<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
FOR ANNUAL REPORTS OF EMPLOYEE STOCK PURCHASE, SAVINGS
FOR SIMILAR PLANS PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
(Mark one)
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 (FEE REQUIRED)
FOR THE FISCAL YEAR ENDED NOVEMBER 30, 1996
Or
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 (NO FEE REQUIRED)
FOR THE TRANSITION PERIOD FROM TO
--------- ---------
Commission file number 1-10157
L.A. GEAR, INC.
EMPLOYEE STOCK SAVINGS PLAN
(Full title of the plan; address is the same as
that of the issuer named below)
L.A. GEAR, INC.
2850 OCEAN PARK BOULEVARD,
SANTA MONICA, CALIFORNIA 90405
(Name of issuer of securities held pursuant to the plan
and the address of its principal executive office)
<PAGE>
L.A. GEAR, INC.
EMPLOYEE STOCK SAVINGS PLAN
INDEX TO FINANCIAL STATEMENTS AND SUPPLEMENTARY SCHEDULES
Page
----
Report of Independent Accountants. . . . . . . . . . . . . . . . . . . . . . F-1
FINANCIAL STATEMENTS
Statement of Assets Available for Plan Benefits -
November 30, 1996 and 1995 . . . . . . . . . . . . . . . . . . . . F-2
Statement of Changes in Assets Available for Plan Benefits -
Years ended November 30, 1996 and 1995 . . . . . . . . . . . . . . F-3
Notes to Financial Statements. . . . . . . . . . . . . . . . . . . . . . . . F-4
SUPPLEMENTARY SCHEDULES*
Item 27a-Form 5500:
Schedule of Assets Held for Investment Purposes
at November 30, 1996 . . . . . . . . . . . . . . . . . . . . . . .F-10
Item 27b-Form 5500:
Schedule of Loans or Fixed Income Obligations
at November 30, 1996 . . . . . . . . . . . . . . . . . . . . . . .F-11
Item 27d-Form 5500:
Schedule of Reportable Transactions for the Year ended
November 30, 1996. . . . . . . . . . . . . . . . . . . . . . . . .F-12
Exhibit
EXHIBIT No.
---
Consent of Price Waterhouse LLP. . . . . . . . . . . . . . . . . . . . . . . 23
* All other schedules required by the Department of Labor Rules and
Regulations for Reporting and Disclosure under the Employee Retirement
Income Security Act of 1974 and not included herein have been omitted
because they are not applicable.
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
401(k) Plan Committee of L.A. Gear, Inc. has duly caused this annual report to
be signed on its behalf by the undersigned hereunto duly authorized.
L.A. GEAR, INC. EMPLOYEE
STOCK SAVINGS PLAN
By: /s/ Victor J. Trippetti
-----------------------------
Victor J. Trippetti
Senior Vice President and
Chief Financial Officer
Member, 401(k) Plan Committee
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
May 22, 1997
To the Participants and Advisory Committee of the
L.A. Gear, Inc. Employee Stock Savings Plan
In our opinion, the accompanying Statement of Assets Available for Plan Benefits
and the related Statement of Changes in Assets Available for Plan Benefits
present fairly, in all material respects, the assets available for plan benefits
of the L.A. Gear, Inc. Employee Stock Savings Plan at November 30, 1996 and
1995, and the changes in 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 audits were performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The additional information included in
the supplementary schedules is presented for purposes of additional analysis and
is not a required part of the basic financial statements but is additional
information required by ERISA. Such information has been subjected to the
auditing procedures applied in the audits 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.
/s/ Price Waterhouse LLP
------------------------
Price Waterhouse LLP
Los Angeles, California
F-1
<PAGE>
L.A. GEAR, INC.
EMPLOYEE STOCK SAVINGS PLAN
STATEMENT OF ASSETS AVAILABLE FOR PLAN BENEFITS
NOVEMBER 30,
------------------------
1996 1995
---- ----
Investments at fair value:
Sweep Account $ 44,364 $ 36,598
Collective Funds:
Money Market Fund * 470,481 447,771
Asset Allocation Fund * 1,267,315 1,152,112
Bond Index Fund * 548,514 552,314
Growth Stock Fund * 1,655,285 1,352,832
S&P 500 Stock Fund * 1,266,894 1,000,828
Lifepath Funds 53,528
Common Stock:
L.A. Gear, Inc. Common Stock * 624,521 205,874
Other:
Participant Loans * 359,372 186,290
--------- ---------
Total investments 6,290,274 4,934,619
--------- ---------
Employer contributions receivable 8,532 297,558
Participant contributions receivable 23,328 32,212
Other receivables 5,982
--------- ---------
Total receivables 31,860 335,752
--------- ---------
Assets available for Plan benefits $6,322,134 $5,270,371
--------- ---------
--------- ---------
* Investment balance represents 5% or more of the Plan's assets available for
Plan benefits.
