smith Barney Smith Barney Aggressive Smith Barney Money Growth Appreciation Fund Fund Fund ------------------- -------------------- -------------------- Assets Investments (notes 2 and 3) 51,341,355 44,989,795 193,899,159 Cash 880 845 811 Receivables: Contributions (771) (11) 4,574 Dividends and other 8 12 25 ------------------- -------------------- -------------------- Total receivables (763) 1 4,599 ------------------- -------------------- -------------------- Total assets 51,341,472 44,990,641 193,904,569 ------------------- -------------------- -------------------- Liabilities Forfeiture credits due to employer - - - ESOP note payable - - - Payable for investment purchases - - - ------------------- -------------------- -------------------- Total liabilities - - - Receivable from (payable to) other funds - - - ------------------- -------------------- -------------------- Net assets available for plan benefits 51,341,472 44,990,641 193,904,569 =================== ==================== ==================== Investment activity: Dividends 2,547,495 2,061,244 28,529,882 Interest 2,021 865 3,106 Appreciation (depreciation) in fair value of investments - 7,379,703 12,876,724 ------------------- -------------------- -------------------- 2,549,516 9,441,812 41,409,712 Less: Trustee/administrative expenses (36,006) (28,488) (109,404) ------------------- -------------------- -------------------- Net investment income (loss) 2,513,510 9,413,324 41,300,308 ------------------- -------------------- -------------------- Contributions: Participant 3,877,387 4,090,227 13,616,193 Employer (263) (2,022) - ------------------- -------------------- -------------------- Total contributions 3,877,124 4,088,205 13,616,193 ------------------- -------------------- -------------------- Distributions to participants (4,987,968) (2,309,801) (8,747,512) Loan activity, net (799,410) (414,170) (898,399) Transfers from (to) other funds 13,679,081 1,182,948 (5,033,256) ------------------- -------------------- -------------------- Net increase (decrease) 14,282,337 11,960,506 40,237,334 ------------------- -------------------- -------------------- Net assets available for plan benefits: Beginning of year 37,059,135 33,030,135 153,667,235 Transfers from (to) other plans (note 1) - - - ------------------- -------------------- -------------------- End of year 51,341,472 44,990,641 193,904,569 =================== ==================== ====================
F-34 Travelers Group 401(k) Savings Plan Notes to Financial Statements
December 31, 1997 --------------------------------------------------------------------------------------- Smith Barney Smith Barney International Diversified Smith Barney Equity Strategic High Smith Barney Fund Income Fund Income Fund Utilities Fund --------------------- --------------------- ------------------- -------------------- Assets Investments (notes 2 and 3) $ 120,881,658 20,380,833 - 11,394,421 Cash 744 799 - 803 Receivables: Contributions 3,271 128 - 488 Dividends and other 23 6 - 5 --------------------- --------------------- ------------------- -------------------- Total receivables 3,294 134 - 493 --------------------- --------------------- ------------------- -------------------- Total assets 120,885,696 20,381,766 - 11,395,717 --------------------- --------------------- ------------------- -------------------- Liabilities Forfeiture credits due to employer - - - - ESOP note payable - - - - Payable for investment purchases - - - - --------------------- --------------------- ------------------- -------------------- Total liabilities - - - - Receivable from (payable to) other funds - - - - --------------------- --------------------- ------------------- -------------------- Net assets available for plan benefits $ 120,885,696 20,381,766 - 11,395,717 ===================== ===================== =================== ==================== Investment activity: Dividends $ 362,310 1,701,404 - 1,149,813 Interest 3,712 467 - 520 Appreciation (depreciation) in fair value of investments 3,225,678 (185,354) - 1,161,265 --------------------- --------------------- ------------------- -------------------- 3,591,700 1,516,517 - 2,311,598 Less: Trustee/administrative expenses (86,467) (17,017) - (13,449) --------------------- --------------------- ------------------- -------------------- Net investment income (loss) 3,505,233 1,499,500 - 2,298,149 --------------------- --------------------- ------------------- -------------------- Contributions: Participant 16,581,148 2,374,561 - 1,466,704 Employer - - - - --------------------- --------------------- ------------------- -------------------- Total contributions 16,581,148 2,374,561 - 1,466,704 --------------------- --------------------- ------------------- -------------------- Distributions to participants (7,116,110) (1,169,518) (81,228) (843,700) Loan activity, net 29,435 9,410 (11,484) (117,104) Transfers from (to) other funds (15,876,801) 224,511 (4,506,862) (5,116,608) --------------------- --------------------- ------------------- -------------------- Net increase (decrease) (2,877,095) 2,938,464 (4,599,574) (2,312,559) --------------------- --------------------- ------------------- -------------------- Net assets available for plan benefits: Beginning of year 123,762,791 17,443,302 4,599,574 13,708,276 Transfers from (to) other plans (note 1) - - - - --------------------- --------------------- ------------------- -------------------- End of year $ 120,885,696 20,381,766 - 11,395,717 ===================== ===================== =================== ==================== December 31, 1997 --------------------------------------------------------------------------------------- Smith Barney Smith Barney Smith Barney Smith Barney Guaranteed Equity Special Managed Income Income Equities Growth Fund Fund Fund Fund -------------------- --------------------- ------------------ --------------------- Assets Investments (notes 2 and 3) 149,626,246 144,030,836 14,341,800 29,569,359 Cash 263,184 834 813 827 Receivables: Contributions (93) 3,073 4,836 6,422 Dividends and other 194 19 6 8 -------------------- --------------------- ------------------ --------------------- Total receivables 101 3,092 4,842 6,430 -------------------- --------------------- ------------------ --------------------- Total assets 149,889,531 144,034,762 14,347,455 29,576,616 -------------------- --------------------- ------------------ --------------------- Liabilities Forfeiture credits due to employer - - - - ESOP note payable - - - - Payable for investment purchases - - - - -------------------- --------------------- ------------------ --------------------- Total liabilities - - - - Receivable from (payable to) other funds - - - - -------------------- --------------------- ------------------ --------------------- Net assets available for plan benefits 149,889,531 144,034,762 14,347,455 29,576,616 ==================== ===================== ================== ===================== Investment activity: Dividends - 14,387,143 - 2,099,910 Interest 10,292,279 2,245 667 835 Appreciation (depreciation) in fair value of investments - 17,820,282 (750,743) 1,379,554 -------------------- --------------------- ------------------ --------------------- 10,292,279 32,209,670 (750,076) 3,480,299 Less: Trustee/administrative expenses (531,442) (82,029) (13,818) (20,925) -------------------- --------------------- ------------------ --------------------- Net investment income (loss) 9,760,837 32,127,641 (763,894) 3,459,374 -------------------- --------------------- ------------------ --------------------- Contributions: Participant 8,376,840 7,983,112 3,147,636 3,846,729 Employer 101,339 (440) - - -------------------- --------------------- ------------------ --------------------- Total contributions 8,478,179 7,982,672 3,147,636 3,846,729 -------------------- --------------------- ------------------ --------------------- Distributions to participants (9,476,079) (6,097,680) (685,844) (1,431,638) Loan activity, net (735,885) (257,322) 229,618 108,232 Transfers from (to) other funds (5,132,178) (3,321,710) (270,038) 1,295,790 -------------------- --------------------- ------------------ --------------------- Net increase (decrease) 2,894,874 30,433,601 1,657,478 7,278,487 -------------------- --------------------- ------------------ --------------------- Net assets available for plan benefits: Beginning of year 146,994,657 113,601,161 12,689,977 22,298,129 Transfers from (to) other plans (note 1) - - - - -------------------- --------------------- ------------------ --------------------- End of year 149,889,531 144,034,762 14,347,455 29,576,616 ==================== ===================== ================== ===================== December 31, 1997 ------------------------------------------------------------------ Deferred Profit Fixed Fixed Sharing Savings IRA Plan Fund Fund ------------------- --------------------- --------------------- Assets Investments (notes 2 and 3) 63,194 406,088,810 58,127,388 Cash - - - Receivables: Contributions - (589) - Dividends and other - 747,874 - ------------------- --------------------- --------------------- Total receivables - 747,285 - ------------------- --------------------- --------------------- Total assets 63,194 406,836,095 58,127,388 ------------------- --------------------- --------------------- Liabilities Forfeiture credits due to employer - - - ESOP note payable - - - Payable for investment purchases - 46,344 - ------------------- --------------------- --------------------- Total liabilities - 46,344 - Receivable from (payable to) other funds - - - ------------------- --------------------- --------------------- Net assets available for plan benefits 63,194 406,789,751 58,127,388 =================== ===================== ===================== Investment activity: Dividends 3,456 - - Interest - 27,757,495 3,827,738 Appreciation (depreciation) in fair value of investments - - - ------------------- --------------------- --------------------- 3,456 27,757,495 3,827,738 Less: Trustee/administrative expenses - - - ------------------- --------------------- --------------------- Net investment income (loss) 3,456 27,757,495 3,827,738 ------------------- --------------------- --------------------- Contributions: Participant - 23,897,144 - Employer - - - ------------------- --------------------- --------------------- Total contributions - 23,897,144 - ------------------- --------------------- --------------------- Distributions to participants (10,000) (36,226,164) (7,660,010) Loan activity, net - (365,070) - Transfers from (to) other funds - (4,890,814) - ------------------- --------------------- --------------------- Net increase (decrease) (6,544) 10,172,591 (3,832,272) ------------------- --------------------- --------------------- Net assets available for plan benefits: Beginning of year 69,738 396,617,160 61,959,660 Transfers from (to) other plans (note 1) - - - ------------------- --------------------- --------------------- End of year 63,194 406,789,751 58,127,388 =================== ===================== =====================
F-35 Travelers Group 401(k) Savings Plan Notes to Financial Statements
December 31, 1997 -------------------------------------------------------------------------------------- S & P 500 Russell Flagship 2000 ESOP Stable Fund Fund Fund Fund ------------------ ----------------- ------------------- ---------------------- Assets Investments (notes 2 and 3) $ 118,520,465 64,058,436 379,039,600 17,039,728 Cash 2,665 1,755 9,479,216 - Receivables: Contributions 41,604 7,768 - 20,879 Dividends and other 90,744 273,523 1,570 - ------------------- ----------------- ------------------- --------------------- Total receivables 132,348 281,291 1,570 20,879 ------------------- ----------------- ------------------- --------------------- Total assets 118,655,478 64,341,482 388,520,386 17,060,607 ------------------- ----------------- ------------------- --------------------- Liabilities Forfeiture credits due to employer - - - - ESOP note payable - - 17,450,000 - Payable for investment purchases 7,000 3,852 1,606,231 264,002 ------------------- ----------------- ------------------- --------------------- Total liabilities 7,000 3,852 19,056,231 264,002 Receivable from (payable to) other funds - - (16,388,816) - ------------------- ----------------- ------------------- --------------------- Net assets available for plan benefits $ 118,648,478 64,337,630 353,075,339 16,796,605 =================== ================= =================== ===================== Investment activity: Dividends $ - - 12,141,458 - Interest - - - 1,064,285 Appreciation (depreciation) in fair value of investments 28,102,738 11,600,629 145,416,891 - ------------------- ----------------- ------------------- --------------------- 28,102,738 11,600,629 157,558,349 1,064,285 Less: Trustee/administrative expenses - - - - ------------------- ----------------- ------------------- --------------------- Net investment income (loss) 28,102,738 11,600,629 157,558,349 1,064,285 ------------------- ----------------- ------------------- --------------------- Contributions: Participant 11,852,078 7,337,446 2,520,471 2,628,247 Employer - - - - ------------------- ----------------- ------------------- --------------------- Total contributions 11,852,078 7,337,446 2,520,471 2,628,247 ------------------- ----------------- ------------------- --------------------- Distributions to participants (6,496,528) (3,354,259) (14,734,677) (1,798,452) Loan activity, net (869,112) (521,732) (32,709) (792,238) Transfers from (to) other funds 6,244,149 3,136,952 (3,819,711) (2,747,575) ------------------- ----------------- ------------------- --------------------- Net increase (decrease) 38,833,325 18,199,036 141,491,723 (1,645,733) ------------------- ----------------- ------------------- --------------------- Net assets available for plan benefits: Beginning of year 79,815,153 46,138,594 211,583,616 18,442,338 Transfers from (to) other plans (note 1) - - - - ------------------- ----------------- ------------------- --------------------- End of year $ 118,648,478 64,337,630 353,075,339 16,796,605 =================== ================= =================== ===================== December 31, 1997 -------------------------------------------------------------------------------------- American TAP Guarantee Universal Odyssey Common Stock Annuity Life Core Fund Contracts Insurance Equity Fund -------------------- ------------------- ------------------- ------------------ Assets Investments (notes 2 and 3) 66,506,184 8,988,512 55,493 11,102,905 Cash 36,455 - - - Receivables: Contributions 3,675 - - - Dividends and other - - - - -------------------- ------------------- ------------------- ------------------ Total receivables 3,675 - - - -------------------- ------------------- ------------------- ------------------ Total assets 66,546,314 8,988,512 55,493 11,102,905 -------------------- ------------------- ------------------- ------------------ Liabilities Forfeiture credits due to employer - - - - ESOP note payable - - - - Payable for investment purchases 2,723,606 - - - -------------------- ------------------- ------------------- ------------------ Total liabilities 2,723,606 - - - Receivable from (payable to) other funds - - - - -------------------- ------------------- ------------------- ------------------ Net assets available for plan benefits 63,822,708 8,988,512 55,493 11,102,905 ==================== =================== =================== ================== Investment activity: Dividends 528,964 - - 2,537,288 Interest - 216,768 2,613 - Appreciation (depreciation) in fair value of investments 14,185,634 - (5,619) - -------------------- ------------------- ------------------- ------------------ 14,714,598 216,768 (3,006) 2,537,288 Less: Trustee/administrative expenses - - - (1,149) -------------------- ------------------- ------------------- ------------------ Net investment income (loss) 14,714,598 216,768 (3,006) 2,536,139 -------------------- ------------------- ------------------- ------------------ Contributions: Participant 817,896 385,295 23,099 1,168,022 Employer - - - - -------------------- ------------------- ------------------- ------------------ Total contributions 817,896 385,295 23,099 1,168,022 -------------------- ------------------- ------------------- ------------------ Distributions to participants (2,335,777) (775,774) (6,620) (569,211) Loan activity, net (1,163,693) (10,480) - (40,816) Transfers from (to) other funds (15,665,597) (738,399) - 136,059 -------------------- ------------------- ------------------- ------------------ Net increase (decrease) (3,632,573) (922,590) 13,473 3,230,193 -------------------- ------------------- ------------------- ------------------ Net assets available for plan benefits: Beginning of year 67,455,281 9,911,102 42,020 7,872,712 Transfers from (to) other plans (note 1) - - - - -------------------- ------------------- ------------------- ------------------ End of year 63,822,708 8,988,512 55,493 11,102,905 ==================== =================== =================== ================== December 31, 1997 --------------------------------------------------------------------------------------- American American Odyssey Odyssey American American Emerging International Odyssey Odyssey Opportunities Equity Long-Term Intermediate-Term Fund Fund Bond Fund Bond Fund ------------------ -------------------- -------------------- --------------------- Assets Investments (notes 2 and 3) 6,148,638 5,144,165 1,016,543 637,343 Cash - - - - Receivables: Contributions - - - - Dividends and other - - - - ------------------ -------------------- -------------------- --------------------- Total receivables - - - - ------------------ -------------------- -------------------- --------------------- Total assets 6,148,638 5,144,165 1,016,543 637,343 ------------------ -------------------- -------------------- --------------------- Liabilities Forfeiture credits due to employer - - - - ESOP note payable - - - - Payable for investment purchases - - - - ------------------ -------------------- -------------------- --------------------- Total