<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, 1997
(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, NY 13209
<PAGE>
The Penn Traffic Company
401(k) Savings Plan
Financial Statements
December 31, 1997 and 1996
<PAGE>
THE PENN TRAFFIC COMPANY
401(k) SAVINGS PLAN
INDEX TO FINANCIAL STATEMENTS AND SCHEDULES
<TABLE>
<CAPTION>
Page
----
<S> <C>
Report of Independent Accountants..................................... 1
Financial Statements:
Statement of Net Assets Available for Plan Benefits
at December 31, 1997 and 1996................................... 2
Statement of Changes in Net Assets Available for Plan
Benefits for the years ended December 31, 1997 and 1996......... 3
Notes to Financial Statements.................................... 4
Supplemental Schedules: *
Schedule of Assets Held for Investment at
December 31, 1997 (Schedule I).................................. 13
Schedule of Reportable 5% Transactions for the
Year Ended December 31, 1997 (Schedule II)...................... 14
</TABLE>
* Other supplemental schedules required by Section 2520.103-10 of the
Department of Labor Rules and Regulations for Reporting and Disclosure
under the Employee Retirement Income Security Act of 1974 have been
omitted because they are not applicable.
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
June 12, 1998
To the Participants and Administrator
of The Penn Traffic Company
401(k) Savings Plan
In our opinion, the accompanying statements of net assets available for plan
benefits and the related statements 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, 1997 and 1996, and the changes in net assets
available for plan benefits for the years then ended, in conformity with
generally accepted accounting principles. 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 performed 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.
<PAGE>
The Penn Traffic Company
401(k) Savings Plan
Statement of Net Assets Available for Plan Benefits
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
December 31,
1997 1996
------------- ------------
<S> <C> <C>
Assets
Investments at market (cost of $90,890,395
in 1997 and $83,405,851 in 1996)..................... $ 99,844,697 $ 88,554,674
------------- ------------
Receivables:
Due for securities sold...................... 1,341,631 -
Accrued income............................... 6,038,938 840,215
Employee contributions....................... 179,551 -
------------- ------------
Total receivables.......... 7,560,120 840,215
------------- ------------
Due for securities purchased................................... (16,212) -
------------- ------------
Net assets available for plan benefits......................... $ 107,388,605 $ 89,394,889
------------- ------------
------------- ------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
2
<PAGE>
The Penn Traffic Company
401(k) Savings Plan
Statement of Changes in Net Assets Available for Plan Benefits
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended December 31,
1997 1996
------------- -------------
<S> <C> <C>
Additions to net assets
Investment income:
Interest and dividends.................................. $ 3,053,677 $ 2,460,626
Net appreciation in market value of investments 3,594,496 1,251,116
Net gain on sale of investments......................... 9,437,535 5,493,746
------------- -------------
Total investment income ....................... 16,085,708 9,205,488
Participant contributions ................................. 9,848,152 10,266,948
------------- -------------
Total additions ............................... 25,933,860 19,472,436
------------- -------------
Deductions from net assets
Payments to participants................................... (7,808,992) (6,435,142)
Payment of individual insurance contract premiums.......... (81,697) (79,624)
Administrative expenses.................................... (49,455) (60,970)
------------- -------------
Total deductions............................... (7,940,144) (6,575,736)
------------- -------------
Increase in net assets 17,993,716 12,896,700
Asset transfer from The Penn Traffic Company
Insalaco Markets Division Profit Sharing
Retirement Plan (Note 11)................................ -- 3,119,095
------------- -------------
Net assets available for plan benefits
Beginning of year ........................................ 89,394,889 73,379,094
------------- -------------
End of year .............................................. $ 107,388,605 $ 89,394,889
------------- -------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
3
<PAGE>
The Penn Traffic Company
401(k) Savings Plan
Notes to Financial Statements
December 31, 1997 and 1996
- -------------------------------------------------------------------------------
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 US Bancorp Trust Company (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 to provide certain
recordkeeping services.
Contributions
Employees in the Plan ("participants") may contribute from 1% to 15% of
gross compensation as specified in writing and may change such election
once per plan quarter. The Company does not contribute to the Plan.
Participants are always 100% vested in the Plan.
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 three
actively managed mutual funds. One of the diversified equity funds, the MAS
Equity Fund, invests primarily in large blue chip companies with similar
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 allows 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 than $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>
The Penn Traffic Company
401(k) Savings Plan
Notes to Financial Statements
December 31, 1997 and 1996
- -------------------------------------------------------------------------------
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 their death will constitute
their death benefit and will be distributed to the participant's designated
beneficiary or beneficiaries. If a participant terminates employment, they
will receive 100% of their accrued benefit on the valuation date following
their separation. A participant attaining the age of 59 1/2 has the right
to withdraw all or a portion of their 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.