The accompanying notes are an integral part of the financial statements.
F-2
<PAGE>
L.A. GEAR, INC.
EMPLOYEE STOCK SAVINGS PLAN
STATEMENT OF CHANGES IN ASSETS AVAILABLE FOR PLAN BENEFITS
Year Ended
November 30,
----------------------
1996 1995
---- ----
Additions to assets attributed to:
Contributions:
Participants $1,004,104 $1,243,803
Employer 323,813 297,558
Rollovers 1,187 23,996
--------- ---------
1,329,104 1,565,357
--------- ---------
Investment income:
Net appreciation in fair
value of investments 719,941 525,635
Interest and dividend income 48,872 46,408
--------- ---------
768,813 572,043
--------- ---------
Increase in other receivables 5,982
--------- ---------
Total sources of assets 2,097,917 2,143,382
--------- ---------
Deductions from assets attributed to:
Benefits and expenses:
Benefits paid to participants 1,036,509 1,629,927
Administrative expenses 3,663 3,793
--------- ---------
1,040,172 1,633,720
Decrease in other receivables 5,982
--------- ---------
Total application of assets 1,046,154 1,633,720
--------- ---------
Increase in assets available for Plan benefits 1,051,763 509,662
Assets available for Plan benefits:
Beginning of year 5,270,371 4,760,709
--------- ---------
End of year $6,322,134 $5,270,371
--------- ---------
--------- ---------
The accompanying notes are an integral part of the financial statements.
F-3
<PAGE>
L.A. GEAR, INC.
EMPLOYEE STOCK SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
NOTE 1 - GENERAL DESCRIPTION OF THE PLAN:
The L.A. Gear, Inc. Employee Stock Savings Plan (the Plan) became effective
December 1, 1985 and was amended and restated effective August 1, 1993 to
conform to current law. The Plan is subject to the provisions of the Employee
Retirement Income Security Act of 1974 (ERISA).
The Plan is a defined contribution plan sponsored by L.A. Gear, Inc. (the
Company) and also functions as an employee stock savings plan under Section
4975(e) of the Internal Revenue Code (the Code). The Plan covers all qualified
employees, as defined by the Plan, provided they have completed at least thirty
days of service, have worked at least 83 hours during that period and are 21
years of age or older. Plan participants should refer to the Plan agreement for
more complete information.
ADMINISTRATIVE FEES
Substantially all costs and expenses of administering the Plan are paid by the
Company.
CONTRIBUTIONS
Participants in the Plan may contribute, on a tax-deferred basis, from 1% to 17%
of their compensation, up to a maximum annual contribution as defined by the
Plan. Participants may also elect to make after-tax contributions to the Plan
in an amount which does not exceed 10% of the limits as prescribed by the Plan.
Total annual additions to a participant's account may not exceed the lesser of
$30,000 or 25% of the participant's taxable compensation. Participants may
change their deferral percentage and/or after-tax contribution election as of
any date but only once in any three-month period. The Company matches 50% of
participant contributions up to 6% of their annual compensation. All Company
matching contributions are made in cash. Effective December 1, 1995, 50% of the
Company's matching contributions were invested in L.A. Gear, Inc. common stock
with the remaining contributions invested in accordance with participant
elections. Prior to December 1, 1995, all Company matching contributions were
invested in L.A. Gear, Inc. common stock.
Participants are 100% vested in their deferred compensation and rollover
contribution accounts and become vested in Company contributions as follows:
20% vested after one year of service under the Plan, 40% vested after two years,
60% vested after three years, 80% vested after four years and 100% vested after
five years or upon death, disability or attainment of age 65. Any amount
forfeited by an employee terminating the Plan before he/she is fully vested
remains in the Plan and is applied toward the funding of employer contributions
in future Plan years. There were approximately $44,400 and $36,900 in
forfeitures at November 30, 1996 and 1995, respectively, which will be or were
utilized to reduce Company contributions.