liabilities - - - - Receivable from (payable to) other funds - - - - ------------------ -------------------- -------------------- --------------------- Net assets available for plan benefits 6,148,638 5,144,165 1,016,543 637,343 ================== ==================== ==================== ===================== Investment activity: Dividends 373,931 264,114 - - Interest - - 91,872 39,169 Appreciation (depreciation) in fair value of investments - - - - ------------------ -------------------- -------------------- --------------------- 373,931 264,114 91,872 39,169 Less: Trustee/administrative expenses (675) - - - ------------------ -------------------- -------------------- --------------------- Net investment income (loss) 373,256 264,114 91,872 39,169 ------------------ -------------------- -------------------- --------------------- Contributions: Participant 953,574 667,567 114,974 55,183 Employer - - - - ------------------ -------------------- -------------------- --------------------- Total contributions 953,574 667,567 114,974 55,183 ------------------ -------------------- -------------------- --------------------- Distributions to participants (400,648) (316,378) (64,260) (24,580) Loan activity, net (16,666) (9,654) (6,047) (593) Transfers from (to) other funds (382,469) 58,640 (201,948) (57,605) ------------------ -------------------- -------------------- --------------------- Net increase (decrease) 527,047 664,289 (65,409) 11,574 ------------------ -------------------- -------------------- --------------------- Net assets available for plan benefits: Beginning of year 5,621,591 4,479,876 1,081,952 625,769 Transfers from (to) other plans (note 1) - - - - ------------------ -------------------- -------------------- --------------------- End of year 6,148,638 5,144,165 1,016,543 637,343 ================== ==================== ==================== =====================
F-36 Travelers Group 401(k) Savings Plan Notes to Financial Statements
December 31, 1997 -------------------------------------------------------------------------- American Salomon American Odyssey Salomon Brothers Odyssey In - Time Investment Institutional Short-Term Investing Contract Money Bond Fund Fund Fund Market Fund ---------------- -------------- ----------------- ------------------ Assets Investments (notes 2 and 3) $ 111,499 1,082,064 73,808,224 68,906,636 Cash - - - (1,046,623) Receivables: Contributions - - 1,343,728 1,794,197 Dividends and other - - 476,471 955,018 ---------------- -------------- ----------------- ------------------ Total receivables - - 1,820,199 2,749,215 ---------------- -------------- ----------------- ------------------ Total assets 111,499 1,082,064 75,628,423 70,609,228 ---------------- -------------- ----------------- ------------------ Liabilities Forfeiture credits due to employer - - - - ESOP note payable - - - - Payable for investment purchases - - - - ---------------- -------------- ----------------- ------------------ Total liabilities - - - - Receivable from (payable to) other funds - - 1,040,764 1,112,448 ---------------- -------------- ----------------- ------------------ Net assets available for plan benefits $ 111,499 1,082,064 76,669,187 71,721,676 ================ ============== ================= ================== Investment activity: Dividends $ - - - 334,124 Interest 24,365 198,495 411,095 260 Appreciation (depreciation) in fair value of investments - - (298) (406) ---------------- -------------- ----------------- ------------------ 24,365 198,495 410,797 333,978 Less: Trustee/administrative expenses - - (6,180) (3) ---------------- -------------- ----------------- ------------------ Net investment income (loss) 24,365 198,495 404,617 333,975 ---------------- -------------- ----------------- ------------------ Contributions: Participant 15,880 98,128 318,484 909,458 Employer - - - - ---------------- -------------- ----------------- ------------------ Total contributions 15,880 98,128 318,484 909,458 ---------------- -------------- ----------------- ------------------ Distributions to participants (33,643) (15,890) (194,123) (1,598,123) Loan activity, net (1,140) (7,522) 22,518 8,826 Transfers from (to) other funds (240,876) 116,005 305,876 (1,052,723) ---------------- -------------- ----------------- ------------------ Net increase (decrease) (235,414) 389,216 857,372 (1,375,587) ---------------- -------------- ----------------- ------------------ Net assets available for plan benefits: Beginning of year 346,913 692,848 - - Transfers from (to) other plans (note 1) - - 75,811,815 73,120,263 ---------------- -------------- ----------------- ------------------ End of year $ 111,499 1,082,064 76,669,187 71,721,676 ================ ============== ================= ================== December 31, 1997 -------------------------------------------------------------------------------------- Fisher Francis Salomon Bankers Trust Intermediate Brothers Index Europacific Bond Capital Equity Growth Fund Fund Fund Fund ------------------- ------------------- ------------------- -------------------- Assets Investments (notes 2 and 3) 43,101,392 96,571,938 137,211,432 69,993,825 Cash 6,944,723 - 1,102 9,670 Receivables: Contributions 1,019,050 2,355,338 3,183,060 2,124,117 Dividends and other 727,835 809,186 1,112,451 650,120 ------------------- ------------------- ------------------- -------------------- Total receivables 1,746,885 3,164,524 4,295,511 2,774,237 ------------------- ------------------- ------------------- -------------------- Total assets 51,793,000 99,736,462 141,508,045 72,777,732 ------------------- ------------------- ------------------- -------------------- Liabilities Forfeiture credits due to employer - - - - ESOP note payable - - - - Payable for investment purchases - - 575,922 - ------------------- ------------------- ------------------- -------------------- Total liabilities - - 575,922 - Receivable from (payable to) other funds 765,147 1,839,217 2,462,465 1,591,250 ------------------- ------------------- ------------------- -------------------- Net assets available for plan benefits 52,558,147 101,575,679 143,394,588 74,368,982 =================== =================== =================== ==================== Investment activity: Dividends - - - 3,675,375 Interest 291,741 461 649 197 Appreciation (depreciation) in fair value of investments 119,281 738,253 2,319,536 (2,824,433) ------------------- ------------------- ------------------- -------------------- 411,022 738,714 2,320,185 851,139 Less: Trustee/administrative expenses (12,733) (12) (7,049) (9) ------------------- ------------------- ------------------- -------------------- Net investment income (loss) 398,289 738,702 2,313,136 851,130 ------------------- ------------------- ------------------- -------------------- Contributions: Participant 246,880 632,347 969,669 645,602 Employer - - - - ------------------- ------------------- ------------------- -------------------- Total contributions 246,880 632,347 969,669 645,602 ------------------- ------------------- ------------------- -------------------- Distributions to participants (65,456) (247,491) (301,246) (103,284) Loan activity, net 3,563 26,981 27,158 22,853 Transfers from (to) other funds 322,582 62,765 1,079,597 (1,429,790) ------------------- ------------------- ------------------- -------------------- Net increase (decrease) 905,858 1,213,304 4,088,314 (13,489) ------------------- ------------------- ------------------- -------------------- Net assets available for plan benefits: Beginning of year - - - - Transfers from (to) other plans (note 1) 51,652,289 100,362,375 139,306,274 74,382,471 ------------------- ------------------- ------------------- -------------------- End of year 52,558,147 101,575,679 143,394,588 74,368,982 =================== =================== =================== ==================== December 31, 1997 ----------------------------------------------------- BGI SBAM Tactical Asset Broad Market Allocation Fixed Income Fund Fund ------------------------ ------------------------- Assets Investments (notes 2 and 3) 13,885,715 3,935,125 Cash 91 683,926 Receivables: Contributions 493,637 219,811 Dividends and other 642,087 279,135 ------------------------ ------------------------- Total receivables 1,135,724 498,946 ------------------------ ------------------------- Total assets 15,021,530 5,117,997 ------------------------ ------------------------- Liabilities Forfeiture credits due to employer - - ESOP note payable - - Payable for investment purchases - - ------------------------ ------------------------- Total liabilities - - Receivable from (payable to) other funds 373,062 163,253 ------------------------ ------------------------- Net assets available for plan benefits 15,394,592 5,281,250 ======================== ========================= Investment activity: Dividends 70 25,491 Interest - - Appreciation (depreciation) in fair value of investments 256,148 11,422 ------------------------ ------------------------- 256,218 36,913 Less: Trustee/administrative expenses (2) (98) ------------------------ ------------------------- Net investment income (loss) 256,216 36,815 ------------------------ ------------------------- Contributions: Participant 168,919 71,190 Employer - - ------------------------ ------------------------- Total contributions 168,919 71,190 ------------------------ ------------------------- Distributions to participants (35,894) (24,833) Loan activity, net 5,639 1,518 Transfers from (to) other funds 634,968 221,369 ------------------------ ------------------------- Net increase (decrease) 1,029,848 306,059 ------------------------ ------------------------- Net assets available for plan benefits: Beginning of year - - Transfers from (to) other plans (note 1) 14,364,744 4,975,191 ------------------------ ------------------------- End of year 15,394,592 5,281,250 ======================== =========================
