<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
ANNUAL REPORT
Pursuant to Section 15 (d) of the
Securities Exchange Act of 1934
For The Year Ended December 31, 1994
(A) Full title of the plan and the address
of the plan, if different from that of
the issuer named below:
The Penn Traffic Company
401(k) Savings Plan
(B) Name of issuer of the securities held
pursuant to the plan and the address
of its principal executive office:
The Penn Traffic Company
1200 State Fair Boulevard
Syracuse, New York 13209
<PAGE>
THE PENN TRAFFIC COMPANY
401(k) SAVINGS PLAN
INDEX TO FINANCIAL STATEMENTS AND SCHEDULES
Page
Report of Independent Accountants 1
Financial Statements:
Statement of Net Assets Available for Plan Benefits
at December 31, 1994 and 1993 2
Statement of Changes in Net Assets Available for Plan
Benefits for the year ended December 31, 1994 and 1993 3
Notes to Financial Statements 4
Supplemental Schedules:*
Schedule of Assets Held for Investment at
December 31, 1994 (Schedule I) 14
Schedule of Reportable Transactions for the
Year Ended December 31, 1994 (Schedule II) 15
* Schedules not included with this additional data have been omitted because
they are not applicable.
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
June 23, 1995
To the Participants and Administrator
of The Penn Traffic Company
401(k) Savings Plan
In our opinion, the accompanying statement of net assets available for plan
benefits and the related statement of changes in net assets available for plan
benefits present fairly, in all material respects, the net assets available for
plan benefits of The Penn Traffic Company 401(k) Savings Plan (the Plan) at
December 31, 1994 and 1993, and the changes in net assets available for plan
benefits for the years then ended, in conformity with generally accepted
accounting principles. These financial statements are the responsibility of the
Plan's management; our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of these
statements in accordance with generally accepted auditing standards 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 the opinion expressed above.
Our audit was made for the purpose of forming an opinion on the basic financial
statements taken as a whole. The additional information included in Schedules I
and II is presented for purposes of additional analysis and is not a required
part of the basic financial statements but is additional information required by
the Employee Retirement Income Security Act of 1974. Such information has been
subjected to the auditing procedures applied in the audit of the basic financial
statements and, in our opinion, is fairly stated in all material respects in
relation to the basic financial statements taken as a whole.
- 1 -
<PAGE>
THE PENN TRAFFIC COMPANY
401(K) SAVINGS PLAN
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
AVAILABLE FOR PLAN BENEFITS
<TABLE>
<CAPTION>
DECEMBER 31,
1994 1993
<S> <C> <C>
ASSETS
Investments at market (cost of $58,696,936
in 1994 and $49,205,856 in 1993) $ 59,499,473 $ 53,342,440
------------- -------------
Receivables:
Accrued income 283,814 462,369
Employee contributions 110,784 280,309
Employer contribution (Note 5) - 279,900
------------- -------------
394,598 1,022,578
------------- -------------
Total assets $ 59,894,071 $ 54,365,018
------------- -------------
------------- -------------
LIABILITIES
Accrued expenses $ - $ 8,215
------------- -------------
Total liabilities - 8,215
------------- -------------
Net assets available for plan benefits $ 59,894,071 $ 54,356,803
------------- -------------
------------- -------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
- 2 -
<PAGE>
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
AVAILABLE FOR PLAN BENEFITS
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
1994 1993
<S> <C> <C>
ADDITIONS TO NET ASSETS
Investment income:
Interest and dividends $ 3,251,337 $ 3,480,157
Net appreciation (depreciation) in market
value of investments (3,334,047) 1,646,034
Net gain (loss) on sale of investments (189,557) 55,479
------------- -------------
Total investment income (272,267) 5,181,670
------------- -------------
Participant contributions 9,169,405 5,943,501
Employer contributions - 279,900
------------- -------------
Total contributions 9,169,405 6,223,401
------------- -------------
Total additions 8,897,138 11,405,071
------------- -------------
DEDUCTIONS FROM NET ASSETS
Payments to participants (3,227,955) (1,312,800)
Payment of individual insurance contract
premiums (Note 3) (95,312) (101,233)
Administrative expenses (36,603) (23,959)
------------- -------------
Total deductions (3,359,870) (1,437,992)
------------- -------------
INCREASE IN NET ASSETS 5,537,268 9,967,079
Asset transfer from P&C Food Markets, Inc. 401(k)
Savings Plan (Note 11) - 9,694,143
Asset transfer from Quality Markets, Inc. Employees'
Profit Sharing Retirement Plan (Note 11) - 7,817,983
NET ASSETS AVAILABLE FOR PLAN BENEFITS
Beginning of year 54,356,803 26,877,598
------------- -------------
End of year $ 59,894,071 $ 54,356,803
------------- -------------
------------- -------------
</TABLE>
The accompanying notes are an integral part of the financial statments.