Reclassifications
Certain prior year amounts have been reclassified for comparitive
purposes.
2. Basis of Accounting
The financial statements of the Plan are prepared on the accrual basis of
accounting. Interest and dividend income are 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, 1997 and 1996. Guaranteed investment
contracts are stated at contract value.
The preparation of financial statements in conformity with generally
accepted accounting principles requires the Administrative Committee of the
Plan to make estimates and assumptions that affect the reported amounts of
net assets at the date of the financial statements and the reported amounts
of additions to and deductions from net assets during the reporting period.
Actual results could differ from those estimates.
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 themselves, 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>
The Penn Traffic Company
401(k) Savings Plan
Notes to Financial Statements
December 31, 1997 and 1996
- -------------------------------------------------------------------------------
4. Investments
Investments which exceed 5% of the Plan's net assets at December 31, 1997
include:
<TABLE>
<CAPTION>
Market/
Contract
Cost Value
------------- -------------
<S> <C> <C>
The Acorn Fund....................................... $ 29,358,860 $ 39,127,364
Delaware Balanced Fund............................... 8,123,344 8,948,689
Miller Anderson Sherrard Fixed Income Fund........... 5,825,414 5,926,045
Miller Anderson Sherrard Equity Fund................. 13,405,970 11,933,773
Institutional Investors Stable Asset Fund............ 9,175,260 10,055,735
John Hancock Guaranteed Investment Contract,
guaranteed effective annual interest rate of
8.14%, maturity date of 12/31/99.................... 5,020,652 5,020,652
</TABLE>
5. Guaranteed Investment Contracts
The following aggregate amounts apply to fully benefit-responsive
guaranteed investment contracts reported at contract value and held by the
Plan in its Stable Value Asset Fund at December 31, 1997 and 1996:
<TABLE>
<CAPTION>
December 31,
1997 1996
------------- -------------
<S> <C> <C>
Average yearly yield...................... 6.72% 6.90%
Crediting interest rate................... 8.03% 6.73%
Fair market value......................... $ 13,732,446 $ 15,422,496
</TABLE>
Under certain situations specified in the various contracts, the issuer of
the contract may elect to limit its guarantee and distribute funds at
either contract value or fair market value, whichever is lower. These
situations include premature withdrawals related to cancellation of the
contract by the Plan prior to maturity, plant closings, layoffs, Plan
termination, sponsor bankruptcy and certain early retirement incentives.
6
<PAGE>
The Penn Traffic Company
401(k) Savings Plan
Notes to Financial Statements
December 31, 1997 and 1996
- -------------------------------------------------------------------------------
6. Benefit Distributions Payable
At December 31, 1997 and 1996, the amount allocated to participant accounts
who have elected to withdraw from the Plan but have not yet been paid was
$2,901,027 and $1,352,000, respectively.
7. Administrative Costs
Expenses incurred by the Bank in connection with investment transactions
and payments to participants are paid by the Plan. Bank, professional 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.
8. Tax Status
The Company received a favorable Internal Revenue Service ("IRS")
determination letter dated August 14, 1995 stating that the Plan meets the
requirements of Sections 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.
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, 1997 and 1996, the Plan held the following:
<TABLE>
<CAPTION>
December 31, 1997 December 31, 1996
------------------------------------------- ----------------------------------------
Number of Market Number of Market
Shares Cost Value Shares Cost Value
<S> <C> <C> <C> <C> <C> <C>
Company common
stock................ 211,509 $2,930,792 $1,744,949 99,535 $2,189,603 $360,815
</TABLE>
7
<PAGE>
The Penn Traffic Company
401(k) Savings Plan
Notes to Financial Statements
December 31, 1997 and 1996
- -------------------------------------------------------------------------------
11. Transfer of Assets into Plan
On January 31, 1996, The Penn Traffic Company Insalaco Markets Division
Profit Sharing Retirement Plan (the "Insalaco Plan") was merged into the
Plan. On that date, assets totaling $3,119,095 were transferred into the
Plan. This asset transfer is presented in the statement of changes in net
assets available for Plan benefits for the year ended December 31, 1996.
12. Subsequent Event
In January 1998, the Plan sponsor sold their Dairy Manufacturing Division
(the "Dairy") to Dean Foods. In connection with this sale, the Plan
distributed approximately $2.9 million of Plan assets to Dean Foods for
those Dairy participants who were covered by the Plan.
