<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
----------------------
FORM 11-K
----------------------
(Mark One)
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE FISCAL YEAR ENDED FEBRUARY 28, 1997
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE TRANSITION PERIOD FROM __________ TO __________
COMMISSION FILE NO. 0-14749
ROCKY MOUNTAIN CHOCOLATE FACTORY, INC.401(K) PLAN
(FULL TITLE OF PLAN AND ADDRESS OF PLAN IF DIFFERENT
FROM THAT OF ISSUER NAMED BELOW)
----------------------
ROCKY MOUNTAIN CHOCOLATE FACTORY, INC.
265 Turner Drive
Durango, Colorado 81301
(NAME OF ISSUER OF SECURITIES HELD PURSUANT TO THE PLAN
AND THE ADDRESS OF ITS PRINCIPAL EXECUTIVE OFFICE)
<PAGE>
REQUIRED INFORMATION
The report filed as Exhibit 1 hereto (the "Plan Information") is
incorporated by reference herein in satisfaction of the financial statement
requirements of Form 11-K pursuant to Item 4 of Form 11-K. The Plan Information
has been prepared in accordance with the financial reporting requirements of
ERISA. ERISA (without regard to the limited scope exemption contained in
Section 103(a)(3)(C) thereof) does not require the Plan Information to be
examined by an independent accountant.
EXHIBITS
Exhibit
Number Description
------- -----------
1 Return/Report of the Plan on Form 5500-R for the year ended
February 28, 1997
2 Form of Rocky Mountain Chocolate Factory, Inc. 401(k) Plan
(incorporated by reference to Exhibit 4.1 to the Company's
Registration Statement on Form S-8 (Registration No. 33-
79342) filed on May 25, 1994).
2
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Administrator of the Rocky Mountain Chocolate Factory, Inc. 401(k) Plan has duly
caused this annual report to be signed on its behalf by the undersigned hereunto
duly authorized.
ROCKY MOUNTAIN CHOCOLATE FACTORY, INC.
401(K) PLAN
By: Rocky Mountain Chocolate Factory, Inc.,
Plan Administrator
Date: August 27, 1997 By: /s/ LAWRENCE C. REZENTES
---------------------------------------------
Lawrence C. Rezentes, Vice President-Finance
3
<PAGE>
INDEX TO EXHIBITS
Exhibit
Number Description
------ -----------
1 Return/Report of the Plan on Form 5500-R for the year ended
February 28, 1997
2 Form of Rocky Mountain Chocolate Factory, Inc. 401(k) Plan
(incorporated by reference to Exhibit 4.1 to the Company's
Registration Statement on Form S-8 (Registration No. 33-
79342) filed on May 25, 1994).
4
<PAGE>
<TABLE>
<CAPTION>
<S><C>
Form 5500-C/R RETURN/REPORT OF EMPLOYEE BENEFIT PLAN OMD NOS. 1210-0016
(WITH FEWER THAN 100 PARTICIPANTS) 1210-0089
Department of the Treasury THIS FORM IS REQUIRED TO BE FILED UNDER SECTIONS 104 AND 4065 OF THE 1996
Internal Revenue Service EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974 AND SECTIONS 6039D, 6047(e),
----------- 6057(b), AND 6058(a) OF THE INTERNAL REVENUE CODE. THIS FORM IS OPEN
Department of Labor TO PUBLIC
Pension and Welfare Benefits INSPECTION.
Administration
-----------
Pension Benefit Guaranty Corporation See separate instructions.
- ----------------------------------------------------------------------------------------------------------------------------------
FOR THE CALENDAR PLAN YEAR 1996 OR FISCAL PLAN YEAR BEGINNING MARCH 1, 1996, AND ENDING FEBRUARY 28, 1997
- ----------------------------------------------------------------------------------------------------------------------------------
If A(1) through A(4), B, C, and/or D do not apply to this year's return/report, FOR IRS USE ONLY
leave the boxes unmarked. EP-ID
------------------------------------------
YOU MUST CHECK EITHER BOX A(5) OR A(6), WHICHEVER IS APPLICABLE. SEE INSTRUCTIONS.
A This return/report is: (5) FORM 5500-C FILER CHECK HERE....../ /
(1) / / The first return/report filed for the plan; (Complete only pages 1 and 3 through
(2) / / an amended return/report; 6.) (Code Section 6039D
(3) / / the final return/report filed for the plan; or filers see instructions on page 5.)
(4) / / a short plan year return/report (less than 12 months). (6) FORM 5500-R FILER CHECK HERE....../X/
(Complete only pages 1 and 2. Detach
pages 3 through 6 before filing.) If
you checked box (1) or (3), you must
file a Form 5500-C. (See page 6 of
the instructions.)
IF ANY INFORMATION ON A PREPRINTED PAGE 1 IS INCORRECT, CORRECT IT. IF ANY INFORMATION IS MISSING, ADD IT. PLEASE USE
RED INK WHEN MAKING THESE CHANGES AND INCLUDE THE PREPRINTED PAGE 1 WITH YOUR COMPLETED RETURN/REPORT.
