UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                            ________________________

                                    FORM 10-K

[x]   ANNUAL  REPORT PURSUANT  TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
      ACT OF 1934 ( NO FEE REQUIRED)
                   For the fiscal year ended December 31, 2000

                                       OR

[  ]  TRANSITION  REPORT  PURSUANT  TO  SECTION  13  OR 15(d)  OF THE SECURITIES
      EXCHANGE ACT OF 1934 (NO FEE REQUIRED) FOR THE TRANSITION PERIOD

                          Commission file number 1-5571
                            ________________________

                             RADIOSHACK CORPORATION
             (Exact name of registrant as specified in its charter)

                    DELAWARE                                 75-1047710
          (State or other jurisdiction of                (I.R.S. Employer
           incorporation or organization)                Identification No.)

100 Throckmorton Street, Suite 1800, Fort Worth, Texas           76102
      (Address of principal executive offices)                 (Zip Code)

        Registrant's telephone number, including area code (817) 415-3700
                            ________________________

SECURITIES REGISTERED PURSUANT TO SECTION 12(B) OF THE ACT:
                                                       Name of each exchange
           Title of each class                          on which registered
   Common Stock, par value $1 per share                New York Stock Exchange
      Preferred Share Purchase Rights                  New York Stock Exchange

SECURITIES REGISTERED PURSUANT TO SECTION 12(G) OF THE ACT:  None

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. ____

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

As of March 21,  2001,  the  aggregate  market value of the voting stock held by
non-affiliates of the registrant was $5,887,090,827  based on the New York Stock
Exchange closing price.

As of March 21, 2001, there were 184,583,373  shares of the registrant's  Common
Stock outstanding.

                       Documents Incorporated by Reference

Portions of the Proxy Statement for the 2001 Annual Meeting of Stockholders  are
incorporated by reference into Part III.
               The Index to Exhibits is on Sequential Page No. 49.
                                 Total Pages 60.



PART I

ITEM 1. BUSINESS.

GENERAL
On May 18, 2000, the stockholders of Tandy Corporation  approved a change of the
name of the company to RadioShack  Corporation  ("RadioShack" or the "Company").
RadioShack was incorporated in Delaware in 1967. RadioShack primarily engages in
the  retail  sale  of  consumer  electronics  through  the  RadioShack(R)  store
chain.  Sales derived outside of the United States are not material.

RadioShack. At December 31, 2000, RadioShack operated 5,109 company-owned stores
located throughout the United States.  These stores average  approximately 2,300
square feet in gross area and are located in major malls and strip  centers,  as
well as individual storefronts. These locations carry a broad assortment of both
private  label and third  party  branded  products.  The product  lines  include
electronic parts and  accessories,  cellular,  PCS and conventional  telephones,
audio and video equipment, direct-to-home ("DTH") satellite systems and personal
computers and related products, as well as specialized products such as scanners
and weather radios,  among others.  RadioShack also provides consumers access to
third party  services  such as cellular  phone,  PCS and pager  activation,  DTH
satellite  programming,  long distance telephone service,  broadband and dial-up
Internet access and prepaid wireless airtime.  At December 31, 2000,  RadioShack
also had a network  of 2,090  dealer/franchise  outlets,  including  54  located
outside of the U.S. These outlets  provide private label and third party branded
products and services to smaller communities.  The dealers are generally engaged
in other retail operations and augment their sales with RadioShack products.

Strategic   Alliances.   RadioShack   has  formed   strategic   alliances   with
well-recognized  companies.  These  alliances  have  or are  expected  to have a
significant  impact  on  RadioShack's  operations  and  financial  strategy  and
include:

    At  Home  Corporation  (Excite@Home) -  On  October  20,  2000,   RadioShack
    announced  a  strategic  alliance  with  Excite@Home,  the country's leading
    broadband  online  service  provider,  whose  major  cable  partners include
    Comcast, AT&T and Cox, among others.  Excite@Home  service was rolled out in
    RadioShack stores in November 2000 in  select  markets.  The  agreement also
    encompasses  joint  marketing  and  an  Excite@Home  promotional  display in
    RadioShack stores.

    Blockbuster   Inc.  ("Blockbuster")  -  On  February 27,  2001,   RadioShack
    announced  an alliance with Blockbuster to  introduce a  RadioShack  "store-
    within-a-store"  concept  within  Blockbuster  locations.  The  size of  the
    RadioShack  merchandising  areas  will  vary  depending  on the size of  the
    participating Blockbuster store, but may range from 600-square foot sections
    to smaller kiosks.  A  wide  selection  of RadioShack's most popular product
    and service  offerings will be featured; however, specific inventory for the
    stores will be determined as the program  moves  forward. The  initial  test
    phase  calls  for 130  select Blockbuster stores in four  markets to contain
    "store-within-a-store" fixtures  by summer 2001.  If the test  phase  proves
    successful  and  the  alliance goes forward, management   believes that this
    alliance could  provide  access  to  complementary customer demographics, as
    well as expand RadioShack's current outlet base.

    Compaq  Computer  Corporation ("Compaq") -  Compaq  is the  sole supplier of
    personal  computers  sold  through  RadioShack  retail stores, participating
    dealer/franchise outlets and on the Company's website.

    DIRECTV,  Inc. ("DIRECTV")  -  RadioShack  sells  direct-to-home   satellite
    systems  and  activates  customers  for  DTH satellite programming, provided
    exclusively by DIRECTV.

    Microsoft Corporation ("Microsoft") -  Microsoft's  in-store  display allows
    RadioShack  customers  to  view demonstrations  of  narrowband and broadband
    technology and subscribe to MSN(TM)dial-up or broadband Internet  access, as
    well as view, on-line or in the stores, a broad range of existing and future
    products,  solutions and services  based on  Microsoft technologies.   As of
    December 31, 2000,  substantially  all  of  the  company-owned  stores   and
    approximately half of the dealer/franchise outlets had been fixtured for the
    Microsoft Internet Center @ RadioShack via a "store-within-a-store" concept.

    Sprint  Communications  Company  and  Sprint  PCS ("Sprint") -  Through  its
    telecommunications alliance with Sprint, RadioShack customers have access to
    wireless PCS telephones and service, prepaid calling cards and long distance
    telephone  service,  as well as residential telephones and related telephony
    products, at the "Sprint Store at RadioShack."

    Thomson Multimedia ("Thomson") - Thomson, which owns the RCA brand, supplies
    RadioShack  with  various  RCA-branded  audio and  video  components such as
    televisions,  DTH satellite systems,  VCRs, camcorders, digital  video  disc
    (DVD)  players,  digital  cameras,  CD  shelf  systems   and  other  digital
    entertainment  products.   RCA  products  are  sold  through the RCA Digital
    Entertainment Center at RadioShack via a "store-within-a-store," launched in
    June 2000.

    Verizon  Wireless  ("Verizon")  -  On August 1, 2000, RadioShack announced a
    multi-year wireless telephone alliance  with  Verizon,  the nation's largest
    wireless  communications  service  provider.  This  strategic  alliance will
    permit  approximately  4,300  company-owned RadioShack stores to consolidate
    cellular service offerings with  a single service provider, thereby creating
    training,  marketing,  inventory,  repair  and other supply-chain synergies.
    Additionally,  RadioShack  and  Verizon  will create and implement a "store-
    within-a-store" concept, which management anticipates launching in mid-2001.
    In  addition  to  RadioShack's  existing  relationship  with Sprint PCS, the
    Verizon  alliance  allows  RadioShack  to  offer  a second national wireless
    carrier in a majority of the Company's retail  stores.  RadioShack continues
    to  offer  cellular  service  in  its  other retail  outlets through various
    cellular carriers in areas not covered by Verizon.

RadioShack.com, LLC. ("RadioShack.com") In October 1999, RadioShack launched its
www.RadioShack.com  website.  As of December  31,  2000,  there were over 22,000
products  available  through the  website.  An  additional  10,000  products are
anticipated  to be added in 2001.  Online  customers  can  purchase,  return  or
exchange products available on the RadioShack website at their local RadioShack.

Retail Support Operations.

    RadioShack International Procurement Limited Partnership ("RSIP") -  RSIP is
    100% owned by RadioShack and its subsidiaries.  RSIP serves the wide-ranging
    international  import/export,  sourcing,  evaluation,  logistics and quality
    control  needs  of the  Company.   RSIP  also provides  services for outside
    customers, primarily InterTAN, Inc. ("InterTAN").  Most  of  RSIP's activity
    for InterTAN involves sourcing of goods from manufacturers in Asia.

    Consumer Electronics Manufacturing - RadioShack operates seven manufacturing
    facilities in the United States and one  overseas manufacturing operation in
    China.  These eight manufacturing  facilities  employed  approximately 3,700
    employees as  of  December 31, 2000.  RadioShack  manufactures  a variety of
    products, primarily  sold  through  its retail outlets, including telephony,
    antennas, wire and cable products and a wide variety of "hard to find" parts
    and accessories for consumer electronic products.

    RadioShack  Customer  Support - Using  state-of-the-art  telephone  and data
    networks,  RadioShack  Customer  Support  responds to more  than six million
    phone calls and emails annually.  The responses include answers to technical
    questions,  customer service inquiries and  direct sales requests related to
    RadioShack's  catalog  operations,  its website and  "hard to find" products
    offered through the RadioShack Unlimited program.

    RadioShack Installation  Services ("RSIS") - RSIS,  through  its  69   field
    offices  located  in 30 states,  designs,  installs  and  maintains  cabling
    systems for the transmission of video,  voice and data,   primarily for home
    use.  RSIS  provides  these  services  to  both RadioShack and other outside
    parties.   Services  for  RadioShack  consist  primarily  of  customer   DTH
    satellite system installations, but also include  installations  relating to
    broadband Internet access.

    RadioShack  Service  Centers - RadioShack  maintains  a  service and support
    network  to  service  the  consumer electronics and personal computer retail
    industry in the U.S.  At December 31, 2000, there were 56 RadioShack Service
    Centers  in the U.S. which repair name brand and private label products sold
    from the  Company's  various  sales  channels.  RadioShack is also a vendor-
    authorized service provider for such leading manufacturers  as Compaq, Sony,
    Hitachi,  Hewlett-Packard,  RCA/Thomson  and  Nokia,  among others and  also
    performs repairs  for third-party  service centers and extended service plan
    providers under national service agreements.

    RadioShack Technology Services - The Company's management information system
    architecture is composed of  a distributed, online network of computers that
    links all stores, customer channels,  delivery  locations,  service centers,
    credit providers,  distribution  facilities and the corporate offices into a
    fully integrated system.  Each store has its own server to support the point
    of sale system.  This  design  also allows  store management  to track sales
    and/or  inventory  at  the product, customer or sales associate level.  This
    division  provides the  majority of programming and system analysis needs of
    the Company.

    Regional Distribution Centers - There are 10 distribution centers which ship
    over one million cartons  each  month to the company-owned retail stores and
    dealer/franchise outlets.  Four of these distribution centers also  serve as
    fulfillment centers for on-line purchases made through www.RadioShack.com.

SEASONALITY
As is the case with other retail  businesses,  RadioShack's  net sales and other
revenues are greater  during the  Christmas  season than during other periods of
the  year.  There is a  corresponding  pre-seasonal  inventory  build-up,  which
requires working capital related to the anticipated  increased sales volume. See
Note 21 of the "Notes to Consolidated Financial Statements" for quarterly data.

PATENTS AND TRADEMARKS
RadioShack  owns or is licensed to use many trademarks and service marks related
to its  business in the United  States and in foreign  countries.  Radio  Shack,
RadioShack,  RadioShack.com,  You've got questions. We've got answers, America's
Home  Connectivity  Store and Around The Corner and Around The Clock are some of
the  marks  most  widely  used by the  Company.  RadioShack  believes  that  the
RadioShack  name and marks are well  recognized by consumers,  and that the name
and marks are associated with high-quality  service.  RadioShack's  manufactured
products are sold primarily under the RadioShack trademark. RadioShack also owns
various patents  relating to electronic  products  designed and  manufactured by
RadioShack.  RadioShack  believes  that  the  loss of the  RadioShack  name  and
RadioShack marks would be material to its business.

SUPPLIERS
RadioShack's marketing strategy depends, in part, upon its ability to offer both
private label and third party branded products, as well as third party services,
to its  customers.  RadioShack  utilizes a large number of suppliers  located in
various  parts of the  world to  obtain  its raw  materials  and  private  label
merchandise.  Management  does not expect a lack of availability of raw material
or any single private label product to have a material impact on its operations.
In terms of third party branded  products sold by  RadioShack,  no single vendor
provided in excess of 10% of RadioShack's  aggregate  product purchases in 2000.
However,  certain vendors,  strategic allies and service providers are important
to  RadioShack's  business and the loss of or  disruption  in supply from one of
these could have a material adverse effect on RadioShack's sales.  Additionally,
certain  suppliers  have,  at  times,   limited  their  supply  of  products  to
RadioShack.

BACKLOG ORDERS
RadioShack  has  no  material  backlog of orders for the products or services it
sells.

COMPETITION
Despite  rising  consumer  demand  for  wireless   communications  products  and
services,  as well as a rapid  consumer  acceptance  of new  digital  technology
products,   the  consumer  electronics  retail  business  still  remains  highly
competitive,  driven by technology  and product  cycles,  as well as the overall
state of the economy.

In the consumer  electronics  retailing  business,  competitive  factors include
price,   product   availability,   quality  and  features,   consumer  services,
manufacturing  and distribution  capability,  brand reputation and the number of
competitors.  RadioShack  competes in the sale of its products and services with
several retail formats. Consumer electronics retailers include both Circuit City
and Best  Buy/MusicLand.  Department and specialty stores, such as Sears and The
Home  Depot,  compete on more of a select  product  scale.  Sprint  and  Verizon
compete  directly with RadioShack  through their own retail and online presence.
Mass merchants such as Wal-Mart and Target,  and other  alternative  channels of
distribution  such as mail order and  e-commerce,  compete with  RadioShack on a
more widespread basis. With respect to the products sold by RadioShack, numerous
domestic  and foreign  companies  also  manufacture  similar  products for other
retailers,  which are sold under  nationally  recognized  brand names or private
labels.

Management  believes RadioShack has two primary factors  differentiating  itself
from the  competition.  First  is its  extensive  physical  retail  presence  of
approximately   7,200   conveniently    located   retail   outlets   nationwide.
Additionally, RadioShack's specially trained sales staff is capable of providing
enhanced  product  explanations,  assisting  customers with service  activation,
where applicable,  and assisting with the selection of appropriate  products and
accessories.

Another   differentiating   factor  is  RadioShack's  strategic  alliances  with
well-recognized  companies.  These  alliances  with such  companies  as  Sprint,
Verizon,  Thomson and Compaq,  among  others,  augment the strong  position that
RadioShack has  historically  maintained in its core product  categories such as
batteries,   communications  equipment,   telephony,   antennas  and  parts  and
accessories.   Additionally,   RadioShack   is  able  to  leverage   name  brand
recognition,  marketing  efforts and  advertising  campaigns with its allies and
also create  cross-revenue  opportunities  for repair service  income,  residual
income, consumer acquisition fees and rebates.

Given the highly competitive nature of the consumer electronics retail business,
no assurance can be given that RadioShack will continue to compete  successfully
with  respect to each of the factors  referenced  above.  Also,  in light of the
ever-changing  nature of the electronics  retail  industry,  RadioShack would be
adversely  affected  if its  competitors  were able to offer  their  products at
significantly  lower prices,  introduce  innovative or technologically  superior
products not yet available to RadioShack,  or if RadioShack was unable to obtain
certain products in a timely manner or for an extended period of time.

With  respect to the  expansion  of the  Internet,  management  does not believe
e-commerce  retailers currently provide  significant  competition to RadioShack.
This, however, could change and become significant over time. Management further
believes that RadioShack is well  positioned to meet the increasing  competition
from  Internet  retailers  with its  www.RadioShack.com  website,  coupled  with
RadioShack's  extensive physical retail presence,  service capabilities and wide
assortment of consumer electronics products.

EMPLOYEES
As  of  December  31,  2000,  RadioShack  had  approximately  43,600  employees.
Approximately  10,000  temporary  retail  employees  were hired for the  holiday
selling season;  however,  less than 3,000 of these temporary employees remained
at year-end.  RadioShack's  employees are not covered by  collective  bargaining
agreements  nor are  they  members  of  labor  unions.  RadioShack's  management
considers its relationship with its employees to be good.



ITEM 2. PROPERTIES.
Information  on  RadioShack's  properties  is  in  Management's  Discussion  and
Analysis  and the  financial  statements  included  in  this  Form  10-K  and is
incorporated  into this Item 2 by reference.  The following  items are discussed
further on the referenced pages:

                                                  Page
Retail Outlets...............................      12
Property, Plant and Equipment................      36
Commitments and Contingent Liabilities.......      40

RadioShack  leases,  rather  than owns,  most of its retail and  service  center
facilities.  RadioShack  stores are located  primarily in major shopping  malls,
stand-alone  buildings or shopping  centers owned by other entities.  RadioShack
owns most of the property on which its executive offices are located in downtown
Fort Worth,  Texas, all distribution  centers,  except for two which are leased,
and most of its manufacturing  facilities  located throughout the United States.
The Company leases seven  administrative  offices and one manufacturing plant in
the Asia Pacific region.  RSIS  headquarters  and field offices are also leased.
Existing  distribution center and office facilities are reviewed periodically to
determine if RadioShack's space is adequate to meet its needs in the foreseeable
future.

ITEM 3. LEGAL PROCEEDINGS.
RadioShack  has  various   claims,   lawsuits,   disputes  with  third  parties,
investigations and pending actions involving allegations of negligence,  product
defects,  discrimination,  infringement of  intellectual  property  rights,  tax
deficiencies,  violations  of permits or licenses,  breach of contract,  various
labor related claims and other matters against  RadioShack and its  subsidiaries
incident to the operation of its business.  The  liability,  if any,  associated
with  these  matters  was  not  determinable  at  December  31,  2000.  Although
occasional  adverse  settlements or resolutions may occur and negatively  impact
earnings in the year of settlement,  it is the opinion of management  that their
ultimate  resolution  will not have a materially  adverse effect on RadioShack's
financial position.

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
No  matters  were  submitted  to  a  vote of  security holders during the fourth
quarter of 2000.



EXECUTIVE OFFICERS OF THE REGISTRANT (SEE ITEM 10 OF PART III).
The following is a list of RadioShack Corporation's executive officers and their
ages, positions and length of service with the Company as of February 28, 2001.




                                      Position                                       Years with
    Name                  (Date Elected to Current Position)                 Age       Company
    ----                  ----------------------------------                 ---       -------
                                                                               >

Leonard H. Roberts        Chairman of the Board and Chief Executive           52         7 (1)
                          Officer, RadioShack Corporation (May 1999)

David J. Edmondson        President and Chief Operating Officer,              41         6 (2)
                          RadioShack Corporation (December 2000)

David Christopher         Executive Vice President, RadioShack Corporation    58        34 (3)
                          (October 1998) and President, RadioShack
                          International Procurement (July 1990)

Evelyn V. Follit          Senior Vice President (May 1999) and Chief          54         4 (4)
                          Information Officer (July 1998), RadioShack
                          Corporation

Mark C. Hill              Senior Vice President (October 1998),               49         4 (5)
                          Corporate Secretary and General Counsel
                          (July 1997), RadioShack Corporation

Laura K. Moore            Senior Vice President - Public Relations and        39         2 (6)
                          Corporate Communications, RadioShack Corporation
                          (October 2000)

Francesca M. Spinelli     Senior Vice President - People, RadioShack          47         3 (7)
                          Corporation (December 1999)

Loren K. Jensen           Acting Chief Financial Officer (January 2001) and   40         5 (8)
                          Vice President-Finance (February 2000), RadioShack
                          Corporation


There are no family  relationships among the executive officers listed and there
are no  arrangements  or  understandings  pursuant  to  which  any of them  were
appointed  as  executive   officers.   All  executive   officers  of  RadioShack
Corporation  are  elected by the Board of  Directors  annually  to serve for the
ensuing  year,  or until their  successors  are  elected.  All of the  executive
officers listed above have served RadioShack in various capacities over the past
five years, except for Mr. Hill and Mmes. Follit, Moore and Spinelli.

(1)  Mr. Roberts  was elected  Chairman of the Board and Chief Executive Officer
     of RadioShack Corporation effective May 1999.  Mr. Roberts was President of
     RadioShack Corporation from December 1995 until December 2000 and President
     of the RadioShack division from July 1993 until December 2000.

(2)  Mr. Edmondson served as  Senior Vice President,  RadioShack Corporation and
     Executive Vice President  and  Chief Operating Officer  of  the  RadioShack
     division from October 1998 to December 2000, when he was  elected President
     and  Chief Operating Officer, RadioShack Corporation.  Mr. Edmondson served
     as  Senior Vice President  of  Marketing and Advertising,  RadioShack  from
     November 1995 to October 1998.

(3)  Mr. Christopher  served as  Executive  Vice  President  of  the  RadioShack
     division  from  January  1992  until  October  1998,  when  he was  elected
     Executive Vice President, RadioShack Corporation.  Mr. Christopher has also
     served  as  President of  RadioShack International Procurement  since  July
     1990.

(4)  Ms. Follit  served  as  Vice  President  and  Chief  Information   Officer,
     RadioShack Corporation  from  July  1998 to  May 1999, when she was elected
     Senior  Vice  President   and   Chief   Information   Officer,   RadioShack
     Corporation.   Ms. Follit  served  as  Vice President  of Human Capital for
     RadioShack Corporation from  October 1997 to  July 1998.   Prior to joining
     RadioShack Corporation, she was Vice President-Operations  and  Engineering
     for A.C. Nielsen Corporation  from  October 1996 to March 1997.  Ms. Follit
     held various  management positions at Dun & Bradstreet Corporation, ITT and
     IBM from 1970 to October 1996.

(5)  Mr. Hill served as Vice President, Corporate Secretary and General Counsel,
     RadioShack Corporation  from July 1997 to October 1998, when he was elected
     Senior Vice President,  RadioShack Corporation.   He  continues to serve as
     Corporate Secretary  and  General Counsel of the Company.  Prior to joining
     RadioShack,  Mr. Hill practiced law for 21 years and was a partner with the
     law firm of Haynes and Boone LLP for the last 13 of those years.

(6)  Ms. Moore  served as  Vice President - Corporate Communications and  Public
     Relations from November 1998  to  October 2000, when she was elected Senior
     Vice President - Public Relations  and  Corporate Communications.  Prior to
     joining  RadioShack Corporation, she was employed by Zale Corporation where
     she served as Vice President, Corporate Communications from 1995 to 1998.

(7)  Ms. Spinelli  served  as  Vice President - People,  RadioShack  Corporation
     from July 1998 to December 1999, when she was elected Senior Vice President
     - People, RadioShack Corporation.  Prior to joining RadioShack Corporation
     in 1998,  Ms. Spinelli served as Corporate Vice President of Organizational
     Development of Wal-Mart Stores, Inc. where she was employed approximately 5
     years.