8
<PAGE>
The Penn Traffic Company
401(k) Savings Plan
Notes to the Financial Statements
December 31, 1997
- -------------------------------------------------------------------------------
13. Net Assets Available for Plan Benefits by Investment Fund at December 31,
1997
<TABLE>
<CAPTION>
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.... $ 67,381 $ 98,263 $ - $ 47,966 $ 26,045 $ 128 $ - $ 239,783
Mutual funds (cost of
$68,001,561)............ 18,131,880 39,127,364 - 11,933,773 8,948,689 - - 78,141,706
Equities (cost of
$2,930,792)............. - - 1,744,949 - - - - 1,744,949
Participants' loans
(cost of $5,790,087).... - - - - - 5,790,087 - 5,790,087
18,199,261 39,225,627 1,744,949 11,981,739 8,974,734 5,790,215 - 85,916,525
----------- ----------- ---------- ----------- ---------- ---------- ------- ------------
Investments at contract
value:
Guaranteed investment
contracts............... 13,928,172 - - - - - - 13,928,172
----------- ----------- ---------- ----------- ---------- ---------- ------- ------------
Total investments....... 32,127,433 39,225,627 1,744,949 11,981,739 8,974,734 5,790,215 - 99,844,697
----------- ----------- ---------- ----------- ---------- ---------- ------- ------------
Receivables:
Securities sold.......... 1,341,631 - - - - - - 1,341,631
Accrued income........... 325,193 - - 4,549,267 1,144,654 19,824 - 6,038,938
Employee contribution.... 51,878 67,744 5,456 34,076 20,397 - - 179,551
----------- ----------- ---------- ----------- ---------- ---------- ------- ------------
Total receivables....... 1,718,702 67,744 5,456 4,583,343 1,165,051 19,824 - 7,560,120
----------- ----------- ---------- ----------- ---------- ---------- ------- ------------
Securities purchased.... - - (16,212) - - - - (16,212)
Net assets available
for plan benefits....... $33,846,135 $39,293,371 $1,734,193 $16,565,082 $10,139,785 $5,810,039 $ - $107,388,605
----------- ----------- ---------- ----------- ---------- ---------- ------- ------------
</TABLE>
9
<PAGE>
14. Changes in Net Assets Available for Plan Benefits by Investment Fund
for the Year Ended December 31, 1997
<TABLE>
<CAPTION>
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... $ 1,725,768 $ 343,631 $ 927 $ 182,730 $ 252,407 $ 548,214 $ - $ 3,053,677
Net appreciation
(depreciation) in
market value of
investments............. 444,631 3,674,264 637,914 (1,666,672) 504,359 - - 3,594,496
Net gain on sale
of investments.......... 150,011 3,664,927 12,249 4,541,967 1,068,381 - - 9,437,535
----------- ----------- ---------- ----------- ---------- ---------- --------- ------------
Total investment
income.................. 2,320,410 7,682,822 651,090 3,058,025 1,825,147 548,214 - 16,085,708
Participant
contributions........... 2,867,068 3,773,977 231,398 1,745,371 1,148,641 - 81,697 9,848,152
Loan activity............ 1,368,342 1,217,879 82,933 491,364 260,399 (3,420,917) - -
Fund transfer
activity................ (1,886,732) (413,779) 466,518 1,254,556 579,437 - - -
----------- ----------- ---------- ----------- ---------- ---------- --------- ------------
Total additions.......... 4,669,088 12,260,899 1,431,939 6,549,316 3,813,624 (2,872,703) 81,697 25,933,860
----------- ----------- ---------- ----------- ---------- ---------- --------- ------------
Payments to
participants............ (3,482,011) (2,284,654) (43,835) (1,027,877) (561,679) (408,936) - (7,808,992)
Payment of individual
insurance contract
premiums................ - - - - - - (81,697) (81,697)
Administrative
expenses................ (18,300) (17,577) (1,755) (7,287) (4,536) - - (49,455)
Loans to participants.... (1,787,817) (1,292,197) (23,396) (500,811) (211,512) 3,815,733 - -
----------- ----------- ---------- ----------- ---------- ---------- --------- ------------
Total deductions......... (5,288,128) (3,594,428) (68,986) (1,535,975) (777,727) 3,406,797 (81,697) (7,940,144)
----------- ----------- ---------- ----------- ---------- ---------- --------- ------------
Net increase............. (619,040) 8,666,471 1,362,953 5,013,341 3,035,897 534,094 - 17,993,716
Net assets available
for plan benefits
Beginning of year........ 34,465,175 30,626,900 371,240 11,551,741 7,103,888 5,275,945 - 89,394,889