B Check here if any information reported in 1a, 2a, 2b, or 5a changed since the last return/report for this plan............../ /
C If your plan year changed since the last return/report, check here........................................................../ /
D If you filed for an extension of time to file this return/report, check here and attach a copy of the approved extension..../ /
- ----------------------------------------------------------------------------------------------------------------------------------
1a Name and address of plan sponsor (employer, if for a single-employer plan) 1b Employer identification number (EIN)
(Address should include room or suite no.) 84 0910696
----------------------------------------
ROCKY MOUNTAIN CHOCOLATE FACTORY, INC. 1c Sponsor's telephone number
265 TURNER DRIVE (303) 247-4943
DURANGO, CO 81301-0000 ----------------------------------------
1d Business code (see instructions,
page 17)
2060
----------------------------------------
1e CUSIP issuer number
N/A
- ----------------------------------------------------------------------------------------------------------------------------------
2a Name and address of plan administrator (if same as plan sponsor, enter "Same") 2b Administrator's EIN
SAME
----------------------------------------
2c Administrator's telephone number
- ----------------------------------------------------------------------------------------------------------------------------------
3 If you are filing this page without the preprinted historical plan information and the name, address, and EIN of the plan
sponsor or plan administrator has changed since the last return/report filed for this plan, enter the information from the
last return/report on lines 3a and/or 3b and complete line 3c.
a Sponsor EIN Plan number
------------------------------------------------------------------------------ ------------- --------------
b Administrator EIN
------------------------------------------------------------------------ --------------------------------------
c If line 3a indicates a change in the sponsor's name, address, and EIN, is this a change in sponsorship only? (See line 3c on
page 8 of the instructions for the definition of sponsorship.) Enter "Yes" or "No."
- ----------------------------------------------------------------------------------------------------------------------------------
4 ENTITY CODE. (If not shown, enter applicable code from page 8 of the instructions.) A
- ----------------------------------------------------------------------------------------------------------------------------------
5a Name of plan ROCKY MOUNTAIN CHOCOLATE 5b Effective date of plan (mo., day, yr.)
-----------------------------------------------------------------------
FACTORY, INC. 401(K) PLAN June 1, 1994
- --------------------------------------------------------------------------------------- -----------------------------------------
5c Three-digit
- ---------------------------------------------------------------------------------------
ALL FILERS MUST COMPLETE 6a THROUGH 6d, AS APPLICABLE. plan number 0 0 1
-----------------------------------------
6a / / Welfare benefit plan 6b /x/ Pension benefit plan 2
-----------------------------------------
(If the correct codes are not preprinted below, enter the applicable codes from
page 8 of the instructions in the boxes.) -----------------------------------------
6c Pension plan features. (If the correct codes are not preprinted below, enter the
-----------------------------------------
applicable pension plan feature codes from page 8 of the instructions in the boxes.) C G
-----------------------------------------
6d / / Fringe benefit plan. Attach Schedule F (Form 5500). See instructions.
- ----------------------------------------------------------------------------------------------------------------------------------
CAUTION: A PENALTY FOR THE LATE OR INCOMPLETE FILING OF THIS RETURN/REPORT WILL BE ASSESSED UNLESS REASONABLE CAUSE IS
ESTABLISHED.
- ----------------------------------------------------------------------------------------------------------------------------------
Under penalties of perjury and other penalties set forth in the instructions, I declare that I have examined this return/report,
including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete.
Signature of employer/plan sponsor Date
-------------------------------------------------------------- ------------------------------
Type or print name of individual signing above
------------------------------------------------------------------------------------
Signature of plan administrator Date
----------------------------------------------------------------- ------------------------------
Type or print name of individual signing above
- ----------------------------------------------------------------------------------------------------------------------------------
FOR PAPERWORK REDUCTION ACT NOTICE, SEE PAGE 1 OF THE INSTRUCTIONS. Cat. No. 10957K Form 5500-C/R (1996)
</TABLE>
<PAGE>
Form 5500-C/R(1996) FORM 5500-R FILERS, COMPLETE PAGES 1 AND 2 ONLY. PAGE 2
FORM 5500-C FILERS, COMPLETE PAGE 1, SKIP PAGE 2, AND COMPLETE PAGE 3 THROUGH 6.