(8)  Mr. Jensen  served as  Vice President and Treasurer, RadioShack Corporation
     from May 1995 to  February 2000,  when  he  was  elected  Vice  President -
     Finance.  In January 2001, he was appointed Acting Chief  Financial Officer
     upon  the  death  of  Dwain H. Hughes who served as Senior  Vice  President
     and  Chief  Financial  Officer  from  January  1995 to January 2001.  Prior
     to joining RadioShack Corporation in 1995, Mr. Jensen served as Senior Vice
     President of Texas Commerce Bank where he was employed for almost 10 years.



PART II

ITEM 5. MARKET  FOR  THE  REGISTRANT'S  COMMON  EQUITY  AND  RELATED STOCKHOLDER
        MATTERS.

PRICE RANGE OF COMMON STOCK  (Restated  for  two-for-one  stock split payable in
June 1999) The trading  symbol on the New York Stock  Exchange for the Company's
common  stock  was  changed  from  "TAN"  to  "RSH"   effective  May  31,  2000.
RadioShack's  common  stock is listed on the New York Stock  Exchange and trades
under the symbol "RSH".  The following  table  presents the high and low trading
prices for RadioShack's common stock, as reported in the composite  transactions
quotations of  consolidated  trading for issues on the New York Stock  Exchange,
for each quarter of the two years ended December 31, 2000.

                                                                  Dividends
Quarter Ended                High               Low               Declared
-------------              --------           --------            --------

December 31, 2000         $  72.94           $  39.34           $   0.055
September 30, 2000           69.75              45.56               0.055
June 30, 2000                59.50              38.25               0.055
March 31, 2000               57.25              35.06               0.055

December 31, 1999         $  79.50           $  41.38           $   0.055
September 30, 1999           56.75              37.38               0.050
June 30, 1999                51.00              30.09               0.050
March 31, 1999               32.06              20.59               0.050

HOLDERS OF RECORD
At March 21, 2001  there were  31,087  holders of record of  RadioShack's common
stock.

DIVIDENDS
The Board of Directors reviews RadioShack's dividend policy annually. On October
25, 1999,  RadioShack  announced a 10% increase in the  quarterly  cash dividend
from $0.050 per share to $0.055 per share for  shareholders of record on January
3, 2000.

ITEM 6. SELECTED FINANCIAL DATA.

SELECTED FINANCIAL DATA (UNAUDITED)
RADIOSHACK CORPORATION AND SUBSIDIARIES



                                                          Year Ended December 31,
(In millions, except per share          ------------------------------------------------------------
 amounts and ratios)                      2000         1999         1998(1)      1997        1996
====================================================================================================
                                                                             

Operations
Net sales and operating revenues        $4,794.7     $4,126.2     $4,787.9     $5,372.2     $6,285.5
                                        ========     ========     ========     ========     ========

Income (loss) before income taxes       $  593.6     $  480.5     $   99.7     $  303.9     $ (145.6)
Provision (benefit) for income taxes       225.6        182.6         38.4        117.0        (54.0)
                                        --------     --------     --------     --------     --------

Net income (loss)                       $  368.0     $  297.9     $   61.3     $  186.9     $  (91.6)
                                        ========     ========     ========     ========     ========

Net income (loss) available per
 common share:

    Basic                               $   1.94     $   1.51     $   0.28     $   0.84     $  (0.41)
                                        ========     ========     ========     ========     ========

    Diluted                             $   1.84     $   1.43     $   0.27     $   0.82     $  (0.41)
                                        ========     ========     ========     ========     ========

Shares used in computing earnings per
 common share:

    Basic                                  187.3        194.2        201.2        214.4        239.3
                                        ========     ========     ========     ========     ========

    Diluted                                197.7        205.0        211.4        224.5        239.3
                                        ========     ========     ========     ========     ========

Dividends declared per common share     $  0.220     $  0.205     $  0.200     $  0.200     $  0.200
                                        ========     ========     ========     ========     ========

Ratio of earnings to fixed charges(2)       5.69         5.51         1.84         3.52       N/A




SELECTED FINANCIAL DATA (UNAUDITED) Continued
RADIOSHACK CORPORATION AND SUBSIDIARIES



                                                          Year Ended December 31,
(In millions, except per            ---------------------------------------------------------------------
share amounts and ratios)              2000           1999           1998(1)       1997          1996
---------------------------------------------------------------------------------------------------------
                                                                               
Financial Position
Inventories                         $  1,164.3     $    861.4     $    912.1    $  1,205.2    $  1,420.5
Total assets                        $  2,576.5     $  2,142.0     $  1,993.6    $  2,317.5    $  2,583.4
Working capital                     $    585.8     $    478.1     $    419.1    $    739.1    $    746.3
Current ratio                        1.48 to 1      1.52 to 1      1.48 to 1     1.76 to 1     1.63 to 1
Capital structure:
Current debt (3)                    $    478.6     $    188.9     $    233.2    $    299.5    $    258.0
Long-term debt (3)                  $    302.9     $    319.4     $    235.1    $    236.1    $    104.3
Total debt                          $    781.5     $    508.3     $    468.3    $    535.6    $    362.3
Total debt, net of cash and
  cash equivalents                  $    650.8     $    343.7     $    403.8    $    429.7    $    240.8
Stockholders' equity                $    880.3     $    830.7     $    848.2    $  1,058.6    $  1,264.8
Total capitalization                $  1,661.8     $  1,339.0     $  1,316.5    $  1,594.2    $  1,627.1
Long-term debt as a % of
  total capitalization                   18.2%          23.9%          17.9%         14.8%          6.4%
Total debt as a % of total
  capitalization (4)                     47.0%          38.0%          35.6%         33.6%         22.3%
Stockholders' equity per
  common share                      $     4.43     $     4.07     $     4.13    $     4.98    $     5.37

Financial Ratios
Return on average
  stockholders' equity                   43.0%          35.5%(5)        6.4%(6)      16.1%           N/A(7)
Percent of sales:
  Income (loss) before income taxes      12.4%          11.7%           2.1%          5.7%        (2.3)%
  Net income (loss)                       7.7%           7.2%           1.3%          3.5%        (1.5)%

This table  should  be  read in  conjunction  with  Management's  Discussion and
Analysis of Financial Condition and  Results of Operations  and the Consolidated
Financial Statements and Notes thereto.

(1)  Includes operations of  Computer City, Inc.  for  only eight months, due to
     the sale to CompUSA Inc. on August 31, 1998.
(2)  Earnings  used in computing the ratio of  earnings to fixed charges consist
     of  pre-tax  earnings  and fixed charges.  Fixed  charges  are  defined  as
     interest expense related to debt, amortization expense  related to deferred
     financing costs and a portion of rental charges.  Pre-tax earnings were not
     sufficient  to  cover  fixed  charges  during  1996 by approximately $145.6
     million.  Excluding $230.3  million  (net of taxes)  in  restructuring  and
     other charges, the 1996 ratio of earnings to fixed charges  would have been
     2.57.
(3)  Includes current portion of capital leases and TESOP indebtedness.
(4)  Total debt includes capital leases and TESOP indebtedness.   Capitalization
     is defined as total debt plus total stockholders' equity.
(5)  Excluding  a  $5.9 million  (net of taxes)  provision related to restricted
     stock awards in 1999,  return on  average  stockholders'  equity would have
     been 33.1%.
(6)  Excluding  $183.9  million  (net  of  taxes)  for  provisions  related   to
     restricted  stock  awards  and loss  on sale of  Computer City,  as well as
     Computer  City  operating  losses  and  other  business writedowns in 1998,
     return on average stockholders' equity would have been 23.6%.
(7)  Excluding  $230.3 million (net of taxes) in restructuring and other charges
     in 1996, return on average stockholders' equity would have been 8.9%.




ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND  RESULTS
        OF OPERATIONS ("MD&A").

FACTORS THAT MAY AFFECT FUTURE RESULTS
With the  exception of  historical  information,  the matters  discussed in MD&A
contain forward-looking  statements that involve various risks and uncertainties
and are indicated by words such as "anticipates," "expects," "believes," "will,"
"should,"  "could,"  and similar  words and  phrases.  Factors  that could cause
RadioShack  Corporation's  ("RadioShack"  or the  "Company")  actual  results to
differ  materially  from  management's  projections,  forecasts,  estimates  and
expectations include, but are not limited to, the following:

o   changes in the amount and degree of promotional intensity exerted by current
    competitors  and  potential  new  competition  from both  retail  stores and
    alternative  methods  or  channels  of  distribution,  such  as  e-commerce,
    telephone shopping services and mail order;
o   the  inability to successfully implement and execute RadioShack's  strategic
    initiatives, including the development  of its  new strategic business units
    ("SBUs") and emerging sales channels, as well as new  alliances which may be
    formed with other retailers,  such as Blockbuster Inc.  ("Blockbuster")  and
    third party service providers;
o   changes in general U.S.  or regional U.S. economic conditions including, but
    not  limited  to,  consumer  credit availability, interest rates, inflation,
    personal discretionary spending levels and consumer sentiment and confidence
    about the economy in general;
o   the inability to  successfully market and execute the www.RadioShack.com(SM)
    website  and its  coordination  with   RadioShack  retail  outlets  and  the
    Company's other existing and/or emerging sales channels;
o   the  presence or absence of new services or products and product features in
    the  merchandise  categories  RadioShack  sells  and  unexpected  changes in
    RadioShack's actual merchandise sales mix;
o   the  inability to  maintain  profitable  contracts or execute business plans
    with service providers  relating to  cellular and PCS telephones, direct-to-
    home  ("DTH")  satellite  programming,   Internet   access  and   high-speed
    bandwidth;
o   the  inability to collect the level of anticipated residual income, consumer
    acquisition fees and rebates for products and third  party  services offered
    by RadioShack;
o   the inability  to  successfully implement and execute RadioShack's strategic
    alliances with Microsoft  Corporation ("Microsoft"), Cellco Partnership (dba
    Verizon Wireless), At Home Corporation (Excite@Home) and/or Blockbuster;
o   the inability  of the  Company  to  fully  recover  investments  made in the
    securities of other companies;
o   lack of  availability  or access to  sources of supply inventory (as a large
    importer  of  consumer  electronic  products  from  Asia,  unfavorable trade
    imbalances could negatively affect RadioShack);
o   the inability to  retain and  grow an effective management team in a dynamic
    environment or changes in  the cost or availability of a suitable work force
    to manage and support RadioShack's service-driven operating strategies;
o   the  imposition  of new  restrictions or  regulations  regarding the sale of
    products  and/or  services  RadioShack  sells or  changes  in tax  rules and
    regulations applicable to RadioShack;
o   the  adoption  rate  and  market  demand for high-speed  Internet  and other
    Internet-related services; or
o   the  occurrence  of  severe  weather  events  which prohibit  consumers from
    travelling to the Company's retail locations,  especially  during  the  peak
    Christmas season.

Both the United States  retail  industry and the  specialty  retail  industry in
particular are dynamic by nature and have undergone significant changes over the
past several years.  RadioShack's ability to anticipate and successfully respond
to continuing challenges is key to achieving its expectations.

STOCK SPLIT
On May 25, 1999, RadioShack's Board of Directors declared a two-for-one split of
RadioShack common stock,  payable on June 21, 1999. All references to the number
of  shares  (other  than  common  stock  issued or  outstanding  for 1998 on the
accompanying Consolidated Statement of Stockholders' Equity), per share amounts,
cash dividends and any other reference to shares,  unless otherwise noted,  have
been adjusted to reflect the split on a retroactive  basis.  Previously  awarded
stock  options,  restricted  stock  awards and all other  agreements  payable in
RadioShack's  common  stock have also been  adjusted  or amended to reflect  the
split.

RETAIL OUTLETS
                             Average                  December 31,
                            Store Size      -----------------------------------
                            (Sq. Ft.)        2000         1999           1998
-------------------------------------------------------------------------------
  Company-Owned               2,300          5,109        5,087          5,039
  Dealer/Franchise             N/A           2,090        2,099          1,991
                                            -------      -------        -------
                                             7,199        7,186          7,030
                                            =======      =======        =======


Space Owned and Leased


                                            Approximate Square Footage
                                                  at December 31,
                         ---------------------------------------------------------------
                                      2000                              1999
                         -----------------------------     -----------------------------
(In thousands)            Owned      Leased      Total      Owned      Leased      Total
----------------------------------------------------------------------------------------
                                                                
Retail
RadioShack                   --      12,113     12,113         --      11,990     11,990
Other                       102          --        102        162          --        162
                         ------      ------     ------     ------      ------     ------
                            102      12,113     12,215        162      11,990     12,152
Support Operations
Manufacturing               502         201        703        505         201        706
Distribution centers
 and office space         3,659       1,532      5,191      3,496       1,512      5,008
                         ------      ------     ------     ------      ------     ------
                          4,263      13,846     18,109      4,163      13,703     17,866
                         ======      ======     ======     ======      ======     ======


RESULTS OF OPERATIONS

2000 COMPARED WITH 1999
-----------------------

NET SALES AND OPERATING REVENUES

RadioShack's  overall  sales  increased  16.2% to $4,794.7  million in 2000 from
$4,126.2  million in 1999,  due  primarily to a 10.9%  comparable  company-owned
store  sales  gain and the  opening  of 22 new  stores,  net of store  closures.
Additionally,  sales to RadioShack's dealer/franchise outlets experienced strong
growth throughout the year. RadioShack's comparable store sales increase was due
primarily to increased sales of  communications  products and sales of audio and
video  equipment,  which  includes DTH satellite  systems and services.  Despite
weakening in the retail sector,  RadioShack  expects a positive store sales gain
for 2001. The following table summarizes  RadioShack's retail sales breakdown by
category as a percent of total RadioShack retail sales (excluding  outside sales
from retail support operations):



                                           Percent of RadioShack Retail Sales
                                                  Year Ended December 31,
                                    ----------------------------------------------
                                     2000      1999      1998      1997      1996
                                    ------    ------    ------    ------    ------
                                                             
Communications                       27.9%     29.3%     28.5%     27.5%     24.4%
Electronic parts, accessories
 and specialty equipment             24.8      27.2      30.0      31.5      32.3
Audio and video                      22.5      17.1      15.5      16.8      18.0
Personal electronics and seasonal     8.6       9.4      10.4      11.6      12.4
Personal computers and peripherals    8.7       8.7       9.1       9.4      10.4
Services and other                    7.5       8.3       6.5       3.2       2.5
                                    ------    ------    ------    ------    ------
                                    100.0%    100.0%    100.0%    100.0%    100.0%
                                    ======    ======    ======    ======    ======



The communications  category includes wireless  communications  such as cellular
and PCS  telephones,  as well as  residential  telephones,  answering  machines,
pagers  and  other  related  telephony  products.  The  communications  category
increased 10% in dollars, but decreased as a percentage of total retail sales to
27.9% in 2000, from 29.3% in 1999.  This category  decrease was due to the audio
and video  category  becoming a larger  percentage of total retail  sales.  Unit
sales of PCS and cellular  telephones  increased  23% over the prior year to 4.1
million  units.  Unit and dollar sales of both PCS and cellular  telephones  are
expected to continue to increase in 2001.

Sales of electronic parts,  accessories and specialty  equipment  decreased as a
percentage  of total  retail sales in 2000 when  compared to 1999,  despite a 5%
sales gain.  The  category was 24.8% of  RadioShack's  retail sales mix in 2000,
down from 27.2% in 1999,  primarily due to the audio and video category becoming
a higher  percent of the  product  mix in 2000.  This  category  is  expected to
increase in sales, but decrease as a percentage of RadioShack's retail sales mix
in 2001.

Sales in the audio and video category increased  approximately 47% in 2000, when
compared  to 1999,  due  primarily  to the June 2000  launch of The RCA  Digital
Entertainment  Center at RadioShack and a significant  increase in DTH satellite
system and services sales. In addition,  the audio and video category  increased
from  17.1% of the  retail  sales  mix in 1999 to 22.5% in 2000.  This  category
includes  televisions,  VCRs,  camcorders,  digital  video disc  (DVD)  players,
digital cameras, CD shelf systems and other digital  entertainment  products, in
addition to DTH satellite  systems and services.  Management  believes the audio
and video category will continue to increase in dollar sales and as a percent of
RadioShack's total retail sales in 2001.

Personal  electronics  and seasonal  products  decreased to 8.6% of RadioShack's
retail sales mix in 2000 from 9.4% in 1999, due primarily to an overall shift in
the product mix described above.  This category  experienced a 5% sales increase
over the prior year as a result of increased sales of giftable items, electronic
gadgets and remote control cars.

Sales of personal  computers and peripherals  were 8.7% of  RadioShack's  retail
sales in both 2000 and 1999. This category had a 12% unit sales gain in CPUs and
had a 15% dollar  sales gain for the year.  The  average  selling  price of CPUs
decreased 6%, in line with the general market decline. The average selling price
of CPUs and monitors, for the industry in general as well as for RadioShack,  is
expected to decrease slightly in 2001.  Despite this downward trend,  management
believes  that  the  higher  unit  sales  volumes  of  personal   computers  and
peripherals,  as well as anticipated  increased sales of handheld  computers and
Internet  appliances,  will contribute to increased  sales of this category.  In
addition,  increases in sales in the personal computer and peripherals  category
should  strengthen  sales of higher gross margin products and services,  such as
accessories and extended service contracts.

Sales in the services and other category,  which includes  residual  income,  as
well as income from  prepaid  wireless  airtime,  repair  services  and extended
service  contracts,  increased  approximately 7% in dollars,  but decreased as a
percent  of  RadioShack  retail  sales to 7.5% in 2000  from  8.3% in 1999.  The
increase in sales was primarily due to an increase in residual  income  received
from RadioShack's third party providers of wireless communications,  offset by a
decrease in sales of prepaid wireless  airtime.  Sales in the services and other
category also decreased due to the reclassification of RadioShack.com sales from
this category  to the appropriate product categories in 2000. Residual income is
also  earned on sales of Sprint  long  distance  and paging  services.  Residual
income varies by third party service provider, but is typically a portion of the
continuing  service  revenue  paid  by  the  consumer  to the  service  provider
throughout the ensuing months and/or years of that consumer's  subscription.  In
2000,  RadioShack  earned  approximately  $104.0  million  of  residual  income,
compared to $63.0  million in 1999.  At year end,  the Company  earned  residual
income on  approximately  6.1 million  service  provider  subscribers.  Residual
income is expected to continue  to  increase  in 2001;  however,  increases  are
dependent upon such factors as continued usage of certain services and stability
of average revenue per subscriber, among other factors.

Think Growth Initiative:  In December 2000,  RadioShack  announced its new Think
Growth initiative. This initiative is designed to generate incremental sales and
profit  opportunities  beyond the Company's existing category and customer base.
Three Strategic Business Units were formed to better align the organization with
its  business  strategy  of  demystifying  technology  for the mass  market and,
ultimately,  to become America's  Connectivity  Solution.  The three SBUs formed
were The  Connecting  People SBU, The  Connecting  Places SBU and The Connecting
Things SBU.

The Connecting  Things SBU will focus on RadioShack's  core product offerings of
parts and accessories,  seasonal products including toys,  personal  electronics
and  batteries,  in  addition  to parts and  components  offered  to  commercial
customers.  In light of  increased  sales of  giftable  items  and an  increased
business to business  customer focus through  RadioShack's  online  presence and
planned direct marketing efforts,  along with the advent of digital  convergence
which requires additional  accessories,  management  anticipates  enhanced sales
growth for these highly profitable products.

The Connecting People SBU will concentrate on communications  products and third
party services which not only include current  offerings,  but also capture such
emerging  technologies as combining wireless products and the Internet,  as well
as  high-speed  video  phones.  The  various  products  included in this SBU are
telephone and telephone accessories, wireless phones and accessories, pagers and
other related services,  as well as radio communications  devices. The Company's
strategic allies for the Connecting People SBU include both Sprint and Verizon.

The  Connecting  Places SBU's focus will include  personal  computers,  Internet
appliances,  hand-held  computer devices and related  products,  audio and video
products and services, including DTH satellite systems and services and  dial-up
and broadband Internet access,  among others.  Many of the products and services
in this SBU are aimed at providing  customer  solutions  for  connecting  to and
utilizing high-speed bandwidth.  Bandwidth refers to volume at which data can be
transmitted and, depending on the volume delivered, may enable consumers to have
such capabilities as instant and/or high-speed Internet access, movies on demand
and multiple  phone/fax  connections  through a single phone or cable line. This
SBU  utilizes  the  Company's   strategic   alliances   with  Compaq,   DIRECTV,
Excite@Home,  Microsoft  and Thomson to offer  convenience,  service and product
specialties.

Each  SBU is  designed  to find  more  efficient  and  convenient  ways to serve
RadioShack  sales channels.  In addition to its 5,100  company-owned  stores and
2,100  dealer/franchise  outlets,   RadioShack's  existing  and  emerging  sales
channels include the www.RadioShack.com  website and catalog operations, as well
as a sophisticated outbound and inbound telephone call center.

In terms of its online  presence,  the Company's  clicks and mortar  strategy is
designed  to  not  only  draw  repeat  traffic  to  its  website,  but  also  to
RadioShack's retail stores.  RadioShack.com derives a significant portion of its
revenue  from  sales  to  businesses,   government   agencies  and   educational
institutions.  These commercial  customers may order product via the web, phone,
mail or fax with no minimum order required. In 2001, RadioShack plans to further
enhance its sales to  commercial  customers  via direct  mail and  telemarketing
efforts.

On February 27, 2001,  RadioShack  announced an alliance  with  Blockbuster,  to
introduce  a  RadioShack   "store-within-a-store"   concept  within  Blockbuster
locations. The size of the RadioShack merchandising areas will vary depending on
the size of the participating  Blockbuster  store, but may range from 600-square
foot sections to smaller kiosks.  A wide selection of RadioShack's  most popular
product and service offerings will be featured;  however, specific inventory for
the stores will be  determined as the program  moves  forward.  The initial test
phase  calls for 130  select  Blockbuster  stores  in four  markets  to  contain
"store-within-a-store"  fixtures  by  summer  2001.  If the  test  phase  proves
successful and the alliance goes forward, management believes that this alliance
could  provide  access  to  complementary  demographics,   as  well  as   expand
RadioShack's current outlet base.

GROSS PROFIT

Gross  profit  for  RadioShack  was  $2,369.6  million or 49.4% of net sales and
operating  revenues,  compared with  $2,083.5  million or 50.5% of net sales and
operating revenues in 1999. This gross profit percentage  decrease was partially
due to a shift within RadioShack's product offerings to increased sales of third
party branded audio and video products,  primarily DTH satellite systems,  which
have a lower gross margin than RadioShack overall. To a lesser degree, the gross
profit percentage decrease was due to a decrease in the wireless  communications
gross  margin.   The  decrease  was  further  impacted  by  increased  sales  to
dealer/franchise  stores,  which have a lower gross margin percentage than sales
to retail  customers.  This  decrease  was  partially  offset by an  increase in
residual income,  which has 100% gross margin,  as well as by an increase in the
gross profit percentages for both the personal computer and peripherals category
and  the  parts,  accessories  and  specialty  equipment  category.   Management
anticipates  that  gross  profit as a  percentage  of net  sales  and  operating
revenues  could  continue to decrease  during 2001,  when  compared to 2000.  An
expected increase in residual income should partially offset this decrease.