F-37 Travelers Group 401(k) Savings Plan Notes to Financial Statements
December 31, 1997 ------------------------------------------------------------------- Putnam OTC & Templeton Fidelity Emerging Developing Blue Chip Growth Markets Growth Fund Trust Fund ------------------- --------------------- --------------------- Assets Investments (notes 2 and 3) $ 36,305,689 20,370,381 10,573,734 Cash 172 (7,680) - Receivables: Contributions 1,748,077 1,059,869 582,856 Dividends and other 98,520 226,621 92,478 ------------------- --------------------- --------------------- Total receivables 1,846,597 1,286,490 675,334 ------------------- --------------------- --------------------- Total assets 38,152,458 21,649,191 11,249,068 ------------------- --------------------- --------------------- Liabilities Forfeiture credits due to employer - - - ESOP note payable - - - Payable for investment purchases - - - ------------------- --------------------- --------------------- Total liabilities - - - Receivable from (payable to) other funds 1,342,870 852,966 507,741 ------------------- --------------------- --------------------- Net assets available for plan benefits $ 39,495,328 22,502,157 11,756,809 =================== ===================== ===================== Investment activity: Dividends $ 129 1,362,059 177,765 Interest - 263 - Appreciation (depreciation) in fair value of investments 679,033 (1,532,538) (39,049) ------------------- --------------------- --------------------- 679,162 (170,216) 138,716 Less: Trustee/administrative expenses (3) (7) - ------------------- --------------------- --------------------- Net investment income (loss) 679,159 (170,223) 138,716 ------------------- --------------------- --------------------- Contributions: Participant 647,544 382,314 325,503 Employer - - - ------------------- --------------------- --------------------- Total contributions 647,544 382,314 325,503 ------------------- --------------------- --------------------- Distributions to participants (68,288) (73,485) (7,187) Loan activity, net 37,028 8,196 748 Transfers from (to) other funds (508,344) (606,839) 382,709 ------------------- --------------------- --------------------- Net increase (decrease) 787,099 (460,037) 840,489 ------------------- --------------------- --------------------- Net assets available for plan benefits: Beginning of year - - - Transfers from (to) other plans (note 1) 38,708,229 22,962,194 10,916,320 ------------------- --------------------- --------------------- End of year $ 39,495,328 22,502,157 11,756,809 =================== ===================== ===================== December 31, 1997 ----------------------------------------------------------------- Salomon Brothers High Yield Bond Loan Fund Fund Total --------------------- ------------------- -------------------- Assets Investments (notes 2 and 3) 10,455,154 86,936,264 4,674,578,303 Cash 97 - 18,360,722 Receivables: Contributions 438,012 - 17,193,699 Dividends and other 68,533 - 11,556,287 --------------------- ------------------- -------------------- Total receivables 506,545 - 28,749,986 --------------------- ------------------- -------------------- Total assets 10,961,796 86,936,264 4,721,689,011 --------------------- ------------------- -------------------- Liabilities Forfeiture credits due to employer - - - ESOP note payable - - 17,450,000 Payable for investment purchases - - 6,818,531 --------------------- ------------------- -------------------- Total liabilities - - 24,268,531 Receivable from (payable to) other funds 316,631 - - --------------------- ------------------- -------------------- Net assets available for plan benefits 11,278,427 86,936,264 4,697,420,480 ===================== =================== ==================== Investment activity: Dividends 168,603 - 114,793,555 Interest 22 - 44,500,303 Appreciation (depreciation) in fair value of investments (52,154) - 1,014,454,681 --------------------- ------------------- -------------------- 116,471 - 1,173,748,539 Less: Trustee/administrative expenses (1) - (1,830,683) --------------------- ------------------- -------------------- Net investment income (loss) 116,470 - 1,171,917,856 --------------------- ------------------- -------------------- Contributions: Participant 184,897 4,408,129 226,379,513 Employer - - 96,750 --------------------- ------------------- -------------------- Total contributions 184,897 4,408,129 226,476,263 --------------------- ------------------- -------------------- Distributions to participants (9,179) (2,976,030) (217,969,324) Loan activity, net 18,367 14,766,842 - Transfers from (to) other funds 329,157 - - --------------------- ------------------- -------------------- Net increase (decrease) 639,712 16,198,941 1,180,424,795 --------------------- ------------------- -------------------- Net assets available for plan benefits: Beginning of year - 66,269,195 2,859,499,288 Transfers from (to) other plans (note 1) 10,638,715 4,468,128 657,496,397 --------------------- ------------------- -------------------- End of year 11,278,427 86,936,264 4,697,420,480 ===================== =================== ====================
F-38 Travelers Group 401(k) Savings Plan Notes to Financial Statements 7. Investment Allocation (Continued)
December 31, 1996 ---------------------------------------------------------------------------------------- Van Kampen Van Kampen Van Kampen Van Kampen Travelers American Capital American Capital American Capital American Capital Common Stock Emerging Government Comstock Reserve Fund Growth Fund Securities Fund Fund Fund -------------- --------------- ---------------- ---------------- ---------------- Assets Investments (notes 2 and 3) $ 871,309,221 115,878,893 4,800,137 11,538,961 11,293,897 Cash 1,363,307 683 31 89 72 Receivables: Contributions 17,548,498 18,780 115 3,947 327 Dividends and other 739,684 183 2 18 8 ------------- ------------ ---------- ----------- ----------- Total receivables 18,288,182 18,963 117 3,965 335 ------------- ------------ ---------- ----------- ----------- Total assets 890,960,710 115,898,539 4,800,285 11,543,015 11,294,304 ------------- ------------ ---------- ----------- ----------- Liabilities Forfeiture credits due to employer -- -- -- -- -- ESOP note payable -- -- -- -- -- Payable for investment purchases 2,312,421 -- -- -- -- ------------- ------------ ---------- ----------- ----------- Net assets available for plan benefits $ 888,648,289 115,898,539 4,800,285 11,543,015 11,294,304 ============= ============ ========== =========== =========== Investment activity: Dividends 8,458,995 5,006,897 330,011 1,917,568 502,322 Interest 35,216 2,444 192 291 473 Appreciation (depreciation) in fair value of investments 267,605,848 11,694,267 (222,974) 219,289 -- ------------- ------------ ---------- ----------- ----------- 276,100,059 16,703,608 107,229 2,137,148 502,795 Less: Trustee/administrative expenses (451,621) (111,678) (11,359) (20,574) (22,771) ------------- ------------ ---------- ----------- ----------- Net investment income (loss) 275,648,438 16,591,930 95,870 2,116,574 480,024 ------------- ------------ ---------- ----------- ----------- Contributions: Participant 36,167,440 18,619,707 567,269 986,703 665,005 Employer 18,690,492 -- -- -- -- ------------- ------------ ---------- ----------- ----------- Total contributions 54,857,932 18,619,707 567,269 986,703 665,005 ------------- ------------ ---------- ----------- ----------- Distributions to participants (48,266,088) (7,591,396) (416,287) (669,842) (849,439) Loan activity, net (1,051,775) (454,588) (20,998) (40,783) (89,005) Transfers from (to) other funds 23,516,525 3,367,062 (586,618) (396,158) (375,565) ------------- ------------ ---------- ----------- ----------- Net increase (decrease) 304,705,032 30,532,715 (360,764) 1,996,494 (168,980) ------------- ------------ ---------- ----------- ----------- Net assets available for plan benefits: Beginning of year 326,637,197 85,365,824 5,161,049 9,546,521 11,463,284 Transfers from (to) other plans (note 1) 257,306,060 -- -- -- -- ------------- ------------ ---------- ----------- ----------- End of year $ 888,648,289 115,898,539 4,800,285 11,543,015 11,294,304 ============= ============ ========== =========== =========== December 