<TABLE>
<CAPTION>
FORM 11-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
<S>
[ X ]ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
[FEE REQUIRED]
For the fiscal year ended December 31, 1994
OR
[ ]TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
[NO FEE REQUIRED]
For the transition period from .........to.........
Commission Title Number 0-9831
<C>
LIZ CLAIBORNE SAVINGS PLAN
(FULL TITLE OF PLAN)
LIZ CLAIBORNE, INC.
(NAME OF ISSUER OF THE SECURITIES HELD
PURSUANT TO THE PLAN)
1441 BROADWAY
NEW YORK, NEW YORK 10018
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)<PAGE>
FINANCIAL STATEMENTS AND EXHIBITS
Financial Statements
See Index to Financial Statements and Schedule at page F-1 and the
accompanying Financial Statements.
Exhibits
10(a) Liz Claiborne Savings Plan ("Savings Plan"), as amended
and restated, is incorporated herein by reference from
Exhibit 10(f) to the Company's Annual Report on Form 10-K
for the fiscal year ended December 30, 1989.
10(b) Amendment Nos. 1 and 2 to the Savings Plan are
incorporated herein by reference from Exhibit 10(g) to the
Company's Annual Report on Form 10-K for the fiscal year
ended December 26, 1992.
10(c) Amendment Nos. 3 and 4 to the Savings Plan are
incorporated herein by reference from Exhibit 10(g)(i) to the
Company's Annual Report on Form 10-K for the fiscal year
ended December 25, 1993.
10(d) Amendment No. 5 to the Savings Plan is incorporated
herein by reference from Exhibit 10(o) to the Company's
Quarterly Report on Form 10-Q for the period ended July 2,
1994.
10(e) Trust Agreement dated as of July 1, 1994 between the
Company and American Express Trust Company (the
"Trust") related to the Plan is incorporated herein by
reference from Exhibit 10(b) to the Company's Quarterly
Report on Form 10-Q for the period ended July 2, 1994.
24 Consent of Independent Public Accountants
<PAGE>
</TABLE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Administrative Committee has duly caused this annual report to be signed
by the undersigned hereunto duly authorized.
LIZ CLAIBORNE SAVINGS PLAN
(Name of Plan)
By /s/ Jerome A. Chazen
Jerome A. Chazen
Member of Administrative
June 29, 1995 Committee
<TABLE>
<CAPTION>
LIZ CLAIBORNE SAVINGS PLAN
INDEX TO FINANCIAL STATEMENTS AND SCHEDULE
Page
Number
<S> <C>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS F-2
FINANCIAL STATEMENTS:
Statements of Net Assets Available for Plan Participants
as of December 31, 1994 and 1993 F-3 to F-4
Statements of Changes in Net Assets Available for Plan
Participants for the Years Ended December 31, 1994,
1993 and 1992 F-5 to F-7
Notes to Financial Statements F-8 to F-13
Supplemental Schedule:
Schedule I. Investments F-14
Note: Schedules other than that referred to above have been omitted as inapplicable or not required under the
instructions contained in Regulation S-X or the information is included elsewhere in the financial statements or the
notes thereto.
</TABLE>
F-1<PAGE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To the Administrative Committee of
The Liz Claiborne Savings Plan:
We have audited the accompanying statements of net assets available
for plan participants including the schedule of investments of the Liz
Claiborne Savings Plan (the "Plan") as of December 31, 1994 and
1993, and the related statements of changes in net assets available for
plan participants for each of the three years in the period ended
December 31, 1994. These financial statements and the schedule referred to
below are the responsibility of the Plan's management. Our responsibility
is to express an opinion on these financial statements on our audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly,
in all material respects, the net assets available for plan participants of
the Plan as of December 31, 1994 and 1993, and the changes in its
net assets available for plan participants for each of the three years in
the period ended December 31, 1994, in conformity with generally
accepted accounting principles.