SELLING, GENERAL AND ADMINISTRATIVE EXPENSE

The table below  summarizes the breakdown of various  components of RadioShack's
consolidated  selling,  general  and  administrative  ("SG&A")  expense  and its
related percentage of total sales and operating revenues.



                                                    Year Ended December 31,
                             ---------------------------------------------------------------------
                                     2000                   1999                      1998
                             ---------------------  ----------------------  ----------------------
                                         % of                    % of                     % of
                                        Sales &                 Sales &                  Sales &
(In millions)                Dollars   Revenues      Dollars   Revenues     Dollars(2)  Revenues
--------------------------------------------------  ----------------------  ----------------------
                                                                         
Payroll and commissions      $  836.2     17.4%     $  741.8(1)   18.0%     $  734.1(1)    15.3%
Rent                            215.2      4.5         205.5       5.0         217.4        4.5
Advertising                     227.1      4.7         199.9       4.8         208.7        4.4
Other taxes                      98.6      2.1          91.2       2.2          96.1        2.0
Utilities and telephone          69.4      1.4          62.2       1.5          71.5        1.5
Insurance                        56.4      1.2          47.6       1.2          50.6        1.1
Credit card fees                 31.7      0.7          27.5       0.7          38.6        0.8
Stock purchase
 and savings plans               22.8      0.5          21.0       0.5          20.4        0.4
Other                            76.2      1.6          89.7       2.1         142.9        3.0
                             ---------------------  ----------------------  ----------------------

                             $1,633.6     34.1%     $1,486.4      36.0%     $1,580.3       33.0%
                             =====================  ======================  ======================

(1)  Excludes  compensation  expense for restricted stock awards of $9.6 million
     and $82.6 million relating to 1999 and 1998, respectively.
(2)  Includes  expenses  related to Computer City, Inc. ("Computer City") before
     its sale to CompUSA Inc.("CompUSA") on August 31, 1998.


RadioShack's SG&A expense increased 9.9% in dollars,  but decreased as a percent
of net sales and  operating  revenues to 34.1% for the year ended  December  31,
2000 from 36.0% for the year ended December 31, 1999. This 1.9 percentage  point
decrease  in the SG&A  percentage  in 2000 was due  primarily  to the  favorable
effect of increased sales at RadioShack during 2000.

Payroll  expense for RadioShack  increased by $94.4 million to $836.2 million in
2000, but decreased as a percent of net sales and operating revenues to 17.4% in
2000,  compared to 18.0% in 1999.  This dollar  increase  was due  primarily  to
RadioShack  retail store  expansions  and increases in  personnel,  commissions,
bonuses and other incentives resulting from RadioShack's strong comparable store
sales and profits.

Rent  expense for the  Company  increased  in dollars by $9.7  million to $215.2
million  in 2000,  but  decreased  as a percent  of  RadioShack's  net sales and
operating  revenues to 4.5% in 2000 from 5.0% in 1999. The rent increase was due
primarily to 22 new RadioShack store openings, net of store closures, throughout
the year, as well as lease renewals at slightly higher rates. The 0.5 percentage
point decrease was due primarily to the favorable effect of increased comparable
RadioShack stores sales on the expense rate structure.

Advertising  expense for  RadioShack  increased  $27.2  million in dollars,  but
decreased as a percentage of  RadioShack's  net sales and operating  revenues to
$227.1 million and 4.7% of sales in 2000, compared to $199.9 million and 4.8% of
sales in 1999.  The dollar  increase was due primarily to a shift in advertising
from print to television advertising.  In addition, the decrease as a percentage
of sales  and  operating  revenues  reflects  the  sales  leverage  gained  from
RadioShack's sales increase.

In 2001,  RadioShack's  SG&A  expense is  expected to increase in dollars due to
additional  sales volume and normal  inflation,  but decrease as a percentage of
net sales and operating  revenues.  This  decreased  percentage of net sales and
operating  revenue is expected as a result of increased  sales  leverage  gained
from anticipated  comparable  store sales increases and, to a lesser extent,  an
increase in new store openings.

NET INTEREST EXPENSE

Interest  expense,  net of interest  income,  was $36.1  million for 2000 versus
$16.8 million for 1999.

Interest expense increased to $53.9 million in 2000, from $37.2 million in 1999.
This increase was primarily  the result of an increase in  RadioShack's  average
debt  outstanding  throughout  2000, due to share  repurchases and the Company's
investment in inventory,  as well as to an increase in short-term interest rates
when compared to the prior year.  Interest income  decreased almost 13% to $17.8
million in 2000 from $20.4  million  in 1999,  due  primarily  to  repayment  of
various notes  receivable  associated  with the Company's  liquidation  of other
retail formats.

Interest  expense,  net of interest  income,  is  expected to decrease  slightly
during 2001, primarily due to an anticipated decrease in short-term debt levels.

PROVISION FOR INCOME TAXES

The provision for income taxes  reflects an effective tax rate of 38.0% for both
2000 and 1999.

1999 COMPARED WITH 1998
-----------------------

NET SALES AND OPERATING REVENUES

Consolidated  net sales and  operating  revenues  decreased  13.8% from $4,787.9
million in 1998 to $4,126.2  million in 1999;  this  decrease  was  attributable
primarily  to the  sale  of  Computer  City  to  CompUSA  on  August  31,  1998.
Consolidated  comparable  store sales for 1999 are not  meaningful,  due to this
sale. Prior to 1999, the Company operated two segments,  RadioShack and Computer
City.

RadioShack Segment
------------------

Sales for the RadioShack  segment in 1999 increased 14.9% from $3,591.2  million
in 1998 to $4,126.2  million in 1999; this increase was due primarily to a 12.2%
comparable  company-owned store sales gain and the opening of 48 new stores, net
of store  closures.  RadioShack's  comparable  store sales  increase  was driven
primarily  by  increased  sales of  communications  products,  prepaid  wireless
airtime and sales of audio and video equipment,  including DTH satellite systems
and services.  The  communications  category,  the largest  product  category of
RadioShack's retail sales mix in 1999, increased as a percentage of total retail
sales in 1999, primarily due to a 50% increase in unit sales of PCS and cellular
telephones.  Sales of electronic  parts,  accessories  and  specialty  equipment
decreased  2.8  percentage  points of total retail  sales in 1999,  despite a 4%
sales gain. Personal  electronics and seasonal products decreased 1.0 percentage
point of RadioShack's retail sales mix in 1999. Both of these product categories
decreased  as  a  percent  of  total  retail   sales,   due   primarily  to  the
communications  category and the services and other  category  becoming a higher
percent of the product mix in 1999. The audio and video  category  experienced a
sales  increase of  approximately  27% during  1999,  due  primarily to a strong
increase  in sales of DTH  satellite  systems  and  services.  Sales of personal
computers  and  peripherals  were  8.7% of  RadioShack's  retail  sales in 1999,
compared to 9.1% in 1998, despite a large unit gain and a 10% sales gain for the
year. The average  selling price of CPUs decreased 16% in 1999, in line with the
general market  decline.  Sales in the services and other category  increased in
1999 in dollars and as a percent of RadioShack  retail sales, due to an increase
in sales of prepaid  wireless  airtime,  as well as to an  increase  in residual
income received from RadioShack's  third party providers of  communications  and
DTH satellite  programming  services.  In 1999,  RadioShack earned approximately
$63.0 million of residual income, compared to $34.2 million in 1998.

Computer City Segment
---------------------

Computer City was sold to CompUSA effective August 31, 1998.

GROSS PROFIT

Gross profit for RadioShack Corporation in 1999 was $2,083.5 million or 50.5% of
net sales and operating revenues, compared with $2,004.4 million or 41.9% of net
sales  and  operating  revenues  in 1998.  This  increase  in gross  profit as a
percentage  of net sales and  operating  revenues  was  primarily  the result of
RadioShack retail sales constituting all of the Company's consolidated net sales
and operating revenues in 1999, when compared to 1998. Computer City was sold to
CompUSA on August 31, 1998.  Computer City had an inherently  lower gross margin
percentage than consolidated RadioShack Corporation.

The RadioShack segment's gross profit increased 11.4% in dollars for 1999 versus
1998,  but  decreased  as a  percentage  of  RadioShack's  total  sales  by  1.6
percentage  points  for  the  same  period.  This  percentage  decrease  was due
primarily to mix shifts within RadioShack's  product offerings as sales of lower
margin  categories  increased  as a portion of the  overall  sales  volume.  The
decrease in gross margin was partially offset by an increase in residual income,
which has 100% gross margin.

SELLING, GENERAL AND ADMINISTRATIVE EXPENSE

RadioShack  Corporation's 1999 SG&A expense decreased  slightly in dollars,  but
increased as a percent of net sales and operating revenues to 36.0% versus 33.0%
in 1998. The higher SG&A  percentage in 1999 was due to RadioShack  becoming the
only operating unit in 1999 (see "Gross Profit" above).  The RadioShack  segment
operated at a higher  relative  SG&A expense  level than the Company as whole in
1998. Excluding Computer City and other closed units, the Company's SG&A expense
as a percentage of sales would have approximated 37.7% in 1998.

Despite  the sale of  Computer  City in 1998,  payroll  expense  for the Company
increased  in dollars  and as a percent of net sales and  operating  revenues to
18.0% in 1999 from 15.3% in 1998.  This increase was due primarily to RadioShack
retail  store  expansions,  changes  in  compensation  plans  and  increases  in
personnel, commissions, bonuses and other incentives resulting from RadioShack's
strong  comparable  store  sales  and  profits.   Rent  expense  for  RadioShack
Corporation  decreased in dollars in  comparison  with 1998,  but increased as a
percent of net sales and  operating  revenues to 5.0% in 1999 from 4.5% in 1998.
This increase was due to the sale of Computer City, which had lower rent expense
as a  percentage  of sales than the  Company as a whole.  Rent  expense  for the
RadioShack  segment  increased in dollars in 1999, but decreased as a percent of
sales.  Advertising expense for consolidated RadioShack Corporation decreased in
dollars, but increased as a percent of net sales and operating revenues in 1999,
when compared to 1998, due to the sale of Computer City. There was also a dollar
decrease in advertising  expense for the  RadioShack  segment in 1999 from 1998.
The dollar  decrease  resulted from an increase in marketing  development  funds
received from third party service providers.

RESTRICTED STOCK AWARDS

On  February  1, 1998,  RadioShack  Corporation  granted  approximately  649,500
restricted stock awards  consisting of 500 shares each to 1,299 RadioShack store
managers  not  included in the  February 1, 1997  restricted  stock  grant.  The
February 1998 restricted  stock awards had a weighted  average fair market value
of $19.61 per share when  granted.  This  restricted  stock grant was to vest on
February 2, 2003, if managers  receiving the grants were employed by the Company
at a store  manager  or higher  position,  at that  time.  However,  the  grants
provided that the restricted  shares would vest early if RadioShack common stock
closed  at  $29.0625  or more  for any 20  consecutive  trading  days  beginning
February 1, 2000. At December 31, 1999, it was probable that the 348,000  shares
that  remained  outstanding  under this grant would vest under the early vesting
provisions.  The  resulting  charge to  compensation  expense of $14.7  million,
including related payroll taxes, was recorded in the fourth quarter of 1999.

Vesting of these  restricted  stock awards  occurred on February 29, 2000,  when
RadioShack's  common stock closed  above the targeted  amount for the  twentieth
consecutive  trading day.  Vesting resulted in the issuance of 336,000 shares of
RadioShack's common stock at a fair market value of $37.53 per share.

In the  fourth  quarter  of  1998,  RadioShack  Corporation  recorded  estimated
compensation expense of $82.6 million related to the early vesting of restricted
stock awards that had been granted to 4,907 store  managers on February 1, 1997.
These  awards  vested on March 1, 1999 and the actual price of the stock and the
number of shares  vested  differed  from the  estimated  accrual at December 31,
1998. The amount of this difference,  $5.1 million,  was recorded as a credit to
expense in the first quarter of 1999.

NET INTEREST EXPENSE

Interest  expense,  net of interest  income,  was $16.8  million for 1999 versus
$34.6  million  for  1998.  Interest  expense  decreased  18.1% in 1999,  due to
RadioShack no longer having to incur  interest  expense on Computer City capital
lease  obligations,  as well as to a  corresponding  decrease  in the  Company's
average debt outstanding during 1999.

Interest income increased almost 90% to $20.4 million in 1999 from $10.8 million
in 1998,  due  primarily  to  interest  from the  $136.0  million  CompUSA  note
receivable which was outstanding for a full year.

PROVISION FOR INCOME TAXES

The provision for income taxes  reflects an effective tax rate of 38.0% for 1999
compared  with 38.5% for 1998.  The  decrease in 1999  resulted  primarily  from
improved  utilization of foreign tax credits and implementation of certain state
income tax initiatives.

IMPACT OF RECENT ACCOUNTING PRONOUNCEMENTS
In June 1998,  the  Financial  Accounting  Standards  Board issued SFAS No. 133,
"Accounting  for Derivative  Instruments and Hedging  Activities"  ("SFAS 133"),
which establishes accounting and reporting standards for derivative instruments,
including certain derivative  instruments  embedded in other contracts,  and for
hedging activities.  RadioShack uses derivatives only in limited  circumstances.
The Company  adopted SFAS 133  effective  January 1, 2001 and the impact was not
material.

CASH FLOW AND LIQUIDITY

                                   Year Ended December 31,
                              --------------------------------
(In millions)                   2000        1999        1998
                              --------    --------    --------
Operating activities          $ 116.5     $ 561.6     $ 414.8
Investing activities            (34.0)     (121.0)      (93.0)
Financing activities           (116.4)     (340.5)     (363.2)

In 2000, cash flow provided by operating activities was $116.5 million, compared
to $561.6 million and $414.8 million in 1999 and 1998,  respectively.  Cash flow
from net income,  adjusted for non-cash items, increased $63.4 million from 1999
to 2000.  This  increase  was  primarily  due to increased  operating  profit at
RadioShack.  The decrease in cash flow from operating  activities was the result
of a  $508.5  million  use of  cash by  working  capital  components.  Inventory
increased  $302.9  million over the prior year period,  reflecting  an increased
level of  inventory  required by higher  sales  levels and  increased  inventory
levels  of  wireless  phones,  DTH  satellite  systems,   and  landline  phones.
Additionally,  an increase of $149.0  million in accounts  receivable  consisted
primarily  of  amounts  due from  RadioShack's  strategic  allies in the form of
consumer acquisition fees, marketing support and rebate programs.

Investing  activities  used $34.0  million in cash in 2000,  compared  to $121.0
million  and  $93.0  million  used  in  1999  and  1998,  respectively.  Capital
expenditures  approximated $119.6 million in 2000, compared to $102.4 million in
1999  and  $131.5  million  in 1998.  Capital  expenditures  for 2000  consisted
primarily of RadioShack  store  expansions and remodels,  costs related to a new
distribution  facility,  upgrades of  information  systems,  and the purchase of
vehicles for the RadioShack Installation Services division. Capital expenditures
for 1999 and 1998  were  used  primarily  for  retail  expansion  and  upgrading
information   systems,   including  Year  2000  (Y2K)  initiatives.   Management
anticipates that the capital  expenditure  requirement for 2001 will approximate
$130.0 million to $135.0 million.  These  expenditures  will primarily relate to
RadioShack  future store expansions and remodels,  updated  information  systems
and, to a lesser extent,  upgrades  relating to  RadioShack's  distribution  and
manufacturing facilities. On January 4, 2000, RadioShack received $100.0 million
in  cash  from   Microsoft,   which   related  to   Microsoft's   investment  in
RadioShack.com,  LLC,  a limited  liability  company  formed by  RadioShack  and
Microsoft for the purpose of marketing and selling  electronics  products on the
Internet.  In June 2000,  RadioShack  made a $30.0 million dollar  investment in
Digital:Convergence  Corporation,   an Internet technology company. In addition,
the Company  generated $17.9 million in cash during 2000 from the sale of equity
securities.

Cash used by financing activities was $116.4 million in 2000, compared to $340.5
million and $363.2 million in 1999 and 1998, respectively. Purchases of treasury
stock  required cash of $400.6  million,  $422.2  million and $337.4  million in
2000,  1999 and  1998,  respectively.  (See  "Capital  Structure  and  Financial
Condition"  below for  further  information  on  RadioShack's  stock  repurchase
programs.) The 2000, 1999 and 1998 stock  repurchases  were partially  funded by
$66.3 million, $81.5 million and $57.8 million, respectively,  received from the
sale of treasury stock to employee stock plans and from stock option  exercises.
Dividends  paid,  net of tax, in 2000,  1999 and 1998 amounted to $44.7 million,
$42.5 million and $44.8 million, respectively. The increase in dividends paid in
2000  resulted  from an increase in the per share  dividend.  Medium-term  notes
issued by RadioShack provided  approximately $101.6 million and $45.7 million in
cash in 1999 and 1998,  respectively,  the  majority  of which was used to repay
current  maturities of long-term  debt. In 2000, the increase in short-term debt
was used primarily to fund increases in accounts  receivable,  share repurchases
and additional inventory.  In 1999, RadioShack used excess cash flow to decrease
its short-term debt from the prior year by $42.3 million.

The  current  credit  ratings for  RadioShack,  which are  generally  considered
investment grade, follow:

                                                  Standard
       Category                     Moody's      and Poor's       Fitch
       --------                     -------      ----------       -----
       Medium-Term Notes             Baa1            A-             A
       ESOP Senior Notes             Baa1            A-             A
       Commercial Paper              P-2             A-2            F1

CAPITAL STRUCTURE AND FINANCIAL CONDITION
RadioShack's available borrowing facilities as of December 31, 2000 are detailed
in Note 6 - "Indebtedness and Borrowing Facilities" of the Notes.

On December  14, 2000,  RadioShack  announced  that its Board of  Directors  had
authorized  management to purchase up to 10.0 million  additional  shares of its
common  stock  with a new  share  repurchase  program,  upon  completion  of its
existing  60.0 million share  program in December  2000.  The new program has no
expiration  date.  During 2000, 3.4 million shares were  repurchased  for $167.4
million under both programs, including 0.1 million shares for $6.6 million under
the new 10.0  million  share  program.  An  additional  0.2 million  shares were
repurchased for $9.5 million from January 1, 2001 to March 19, 2001.

Additionally,  on  October  26,  1998,  RadioShack  announced  that its Board of
Directors  had  authorized  the  repurchase  of up to  10.0  million  shares  of
RadioShack's  common stock for an indefinite period of time to be used to offset
the dilution of grants under  RadioShack's  incentive stock plans (see Note 13 -
"Stock Options and Performance Awards" of the Notes).  Approximately 3.0 million
shares were  repurchased  in 2000 for $144.4  million,  bringing the total share
repurchases  at December  31,  2000 under this  program to 10.0  million  shares
totaling $398.9 million. No more shares may be repurchased under this program.

The  purchases  under  the  share  repurchase  programs  described  above are in
addition to the shares  required for employee  stock purchase  plans,  which are
purchased throughout the year. Purchases will continue to be made in 2001 in the
open market with funding of the  programs  coming from excess free cash flow and
short-term borrowings, if needed.

RadioShack's  primary source of short-term debt consists of short-term  seasonal
bank debt and commercial  paper,  which have maturities of less than 90 days. In
the second  quarter of 2000,  RadioShack  increased its $200.0  million  364-day
revolving  credit facility to $300.0 million and also extended the maturity date
to June 2001. The terms of the 364-day  revolving credit facility remain similar
to the  previous  facility.  RadioShack  also  has a  $300.0  million  five-year
revolving credit facility  maturing June 2003. The revolving  credit  facilities
are used as backup for the commercial paper program and may also be utilized for
general corporate purposes.  Annual commitment fees for the facilities are 0.07%
of the  $300.0  million  364-day  facility  and  0.085%  of the  $300.0  million
multiyear facility,  whether used or unused.  During the second quarter of 2001,
RadioShack plans to extend the 364-day facility to June 2002.

The total  debt-to-capitalization ratio was 47.0% at December 31, 2000, 38.0% at
December  31,  1999 and 35.6% at  December  31,  1998.  These  increases  in the
debt-to-capitalization  ratios  result from an  increase in debt levels  related
primarily to the share repurchase  program and increased  inventory and accounts
receivable levels.

RadioShack  has a $300.0  million  Debt  Shelf  Registration  Statement  ("Shelf
Registration").  In August 1997,  RadioShack  issued  $150.0  million of 10 year
unsecured notes under the Shelf Registration.  The interest rate on the notes is
6.95% per annum with  interest  payable on September 1 and March 1 of each year,
commencing  March 1, 1998. The notes are due September 1, 2007. In December 1997
and  January   1998,   RadioShack   issued  $4.0  million  and  $45.0   million,
respectively,  in  medium-term  notes under the remaining  $150.0  million Shelf
Registration.  An additional  $32.0 million,  $37.0 million and $32.0 million of
medium-term  notes were issued in January 1999,  August 1999 and September 1999,
respectively,  completing  the remaining 1997 Shelf  Registration.  RadioShack's
medium and long-term notes outstanding at December 31, 2000 under the 1997 Shelf
Registration totaled $300.0 million. The interest rates at December 31, 2000 for
the outstanding  $150.0 million in medium-term notes ranged from 6.09% to 7.35%,
with a  weighted  average  coupon  rate of 6.6%.  These  medium-term  notes have
varying maturities ranging from 2001 to 2008.

RadioShack's  management believes that its present borrowing capacity is greater
than the established credit lines and long-term debt in place. It is anticipated
that RadioShack  will review the medium to longer-term  debt markets in calendar
2001. If these markets are  available to the Company at favorable  terms,  it is
likely that longer maturity debt will be issued to repay  short-term debt and to
adjust the mix of short-term versus long-term debt.

INFLATION
Inflation has not significantly  impacted  RadioShack over the past three years.
Management does not expect inflation to have a significant  impact on operations
in the foreseeable  future,  unless global situations  substantially  affect the
world economy.

ITEM 7a.   QUALITATIVE AND QUANTITATIVE DISCLOSURES ABOUT MARKET RISK.

RadioShack does not have any derivative instruments that materially increase the
Company's  exposure to market risks for interest rates,  foreign currency rates,
commodity  prices  or  other  market  price  risks.   RadioShack  does  not  use
derivatives for speculative purposes.

The company is exposed to market risk from changes in interest  rates.  Interest
rate  risk  exists   principally  with  respect  to  the  Company's   short-term
indebtedness  that bears  interest at floating  rates.  At  December  31,  2000,
RadioShack  had $461.3  million of  indebtedness  bearing  interest  at floating
rates. A hypothetical,  instantaneous and unfavorable change of 100 basis points
in the interest rate  applicable to  floating-rate  indebtedness at December 31,
2000 would have resulted in additional interest expense of $4.6 million assuming
no change in the principal or a reduction of such indebtedness.

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.