F-4
<PAGE>
NOTE 1: (Continued)
PARTICIPANT ACCOUNT BALANCES
Separate accounts are maintained for each participant's deferred compensation,
rollover and Company contribution balances. Earnings of the Plan are allocated
to the participant accounts according to the ratio that a participant's account
balance within a fund bears to the total of all participant account balances
within that fund.
BENEFITS
Upon normal retirement at age 65, early retirement at age 55 (with 10 years of
service), disability, termination of employment, death or certain hardship
cases, participants or their beneficiaries are entitled to receive their vested
balances in either a lump sum distribution or in installments.
PARTICIPANT LOANS
Under the terms of the Plan, participants may borrow from their accounts a
minimum of $500 up to a maximum of $50,000 or 50% of their vested account
balance. The loans are secured by the balance in the participants' accounts and
bear interest at a rate commensurate with local market rates for similar loans.
PLAN TERMINATION
Although the Company has not expressed any intent to terminate the Plan, the
Company has the right to do so at any time. Upon Plan termination, participants
automatically become 100% vested in Company contributions.
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
BASIS OF PRESENTATION
The accompanying financial statements were prepared on the accrual basis of
accounting.
USE OF ESTIMATES
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
INVESTMENTS
As of November 30, 1996, the Plan participated in ten collective trust funds
managed by BZW Barclays Global Investors (the Trustee).
The investment in each investment fund is maintained in shares. The Trustee
determines the share values of each investment fund as of each trade date. To
the extent an investment fund is composed of collective investment
F-5
<PAGE>
NOTE 2: (Continued)
funds of the Trustee, the net asset and share values are determined
in accordance with the rules governing the collective investment funds. The net
asset value of each investment fund is based on the fair market value of its
underlying assets.
The investment in L.A. Gear, Inc. common stock is stated at fair market value as
determined by the closing price on the New York Stock Exchange on the valuation
date. The net change in the fair value of investments including realized and
unrealized gains and losses is reflected in the accompanying Statement of
Changes in Assets Available for Plan Benefits with Fund Information in Note 3.
Participant loans are composed of loans with interest rates ranging from 8% to
11% per annum with related terms ranging from 6 months to 10 years.
RECLASSIFICATIONS
Certain reclassifications have been made to 1995 amounts in order to conform to
the 1996 presentation.
NOTE 3 - INVESTMENTS:
Participants direct the investment of their contributions into L.A. Gear common
stock and ten funds administered by BZW Barclays Global Investors. All
contributions are temporarily deposited in a sweep account prior to allocating
the funds into the following investments:
MONEY MARKET FUND - This fund invests in a variety of money market instruments
including U.S. Government and agency obligations, bank obligations and
short-term corporate debt instruments.
ASSET ALLOCATION FUND - This fund attempts to earn a high level of total
investment return by allocating its investments among three asset classes -
common stocks, U.S. Treasury bonds and money market instruments.
BOND INDEX FUND - This fund seeks the total rate of return of the U.S. market
for issued and outstanding high-grade corporate and U.S. Government bonds.
GROWTH STOCK FUND - This fund seeks above-average capital appreciation by
investing primarily in growth-oriented common stocks.
S&P 500 STOCK FUND - This fund invests its assets primarily in the same stocks
and in substantially the same percentages as the S&P 500 Composite Price Index.
LIFEPATH FUNDS - These funds consists of five separate funds, each of which
invests in a combination of equity and debt securities and money market
investments appropriate for the fund's investment time horizon.
L.A. GEAR, INC. COMMON STOCK - All L.A. Gear, Inc. common stock is valued based
upon the closing price on the New York Stock Exchange as of the respective
reporting date.
Activity in each investment alternative for 1996 and 1995 is summarized in the
schedules on pages F-7 and F-8, respectively.