31, 1996 ------------------------------------------------------------------------- Common Common Common Common Smith Barney Sense Sense Sense Sense U.S. Government Growth Growth & Income Government Money Market Securities Fund Fund Fund Fund Fund ----------- --------------- ---------- ------------ --------------- Assets Investments (notes 2 and 3) 4,094,073 3,460,659 848,658 2,424,328 19,514,448 Cash 41 827 15 102 28,106 Receivables: Contributions (675) -- (290) (45) (354) Dividends and other 1 1 -- 1 546,928 ---------- ---------- -------- ---------- ----------- Total receivables (674) 1 (290) (44) 546,574 ---------- ---------- -------- ---------- ----------- Total assets 4,093,440 3,461,487 848,383 2,424,386 20,089,128 ---------- ---------- -------- ---------- ----------- Liabilities Forfeiture credits due to employer -- -- -- -- -- ESOP note payable -- -- -- -- -- Payable for investment purchases -- -- -- -- -- ---------- ---------- -------- ---------- ----------- Net assets available for plan benefits 4,093,440 3,461,487 848,383 2,424,386 20,089,128 ========== ========== ======== ========== =========== Investment activity: Dividends -- 41,430 60,340 111,424 1,415,811 Interest 218 124 51 222 426 Appreciation (depreciation) in fair value of investments 374,253 95,040 (43,309) -- (529,098) ---------- ---------- -------- ---------- ----------- 374,471 136,594 17,082 111,646 887,139 Less: Trustee/administrative expenses (10,077) (8,952) (4,450) (7,341) (24,540) ---------- ---------- -------- ---------- ----------- Net investment income (loss) 364,394 127,642 12,632 104,305 862,599 ---------- ---------- -------- ---------- ----------- Contributions: Participant 395,981 334,083 74,960 121,362 1,877,256 Employer -- -- -- -- -- ---------- ---------- -------- ---------- ----------- Total contributions 395,981 334,083 74,960 121,362 1,877,256 ---------- ---------- -------- ---------- ----------- Distributions to participants (381,487) (161,536) (64,444) (172,303) (2,019,429) Loan activity, net (61,552) (52,313) (7,935) (10,274) (38,951) Transfers from (to) other funds (152,162) (26,275) (49,971) (352,029) (1,518,873) ---------- ---------- -------- ---------- ----------- Net increase (decrease) 165,174 221,601 (34,758) (308,939) (837,398) ---------- ---------- -------- ---------- ----------- Net assets available for plan benefits: Beginning of year 3,928,266 3,239,886 883,141 2,733,325 20,926,526 Transfers from (to) other plans (note 1) -- -- -- -- -- ---------- ---------- -------- ---------- ----------- End of year 4,093,440 3,461,487 848,383 2,424,386 20,089,128 ========== ========== ======== ========== ===========
F-39 Travelers Group 401(k) Savings Plan Notes to Financial Statements 7. Investment Allocation (Continued)
December 31, 1996 ----------------------------------------------------------------------------------- Smith Barney Van Kampen American Smith Barney Income American Capital Express Smith Barney Aggressive Smith Barney Return Enterprise Common Money Growth Appreciation Fund Fund Stock Fund Fund Fund Fund ------------ ---------------- ----------- ------------ ------------ -------------- Assets Investments (notes 2 and 3) -- 40,325,261 92,516,434 36,960,963 33,026,655 153,001,216 Cash 500 781 6,046 782 807 -- Receivables: Contributions -- 20,322 -- 97,306 2,617 38,019 Dividends and other 3,604,057 82 2,044,659 84 56 628,000 ---------- ----------- ----------- ----------- ----------- ------------ Total receivables 3,604,057 20,404 2,044,659 97,390 2,673 666,019 ---------- ----------- ----------- ----------- ----------- ------------ Total assets 3,604,557 40,346,446 94,567,139 37,059,135 33,030,135 153,667,235 Liabilities ---------- ----------- ----------- ----------- ----------- ------------ Forfeiture credits due to employer -- -- -- -- -- -- ESOP note payable -- -- -- -- -- -- Payable for investment purchases -- -- -- -- -- -- ---------- ----------- ----------- ----------- ----------- ------------ Net assets available for plan benefits 3,604,557 40,346,446 94,567,139 37,059,135 33,030,135 153,667,235 ========== =========== =========== =========== =========== ============ Investment activity: Dividends 271,346 2,437,673 2,173,442 1,696,780 844,945 15,083,390 Interest 113 700 2,358 1,172 715 2,676 Appreciation (depreciation) in fair value of investments (64,620) 4,670,407 27,221,156 -- 141,351 10,769,409 ---------- ----------- ----------- ----------- ----------- ------------ Less: Trustee/administrative expenses 206,839 7,108,780 29,396,956 1,697,952 987,011 25,855,475 (9,516) (35,622) (105,795) (37,035) (35,809) (133,592) ---------- ----------- ----------- ----------- ----------- ------------ Net investment income (loss) 197,323 7,073,158 29,291,161 1,660,917 951,202 25,721,883 ---------- ----------- ----------- ----------- ----------- ------------ Contributions: Participant -- 5,593,630 -- 4,083,746 4,094,778 14,193,571 Employer -- -- -- -- -- -- ---------- ----------- ----------- ----------- ----------- ------------ Total contributions -- 5,593,630 -- 4,083,746 4,094,778 14,193,571 ---------- ----------- ----------- ----------- ----------- ------------ Distributions to participants (207,379) (2,503,146) (6,916,999) (3,577,926) (2,347,107) (9,179,803) Loan activity, net (23,333) 15,127 (713,583) (145,104) (306,909) (1,030,387) Transfers from (to) other funds (2,131,687) 2,516,439 (14,590,016) 3,653,749 (2,484,570) (7,298,885) ---------- ----------- ----------- ----------- ----------- ------------ Net increase (decrease) (2,165,076) 12,695,208 7,070,563 5,675,382 (92,606) 22,406,379 ---------- ----------- ----------- ----------- ----------- ------------ Net assets available for plan benefits: Beginning of year 5,769,633 27,651,238 87,496,576 31,383,753 33,122,741 131,260,856 Transfers from (to) other plans (note 1) -- -- -- -- -- -- ---------- ----------- ----------- ----------- ----------- ------------ End of year 3,604,557 40,346,446 94,567,139 37,059,135 33,030,135 153,667,235 ========== =========== =========== =========== =========== ============ December 31, 1996 ---------------------------------------------------------- Smith Barney Smith Barney International Diversified Smith Barney Equity Strategic High Smith Barney Fund Income Fund Income Fund Utilities Fund -------------- ------------ ------------ --------------- Assets Investments (notes 2 and 3) 123,570,164 17,442,154 -- 13,271,144 Cash 120,492 846 682 30,120 Receivables: Contributions 17,537 277 -- 690 Dividends and other 54,598 25 4,598,892 406,322 ------------ ----------- ---------- ----------- Total receivables 72,135 302 4,598,892 407,012 ------------ ----------- ---------- ----------- Total assets 123,762,791 17,443,302 4,599,574 13,708,276 ------------ ----------- ---------- ----------- Liabilities Forfeiture credits due to employer -- -- -- -- ESOP note payable -- -- -- -- Payable for investment purchases -- -- -- -- ------------ ----------- ---------- ----------- Net assets available for plan benefits 123,762,791 17,443,302 4,599,574 13,708,276 ============ =========== ========== =========== Investment activity: Dividends 391,248 1,392,575 748,818 1,126,628 Interest 2,001 435 214 410 Appreciation (depreciation) in fair value of investments 14,211,070 279,985 133,944 (781,740) ------------ ----------- ---------- ----------- Less: Trustee/administrative expenses 14,604,319 1,672,995 882,976 345,298 (108,933) (19,984) (11,894) (18,744) ------------ ----------- ---------- ----------- Net investment income (loss) 14,495,386 1,653,011 871,082 326,554 ------------ ----------- ---------- ----------- Contributions: Participant 18,520,479 2,590,957 -- 2,186,049 Employer -- -- -- -- ------------ ----------- ---------- ----------- Total contributions 18,520,479 2,590,957 -- 2,186,049 ------------ ----------- ---------- ----------- Distributions to participants (7,551,649) (1,407,760) (536,801) (952,954) Loan activity, net (322,629) (25,131) (129,240) (124,350) Transfers from (to) other funds 3,851,104 341,746 (4,277,315) (2,577,182) ------------ ----------- ---------- ----------- Net increase (decrease) 28,992,691 3,152,823 (4,072,274) (1,141,883) ------------ ----------- ---------- ----------- Net assets available for plan benefits: Beginning of year 94,770,100 14,290,479 8,671,848 14,850,159 Transfers from (to) other plans (note 1) -- -- -- -- ------------ ----------- ---------- ----------- End of year 123,762,791 17,443,302 4,599,574 13,708,276 ============ =========== ========== =========== December 31, 1996 -------------------------------------------- Smith Barney Smith Barney Smith Barney Guaranteed Equity Special Income Income Equities Fund Fund Fund -------------- -------------- ------------ Assets Investments (notes 2 and 3) 146,832,175 113,137,894 12,672,596 Cash 160,998 108,145 770 Receivables: Contributions 8 21,814 16,568 Dividends and other 1,476 333,308 43 ------------ ------------ ----------- Total receivables 1,484 355,122 16,611 ------------ ------------ ----------- Total assets 146,994,657 113,601,161 12,689,977 Liabilities ------------ ------------ ----------- Forfeiture credits due to employer -- -- -- ESOP note payable -- -- -- Payable for investment purchases -- -- -- ------------ ------------ ----------- Net assets available for plan benefits 146,994,657 113,601,161 12,689,977 ============ ============ =========== Investment activity: Dividends -- 15,059,620 273,518 Interest 10,277,198 2,043 283 Appreciation (depreciation) in fair value of investments -- 1,378,843 (1,256,214) ------------ ------------ ----------- Less: Trustee/administrative expenses 10,277,198 16,440,506 (982,413) (528,595) (102,036) (14,778) ------------ ------------ ----------- Net investment income (loss) 9,748,603 16,338,470 (997,191) ------------ ------------ ----------- Contributions: Participant 10,191,617 8,546,997 3,206,465 Employer -- -- -- ------------ ------------ ----------- Total contributions 10,191,617 8,546,997 3,206,465 ------------ ------------ ----------- Distributions to participants (8,386,682) (6,873,477) (497,096) Loan activity, net (838,047) (280,788) 60,728 Transfers from (to) other funds (6,599,307) (2,789,934) 5,541,901 ------------ ------------ ----------- Net increase (decrease) 4,116,184 14,941,268 7,314,807 ------------ ------------ ----------- Net assets available for plan benefits: Beginning of year 142,878,473 98,659,893 5,375,170 Transfers from (to) other plans (note 1) -- -- -- ------------ ------------ ----------- End of year 146,994,657 113,601,161 12,689,977 ============ ============ ===========
F-40 Travelers Group 401(k) Savings Plan Notes to Financial Statements 7. Investment Allocation (Continued)
December 31, 1996 ---------------------------------------------------------------------------------------- Smith Barney Deferred Managed Profit TESIP Fixed S & P 500 Russell Growth Sharing Fixed IRA Flagship 2000 ESOP Fund Plan Fund Fund Fund Fund Fund ------------ --------- ----------- ----------- ----------- ----------- ------------ Assets Investments (notes 2 and 3) 22,293,836 69,738 396,851,788 61,959,660 79,731,555 46,096,698 251,168,817 Cash 757 -- -- -- 598 182 7,579,000 Receivables: Contributions 3,502 -- (176,285) -- 90,849 46,108 -- Dividends and other 34 -- -- -- -- -- 47,347 ----------- ------ ------------ ----------- ----------- ----------- ------------ Total receivables 3,536 -- (176,285) -- 90,849 46,108 47,347 ----------- ------ ------------ ----------- ----------- ----------- ------------ Total assets 22,298,129 69,738 396,675,503 61,959,660 79,823,002 46,142,988 258,795,164 ----------- ------ ------------ ----------- ----------- ----------- ------------ Liabilities Forfeiture credits due to employer -- -- -- -- -- -- 12,800,143 ESOP note payable -- -- -- -- -- -- 34,900,000 Payable for investment purchases -- -- 58,343 -- 7,849 4,394 150,414 ----------- ------ ------------ ----------- ----------- ----------- ------------ Net assets available for plan benefits 22,298,129 69,738 396,617,160 61,959,660 79,815,153 46,138,594 210,944,607 =========== ====== ============ =========== =========== =========== ============ Investment activity: Dividends 934,257 3,309 -- -- -- -- 17,593,491 Interest 389 -- 27,351,646 4,233,052 -- -- (1,986,212) Appreciation (depreciation) in fair value of investments 1,755,064 -- -- -- 14,224,959 6,410,241 40,252,473 ----------- ------ ------------ ----------- ----------- ----------- ------------ 2,689,710 3,309 27,351,646 4,233,052 14,224,959 6,410,241 55,859,752 Less: Trustee/administrative expenses (20,052) -- -- -- -- -- -- ----------- ------ ------------ ----------- ----------- ----------- ------------ Net investment income (loss) 2,669,658 3,309 27,351,646 4,233,052 14,224,959 6,410,241 55,859,752 ----------- ------ ------------ ----------- ----------- ----------- ------------ Contributions: Participant 3,262,947 -- 4,777,710 -- 12,187,814 6,457,449 -- Employer -- -- -- -- -- -- 13,275,941 ----------- ------ ------------ ----------- ----------- ----------- ------------ Total contributions 3,262,947 -- 4,777,710 -- 12,187,814 6,457,449 13,275,941 ----------- ------ ------------ ----------- ----------- ----------- ------------ Distributions to participants (650,751) -- (42,571,721) (7,722,814) (5,441,036) (2,617,212) (14,637,596) Loan activity, net 90,261 -- (358,809) -- -- -- -- Transfers from (to) other funds 6,876,484 -- (908,960) -- (756,492) (133,326) 398,179 ----------- ------ ------------ ----------- ----------- ----------- ------------ Net increase (decrease) 12,248,599 3,309 (11,710,134) (3,489,762) 20,215,245 10,117,152 54,896,276 ----------- ------ ------------ ----------- ----------- ----------- ------------ Net assets available for plan benefits: Beginning of year 10,049,530 66,429 -- -- -- -- -- Transfers from (to) other plans (note 1) -- -- 408,327,294 65,449,422 59,599,908 36,021,442 156,048,331 ----------- ------ ------------ ----------- ----------- ----------- ------------ End of year 22,298,129 69,738 396,617,160 61,959,660 79,815,153 46,138,594 210,944,607 =========== ====== ============ =========== =========== =========== ============ December 31, 1996 --------------------------------------------------------------------------- Term American American TAP Interest Universal Odyssey Odyssey Stable Common Stock Guarantee Life Core Emerging Fund Fund Contracts Insurance Equity Fund Fund ----------- ------------ ----------- --------- ----------- ---------- Assets Investments (notes 2 and 3) 18,263,998 67,457,543 9,842,206 42,020 7,370,760 5,117,401 Cash -- 1,176 -- -- -- -- Receivables: Contributions 178,394 -- 68,896 -- 66,816 74,740 Dividends and other -- -- -- -- 435,136 429,450 ----------- ----------- ---------- ------- ---------- ---------- Total receivables 178,394 -- 68,896 -- 501,952 504,190 ----------- ----------- ---------- ------- ---------- ---------- Total assets 18,442,392 67,458,719 9,911,102 42,020 7,872,712 5,621,591 ----------- ----------- ---------- ------- ---------- ---------- Liabilities Forfeiture credits due to employer -- -- -- -- -- -- ESOP note payable -- -- -- -- -- -- Payable for investment purchases 54 3,438 -- -- -- -- ----------- ----------- ---------- ------- ---------- ---------- Net assets available for plan benefits 18,442,338 67,455,281 9,911,102 42,020 7,872,712 5,621,591 =========== =========== ========== ======= ========== ========== Investment activity: Dividends -- 286,379 -- -- 437,418 429,450 Interest 782,766 -- 807,669 2,203 -- -- Appreciation (depreciation) in fair value of investments -- 22,107,866 -- 3,971 1,021,827 (536,264) ----------- ----------- ---------- ------- ---------- ---------- 782,766 22,394,245 807,669 6,174 1,459,245 (106,814) Less: Trustee/administrative expenses -- -- -- -- (7,832) (6,702) ----------- ----------- ---------- ------- ---------- ---------- Net investment income (loss) 782,766 22,394,245 807,669 6,174 1,451,413 (113,516) ----------- ----------- ---------- ------- ---------- ---------- Contributions: Participant 18,558,938 45,597,083 404,797 25,228 908,249 938,324 Employer -- -- -- -- -- -- ----------- ----------- ---------- ------- ---------- ---------- Total contributions 18,558,938 45,597,083 404,797 25,228 908,249 938,324 ----------- ----------- ---------- ------- ---------- ---------- Distributions to participants (417,988) (536,047) (1,068,651) (6,468) (476,213) (287,898) Loan activity, net (793,061) -- 28,279 -- -- -- Transfers from (to) other funds 311,683 -- 175,894 -- 90,225 (132,028) ----------- ----------- ---------- ------- ---------- ---------- Net increase (decrease) 18,442,338 67,455,281 347,988 24,934 1,973,674 404,882 ----------- ----------- ---------- ------- ---------- ---------- Net assets available for plan benefits: Beginning of year -- -- -- -- -- -- Transfers from (to) other plans (note 1) -- -- 9,563,114 17,086 5,899,038 5,216,709 ----------- ----------- ---------- ------- ---------- ---------- End of year 18,442,338 67,455,281 9,911,102 42,020 7,872,712 5,621,591 =========== =========== ========== ======= ========== ==========
F-41 Travelers Group 401(k) Savings Plan Notes to Financial Statements 7. Investment Allocation (Continued)
