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 (FEE REQUIRED)
For the fiscal year ended December 31, 1997
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 333-34569
A. Full title of the plan and the address of the plan, if different
from that of the issuer named below:
Collins & Aikman Products Co.
(formerly Collins & Aikman Corporation)
Employees' Profit Sharing and Personal Savings Plan
701 McCullough Drive
Charlotte, North Carolina 28262
B. Name of issuer of the securities held pursuant to the plan and
the address of its principal executive offices:
Collins & Aikman Corporation
701 McCullough Drive
Charlotte, North Carolina 28262
704-547-8500
<PAGE>
REQUIRED INFORMATION
The following financial statements for the Collins and Aikman Products Co.
(formerly Collins & Aikman Corporation) Employees' Profit Sharing and Personal
Savings Plan are being filed herewith:
Description Page No.
- ----------- --------
Report of Independent Accountants F-2
Statement of Net Assets Available for Benefits with Fund
Information as of December 31, 1997 F-3
Statement of Net Assets Available for Benefits with Fund
Information as of December 31, 1996 F-4
Statement of Changes in Net Assets Available for Benefits
with Fund Information for the Year Ended December 31, 1997 F-5
Notes to Financial Statements F-6
- --------------------------------------------------------------------------------
The following exhibit is being filed herewith:
Exhibit No. Description
- -------------- ------------------------------------------------
1 Consent of Independent Public Accountants
2
<PAGE>
SIGNATURES
The Plan - Pursuant to the requirements of the Securities Exchange Act of 1934,
the trustees (or other persons who administer the employee benefit plan) have
duly caused this annual report to be signed on its behalf by the undersigned
hereunto duly authorized.
Collins & Aikman Products Co.
(formerly Collins & Aikman Corporation)
Employees' Profit Sharing and Personal Savings Plan
June 29, 1998 By: /s/ J. Michael Stepp
______________________________
J. Michael Stepp
Chairman
Collins & Aikman Products Co.
Benefit Plan Administration Committee
3
<PAGE>
COLLINS & AIKMAN PRODUCTS CO.
(FORMERLY COLLINS & AIKMAN CORPORATION)
EMPLOYEES' PROFIT SHARING AND PERSONAL SAVINGS PLAN
INDEX TO FINANCIAL STATEMENTS AND SCHEDULES
DECEMBER 31, 1997 AND 1996
Report of Independent Public Accountants
Statement of Net Assets Available for Benefits with Fund Information as of
December 31, 1997
Statement of Net Assets Available for Benefits with Fund Information as of
December 31, 1996
Statement of Changes in Net Assets Available for Benefits with Fund Information
for the Year Ended December 31, 1997
Notes to Financial Statements
Schedule I - Item 27-a Schedule of Assets Held for Investment as of
December 31, 1997
Schedule II - Item 27-d Schedule of Reportable Transactions for the Year
Ended December 31, 1997
<PAGE>
Report of Independent Public Accountants
To the Benefits Committee of
Collins & Aikman Products Co.
(formerly Collins & Aikman Corporation)
Employees' Profit Sharing and Personal Savings Plan:
We have audited the accompanying statements of net assets available for benefits
with fund information, including the schedule of investments, of the Collins &
Aikman Products Co. (formerly Collins & Aikman Corporation) Employees' Profit
Sharing and Personal Savings Plan (the Plan) as of December 31, 1997 and 1996
and the related statement of changes in net assets available for benefits with
fund information for the year ended December 31, 1997. These financial
statements are the responsibility of the Plan's mnagement. Our responsibility is
to express an opinion on these financial tatements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audits to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for benefits of the Plan as of
December 31, 1997 and 1996, and the changes in net assets available for benefits
for the year ended December 31, 1997, in conformity with generally accepted
accounting principles.
Our audits were performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules listed in the
accompanying index to financial statements and schedules are presented for the
purpose of additional analysis and are not a required part of the basic
financial statements, but are supplementary information required by the
Department of Labor Rules and Regulations for Reporting and Disclosure under the
Employee Retirement Income Security Act of 1974. The Fund Information in the
statements of net assets available for benefits and the statement of changes in
net assets available for benefits is presented for purposes of additional
analysis rather than to present the net assets available for plan benefits and
changes in net assets available for plan benefits of each fund. The supplemental
schedules and Fund Information have been subjected to the auditing procedures
applied in the audits of the basic financial statements and, in our opinion, are
fairly stated in all material respects in relation to the basic financial
statements taken as a whole.