The Index to Consolidated Financial Statements is found on page 24. RadioShack's
Financial  Statements and Notes to Consolidated  Financial Statements follow the
index.

ITEM  9.  CHANGES  IN AND  DISAGREEMENTS  WITH  ACCOUNTANTS  ON  ACCOUNTING  AND
          FINANCIAL DISCLOSURE.

None.


PART III

ITEM 10.  DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT.

RadioShack  will file a  definitive  proxy  statement  with the  Securities  and
Exchange Commission not later than 120 days after the end of the year covered by
this Form 10-K pursuant to Regulation  14A. The  information  called for by this
Item with respect to directors has been omitted pursuant to General  Instruction
G(3). This information is incorporated by reference from the Proxy Statement for
the 2001 Annual Meeting.  For information  relating to the Executive Officers of
RadioShack,  see Part I of this report. The Section 16(a) reporting  information
is  incorporated  by  reference  from the Proxy  Statement  for the 2001  Annual
Meeting.

ITEM 11.  EXECUTIVE COMPENSATION.

RadioShack  will file a  definitive  proxy  statement  with the  Securities  and
Exchange Commission not later than 120 days after the end of the year covered by
this Form 10-K pursuant to Regulation  14A. The  information  called for by this
Item with respect to executive compensation has been omitted pursuant to General
Instruction  G(3). This  information is incorporated by reference from the Proxy
Statement for the 2001 Annual Meeting.

ITEM 12.  SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT.

RadioShack  will file a  definitive  proxy  statement  with the  Securities  and
Exchange Commission not later than 120 days after the end of the year covered by
this Form 10-K pursuant to Regulation  14A. The  information  called for by this
Item with  respect  to  security  ownership  of  certain  beneficial  owners and
management  has  been  omitted  pursuant  to  General   Instruction  G(3).  This
information is  incorporated  by reference from the Proxy Statement for the 2001
Annual Meeting.

ITEM 13.  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.

RadioShack  will file a  definitive  proxy  statement  with the  Securities  and
Exchange Commission not later than 120 days after the end of the year covered by
this Form 10-K pursuant to Regulation  14A. The  information  called for by this
Item with respect to certain  relationships and transactions with management and
others has been omitted pursuant to General  Instruction  G(3). This information
is  incorporated  by  reference  from the Proxy  Statement  for the 2001  Annual
Meeting.



PART IV

ITEM 14.  EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K.

(a)     Documents filed as part of this report.
        1. Financial Statements

The financial statements filed as a part of this report are listed in the "Index
to Consolidated Financial Statements" on page 24.

        3. Exhibits required by Item 601 of Regulation S-K

A list of the exhibits  required by Item 601 of Regulation S-K and filed as part
of this  report  is set  forth  in the  Index  to  Exhibits  on page  49,  which
immediately precedes such exhibits.

Certain  instruments  defining  the  rights  of  holders  of  long-term  debt of
RadioShack and its  consolidated  subsidiaries are not filed as exhibits to this
report  because the total amount of securities  authorized  thereunder  does not
exceed ten percent of the total assets of the Company on a  consolidated  basis.
RadioShack  hereby  agrees to furnish the  Securities  and  Exchange  Commission
copies of such instruments upon request.



SIGNATURES

Pursuant to the  requirements of Section 13 or 15(d) of the Securities  Exchange
Act of 1934, RadioShack  Corporation has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.


                             RADIOSHACK CORPORATION


March 22, 2001                             /s/ Leonard H. Roberts
                                           -------------------------
                                           Leonard H. Roberts
                                           Chairman and Chief Executive Officer,
                                           RadioShack Corporation


Pursuant to the  requirements of Section 13 or 15(d) of the Securities  Exchange
Act of 1934, RadioShack  Corporation has duly caused this report to be signed on
its behalf by the following persons in the capacities indicated on this 22nd day
of March, 2001.

Signature                     Title


/s/ Leonard H. Roberts        Chairman, Chief Executive Officer and Director
---------------------------   (Chief Executive Officer)
Leonard H. Roberts

/s/ Loren K. Jensen           Vice President - Finance and Acting Chief
---------------------------   Financial Officer
Loren K. Jensen               (Principal Financial Officer)

/s/ Richard L. Ramsey         Vice President and Controller
---------------------------   (Principal Accounting Officer)
Richard L. Ramsey

                              Director    /s/ William G. Morton, Jr.    Director
---------------------------               ---------------------------
Frank J. Belatti                          William G. Morton, Jr.

/s/ Ronald E. Elmquist        Director    /s/ Thomas G. Plaskett        Director
---------------------------               ---------------------------
Ronald E. Elmquist                        Thomas G. Plaskett

/s/ Lawrence V. Jackson       Director    /s/ Alfred J. Stein           Director
---------------------------               ---------------------------
Lawrence V. Jackson                       Alfred J. Stein

/s/ Robert J. Kamerschen      Director    /s/ William E. Tucker         Director
---------------------------               ---------------------------
Robert J. Kamerschen                      William E. Tucker

/s/ Lewis F. Kornfeld, Jr.    Director    /s/ Edwina D. Woodbury        Director
---------------------------               ---------------------------
Lewis F. Kornfeld, Jr.                    Edwina D. Woodbury


---------------------------   Director
Jack L. Messman




                             RADIOSHACK CORPORATION

                   INDEX TO CONSOLIDATED FINANCIAL STATEMENTS

                                                                           Page

Report of Independent Accountants...............................            25
Consolidated Statements of Income for each of the three
  years in the period ended December 31, 2000...................            26
Consolidated Balance Sheets at December 31, 2000
  and December 31, 1999.........................................            27
Consolidated Statements of Cash Flows for each of the three
  years in the period ended December 31, 2000...................            28
Consolidated Statements of Stockholders' Equity for each of
  the three years in the period ended December 31, 2000.........          29-30
Notes to Consolidated Financial Statements......................          31-48

All schedules have been omitted because they are not applicable, not required or
the information is included in the  consolidated  financial  statements or notes
thereto.

Financial  statements of 50% or less-owned companies accounted for by the equity
method have been omitted because they do not, considered  individually or in the
aggregate, constitute a significant subsidiary.




                        Report of Independent Accountants



To the Board of Directors and Stockholders of
RadioShack Corporation

In our opinion, the consolidated financial statements listed in the accompanying
index  on page 24  present  fairly,  in all  material  respects,  the  financial
position of  RadioShack  Corporation  and its  subsidiaries  (the  "Company") at
December 31, 2000 and 1999,  and the results of their  operations and their cash
flows for each of the three  years in the  period  ended  December  31,  2000 in
conformity with accounting principles generally accepted in the United States of
America.  These  financial  statements are the  responsibility  of the Company's
management;  our  responsibility  is to express  an  opinion on these  financial
statements  based on our audits.  We conducted our audits of these statements in
accordance with auditing  standards  generally  accepted in the United States of
America,  which 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,   assessing  the
accounting  principles  used and significant  estimates made by management,  and
evaluating the overall  financial  statement  presentation.  We believe that our
audits provide a reasonable basis for our opinion.




/s/  PricewaterhouseCoopers LLP
-------------------------------
PRICEWATERHOUSECOOPERS LLP

Fort Worth, Texas
February 21, 2001



Consolidated Statements of INCOME
RadioShack Corporation and Subsidiaries




                                                              Year Ended December 31,
                                          -------------------------------------------------------------------
                                                 2000                    1999                    1998
                                           % of                    % of                    % of
(In millions, except per share amounts)   Dollars    Revenues     Dollars    Revenues     Dollars    Revenues
-------------------------------------------------------------------------------------------------------------
                                                                                      
Net sales and operating revenues          $4,794.7      100.0%    $4,126.2      100.0%    $4,787.9      100.0%
Cost of products sold                      2,425.1       50.6      2,042.7       49.5      2,783.5       58.1
                                          --------   --------     --------   --------     --------   --------
Gross profit                               2,369.6       49.4      2,083.5       50.5      2,004.4       41.9
                                          --------   --------     --------   --------     --------   --------

Operating expenses (income):
  Selling, general and administrative      1,633.6       34.1      1,486.4       36.0      1,580.3       33.0
  Depreciation and amortization              107.3        2.2         90.2        2.2         99.0        2.1
  Restricted stock awards                     (1.0)        --          9.6        0.2         82.6        1.7
  Provision for loss on sale of
   Computer City                                --         --           --         --        108.2        2.3
                                          --------   --------     --------   --------     --------   --------
Total operating expenses                   1,739.9       36.3      1,586.2       38.4      1,870.1       39.1
                                          --------   --------     --------   --------     --------   --------

Operating income                             629.7       13.1        497.3       12.1        134.3        2.8

Interest income                               17.8        0.4         20.4        0.5         10.8        0.2
Interest expense                             (53.9)      (1.1)       (37.2)      (0.9)       (45.4)      (0.9)
                                          --------   --------     --------   --------     --------   --------

Income before income taxes                   593.6       12.4        480.5       11.7         99.7        2.1

Provision for income taxes                   225.6        4.7        182.6        4.5         38.4        0.8
                                          --------   --------     --------   --------     --------   --------
Net income                                   368.0        7.7        297.9        7.2         61.3        1.3


Preferred dividends                            5.3        0.1          5.5        0.1          5.8        0.1
                                          --------   --------     --------   --------     --------   --------

Net income available to common
 shareholders                             $  362.7        7.6%    $  292.4        7.1%    $   55.5        1.2%
                                          ========   ========     ========   ========     ========   ========

Net income available per common
 share:

     Basic                                $   1.94                $   1.51                $   0.28
                                          ========                ========                ========

     Diluted                              $   1.84                $   1.43                $   0.27
                                          ========                ========                ========

Shares used in computing earnings
 per common share:

     Basic                                   187.3                   194.2                   201.2
                                          ========                ========                ========

     Diluted                                 197.7                   205.0                   211.4
                                          ========                ========                ========


Dividends declared per common share       $  0.220                $  0.205                $  0.200
                                          ========                ========                ========

The  accompanying  notes are an integral  part of these  consolidated  financial statements.




Consolidated Balance Sheets
RadioShack Corporation and Subsidiaries

                                                             December 31,
                                                    ------------------------
(In millions, except for share amounts)               2000            1999
-------------------------------------------------------------      ---------
Assets
Current assets:
  Cash and cash equivalents                         $   130.7      $   164.6
  Accounts and notes receivable, net                    464.7          286.1
  Inventories, at lower of cost or market             1,164.3          861.4
  Other current assets                                   58.5           91.2
                                                    ---------      ---------
    Total current assets                              1,818.2        1,403.3
                                                    ---------      ---------

Property, plant and equipment, net                      456.8          446.8

Other assets, net of accumulated amortization           301.5          291.9
                                                    ---------      ---------
Total assets                                        $ 2,576.5      $ 2,142.0
                                                    =========      =========

Liabilities and Stockholders' Equity
Current liabilities:
  Short-term debt, including current maturities of  $   478.6      $   188.9
   long-term debt
  Accounts payable                                      234.8          234.8
  Accrued expenses                                      330.1          350.8
  Income taxes payable                                  188.9          150.7
                                                    ---------      ---------
    Total current liabilities                         1,232.4          925.2

Long-term debt, excluding current maturities            302.9          319.4
Other non-current liabilities                            60.9           45.7
                                                    ---------      ---------
    Total liabilities                                 1,596.2        1,290.3
                                                    ---------      ---------

Minority interest in consolidated subsidiary            100.0             --

Common stock put options                                   --           21.0

Stockholders' equity:
  Preferred stock, no par value, 1,000,000 shares
   authorized
  Series A junior participating, 300,000 shares
   designated and none issued                              --             --
  Series B convertible (TESOP), 100,000 shares
   authorized; 68,800 and 72,800 shares issued,
    respectively                                         68.8           72.8
  Common stock, $1 par value, 650,000,000 shares
   authorized; 236,033,000 and 235,840,000 shares
   issued, respectively                                 236.0          235.8
  Additional paid-in capital                            116.1           82.4
  Retained earnings                                   1,661.5        1,353.3
  Treasury stock, at cost; 50,269,000 and
   45,113,000 shares, respectively                   (1,189.6)        (892.3)
  Unearned deferred compensation                        (11.5)         (20.5)
  Accumulated other comprehensive loss                   (1.0)          (0.8)
                                                    ---------      ---------
    Total stockholders' equity                          880.3         830.7
Commitments and contingent liabilities (see Note 10)
                                                    ---------      ---------
Total liabilities and stockholders' equity          $ 2,576.5      $ 2,142.0
                                                    =========      =========

The  accompanying  notes are an integral  part of these  consolidated  financial
statements.



Consolidated Statements of Cash Flows
RadioShack Corporation and Subsidiaries




                                                                Year Ended December 31,
                                                         -----------------------------------
(In millions)                                               2000         1999         1998
--------------------------------------------------------------------------------------------
                                                                          
Cash flows from operating activities:
  Net income                                             $   368.0    $   297.9    $    61.3
  Adjustments to reconcile net income to net cash
   provided by operating activities:
    Restricted stock awards                                   (1.0)         9.6         82.6
    Provision for loss on sale of Computer City                 --           --        108.2
    Depreciation and amortization                            107.3         90.2         99.0
    Deferred income taxes and other items                     33.1         49.0         (4.0)
    Provision for credit losses and bad debts                  3.6          0.9          8.4
  Changes in operating assets and liabilities:
    Receivables                                             (149.0)       (29.3)       (32.6)
    Inventories                                             (302.9)        52.6         85.6
    Other current assets                                      (6.2)        15.1         17.7
    Accounts payable, accrued expenses and income taxes       63.6         75.6        (11.4)
                                                         ---------    ---------    ---------
Net cash provided by operating activities                    116.5        561.6        414.8
                                                         ---------    ---------    ---------

Investing activities:
  Additions to property, plant and equipment                (119.6)      (102.4)      (131.5)
  Proceeds from sale of property, plant and equipment          1.5          5.6          6.7
  Proceeds from sale of Computer City                           --           --         36.5
  Proceeds from sale of minority interest in consolidated
   subsidiary                                                100.0           --           --
  Investment in securities                                   (30.0)       (20.0)          --
  Proceeds from sale of equity securities                     17.9           --           --
  Other investing activities                                  (3.8)        (4.2)        (4.7)
                                                         ---------    ---------    ---------
Net cash used by investing activities                        (34.0)      (121.0)       (93.0)
                                                         ---------    ---------    ---------

Financing activities:
  Purchases of treasury stock                               (400.6)      (422.2)      (337.4)
  Exercise of common stock put options                        (8.6)          --           --
  Proceeds from sale of common stock put options               0.5          4.4          0.3
  Sale of treasury stock to stock plans                       46.8         39.5         35.4
  Proceeds from exercise of stock options                     19.5         42.0         22.4
  Dividends paid                                             (44.7)       (42.5)       (44.8)
  Changes in short-term borrowings, net                      285.2        (42.3)       (44.9)
  Additions to long-term borrowings                             --        100.6         45.7
  Repayments of long-term borrowings                         (14.5)       (20.0)       (39.9)
                                                         ---------    ---------    ---------
Net cash used by financing activities                       (116.4)      (340.5)      (363.2)
                                                         ---------    ---------    ---------


Increase/(decrease) in cash and cash equivalents             (33.9)       100.1        (41.4)
Cash and cash equivalents, beginning of period               164.6         64.5        105.9
                                                         ---------    ---------    ---------
Cash and cash equivalents, end of period                 $   130.7    $   164.6    $    64.5
                                                         =========    =========    =========

The  accompanying  notes are an integral  part of these  consolidated  financial statements.




Consolidated Statements of Stockholders' Equity
RadioShack Corporation and Subsidiaries




                                                               Common Stock         Treasury Stock
                                               Preferred   -------------------    -------------------
(In millions)                                    Stock      Shares    Dollars      Shares    Dollars
-----------------------------------------------------------------------------------------------------
                                                                            
Balance at December 31, 1997                   $ 100.0       138.3    $  138.3      (36.0)  $  (836.1)
Comprehensive income:
  Net income                                        --          --          --         --          --
  Other comprehensive income, net of tax:
    Foreign currency translation adjustments
    Reclassification for losses included in
     net income
    Net unrealized gain on foreign currency
     translation
  Other comprehensive income                        --          --          --         --          --
Comprehensive income
Purchase of treasury stock                          --          --          --       (7.5)     (339.3)
Sale of treasury stock to employee stock plans      --          --          --        0.8        19.3
Restricted stock awards                             --         0.9         0.9       (0.3)      (29.1)
Exercise of stock options and grant of stock
 awards                                             --          --          --        1.2        29.9
Series B convertible stock dividends,
  net of taxes of $2.1                              --          --          --         --          --
Deferred compensation earned                        --          --          --         --          --
Repurchase of preferred stock                       --          --          --         --        (6.3)
Common stock cash dividends declared                --          --          --         --          --
                                               ------------------------------------------------------
Balance at December 31, 1998                     100.0       139.2       139.2      (41.8)   (1,161.6)
Comprehensive income:
  Net income                                        --          --          --         --          --
  Other comprehensive income, net of tax:
    Foreign currency translation adjustments
Comprehensive income                                --          --          --         --          --
Purchase of treasury stock                          --          --          --       (8.5)     (435.9)
Common stock put options                            --          --          --         --       (16.1)
Sale of treasury stock to employee stock plans      --          --          --        0.4         9.3
Restricted stock awards                             --          --          --         --         1.5
Purchase of AmeriLink Corporation                   --          --          --        1.8        25.5
Dealer/Franchisee Rewards Program                   --          --          --         --         0.8
Exercise of stock options and grant of stock
 awards                                             --          --          --        3.0        51.6
Series B convertible stock dividends,
 net of taxes of $1.9                               --          --          --         --          --
Deferred compensation earned                        --          --          --         --          --
Cancellation of preferred stock, net of
 repurchases                                     (27.2)         --          --         --        28.8
Common stock cash dividends declared                --          --          --         --          --
Two-for-one common stock split                      --        96.6        96.6         --       603.8
                                               ------------------------------------------------------
Balance at December 31, 1999                      72.8       235.8       235.8      (45.1)     (892.3)
Comprehensive income:
  Net income                                        --          --          --         --          --
  Other comprehensive loss, net of tax:
    Foreign currency translation adjustments
Comprehensive income                                --          --          --         --          --
Purchase of treasury stock                          --          --          --       (7.9)     (368.6)
Common stock put options                            --          --          --         --        (3.5)
Expired common stock put options                    --          --          --         --        14.8
Sale of treasury stock to employee stock plans      --          --          --        1.2        25.3
Restricted stock awards, net of forfeitures         --         0.2         0.2        0.2         3.0
Dealer/Franchisee Rewards Program                   --          --          --        0.1         1.6
Exercise of stock options and grant of stock
 awards                                             --          --          --        1.3        30.1
Series B convertible stock dividends,
  net of taxes of $1.9                              --          --          --         --          --
Deferred compensation earned                        --          --          --         --          --
Cancellation of preferred stock, net of
 repurchases                                      (4.0)         --          --         --          --
Common stock cash dividends declared                --          --          --         --          --
                                               ------------------------------------------------------
Balance at December 31, 2000                   $  68.8       236.0    $ 236.0       (50.2)  $(1,189.6)
                                               ======================================================

The  accompanying  notes are an integral  part of these  consolidated  financial
statements.




Consolidated Statements of Stockholders' Equity - continued
RadioShack Corporation and Subsidiaries


                                                                   Unearned    Accumulated
                                           Additional              Deferred      Other
                                            Paid-In     Retained    Compen-   Comprehensive           Comprehensive
(In millions)                               Capital     Earnings    sation       Loss         Total      Income
-------------------------------------------------------------------------------------------------------------
                                                                                      
Balance at December 31, 1997                $  19.2     $1,676.3   $  (37.4)    $   (1.7)    $1,058.6
Comprehensive income:
  Net income                                     --         61.3         --           --         61.3   $  61.3
  Other comprehensive income, net of tax:
   Foreign currency translation adjustments                                                                (0.7)
   Reclassification for losses included
    in net income                                                                                           1.4
                                                                                                        -------
   Net unrealized gain on foreign
    currency translation                                                                                    0.7
                                                                                                        -------
 Other comprehensive income                      --           --         --          0.7          0.7       0.7
                                                                                                        -------
Comprehensive income                                                                                    $  62.0
                                                                                                        =======
Purchase of treasury stock                       --           --         --           --       (339.3)
Sale of treasury stock to employee stock
 plans                                         16.0           --         --           --         35.3
Restricted stock awards                        68.8           --       (4.2)          --         36.4
Exercise of stock options and grant of
 stock awards                                   5.7           --         --           --         35.6
Series B convertible stock dividends,
 net of taxes of $2.1                            --         (3.7)        --           --         (3.7)
Deferred compensation earned                     --           --       10.1           --         10.1
Repurchase of preferred stock                    --           --         --           --         (6.3)
Common stock cash dividends declared             --        (40.5)        --           --        (40.5)
                                            ------------------------------------------------------------
Balance at December 31, 1998                  109.7      1,693.4      (31.5)        (1.0)       848.2
Comprehensive income:
 Net income                                      --        297.9         --           --        297.9   $ 297.9
 Other comprehensive income, net of tax:
  Foreign currency translation adjustments       --           --         --          0.2          0.2       0.2
                                                                                                        -------
Comprehensive income                                                                                    $ 298.1
                                                                                                        =======
Purchase of treasury stock                       --           --         --           --       (435.9)
Common stock put options                        2.8           --         --           --        (13.3)
Sale of treasury stock to employee stock
 plans                                         30.3           --         --           --         39.6
Restricted stock awards                       (10.6)          --       (0.5)          --         (9.6)
Purchase of AmeriLink Corporation              43.7           --         --           --         69.2
Dealer/Franchisee Rewards Program               0.9           --         --           --          1.7
Exercise of stock options and grant of
 stock awards                                  28.6           --         --           --         80.2
Series B convertible stock dividends,
 net of taxes of $1.9                            --         (3.6)        --           --         (3.6)
Deferred compensation earned                     --           --       11.5           --         11.5
Cancellation of preferred stock, net of
 repurchases                                     --        (18.0)        --           --        (16.4)
Common stock cash dividends declared             --        (38.6)        --           --        (38.6)
Two-for-one common stock split               (123.0)      (577.8)        --           --         (0.4)
                                            ------------------------------------------------------------
Balance at December 31, 1999                   82.4      1,353.3      (20.5)        (0.8)       830.7
Comprehensive income:
 Net income                                      --        368.0         --           --        368.0   $ 368.0
 Other comprehensive loss, net of tax:
  Foreign currency translation adjustments       --           --         --         (0.2)        (0.2)     (0.2)
                                                                                                        -------
Comprehensive income                                                                                    $ 367.8
                                                                                                        =======
Purchase of treasury stock                       --           --         --           --       (368.6)
Common stock put options                         --           --         --           --         (3.5)
Expired common stock put options                1.6           --         --           --         16.4
Sale of treasury stock to employee stock
 plans                                         20.3           --         --           --         45.6
Restricted stock awards, net of
 forfeitures                                    7.0           --        0.2           --         10.4
Dealer/Franchisee Rewards Program               1.3           --         --           --          2.9
Exercise of stock options and grant of
 stock awards                                   3.5           --         --           --         33.6
Series B convertible stock dividends,
 net of taxes of $1.9                            --         (3.4)        --           --         (3.4)
Deferred compensation earned                     --           --        8.8           --          8.8
Cancellation of preferred stock, net of
 repurchases                                     --        (14.4)        --           --        (18.4)
Common stock cash dividends declared             --        (42.0)        --           --        (42.0)
                                            ------------------------------------------------------------
Balance at December 31, 2000                $ 116.1     $1,661.5   $  (11.5)    $   (1.0)    $  880.3
                                            ============================================================

The  accompanying  notes are an integral  part of these  consolidated  financial
statements.



NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
RadioShack Corporation and Subsidiaries

NOTE 1 - DESCRIPTION OF BUSINESS
RadioShack   Corporation   ("RadioShack"   or  the   "Company"),   through   its
approximately  7,200 company-owned and  dealer/franchise  retail outlets, is the
nation's largest consumer  electronics  chain.  RadioShack's sales and operating
revenues  primarily  relate to private  label and third party  branded  consumer
electronics,  brand name personal computers, wireless communication products and
services,  telephony and  direct-to-home  ("DTH") satellite systems sold through
its retail locations.  Additionally,  RadioShack operates certain related retail
support groups and consumer electronics manufacturing businesses.

On May 18, 2000, the Company's  stockholders  approved  changing the name of the
Company from Tandy Corporation to RadioShack Corporation.

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Principles of Consolidation:  The Consolidated  Financial Statements include the
accounts of RadioShack and its majority owned subsidiaries.  On August 31, 1998,
the Company  completed the sale of 100% of the  outstanding  common stock of its
Computer City, Inc.  ("Computer City")  subsidiary to CompUSA Inc.  ("CompUSA").
Computer  City was included in the  Consolidated  Financial  Statements  through
August 31, 1998, the date of its sale. Investments in 20% to 50% owned companies
are accounted for on the equity method.  Significant  intercompany  transactions
are eliminated in consolidation.

Pervasiveness  of  Estimates:  The  preparation  of  financial  statements,   in
conformity with generally accepted accounting principles, requires management to
make estimates and  assumptions  that affect the reported  amounts of assets and
liabilities,  related  revenues and expenses and the disclosure of gain and loss
contingencies  at the date of the  financial  statements.  Actual  results could
differ from those estimates.

Foreign  Currency  Translation:  The functional  currency of  substantially  all
operations outside the U.S. is the respective local currency.  Translation gains
or losses related to net assets located outside the United States are shown as a
component of accumulated other comprehensive income (loss) and are classified in
the  stockholders'  equity  section  of the  accompanying  Consolidated  Balance
Sheets.

Cash and Cash  Equivalents:  Cash on hand in stores,  deposits  in banks and all
highly liquid  investments with an original  maturity of three months or less at
the time of purchase are considered cash and cash equivalents.  Cash equivalents
are  carried at cost,  which  approximates  fair  value.  The  weighted  average
interest  rates were 6.3% and 5.3% at December 31, 2000 and 1999,  respectively,
for cash equivalents totaling $39.1 million and $31.2 million, respectively.

Equity  Securities:  Equity  securities  are marked to market  based upon market
value  fluctuations.  The  resulting  adjustments,  net of deferred  taxes,  are
reported as a component of stockholders' equity until realized. Declines in fair
market value that are  considered to be other than  temporary are  recognized in
earnings and  establish a new cost basis for the  security.  Realized  gains and
losses  are   included  in  earnings   and  are   determined   on  the  specific
identification method.

Accounts  Receivable  and  Allowance  For Doubtful  Accounts:  An allowance  for
doubtful  accounts is provided when accounts are determined to be uncollectible.
Concentrations  of credit risk with respect to customer  receivables are limited
due to the large number of customers comprising  RadioShack's  customer base and
their  location in many  different  geographic  areas of the  country.  However,
RadioShack does have some concentration of credit risk in the wireless telephone
and DTH satellite  services  industries due to increased  sales and  outstanding
balances as of December 31, 2000 from these service providers.

Inventories:  Inventories are stated at the lower of cost (principally  based on
average cost) or market value and are comprised primarily of finished goods.

Other Assets: In April 2000,  RadioShack made a $30.0 million  investment in the
preferred stock of Digital:Convergence  Corporation. This investment is included
in other assets in the accompanying  Consolidated  Balance Sheet at December 31,
2000 and is recorded at cost,  as the  Company's  ownership is less than 20% and
the fair value is not readily determinable.

Property,  Plant and  Equipment:  Property and equipment are stated at cost. For
financial  reporting  purposes,  depreciation  and  amortization  are  primarily
calculated  using the  straight-line  method,  which  amortizes  the cost of the
assets over their estimated useful lives.  When  depreciable  assets are sold or
retired,  the related  cost and  accumulated  depreciation  are removed from the
accounts.   Any  gains  or  losses  are   included  in   selling,   general  and
administrative   ("SG&A")   expense.   Major   additions  and   betterments  are
capitalized.  Maintenance and repairs which do not materially  improve or extend
the  lives of the  respective  assets  are  charged  to  operating  expenses  as
incurred.  Amortization  of  buildings  under  capital  leases  is  included  in
depreciation and amortization in the Consolidated Statements of Income.

Capitalized Software Costs: The Company capitalizes  qualifying costs related to
developing  internal-use  software.  Capitalization  of costs  begins  after the
conceptual formulation stage has been completed. Capitalized costs are amortized
over the estimated  useful life of the software,  which ranges between three and
five years.  Capitalized  software  costs at December  31,  2000,  1999 and 1998
totaled $39.6  million,  $25.6 million,  and $27.6  million,  net of accumulated
amortization of $16.0 million, $8.1 million and $4.0 million, respectively.

Goodwill:  Goodwill,  which represents the excess of the purchase price over the
fair value of net assets  acquired,  is amortized on a straight-line  basis over
the expected life of the underlying assets. Goodwill was $50.6 million and $52.9
million,  net of accumulated  amortization of $3.7 million and $1.4 million,  at
December 31, 2000 and 1999, respectively.  Goodwill and amortization expense for
2000 related  primarily to the Company's  acquisition  of AmeriLink  Corporation
("AmeriLink") in July 1999. The transaction was accounted for under the purchase
method of accounting.  The purchase  price was allocated to the assets  acquired
and liabilities  assumed based on their estimated fair values at the date of the
acquisition.  This resulted in approximately $50.7 million of goodwill, which is
being amortized over 20 years.

Impairment of Long-Lived Assets:  Long-lived assets (primarily  property,  plant
and equipment and goodwill) held and used by RadioShack or to be disposed of are
reviewed for impairment  whenever  events or changes in  circumstances  indicate
that the net book value of the asset may not be recoverable.  An impairment loss
is recognized  if the sum of the expected  future cash flows  (undiscounted  and
before  interest)  from the use of the asset is less than the net book  value of
the asset.  The amount of the  impairment  loss is  measured  as the  difference
between  the net book value of the assets  and the  estimated  fair value of the
related assets.

Fair Value of Financial Instruments:  The fair value of financial instruments is
determined by reference to various market data and other valuation techniques as
appropriate.   Unless  otherwise   disclosed,   the  fair  values  of  financial
instruments  approximate  their recorded  values due primarily to the short-term
nature of their maturities or their varying interest rate.

Revenue Recognition: The Company's revenue is derived primarily through the sale
of private label and third party branded products.  Services and other operating
revenues are less than 10% of total revenue. Revenue is recognized when delivery
has  occurred  or  services  have been  rendered,  the  sales  price is fixed or
determinable,  and  collectibility  is reasonably  assured.  Residual  income is
recorded  as earned  under the terms of each  contractual  arrangement  with the
service provider, which is typically as the service provider bills its customer.
Additionally, RadioShack's retail operations offer extended service contracts on
products sold. These contracts  generally  provide extended service coverage for
periods of 12 to 60 months.  RadioShack  offers these  contracts on behalf of an
unrelated third party, who is named as obligor on these contracts. RadioShack is
not named as an obligor on these contracts. In these circumstances, RadioShack's
share of commission revenue is recognized as income at the time of sale.

The Company  adopted the  provisions of SEC Staff  Accounting  Bulletin No. 101,
"Revenue Recognition in Financial Statements" ("SAB 101"), in the fourth quarter
of 2000.  The Company also adopted  Emerging  Issues Task Force Issue No. 99-19,
"Reporting  Revenue  Gross as a Principal  versus Net as an Agent" in the fourth
quarter of 2000. The effect of the adoption of these  standards was not material
to the Company's net sales and operating revenues and results of operations.

Income  Taxes:  Income  taxes are  accounted  for using the asset and  liability
method.  Deferred taxes are recognized  for the tax  consequences  of "temporary
differences" by applying enacted  statutory tax rates applicable to future years
to  differences  between the financial  statement  carrying  amounts and the tax
basis of existing  assets and  liabilities.  The effect on  deferred  taxes of a
change in tax rates is  recognized  in income in the period  that  includes  the
enactment date. In addition,  RadioShack  recognizes  future tax benefits to the
extent that realization of such benefits are more likely than not.

Minority Interest:  Minority interest in consolidated  subsidiary represents the
minority shareholder's  investment in RadioShack.com LLC ("RS.com").  RadioShack
owns  100%  of  the  common  units  of  RS.com,   while  Microsoft   Corporation
("Microsoft")  owns 100% of the  preferred  units.  RadioShack  is  entitled  to
receive 75% of the profits and losses of RS.com,  while  Microsoft  will receive
25%; however,  the preferred units have certain liquidation rights,  which could
impact the  allocation  of profits  and losses  between  the unit  holders.  The
preferred  units  are  convertible  into  common  units  at any time and must be
converted   in  the  event  of   certain   capital   transactions.   In  certain
circumstances,  Microsoft  has the option to require  RadioShack to purchase its
units and RadioShack has the right to purchase  Microsoft's  units. Also, in the
event of liquidation,  the preferred units have  preferential  rights to recover
their initial investment.

Common  Stock Put  Options:  A common  stock put  option is a equity  instrument
whereby  RadioShack  receives an upfront cash premium for granting another party
the option to sell a defined  number of  RadioShack  shares to the  Company at a
fixed price on a specified  future date. The proceeds  received upon the sale of
these  instruments  are  recorded  as  a  component  of  stockholders'   equity.
Subsequent  changes  in  the  fair  value  of the  equity  instruments  are  not
recognized.  At December 31, 1999, the full redemption  value of the put options
was  classified  as common  stock put options on the  accompanying  Consolidated
Balance  Sheet.  At December  31,  2000,  there were no common stock put options
outstanding.

Earnings  Per Share:  Basic  earnings  per share is  computed  based only on the
weighted average number of common shares  outstanding for each period presented.
Diluted  earnings per share  reflects  the  potential  dilution  that would have
occurred if securities or other  contracts to issue common stock were exercised,
converted,  or  resulted in the  issuance  of common  stock that would have then
shared in the  earnings  of the  entity.  The  following  table  reconciles  the
numerator  and  denominator  used in the basic and  diluted  earnings  per share
calculations.



                                                                   Year Ended December 31,
                                      2000                                 1999                                 1998
                      -----------------------------------  -----------------------------------  ------------------------------------
(In millions, except    Income       Shares     Per Share    Income       Shares     Per Share    Income       Shares     Per Share
 per share amounts)   (Numerator) (Denominator)   Amount   (Numerator) (Denominator)   Amount   (Numerator) (Denominator)   Amount
------------------    ----------- ------------- ---------  ----------- ------------- ---------  ----------- ------------- ----------
                                                                                                
Net income             $ 368.0                              $ 297.9                              $  61.3
Less: Preferred
 stock dividends          (5.3)                                (5.5)                                (5.8)
                       -------                              -------                              -------

Basic EPS
Net income available to
 common shareholders     362.7         187.3     $  1.94      292.4         194.2     $  1.51       55.5         201.2     $  0.28
                                                 =======                              =======                              =======

Effect of dilutive
 securities:
Plus dividends on
 Series B preferred
 stock                     5.3                                  5.5                                  5.8
Additional contribution
 required for TESOP if
 preferred stock had
 been converted           (3.4)          6.2                   (4.1)          6.5                   (4.1)          6.8
Stock options                            4.2                                  4.3                                  3.4
                       -------       -------                -------       -------                -------       -------

Diluted EPS
Net income available to
 common shareholders
 plus assumed
 conversions           $ 364.6         197.7     $  1.84    $ 293.8         205.0     $  1.43    $  57.2         211.4     $  0.27
                       =======       =======     =======    =======       =======     =======    =======       =======     =======


Options to purchase  0.9 million,  3.3 million and 3.4 million  shares of common
stock in 2000, 1999 and 1998, respectively, were not included in the computation
of diluted  earnings  per common  share  because the option  exercise  price was
greater than the average market price of the common stock during the year.

Stock-Based  Compensation:  RadioShack has adopted SFAS No. 123, "Accounting for
Stock-Based  Compensation"  ("FAS 123"), on a disclosure basis only.  RadioShack
measures  compensation  costs  under  Accounting  Principles  Board  Opinion 25,
"Accounting  for  Stock  Issued  to  Employees"   ("APB  25")  and  its  related
interpretations.

Advertising Costs: All RadioShack  advertising costs are expensed the first time
the advertising  takes place.  Advertising  expense was $227.1  million,  $199.9
million and $208.7 million for the years ended December 31, 2000, 1999 and 1998,
respectively.

Comprehensive  Income (Loss):  Comprehensive  income is defined as the change in
equity  (net  assets) of a business  enterprise  during a period,  except  those
changes  resulting  from  investments  by owners  and  distributions  to owners.
Comprehensive  income (loss) is comprised solely of foreign currency translation
adjustments.

The following  table  summarizes the tax effects of other  comprehensive  income
(loss).

Tax Effects of Other Comprehensive Income (Loss)



                                                                   Year Ended December 31,
                                               2000                         1999                        1998
                                     --------------------------   --------------------------  --------------------------
                                     Pre-Tax   Tax    After Tax   Pre-Tax   Tax    After Tax  Pre-Tax   Tax    After Tax
(In millions)                        Amount   Benefit   Amount    Amount   Expense   Amount    Amount  Expense   Amount
------------                         -------  -------   -------   -------  -------   -------  -------  -------   -------
                                                                                      
Foreign currency translation
 adjustments                          $(0.4)   $(0.2)    $(0.2)    $ 0.3    $ 0.1    $ 0.2     $(1.2)   $(0.5)   $(0.7)
Less: Reclassification adjustment
 for losses included in net income       --       --        --        --       --       --       2.3      0.9      1.4
                                     --------------------------   --------------------------  --------------------------
Other comprehensive income (loss)     $(0.4)   $(0.2)    $(0.2)    $ 0.3    $ 0.1    $ 0.2     $ 1.1    $ 0.4    $ 0.7
                                     ==========================   ==========================  ==========================



Reclassifications:  Certain  amounts in the December 31, 1999 and 1998 financial
statements  have  been  reclassified  to  conform  with the  December  31,  2000
presentation.   These   reclassifications  have  no  effect  on  net  income  or
stockholders' equity as previously reported.

Recently Issued Accounting  Pronouncements:  The Financial  Accounting Standards
Board issued SFAS No. 133,  "Accounting  for Derivative  Instruments and Hedging
Activities"  ("SFAS  133"),  in June  1998,  which  establishes  accounting  and
reporting  standards for derivative  instruments,  including certain  derivative
instruments embedded in other contracts and  for hedging activities.  RadioShack
uses  derivatives  only in limited  circumstances.  The Company adopted SFAS 133
effective January 1, 2001 and the impact was not material.

NOTE 3 - STOCK SPLIT
On May 25, 1999, RadioShack's Board of Directors declared a two-for-one split of
RadioShack common stock, payable on June 21, 1999. This resulted in the issuance
of 96.6 million  shares of common stock along with a  corresponding  decrease of
$96.6 million in additional  paid-in  capital.  Treasury  shares were not split.
However, an adjustment was made to the Company's stockholders' equity section of
the balance sheet to split the cost of treasury  stock (in effect a cancellation
of treasury  shares by reducing  paid-in  capital and  retained  earnings).  All
references  to  the  number  of  shares  (other  than  common  stock  issued  or
outstanding on the 1998  Consolidated  Statement of Stockholders'  Equity),  per
share  amounts,  cash  dividends,  and any  other  reference  to  shares  in the
Consolidated  Financial  Statements and the  accompanying  Notes to Consolidated
Financial  Statements  ("Notes"),  unless otherwise noted, have been adjusted to
reflect the split on a retroactive  basis.  Previously  awarded  stock  options,
restricted stock awards and  all other agreements payable in RadioShack's common
stock have also been adjusted or amended to reflect the split.

NOTE 4 - ACCOUNTS AND NOTES RECEIVABLE
As of December  31, 2000 and 1999,  RadioShack  had the  following  accounts and
notes receivable outstanding in the accompanying Consolidated Balance Sheets:

Accounts and Notes Receivable

                                                  December 31,
                                        ----------------------------
(In millions)                               2000           1999
------------                            -------------  -------------
Receivables from vendors and service
 providers(1)                             $  294.1       $  163.1
Trade accounts receivable                    110.8           85.0
Receivables from InterTAN, Inc. (see
 Note 20)                                      5.0            2.9
Current portion of CompUSA's notes
 receivable                                    9.7             --
Current portion of Fry's notes
 receivable                                    8.0            1.0
Other receivables                             43.4           36.9
Less allowance for doubtful accounts          (6.3)          (2.8)
                                        -------------  -------------
Accounts and notes receivable, net        $  464.7       $  286.1
                                        =============  =============

(1)  Includes marketing development funds, residual income, consumer acquisition
     fees and rebates from RadioShack's third party service providers.

Allowance for Doubtful Accounts
                                                    December 31,
                                              ------------------------
(In millions)                                  2000     1999     1998
------------                                  ------   ------   ------
Balance at the beginning of the year          $  2.8   $  8.5   $  1.0
Provision for credit losses and bad debt
 included in SG&A expense                        3.6      0.9      8.4
Uncollected receivables written off,
 net of recoveries                              (0.1)    (6.6)    (0.9)
                                              ------   ------   ------
Balance at the end of the year                $  6.3   $  2.8   $  8.5
                                              ======   ======   ======

Notes Receivable

                                          December 31,
                                     --------------------
(In millions)                          2000        1999
------------                         --------    --------
CompUSA                              $  136.0    $  136.0
Fry's                                     9.1        26.3
Other notes                               6.2         7.0
                                     --------    --------
Total notes receivable                  151.3       169.3
Less amounts classified as current      (18.4)       (1.7)
                                     --------    --------
Total included in other assets       $  132.9    $  167.6
                                     ========    ========

The CompUSA note  receivable  originated  on August 31, 1998,  the date Computer
City was sold to  CompUSA.  The note  bears  interest  at 9.48% per annum and is
payable over a ten year  period.  Interest is payable on June 30 and December 31
of each year.  Beginning on December 31, 2001,  principal  payments  will be due
semiannually until the note matures on June 30, 2008. RadioShack intends to hold
the subordinated  note until maturity.  The fair value of the note receivable at
December 31, 2000 was not materially different from its recorded value.

The Fry's notes  receivable  resulted  from the 1997 sale of certain  Incredible
Universe retail sites,  related fixed assets and inventory to Fry's Electronics,
Inc. ("Fry's"). Six stores were sold to Fry's for approximately $21.5 million in
cash and $97.4  million in notes  receivable.  At December 31,  2000,  the notes
receivable  balance was $9.1 million with  interest  rates ranging from 6.57% to
6.70% and maturity dates in 2001 and 2002.  RadioShack currently intends to hold
the notes until maturity.

Interest income earned,  including  accretion of discount if applicable,  on the
amounts  outstanding  during the three years ended  December 31, 2000,  1999 and
1998 was as follows:

                              Year Ended December 31,
                          ------------------------------
(In millions)               2000       1999       1998
------------              --------   --------   --------
CompUSA                   $  12.9    $  12.9    $   4.3
Fry's                         0.9        2.9        3.5
Other                         4.0        4.6        3.0
                          --------   --------   --------
Total interest income     $  17.8    $  20.4    $  10.8
                          ========   ========   ========

NOTE 5 - PROPERTY, PLANT AND EQUIPMENT ("PP&E")
The following  table outlines the ranges of estimated  useful lives and balances
of each major fixed asset category:



                                                                                December 31,
                                                  Range of                  -------------------
(In millions)                              Estimated Useful Life              2000       1999
------------                               ---------------------            --------   --------
                                                                              
Land                                               --                       $  18.1    $  18.2
Buildings                                      10 - 40 years                  194.2      183.6
Furniture, fixtures and equipment(1)            2 -15 years                   558.7      500.3
Leasehold improvements                Primarily, the shorter of the
                                     life of the improvements or the
                                      term of the related lease and
                                         certain renewal periods              351.4      333.5
                                                                            --------   --------
Total PP&E                                                                  1,122.4    1,035.6
Less accumulated depreciation and
amortization of capital leases                                               (665.6)    (588.8)
                                                                            --------   --------
PP&E, net                                                                   $ 456.8    $ 446.8
                                                                            ========   ========

(1)  Includes $22.1 million of  assets under capital leases at both December 31,
     2000 and December 31, 1999, respectively.


NOTE 6 - INDEBTEDNESS AND BORROWING FACILITIES
RadioShack's short-term credit facilities, including revolving credit lines, are
summarized in the accompanying  short-term borrowing facilities table below. The
method used to compute averages in the short-term  borrowing facilities table is
based on a daily weighted average computation which takes into consideration the
time  period  such  debt was  outstanding,  as well as the  amount  outstanding.
RadioShack's short-term debt primarily consists of short-term seasonal bank debt
and commercial paper. The commercial paper and the short-term seasonal bank debt
have a typical  maturity of 90 days or less. The amount of commercial paper that
could be outstanding during 2000 was limited to a maximum of $600.0 million.

In the second quarter of 2000,  RadioShack  increased its $200.0 million 364-day
revolving  credit facility to $300.0 million and also extended the maturity date
to June 2001. The terms of the 364-day  revolving credit facility remain similar
to the  previous  facility.  RadioShack  also  has a  $300.0  million  five-year
revolving credit facility  maturing June 2003. The revolving  credit  facilities
are used as backup for the commercial paper program and may also be utilized for
general corporate purposes.  Annual commitment fees for the facilities are 0.07%
of the  $300.0  million  364-day  facility  and  0.085%  of the  $300.0  million
multiyear facility, whether used or unused.