F-6
<PAGE>
L.A. GEAR, INC. EMPLOYEE STOCK SAVINGS PLAN
STATEMENT OF CHANGES IN ASSETS
AVAILABLE FOR PLAN BENEFITS WITH FUND INFORMATION
FOR THE YEAR ENDED NOVEMBER 30, 1996
<TABLE>
<CAPTION>
PARTICIPANT DIRECTED
-----------------------------------------------------------------------------------
Money Asset Bond Growth S&P 500
Market Allocation Index Stock Stock Lifepath
Additions to assets attributed to: Fund Fund Fund Fund Fund Funds
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Contributions:
Participants $138,503 $ 212,303 $ 92,776 $ 297,302 $ 203,392 $ 12,878
Employer 22,285 36,769 18,330 49,224 37,150 2,549
Rollovers 297 297 593
-------- ---------- -------- ---------- ---------- --------
160,788 249,369 111,106 346,823 241,135 15,427
-------- ---------- -------- ---------- ---------- --------
Investment income:
Net appreciation
in fair value of investments 184,679 27,468 200,561 273,008 4,346
Interest and dividend income 22,784
-------- ---------- -------- ---------- ---------- --------
22,784 184,679 27,468 200,561 273,008 4,346
-------- ---------- -------- ---------- ---------- --------
Net transfers in 5,471 34,431
-------- ---------- -------- ---------- ---------- --------
Total sources of assets 183,572 434,048 138,574 552,855 514,143 54,204
-------- ---------- -------- ---------- ---------- --------
Deductions from assets attributed to:
Benefits paid to participants 118,728 254,842 88,811 249,782 212,556 665
Administrative expenses 441 700 428 620 695 11
-------- ---------- -------- ---------- ---------- --------
119,169 255,542 89,239 250,402 213,251 676
-------- ---------- -------- ---------- ---------- --------
Decrease in other receivables
-------- ---------- -------- ---------- ---------- --------
Net transfers out 41,693 63,303 53,135 34,826
-------- ---------- -------- ---------- ---------- --------
Total application of assets 160,862 318,845 142,374 250,402 248,077 676
-------- ---------- -------- ---------- ---------- --------
Net increase (decrease) 22,710 115,203 (3,800) 302,453 266,066 53,528
Assets available for benefits:
Balance, beginning of year 447,771 1,152,112 552,314 1,352,832 1,000,828
-------- ---------- -------- ---------- ---------- --------
Balance, end of year $470,481 $1,267,315 $548,514 $1,655,285 $1,266,894 $53,528
-------- ---------- -------- ---------- ---------- --------
-------- ---------- -------- ---------- ---------- --------
<CAPTION>
NON-PARTICIPANT DIRECTED
------------------------------------------
L. A. Gear, Inc.
Common Participant Sweep
Additions to assets attributed to: Stock Loans Account Other Total
----- ----- ------- ----- -----
<S> <C> <C> <C> <C> <C>
Contributions:
Participants $ 20,875 $ (3,498) $ 6,245 $23,328 $1,004,104
Employer 197,371 (48,397) 8,532 323,813
Rollovers 1,187
-------- -------- ------- ------- ----------
218,246 (3,498) (42,152) 31,860 1,329,104
-------- -------- ------- ------- ----------
Investment income:
Net appreciation
in fair value of investments 29,879 719,941
Interest and dividend income 24,572 1,516 48,872
-------- -------- ------- ------- ----------
29,879 24,572 1,516 768,813
-------- -------- ------- ------- ----------
Net transfers in 253,750 176,670 52,405 522,727
-------- -------- ------- ------- ----------
Total sources of assets 501,875 197,744 11,769 31,860 2,620,644
-------- -------- ------- ------- ----------
Deductions from assets attributed to:
Benefits paid to participants 83,228 24,662 3,235 1,036,509
Administrative expenses 768 3,663
-------- -------- ------- ------- ----------
83,228 24,662 4,003 1,040,172
-------- -------- ------- ------- ----------
Decrease in other receivables 5,982 5,982
-------- -------- ------- ------- ----------
Net transfers out 329,770 522,727
-------- -------- ------- ------- ----------
Total application of assets 83,228 24,662 4,003 335,752 1,568,881
-------- -------- ------- ------- ----------
Net increase (decrease) 418,647 173,082 7,766 (303,892) 1,051,763
Assets available for benefits:
Balance, beginning of year 205,874 186,290 36,598 335,752 5,270,371
-------- -------- ------- ------- ----------
Balance, end of year $624,521 $359,372 $44,364 $31,860 $6,322,134
-------- -------- ------- ------- ----------
-------- -------- ------- ------- ----------
</TABLE>
F-7
<PAGE>
L.A. GEAR, INC. EMPLOYEE STOCK SAVINGS PLAN
STATEMENT OF CHANGES IN ASSETS