December 31, 1996 ----------------------------------------------------------------------------------- In-Time Investing ---------------------- American American American American American American Odyssey Odyssey Odyssey Odyssey Odyssey Odyssey International Long-Term Intermediate-Term Short-Term Core Equity Short-Term Fund Bond Fund Bond Fund Bond Fund Fund Bond Fund ------------- ----------- ----------------- ----------- ----------- ---------- Assets Investments (notes 2 and 3) 4,328,109 1,020,989 588,449 333,958 522,823 130,850 Cash -- -- -- -- -- -- Receivables: Contributions 43,956 8,949 3,361 968 3,613 -- Dividends and other 107,811 52,014 33,959 11,987 30,865 4,697 ---------- ---------- -------- -------- -------- -------- Total receivables 151,767 60,963 37,320 12,955 34,478 4,697 ---------- ---------- -------- -------- -------- -------- Total assets 4,479,876 1,081,952 625,769 346,913 557,301 135,547 ---------- ---------- -------- -------- -------- -------- Liabilities Forfeiture credits due to employer -- -- -- -- -- -- ESOP note payable -- -- -- -- -- -- Payable for investment purchases -- -- -- -- -- -- ---------- ---------- -------- -------- -------- -------- Net assets available for plan benefits 4,479,876 1,081,952 625,769 346,913 557,301 135,547 ========== ========== ======== ======== ======== ======== Investment activity: Dividends 107,811 52,014 33,959 11,987 30,865 4,697 Interest -- -- -- -- -- -- Appreciation (depreciation) in fair value of investments 942,576 (64,273) (481) 20,326 206,455 (396,639) ---------- ---------- -------- -------- -------- -------- 1,050,387 (12,259) 33,478 32,313 237,320 (391,942) (4,457) (1,218) (705) (335) (540) (186) Less: Trustee/administrative expenses ---------- ---------- -------- -------- -------- -------- 1,045,930 (13,477) 32,773 31,978 236,780 (392,128) Net investment income (loss) ---------- ---------- -------- -------- -------- -------- Contributions: Participant 570,487 124,202 67,696 10,953 44,690 9,416 Employer -- -- -- -- -- -- ---------- ---------- -------- -------- -------- -------- Total contributions 570,487 124,202 67,696 10,953 44,690 9,416 ---------- ---------- -------- -------- -------- -------- Distributions to participants (222,123) (25,487) (34,655) (41,004) (1,226) (306) Loan activity, net -- -- -- -- -- -- Transfers from (to) other funds (988) (173,733) (13,026) 164,212 (118,548) 117,039 ---------- ---------- -------- -------- -------- -------- Net increase (decrease) 1,393,306 (88,495) 52,788 166,139 161,696 (265,979) ---------- ---------- -------- -------- -------- -------- Net assets available for plan benefits: Beginning of year -- -- -- -- -- -- Transfers from (to) other plans (note 1) 3,086,570 1,170,447 572,981 180,774 395,605 401,526 ---------- ---------- -------- -------- -------- -------- End of year 4,479,876 1,081,952 625,769 346,913 557,301 135,547 ========== ========== ======== ======== ======== ======== December 31, 1996 ----------------------------------------- Preferred Loan Stock Fund Fund Total ------------- ---------- ------------- Assets Investments (notes 2 and 3) -- 66,269,195 2,867,380,324 Cash -- -- 9,405,955 Receivables: Contributions 639,009 -- 18,838,337 Dividends and other -- -- 14,111,728 -------- ----------- -------------- Total receivables 639,009 -- 32,950,065 -------- ----------- -------------- Total assets 639,009 66,269,195 2,909,736,344 -------- ----------- -------------- Liabilities Forfeiture credits due to employer -- -- 12,800,143 ESOP note payable -- -- 34,900,000 Payable for investment purchases -- -- 2,536,913 -------- ----------- -------------- Net assets available for plan benefits 639,009 66,269,195 2,859,499,288 ======== =========== ============== Investment activity: Dividends -- -- 79,270,418 Interest -- -- 41,521,488 Appreciation (depreciation) in fair value of investments -- -- 421,845,008 -------- ----------- -------------- -- -- 542,636,914 -- -- (1,877,723) Less: Trustee/administrative expenses -------- ----------- -------------- -- -- 540,759,191 Net investment income (loss) -------- ----------- -------------- Contributions: Participant -- 3,683,087 230,647,125 Employer 748,056 -- 32,714,489 -------- ----------- -------------- Total contributions 748,056 3,683,087 263,361,614 -------- ----------- -------------- Distributions to participants -- (5,178,877) (193,469,103) Loan activity, net -- 6,725,150 -- Transfers from (to) other funds (109,047) (2,369,547) -- -------- ----------- -------------- Net increase (decrease) 639,009 2,859,813 610,651,702 -------- ----------- -------------- Net assets available for plan benefits: Beginning of year -- 39,611,649 1,215,793,546 Transfers from (to) other plans (note 1) -- 23,797,733 1,033,054,040 -------- ----------- -------------- End of year 639,009 66,269,195 2,859,499,288 ======== =========== ==============
F-42 Travelers Group 401(k) Savings Plan Schedule to Form 5500: Item 27 (a) Schedule of Assets Held for Investment Purposes December 31, 1997
Number of Shares Cost Value ** --------- ---- -------- Short Term Funds Liquid Reserve Fund 18,360,722 $ 18,360,722 $ 18,360,722 Deferred Profit Sharing Plan 63,194 63,194 63,194 ------------------------------ 18,423,916 18,423,916 ------------------------------ Stock Funds Travelers Group Inc. Common Stock Fund* 30,836,412 447,581,950 1,661,311,551 Travelers Group Inc Series C Preferred Stock* 2,880,459 153,583,316 379,039,600 Travelers Property Casualty Corp Common Stock* 1,511,505 36,396,446 66,506,184 American Express Common Stock Fund* 1,476,671 39,300,908 131,792,887 ------------------------------ 676,862,620 2,238,650,222 ------------------------------ Mutual Funds American Capital Reserve Fund 10,514,136 10,514,136 10,514,136 American Capital Enterprise Fund 3,545,951 50,394,719 61,770,464 American Capital Government Securities Fund 454,830 4,712,686 4,666,556 American Capital Comstock Fund 919,174 14,292,544 14,890,615 American Capital Emerging Growth Fund 3,935,653 116,290,325 148,374,110 Common Sense Money Market Fund 2,436,540 2,436,540 2,436,540 Common Sense Government Fund 56,637 615,668 601,480 Common Sense Growth Income Fund 270,999 4,446,012 4,696,405 Common Sense Growth Fund 283,785 4,610,085 5,139,348 Smith Barney Equity Income Fund* 8,413,016 15,016,496 144,030,836 Smith Barney U.S. Government Securities Fund* 1,674,139 22,372,262 22,818,510 Smith Barney Money Fund* 51,341,355 51,341,355 51,341,355 Smith Barney International Equity Fund* 6,133,012 106,204,777 120,881,658 Smith Barney Aggressive Growth Fund* 1,142,453 31,230,599 44,989,795 Smith Barney Appreciation Fund* 13,909,552 153,090,589 193,899,159 Smith Barney Diversified Strategic Fund* 2,550,793 20,465,071 20,380,833 Smith Barney Utility Fund* 688,485 10,029,524 11,394,421 Smith Barney Special Equity Fund* 535,942 15,768,355 14,341,800 Smith Barney Managed Growth Fund* 2,076,500 26,532,285 29,569,359 Salomon Brothers Institutional Money Market Fund 68,906,636 68,906,636 68,906,636 Salomon Brothers Capital Fund 4,548,843 85,766,879 96,571,938 Index Equity Fund 60,461 58,327,650 137,211,432 Europacific Growth Fund 2,690,001 62,833,371 69,993,825 Putnam OTC Emerging Growth Fund 2,253,612 31,499,917 36,305,689 Templeton Developing Markets Trust 1,574,218 23,176,996 20,370,381 Fidelity Blue Chip Growth Fund 267,961 9,333,747 10,573,734 SB High Yield Bond Fund 890,558 10,243,057 10,455,154 American Odyssey Core Equity Fund* 557,095 8,820,054 11,102,905 American Odyssey Emerging Opportunities Fund* 429,075 5,250,692 6,148,638 American Odyssey International Equity Fund* 332,310 4,202,653 5,144,165 American Odyssey Long-Term Bond Fund* 94,650 928,113 1,016,543 American Odyssey Intermediate-Term Bond Fund* 61,818 586,050 637,343 American Odyssey Short Term Bond Fund* 10,815 121,146 111,499 State Street Global Advisors Flagship Fund 744,213 65,834,861 118,520,465 State Street Global Advisors Russell 2000 Fund 2,694,472 41,911,733 64,058,436 CS Growth Portfolio* 210,379 2,784,112 2,711,780 CS High Growth Portfolio* 215,678 2,865,312 2,784,406 CS Balanced Portfolio* 209,546 2,693,332 2,629,801 CS Conservative Portfolio* 49,330 610,286 594,928 CS Income Portfolio* 51,570 610,401 602,848 ------------------------------ 1,147,671,026 1,573,189,926 ------------------------------
F-43 Travelers Group 401(k) Savings Plan Schedule to Form 5500: Item 27 (a) Schedule of Assets Held for Investment Purposes (Continued) December 31, 1997
Number of Shares Cost Value ** --------- ---- -------- BGI U.S. Tactical Asset Allocation Fund Wells Fargo Money Market 64 $ 64 $ 64 Wells Fargo Cash for Emloyee Benefit Trust 1 1 1 Wells Fargo US Tactical Asset Allocation Fund 589,984 9,811,383 13,885,650 ------------------------------ 9,811,448 13,885,715 ------------------------------ SBAM Broad Market Fixed Income Fund United States Treasury Notes 8.250% 06/30/2002 150,000 149,555 152,976 6.375% 04/30/1999 150,000 150,489 151,359 8.375% 05/15/2000 90,000 90,176 91,350 8.375% 08/15/2027 100,000 104,859 105,469 8.125% 11/15/2027 150,000 152,719 154,149 5.750% 08/15/2003 75,000 73,098 75,047 6.500% 10/15/2006 250,000 249,849 261,758 Federal Home Ln Mtg Corp 6.500% 03/01/2026 287,487 285,601 284,745 7.000% 03/01/2011 39,260 39,475 40,007 8.000% 07/01/2020 137,672 143,093 144,352 Federal Nat Mtg Assn Gtd 7.500% 08/01/2023 55,462 55,913 56,982 6.500% 12/01/2025 82,332 80,454 81,624 6.500% 12/01/2010 78,103 77,676 78,619 7.000% 03/01/2026 97,388 96,566 98,322 Govt. Nat Mtg Assn 7.500% 01/15/2028 50,139 50,593 51,389 7.500% 11/15/2022 76,112 76,326 78,270 Belo (MA) Corp Deb 7.250% 09/15/2027 125,000 124,263 127,825 Banc One Auto Grantor Tr 1997-B Asset Backed 8.290% 07/20/2004 125,000 124,992 125,090 Chase Manhattan Auto Owner Trust Series 1997-A 8.25% 11/15/2000 175,000 175,121 175,732 First Data Corp Medium Term Nts 6.375% 12/15/2007 125,000 124,154 124,373 Green Tree Finl Corp 97-6 MFD HSG 7.070% 01/16/2029 99,468 99,453 102,430 Midland BK Plc Sub Nt 7.650% 05/01/2025 100,000 104,655 108,706 Nationsbank Credit Card Master Trust Ser 1995-1 8.450% 04/15/2003 200,000 200,906 202,116 Staples Inc Sr Nt Reg 7.125% 08/15/2007 150,000 149,681 152,394 Standard Credit Card Master Trust 1995-3 7.850% 02/07/2002 155,000 161,983 160,255 Sun Inc Nt 7.950% 12/15/2001 175,000 179,711 184,478 Tenneco Inc. 7.875% 04/15/2027 50,000 52,030 54,701 Texas Instrs Inc 6.125% 02/01/2008 150,000 144,735 147,021 Banc One Corp Sub Nt 7.800% 05/01/2007 100,000 101,732 107,487 Pohang IR & Stl 7.500% 08/01/2002 125,000 128,485 103,745 Empresa Elec Pehuenhe Notes 05/01/2003 150,000 150,356 152,354 ------------------------------ 3,898,699 3,935,125 ------------------------------