- 3 -
<PAGE>
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1994 AND 1993
- --------------------------------------------------------------------------------
1. DESCRIPTION OF THE PLAN
GENERAL
The following brief description of the Penn Traffic Company 401(k) Savings
Plan (the "Plan") sponsored by The Penn Traffic Company (the "Company") is
provided for general information purposes only. Participants should refer
to the Plan agreement for more complete information.
The Plan is a defined contribution plan established by the Company on
July 9, 1987. The Plan is designed to provide benefits to all Company
employees who have attained age twenty-one and have completed at least one
year of service. As part of the Plan, the Company has entered into a trust
agreement with the United States National Bank in Johnstown, Pennsylvania
(the "Bank"), under which the Bank, as trustee, transfers contributions to
a separate trust fund in the Bank's trust department. The assets of the
Plan are held by the Bank's trust department in a fiduciary capacity and as
such are not assets of the Bank. The Plan's trust fund is administered by
the Administrative Committee of the Plan which has retained Coopers &
Lybrand LLP in the capacity of recordkeeper of the Plan.
CONTRIBUTIONS
Employees in the Plan ("participants") may contribute from 1% to 12% of
gross compensation as specified in writing and may elect to change such
once per plan quarter. In November of 1993, the Plan was amended to allow
participants to contribute a maximum of 15% of gross compensation effective
January 1, 1994.
INVESTMENTS
Participants have five options to which they can direct their
contributions. These options are a stable income fund, two diversified
equity funds, one balanced fund and one Company stock fund. The stable
income fund consists of a mix of guaranteed investment contracts and two
actively managed mutual funds. One of the diversified equity funds, the
MAS EQUITY FUND, invests primarily in large blue chip companies with solid
financial characteristics and above-average dividend yields. The other
diversified equity fund, the ACORN FUND, is aggressively managed with a
higher degree of risk. The balanced fund, the DELAWARE FUND, invests in
stocks, bonds and money market instruments. The "Penn Traffic" COMMON
STOCK FUND allows employees the opportunity to purchase Company stock with
pre-tax dollars. A life insurance plan which allowed employees to elect to
purchase life insurance for themselves and their spouses and children is
still effective for those employees purchasing such insurance before
January 1, 1989 (Note 3).
LOANS
Participants may obtain loans of not less that $500 but not more than the
lesser of $50,000 or 50% of the participant's individual investment account
balance. Generally, the term of the loans may not exceed five years.
- 4 -
<PAGE>
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1994 AND 1993
- --------------------------------------------------------------------------------
DISTRIBUTIONS
Each participant is entitled to a retirement benefit equal to 100% of the
participant's accrued benefit as of the valuation date. In the event of
the death of a participant before actual retirement, 100% of the
participant's accrued benefit on the valuation date following his/her death
will constitute his/her death benefit and will be distributed to the
participant's designated beneficiary or beneficiaries. If a participant
terminates employment, he/she will receive 100% of his/her accrued benefit
on the valuation date following his/her separation. A participant
attaining the age of 59-1/2 has the right to withdraw all or a portion of
his/her Plan assets. An in-service distribution to a participant will only
occur if the participant can prove financial hardship to a committee formed
by the Company.
INCOME
Net investment fund income is allocated quarterly to each participant's
investment account in the ratio of their individual investment account to
the investment fund in total.
RESTATEMENT OF THE PLAN AGREEMENT
Effective December 21, 1994, the Plan agreement was restated to reflect all
prior amendments into the Plan agreement in anticipation of the Company's
March 1995 Internal Revenue Service determination letter filing (Note 8).
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING
The financial statements of the Plan are prepared on the accrual basis of
accounting. Interest and dividend income is recognized as earned and
expenses are recognized when the related obligation is incurred.
Investments, excluding guaranteed investment contracts, are recorded at the
closing market prices on December 31, 1994 and 1993. Guaranteed investment
contracts are stated at contract value plus accrued interest.