Our audits were performed for the purpose of forming an opinion on
the basic financial statements taken as a whole. The schedule listed
in the index to financial statements and schedule is presented for purposes
of complying with the Securities and Exchange Commission's rules and
is not a required part of the basic financial statements. In addition, the
Fund Information in the statements of net assets available for plan
participants and the statements of changes in net assets available for
plan participants is presented for purposes of additional analysis rather
than to present the net assets available for plan participants and
changes in net assets available for plan participants of each fund. The
schedule and Fund Information have been subjected to the auditing
procedures applied in the audits of the basic financial statements and,
in our opinion, are fairly stated in all material respects in relation to the
basic financial statements taken as a whole.
Arthur Andersen LLP
New York, New York
June 9, 1995
F-2
<TABLE>
<CAPTION>
LIZ CLAIBORNE SAVINGS PLAN
Statement of Net Assets Available for Plan Participants
As of December 31, 1994
INCOME FEDERAL EQUITY NEW COMPANY
FUNDS ACCOUNT INCOME MUTUAL INDEX DIMENSIONS STOCK TOTAL
<S> <C> <C> <C> <C> <C> <C> <C>
PLAN ASSETS
Cash $ 100,553$ 28,797$ 55,568 $ 30,864 $ 63,572$ 44,585$ 323,939
Investments at
market value 21,359,381 462,410 796,419 6,260,945 971,791 4,470,897 34,321,843
Accrued interest and dividends -- 2,264 47,559 -- 48,388 616 98,827
Loans to participants 569,823 145,643 242,064 244,259 299,210 203,757 1,704,756
TOTAL PLAN ASSETS 22,029,757 639,114 1,141,610 6,536,068 1,382,961 4,719,855 36,449,365
PLAN LIABILITIES
Due to Plan Sponsor-
forfeitures 102,326 -- -- -- -- -- 102,326
TOTAL PLAN LIABILITIES 102,326 -- -- -- -- -- 102,326
NET ASSETS AVAILABLE FOR
PLAN PARTICIPANTS $21,927,431$ 639,114 $1,141,610 $6,536,068 $ 1,382,961 $4,719,855$36,347,039
The accompanying notes to financial statements are an integral part of these statements.
</TABLE>
F-3
<TABLE>
<CAPTION>
LIZ CLAIBORNE SAVINGS PLAN
Statement of Net Assets Available for Plan Participants
As of December 31, 1993
FIXED INCOME MONEY COMPANY
FUNDS CONTRACT EQUITY MARKET STOCK TOTAL
<S> <C> <C> <C> <C> <C>
PLAN ASSETS
Cash $ 7,330$ 50,581$ 0 $ 2,048 $ 59,959
Investments at market value 18,254,053 5,413,278 1,172,980 5,691,258 30,531,569
Accrued interest and dividends 97,735 126 2,682 136 100,679
Loans to participants 562,441 240,446 40,706 305,685 1,149,278
TOTAL PLAN ASSETS 18,921,559 5,704,431 1,216,368 5,999,127 31,841,485
PLAN LIABILITIES
Due to (from) Plan Sponsor-forfeitures 16,724 9,364 (5,436) 11,164 31,816
TOTAL PLAN LIABILITIES 16,724 9,364 (5,436) 11,164 31,816
NET ASSETS AVAILABLE FOR
PLAN PARTICIPANTS $18,904,835 $ 5,695,067 $1,221,804 $5,987,963 $ 31,809,669
The accompanying notes to financial statements are an integral part of these statements.