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
6 e Check investment arrangement(s): (1) / / Master trust (2)/ / Common/Collective trust (3) /X/ Pooled separate account YES NO
- ----------------------------------------------------------------------------------------------------------------------------------
7 a Total participants: (1) At the beginning of plan year > 98 (2) At the end of plan year > 108
---------- -------
b Enter the number of participants with account balances at the end of the plan year (defined benefit plans do not complete
this item) 73
-----
c (1) Were any participants in the pension benefit plan separated from service with a deferred vested benefit for which a
Schedule SSA (Form 5500) is required to be attached? (See instructions.)...........................................7c(1) X
(2) If "Yes," enter the number of separated participants required to be reported >
- ----------------------------------------------------------------------------------------------------------------------------------
8 a Was this plan terminated during this plan year or any prior plan year? If "Yes," enter the year > 8a X
b Were all the plan assets either distributed to participants or beneficiaries, transferred to another
plan, or brought under the control of PBGC? 8b X
c If line 8a is "Yes" and the plan is covered by PBGC, is the plan continuing to file PBGC Form 1 and pay
premiums until the end of the plan year in which assets are distributed or brought under the control of
PBGC? ......................................................................................................... 8c
- ----------------------------------------------------------------------------------------------------------------------------------
9 Is this a plan established or maintained pursuant to one or more collective bargaining agreements?.............. 9 X
- ----------------------------------------------------------------------------------------------------------------------------------
10 If any benefits are provided by an insurance company, insurance service, or similar organization, enter the
number of Schedules A (Form 5500), Insurance Information, that are attached. If none, enter -0-. > 1
- ----------------------------------------------------------------------------------------------------------------------------------
11 a (1) Were any plan amendments adopted during this plan year?..................................................11a(1) X
(2) Enter the date the most recent amendment was adopted > Month 05 Day 27 Year 94
---- ---- ----
b If line 11a is "Yes," did any amendment result in a retroactive reduction of accrued benefits for any
participant?.................................................................................................11b
c If line 11a is "Yes," did any amendment change the information contained in the latest summary plan
description or summary description of modifications available at the time of the amendment?..................11c
d If line 11c is "Yes," has a summary plan description or summary description of modifications that reflects
the plan amendments referred to on line 11c been both furnished to participants and filed with the Department
of Labor?....................................................................................................11d
- ----------------------------------------------------------------------------------------------------------------------------------
12 a If this is a pension benefit plan subject to the minimum funding standards, has the plan experienced a
funding deficiency for this plan year? (See instructions.)...................................................12a X
b If line 12a is "Yes," have you filed form 5330 to pay the exercise tax?......................................12b
c Is the plan administrator making an election under section 412(c)(8) for an amendment adopted after the
end of the plan year? (See instructions.)....................................................................12c X
d If a change in the actuarial funding method was made for the plan year pursuant to a Revenue Procedure
providing automatic approval for the change, indicate whether the plan sponsor/administrator agrees
to the change................................................................................................12d
- ----------------------------------------------------------------------------------------------------------------------------------
13 a Total plan assets as of the beginning 198,682 and end 287,770 of the plan year
---------- --------
b Total liabilities as of the beginning 0 and end 0 of the plan year
---------- --------
c Net assets as of the beginning 198,682 and end > 287,770 of the plan year
---------- --------
- ----------------------------------------------------------------------------------------------------------------------------------
14 For this plan year, enter: a Plan income 102,292 d Plan contributions 137,473
----------- -----------
b Expenses 13,204 e Total benefits paid 13,193
----------- -----------
c Net income (loss)(subtract 14b from 14a) 89,088
--------
- ----------------------------------------------------------------------------------------------------------------------------------
15 You may NOT use N/A in response to lines 15a through 15o. If you check "Yes," you must enter a YES NO AMOUNT
dollar amount in the amount column. DURING THIS PLAN YEAR:
a Was this plan covered by a fidelity bond?.....................................................15a X 50,000
b If line 15a is "Yes," enter the name of the surety company > HARTFORD FIRE INSURANCE CO.
c Was there any loss to the plan, whether or not reimbursed, caused by fraud or dishonesty?.....15c X
d Was there any sale, exchange, or lease of any property between the plan and the employer,
any fiduciary, any of the five most highly paid employees of the employer, any owner of
a 10% or more interest in the employer, or relatives of any such persons?.....................15d X
e Was there any loan or extension of credit by the plan to the employer, any fiduciary, any
of the five most highly paid employees of the employer, any owner of a 10% or more interest
in the employer, or relatives of any such persons?............................................15e X
f Did the plan acquire or hold any employer security or employer real property?.................15f X
g Has the plan granted an extension on any delinquent loan owed to the plan?...................15g X
h Were any participant contributions transmitted to the plan more than 31 days after receipt
or withholding by the employer?...............................................................15h X
i Were any loans by the plan or fixed income obligations due the plan classified as
uncollectible or in default as of the close of the plan year?.................................15i X
j Has any plan fiduciary had a financial interest in excess of 10% in any party providing
services to the plan or received anything of value from any such party?.......................15j X
k Did the plan at any time hold 20% or more of its assets in any single security, debt,
mortgage, parcel of real estate, or partnership/joint venture interests?......................15k X 76,997
l Did the plan at any time engage in any transaction or series of related transactions
involving 20% or more of the current value of plan assets?....................................15l X 77,087
m Were there any noncash contributions made to the plan the value of which was set without
an appraisal by an independent third party?...................................................15m X
n Were there any purchases of nonpublicly traded securities by the plan the value of which
was set without an appraisal by an independent third party?...................................15n X
o Has the plan reduced or failed to provide any benefit when due under the plan because
of insufficient assets?.......................................................................15o X
- ----------------------------------------------------------------------------------------------------------------------------------
16 a Is the plan covered under the Pension Benefit Guaranty Corporation termination insurance
program? / / Yes / / No / / Not determined
b If line 16a is "Yes" or "Not determined," enter the employer identification number and the plan
number used to identify it.