----------- ----------- ---------- ----------- ---------- ---------- --------- ------------
End of year.............. $33,846,135 $39,293,371 $1,734,193 $16,565,082 $10,139,785 $5,810,039 $ - $107,388,605
----------- ----------- ---------- ----------- ---------- ---------- --------- ------------
</TABLE>
10
<PAGE>
The Penn Traffic Company
401(k) Savings Plan
Notes to Financial Statements
December 31, 1997
- -------------------------------------------------------------------------------
15. Net Assets Available for Plan Benefits by Investment Fund at December
31, 1996
<TABLE>
<CAPTION>
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>
Investments at market:
Cash and equivalents $ 1,543,901 $ 273,590 $ 10,425 $ 123,740 $ 79,232 $ 810 $ - $ 2,031,698
Mutual funds (cost
of $58,229,368)........ 17,093,673 30,353,310 - 11,428,001 6,331,995 - - 65,206,979
Equities (cost of
$2,189,603)............. - - 360,815 - - - - 360,815
Participants' loans
(cost of $5,275,135)... - - - - - 5,275,135 - 5,275,135
----------- ----------- ---------- ----------- ---------- ---------- --------- ------------
18,637,574 30,626,900 371,240 11,551,741 6,411,227 5,275,945 - 72,874,627
Investments at contract
value:
Guaranteed investment
contracts............... 15,680,047 - - - - - - 15,680,047
----------- ----------- ---------- ----------- ---------- ---------- --------- ------------
Total investments....... 34,317,621 30,626,900 371,240 11,551,741 6,411,227 5,275,945 - 88,554,674
----------- ----------- ---------- ----------- ---------- ---------- --------- ------------
Receivables:
Accrued income.......... 147,554 - - - 692,661 - - 840,215
Employee contribution... - - - - - - - -
----------- ----------- ---------- ----------- ---------- ---------- --------- ------------
Total receivables....... 147,554 - - - 692,661 - - 840,215
----------- ----------- ---------- ----------- ---------- ---------- --------- ------------
Net assets available
for plan benefits...... $34,465,175 $30,626,900 $371,240 $11,551,741 $7,103,888 $5,275,945 $ - $89,394,889
----------- ----------- ---------- ----------- ---------- ---------- --------- ------------
</TABLE>
11
<PAGE>
The Penn Traffic Company
401(k) Savings Plan
Notes to Financial Statements
December 31, 1997
- -------------------------------------------------------------------------------
16. Changes in Net Assets Available for Plan Benefits by Investment Fund
for the Year Ended December 31, 1996
<TABLE>
<CAPTION>
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... $ 1,856,870 $ 195,200 $ - $ 193,217 $ 215,339 $ - $ - $ 2,460,626
Net appreciation
(depreciation) in
market value of
investments............. 174,464 2,213,127 (932,143) (195,500) (8,832) - - 1,251,116
Net gain on sale
of investments.......... 102,350 2,961,719 - 1,807,842 621,835 - - 5,493,746
----------- ----------- ---------- ----------- ---------- ---------- --------- ------------
Total investment
income.................. 2,133,684 5,370,046 (932,143) 1,805,559 828,342 - - 9,205,488
Participant
contributions........... 3,519,872 3,741,334 252,372 1,548,514 1,125,232 - 79,624 10,266,948
Transfer of assets from
The Penn Traffic Company
Insalaco Division Profit
Sharing Retire ment
Plan (Note 11).......... 2,680,156 175,068 10,491 85,912 156,276 11,192 - 3,119,095
Loan activity............ 1,087,509 846,877 58,925 289,699 169,464 (2,452,474) - -
Fund transfer activity... (2,547,416) 452,628 162,983 1,374,149 557,656 - - -
----------- ----------- ---------- ----------- ---------- ---------- --------- ------------
Total additions.......... 6,873,805 10,585,953 (447,372) 5,103,833 2,836,970 (2,441,282) 79,624 22,591,531
----------- ----------- ---------- ----------- ---------- ---------- --------- ------------
Payments to
participants............ (3,074,550) (1,998,218) (38,303) (662,442) (314,396) (347,233) - (6,435,142)
Payment of individual
insurance contract
premiums................ - - - - - - (79,624) (79,624)
Administrative
expenses................ (24,998) (22,188) (268) (8,367) (5,149) - - (60,970)
Loans to participants.... (1,946,662) (1,086,375) (11,410) (346,825) (241,348) 3,632,620 - -