F-4
</TABLE>
<TABLE>
<CAPTION>
LIZ CLAIBORNE SAVINGS PLAN
Statement of Changes in Net Assets Available for Plan Participants
For the year ended December 31, 1994
INCOME FEDERAL EQUITY NEW MONEY COMPANY
FUNDS ACCOUNT INCOME MUTUAL INDEX DIMENSIONS EQUITY MARKET STOCK TOTAL
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES:
Interest Income $ 1,350,154 $ 3,809$ 7,451$ 7,098 $ 8,622$ 23,523$ 20,958$ 21,790$ 1,443,405
Dividends 132,893 6,536 51,927 83,360 48,388 40,439 -- 116,999 480,542
Securities Transactions:
Proceeds 1,755,381 16,681 20,660 705,526 79,340 5,674,096 -- 354,147 8,605,831
Aggregate Cost
(Weighted Average Basis) 1,752,741 16,773 20,989 683,828 81,448 6,034,489 -- 401,331 8,991,599
Net Gain (Loss) 2,640 (92) (329) 21,698 (2,108) (360,393) -- (47,184) (385,768)
Transfer of assets 1,193,234 6,391,343 (6,391,343)(1,193,234)
Changes in Unrealized Appreciation/
Depreciation of Investments (5,112) (4,159) (59,844) 157,474 (46,497) -- -- (1,452,213)(1,410,351)
FROM CONTRIBUTION AND PAYMENT ACTIVITIES:
Employer Contributions 786,443 101,758 193,085 126,891 226,043 268,677 41,134 338,212 2,082,243
Employee Contributions 2,657,127 305,678 554,195 453,269 653,122 1,041,770 146,6141,085,213 6,896,988
Employee Transfers (361,642) 234,143 405,594 (393,367) 510,408 321,694 (128,107)(588,723) --
Amounts Withdrawn by
Participants (2,733,141) (8,559) (10,469) (311,698) (15,017) (639,434)(109,169)(742,202)(4,569,689)
Change in Net Assets Available
for Plan Participants 3,022,596 639,114 1,141,610 6,536,068 1,382,961(5,695,067)(1,221,804)(1,268,108)4,537,370
NET ASSETS AVAILABLE FOR PLAN
PARTICIPANTS,
BEGINNING BALANCE 18,904,835 0 0 0 05,695,0671,221,8045,987,96331,809,669
NET ASSETS AVAILABLE FOR PLAN
PARTICIPANTS,
ENDING BALANCE $21,927,431$ 639,114$1,141,610$6,536,068$ 1,382,961$ 0$ 0$4,719,855$36,347,039
The accompanying notes to financial statements are an integral part of these statements.
F-5
</TABLE>
<TABLE>
<CAPTION>
LIZ CLAIBORNE SAVINGS PLAN
Statement of Changes in Net Assets Available for Plan Participants
For the Year Ended December 31, 1993
FIXED INCOME MONEY COMPANY
FUNDS CONTRACT EQUITY MARKET STOCK TOTAL
<S> <C> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES:
Interest Income $ 1,318,278 $ 23,903 $ 39,119 $ 23,298 $ 1,404,598
Dividends -- 138,134 -- 96,890 235,024
Securities Transactions:
Proceeds -- -- -- 78,999 78,999
Aggregate Cost (Weighted Average Basis) -- -- -- 101,856 101,856
Net Gain (Loss) -- -- (22,857) (22,857)
Changes in Unrealized Appreciation/
Depreciation of Investments -- 269,994 -- (4,082,284) (3,812,290)
FROM CONTRIBUTION AND PAYMENT ACTIVITIES:
Employer Contributions 987,533 386,288 84,312 557,240 2,015,373
Employee Contributions 3,470,718 1,316,284 251,428 1,703,539 6,741,969
Employee Transfers (9,332) 323,042 (161,459) (152,251) --
Amounts Withdrawn by Participants (1,706,904) (305,741) (271,026) (886,599) (3,170,270)
Change in Net Assets Available
for Plan Participants 4,060,293 2,151,904 (57,626) (2,763,024) 3,391,547
NET ASSETS AVAILABLE FOR PLAN
PARTICIPANTS, BEGINNING BALANCE 14,844,542 3,543,163 1,279,430 8,750,987 28,418,122
NET ASSETS AVAILABLE FOR PLAN
PARTICIPANTS, ENDING BALANCE $18,904,835 $5,695,067 $1,221,804 $5,987,963 $ 31,809,669
The accompanying notes to financial statements are an integral part of these statements.