3. INSURANCE PLAN
Participants of the Plan are permitted to have a portion of their
contributions directed towards the purchase of individual life insurance
contracts for themself, their spouse and their children, for those
employees electing this option before January 1, 1989. As a result of
these elections, the Plan disburses funds periodically to the First Colony
Life Insurance Company for the payment of life insurance premiums. These
insurance contracts are allocated on an individual participant basis and,
as such, are excluded from Plan assets.
- 5 -
<PAGE>
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1994 AND 1993
- --------------------------------------------------------------------------------
4. INVESTMENTS
Investments which exceed 5% of the Plan's net assets at December 31, 1994
include:
<TABLE>
<CAPTION>
MARKET/CONTRACT
COST VALUE
<S> <C> <C>
The Acorn Fund $ 15,939,677 $ 17,866,716
Delaware Balanced Fund 3,359,923 3,145,913
Miller Anderson Sherrard Fixed Income Fund 5,040,698 4,542,227
Miller Anderson Sherrard Equity Fund 5,045,854 4,527,896
Continental Assurance Co. Guaranteed Investment
Contract, guaranteed effective annual interest rate of
7.0%, maturity dates of 5/26/95 (33.3%),
5/28/96 (50%) and 5/27/97 (100%) 3,555,846 3,555,846
Provident National Life Guaranteed Investment
Contract, guaranteed effective annual interest rate of
8.7%, maturity date of 12/31/94 3,489,067 3,489,067
</TABLE>
5. COMPANY CONTRIBUTIONS
Under the former Quality Markets, Inc. Employees' Profit Sharing Retirement
Plan (Note 11), the Company was allowed to make discretionary
contributions. The Company elected to contribute $279,900 to the successor
plan in 1993. In accordance with the provisions of the Plan agreement, the
Company made no other contributions to the Plan for the years ended
December 31, 1994 and 1993 and does not expect to make any future employer
contributions.
6. BENEFIT DISTRIBUTIONS PAYABLE
At December 31, 1994, the amount allocated to participant accounts who have
elected to withdraw from the Plan but have not yet been paid was $609,000.
7. ADMINISTRATIVE COSTS
Expenses incurred by the Bank in connection with investment transactions
and payments to participants are paid by the Plan. Professional, Bank and
administrative fees and other expenses of the Plan are paid by the Company.
Personnel and facilities of the Company are used by the Plan for its
accounting and other activities at no charge to the Plan.
- 6 -
<PAGE>
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1994 AND 1993
- --------------------------------------------------------------------------------
8. TAX STATUS
The Company received a favorable Internal Revenue Service (IRS)
determination letter dated March 10, 1992 stating the Plan meets the
requirements of Section 401(a) and 401(k) of the IRS code and that the Plan
is exempt from taxation under Section 501(a) of the IRS code.
On March 31, 1995, the Company filed for an IRS determination letter for
the Plan restated as of December 21, 1994. The Company believes that the
restated Plan meets the requirements of Sections 401(a) and 401(k) of the
IRS Code and that the restated Plan is exempt from taxation under Section
501(a) of the IRS Code.
Under present federal income tax laws, a participant will not be subject to
federal income taxes on the contributions by the participant or on interest
or profits on the sale of securities held by the Plan until the
participant's assets are distributed.
9. PLAN TERMINATION
The Company expressly reserves the right to terminate the Plan. In the
event of termination, all Plan objectives will be satisfied. All
unallocated assets will then be allocated to the accrued benefits of the
participants' accounts at the date of termination at which time the
participants are fully vested.
10. TRANSACTIONS WITH PARTIES-IN-INTEREST
As of December 31, 1994 and 1993, the Plan held the following:
<TABLE>
<CAPTION>
DECEMBER 31, 1994 DECEMBER 31, 1993
------------------------------------- ------------------------------------
NUMBER MARKET NUMBER MARKET
OF SHARES COST VALUE OF SHARES COST VALUE
<S> <C> <C> <C> <C> <C> <C>
Penn Traffic
common stock 39,649 $ 1,368,935 $ 1,506,662 26,843 $ 860,049 $ 973,059
</TABLE>
- 7 -
<PAGE>
11. PLAN MERGERS
Effective January 1, 1993, the Plan was amended to include all eligible
participants of the Quality Markets, Inc. Employees' Profit Sharing
Retirement Plan. Accordingly, assets of the Quality Markets, Inc.