Employer identification number > Plan number >
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
[LOGO] 12/31/96 FUND STATEMENT
POOLED SEPARATE ACCOUNT-
MONEY MARKET
BALANCE SHEET
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------
ASSETS
<S> <C>
Bonds $1,157,636,689
Bank Deposits 2,722,936
Receivable From Principal Mutual Life
Insurance Co. 47,894,506
--------------
Total Assets $1,208,254,131
--------------
--------------
<CAPTION>
LIABILITIES & SURPLUS
<S> <C>
Unallocated Reserves $1,205,625,266
Remitted & Items Not Allocated 2,628,865
--------------
Total Liabilities 1,208,254,131
Surplus 0
--------------
Total Liabilities and Surplus $1,208,254,131
--------------
--------------
</TABLE>
SUMMARY OF OPERATIONS
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------
RECEIPTS
<S> <C>
Deposits and Net Transfers $ 386,878,049
Interest Income 59,058,382
--------------
Total Receipts $ 445,936,431
<CAPTION>
DISBURSEMENTS
<S> <C>
Benefit Payments $ 174,892,793
Funds Withdrawn 166,925,829
Investment Management, Mortality, and
Administration Charges 8,003,079
Investment Expenses 862,874
--------------
Total Disbursements 350,684,575
--------------
Increase in Reserves $ 95,251,856
--------------
--------------
</TABLE>
<PAGE>
[LOGO] 12/31/96 FUND STATEMENT
POOLED SEPARATE ACCOUNT-
GOVERNMENT SECURITIES
BALANCE SHEET
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------
ASSETS
<S> <C>
Bonds $ 196,903,413
Bank Deposits 789
Adjustment to Investments to Reflect Market Value 544,173
Investment Income Due & Accrued 1,097,233
Receivable From Principal Mutual Life
Insurance Co. 3,242,084
Remitted & Items Not Allocated 153
--------------
Total Assets $ 201,787,845
--------------
--------------
<CAPTION>
LIABILITIES & SURPLUS
<S> <C>
Unallocated Reserves $ 198,831,244
Payable For Investments Purchased 2,956,601
--------------
Total Liabilities 201,787,845
Surplus 0
--------------
Total Liabilities and Surplus $ 201,787,845
--------------
--------------
</TABLE>
SUMMARY OF OPERATIONS
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------
RECEIPTS
<S> <C> <C>
Deposits and Net Transfers $ 72,190,961
Gross Investment Income:
Interest Income 11,770,045
Change In:
Investment Income
Earned But Not Collected 341,940
Accrued Interest Receivable (257,385) 11,854,600
----------
Change in Net Unrealized
Appreciation/Depreciation of
Investments (4,048,223)
Realized Capital Gain 374,733
--------------
Total Receipts $ 80,372,071
<CAPTION>
DISBURSEMENTS
<S> <C>
Funds Withdrawn $ 13,176,335
Benefit Payments 10,136,799
Investment Management, Mortality, and
Administration Charges 1,179,221
Investment Expenses 133,628
--------------
Total Disbursements 24,625,983
--------------
Increase in Reserves $ 55,745,500
Contributed Surplus 588
--------------
$ 55,746,088
--------------
--------------
</TABLE>
<PAGE>
[LOGO] 12/31/96 FUND STATEMENT
POOLED SEPARATE ACCOUNT-
BOND EMPHASIS BALANCED
BALANCE SHEET
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------
ASSETS
<S> <C>
Investment in Principal Mutual Life
Insurance Company Separate Account:
Bond and Mortgage $ 65,476,329
Government Securities 44,301,931
U.S. Stock 24,141,652
International Stock 17,489,272
Real Estate 18,135,887
Large Company Value 1,110,664
Small Company Value 246,849
Large Company Growth 740,415
Small Company Growth 123,411
Remitted and Items Not Allocated 4,444,006
Adjustment to Investments to Reflect Market Value 21,396,753
--------------
Total Assets $ 197,607,169
--------------
--------------
<CAPTION>
LIABILITIES & SURPLUS
<S> <C>
Unallocated Reserves $ 197,607,169
--------------
Total Liabilities 197,607,169
Surplus 0
--------------
Total Liabilities and Surplus $ 197,607,169
--------------
--------------
</TABLE>
SUMMARY OF OPERATIONS
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------
RECEIPTS
<S> <C>
Deposits and Net Transfers $ 65,818,615
Change in Net Unrealized
Appreciation/Depreciation of
Investments 7,205,810
Realized Capital Gain 9,361,046
--------------
Total Receipts $ 82,385,471
--------------
--------------
<CAPTION>
DISBURSEMENTS
<S> <C>
Funds Withdrawn $ 24,523,164
Benefit Payments 10,722,706
Investment Management, Mortality, and
Administration Charges 320,034
--------------
Total Disbursements 35,565,904
--------------
Increase in Reserves $ 46,819,567
--------------
--------------
</TABLE>
<PAGE>
[LOGO] 12/31/96 FUND STATEMENT
POOLED SEPARATE ACCOUNT-
STOCK EMPHASIS BALANCED
BALANCE SHEET
- --------------------------------------------------------------------------------
ASSETS
Investment in Principal Mutual Life
Insurance Company Separate Account:
Bond and Mortgage $ 68,701,241
Government Securities 39,887,632
U.S. Stock 159,984,815
International Stock 61,237,702
Real Estate 60,726,163
Large Company Value 3,427,828
Small Company Value 791,180
Large Company Growth 2,241,170
Small Company Growth 263,690
Remitted and Items Not Allocated 11,380,208
Adjustments to Investments to Reflect
Market Value 22,886,684
------------
Total Assets $431,528,313
------------
------------
LIABILITIES & SURPLUS
Unallocated Reserves $431,528,313
------------
Total Liabilities 431,528,313
Surplus 0
------------
Total Liabilities & Surplus $431,528,313
------------
------------
SUMMARY OF OPERATIONS
- -------------------------------------------------------------------------------
RECEIPTS
Deposits and Net Transfers $154,974,610
Change in Net Unrealized
Appreciation/Depreciation of
Investments (6,588,723)
Realized Capital Gain 58,270,814
------------
Total Reciepts $206,656,701
DISBURSEMENTS
Funds Withdrawn $ 17,432,293
Benefit Payments 20,656,000
Investment Management, Mortality,
and Administration Charges 693,802
------------
Total Disbursements 38,782,095
------------
Increase in Reserves $167,874,606
------------
------------
Principal Mutual Life Insurance Company, Des Moines, Iowa 50392-0001.