RadioShack  has a $300.0  million  Debt  Shelf  Registration  Statement  ("Shelf
Registration") which became effective in August 1997. In August 1997, RadioShack
issued $150.0 million of 10 year unsecured  notes under the Shelf  Registration.
The  interest  rate on the notes is 6.95% per annum  with  interest  payable  on
September 1 and March 1 of each year,  commencing  March 1, 1998.  The notes are
due September 1, 2007. In December 1997 and January 1998, RadioShack issued $4.0
million  and  $45.0  million,  respectively,  in  medium-term  notes  under  the
remaining $150.0 million Shelf Registration.  An additional $32.0 million, $37.0
million and $32.0  million of  medium-term  notes were  issued in January  1999,
August 1999 and September  1999,  respectively,  completing  the remaining  1997
Shelf  Registration.  RadioShack's  medium and long-term  notes  outstanding  at
December 31, 2000 under the 1997 Shelf Registration  totaled $300.0 million. The
interest  rates at  December  31,  2000 for the  outstanding  $150.0  million in
medium-term notes ranged from 6.09% to 7.35% with a weighted average coupon rate
of 6.6%. These medium-term notes have maturities ranging from 2001 to 2008.

RadioShack  established an employee stock ownership trust in June 1990.  Further
information  on the trust and its related  indebtedness,  which is guaranteed by
the Company, is detailed in the discussion of the Tandy Fund in Note 16.

Borrowings payable within one year are summarized in the accompanying short-term
debt table  below.  Short-term  debt at  December  31,  2000 and 1999  consisted
primarily of domestic seasonal borrowings.

Short-Term Debt
                                                               December 31,
                                                          --------------------
(In millions)                                               2000        1999
------------                                              --------    --------
Commercial paper, net of unamortized discount             $  346.6    $  146.8
Short-term bank debt                                         114.7        27.5
Current portion of long-term debt                              4.0          --
Current portion of capitalized lease obligations               5.5         5.1
Current portion of guarantee on TESOP indebtedness             7.8         9.5
                                                          --------    --------
Total short-term debt                                     $  478.6    $  188.9
                                                          ========    ========

Long-Term Debt
                                                               December 31,
                                                           --------------------
(In millions)                                                2000        1999
------------                                               --------    --------
Notes payable issued under the Shelf Registration,
 net of unamortized issuance costs of $4.9 million and
 $5.5 million, respectively                                $  145.1    $  144.5
Medium-term notes payable issued under the Shelf
 Registration, net of unamortized issuance costs of
 $0.4 million and $0.5 million, respectively                  149.6       149.5
Notes payable with interest rates at December 31, 2000
 ranging from 5.70% to 5.84%                                    6.1         6.1
Capital lease obligations (see Note 10)                         7.8        12.8
Guarantee of TESOP indebtedness (see Note 16)                  11.6        21.1
                                                           --------    --------
                                                              320.2       334.0
                                                           --------    --------

Less current portion of:
 Notes payable                                                  4.0          --
 Capital lease obligations                                      5.5         5.1
 Guarantee of TESOP indebtedness                                7.8         9.5
                                                           --------    --------
                                                               17.3        14.6
                                                           --------    --------
Total long-term debt                                       $  302.9    $  319.4
                                                           ========    ========


Long-term  borrowings and capital lease obligations  outstanding at December 31,
2000 mature as follows:

(In millions)
-----------------------------------------------------------------
2001..................................................   $   17.2
2002..................................................       87.5
2003..................................................       20.0
2004..................................................       39.3
2005..................................................         --
2006 and thereafter...................................      156.2
                                                         --------
Total.................................................   $  320.2
                                                         ========

The fair  value of  RadioShack's  long-term  debt of $312.4  million  (including
current portion,  but excluding capital leases) was approximately $298.7 million
at December 31, 2000.  The fair value was computed  using  interest  rates which
were in effect at December 31, 2000 for similar debt instruments.

Short-Term Borrowing Facilities
                                                      Year Ended December 31,
                                                  ------------------------------
(In millions)                                       2000       1999       1998
------------                                      --------   --------   --------
Domestic seasonal bank credit lines and
 bank money market lines:
 Lines available at year end                      $ 770.0    $ 955.0    $ 895.0
 Loans outstanding at year end                    $ 114.7    $  20.0    $  33.9
 Weighted average interest rate at year end           7.3%       6.5%       5.9%
 Weighted average loans outstanding               $  64.2    $  57.1    $  49.8
 Weighted average interest rate during year           7.0%       5.5%       5.7%

Short-term foreign credit lines:
 Lines available at year end                      $  76.5    $ 156.4    $ 156.4
 Loans outstanding at year end                         --        7.5        2.6
 Weighted average interest rate at year end           7.1%       7.1%       6.3%
 Weighted average loans outstanding               $   6.7    $   8.0    $   5.3
 Weighted average interest rate during year           6.8%       6.0%       6.1%

Letters of credit and banker's acceptance lines
 of credit:
 Lines available at year end                      $ 158.0    $ 232.3    $ 212.3
 Acceptances outstanding at year end                  --          --         --
 Letters of credit open against outstanding
  purchase orders at year end                     $  44.6    $  86.6    $  52.1

Commercial paper credit facilities:
 Commercial paper outstanding at year end         $ 346.6    $ 146.8    $ 179.0
 Weighted average interest rate at year end           7.5%       6.5%       6.0%
 Weighted average commercial paper outstanding    $ 346.9    $ 179.9    $ 120.6
 Weighted average interest rate during year           6.8%       5.5%       5.7%


NOTE 7 - ACCRUED EXPENSES
                                                       December 31,
                                                  -------------------
(In millions)                                       2000       1999
------------                                      --------   --------
Payroll and bonuses                               $   98.1   $   96.1
Sales and payroll taxes                               37.3       38.5
Insurance                                             69.0       64.5
Other                                                125.7      151.7
                                                  --------   --------
Total accrued expenses                            $  330.1   $  350.8
                                                  ========   ========

NOTE 8 - INCOME TAXES

Deferred  tax assets  and  liabilities  as of  December  31,  2000 and 1999 were
comprised of the following:

                                                     December 31,
                                                  -------------------
(In millions)                                       2000       1999
------------                                      --------   --------
Deferred tax assets
Bad debt reserve                                  $    2.4   $    1.1
Restructuring reserves                                 4.2        5.5
Restricted stock                                        --        5.1
Insurance reserves                                    22.4       21.4
Depreciation and amortization                         19.1       16.9
Other                                                 51.7       49.8
                                                  --------   --------
  Total deferred tax assets                           99.8       99.8
                                                  --------   --------
Deferred tax liabilities
Inventory adjustments, net                            10.1        5.4
Deferred taxes on foreign operations                   9.1        8.2
Other                                                  3.1        3.0
                                                  --------   --------
  Total deferred tax liabilities                      22.3       16.6
                                                  --------   --------
Net deferred tax assets                           $   77.5   $   83.2
                                                  ========   ========

The net deferred tax asset is classified as
follows:
  Other current assets                            $   15.6   $   34.6
  Noncurrent assets                                   61.9       48.6
                                                  --------   --------
Net deferred tax assets                           $   77.5   $   83.2
                                                  ========   ========

The  components of the provision  for income taxes and a  reconciliation  of the
U.S.  statutory tax rate to RadioShack's  effective income tax rate are given in
the accompanying tables.

Income Tax Expense
                                 Year Ended December 31,
                              ------------------------------
(In millions)                   2000       1999       1998
------------                  --------   --------   --------
Current
  Federal                     $  187.3   $  139.3   $   87.5
  State                           28.1       17.1       14.5
  Foreign                          4.5        3.6        2.4
                              --------   --------   --------
                                 219.9      160.0      104.4
                              --------   --------   --------

Deferred
  Federal                          5.4       18.5      (55.0)
  State                            0.3        4.1      (11.0)
  Foreign                           --         --         --
                              --------   --------   --------
                                   5.7       22.6      (66.0)
                              --------   --------   --------
Provision for income taxes    $  225.6   $  182.6   $   38.4
                              ========   ========   ========


Statutory vs. Effective Tax Rate
                                                   Year Ended December 31,
                                                ------------------------------
(In millions)                                     2000       1999       1998
------------                                    --------   --------   --------
Components of income from
 Continuing operations:
  United States                                 $  568.4   $  458.8   $   85.4
  Foreign                                           25.2       21.7       14.3
                                                --------   --------   --------
Income before income taxes                         593.6      480.5       99.7
Statutory tax rate                               x 35.0%    x 35.0%    x 35.0%
                                                --------   --------   --------
Federal income tax expense at statutory rate       207.8      168.2       34.9
State income taxes, net of federal benefit          18.5       13.8        2.2
Other, net                                          (0.7)       0.6        1.3
                                                --------   --------   --------
Total income tax expense                        $  225.6   $  182.6   $   38.4
                                                ========   ========   ========
Effective tax rate                                 38.0%      38.0%      38.5%
                                                ========   ========   ========

Management anticipates generating enough pre-tax income in the future to realize
the full  benefit  of U.S.  deferred  tax assets  related  to future  deductible
amounts.  Accordingly,  a valuation  allowance  was not required at December 31,
2000 or 1999.

NOTE 9 - TREASURY STOCK REPURCHASE PROGRAM
On December  14, 2000,  RadioShack  announced  that its Board of  Directors  had
authorized  management to purchase up to 10.0 million  additional  shares of its
common  stock  with a new  share  repurchase  program,  upon  completion  of its
existing  60.0 million share  program in December  2000.  The new program has no
expiration  date.  During 2000, 3.4 million shares were  repurchased  for $167.4
million under both programs, including 0.1 million shares for $6.6 million under
the new 10.0 million share program.

Additionally,  on  October  26,  1998,  RadioShack  announced  that its Board of
Directors  had  authorized  the  repurchase  of up to  10.0  million  shares  of
RadioShack's  common stock for an indefinite period of time to be used to offset
the dilution of grants under  RadioShack's  incentive stock plans (see Note 13).
Approximately  3.0 million shares were  repurchased in 2000 for $144.4  million,
bringing the total share  repurchases at December 31, 2000 under this program to
10.0 million shares totaling  $398.9 million.  No more shares may be repurchased
under this program.

The  purchases  under  the  share  repurchase  programs  described  above are in
addition to the shares  required for employee  stock purchase  plans,  which are
purchased throughout the year.

NOTE 10 - COMMITMENTS AND CONTINGENT LIABILITIES
RadioShack  has  various   claims,   lawsuits,   disputes  with  third  parties,
investigations and pending actions involving allegations of negligence,  product
defects,  discrimination,  infringement of  intellectual  property  rights,  tax
deficiencies, violations of permits or  licenses and breach of contract, various
labor related claims and other matters against  RadioShack and its  subsidiaries
incident to the operation of its business.  The  liability,  if any,  associated
with  these  matters  was  not  determinable  at  December  31,  2000.  Although
occasional  adverse  settlements or resolutions may occur and negatively  impact
earnings in the year of settlement,  it is the opinion of management  that their
ultimate  resolution  will not have a materially  adverse effect on RadioShack's
financial position or cash flows.

RadioShack leases rather than owns most of its facilities. The RadioShack stores
comprise the largest portion of the Company's leased facilities.  The RadioShack
stores are located  primarily in major shopping malls and shopping centers owned
by other companies.  Some leases are based on a minimum rental plus a percentage
of the store's  sales in excess of a  stipulated  base figure.  RadioShack  also
leases  distribution  centers and office  space.  In  addition,  RadioShack  has
capital leases related to its computer and operating systems.

Future  minimum  rent  commitments  at  December  31,  2000  for  all  long-term
noncancelable  leases (net of  immaterial  amounts of sublease  rent income) are
included in the following table.

(In millions)                        Operating Leases        Capital Leases
------------                         ----------------        --------------
2001................................     $ 155.7                $  5.7
2002................................       140.7                   2.4
2003................................        99.3                    --
2004................................        72.3                    --
2005................................        46.6                    --
2006 and thereafter.................        64.9                    --
                                                                --------
Total minimum lease payments...............................        8.1
Less:  Amount representing interest........................       (0.3)
                                                                --------
Present value of net minimum lease payments................     $  7.8
                                                                ========

Future  minimum  rent  commitments  in  the  table  above  exclude  future  rent
obligations  associated  with stores closed  pursuant to the 1996  restructuring
plan. Estimated payments to settle future rent obligations associated with these
stores have been accrued in the restructuring reserve (see Note 12).

Rent Expense
                                       Year Ended December 31,
                                   ------------------------------
(In millions)                        2000       1999       1998
------------                       --------   --------   --------
Minimum rents                      $  210.3   $  201.7   $  216.5
Contingent rents                        4.9        3.8        3.0
Sublease rent income                     --         --       (2.1)
                                   --------   --------   --------
Total rent expense                 $  215.2   $  205.5   $  217.4
                                   ========   ========   ========

NOTE 11 - SALE OF COMPUTER CITY, INC.
On August 31, 1998,  RadioShack  completed  the sale of 100% of the  outstanding
common  stock of its  Computer  City  subsidiary  to CompUSA,  in exchange for a
subordinated  note for  $136.0  million  and cash of $36.5  million.  RadioShack
recognized  a loss of $108.2  million  in 1998 from the sale of  Computer  City,
which included  certain  liabilities  and  contractual  obligations  incurred by
RadioShack. From January 1, 1998 through August 31, 1998, Computer City recorded
$1,196.7  million  of net sales and  operating  revenues  and $95.6  million  in
operating  losses,  which are  included in the  accompanying  1998  Consolidated
Statement of Income.

NOTE 12 - 1996 BUSINESS RESTRUCTURING
In 1996 and 1997, the Company initiated certain restructuring  programs in which
a number of McDuff,  Computer City and  Incredible  Universe  retail stores were
closed. The Company still has certain real estate obligations related to some of
these stores.  At December 31, 2000, 1999 and 1998,  respectively,  this accrual
totaled $11.0 million,  $14.5 million and $20.2  million.  During 2000 and 1998,
additional  provisions  of $0.8 million and $6.5 million  were  recorded,  while
costs of $4.3  million,  $5.7  million and $14.9  million  were  charged to this
liability in 2000, 1999 and 1998, respectively.

NOTE 13 - STOCK OPTIONS AND PERFORMANCE AWARDS
RadioShack  has  implemented  several  plans  to  award  employees   stock-based
compensation.  Under the Incentive  Stock Plans ("ISPs")  described  below,  the
exercise price of options must be equal to or greater than the fair market value
on the date of grant.  The 1993,  1997 and 1999 ISPs each terminate on the tenth
anniversary of the day which precedes its adoption date by the Board;  no option
or award  may be  granted  under  the  ISPs  after  the  termination  date.  The
Organization and Compensation  Committee (the  "Committee")  specifies the terms
for grants of options under these ISPs; terms of these options may not exceed 10
years.  Grants of options  generally  vest over three years.  Option  agreements
issued  under  the ISPs  generally  provide  that,  in the  event of a change in
control, all options become immediately and fully exercisable.

The  1993,  1997 and 1999  ISPs  specify  that  each  non-employee  director  of
RadioShack will receive a grant of nonstatutory stock options (options which are
not incentive  stock  options)  ("NSOs") for 16,000 shares of RadioShack  common
stock on the first business day of September of each year ("Director  Options").
However, Director Option grants are not made under more than one ISP in the same
year. New directors  upon election or appointment  will receive a one-time grant
of 20,000  shares at the time they attend  their first Board  meeting.  Director
Options under the 1993 and 1997 ISPs have an exercise  price of 100% of the fair
market value of RadioShack  common stock on the trading day prior to the date of
grant. Director Options under the 1999 ISP have an exercise price of 100% of the
fair market value of a share of RadioShack common stock on the date of grant. If
a grant is made under the 1999 ISP on a non-trading  date, the closest  previous
trading date is used.  Under the three ISPs,  one-third of the Director  Options
shares vest annually on each of the first three anniversary dates of the date of
grant and shares expire 10 years after the date of grant.

A brief description of each Company stock plan follows:

    1985 Stock Option Plan ("1985 SOP") -  Under  the  1985  SOP,  as   amended,
    options to acquire up to 8.0 million  shares  of RadioShack's  common  stock
    were  authorized  to  be  granted  to  officers and key management employees
    of RadioShack.  The 1985 SOP terminated in 1995 and no further grants may be
    made under this plan.

    1993  Incentive Stock Plan ("1993 ISP") -  The 1993 ISP permits the grant of
    up to 12.0 million shares  in the  form of incentive stock options ("ISOs"),
    NSOs, restricted stock, performance units or performance shares.  There were
    687,382 shares available on December 31, 2000 for grants under the 1993 ISP.

    1994  Stock Incentive Plan ("1994 SIP") -  On  July  30,  1999,   RadioShack
    acquired AmeriLink Corporation,  which  provides  services to the Company as
    RadioShack  Installation  Services ("RSIS").   As  part  of  the purchase of
    AmeriLink,  the  Company agreed to assume the existing AmeriLink Corporation
    1994 Stock  Incentive  Plan  and  certain  related agreements and to convert
    AmeriLink's stock options to RadioShack  stock options, subject to an agreed
    upon exchange ratio and conversion price.  Thus, the AmeriLink 1994  SIP was
    assumed and adopted by the Company in 1999.  All shares in the 1994 SIP were
    fully vested on the  date  of  transition  and no further grants may be made
    under this plan.  There were certain restricted  stock  agreements that were
    also assumed by RadioShack at the time of acquisition.

    1997 Incentive Stock Plan ("1997 ISP") - The  1997  ISP permits the grant of
    up  to  11.0 million  shares  in the  form of  ISOs, NSOs, restricted stock,
    performance units or performance shares.  The  1997  ISP  provides  that the
    maximum  number  of  shares  of  RadioShack  common  stock  that an eligible
    employee  may  receive  in  any  calendar  year  in  respect  to options and
    performance awards may not exceed  1.0 million  shares.  The  maximum dollar
    amount  of cash or the  fair market value of shares of RadioShack stock that
    an  eligible  employee  may  receive  in  any  calendar  year  in respect of
    performance units may not exceed $1.5 million.   There were 2,565,529 shares
    available on December 31, 2000 for grants under the 1997 ISP.

    1999 Incentive Stock Plan ("1999 ISP") -  In  February 1999,  the  Board  of
    Directors authorized the adoption of the 1999 ISP.  The 1999 ISP permits the
    grant  of  up  to  9.5 million  shares  in  the  form of NSOs to broad based
    employee groups,  primarily RadioShack's  5,000 plus  store managers and  to
    other eligible employees and  non-employee  directors.  Grants of restricted
    stock, performance awards and options intended to qualify as incentive stock
    options  under  the  Internal Revenue Code are not authorized under the 1999
    ISP.   In addition,  repricing of outstanding options is not permitted under
    the 1999 ISP.  The 1999 ISP provides  that  the  maximum number of shares of
    RadioShack  common  stock  that  an  eligible  employee  may  receive in any
    calendar year in respect to options may not exceed 1.0 million shares. There
    were 4,148,557  shares  available  on December 31, 2000 for grants under the
    1999 ISP.


Stock  Option  Activity:  See  tables  below  for  a  summary  of  stock  option
transactions  under the Company's stock option plans and information about fixed
price stock options.

Summary of Stock Option Transactions



(Share amounts in thousands)              2000                 1999                    1998
---------------------------       -------------------    -------------------    -------------------
                                             Weighted               Weighted               Weighted
                                              Average                Average                Average
                                             Exercise               Exercise               Exercise
                                   Shares     Price       Shares     Price       Shares     Price
                                  --------   --------    --------   --------    --------   --------
                                                                         
Outstanding at beginning of year   12,747    $  29.29     10,154    $  17.07      8,892    $  11.68
Grants                              5,003       41.58      6,240       40.41      3,882       24.97
Exercised                          (1,568)      15.55     (3,316)      12.61     (2,480)      10.00
Forfeited                          (1,003)      35.90       (331)      31.14       (140)      19.01
                                  --------               --------               --------
Outstanding at end of year         15,179    $  34.33     12,747    $  29.29     10,154    $  17.07
                                  ========               ========               ========

Exercisable at end of year          5,396    $  25.61      3,449    $  16.05      4,648    $  11.88
                                  ========               ========               ========
Weighted average fair value of
 options granted during the year  $ 17.79                $ 13.94                $  6.74
                                  ========               ========               ========


Fixed Price Stock Options



(Share amounts
  in thousands)                 Options Outstanding                          Options Exercisable
--------------     ------------------------------------------------      ----------------------------
                                      Weighted
                      Shares          Average           Weighted           Shares         Weighted
    Range of        Outstanding      Remaining           Average         Exercisable       Average
Exercise Prices     at 12/31/00   Contractual Life   Exercise Price      at 12/31/00   Exercise Price
---------------     -----------   ----------------   --------------      -----------   --------------
                                                                           
$ 7.05 - 24.78         2,710        5.66 years          $ 14.29             2,383         $ 13.90
 25.00 - 27.50         2,553        7.23                  25.17             1,534           25.14
 28.02 - 39.03         4,180        8.34                  32.75               372           28.84
 42.41 - 47.39         2,520        8.97                  46.07                76           46.68
 48.69 - 69.34         3,216        8.17                  51.32             1,031           50.66
                    -----------                                          -----------
$ 7.05 - 69.34        15,179        7.74 years          $ 34.33             5,396         $ 25.61
                    ===========                                          ===========


Restricted Stock: The Company may also use restricted stock grants to compensate
certain  employees of the Company.  As of December 31, 2000,  101,710  shares of
restricted stock were outstanding,  but not fully vested.  Compensation  expense
related to restricted shares is recognized over the related service period. This
expense  totaled  $1.2 million,  $12.6 million and $83.2  million  for the years
ended December 31, 2000, 1999 and 1998, respectively.

    Store Manager Restricted Stock Grants - On February 1, 1997, in an effort to
    reduce  the  turnover rate  among its  store managers and to align the store
    managers'  interests  and  goals with those of the  shareholders, RadioShack
    granted  approximately  4,082,400  restricted stock awards consisting of 800
    shares  each  to 4,907 RadioShack store managers and 1,600 shares each to 98
    Computer City store managers.  The February 1997 restricted stock awards had
    a weighted average fair market value of $11.30 per share when granted.  This
    restricted  stock was to  vest at the end of five years on February 2, 2002,
    if managers  receiving  the  grants  were  employed by RadioShack at a store
    manager or higher position, at that time.  However, the grants provided that
    the restricted shares would vest early if RadioShack's common  stock  closed
    at $16.90625  or more for any 20 consecutive trading days beginning February
    1, 1999.  At December 31, 1998,  it was  probable  that the 2,579,200 shares
    that  remained  outstanding  under  this  grant  would  vest under the early
    vesting  provisions  and,  as a result,  a charge to compensation expense of
    $82.6 million, including related payroll taxes, was recorded in the December
    31, 1998 financial statements.

    On  February 1, 1998,  RadioShack  granted  approximately 649,500 restricted
    stock  awards  consisting  of  500  shares  each  to  1,299 RadioShack store
    managers not included in the February 1, 1997  grant  described  above.  The
    February  1998  restricted  stock  awards had a weighted average fair market
    value of $19.61 per  share when granted.  This restricted stock grant was to
    vest at the end of five years on February 2, 2003, if managers receiving the
    grants were employed by RadioShack at a store manager or higher position, at
    that time.   However,  the grants  provided that the restricted shares would
    vest early if the RadioShack common stock closed at $29.0625 or more for any
    20  consecutive  trading  days beginning February 1, 2000.   At December 31,
    1999, it was probable that the 348,000 restricted stock awards that remained
    outstanding under this grant would vest under early vesting provisions.  The
    resulting charge to compensation expense of $14.7 million, including related
    payroll taxes, was recorded in the December 31, 1999 financial statements.