AVAILABLE FOR PLAN BENEFITS WITH FUND INFORMATION
FOR THE YEAR ENDED NOVEMBER 30, 1995
<TABLE>
<CAPTION>
Participant Directed
-----------------------------------------------------------------------------------
Money Asset Bond Growth S&P 500
Market Allocation Index Stock Stock Lifepath
Additions to assets attributed to: Fund Fund Fund Fund Fund Funds
---- ---- ---- ---- ---- -----
<S> <C> <C> <C> <C> <C> <C>
Contributions:
Participants $170,366 $ 313,577 $142,962 $ 341,108 $ 237,327 $
Employer
Rollovers 7,491 1,770 4,263 4,613 5,859
-------- ---------- -------- ---------- ---------- --------
177,857 315,347 147,225 345,721 243,186
-------- ---------- -------- ---------- ---------- --------
Investment income:
Net appreciation (depreciation)
in fair value of investments 291,618 88,502 430,170 282,259
Interest and dividend income 26,177
-------- ---------- -------- ---------- ---------- --------
26,177 291,618 88,502 430,170 282,259
-------- ---------- -------- ---------- ---------- --------
Increase in other receivables
-------- ---------- -------- ---------- ---------- --------
Net transfers in 3,611 47,453 16,827
-------- ---------- -------- ---------- ---------- --------
Total sources of assets 207,645 606,965 235,727 823,344 542,272
-------- ---------- -------- ---------- ---------- --------
Deductions from assets attributed to:
Benefits paid to participants 180,294 398,454 153,201 392,765 298,448
Administrative expenses 485 722 468 619 556
-------- ---------- -------- ---------- ---------- --------
180,779 399,176 153,669 393,384 299,004
Net transfers out 49,422 30,965
-------- ---------- -------- ---------- ---------- --------
Total application of assets 180,779 448,598 184,634 393,384 299,004
-------- ---------- -------- ---------- ---------- --------
Net increase (decrease) 26,866 158,367 51,093 429,960 243,268
Assets available for benefits:
Balance, beginning of year 420,905 993,745 501,221 922,872 757,560
-------- ---------- -------- ---------- ---------- --------
Balance, end of year $447,771 $1,152,112 $552,314 $1,352,832 $1,000,828 $
-------- ---------- -------- ---------- ---------- --------
-------- ---------- -------- ---------- ---------- --------
<CAPTION>
Non-Participant Directed
-------------------------------------------
L. A. Gear, Inc.
Common Participant Sweep
Additions to assets attributed to: Stock Loans Account Other Total
----- ----- ------- ----- -----
<S> <C> <C> <C> <C> <C>
Contributions:
Participants $ 8,451 $ $ (2,200) $ 32,212 $1,243,803
Employer 52,578 (52,578) 297,558 297,558
Rollovers 23,996
--------- -------- -------- -------- ----------
61,029 (54,778) 329,770 1,565,357
--------- -------- -------- -------- ----------
Investment income:
Net appreciation (depreciation)
in fair value of investments (566,914) 525,635
Interest and dividend income 18,739 1,492 46,408
--------- -------- -------- -------- ----------
(566,914) 18,739 1,492 572,043
--------- -------- -------- -------- ----------
Increase in other receivables 5,982 5,982
--------- -------- -------- -------- ----------
Net transfers in 9,059 45,842 122,792
--------- -------- -------- -------- ----------
Total sources of assets (505,885) 27,798 (7,444) 335,752 2,266,174
--------- -------- -------- -------- ----------
Deductions from assets attributed to:
Benefits paid to participants 130,880 72,670 3,215 1,629,927
Administrative expenses 943 3,793
--------- -------- -------- -------- ----------
130,880 72,670 4,158 1,633,720
Net transfers out 42,405 122,792
--------- -------- -------- -------- ----------
Total application of assets 173,285 72,670 4,158 1,756,512
--------- -------- -------- -------- ----------
Net increase (decrease) (679,170) (44,872) (11,602) 335,752 509,662
Assets available for benefits:
Balance, beginning of year 885,044 231,162 48,200 4,760,709
--------- -------- -------- -------- ----------
Balance, end of year $ 205,874 $186,290 $ 36,598 $335,752 $5,270,371
--------- -------- -------- -------- ----------
--------- -------- -------- -------- ----------
</TABLE>
F-8
<PAGE>
NOTE 4 - FEDERAL INCOME TAXES:
The Internal Revenue Service determined in a letter dated March 26, 1996 that
the Plan constitutes a qualified Plan under Sections 401(a), 401(k) and 4975(e)
of the Internal Revenue Code and that the trust is exempt from income taxes
under Section 501(a) of the Code.