<PAGE>
[LOGO] 12/31/96 FUND STATEMENT
POOLED SEPARATE ACCOUNT-
STOCK INDEX 500
BALANCE SHEET
- --------------------------------------------------------------------------------
ASSETS
Bonds $ 24,906,211
Common Stock 936,737,449
Bank Deposits 55,076
Adjustment to Investments
to Reflect Market Value 382,979,288
Investment Income Due & Accrued 2,246,871
Receivable From Principal Mutual
Life Insurance Co. 3,782,141
--------------
$1,350,707,036
--------------
--------------
LIABILITIES
Unallocated Reserves $1,325,794,256
Remitted & Items Not Allocated 824
Payable for Investments Purchased 24,911,956
--------------
Total Liabilities 1,350,707,036
Surplus 0
--------------
Total Liabilities & Surplus $1,350,707,036
--------------
--------------
SUMMARY OF OPERATIONS
- -------------------------------------------------------------------------------
RECEIPTS
Deposits and Net Transfers $ 397,820,438
Gross Investment Income:
Dividend Income 22,551,121
Interest Income 152,983
Charge in Investment Income
Earned But Not Collected 876,502 23,580,606
----------
Change in Net Unrealized
Appreciation/Depreciation of
Investments 183,764,903
Realized Capital Gain 11,584,688
--------------
Total Receipts $ 616,750,635
DISBURSEMENTS
Benefit Payments $ 64,560,629
Funds Withdrawn 56,963,996
Investment Management, Mortality,
and Administration Charges 5,494,123
Investment Expenses 843,076
--------------
Total Disbursements 127,861,824
--------------
Increase in Reserves 488,274,450
Contributed Surplus 614,361
--------------
$ 488,888,811
--------------
--------------
Principal Mutual Life Insurance Company, Des Moines, Iowa 50392-0001.
<PAGE>
[LOGO] 12/31/96 FUND STATEMENT
POOLED SEPARATE ACCOUNT-
U.S. STOCK
BALANCE SHEET
- --------------------------------------------------------------------------------
ASSETS
Bonds $ 97,804,829
Common Stock 5,842,967,334
Bank Deposits 57,822
Adjustment to Investments
to Reflect Market Value 1,109,052,797
Investment Income Due & Accrued 12,663,762
Receivable From Principal Mutual Life
Insurance Co. 81,874,989
Remitted & Items Not Allocated 29,221,499
--------------
Total Assets $7,173,643,032
--------------
--------------
LIABILITIES & SURPLUS
Allocated Annuities Reserve $ 100,268,907
Unallocated Reserves 7,007,191,337
Payable for Investments Purchased 66,182,788
--------------
Total Liabilities 7,173,643,032
Surplus 0
--------------
Total Liabilities & Surplus $7,173,643,032
--------------
--------------
SUMMARY OF OPERATIONS
- -------------------------------------------------------------------------------
RECEIPTS
Deposits and Net Transfers $ 690,456,067
Gross Investment Income:
Dividend Income 140,608,715
Interest Income 4,299,495
Investment Fee Income 2,379
Change in Investment Income
Earned But Not Collected 4,377,248 149,287,837
-----------
Change in Net Unrealized
Appreciation/Depreciation of
Investments (64,082,654)
Realized Capital Gain 1,318,852,405
--------------
Total Receipts $2,094,513,655
DISBURSEMENTS
Funds Withdrawn $ 459,957,577
Benefit Payments 294,378,717
Annuity Payments 20,670,246
Investment Management, Mortality,
and Administration Charges 36,723,947
Investment Expenses 5,066,705
--------------
Total Disbursements 816,797,192
--------------
Increase in Reserves $1,277,716,463
--------------
--------------
Principal Mutual Life Insurance Company, Des Moines, Iowa 50392-0001.