    Other Grants - In 1997,  the  Committee granted a total of 56,000 shares  of
    restricted stock awards to  three  executive officers.   These awards vested
    ratably over 3 years and were fully vested in 2000.  In  1998, the Committee
    granted  a  total  of  172,000  shares  of  restricted stock awards to three
    executive  officers.   Of these awards,  100,000  shares vest ratably over 3
    years and will fully vest in 2001.  The  remaining  72,000 shares awarded to
    one officer were to vest on October 23, 2005; however, shares in  blocks  of
    24,000  would  vest  earlier  if RadioShack's  common  stock  price exceeded
    certain levels for 15  consecutive trading days.  All 72,000 of these shares
    vested in 1999.  In 1999, the Committee granted  10,000 shares of restricted
    stock awards to two executive officers.  These awards  vest  ratably  over 3
    years; 4,000 of these awards were cancelled in 2000.  In 2000, the Committee
    granted a total of 66,712  shares of restricted stock awards to 38 executive
    officers  and  these  awards  vest  ratably  over  3  years,  subject to the
    achievement of certain performance targets each year.

Pro Forma Information:  Pro forma information  regarding net income and earnings
per  share as  required  by FAS 123 has been  determined  as if  RadioShack  had
accounted for its employee stock options and  restricted  stock awards under the
fair value method of that statement. The fair value of each option or restricted
stock  award  is  estimated  on  the  date  of  grant  using  the  Black-Scholes
option-pricing  model.  The weighted  average  assumptions used for stock option
grants in 2000, 1999 and 1998 were,  respectively:  expected  dividend yields of
1.6%, 1.7% and 1.6%; expected  volatilities of 37.1%, 30.9% and 24.3%; risk free
interest  rates of 6.5%,  5.5% and 4.5% and  expected  lives of six  years.  The
weighted  average  assumptions used for restricted stock grants in 1998 and 1997
were: expected dividend yields of 1.6% and 1.7%; expected  volatilities of 24.8%
and 25.9%;  risk free interest rates of 5.4% and 6.3% and expected lives of five
years.

For purposes of pro forma  disclosures,  the estimated fair value of the options
and  restricted  stock awards is  amortized to expense over the vesting  period.
RadioShack's pro forma information follows:



                                                            Year Ended December 31,
(In millions, except          ----------------------------------------------------------------------------
per share amounts)                      2000                      1999                     1998
-------------------           ----------------------     ----------------------     ----------------------
                              As Reported  Pro Forma     As Reported  Pro Forma     As Reported  Pro Forma
                              -----------  ---------     -----------  ---------     -----------  ---------
                                                                               
Net income available to
 common shareholders          $ 362.7      $ 327.6       $  292.4     $  269.0      $   55.5     $   80.4

Net income available per
 common share:
    Basic                     $  1.94      $  1.75       $   1.51     $   1.38      $   0.28     $   0.40
    Diluted                   $  1.84      $  1.67       $   1.43     $   1.32      $   0.27     $   0.39


NOTE 14 - DEFERRED COMPENSATION PLANS
In September  1997, the Executive  Committee of the Board of Directors  approved
the Executive  Deferred  Compensation Plan and the Executive Deferred Stock Plan
("Compensation  Plans"),  which became  effective on April 1, 1998.  These plans
permit  employees who are  corporate or division  officers to defer up to 80% of
their base salary and/or  bonuses.  Certain  executive  officers may defer up to
100% of their base salary and/or bonuses. In addition, officers are permitted to
defer  any  restricted  stock or NSO  gains  that  would  otherwise  vest.  Cash
deferrals  may be made in  RadioShack  common  stock or mutual  funds;  however,
restricted stock and NSO gains may only be made in RadioShack  common stock. The
Company  matches  12% of salary and bonus  deferrals  in the form of  RadioShack
common  stock.  RadioShack  will  match an  additional  25% of salary  and bonus
deferrals  if the  deferral  period  exceeds  five years and the  deferrals  are
invested in RadioShack  common stock.  Payment of deferrals will be made in cash
and RadioShack common stock in accordance with the employee's  specifications at
the time of the  deferral;  payments  may be received in a lump sum or in annual
installments not to exceed 20 years.

Contributions  from the  Company to the  Compensation  Plans for the years ended
December 31, 2000,  1999 and 1998  totaled $1.3  million,  $1.0 million and $0.6
million, respectively.

NOTE 15 - COMPANY STOCK PLAN
Eligible  employees may contribute 1% to 7% of annual  compensation  to purchase
RadioShack  common stock at the monthly average daily closing price.  RadioShack
matches 40%, 60% or 80% of the employee's contribution,  depending on the length
of the employee's continuous  participation in the Stock Plan. The Company match
is also for the purchase of RadioShack common stock. RadioShack's  contributions
to the Stock Plan were $16.7  million,  $15.6  million and $14.5 million for the
years ended December 31, 2000, 1999 and 1998, respectively.

NOTE 16 - TANDY FUND
The Tandy Fund ("Plan") is a defined  contribution plan.  Eligible employees may
direct their contributions into various investment options,  including investing
in RadioShack common stock.  Participants may defer, via payroll deductions,  1%
to 8% of annual  compensation.  Contributions  per  participant  are  limited to
certain  annual  maximums  permitted  by  the  Internal  Revenue  Code.  Company
contributions  are made directly to the Plan through the Tandy  Employees  Stock
Ownership Plan ("TESOP") portion of the Plan. The TESOP is a leveraged  employee
stock ownership plan.  Participants become fully vested in Company contributions
upon the  earlier  to occur of five years of service  with  RadioShack  or three
years of participation in the Plan.

TESOP  Portion of the Plan:  On July 31, 1990,  the trustee of the Plan borrowed
$100.0 million at an interest rate of 9.34%, which was paid off on June 30, 2000
("TESOP  Notes").  The Plan trustee  used the proceeds  from the issuance of the
TESOP Notes to purchase 100,000 shares of TESOP Preferred Stock from the Company
at a price of $1,000 per share.  In  December  1994,  the Plan  entered  into an
agreement with an unrelated  third party to refinance up to $16.7 million of the
TESOP Notes in a series of six annual notes,  beginning December 30, 1994. As of
December  31,  1999,  the  Plan  had  borrowed  all of the  $16.7  million  (the
"Refinanced  Notes") in a series of six notes at  interest  rates  ranging  from
5.84% to 8.76% to refinance the TESOP Notes. As of December 31, 2000, RadioShack
had repaid the first  refinanced note totaling $5.1 million.  The maturity dates
of the remaining five notes range from December 2001 to December 2002.  Dividend
payments and contributions  received by the Plan from RadioShack will be used to
repay the indebtedness.

Each  share of TESOP  Preferred  Stock is  convertible  into  87.072  shares  of
RadioShack common stock. The annual cumulative dividend on TESOP Preferred Stock
is $75.00 per share,  payable  semiannually.  Because the Company has guaranteed
the repayment of the TESOP Notes and the Refinanced  Notes,  the indebtedness of
the  Plan  is  recognized  as  a  long-term   obligation  in  the   accompanying
Consolidated  Balance  Sheets.  An  offsetting  charge  has  been  made  in  the
stockholders' equity section of the accompanying  Consolidated Balance Sheets to
reflect unearned deferred compensation related to the Plan.

Compensation and interest  expenses related to the Plan before the reduction for
the allocation of dividends are presented below for each year ended December 31:

(In millions)                  2000       1999       1998
------------                 --------   --------   --------
Compensation expense         $   7.8    $   8.7    $  10.2
Interest expense                 1.4        2.3        3.4

Until both the TESOP  Notes and  Refinanced  Notes  have been paid in full,  the
TESOP Preferred Stock will be allocated to the participants  annually,  based on
the  total  debt  service  made on the  indebtedness.  As  shares  of the  TESOP
Preferred  Stock are  allocated to Plan  participants,  compensation  expense is
recorded and unearned deferred compensation is reduced.  Interest expense on the
TESOP Notes and Refinanced  Notes is also  recognized as a cost of the Plan. The
compensation component of the Plan expense is reduced by the amount of dividends
accrued  on the  TESOP  Preferred  Stock,  with any  dividends  in excess of the
compensation expense reflected as a reduction of interest expense.

Contributions  by RadioShack to the Plan for the years ended  December 31, 2000,
1999  and  1998  totaled  $10.9  million,   $12.0  million  and  $14.7  million,
respectively,  including  dividends  paid on the TESOP  Preferred  Stock of $5.3
million, $5.5 million and $5.8 million, respectively.

As of  December  31,  2000,  91,259  of the  original  100,000  shares  of TESOP
Preferred  Stock  had been  released  to  participants'  accounts  in the  Plan,
including  31,181 shares of the TESOP  Preferred Stock  previously  withdrawn by
participants.  The remaining 8,741 shares of TESOP Preferred Stock are available
for later release and  allocation to  participants'  accounts over the remaining
life of the TESOP  Notes and  Refinanced  Notes.  The  appraised  value of these
remaining  shares was $32.9  million at December 31, 2000.  The TESOP  Preferred
Stock has certain  liquidation  preferences  and may be  redeemed  after July 1,
1994, at specified premiums. As of March 31, 2000, 83,686 of the 91,259 released
TESOP Preferred Stock shares had been allocated to participants'  Plan accounts.
The  remaining  released  7,573  shares  are to be  allocated  to  participants'
accounts on March 31, 2001, the Plan's annual allocation date.

NOTE 17 - PREFERRED SHARE PURCHASE RIGHTS
In August 1986,  the Board of Directors  adopted a  stockholder  rights plan and
declared a dividend of one right for each outstanding share of RadioShack common
stock.  This plan was amended and restated on July 24, 1999. The rights plan, as
amended and  restated,  will expire on July 26, 2009.  The rights are  currently
represented   by  the  common  stock   certificates.   When  the  rights  become
exercisable,  they will entitle each holder to purchase 1/10,000th of a share of
RadioShack Series A Junior  Participating  Preferred Stock for an exercise price
of $250 (subject to  adjustment).  The rights will become  exercisable  and will
trade separately from the common stock only upon the date of public announcement
that  a  person,  entity  or  group  ("Person")  has  acquired  15% or  more  of
RadioShack's  outstanding  common  stock  without the consent or approval of the
disinterested  directors ("Acquiring Person") or ten days after the commencement
or public  announcement  of a tender or exchange offer which would result in any
Person  becoming an Acquiring  Person.  In the event that any Person  becomes an
Acquiring  Person,  the rights will be  exercisable  for 60 days  thereafter for
RadioShack  common  stock with a market  value (as  determined  under the rights
plan) equal to twice the  exercise  price.  In the event that,  after any Person
becomes  an   Acquiring   Person,   RadioShack   engages  in  certain   mergers,
consolidations,  or sales of assets  representing  50% or more of its  assets or
earning  power with an  Acquiring  Person (or Persons  acting on behalf of or in
concert  with an  Acquiring  Person) or in which all holders of common stock are
not  treated  alike,  the rights  will be  exercisable  for common  stock of the
acquiring or surviving  company  with a market  value (as  determined  under the
rights  plan)  equal  to  twice  the  exercise  price.  The  rights  will not be
exercisable  by any Acquiring  Person.  The rights are  redeemable at a price of
$0.01 per right  prior to any Person  becoming  an  Acquiring  Person or,  under
certain circumstances, after a Person becomes an Acquiring Person.

NOTE 18 - TERMINATION PROTECTION PLANS
In  August  1990  and in May  1995,  RadioShack's  Board of  Directors  approved
termination protection plans and amendments to the termination protection plans,
respectively. These plans provide for defined termination benefits to be paid to
eligible  employees  of  RadioShack  who have been  terminated,  without  cause,
following a change in control of the Company (as  defined).  In addition,  for a
certain  period  of time  following  employee  termination,  RadioShack,  at its
expense,  must continue to provide on behalf of the terminated  employee certain
employment benefits. In general,  during the twelve months following a change in
control,  RadioShack may not terminate or change existing employee benefit plans
in any way,  which would  affect  accrued  benefits or decrease  the rate of the
RadioShack's contribution to the plans.

NOTE 19 - SUPPLEMENTAL CASH FLOW INFORMATION
Cash flows from operating activities included cash payments as follows:

                                Year Ended December 31,
                            ------------------------------
(In millions)                 2000       1999       1998
------------                --------   --------   --------

Interest paid               $   54.0   $   35.2   $   46.9
Income taxes paid              169.0       81.8       84.2

RadioShack received a subordinated  unsecured note for $136.0 million in 1998 as
partial payment on the sale of Computer City to CompUSA.

NOTE 20 - RELATIONS WITH INTERTAN
InterTAN, Inc. ("InterTAN"), the former foreign retail operations of RadioShack,
was spun off to RadioShack  stockholders as a tax-free  dividend in fiscal 1987.
Under the terms of a  merchandise  agreement  reached  with  InterTAN in October
1993, as amended, InterTAN may purchase, on payment terms, certain products sold
or  secured  by  the  Company.   RadioShack  International  Procurement  Limited
Partnership ("RSIP"), which is 100% owned by RadioShack and its subsidiaries, is
and will continue to be the exclusive  purchasing agent for products originating
in Asia for InterTAN. RSIP receives commission income for this service.  License
agreements, as amended, also provide a royalty payable to RadioShack.  The table
below  summarizes the income  components  generated from operations  relative to
InterTAN:

                                       Year Ended December 31,
                                   ------------------------------
(In millions)                        2000       1999       1998
------------                       --------   --------   --------
Sales and commission income        $    5.2   $    5.7   $    7.5
Royalty income                          5.4        7.2        5.5
                                   --------   --------   --------
Total income                       $   10.6   $   12.9   $   13.0
                                   ========   ========   ========

NOTE 21 - QUARTERLY DATA (UNAUDITED)
As RadioShack's  operations are predominantly  retail oriented,  its business is
subject to seasonal  fluctuations  with the  December 31 quarter  being the most
significant  in terms of sales and  profits  because  of the  Christmas  selling
season.

RadioShack  recorded a provision of $14.7 million  related to  restricted  stock
awards for  RadioShack  store  managers  (see Note 13) in the fourth  quarter of
1999.



Quarterly Data (Unaudited)



                                                     Three Months Ended
                                          -----------------------------------------
(In millions, except per share amounts)   March 31    June 30   Sept. 30    Dec. 31
----------------------------------------  --------   --------   --------   --------
                                                               
Year ended December 31, 2000:
Net sales and operating revenues          $1,047.3   $1,023.3   $1,140.4   $1,583.7

Gross profit                              $  516.0   $  533.6   $  565.4   $  754.6

Net income                                $   69.7   $   75.4   $   77.1   $  145.8

Preferred dividends                       $    1.4   $    1.3   $    1.3   $    1.3

Net income available to common
  shareholders                            $   68.3   $   74.1   $   75.8   $  144.5

Net income available per common
  share:

    Basic                                 $   0.36   $   0.40   $   0.41   $   0.77

    Diluted                               $   0.35   $   0.38   $   0.39   $   0.74

Shares used in computing earnings per
  common share:

    Basic                                    188.9      187.0      186.7      186.6

    Diluted                                  198.9      197.2      197.8      196.5

Dividends declared per common share       $  0.055   $  0.055   $  0.055   $  0.055


Year ended December 31, 1999:
Net sales and operating revenues          $  890.2   $  886.7   $  960.3   $1,389.0

Gross profit                              $  450.7   $  468.0   $  486.4   $  678.4

Net income                                $   55.9   $   61.6   $   59.8   $  120.6

Preferred dividends                       $    1.4   $    1.4   $    1.4   $    1.3

Net income available to common
  Shareholders                            $   54.5   $   60.2   $   58.4   $  119.3

Net income available per common
  share:

    Basic                                 $   0.28   $   0.31   $   0.30   $   0.61

    Diluted                               $   0.27   $   0.30   $   0.29   $   0.58

Shares used in computing earnings per
  common share:

    Basic                                    194.4      194.0      194.3      194.1

    Diluted                                  203.8      204.7      205.4      205.6

Dividends declared per common share       $  0.050   $  0.050   $  0.050   $  0.055




                             RADIOSHACK CORPORATION
                                INDEX TO EXHIBITS



Exhibit                                                                           Sequential
Number *       Description                                                         Page No.
                                                                               

3a             Certificate of Amendment of Restated Certificate of Incorporation
               dated May 18, 2000 (Filed as Exhibit 3a to RadioShack's Form 10-Q
               filed on August 11, 2000 for the fiscal quarter  ended  June  30,
               2000 and incorporated herein by reference).

3a(i)          Restated  Certificate of Incorporation of RadioShack  Corporation
               dated July 26, 1999 (filed as  Exhibit 3a(i) to RadioShack's Form
               10-Q  filed  on August 11, 1999 for the fiscal quarter ended June
               30, 1999 and incorporated herein by reference).

3a(ii)         Certificate of Elimination of Series C Conversion Preferred Stock
               of RadioShack Corporation   dated July 26, 1999 (filed as Exhibit
               3a(ii) to RadioShack's Form 10-Q filed on August 11, 1999 for the
               fiscal  quarter  ended  June 30, 1999  and incorporated herein by
               reference).

3a(iii)        Amended  Certificate  of Designations,  Preferences and Rights of
               Series A  Junior  Participating  Preferred  Stock  of  RadioShack
               Corporation  dated  July 26, 1999  (filed  as Exhibit  3a(iii) to
               RadioShack's Form 10-Q filed on August 11, 1999  for  the  fiscal
               quarter  ended  June 30, 1999  and  incorporated  herein  by
               reference).

3a(iv)         Certificate  of  Designations  of  Series  B  TESOP   Convertible
               Preferred Stock dated June 29, 1990 (filed as Exhibit 4A to
               RadioShack's  1993  Form  S-8  for  the  RadioShack  Corporation
               Incentive  Stock  Plan,  Reg. No. 33-51603, filed on November 12,
               1993 and incorporated herein by reference).

3b             RadioShack  Corporation  Bylaws,  amended and restated as of July
               22, 2000 (filed as Exhibit 3b to  RadioShack's Form 10-Q filed on
               August  11,  2000 for the  fiscal quarter ended June 30, 2000 and
               incorporated herein by reference).

4a             Amended and Restated  Rights Agreement  dated as of July 26, 1999
               (filed  as  Exhibit  4a to RadioShack's Form 10-Q filed on August
               11, 1999  for  the  fiscal  quarter  ended  June 30, 1999  and
               incorporated herein by reference).

10a            Revolving Credit Agreement (Facility A) dated as of June 25, 1998
               among RadioShack Corporation,  NationsBank,  N.A.,  as Agent  and
               Lender, Citibank, N.A., as Syndication Agent and Lender, Bank  of
               America  National  Trust &  Savings Association, as Documentation
               Agent and Lender, BankBoston, N.A., Co-Agent and Lender, The Bank
               of New York, Co-Agent and Lender, First Union National  Bank, Co-
               Agent and Lender,  Fleet National Bank,  Co-Agent and  Lender and
               twelve other banks as Lenders  (filed  as  Exhibit  4b  to
               RadioShack's  Form  10-Q filed  on August 13, 1998 for the fiscal
               quarter  ended  June  30,  1998  and  incorporated  herein  by
               reference).

10b            First  Amendment to Revolving Credit Agreement (Facility A) dated
               as of June 24, 1999 among RadioShack  Corporation,   NationsBank,
               N.A. as Agent and Lender, Citibank, N.A. as Syndication Agent and
               Lender,  The  Bank  of  New  York,  as  Documentation  Agent  and
               BankBoston, N.A., First  Union National Bank, Fleet National Bank
               and The First National Bank of Chicago as Co-Agents   and certain
               other  lenders,  which  renewed and extended the maturity date of
               the Revolving Credit  Agreement (Facility A) dated as of June 25,
               1998  (filed as Exhibit  4c to  RadioShack's  Form  10-Q filed on
               August 11, 1999  for the  fiscal  quarter ended June 30, 1999 and
               incorporated herein by reference).

10c            Second Amendment to Revolving Credit Agreement (Facility A) dated
               as of June 22, 2000 among  RadioShack  Corporation,  the  Lenders
               listed therein, the Bank of America, N.A.,  as  Agent,  Citibank,
               N.A.,  as  Syndication  Agent,  The  Bank  of  New  York,  as
               Documentation Agent, Fleet  National Bank, as managing Agent  and
               First  Union  National  Bank  and  Bank  One  N.A., as Co-Agents,
               amending the Revolving Credit Agreement (Facility A)  dated as of
               June 25, 1998 (filed  as  Exhibit  10a to RadioShack's  Form 10-Q
               filed on August 11, 2000 for the  fiscal  quarter  ended June 30,
               2000 and incorporated herein by reference).

10d            Revolving Credit Agreement (Facility B) dated as of June 25, 1998
               among RadioShack  Corporation,   NationsBank, N.A.,  as Agent and
               Lender, Citibank, N.A., as Syndication Agent and Lender, Bank  of
               America  National  Trust & Savings Association,  as Documentation
               Agent and Lender, BankBoston, N.A., Co-Agent and Lender, The Bank
               of New York, Co-Agent and Lender, First Union National  Bank, Co-
               Agent and Lender,  Fleet National Bank,  Co-Agent and Lender  and
               twelve  other  banks  as  Lenders  (filed  as  Exhibit  4o  to
               RadioShack's Form  10-Q  filed on  August 13, 1998 for the fiscal
               quarter  ended  June 30, 1998  and  incorporated  herein  by
               reference).

10e            First Amendment to  Revolving Credit Agreement (Facility B) dated
               as of June 24, 1999 among   RadioShack Corporation,  NationsBank,
               N.A. as Agent and Lender, Citibank, N.A. as Syndication Agent and
               Lender,  The  Bank  of  New  York,  as  Documentation  Agent  and
               BankBoston, N.A., First  Union National Bank, Fleet National Bank
               and The First National Bank of Chicago as Co-Agents   and certain
               other lenders, which renewed and extended the   maturity date  of
               the Revolving  Credit Agreement (Facility B) dated as of June 25,
               1998  (filed  as  Exhibit  4e to  RadioShack's Form 10-Q filed on
               August  11, 1999  for the fiscal  quarter ended June 30, 1999 and
               incorporated herein by reference).

10f            Second Amendment to Revolving Credit Agreement (Facility B) dated
               as of June 22, 2000  among   RadioShack  Corporation, the Lenders
               listed therein, Bank of America, N.A., as Agent, Citibank,  N.A.,
               as  Syndication  Agent,  The Bank of New York,  as  Documentation
               Agent,  Fleet National  Bank,  as managing Agent and  First Union
               National  Bank  and  Bank  One, N.A.,  as Co-Agents, amending the
               Revolving Credit Agreement (Facility B) dated as of June 25, 1998
               (filed as Exhibit 10b to  RadioShack's Form  10-Q filed on August
               11, 2000  for  the  fiscal  quarter  ended  June 30, 2000  and
               incorporated herein by reference).