F-6
</TABLE>
<TABLE>
<CAPTION>
LIZ CLAIBORNE SAVINGS PLAN
Statement of Changes in Net Assets Available for Plan Participants
For the Year Ended December 31, 1992
FIXED INCOME MONEY COMPANY
FUNDS CONTRACT EQUITY MARKET STOCK TOTAL
<S> <C> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES:
Interest Income $ 1,046,111 $ 15,436 $ 44,733 $ 25,316 $ 1,131,596
Dividends -- 44,675 -- 68,895 113,570
Securities Transactions:
Proceeds -- 2,654,563 -- 78,276 2,732,839
Aggregate Cost (Weighted Average Basis) --2,604,308 -- 86,586 2,690,894
Net Gain (Loss) -- 50,255 -- (8,310) 41,945
Changes in Unrealized Appreciation
of Investments -- 211,915 -- 44,571 256,486
FROM CONTRIBUTION AND PAYMENT ACTIVITIES:
Employer Contributions 870,654 279,364 91,786 563,411 1,805,215
Employee Contributions 2,813,213 992,022 255,981 1,691,825 5,753,041
Employee Transfers 109,035 78,188 (141,001) (46,222) --
Amounts Withdrawn by Participants (766,619) (243,036) (97,266) (415,742) (1,522,663)
Change in Net Assets Available
for Plan Participants 4,072,394 1,428,819 154,233 1,923,744 7,579,190
NET ASSETS AVAILABLE FOR PLAN
PARTICIPANTS, BEGINNING BALANCE 10,772,148 2,114,344 1,125,197 6,827,243 20,838,932
NET ASSETS AVAILABLE FOR PLAN
PARTICIPANTS, ENDING BALANCE $14,844,542 $3,543,163 $1,279,430 $8,750,987 $28,418,122
The accompanying notes to financial statements are an integral part of these statements
F-7
</TABLE>
NOTES TO FINANCIAL STATEMENTS
(1) Description of the Plan:
The Liz Claiborne Savings Plan (the "Plan") was adopted by Liz
Claiborne, Inc. (the "Company") and became effective January
1, 1985. An administrative committee (the "Administrative
Committee") has been appointed by the Board of Directors of
the Company to supervise the administrative and investment
operations of the Plan. Administrative expenses are paid by the
Company. The Plan is a trusteed, defined contribution plan
subject to the reporting and disclosure requirements,
participation and vesting standards and fiduciary responsibility
provisions of the Employee Retirement Income Security Act of
1974 ("ERISA"). The provisions of the Plan comply with the
requirements of ERISA.
Employees of the Company and certain of its wholly-owned
subsidiaries who are not covered by certain collective bargaining
agreements become eligible to participate in the Plan on the first
of the month after they have attained age 21, have completed
12 consecutive months of service and have worked at least
1000 hours during those 12 months.
The Plan provides for contributions by the participating
employee of amounts from 1% to 15% of compensation as
defined in the Plan, and for contributions by the Company,
which includes for purposes hereof the Company and certain of
its wholly-owned subsidiaries, equal to 50% of the participant's
contributions, limited to the first 5% of compensation
contributed. Participants' contributions are made at the option
of the employee, except that certain participants may be
restricted as to the amount of the contribution, pursuant to the
provisions of the Internal Revenue Code as amended (the
"Code").
The participants have access to their account information
through a toll free number and the ability to obtain current
account balances, change contribution rate or investment funds,
request a loan or receive specific information about fund
performance on a daily basis. In addition, participants may
suspend elective contributions and enroll again at any time as
long as they are eligible employees.
Participants become vested in their Company matching
contribution account based on number of years of service with
the Company. The vesting schedule is as follows:
Years of service Vested
with the Company Percentage
Less than 2 0%
2 20%
3 40%
4 60%
5 80%
6 or more 100%
F-8<PAGE>
Participants' interest in their Company matching contribution account is fully
vested and nonforfeitable in the event of death, disability or retirement at or
after Normal Retirement Date (age 65).