The Plan determined that the Company made employer matching contributions to
certain participants ineligible for such contributions during the Plan year
ended November 30, 1995. The over-contributions in the amount of $5,982 were
recorded as other receivables at November 30, 1995, and were subsequently
determined to be uncollectible. Accordingly, the other receivables were written
off during fiscal 1996.
NOTE 5 - PARTIAL PLAN TERMINATION:
In November 1996, the Company announced a plan to terminate approximately 52% of
its domestic workforce. Due to the significant number of employees terminated
and their respective participation in the Plan, the Company has treated the
event as a partial plan termination. As a result, the Company has voluntarily
accelerated the vesting of the terminated employees, increasing their vesting
percentage in Company contributions to 100% as of November 30, 1996.
NOTE 6 - SUBSEQUENT EVENTS:
The fair market value of the November 30, 1996 Plan investment in Company common
stock decreased by $156,131 during the period from December 1, 1996 to May 22,
1997.
F-9
<PAGE>
<TABLE>
<CAPTION>
L.A. GEAR, INC.
EMPLOYEE STOCK SAVINGS PLAN
ITEM 27a-FORM 5500:
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
NOVEMBER 30, 1996
Identity of Description of Shares, units Cost of Current
issue investment principal amount asset value
----- ---------- ---------------- ----- -----
<S> <C> <C> <C> <C>
Sweep Account -- $ 44,364 $ 44,364
Collective Funds:
BZW Barclays Global Investors * Money Market Fund 470,481 470,481 470,481
BZW Barclays Global Investors * Asset Allocation Fund 57,423 938,569 1,267,315
BZW Barclays Global Investors * Bond Index Fund 36,962 473,282 548,514
BZW Barclays Global Investors * Growth Stock Fund 81,904 1,170,587 1,655,285
BZW Barclays Global Investors * S & P 500 Stock Fund 44,862 819,104 1,266,894
BZW Barclays Global Investors * Lifepath Fund 2000 2,379 27,513 28,902
BZW Barclays Global Investors * Lifepath Fund 2010 467 5,792 6,205
BZW Barclays Global Investors * Lifepath Fund 2020 121 1,546 1,711
BZW Barclays Global Investors * Lifepath Fund 2030 8 108 117
BZW Barclays Global Investors * Lifepath Fund 2040 1,074 14,231 16,593
Common Stock:
L.A. Gear, Inc. * Common Stock 312,260 1,119,564 624,521
Participant Loans Due 1/5/96-
11/5/06; 8%-11% 359,372 359,372
--------- ---------
Total investments held $5,444,513 $6,290,274
--------- ---------
--------- ---------
</TABLE>
* Party-in-interest.
F-10
<PAGE>
L.A. GEAR, INC.
EMPLOYEE STOCK SAVINGS PLAN
ITEM 27b-FORM 5500
SCHEDULE OF LOANS OR FIXED INCOME OBLIGATIONS
NOVEMBER 30, 1996
<TABLE>
<CAPTION>
Original Amount received Unpaid
amount during reporting year balance at
Names and address of loan --------------------- end of year
----------------- ------- Principal Interest -----------
--------- --------
<S> <C> <C> <C> <C>
Lori Schultze * $ 968 $ 160 $ 2 $ 8
12150 Ramona Ave. #3-127
Chino, CA 91710
Jackie Pious-Gaines * $ 950 $ 128 $ 17 $ 536
3804 Wisconsin St. Apt. A
Los Angeles, CA 90037
Valerie McClure-Williams * $ 500 $ 48 $ 30 $ 326
727 38th St. Unit #20
San Pedro, CA 90731
Valerie McClure-Williams * $ 654 $ 155 $ 56 $ 502
727 38th St. Unit #20
San Pedro, CA 90731
<CAPTION>
Detailed description of loan including dates of
making and maturity, interest rate, the type and value
of collateral, any renegotiation of the loan and the Amount over due
Names and address terms of the renegotiations and other material items -----------------------
----------------- ---------------------------------------------------- Principal Interest
--------- --------
<S> <C> <C> <C>
Lori Schultze * Loan date: 1/10/94; Maturity date: 1/5/96; $ 8
12150 Ramona Ave. #3-127 Interest rate: 8%; Collateral - Vested balance
Chino, CA 91710
Jackie Pious-Gaines * Loan date: 2/17/94; Maturity date: 2/14/97 $ 391 $ 42
3804 Wisconsin St. Apt. A Interest rate: 11%; Collateral - Vested balance
Los Angeles, CA 90037
Valerie McClure-Williams * Loan date: 5/3/94; Maturity date: 4/24/99 $ 54 $ 2
727 38th St. Unit #20 Interest rate: 8.75%; Collateral - Vested balance
San Pedro, CA 90731
Valerie McClure-Williams * Loan date: 1/8/96; Maturity date: 7/4/97 $ 220 $ 3
727 38th St. Unit #20 Interest rate: 10.5%; Collateral - Vested balance
San Pedro, CA 90731
</TABLE>
* Overdue amounts were deducted from participant's account subsequent to the
Plan year end.