Charlotte, North Carolina ARTHUR ANDERSEN LLP
June 29, 1998
F-2
<PAGE>
<TABLE>
COLLINS & AIKMAN PRODUCTS CO.
(FORMERLY COLLINS & AIKMAN CORPORATION)
EMPLOYEES' PROFIT SHARING AND PERSONAL SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION
AS OF DECEMBER 31, 1997
<CAPTION>
<S> <C>
Participant Directed
--------------------------------------------------------------------------------------
Small
Guaranteed Balanced Equity International Capitalization Company
Fund Fund Fund Equity Fund Fund Stock Fund
------------ ------------ ----------- ------------- -------------- ----------
Investments:
Participation in collective investment $ 33,022,420 $ 14,448,932 $ - $ - $ - $ -
funds
Participation in mutual funds - 994,336 42,313,848 2,203,642 2,455,438 10,541
Common stock - - - - - 234,695
Loans receivable - participants (Note 3) - - - - - -
------------ ------------ ----------- ------------- -------------- -----------
Total investments 33,022,420 15,443,268 42,313,848 2,203,642 2,455,438 245,236
Employer contribution receivable - - - - - -
Employee contribution receivable - - - - - -
Due from (to) other funds (30,145) 41,035 17,925 (39,873) 8,842 2,216
Transfer in process from prior trustee - - - - - -
(Note 5)
Accrued interest receivable 151,243 7,489 71 21,228 9 112
Accrued loan repayments - - - - - -
Due to broker for securities purchased - - (122,855) - (20,809) -
Accrued administrative expenses - - - - - -
------------ ------------ ----------- ------------- -------------- ------------
Net assets available for benefits $ 33,143,518 $ 15,491,792 $42,208,989 $ 2,184,997 $ 2,443,480 $ 247,564
============ ============ =========== ============= ============== ============
</TABLE>
<TABLE>
<CAPTION>
<S> <C>
Non-
Participant Participant
Directed Directed
----------- ------------
Unallocated
Loan Fund Funds Total
----------- ----------- ------------
Investments:
Participation in collective investment $ - $ 86,766 $ 47,558,118
funds
Participation in mutual funds - - 47,977,805
Common stock - - 234,695
Loans receivable - participants (Note 3) 1,139,246 - 1,139,246
----------- ----------- ------------
Total investments 1,139,246 86,766 96,909,864
Employer contribution receivable - 2,638,698 2,638,698
Employee contribution receivable - 55,384 55,384
Due from (to) other funds - - -
Transfer in ???????? from prior
transfer (Note 5) 22,118,730 22,108,790
Accrued interest receivable - 474 180,626
Accrued loan repayments (30,773) - (30,773)
Due to broker for securities purchased - - (143,664)
Accrued administrative expenses - (13,750) (13,750)
----------- ----------- ------------
Net assets available for benefits $1,108,473 $24,886,362 $121,715,175
=========== =========== ============
</TABLE>
The accompanying notes to financial statements
are an integral part of these financial statements.
F-3
<PAGE>
<TABLE>
COLLINS & AIKMAN PRODUCTS CO.
(FORMERLY COLLINS & AIKMAN CORPORATION)
EMPLOYEES' PROFIT SHARING AND PERSONAL SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION
AS OF DECEMBER 31, 1996
<CAPTION>
<S> <C>
Participant Directed
------------------------------------------------------------------------------------
Small
Guaranteed Balanced Equity International Capitalization
Fund Fund Fund Equity Fund Fund Loan Fund
------------ ------------ ----------- ------------- -------------- -----------
Investments:
Participation in collective investment
funds $ 42,183,724 $ 11,942,200 $ - $ - $ - $ -
Participation in mutual funds - 697,891 43,640,037 1,118,419 1,587,037 -
Loans receivable - participants (Note 3) - - - - - 743,789
------------ ------------ ----------- ------------- -------------- -----------
Total investments 42,183,724 19,640,097 43,640,037 1,118,419 1,587,037 743,789
Employer contribution receivable - - - - - -
Employee contribution receivable - - - - - -
Due from (to) other funds 76,665 91,561 (127,828) 4,099 (44,497) -
Accrued interest receivable 191,042 10,583 37,945 (3,490) 31,242 -
Accrued loan repayments - - - - - (71,175)
Accrued administrative expenses - - - - - -
------------ ------------ ----------- ------------- -------------- -----------
Net assets available for benefits $ 42,451,431 $ 19,742,241 $ 43,550,154 $ 1,119,028 $ 1,573,782 $ 672,614
============ ============ ============ ============== ============== ===========
</TABLE>
<TABLE>
<CAPTION>
<S> <C>
Non-
Participant
Directed
------------
Unallocated
Funds Total
----------- ------------
Investments:
Participation in collective investment
funds $ - $ 61,125,930
Participation in mutual funds - 47,043,384
Loans receivable - participants (Note 3) - 743,789
----------- ------------
Total investments - 108,913,103
Employer contribution receivable 3,935,530 3,935,530
Employee contribution receivable 53,348 53,348
Due from (to) other funds - -
Accrued interest receivable - 267,322
Accrued loan repayments - (71,175)
Accrued administrative expenses (333,100) (733,200)
----------- ------------
Net assets available for benefits $ 3,655,778 $112,765,028
=========== ============
</TABLE>
The accompanying notes to financial statements
are an integral part of these financial statements.