The portion of a participants Company matching contribution account balance
which is not vested at the time of seperation of service with the Company is
retained in the Plan. Pursuant to the terms of the Plan document, these
forfeitures are used to offset any employer contributions for the current year
or in the next succeeding year. For the year ended December 31, 1994
forfeitures arising amounted to $276,623.
Upon termination of employment, the value of the participants' vested account
is payable in stock of the Company or in cash. At the participants' election,
such payment is to be made as soon as practicable, or (i) after the end of the
Plan year in which employment terminates if the vested balance is less than
$3,500, or (ii) if the account balance is in excess of $3,500, in equal
installments over a period not to exceed ten years, or (iii) if the account
balance is in excess of $3,500, as of the date the participant elects between
the time employment terminates and when the participant reaches age 65.
As allowed under Internal Revenue Service rules, participants may withdraw
funds from their account while employed if needed to satisfy an immediate and
heavy financial need. Any amount withdrawn will be subject to income taxes
and may be subject to an additional tax based on early withdrawal.
Active participants may borrow up to 50% of their vested account balance and
have multiple loans outstanding at one time. The minimum loan amount is
$1,000 and the maximum amount is $50,000. Loan amounts must be in
increments of $250. The interest rate applicable to a loan is the prime rate
plus one at the time the loan is granted. The rate in effect on December 31,
1994 was 9.50%.
Participants repay their loans through payroll deductions. The participant has
a choice of repaying the loan over a period of 12, 24, 36, 48 or 54 months.
In addition, any outstanding principal balance can be repaid in full on any
business day. Upon termination of employment, the participant must repay the
outstanding principal balance in full. In the event the loan is not repaid in
full, it is treated as a taxable distribution.
Prior to July 1, 1994 the trustee was First Fidelity Bank, N.A. and the
recordkeeper was Buck Consultants. Effective July 1, 1994 contributions to the
participant's accounts are held by American Express Trust Company (the
"Trustee") and the recordkeeping responsibilities were transferred to the
Trustee. Participants direct how funds in their account are invested under the
options described in Note 2.
F-9<PAGE>
(2) Investment programs:
American Express Trust Company became the Plan's trustee and recordkeeper
on July 1, 1994. The assets by fund from the previous trustee, First Fidelity
Bank, N.A. of New Jersey were transferred to American Express Trust Company
as follows:
First Fidelity American Express Trust Company
Fixed Income Contract Income Account
Money Market Income Account
Equity American Express Trust Equity Index
II
Company Stock Company Stock
Each employee may direct American Express Trust Company to invest their
contributions in one or more of the following investment funds:
Liz Claiborne Income Account - A fund consisting of fixed income contracts
issued by insurance companies, previously purchased by the Plan, and
investments in the American Express Trust Income Fund II. The fund's
investment goal is to preserve principal and interest, while maximizing current
income. The American Express Trust Income Fund II is a collective investment
fund managed by American Express Trust Company. It invests mainly in fixed
income contracts issued by insurance companies and banks, and other stable
value contracts.
Contributions to the Fixed Income Contract Fund prior to July 1, 1994 were
invested in the contracts purchased by the Plan. The last contract purchased
by the Plan will mature on October 20, 1997 and when it matures, the entire
fund will consist solely of an investment in the American Express Trust Income
Fund II.
The rate of return on each participant's investment in the Liz Claiborne Income
Account Fund is based on the mix of rates provided by the different contracts
purchased by the Plan and the contracts and investments in the American
Express Trust Income Fund II.
The Money Market Fund, which consisted principally of short-term money
market instruments was transferred into this fund on July 1, 1994.
IDS Federal Income - A diversified income mutual fund managed by American
Express Trust Company which generally invests at least 65% of its assets in U.
S. government and government agency securities. The fund may also invest in
options on governmental securities and in pools of mortgage loans issued by
financial or non-governmental mortgage institutions, non-governmental
mortgage related securities and debt, and cash and cash equivalent
investments. The fund's investment goal is to seek a high level of current
income and safety of principal consistent with investments in U. S. government
and government agency securities.