Employees' Profit Sharing Retirement Plan aggregating $7,817,983 were
transferred January 1, 1993.
On July 17, 1993, the Executive Committee of the Board of Directors from
the Penn Traffic Company consented to merge the P&C Food Markets, Inc.
401(k) Savings Plan into the Plan effective October 1, 1993. On this date,
assets of the P&C Food Markets, Inc. 401(k) Savings Plan totalling
$9,694,143 were transferred.
- 8 -
<PAGE>
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
12.NET ASSETS AVAILABLE FOR PLAN BENEFITS BY INVESTMENT FUND FOR THE YEAR ENDED DECEMBER 31, 1994
STABLE PENN TRAFFIC MAS 401(K)
INCOME ACORN COMMON EQUITY DELAWARE LOAN
FUND FUND STOCK FUND FUND FUND INSURANCE TOTAL
<S> <C> <C> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments at market:
Cash and equivalents
(at cost) $ 632,945 $ - $ - $ - $ - $ - $ - $ 632,945
Mutual Funds (cost of
$31,710,349) 6,834,634 17,866,716 - 4,527,896 3,145,913 - - 32,375,159
Equities - (cost of
$1,368,935) - - 1,506,662 - - - - 1,506,662
Participants' Loans
(cost of $3,656,501) - - - - - 3,656,501 - 3,656,501
------------ ----------- ------------ ------------ ------------ ------------ ------------ ------------
7,467,579 17,866,716 1,506,662 4,527,896 3,145,913 3,656,501 - 38,171,267
Investments at
contract value:
Guaranteed invest-
ment contracts 21,328,206 - - - - - - 21,328,206
------------ ----------- ------------ ------------ ------------ ------------ ------------ ------------
Total investments 28,795,785 17,866,716 1,506,662 4,527,896 3,145,913 3,656,501 - 59,499,473
Receivables:
Accrued income 199,826 - - - 83,988 - - 283,814
Employee contribution 46,850 39,243 5,569 9,528 9,594 - - 110,784
------------ ----------- ------------ ------------ ------------ ------------ ------------ ------------
Total receivables 246,676 39,243 5,569 9,528 93,582 - - 394,598
Net assets available
for plan benefits $ 29,042,461 $17,905,959 $ 1,512,231 $ 4,537,424 $ 3,239,495 $ 3,656,501 $ - $ 59,894,071
------------ ----------- ------------ ------------ ------------ ------------ ------------ ------------
------------ ----------- ------------ ------------ ------------ ------------ ------------ ------------
</TABLE>
- 9 -
<PAGE>
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
13. CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS BY INVESTMENT FUND FOR THE YEAR ENDED DECEMBER 31, 1994
STABLE PENN TRAFFIC MAS 401(K)
INCOME ACORN COMMON EQUITY DELAWARE LOAN
FUND FUND STOCK FUND FUND FUND INSURANCE TOTAL
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investment income:
Interest and dividends $ 1,806,512 $ 926,850 $ - $ 359,032 $ 158,943 $ - $ - $ 3,251,337
Net appreciation (deprecia-
tion) in market value of
investments (592,671) (2,234,620) 24,717 (331,353) (200,120) - - (3,334,047)
Net gain (loss) on sale
of investments (185,228) 5,964 - (10,120) (173) - - (189,557)
------------ ----------- ------------ ------------ ------------ ------------ ------------ ------------
Total investment income 1,028,613 (1,301,806) 24,717 17,559 (41,350) - - (272,267)
------------ ----------- ------------ ------------ ------------ ------------ ------------ ------------
Participant contributions 3,047,707 3,670,048 352,706 886,305 809,355 307,972 95,312 9,169,405
Loan activity 751,307 628,514 71,648 142,555 102,494 (1,696,518) - -
Fund transfer activity (1,090,906) 1,293,564 207,079 (272,569) (137,168) - - -
------------ ----------- ------------ ------------ ------------ ------------ ------------ ------------
Total additions 3,736,721 4,290,320 656,150 773,850 733,331 (1,388,546) 95,312 8,897,138
------------ ----------- ------------ ------------ ------------ ------------ ------------ ------------