F-4
<PAGE>
<TABLE>
COLLINS & AIKMAN PRODUCTS CO.
(FORMERLY COLLINS & AIKMAN CORPORATION)
EMPLOYEES' PROFIT SHARING AND PERSONAL SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION
FOR THE YEAR ENDED DECEMBER 31, 1997
<CAPTION>
<S> <C>
Participant Directed
--------------------------------------------------------------------------------
Guaranteed Balanced International Small
Fund Fund Equity Fund Equity Fund Capitalization
------------ ------------ ------------- ------------- --------------
Investment income $ 2,073,206 $ 136,103 $ 2,179,090 $ 67,133 $ 253,703
Net realized and unrealized appreciation - 3,538,600 10,115,905 115,131 (135,336)
Employer contribution (Note 3) 2,253,186 671,861 1,413,946 103,938 106,760
Employee contribution (Note 3) 2,058,285 1,235,463 2,572,924 293,497 453,178
Rollover contribution 58,205 21,047 60,062 18,152 30,868
Loans to participants (156,239) (148,545) (420,196) (20,696) (39,500)
Loan repayments 100,555 75,915 193,737 20,544 17,740
Benefits paid directly to participants (6,266,235) (1,695,935) (4,176,545) (123,970) (173,930)
Administrative expenses (355,383) (224,323) (177,901) (6,148) (6,284)
Transfer of participants' balances 3,715,115 (1,019,400) 310,415 967,164 614,846
Transfer from (to) other trustees (Note 5) (12,788,608) (6,841,235) (13,412,602) (368,776) (252,347)
------------ ------------ ------------- ------------- --------------
Increase (decrease) in net assets
available for benefits (9,307,913) (4,250,449) (1,341,165) 1,065,969 869,698
Net assets available for benefits:
Beginning of year 42,451,431 19,742,241 43,550,154 1,119,028 1,573,782
------------ ------------ ------------- ------------- --------------
End of year $ 33,143,518 $ 15,491,792 $ 42,208,989 $ 2,184,997 $ 2,443,480
============ ============ ============= ============= ==============
</TABLE>
<TABLE>
<CAPTION>
<S> <C>
Non-Participant
Participant Directed Directed
------------------------- -------------
Company Unallocated
Stock Fund Loan Fund Funds Total
---------- ------------ ------------- ------------
Investment income $ - $ 73,062 $ 19,264 $ 4,801,561
Net realized and unrealized appreciation (30,169) - - 13,604,131
Employer contribution (Note 3) 364 - (1,296,832) 3,253,223
Employee contribution (Note 3) 3,132 - 2,036 6,618,515
Rollover contribution - - - 188,334
Loans to participants (733) 785,909 - -
Loan repayments 633 (413,595) 4,471 -
Benefits paid directly to participants (15,250) (91,531) - (12,543,396)
Administrative expenses (50) - 394,821 (375,268)
Transfer of participants' balances 289,637 - (4,877,777) -
Transfer from (to) other trustees (Note 5) - 82,014 26,984,601 (6,596,953)
---------- ------------ ------------- ------------
Increase (decrease) in net assets
available for benefits 247,564 435,859 21,230,584 8,950,147
Net assets available for benefits:
Beginning of year - 672,614 3,655,778 112,765,028
---------- ------------ ------------- ------------
End of year $ 247,564 $ 1,108,473 $ 24,886,362 $121,715,175
========== ============ ============= ============
</TABLE>
The accompanying notes to financial statements
are an integral part of these financial statements.