IDS Mutual - A diversified mutual fund managed by American Express Trust
Company which invests in a balance of common stocks and senior securities
(preferred stocks and debt securities, convertible securities, derivative
instruments and money market instruments) issued by U. S. and foreign
companies. The fund's investment goal is to provide a balance of growth of
capital and current income. No more than 65% of the fund's assets may be
invested in common stocks and no less than 35% in senior securities,
convertible securities, derivative instruments and money market instruments.
F-10<PAGE>
American Express Trust Equity Index II - A fund managed by American Express
Trust Company which invests primarily in common stock of U. S. companies
upon which the Standard & Poor's 500 Stock Index is based. The fund's
investment goal is to achieve a total rate of return as close as possible to
that of Standard & Poor's 500 Index. This fund is a collective investment
fund which invests primarily in the American Express Equity Index Base Fund.
the fund may also invest in high-quality money market securities and stock
index future contracts.
The Equity Fund, which consisted of common stocks of certain publicly traded
corporations was transferred into this fund on July 1, 1994.
IDS New Dimensions - A diversified mutual fund managed by American Express
Trust Company that invests primarily in common stocks of U. S. and foreign
companies which the fund's manager believes to show potential for significant
growth. The fund's investment goal is to provide long-term growth of capital.
The fund also invests in preferred stocks, debt securities, derivative
instruments and money market instruments.
Liz Claiborne Company Stock - Consists of Liz Claiborne, Inc. common stock.
The fund's investment goal is to provide participants with a way to invest in
Liz Claiborne, Inc. The Company will generally make contributions to the fund
in cash as soon as administratively practicable after each biweekly pay date and
the Plan Trustee will then buy shares of Liz Claiborne, Inc. common stock at
current market prices on the New York Stock Exchange. The Company's
contribution may also be made directly to the Plan in shares of Liz Claiborne,
Inc. common stock (Note 8).
A portion of any of the Plan's investment funds may consist of short-term
interest bearing accounts to meet the distribution needs or administrative
requirements of the Plan.
(3) Investments:
Investments are carried at market value, with the exception of Guaranteed
Investment Contracts held by the Liz Claiborne Income Account Fund which are
carried at contract value.
Security transactions are recorded on a settlement date basis. Any differences
resulting from the recording of transactions between trade date and settlement
date was not material. Dividend income is recorded at the ex-dividend date.
Income from other investments is recorded as earned on an accrual basis.
The market or contract value, as applicable, of individual investments that
represent 5% or more of the Plan's total net assets available for plan
participants as of December 31, 1994 are as follows:
Fixed Income Contracts
Hartford Life $3,938,721
John Hancock Life 4,506,425
New York Life 4,508,774
Metropolitan Life 5,454,384
American Express Trust Income Fund II2,951,077
American Express Trust Equity Index II6,260,945
Liz Claiborne, Inc. Common Stock4,251,201
F-11<PAGE>
The Company and certain of its officers and directors are parties to several
pending legal proceedings and claims. Although the effect of such litigation
cannot be determined with certainty, management of the Company is of the
opinion that the final outcome should not have a material adverse effect on the
Company's results of operations or financial position or on the Plan's net
assets.
(4) Valuation of accounts:
Participant's accounts are stated at market value at the end of each business
day. In addition an investment adjustment reflecting accrued earnings and
realized and unrealized gains and losses since the preceding day is determined
for each investment fund and is allocated among accounts entitled to share in
the adjustment.
5) Realized and unrealized gains and losses
Realized and unrealized gains and losses on plan assets are based on the value
of the assets at the beginning of the plan year or at the time of purchase
during the year.