<PAGE>
12/31/96 FUND STATEMENT
[LOGO OF THE PRINCIAL FINANCIAL GROUP] POOLED SEPARATE ACCOUNT-
MEDIUM COMPANY VALUE
BALANCE SHEET
ASSETS
Bonds $ 7,698,610
Common Stock 441,975,904
Bank Deposits 73,584
Adjustment to Investments
to Reflect Market Value 36,400,920
Investment Income Due & Accrued 1,383,397
Receivable From Principal Mutual
Life Insurance Co. 8,257,874
Remitted & Items Not Allocated 1,210,355
------------
Total Assets $497,000,644
------------
------------
LIABILITIES & SURPLUS
Unallocated Reserves $493,482,774
Payable for Investments Purchased 3,517,870
------------
Total Liabilities 497,000,644
Surplus 0
------------
Total Liabilities & Surplus $497,000,644
------------
------------
SUMMARY OF OPERATIONS
RECEIPTS
Deposits and Net Transfers $205,630,242
Gross Investment Income:
Dividend Income 14,752,299
Interest Income 519,369
Change in Investment Income
Earned But Not Collected 978,807 16,250,475
------------
Change in Net Unrealized
Appreciation/Depreciation of
Investments 14,132,133
Realized Capital Gain 29,611,230
------------
Total Receipts $265,624,080
------------
------------
DISBURSEMENTS
Benefit Payments $ 17,708,077
Funds Withdrawn 12,382,760
Investment Management, Mortality,
and Administration Charges 2,541,384
Investment Expenses 303,448
------------
Total Disbursements 32,935,669
------------
Increase in Reserves $232,688,411
------------
------------
Principal Mutual Life Insurance Company, Des Moines, Iowa 50392-0001
<PAGE>
12/31/96 FUND STATEMENT
[LOGO OF THE PRINCIAL FINANCIAL GROUP] POOLED SEPARATE ACCOUNT-
MEDIUM COMPANY BLEND
BALANCE SHEET
ASSETS
Bonds $ 18,434,058
Preferred Stock 81,400
Common Stock 404,112,973
Bank Deposits 58,359
Adjustment to Investments
to Reflect Market Value 109,814,810
Investment Income Due & Accrued 856,480
Receivable From Principal Mutual
Life Insurance Co. 11,329,069
------------
Total Assets $544,687,149
------------
------------
LIABILITIES & SURPLUS
Unallocated Reserves $544,687,149
------------
Total Liabilities 544,687,149
Surplus 0
------------
Total Liabilities & Surplus $544,687,149
------------
------------
SUMMARY OF OPERATIONS
RECEIPTS
Deposits and Net Transfers $203,981,012
Gross Investment Income:
Dividend Income 6,681,024
Interest Income 737,184
Change in Investment Income
Earned But Not Collected 352,957 7,771,165
----------
Change in Net Unrealized
Appreciation/Depreciation of
Investments 63,894,046
Realized Capital Gain 1,929,059
------------
Total Receipts $277,575,282
------------
------------
DISBURSEMENTS
Benefit Payments $ 22,729,456
Funds Withdrawn 17,195,973
Investment Management, Mortality,
and Administration Charges 2,987,872
Investment Expenses 340,237
------------
Total Disbursements 43,253,538
------------
Increase in Reserves $234,321,744
------------
------------
Principal Mutual Life Insurance Company, Des Moines, Iowa 50392-0001
<PAGE>
12/31/96 FUND STATEMENT
[LOGO OF THE PRINCIAL FINANCIAL GROUP] POOLED SEPARATE ACCOUNT-
SMALL COMPANY BLEND
BALANCE SHEET
ASSETS
Bonds $ 44,201,240
Common Stock 824,124,196
Bank Deposits 1,753,840
Adjustment to Investments
to Reflect Market Value 117,226,995
Investment Income Due & Accrued 321,114
Receivable for Investments Sold 2,031,061
Receivable From Principal Mutual
Life Insurance Co. 35,762,079
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Total Assets $1,025,420,525
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LIABILITIES & SURPLUS
Unallocated Reserves $1,022,696,239
Remitted & Items Not Allocated 2,724,286
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Total Liabilities 1,025,420,525
Surplus 0
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Total Liabilities & Surplus $1,025,420,525
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SUMMARY OF OPERATIONS
RECEIPTS
Deposits and Net Transfers $453,859,262
Gross Investment Income:
Dividend Income 4,467,215
Interest Income 1,609,242
Change in Investment Income
Earned But Not Collected 40,326 6,116,783
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Change in Net Unrealized
Appreciation/Depreciation of
Investments 60,600,980
Realized Capital Gain 53,745,061
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Total Receipts $574,322,086
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DISBURSEMENTS
Benefit Payments $ 39,126,957
Funds Withdrawn 29,664,424
Investment Management, Mortality,
and Administration Charges 5,322,260
Investment Expenses 611,137
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Total Disbursements 74,724,778
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Increase in Reserves $499,597,308
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Principal Mutual Life Insurance Company, Des Moines, Iowa 50392-0001
<PAGE>
SCHEDULE A
(FORM 5500)
Department of the Treasury
Internal Revenue Service
-------------------
Department of Labor
Pension and Welfare Benefits Administration
-------------------
Pension Benefit Guaranty Corporation
INSURANCE INFORMATION
This schedule is required to be filed under section 104 of the
Employee Retirement Income Security Act of 1974.
- FILE AS AN ATTACHMENT OF FORM 5500 OR 5500-C/R.
- Insurance companies are required to provide this information
as per ERISA section 103(a)(2).
OMB No. 1210-0016
- --------------------------------------------------------------------------------
1996
- --------------------------------------------------------------------------------
THIS FORM IS
OPEN TO PUBLIC
INSPECTION
- --------------------------------------------------------------------------------
For calendar year 1996 or fiscal plan year beginning March 1, 1996, and
ending February 28, 1997.
- --------------------------------------------------------------------------------
- - PART I MUST BE COMPLETED FOR ALL PLANS REQUIRED TO FILE THIS SCHEDULE.
- - PART II MUST BE COMPLETED FOR ALL INSURED PENSION PLANS.
- - PART III MUST BE COMPLETED FOR ALL INSURED WELFARE PLANS.