F-11
<PAGE>
L.A. GEAR, INC.
EMPLOYEE STOCK SAVINGS PLAN
ITEM 27d-FORM 5500 - SCHEDULE OF REPORTABLE TRANSACTIONS *
YEAR ENDED NOVEMBER 30, 1996
<TABLE>
<CAPTION>
Number
Party Description of Purchase Selling
involved of asset transactions price price
-------- -------- ------------ ----- -----
BZW Barclays Global Investors ** Money Market Fund 52 $171,844 --
BZW Barclays Global Investors ** Money Market Fund 72 -- $171,212
BZW Barclays Global Investors ** Asset Allocation Fund 65 257,618 --
BZW Barclays Global Investors ** Asset Allocation Fund 76 -- 327,095
BZW Barclays Global Investors ** Bond Index 50 118,060 --
BZW Barclays Global Investors ** Bond Index 72 -- 149,327
BZW Barclays Global Investors ** Growth Stock Fund 70 394,471 --
BZW Barclays Global Investors ** Growth Stock Fund 75 -- 292,580
BZW Barclays Global Investors ** S & P 500 Stock Fund 68 265,317 --
BZW Barclays Global Investors ** S & P 500 Stock Fund 77 -- 272,259
L.A. Gear, Inc. ** Common Stock 50 531,010 --
L.A. Gear, Inc. ** Common Stock 61 -- 142,242
<CAPTION>
Current Value Net
Party Lease Expense Cost of of asset on gain
involved rental incurred asset transaction date or (loss)
-------- ------ -------- ----- ---------------- ---------
<S> <C> <C> <C> <C> <C>
BZW Barclays Global Investors ** -- -- -- $171,844 --
BZW Barclays Global Investors ** -- -- $171,212 171,212 --
BZW Barclays Global Investors ** -- -- -- 257,618 --
BZW Barclays Global Investors ** -- -- 263,783 327,095 $63,312
BZW Barclays Global Investors ** -- -- -- 118,060 --
BZW Barclays Global Investors ** -- -- 132,762 149,327 16,565
BZW Barclays Global Investors ** -- -- -- 394,471 --
BZW Barclays Global Investors ** -- -- 215,856 292,580 76,724
BZW Barclays Global Investors ** -- -- -- 265,317 --
BZW Barclays Global Investors ** -- -- 196,308 272,259 75,951
L.A. Gear, Inc. ** -- -- -- 531,010 --
L.A. Gear, Inc. ** -- -- 277,688 142,242 (135,446)
* Transactions or series of transactions in excess of 5% of the current value of the Plan's assets as of December 1, 1995 as
defined in Section 2520.103-6 of the Department of Labor Rules and Regulations for Reporting and Disclosure under ERISA.
** Party-in-interest.
F-12
</TABLE>
<PAGE>
Exhibit 23
CONSENT OF INDEPENDENT ACCOUNTANTS
We hereby consent to the incorporation by reference in the Registration
Statement on Form S-8 (No. 33-64287) of L.A. Gear, Inc. of our report dated May
22, 1997 appearing on page F-1 of this Form 11-K.
/s/ Price Waterhouse LLP
- ------------------------
Price Waterhouse LLP
Los Angeles, California
May 22, 1997