Payments to participants (1,789,848) (827,726) (75,125) (254,362) (128,828) (152,066) - (3,227,955)
Payment of individual
insurance contract
premiums - - - - - - (95,312) (95,312)
Administrative expenses (26,282) (6,841) (558) (1,712) (1,210) - - (36,603)
Loans to participants (1,336,827) (872,586) (41,295) (200,572) (109,189) 2,560,469 - -
------------ ----------- ------------ ------------ ------------ ------------ ------------ ------------
Total deductions (3,152,957) (1,707,153) (116,978) (456,646) (239,227) 2,408,403 (95,312) (3,359,870)
------------ ----------- ------------ ------------ ------------ ------------ ------------ ------------
Net increase 583,764 2,583,167 539,172 317,204 494,104 1,019,857 - 5,537,268
- 10 -
<PAGE>
Net assets available for
plan benefits
Beginning of year 28,458,697 15,322,792 973,059 4,220,220 2,745,391 2,636,644 - 54,356,803
------------ ----------- ------------ ------------ ------------ ------------ ------------ ------------
End of year $ 29,042,461 $ 17,905,959 $ 1,512,231 $ 4,537,424 $ 3,239,495 $ 3,656,501 $ - $ 59,894,071
------------ ----------- ------------ ------------ ------------ ------------ ------------ ------------
------------ ----------- ------------ ------------ ------------ ------------ ------------ ------------
</TABLE>
- 11 -
<PAGE>
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1993
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
14. NET ASSETS AVAILABLE FOR PLAN BENEFITS BY INVESTMENT FUND FOR THE YEAR ENDED DECEMBER 31, 1993
STABLE PENN TRAFFIC MAS 401(K)
INCOME ACORN COMMON EQUITY DELAWARE LOAN
FUND FUND STOCK FUND FUND FUND INSURANCE TOTAL
<S> <C> <C> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments at market:
Cash and equivalents $ 2,287,948 $ - $ - $ - $ - $ - $ - $ 2,287,948
Mutual Funds (cost of
$25,709,680) 7,750,389 15,238,443 - 4,198,452 2,545,970 - - 29,733,254
Equities (cost of
$860,049) - - 973,059 - - - - 973,059
Participants' loans
(cost of $2,636,644) - - - - - 2,636,644 - 2,636,644
------------ ----------- ------------ ------------ ------------ ------------ ------------ ------------
10,038,337 15,238,443 973,059 4,198,452 2,545,970 2,636,644 - 35,630,905
Investments at contract value:
Guaranteed invest-
ment contracts 17,711,535 - - - - - - 17,711,535
------------ ----------- ------------ ------------ ------------ ------------ ------------ ------------
Total investments 27,749,872 15,238,443 973,059 4,198,452 2,545,970 2,636,644 - 53,342,440
------------ ----------- ------------ ------------ ------------ ------------ ------------ ------------
Receivables:
Accrued income 276,552 - - - 185,817 - - 462,369
Employee contribution 156,973 86,896 - 22,425 14,.015 - - 280,309
Employer contribution 279,900 - - - - - - 279,900
------------ ----------- ------------ ------------ ------------ ------------ ------------ ------------
Total receivables 713,425 86,896 - 22,425 199,832 - - 1,022,578
Total assets 28,463,297 15,325,339 973,059 4,220,877 2,745,802 2,636,644 - 54,365,018
LIABILITIES:
Accrued expenses 4,600 2,547 - 657 411 - - 8,215
------------ ----------- ------------ ------------ ------------ ------------ ------------ ------------
Net assets available for
plan benefits $ 28,458,697 $15,322,792 $ 973,059 $ 4,220,220 $ 2,745,391 $ 2,636,644 $ - $ 54,356,803
- 12 -
<PAGE>
------------ ----------- ------------ ------------ ------------ ------------ ------------ ------------
------------ ----------- ------------ ------------ ------------ ------------ ------------ ------------
</TABLE>
- 13 -
<PAGE>
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1993
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
15. CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS BY INVESTMENT FUND FOR THE YEAR ENDED DECEMBER 31, 1993
STABLE PENN TRAFFIC MAS 401(K)
INCOME ACORN COMMON EQUITY DELAWARE LOAN
FUND FUND STOCK FUND FUND FUND INSURANCE TOTAL
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investment income:
Interest and dividends $ 2,258,977 $ 653,585 $ - $ 446,492 $ 121,103 $ - $ - $ 3,480,157
Net appreciation (deprecia-
tion) in market value of
investments (13,428) 1,905,526 46,331 (237,970) (54,425) - - 1,646,034
Net gain on sale of
investments 40,765 - 7,143 4,564 3,007 - - 55,479
------------ ----------- ------------ ------------ ------------ ------------ ------------ ------------
Total investment income 2,286,314 2,559,111 53,474 213,086 69,685 - - 5,181,670
------------ ----------- ------------ ------------ ------------ ------------ ------------ ------------
Participant contributions 2,352,984 1,907,800 164,696 685,051 530,444 201,293 101,233 5,943,501
Employer contributions 279,900 - - - - - - 279,900
Loan activity 759,277 323,545 60,262 89,160 56,223 (1,288,467) - -
Fund transfer activity (1,938,053) 1,625,064 74,319 (257,287) 495,957 - - -
------------ ----------- ------------ ------------ ------------ ------------ ------------ ------------
Total additions 3,740,422 6,415,520 352,751 730,010 1,152,309 (1,087,174) 101,233 11,405,071
------------ ----------- ------------ ------------ ------------ ------------ ------------ ------------
Payments to participants (803,113) (281,876) (21,372) (90,757) (50,940) (64,742) - (1,312,800)
Payment of individual
insurance contract
premiums - - - - - - (101,233) (101,233)
Administrative expenses (14,136) (6,229) (240) (1,917) (1,437) - - (23,959)
Loans to participants (1,266,118) (384,130) (35,620) (113,568) (42,811) 1,842,247 - -
------------ ----------- ------------ ------------ ------------ ------------ ------------ ------------
Total deductions (2,083,367) (672,235) (57,232) (206,242) (95,188) 1,777,505 (101,233) (1,437,992)
------------ ----------- ------------ ------------ ------------ ------------ ------------ ------------
Net increase 1,657,055 5,743,285 295,519 523,768 1,057,121 690,331 - 9,967,079
</TABLE>
- 14 -
<PAGE>
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1993
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
15. CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS BY INVESTMENT FUND FOR THE YEAR ENDED DECEMBER 31, 1993 (CONTINUED)
STABLE PENN TRAFFIC MAS 401(K)
INCOME ACORN COMMON EQUITY DELAWARE LOAN
FUND FUND STOCK FUND FUND FUND INSURANCE TOTAL
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Allocation of forfeitures
of employer
contributions $ (42,200) $ 28,731 $ - $ 3,478 $ 9,991 $ - $ - $ -
Asset transfer from
Quality Markets, Inc.
Employees' Profit
Sharing Retirement
Plan (Note 11) 7,817,983 - - - - - - 7,817,983
Asset transfer from P&C
Food Markets, Inc. 401(k)
Savings Plan (Note 11) 3,797,526 3,336,953 336,103 1,371,327 434,636 417,598 - 9,694,143
Net assets available for
plan benefits:
Beginning of year $ 15,228,333 $ 6,213,823 $ 341,437 $ 2,321,647 $ 1,243,643 $ 1,528,715 $ - $ 26,877,598
------------ ----------- ------------ ------------ ------------ ------------ ------------ ------------
End of year $ 28,458,697 $15,322,792 $ 973,059 $ 4,220,220 $ 2,745,391 $ 2,636,644 $ - $ 54,356,803
------------ ----------- ------------ ------------ ------------ ------------ ------------ ------------
------------ ----------- ------------ ------------ ------------ ------------ ------------ ------------
</TABLE>
- 15 -
<PAGE>
SIGNATURES
THE PLAN. Pursuant to the requirements of the Securities Exchange Act
of 1934, the Plan has duly caused this Annual Report to be signed by the
undersigned thereunto duly authorized.