F-5
<PAGE>
COLLINS & AIKMAN PRODUCTS CO.
(FORMERLY COLLINS & AIKMAN CORPORATION)
EMPLOYEES' PROFIT SHARING AND PERSONAL SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997 AND 1996
1. General
On July 7, 1994, Collins & Aikman Corporation (a wholly-owned subsidiary
of Collins & Aikman Group, Inc.) changed its name to Collins & Aikman
Products Co. On July 13, 1994, Collins & Aikman Group, Inc. was merged
into its wholly-owned subsidiary Collins & Aikman Products Co. (the
"Company"). Effective March 1, 1991, the Collins & Aikman Products Co.
(formerly Collins & Aikman Corporation) Employees' Profit Sharing and
Personal Savings Plan (the "Plan") was amended and restated to comply
with the Tax Reform Act of 1986 (Note 9).
Banker's Trust Company (the "Trustee") serves as the principal trustee
of the Plan. The Trustee acts as custodian for the Plan's assets,
executes primarily all investment transactions and provides periodic
reports to the Plan's administrators.
2. Summary of Significant Accounting Policies
The accompanying financial statements have been prepared on an accrual
basis of accounting. Administrative expenses, including compensation and
expenses of the Trustee, have been borne by the Plan while expenses
incidental to the purchase and sale of investments are reflected in the
cost of the related securities. Certain expenses related to the
administration of the Plan have been borne by the Company.
Current values of trust investments are based upon quoted market prices
of the underlying securities. Realized appreciation (depreciation) is
determined as the difference between sales proceeds and the value of
investment units as of the beginning of the plan year or the cost of
investment units purchased during the year. Unrealized appreciation
(depreciation) is determined as the difference between the value of
investment units at the end of the plan year and the value of investment
units at the beginning of the plan year, or cost if the investment units
were purchased during the current year.
Effective July 1, 1997, employees other than excluded employees (as
defined), may make rollover contributions to the Plan as provided by the
Plan's provisions.
As indicated in Note 3, the Guaranteed Fund's assets include Guaranteed
Investment Contracts (GIC's) and Bank Investment Contracts (BIC's)
sponsored by various insurance companies and banks authorized to issue
such contracts as well as GIC Alternatives sponsored by the Trustee. The
GIC's and BIC's are reported to the Trustee by the insurance companies
or banks at contract value, which approximate fair market value.
Contract value includes contributions plus accrued earnings less
administrative expenses. The GIC Alternatives represent pooled funds of
fixed income securities which are traded on national exchanges. These
pooled funds are covered by a "wrapper contract" which guarantees the
Plan's principal as well as a stated rate of return. The GIC
Alternatives are reported at the wrapper contract value, which
approximates fair market value, and which includes contributions plus
accrued interest less administrative expenses.
Two participant contribution accounts and two company contribution
accounts are maintained for each participant to account for his or her
interest in the Plan. The participant contribution accounts consist of
before-tax and after-tax savings accounts. The Company contribution
accounts consist of profit sharing and Company match accounts (Note 3).
The accounts for all participants are valued at their fair market value
on the valuation date in accordance with the Plan agreement.
F-6
<PAGE>
The Company's profit sharing contribution is allocated to each
participant who was an active employee at the end of the Plan year in
the ratio of the active participant's eligible compensation to the total
compensation of all active participants.
3. Description of the Plan
The following description of the Plan provides only general information.
For a more complete description, participants should refer to the
Summary Plan Description.
The Plan is a defined contribution plan subject to the provisions of the
Employee Retirement Income Security Act of 1974. The following separate
elective investment funds are available to the participants for the
purpose of investing their contributions and the Company's
contributions:
- A guaranteed fund which invests primarily in the Trustee's GIC Fund
II. The GIC Fund II invests in GIC's, BIC's and GIC Alternatives,
which are guaranteed as to both principal and income.
- A balanced fund which invests primarily in the Trustee's Equity
Index Fund and the Trustee's Short and Intermediate Term Bond Fund
at the Trustee's discretion. The Short and Intermediate Term Bond
Fund is invested in a diversified portfolio of foreign and domestic
fixed income investments, with a small percentage of assets also
invested in corporate bonds and mortgages.