F-44 Travelers Group 401(k) Savings Plan Schedule to Form 5500: Item 27 (a) Schedule of Assets Held for Investment Purposes (Continued) December 31, 1997
Number of Shares Cost Value ** --------- ---- -------- Fisher Francis Intermediate Bond Fund United States Treasury Bills 700,000 $ 683,011 $ 699,482 United States Treasury Notes 5.625% 10/31/1999 200,000 200,000 199,812 5.750% 10/31/2002 950,000 948,344 950,893 5.625% 11/30/1999 1,400,000 1,399,453 1,398,684 7.625% 01/15/2025 100,000 119,750 121,359 7.000% 07/15/2006 3,330,000 3,577,283 3,594,302 Federal Nat Mtg Assn Gtd 7.000% 11/01/2008 597,467 601,202 608,712 7.000% 11/01/2008 275,572 277,294 280,758 7.000% 07/01/2006 2,854,017 2,873,192 2,907,530 6.500% 04/25/2008 974,340 963,569 977,380 REMIC Passthru 01/25/2021 281,002 248,478 260,188 REMIC Passthru 09/25/2023 106,660 99,128 105,293 United States Dept Veterans Vendee Mtg Trust Series 1994-3B 09/15/2024 3,245,475 51,865 39,046 Series 1996-1 11D 02/15/2026 10,353,255 232,031 220,007 Federal Home Ln Mtg Corp GD REMIC 8.750% 02/15/2005 1,800,000 1,814,555 1,818,558 7.060% 06/15/2022 28,000 935,200 642,600 African Dev Bk Sub Nt 9.300% 07/01/2000 400,000 392,380 429,008 Federal Home Ln Bks Fltg 5.352% 03/19/1998 4,000,000 3,997,084 4,001,840 Asset Securitization Corp Coml Mtg 7.410% 01/13/2027 250,000 252,461 265,585 7.489% 04/14/22 350,000 354,030 373,625 Amresco Coml Mtg Fdg E Corp 7.189% 06/17/2029 500,000 507,266 523,125 Ameri Tech Capital Fdg Gtd Nt Fltg 6.024% 05/12/1998 2,000,000 1,997,280 2,000,920 Associates Corp North Amer Sr Nt 7.50% 02/15/2005 440,000 474,197 474,258 Atlantic City Elec Co 1st Mtg 7.000% 09/01/2023 500,000 475,230 492,800 Bear Stearns COS Inc. 5.750% 02/15/2001 1,000,000 981,840 984,680 Coca-Cola Enter 6.375% 08/01/2001 430,000 429,497 433,057 Capital Desjardins Inc. Sr Nt 7.370% 08/08/2005 1,000,000 1,015,550 1,054,840 Centerior Energy Receivables Master Trust Series 1996-1 Cl A 7.200% 04/15/2002 600,000 599,250 616,824 Commercial Credit Group Inc. Nt 8.700% 06/15/2009 400,000 468,060 465,872 First Union-Lehman Bros Coml Mtg Tr Ser 97-C1 Passthru CTF Cl A-2 Reg 7.299% 04/1B/2029 500,000 505,247 521,250 Greentree Mfg Corp 7.350% 500,000 502,703 520,900 Greentree 97-1 Asset Backed 6.859% 03/15/2028 520,000 520,000 528,024 Merrill Lynch Mtg Invs Inc Mtg Passthru 06/15/2021 10,875,191 287,600 326,256 Merrill Lynch Mtg Invs Inc Mtg Passthru 08/18/2029 550,000 555,328 574,151 Morgan Stanley Cap I Inc Coml Mtg 7.269% 07/15/2029 500,000 507,618 521,560 MBNA Master CR Card TR Ser 1994-1 Asset Bkd CTF Fltg 6.352% 03/15/2001 1,010,000 1,010,316 1,010,030 Midland American Capital Corp 12.750% 11/15/2003 240,000 278,335 252,749 Midland Bk PLC Shelf 1 7.625% 06/15/2006 500,000 523,735 531,290 Morgan Stanley Group Inc. 6.875% 03/01/2007 500,000 500,675 510,875 Navistar Finl Owner TR 1997-A Asset Backed Nt CL A-3 5.750% 03/15/2002 600,000 607,055 610,446 Old Rep Intl Corp 7.000% 06/15/2007 300,000 299,838 309,516 Olympic Auto Rec. TR 1997-A 5.124% 08/15/2000 1,653,249 1,653,000 1,654,786 Prudential Ins Co Amer Cap Note 6.875% 04/15/2003 750,000 743,903 762,683
F-45 Travelers Group 401(k) Savings Plan Schedule to Form 5500: Item 27 (a) Schedule of Assets Held for Investment Purposes (Continued) December 31, 1997
Number of Shares Cost Value ** --------- ---- -------- Residential Fdg Mtg Secs II Inc. Home Equity Ln Bkd Nt 1997-HS2 Adj Rate Reg 1,042,842 $ 1,042,842 $ 1,040,561 Residential Fdg Mtg Ser 1996-S20 7.100% 09/25/2026 700,000 707,109 703,150 Resolution Tr Corp Mtg Passthru CTF 93-C3 Var Rate 4.604% 12/25/2024 215,113 217,130 215,111 San Diego Gas & Elec Co Ser JJ 9/625% 04/15/2020 750,000 843,525 822,038 Sears CR Acct Mstr Tr 1994-2 7.250% 02/15/1998 83,333 83,292 83,333 Structured Asset Secs Corp Mtg Passthru 1996-CFL Var Rate 1.354% 02/25/2028 6,100,000 253,216 320,250 1996-CFL 7.750% 02/25/2028 430,064 439,045 439,113 Signet Heloc Tr Asset Bkd Ser 95-A 06/20/2004 636,062 636,284 638,034 Southern Calif Edison Co 1st & Ref Mtg Ser 1993-G 7.125% 07/15/2025 500,000 481,550 496,935 Vanderbilt Mortgage Finance Ser 1996-A CL A5 7.425% 02/07/2012 330,000 331,097 341,342 CL A4 7.175% 06/07/2009 310,000 310,880 316,925 Ford Motor Credit 8.625% 01/24/2000 240,000 258,919 249,789 Indust Fin Corp Ser 144A 6.875% 04/01/2003 340,000 335,733 265,403 Korea Dev Bank 7.125% 09/17/2001 500,000 498,545 419,120 Korea Elec Pwr Corp Nt 8.000% 07/01/2002 500,000 479,205 420,830 Quebec Prov of Canada Reg 13.000% 10/01/2013 660,000 802,671 722,404 Mar 98 US Note C112 32 26,177 31,500 -------------------------- 43,211,053 43,101,392 -------------------------- Guaranteed Investment Contracts - Salomon *** American International Life Assurance Co. of NY GIC#18287 5,229,378 5,229,378 5,229,378 CNA GP 12798 8,894,093 8,894,093 8,894,093 CNA GP #24014 4,749,848 4,749,848 4,749,848 CNA GIC 24014-016 10,281,458 10,281,458 10,281,458 Met Life Ins. Co. GAC 13519 14,978,379 14,978,379 14,978,379 Met Life Ins. Co. GAC #13739 12,416,764 12,416,764 12,416,764 New York Life Ins Co #GA 06538-003 6,027,978 6,027,978 6,027,978 New York Life Fixed Dollar Account GA-06538004 11,230,326 11,230,326 11,230,326 -------------------------- 73,808,224 73,808,224 -------------------------- Guaranteed Investment Contract - Smith Barney *** Principal Financial Corporate Contract #4-09271-01 9,734,186 9,734,186 9,734,186 Principal Financial Corporate Contract #49271-2 3,027,614 3,027,614 3,027,614 Prudential Insurance Company GIC #7658-211 7,143,605 7,143,605 7,143,605 Prudential Insurance Company GIC #7658-212 10,604,867 10,604,867 10,604,867 Travelers Insurance Company #GR-16409A 19,569,815 19,569,815 19,569,815 Travelers Insurance Company #GR-16384 52,654,551 52,654,551 52,654,551 Travelers GIC Contract # 16569 15,151,968 15,151,968 15,151,968 Travelers Life Contract #GR - 16384 15,988,913 15,988,913 15,988,913 Travelers Insurance Company #GR-16409 15,750,727 15,750,727 15,750,727 -------------------------- 149,626,246 149,626,246 -------------------------- Guaranteed Annuity Contracts Group annuity contract GR 16171* 1,556,609 1,556,609 1,556,609 Group annuity contract GR 16331* 1,325,815 1,325,815 1,325,815 Group annuity contract GR 16487* 2,415,414 2,415,414 2,415,414 Group annuity contract GR 16573* 3,690,674 3,690,674 3,690,674 -------------------------- 8,988,512 8,988,512 --------------------------
F-46 Travelers Group 401(k) Savings Plan Schedule to Form 5500: Item 27 (a) Schedule of Assets Held for Investment Purposes (Continued) December 31, 1997
Number of Shares Cost Value ** --------- ---- -------- Travelers Insurance Company Annuity Contracts* 481,255,926 $ 481,255,926 $ 481,255,926 Universal Life Insurance Contract 55,493 55,493 In-Time Investing Fund* 63,472 803,395 1,082,064 Loan Fund**** 86,936,264 86,936,264 -------------- -------------- Total $2,701,352,822 $4,692,939,025 ============== ==============
* Parties-in-interest exempt under ERISA Regulations. See note 5 to financial statements. ** See note 2 to financial statements for a discussion of investment valuation. *** The interest rates of the guaranteed investment contracts range from 5.6% to 8.0%. The blended rate of return earned for 1997 was 6.8% prior to fund expenses. **** The interest rate on loans to participants equal from one to two percentage points above the Prime Rate published in the Wall Journal for the first business day of the month in which the loan application is received. F-47 Travelers Group 401(k) Savings Plan Schedule to Form 5500: Item 27(a) Schedule of Assets Held for Investment Purposes Which Were Both Acquired and Disposed of Within The Plan Year For the year ended December 31, 1997 There were no assets held for investment purposes which were both acquired and disposed of within the Plan year. F-48 Travelers Group 401(k) Savings Plan Schedule to Form 5500: Item 27(d) Schedule of Reportable Transactions For the year ended December 31, 1997 The following series of transactions exceeded 5% of the Plan's net assets available for plan benefits.
No. of Purchase Selling Expense Cost Net Description transactions price price with trade of asset gain(loss) - ----------- ------------ ----- ----- ---------- -------- ---------- Liquid Reserve Fund 2,400 $ 202,796,377 - - 202,796,377 - Liquid Reserve Fund 1,726 $ - 199,611,659 - 199,611,659 - Travelers Group Inc. Common Stock Fund 411 $ 160,500,573 - 98,089 160,298,662 - Travelers Group Inc. Common Stock Fund 389 $ - 61,911,124 48,564 19,145,732 42,716,828
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