----------- ----------- ---------- ----------- ---------- ---------- --------- ------------
Total deductions......... (5,046,210) (3,106,781) (49,981) (1,017,634) (560,893) 3,285,387 (79,624) (6,575,736)
----------- ----------- ---------- ----------- ---------- ---------- --------- ------------
Net increase............. 1,827,595 7,479,172 (497,353) 4,086,199 2,276,077 844,105 - 16,015,795
Net assets available
for plan benefits
Beginning of year........ 32,637,580 23,147,728 868,593 7,465,542 4,827,811 4,431,840 - 73,379,094
----------- ----------- ---------- ----------- ---------- ---------- --------- ------------
End of year.............. $34,465,175 $30,626,900 $371,240 $11,551,741 $7,103,888 $5,275,945 $ - $89,394,889
----------- ----------- ---------- ----------- ---------- ---------- --------- ------------
</TABLE>
12
<PAGE>
The Penn Traffic Company SCHEDULE I
401(k) Savings Plan
Schedule of Assets Held for Investment
December 31, 1997
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
December 31,
1997
------------------------
Number of Fair
Shares Cost Value
- ---------- ------ -------
<S> <C> <C> <C>
Stable Income Fund:
3,114,400 Aetna Guaranteed Investment Contract, guaranteed effective $3,114,400 $3,114,400
annual interest rate of 5.79%, maturity date of 12/31/98
1,281,564 Allstate Guaranteed Investment Contract, guaranteed effective 1,281,564 1,281,564
annual interest rate of 8.17%, maturity date of 12/31/99
5,020,652 John Hancock Guaranteed Investment Contract, guaranteed 5,020,652 5,020,652
effective annual interest rate of 8.14%, maturity date of
12/31/99
3,069,896 ITT Hartford Guaranteed Investment Contract, guaranteed 3,069,896 3,069,896
effective annual interest rate of 5.52%, maturity date of
12/31/98
1,441,660 Principal Mutual Guaranteed Investment Contract, guaranteed 1,441,660 1,441,660
effective annual interest rate of 8.5%, maturity date of
12/31/97
534,453 Institutional Investor Stable Asset Fund 9,175,260 10,055,735
497,151 Miller Anderson Sherrard Fixed Income Fund 5,825,414 5,926,045
209,971 Payden Rygel Global Fixed Income Fund 2,112,713 2,150,100
67,381 Cash and Cash Equivalents 67,381 67,381
----------- -----------
Total Stable Income Fund 31,108,940 32,127,433
2,304,875 The Acorn Fund 29,358,860 39,127,364
573,188 Miller Anderson Sherrard Equity Fund 13,405,970 11,933,773
413,908 Delaware Balanced Fund 8,123,344 8,948,689
211,509 The Penn Traffic Company Common Stock * 2,930,792 1,744,949
172,402 Cash and cash equivalents 172,402 172,402
2,259 401(k) Participant Loans (interest rates from
9.25% to 9.75%) 5,790,087 5,790,087
----------- -----------
Total investments $90,890,395 $99,844,697
----------- -----------
</TABLE>
* Represents Party-in-Interest investment.
13
<PAGE>
The Penn Traffic Company SCHEDULE II
401(k) Savings Plan
Schedule of Reportable 5% Transactions for the Year Ended December 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Number Number Cost of Net
of Purchase of Selling Securities Gain/
Purchases Price Sales Price Sold (Loss)
--------- -------- ---------- ---------- ---------- -------
<S> <C> <C> <C> <C> <C> <C>
Series of Transactions:
Acorn Mutual Fund 12 $ 5,677,877
Provident Federal Funds 202 14,216,254 240 14,482,021 14,482,021 -
</TABLE>
14
<PAGE>
EXHIBITS
<TABLE>
<CAPTION>
Exhibit
Number Description
- ------- -----------
<S> <C>
23.1 Consent of Independent Public Accountants
</TABLE>
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:
--------------------------------------
Robert J. Davis
Chairman
Administrative Committee
Date: June 12, 1998
15
<PAGE>
EXHIBIT INDEX
The following exhibit is filed as part of the Annual Report:
<TABLE>
<CAPTION>
Exhibit Number Description Page Number
- --------------- ---------------------------------- -----------
<S> <C> <C>
23.1 Consent of Independent Accountants 17
</TABLE>
16
<PAGE>
Exhibit 23.1
CONSENT OF INDEPENDENT ACCOUNTANTS
We hereby consent to the incorporation by reference in the Registration
Statements on Form S-8 (Nos. 33- 32307 and 33-44063) of The Penn Traffic
Company of our report dated June 12, 1998, appearing on page 1 of this
Form 11-K.
PRICE WATERHOUSE LLP
Syracuse, New York
June 12, 1998
17