- An equity fund which invests primarily in the Trustee's Equity 500
Index Fund. The Equity 500 Index Fund invests principally in common
stocks and may also hold S&P Index Futures contracts and other
investments including preferred stocks, corporate notes and other
corporate investments as a result of transactions initiated by
investee corporations. Investments are selected by the investment
manager to statistically mirror the performance of the S&P 500
Index, and no one investment accounts for greater than 3.0% of the
fund's assets.
- An international equity fund which invests in the Trustee's
International Equity Fund. The International Equity Fund invests in
foreign equities and other foreign securities with equity
characteristics.
- A small capitalization fund which invests primarily in the Trustee's
Small Capitalization Equity Fund. The Small Capitalization Equity
Fund invests in smaller-sized companies, and investments are
selected by the investment manager to statistically mirror the
performance of the Russell 2000 Index.
- A company stock fund which invests in Collins & Aikman Corporation
common stock.
The unallocated fund includes employer and employee contributions and
accrued administrative expenses which have not been allocated to
participants' investment elections as of December 31, 1997. The
unallocated fund also includes a money market investment, which serves
as a temporary holding account for certain transactions, which occur
within and between the elective investment funds.
As outlined in the Plan agreement, the Company shall make a profit
sharing contribution in such amount, if any, as determined by the
Company's Board of Directors. The Company shall also make a Company
match contribution to the Plan in accordance with the Plan agreement for
each eligible salaried participant for whom a before-tax savings
contribution is made. The amount of the Company matching contribution is
50% of the first 3% of the participant's before-tax compensation that
has been contributed.
Employees may elect to make contributions to the Plan on a before-tax
and after-tax basis. Percentages withheld from eligible compensation on
behalf of the employee must be in whole multiples of 1% and cannot
exceed 10%.
All contributions made on behalf of a participant shall be invested as
designated by the participant in the specific investment fund(s) in
multiples of 1%.
F-7
<PAGE>
Effective November 1, 1996, the Plan was amended to allow participants
to borrow from their before-tax and after-tax savings accounts in an
amount not to exceed the lesser of 50% of their interests in the Plan or
$50,000. Loans may have a maximum term of four years and will be repaid
through bimonthly payroll deductions. Participants are charged interest
in accordance with the Plan's provisions. The Plan had loans outstanding
to participants of $1,108,473 and $672,614 as of December 31, 1997 and
1996, respectively.
During 1997, the Company identified Plan assets, which are held in a
separate trust for certain participants of one of the operating units of
the Company, of approximately $1,851,000 at December 31, 1996 that were
excluded from the prior financial statements of the Plan. The December
31, 1996 statement of net assets has been revised from the previous
presentation to include these assets. Had the effect of these assets
been included in the 1996 statement of changes in net assets, the
increase in net assets available for Plan benefits would have increased
$838,000 or 6.1%.
4. Investments
The fair value of individual investments that represent 5% or more of
the Plan's total investments as of December 31, 1997 or 1996 are as
follows:
1997 1996
---- ----
Banker's Trust Equity 500 Index Fund $ 41,121,710 $ 42,913,734
Banker's Trust Pyramid GIC Fund II 32,579,758 41,863,821
Banker's Trust Equity Index Fund 7,267,541 11,263,769
During 1997, the Plan's investments (including gains and losses on
investments bought and sold, as well as held during the year)
appreciated (depreciated) in value by $13,604,131 as follows:
1997
----
Banker's Trust Equity 500 Index Fund $ 9,871,607
Banker's Trust Equity Index Fund 2,955,870
Banker's Trust Short and Intermediate Term Bond Fund 408,945
Vanguard Index Trust 500 Portfolio 244,298
Fidelity Balanced Fund 173,785
Banker's Trust International Equity Fund 115,131
PBHG Growth Fund 2,200
Stein Roe Investment Trust Cap Opportunities Fund 12,525
Banker's Trust Small Capitalization Equity Fund (150,061)
Company Stock Fund (30,169)
------------------ ------------
Net realized and unrealized appreciation $ 13,604,131
============
During 1997, the Plan's investments in the Guaranteed Fund earned income
of $2,073,206, which represents an average yield of 5.5%.
5. Transfer from (to) Other Trustees
The plan was amended effective January 15, 1997 to allow the Company or
the respective purchasers of the divisions to transfer the participants
employed by the divisions to a successor tax-qualified plan. A successor
plan would be maintained and administered by the purchasers of the
respective divisions. Effective February 6, 1997 the Floorcoverings
division was acquired by a company formed by Quad-C, Inc. and Paribas
Principal Partners. Effective July 16, 1997, the Mastercraft division
was acquired by the Joan Fabrics Corporation. In conjunction with the
Floorcoverings sale, approximately $9,700,000 was transferred to a
successor plan effective April 2, 1997. In conjunction with the
Mastercraft sale, approximately $24,100,000 was transferred to a
successor plan, for the account balances of the Mastercraft participants
effective August 29, 1997.