10g            Salary  Continuation  Plan for  Executive Employees of RadioShack
               Corporation and Subsidiaries  including  amendment dated June 14,
               1984  with  respect  to  participation  by  certain  executive
               employees,  as restated October 4, 1990  (filed as Exhibit 10a to
               RadioShack's Form 10-K filed on  March 30,  1994  for  the fiscal
               year  ended  December 31, 1993  and  incorporated  herein  by
               reference).

10h            Post  Retirement  Death  Benefit  Plan  for  Selected   Executive
               Employees of RadioShack Corporation  and Subsidiaries as restated
               June  10, 1991  (filed  as  Exhibit 10c to RadioShack's Form 10-K
               filed  on  March 30, 1994  for the fiscal year ended December 31,
               1993 and incorporated herein by reference).

10i            RadioShack  Corporation  Officers  Deferred  Compensation Plan as
               restated July 10, 1992 (filed as Exhibit 10d to RadioShack's Form
               10-K filed on March 30, 1994 for the fiscal year ended   December
               31, 1993 and incorporated herein by reference).

10j            Director  Fee  Resolution  (filed as Exhibit 10h to  RadioShack's
               Form  10-K  filed  on  March 30, 1994  for the fiscal  year ended
               December 31, 1993 and incorporated herein by reference).

10k            RadioShack  Corporation  1985  Stock  Option  Plan  as   restated
               effective August 1990 (filed as  Exhibit 10i to RadioShack's Form
               10-K filed on March 30, 1994 for the fiscal year ended   December
               31, 1993 and incorporated herein by reference).

10l            RadioShack Corporation 1993 Incentive Stock Plan  as restated May
               18, 1995 (filed as Exhibit 10j to RadioShack's Form 10-Q filed on
               August 14, 1995 for the fiscal quarter ended  June 30,  1995  and
               incorporated herein by reference).

10m            RadioShack Corporation Officers Life Insurance Plan  as   amended
               and restated effective August 22, 1990  (filed as  Exhibit 10k to
               RadioShack's Form 10-K filed on March 30, 1994 for the fiscal
               year  ended  December 31,  1993  and  incorporated  herein  by
               reference).

10n            Third Restated Trust  Agreement RadioShack Employees Supplemental
               Stock Program through  Amendment  No. VI  dated  August  31, 1999
               (filed as Exhibit 10h to RadioShack's Form 10-Q filed on November
               12, 1999  for  the  fiscal quarter ended  September 30, 1999  and
               incorporated herein by reference).

10o            Forms  of  Termination  Protection  Agreements  for (i) Corporate
               Executives, (ii)  Division  Executives,  and (iii)  Subsidiary
               Executives (filed as Exhibit 10m to RadioShack's Form 10-Q  filed
               on August 14, 1995 for the fiscal quarter ended June 30, 1995 and
               incorporated herein by reference).

10p            RadioShack Corporation Termination Protection Plans for Executive
               Employees of RadioShack Corporation and  its Subsidiaries (i) the
               Level I  and  (ii)  Level II  Plans  (filed as  Exhibit  10n  to
               RadioShack's Form  10-Q  filed on  August 14, 1995 for the fiscal
               quarter  ended  June 30, 1995  and  incorporated  herein  by
               reference).

10q            Forms of Bonus Guarantee Letter Agreements with certain Executive
               Employees of RadioShack Corporation  and  its  Subsidiaries  (i)
               Formula, (ii) Discretionary  and (iii) Pay Plan (filed as Exhibit
               10o  to  RadioShack's  Form 10-K  filed on March 30, 1994 for the
               fiscal year ended   December 31, 1993 and  incorporated herein by
               reference).

10r            Form  of  Indemnity  Agreement with Directors, Corporate Officers
               and two Division Officers of  RadioShack  Corporation  (filed  as
               Exhibit 10p to RadioShack's Form 10-K filed on March 28, 1996 for
               the  fiscal year ended  December 31, 1995 and incorporated herein
               by reference).

10s            RadioShack  Corporation  1997  Incentive  Stock  Plan,  (filed as
               Exhibit 10q to RadioShack's Form 10-Q filed on August 8, 1997 for
               the fiscal quarter ended June 30, 1997 and incorporated herein by
               reference).

10t            Form of Deferred  Compensation  Agreement  dated  October 2, 1997
               with selected  Executive  Employees of  RadioShack  Corporation
               (filed as Exhibit 10s to RadioShack's  Form  10-K filed on  March
               26, 1998  for  the  fiscal  year  ended  December 31, 1997  and
               incorporated herein by reference).

10u            Form  of Deferred Compensation  Agreement  dated  October 2, 1997
               with  selected  Executive  Employees  of  RadioShack  Corporation
               (filed  as  Exhibit  10t to RadioShack's Form 10-K filed on March
               26, 1998  for  the  fiscal  year  ended  December 31, 1997  and
               incorporated herein by reference).

10v            Form of  December 1997 Deferred Salary and Bonus Agreement (Stock
               Investment)  with  selected  Executive  Employees  of  RadioShack
               Corporation  (filed  as  Exhibit  10u  to  RadioShack's Form 10-K
               filed  on March 26, 1998  for the fiscal year ended  December 31,
               1997 and incorporated herein by reference).

10w            RadioShack  Corporation  Executive  Deferred  Compensation  Plan,
               effective April 1, 1998  (filed  as Exhibit  10s to  RadioShack's
               Form  10-K  filed  on  March 26, 1998  for  the fiscal year ended
               December 31, 1997 and incorporated herein by reference).

10x            RadioShack Corporation Executive Deferred  Stock Plan,  effective
               April 1, 1998 (filed as Exhibit  10x  to  RadioShack's  Form 10-K
               filed  on  March 26, 1998  for the fiscal year ended December 31,
               1997 and incorporated herein by reference).

10y            RadioShack Corporation Unfunded  Deferred  Compensation Plan  for
               Directors as amended and  restated June 1, 1999 (filed as Exhibit
               10x to RadioShack's Form 10-Q filed on August  11, 1999   for the
               fiscal  quarter  ended June 30, 1999  and  incorporated herein by
               reference).


10z            RadioShack  Corporation  1999 Incentive Stock Plan dated February
               24, 1999 (filed as Exhibit 10y to RadioShack's Form 10-Q filed on
               August 11, 1999  for the  fiscal quarter ended June 30, 1999  and
               incorporated herein by reference).

10aa           Form  of  September 30, 1997  Deferred  Compensation   Agreement
               between RadioShack Corporation and   Leonard H. Roberts (filed as
               Exhibit  10aa to RadioShack's Form 10-Q filed on May 13, 1998 for
               the  fiscal  quarter ended March 31, 1998 and incorporated herein
               by reference).

10bb           Severance  Agreement  dated  October 23, 1998  between Leonard H.
               Roberts and RadioShack  Corporation  (filed  as  Exhibit  10z  to
               RadioShack's  Form 10-K filed on March 29, 1998  for  the  fiscal
               year  ended  December  31, 1997  and  incorporated  herein  by
               reference).

10cc**         Forms of 2000 Executive Pay Plan Letters.                             53

10dd           Form of AmeriLink Corporation Stock  Incentive  Plan, as  amended
               (filed as Exhibit 10.1  to  AmeriLink  Corporation's registration
               statement on Form S-1 file No. 33-69832 and filed as Exhibit A to
               the AmeriLink Corporation's 1998  Proxy  Statement  dated July 6,
               1998 which was   filed on July 7, 1998 and incorporated herein by
               reference).

11**           Statement of Computation of Ratios of Earnings to Fixed Charges.      59

23**           Consent of Independent Accountants.                                   60

--------------------------

*   Prior  to  May 18, 2000  RadioShack's  SEC  EDGAR filings appear under Tandy
    Corporation.

**  Filed with this report.



                                                                    Exhibit 10cc

December 31, 1999

TO:

FROM:          Richard Ramsey

SUBJECT:       Compensation Plan, Fiscal Year 2000

Your compensation plan for fiscal year 2000, as approved by the Organization and
Compensation Committee of the Board of Directors, is outlined below.

Your compensation plan for fiscal year 2000 is outlined below.

I.      FY 2000 Base Salary

        Your Base Salary for FY2000 shall be $__________.

II.     Your bonus for FY2000  shall  be  determined  by multiplying the percent
        determined in the following TARGET  INCENTIVE  GOALS  times the  FACTORS
        set forth below.

        The  bonus  amounts  payable  are  subject  to  limitations set forth in
        Paragraph III and IV.

        TARGET INCENTIVE GOALS:

        1.   INCOME
        Each percentage point of positive change that the Tandy Corporation  and
        subsidiaries income from operations (before income taxes) increases from
        $____________.

        2.   EARNINGS PER SHARE
        Each  percentage  point  of  positive  change that the Tandy Corporation
        diluted earnings per share increases from the $______ per share.

        3.   STOCK PRICE
        a.   Each percentage point of positive change that the Tandy Corporation
        stock price increases, based on the average daily closing price for 1999
        and 2000.

        b.   If Tandy's  average  daily  closing  stock  price  outperforms  the
        "Peer Group's" average daily  closing  stock  price,  you  will  receive
        an additional bonus of $_______.

        Income and Earnings Per Share will be calculated excluding the effect of
        Financial Accounting  Standards  requirements  i.e.FAS121, store manager
        restricted  stock  transactions and extraordinary   federal tax  refunds
        relating  to  prior  periods.  Percentages  shall  be  calculated to two
        decimal points.

        Your  factors  to  be  used  for  each  of the calculations above are as
        follows:

             1.  Income  increase:  $_______

             2.  Earnings per share increase:  $______

             3.  Stock price increase: $_______

III.    Minimum Bonus

        Minimum Threshold Increase Percent for Each Target Incentive Goal

                                            Minimum Increase %
             1.  Income                               __

             2.  Earnings per share                   __

             3.  Stock price
                 a.  Tandy Stock Increase             __
                 b.  Peer Group                       N/A

        Bonus amounts earned from each of the factors which  exceed  the Minimum
        Increase above will be accumulated.  No  bonus  will be  paid unless the
        accumulated bonus exceeds ____% of your base salary.

        Bonus will only be paid on each goal which exceeds the  Minimum Increase
        % set forth above.

IV.     Maximum Bonus:

        The bonus paid  will be  limited to an  amount not to exceed three times
        your base salary.

V.      This  compensation  plan is not an  employment contract, but a method of
        calculating your total earnings.   You forfeit  your rights to receive a
        bonus if you resign before the end of  the current fiscal year.   If you
        are terminated by the Company,  your rights to  receive a  bonus will be
        at the sole discretion of the Company and in such amount as the  Company
        might decide.  If you retire at age 55 or over, provided the Company has
        given its consent to your early retirement, or die before the end of the
        then current fiscal year, your bonus  will  be  calculated  using actual
        results to the nearest end of the month preceding  or   succeeding  such
        event,  which will  then be adjusted  using the latest budget to include
        the remaining  months  of the year.   Example: Retirement date is August
        10.  Bonus calculations would include actual  results thru  July 31  and
        the  latest  budgeted  numbers  from  August  thru  December.  The bonus
        calculated, which will be an annual bonus, will then be prorated for the
        partial year worked i.e. 7/12 times  annual  bonus  calculated  in  this
        example.  The  Stock  Price  percentage  will  be  calculated using only
        actual results to the  nearest  end of the  month for this year and last
        year.  The amount will be paid to you or the  legal  representative   of
        your estate.

VI.     If at any time  during  your continued  employment, your responsibility,
        duties or title changes, this plan is subject to revision or termination
        by the  Company at  the time of the foregoing change.   A  partial  year
        bonus will be calculated using the methodology set forth in paragraph V.




January 1, 2000

TO:

FROM:          Richard Ramsey

SUBJECT:       Compensation Plan, Fiscal Year 2000

Your compensation plan for fiscal year 2000 is outlined below.

I.      FY 2000 Base Salary

        Your Base Salary for FY2000 shall be $_________.

II.     Your  bonus  for  FY2000 shall  be determined by multiplying the percent
        determined in the following TARGET INCENTIVE GOALS times the FACTORS set
        forth below.

        The  bonus  amounts  payable  are  subject  to  limitations set forth in
        Paragraph III and IV.

        TARGET INCENTIVE GOALS:

        TANDY CORPORATION
             a.  INCOME
             Each percentage point of positive change that the Tandy Corporation
             and  subsidiaries  income  from  operations  (before  income taxes)
             increases from $____________.

             b.  EARNINGS PER SHARE
             Each percentage point of positive change that the Tandy Corporation
             diluted earnings per share increases from $____ per share.

             c.  STOCK PRICE
             Each percentage point of positive change that the Tandy Corporation
             stock price increases, based on the average daily closing price for
             1999 and 2000.

             If  Tandy's average daily closing stock price outperforms the "Peer
             Group's"  average  daily  closing  stock price, you will receive an
             additional bonus of $_______.

             Income  and  Earnings  Per  Share  will be calculated excluding the
             effect of  Financial Accounting Standards requirements i.e. FAS121,
             store  manager  restricted  stock  transactions  and  extraordinary
             federal  tax  refunds relating to prior periods.  Percentages shall
             be calculated to two decimal points.

        RADIO SHACK
             INCOME
             Each  percentage  point of  positive  change  that  the Radio Shack
             Division  net  income  (before  income  taxes)  increase  from
             $____________.

        RadioShack  results  will  be  adjusted  to  reflect  TE  Manufacturing,
        distribution operations,  A&A, Tandy Retail Services, RadioShack.com and
        AmeriLink for 1999 and 2000.

        Your  factors  to  be  used  for  each  of the calculations above are as
        follows:

             TANDY
             a.  Income increase:  $______
             b.  Earnings per share increase: $_____
             c.  Stock price increase: $______

             RADIO SHACK
                 Income increase:  $______

III.    Minimum Bonus

        Minimum Threshold Increase Percent for Each Target Incentive Goal

                                               Minimum Increase %
        TANDY
             a.  Income                               __

             b.  Earnings per share                   __

             c.  Stock price
                 a.  Tandy Stock Increase             __
                 b.  Peer Group                       N/A

        RADIO SHACK
             Income                                   __


        Bonus amounts  earned  from each of the factors which exceed the Minimum
        Increase above will be accumulated.  No bonus  will  be paid  unless the
        accumulated bonus exceeds ___% of your base salary.

        Bonus will only be  paid on each goal which exceeds the Minimum Increase
        % set forth above.

IV.     Maximum Bonus:

        The  bonus  paid will be  limited to an amount not to exceed three times
        your base salary.

V.      This  compensation  plan  is not an employment contract, but a method of
        calculating your total   earnings.  You forfeit your rights to receive a
        bonus if you resign before the end of the current fiscal  year.   If you
        are terminated by the Company, your rights to receive a bonus will be at
        the sole  discretion  of the  Company  and in such amount as the Company
        might decide.  If you retire at age 55 or over, provided the Company has
        given its consent to your early retirement, or die before the end of the
        then  current  fiscal  year,  your bonus will be calculated using actual
        results to the nearest end of the  month  preceding  or  succeeding such
        event, which will then be adjusted using the latest  budget  to  include
        the remaining months of the year. Example: Retirement date is August 10.
        Bonus calculations  would  include  actual  results thru July 31 and the
        latest budgeted numbers from August thru December. The bonus calculated,
        which  will  be an annual  bonus,  will then be prorated for the partial
        year  worked  i.e. 7/12  times  annual bonus calculated in this example.
        The Stock Price percentage will be  calculated using only actual results
        to the nearest end of the month for this year and last year.  The amount
        will be paid to you or the legal representative of your estate.

VI.     If  at  any time  during your continued employment, your responsibility,
        duties or title changes, this plan is subject to revision or termination
        by  the  Company at the time of the foregoing change.   A  partial  year
        bonus will be calculated using the methodology set forth in paragraph V.




January 1, 2000

TO:

FROM:          Richard Ramsey

SUBJECT:       Compensation Plan, Fiscal Year 2000

Your compensation plan for fiscal year 2000 is outlined below.

I.      FY 2000 Base Salary

        Your Base Salary for FY2000 shall be $_________.

II.     Your  bonus  for  FY2000  shall be determined by multiplying the percent
        determined in the following TARGET INCENTIVE GOALS times the FACTORS set
        forth below.

        The  bonus  amounts  payable  are  subject  to  limitations set forth in
        Paragraph III and IV.

        TARGET INCENTIVE GOALS:

        1. INCOME
        Each  percentage point of positive change that the Tandy Corporation and
        subsidiaries income from operations (before income taxes) increases from
        $____________.

        2. EARNINGS PER SHARE
        Each  percentage  point  of  positive  change that the Tandy Corporation
        diluted earnings per share increases from $_______ per share.

        3. STOCK PRICE
           a. Each  percentage  point  of  positive  change  that  the  Tandy
           Corporation stock price increases, based on the average daily closing
           price for 1999 and 2000.

           b. If Tandy's average daily closing stock price outperforms the "Peer
           Group's"  average  daily  closing  stock  price, you  will receive an
           additional bonus of $________.

        Income and Earnings Per Share will be calculated excluding the effect of
        Financial Accounting Standards requirements i.e. FAS121,  store  manager
        restricted  stock  transactions and  extraordinary  federal  tax refunds
        relating  to  prior  periods.  Percentages  shall  be  calculated to two
        decimal points.

        Your  factors  to  be  used  for  each  of the calculations above are as
        follows:

           1.  Income  increase:  $______

           2.  Earnings per share increase:  $______

           3.  Stock price increase: $_____

           4.  SUPPORT OPERATIONS - INCOME
               You  will  receive a bonus  of ._____% for  each dollar of Income
               (Pre-Admin)  from  the  TE-US and  Asia, TRS,  Distribution, A&A,
               RadioShack  International  Consolidated,  RadioShack  Real Estate
               (Excluding  Tandy  Properties)   and  AmeriLink  operations   Net
               Income (Pre-Admin & Interest).

III.    Minimum Bonus

        Minimum Threshold Increase Percent for Each Target Incentive Goal

                                        Minimum Increase %
           1.  Income                          __

           2.  Earnings per share              __

           3.  Stock price
               a.  Tandy Stock Increase        __
               b.  Peer Group                  N/A

           4.  Support Operations Income       $_____________

        Bonus  amounts  earned from each of the factors which exceed the Minimum
        Increase above will be accumulated.   No  bonus  will be paid unless the
        accumulated bonus exceeds ___% of your base salary.

        Bonus will only be  paid on each goal which exceeds the Minimum Increase
        % set forth   above.

IV.     Maximum Bonus:

        The  bonus  paid will be  limited to an amount not to exceed three times
        your base salary.

V.      This compensation plan is  not an  employment  contract, but a method of
        calculating your total   earnings.  You forfeit your rights to receive a
        bonus if you resign before the end of the current fiscal  year.   If you
        are terminated by the Company, your rights to receive a bonus will be at
        the sole  discretion  of the Company and in such  amount as the  Company
        might decide.  If you retire at age 55 or over, provided the Company has
        given its consent to your early retirement, or die before the end of the
        then  current  fiscal  year,  your bonus will be calculated using actual
        results to the nearest end of  the  month  preceding  or succeeding such
        event, which will then be adjusted using the latest  budget  to  include
        the  remaining months of the  year.  Example: Retirement  date is August
        10.  Bonus calculations  would  include actual  results thru July 31 and
        the  latest  budgeted  numbers  from  August  thru December.   The bonus
        calculated, which will be an annual bonus, will then be prorated for the
        partial year worked  i.e.  7/12  times annual  bonus  calculated in this
        example.  The Stock Price percentage  will  be  calculated  using   only
        actual  results  to the nearest end of the month for this year and  last
        year.  The amount  will  be  paid to  you or the legal representative of
        your estate.

VI.     If at any  time during  your  continued employment, your responsibility,
        duties or title changes, this plan is subject to revision or termination
        by the Company at the time of the foregoing change. A partial year bonus
        will be calculated using the methodology set forth in paragraph V.



                                                                      EXHIBIT 11

                             RADIOSHACK CORPORATION
         STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
         AND RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS



                                                       Year Ended December 31,
                                          ----------------------------------------------------
(In millions, except ratios)                2000       1999       1998       1997      1996
---------------------------               --------   --------   --------   --------   --------
                                                                       
Ratio of Earnings to Fixed Charges:

Income (loss) from continuing operations  $  368.0   $  297.9   $   61.3   $  186.9   $  (91.6)
Plus provision (benefit) for income taxes    225.6      182.6       38.4      117.0      (54.0)
                                          --------   --------   --------   --------   --------
Income (loss) before income taxes            593.6      480.5       99.7      303.9     (145.6)
                                          --------   --------   --------   --------   --------

Fixed charges:

Interest expense and amortization
 of debt discount                             53.9       37.2       45.4       46.1       36.4
Amortization of issuance expense               0.9        0.8        0.7        0.4        0.2
Appropriate portion (33 1/3%) of rentals      71.7       68.5       72.5       74.2       80.0
                                          --------   --------   --------   --------   --------
 Total fixed charges                         126.5      106.5      118.6      120.7      116.6
                                          --------   --------   --------   --------   --------

Earnings (loss)  before income taxes and
 fixed charges                            $  720.1   $  587.0   $  218.3   $  424.6   $  (29.0)
                                          ========   ========   ========   ========   ========

Ratio of earnings to fixed charges            5.69       5.51       1.84       3.52      (a)
                                          ========   ========   ========   ========   ========

Ratio of Earnings to Fixed
Charges and Preferred Dividends:

Total fixed charges, as above             $  126.5   $  106.5   $  118.6   $  120.7   $  116.6
Preferred dividends                            5.3        5.5        5.8        6.1        6.3
                                          --------   --------   --------   --------   --------
Total fixed charges and preferred
 dividends                                $  131.8   $  112.0   $  124.4   $  126.8   $  122.9
                                          ========   ========   ========   ========   ========

Earnings (loss) before income taxes
 and fixed charges                        $  720.1   $  587.0   $  218.3   $  424.6   $  (29.0)
                                          ========   ========   ========   ========   ========

Ratio of earnings to fixed charges and
 preferred dividends                          5.46       5.24       1.75       3.35      (b)
                                          ========   ========   ========   ========   ========

(a)  Earnings  were  not  sufficient  to  cover  fixed  charges  during  1996 by
     approximately $145.6 million.

(b)  Earnings were not sufficient to cover fixed charges and preferred dividends
     during 1996 by approximately $151.9 million.




                             RADIOSHACK CORPORATION

                                   EXHIBIT 23

                       CONSENT OF INDEPENDENT ACCOUNTANTS

We  hereby  consent  to the  incorporation  by  reference  in  the  Registration
Statements on Form S-3 (Nos. 333-27297,  333-44125, 333-60803 and 333-54276) and
to the  incorporation  by reference in the  Registration  Statements on Form S-8
(Nos. 33-23178, 33-33189,  33-51019, 33-51599,  33-51603,  333-27437, 333-47893,
333-48331,   333-49369,  333-63659,  333-63661,  333-81405  and  333-84057),  of
RadioShack  Corporation  of our report dated  February 21, 2001  relating to the
consolidated financial statements, which appears in this Form 10-K.


\s\ PricewaterhouseCoopers LLP
------------------------------
PricewaterhouseCoopers LLP

Fort Worth, Texas
March 27, 2001