THE PENN TRAFFIC COMPANY
401(k) SAVINGS PLAN
By:
---------------------------------
Eugene R. Sunderhaft
Chairman
Administrative Committee
Date: June 28, 1995
- 16 -
<PAGE>
SCHEDULE I
SUPPLEMENTAL SCHEDULE
DECEMBER 31, 1994
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SCHEDULE OF ASSETS HELD FOR INVESTMENT
AT DECEMBER 31, 1994
-------------------------------
NUMBER OF MARKET
SHARES COST VALUE
<C> <S> <C> <C>
Stable Income Fund
66,502 Cash $ 66,502 $ 66,502
566,443 U.S. Government Agency Repo 566,443 566,443
2,630,514 Aetna Guaranteed Investment Contract, guaranteed effective
annual interest rate of 5.79%, maturity date of 12/31/98 2,630,514 2,630,514
2,830,137 Allstate Guaranteed Investment Contract, guaranteed effective
annual interest rate of 9.2%, maturity date of 10/2/95 2,830,137 2,830,137
1,012,558 Allstate Guaranteed Investment Contract, guaranteed effective
annual interest rate of 8.17%, maturity date of 12/30/99 1,012,558 1,012,558
3,555,846 Continental Assurance Co. Guaranteed Investment
Contract, guaranteed effective annual interest rate of 7.0%,
maturity dates of 5/26/95 (33.3%), 5/28/96 (50%)
and 5/27/97 (100%) 3,555,846 3,555,846
2,624,443 ITT Hartford Guaranteed Investment Contract, guaranteed
effective annual interest rate of 5.52%, maturity date of 12/31/98 2,624,443 2,624,443
2,242,114 Pacific Mutual Guaranteed Investment Contract, guaranteed
effective annual interest rate of 6.17%, maturity dates of
12/31/96 (50%) and 12/31/97 (50%) 2,242,114 2,242,114
1,148,579 Principal Mutual Guaranteed Investment Contract, guaranteed
effective annual interest rate of 8.50%, maturity date of 12/31/97 1,148,579 1,148,579
30,397 Principal Mutual Guaranteed Investment Contract, guaranteed
effective annual interest rate of 8.65%, maturity date of 12/31/96 30,397 30,397
601,828 Principal Mutual Guaranteed Investment Contract, guaranteed
effective annual interest rate of 8.65%, maturity date of 12/31/95 601,828 601,828
1,162,723 Principal Mutual Guaranteed Investment Contract, guaranteed
effective annual interest rate of 8.65%, maturity date of 12/31/94 1,162,723 1,162,723
3,489,067 Provident National Life Guaranteed Investment Contract,
guaranteed effective annual interest rate of 8.7%,
maturity date of 12/31/94 3,489,067 3,489,067
428,916 Miller Anderson Sherrard Fixed Income Fund 5,040,698 4,542,227
239,436 Payden Rygel Global Fixed Income Fund 2,324,197 2,292,407
------------- -------------
29,326,046 28,795,785
1,459,699 The Acorn Fund 15,939,677 17,866,716
<PAGE>
232,438 Miller Anderson Sherrard Equity Fund 5,045,854 4,527,896
187,475 Delaware Balanced Fund 3,359,923 3,145,913
39,649 Penn Traffic Common Stock * 1,368,935 1,506,662
338 401(k) Participant Loans 3,656,501 3,656,501
------------- -------------
Total investments $ 58,696,936 $ 59,499,473
------------- -------------
------------- -------------
<FN>
* Represents Party-in-Interest investment.
</TABLE>
<PAGE>
SCHEDULE II
SUPPLEMENTAL SCHEDULE
DECEMBER 31, 1994
SCHEDULE OF REPORTABLE TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 31, 1994
<TABLE>
<CAPTION>
COST OF
NUMBER OF PURCHASE NUMBER OF SELLING SECURITIES NET GAIN/
PURCHASES PRICE SALES PRICE SOLD (LOSS)
<S> <C> <C> <C> <C> <C> <C>
Acorn Mutual Funds 10 $ 4,888,914 1 $ 31,986 $ 26,021 $ 5,965
Principal Guaranteed
Investment Contract,
guaranteed effective
annual interest rate of
9.35%, maturity date
of 12/31/93 - - 1 3,776,022 3,776,022 -
U.S. Government
Agency Repo 78 10,448,001 51 10,994,044 10,994,044 -
</TABLE>
<PAGE>
EXHIBIT INDEX
The following exhibit is filed as part of the Annual Report:
EXHIBIT NUMBER DESCRIPTION PAGE NUMBER
23.1 Consent of Independent 18
Public Accountants
<PAGE>
EXHIBIT 23.1
CONSENT OF INDEPENDENT ACCOUNTANTS
We hereby consent to the incorporation by reference in the Registration
Statement on Form S-8 (No. 33 - 44063) of our report dated June 23, 1995,
appearing on page 1 of this Form 11-K.
PRICE WATERHOUSE LLP
Syracuse, New York
June 23, 1995
- 18 -