- - ENTER MASTER TRUST OR 103-12 IE NAME IN PLACE OF "SPONSOR" AND SPECIFY
INVESTMENT ACCOUNT OR 103-12 IE IN PLACE OF "PLAN" IF FILING WITH DOL FOR A
MASTER TRUST OR 103-12 IE.
- --------------------------------------------------------------------------------
Name of plan sponsor as shown on line 1a of Form 5500 or 5500-C/R
ROCKY MOUNTAIN CHOCOLATE FACTORY, INC.
- --------------------------------------------------------------------------------
Employer identification number
84 0910696
- --------------------------------------------------------------------------------
Name of plan ROCKY MOUNTAIN CHOCOLATE
FACTORY, INC. 401(K) PLAN
- --------------------------------------------------------------------------------
Three-digit
plan number -
- --------------------------------------------------------------------------------
0 0 1
- --------------------------------------------------------------------------------
PART I SUMMARY OF ALL INSURANCE CONTRACTS INCLUDED IN PARTS II AND III
Group all contracts in the same manner as in Parts II and III.
- --------------------------------------------------------------------------------
1 Check appropriate box: a / / Welfare plan
b /X/ Pension Plan
c / / Combination pension and welfare plan
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
2 Coverage: (a) Name of insurance carrier (b) Contract (c) Approximate number Policy or contract year
or identification of persons covered at and -----------------------
number of policy or contract year (d) From (e) To
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
PRINCIPAL MUTUAL LIFE INSURANCE CO 4-12731 108 03/01/96 2/28/97
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
3 Insurance fees and commissions paid to agents and brokers: (d) Fees paid
(a) Contract or (b) Name and address of the agents or brokers to (c) Amount of ---------------------------------
Identification number whom commissions or fees were paid commissions paid Amount Purpose
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
4-12731 JOHNSON & HIGGINS OF COLORA 1,800 25 - PRORATED INCENTIVE
1225 17TH ST STE 2100 AMOUNT NOT CHARGED
DENVER CO 80202-5534 TO YOUR PLAN
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL 1,800 25
</TABLE>
- --------------------------------------------------------------------------------
4 Premiums due and unpaid at the end of the plan year - $
: Contract or identification number - 4-12731
- --------------------------------------------------------------------------------
PART II INSURED PENSION PLANS Provide information for each contract on a
separate Part II. Where individual contracts are provided, the
entire group of such individual contracts with each carrier may be
treated as a unit for purposes of this report.
- --------------------------------------------------------------------------------
- - Contract or identification number - 4-12731
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
5 Contracts with allocated funds, (for example, individual policies or group deferred annuity contracts):
a State the basis of premium rates -
--------------------------------------------------------------------------------------------
b Total premiums paid to carrier...................................................................................... 0
----------
c If the carrier, service, or other organization incurred any specific costs in connection with the acquisition
or retention of the contract or policy, other than reported in 3 above, enter amount................................
----------
Specify nature of costs -
- -----------------------------------------------------------------------------------------------------------------------------------
6 Contracts with unallocated funds, (for example, deposit administration or immediate participation guarantee
contracts). Do not include portions of these contracts maintained in separate accounts:
a Balance at the end of the previous policy year...................................................................... 24,956
----------
b Additions: (i) Contributions deposited during year....................................................... 11,594
----------
(ii) Dividends and credits.............................................................................. 0
----------
(iii) Interest credited during the year.................................................................. 2,026
----------
(iv) Transferred from separate account.................................................................. 0
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(v) Other (specify) - Rollover 5,019
--------------------------------------------------------------------------------- ----------
(vi) Total additions............................................................................................... 18,639
----------
c Total of balance and additions (and a and b(vi)).................................................................... 43,595
----------
d Deductions:
(i) Disbursed from fund to pay benefits or purchase annuities during year.............................. 5,567
----------
(ii) Administration charge made by carrier.............................................................. 11
----------
(iii) Transferred to separate account.................................................................... 19
----------
(iv) Other (specify) - Mkt Value Change 84
--------------------------------------------------------------------------------- ----------
(v) Total deductions.............................................................................................. 5,681
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e Balance at end of current policy year (subtract d(v) from c) 37,914
- -----------------------------------------------------------------------------------------------------------------------------------
7 Separate accounts: Current value of plan's interest in separate accounts at year end.................................. 167,963
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
FOR PAPERWORK REDUCTION ACT NOTICE, SEE PAGE 1 OF THE INSTRUCTIONS FOR
FORM 5500 OR 5500-C/R Cat. No. 135051 SCHEDULE A (FORM 5500) 1996
<PAGE>
GROUP CONTRACT 4-12731 SCHEDULE A (FORM 5500) SUPPLEMENT
PLAN NAME
ROCKY MOUNTAIN CHOCOLATE PLAN SPONSOR
FACTORY, INC. 401(K) PLAN EIN 84 0910696 PLAN NO. 001
CERTIFICATION
This Schedule A and supplement which is provided by Principal Mutual Life
Insurance Company, is certified to be complete and accurate according to the
best of our knowledge.