(6) Federal income taxes:
On behalf of the Plan, the Company has received a favorable determination
letter, dated June 26, 1987 from the Internal Revenue Service to the effect that
the Plan is qualified under Sections 401(a) and 401(k) of the Internal Revenue
Code. In March 1995, the Company applied for a new determination letter on
the Plan. Since the Plan is qualified, participants are not taxed on
contributions or on the related earnings until they receive distribuions from
the Plan or default on their loan repayments. Additionally, the Plan is not
taxed on its dividend and interest income or any capital gains whether
realized or unrealized.
(7) Plan termination:
The Plan may be terminated at any time at the Company's sole discretion.
Upon termination, contributions by the Company and participants cease and all
Company contributions which had been credited to each participants' account
would fully vest.
(8) Related party transactions:
The current members of the Plan's Administrative Committee are also Directors
of the Company and currently serve in the following respective positions:
Chairman of the Board; President and Chief Executive Officer. One of the
investment funds of the Plan invests exclusively in shares of the Company's
Common Stock (Note 2). The Plan owned 251,923 shares of Common Stock
at December 31, 1994, with a cost based on beginning market value of
$5,703,382 and a market value of $4,251,201 and at December 31, 1993 ,
owned 247,964 shares of Common Stock with a cost based on beginning
market value of $9,692,470 and a market value of $5,610,186.
F-12<PAGE>
(9) Prior Years' Reclassification:
Certain items previously reported in specific captions in the accompanying
financial statements have been reclassified to conform with the current year's
classification.
(10) Reconciliation to Form 5500:
As of December 31, 1994 and 1993, there was $628,791 and $1,281,573,
respectively, of vested benefits payable to terminated participants that were
paid in 1995 and 1994, respectively. These amounts are recorded as liabilities
in the Plan's Form 5500; however, these amounts are not recorded as liabilities
in the accompanying statements of net assets available for plan participants in
accordance with generally accepted accounting principles.
The following table reconciles net assets available for Plan participants per
the accompanying financial statements to the Form 5500 to be filed by the
Company for the year ended December 31, 1994:
Net Assets
Benefits Available for
Paid Plan Benefits
Per financial statements $ 4,569,689 $36,347,039
Accrued benefit payments 628,791 (628,791)
Reversal of 1993 accrual for
benefit payments (1,281,573) --
Per Form 5500 $3,916,907 $35,718,248
As of December 31, 1994 and 1993, there was approximately $5,776,000
and $3,345,000, respectively, of vested benefits payable to terminated
participants.
F-13
<TABLE>
<CAPTION>
LIZ CLAIBORNE SAVINGS PLAN
Schedule of Investments SCHEDULE I
As of December 31, 1994
COST BASED
SHARES OR ON BEGINNING MARKET
FUNDS UNITS MARKET VALUE VALUE
<S> <C> <C> <C>
INCOME ACCOUNT
Hartford Life 3,938,721 $ 3,938,721 $ 3,938,721
John Hancock Life 4,506,425 4,506,425 4,506,425
New York Life 4,508,774 4,508,774 4,508,774
Metropolitan Life 5,454,384 5,454,384 5,454,384
American Express Trust Income Fund II 202,816 2,956,189 2,951,077
21,364,493 21,359,381
IDS Federal Income 96,840 466,569 462,410
IDS Mutual 72,264 856,263 796,419
American Express Trust Equity Index II 539,318 6,103,471 6,260,945
IDS New Dimensions 73,127 1,018,288 971,791
COMPANY STOCK
Liz Claiborne, Inc. Common Stock 251,923 5,703,382 4,251,201
American Express Trust Money Market 219,728 219,728 219,696
5,923,110 4,470,897
Total Investments $35,732,194 $34,321,843
Loans to Participants, at interest rates ranging from 7% to 9.5%$ 1,704,756 $ 1,704,756
F-14<PAGE>
</TABLE>
EXHIBIT 24
CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS
As independent public accountants, we hereby consent to the incorporation of
our report included in this Form 11-K, into Liz Claiborne, Inc.'s previously
filed Registration Statement on Form S-8 File No.2-95258.
Arthur Andersen LLp
New York, New York
June 29, 1995<PAGE>