6-17-97 /s/ JULIE C. HUDSON
- ------------ ---------------------
DATE SIGNATURE
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C>
| OMB No. 1210-0016
SCHEDULE P | ANNUAL RETURN OF FIDUCIARY |----------------------
(FORM 5500) | OF EMPLOYEE BENEFIT TRUST | 1996
| |----------------------
Department of the Treasury | FILE AS AN ATTACHMENT TO FORM 5500, 5500-C/R, or 5500-EZ. | This Form is Open to
Internal Revenue Service | FOR THE PAPERWORK REDUCTION NOTICE, SEE PAGE 1 OF THE FORM 5500 INSTRUCTIONS. | Public Inspection
- ----------------------------------------------------------------------------------------------------------------------------------
For trust calendar year 1996 or fiscal year beginning March 1, 1996, and ending February 28, 1997.
- ----------------------------------------------------------------------------------------------------------------------------------
P | 1a Name of trustee or custodian
L | TRUSTEE OF ROCKY MOUNTAIN CHOCOLATE
E | FACTORY, INC. 401(K) PLAN
A |-----------------------------------------------------------------------------------------------------------------------------
S | b Number, street, and room or suite no. (if a P.O. box, see the instructions for Form 5500, 5500-C/R, or 5500-EZ.)
E |
| 265 TURNER DRIVE
T |-----------------------------------------------------------------------------------------------------------------------------
Y | c City or town, state, and ZIP code
P |
E | DURANGO, CO 81301-0000
|-----------------------------------------------------------------------------------------------------------------------------
O | 2a Name of trust b Trust's employer identification number
R | TRUST FOR ROCKY MOUNTAIN CHOCOLATE
| FACTORY, INC. 401(K) PLAN 42|0127290
P |-----------------------------------------------------------------------------------------------------------------------------
R | 3 Name of plan if different from name of trust
I | ROCKY MOUNTAIN CHOCOLATE
N | FACTORY, INC. 401(K) PLAN
T |
- ----------------------------------------------------------------------------------------------------------------------------------
4 Have you furnished the participating employee benefit plan(s) with the trust
financial information required to be reported by the plan(s)?................................................ /X/ Yes No / /
- ----------------------------------------------------------------------------------------------------------------------------------
5 Enter the plan sponsor's employer identification number as shown on |
Form 5500, 5500-C/R, or 5500-EZ........................................ | 84|0910696
- ----------------------------------------------------------------------------------------------------------------------------------
Under penalties of perjury, I declare that I have examined this schedule, and to the best of my knowledge and belief it is true,
correct, and complete.
SIGNATURE OF FIDUCIARY > DATE >
- ----------------------------------------------------------------------------------------------------------------------------------
INSTRUCTIONS
SECTION REFERENCES ARE TO THE INTERNAL REVENUE CODE.
PURPOSE OF FORM
You may use this schedule to satisfy the requirements under section 6033(a) for an annual information return from every section
401(a) organization exempt from tax under section 501(a).
Filing this form will start the running of the statute of limitations under section 6501(a) for any trust described in
section 401(a), which is exempt from tax under section 501(a).
WHO MAY FILE
1. Every trustee of a trust created as part of an employee benefit plan as described in section 401(a).
2. Every custodian of a custodial account described in section 401(f).
HOW TO FILE
File Schedule P (Form 5500) for the trust year ending with or within any participating plan's plan year. Attach it to the Form
5500, 5500-C/R, or 5500-EZ filed by the plan for that plan year. A separately filed Schedule P (Form 5500) will not be accepted.
If the trust or custodial account is used by more than one plan, file one Schedule P (Form 5500). If a plan uses more than
one trust or custodial account for its funds, file one Schedule P (Form 5500) for each trust or custodial account.
TRUST'S EMPLOYER IDENTIFICATION NUMBER
Enter the trust employer identification number (EIN) assigned to the employee benefit trust or custodial account, if one has
been issued to you. The trust EIN should be used for transactions conducted for the trust. If you do not have a trust EIN, enter
the EIN you would use on Form 1099-R to report distributions from employee benefit plans and on Form 945 to report withheld
amounts of income tax from those payments.
NOTE: TRUSTEES WHO DO NOT HAVE AN EIN MAY APPLY FOR ONE ON FORM SS-4, APPLICATION FOR EMPLOYER IDENTIFICATION NUMBER. YOU MUST
BE CONSISTENT AND USE THE SAME EIN FOR ALL TRUST REPORTING PURPOSES.
SIGNATURE
The fiduciary (trustee or custodian) must sign this schedule. If there is more than one fiduciary, the fiduciary authorized by
the others may sign.
OTHER RETURNS AND FORMS THAT MAY BE REQUIRED
- - FORM 990-T--For trusts described in section 401(a), a tax is imposed on income derived from business that is unrelated to the
purpose for which the trust received a tax exemption. Report this income and tax on FORM 990-T, Exempt Organization Business
Income Tax Return. (See sections 511 through 514 and the related regulations.)
- - FORM 1099-R--If you made payments or distributions to individual beneficiaries of a plan, report those payments on Form
1099-R. (See the instructions for Forms 1099, 1098, 5498, and W-2G.)
- - FORM 945--If you made payments or distributions to individual beneficiaries of a plan, you may be required to withhold income
tax from those payments. Use FORM 945, Annual Return of Withheld Federal Income Tax, to report taxes withheld from nonpayroll
items. (See CIRCULAR E, Employer's Tax Guide (Pub. 15), for more information.)
- ----------------------------------------------------------------------------------------------------------------------------------
D132 Cat. No. 13504X SCHEDULE P (FORM 5500) 1996
</TABLE>