F-8
<PAGE>
Effective December 31, 1997, the assets of the Amco Division 401(k)
Plan, the Savings, Investment and Profit Sharing Plan of JPS Automotive
L.P., the Manchester Plastics, Inc. Employee Savings and Investment
Plan, and the Manchester Plastics, Inc. Homer Division Employees 401(k)
Plan were merged into the Plan. This merger had no effect on the
amount of benefits accrued by the participants of the plans. In
conjunction with the merger of the plans listed below, all affected
participants of the respective plans became 100% vested in their
account balances as of December 31, 1997. Net assets to be transferred
from the above mentioned plans to the Plan at December 31, 1997
(which were subsequently transferred during 1998) are as follows:
<TABLE>
<CAPTION>
<S> <C>
Amco Division 401(k) Plan $ 1,769,254
The Savings, Investment and Profit Sharing of JPS Automotive L.P. 17,215,186
Manchester Plastics, Inc. Employee Savings and Investment Plan 2,750,109
Manchester Plastics, Inc. Homer Division Employees 401(k) Plan 384,241
-------------
$ 22,118,790
=============
</TABLE>
6. Distributions, Vesting and Forfeitures
A participant is fully vested with respect to the profit sharing and
Company match accounts after five years of service. The amounts credited
to a participant's before-tax and after-tax savings accounts are fully
vested when credited. A participant or participant's beneficiary shall
receive a distribution equal to the value of his vested individual
account as of the valuation date on or following retirement, death,
disability, or termination of service. Payment of the benefit is made in
the form of a lump sum or periodic installments as outlined in the Plan
agreement.
A participant who terminates service without a fully vested interest
forfeits any nonvested balance in his or her Company contribution
accounts as of the valuation date coincident with or following his or
her termination of service. The forfeited funds are then distributed to
the remaining eligible active participants' accounts ratably based upon
participants' balances. During 1997, approximately $106,000 in
forfeitures were allocated to active participants.
7. Payable to Terminated Participants/Reconciliation to Form 5500
Amounts payable to those participants who have withdrawn from
participation in the earnings and operations of the Plan as of December
31, 1997 and 1996 are included as a component of Net Assets Available
for Plan Benefits. Distributions payable to these terminated
participants, net of forfeitures, were $0 and $22,505 for 1997 and 1996,
respectively. These amounts are recorded as a liability in the Plan's
Form 5500; however, these amounts are not recorded as a liability in
accordance with generally accepted accounting principles. During 1997,
the Company identified Plan assets, which are held in a separate trust
for certain participants of one of the operating units of the Company,
that were excluded from the prior financial statements of the Plan. The
December 31, 1996 statement of net assets has been revised from the
previous presentation to include these assets (Note 3). The following
tables reconcile net assets available for plan benefits per the
financial statements and benefits paid directly to participants to the
Form 5500 to be filed by the Company as of December 31, 1997 and 1996
and for the year ended December 31, 1997:
<TABLE>
<CAPTION>
<S> <C>
1997 1996
---- ----
Net assets available for benefits per financial statements $121,715,175 $112,765,028
Assets maintained in separate trust during prior year (Note 3) - (1,851,346)
Amounts allocated to withdrawing participants - (22,505)
------------ ------------
Net assets available for benefits per the Form 5500 $121,715,175 $110,891,177
============ ============
</TABLE>
<TABLE>
<CAPTION>
<S> <C>
Year Ended
December 31,
1997
--------------
Benefits paid directly to participants per the financial statements $ 12,543,396
Less: Amounts allocated to withdrawing participants at December 31, 1996 (22,505)
--------------
Benefits paid directly to participants per the Form 5500 $ 12,520,891
==============
</TABLE>
F-9
<PAGE>
8. Termination of Plan
The Plan may be terminated at any time at the discretion of the
Company's Board of Directors. As of the termination date, contributions
will cease to be made by the Company. Upon complete or partial
termination of the Plan, all participants will be fully vested in
accordance with the Plan agreement.
9. Federal Income Taxes
The Plan received an updated determination letter dated March 12, 1998,
which covered amendments adopted up through January 16, 1997, from the
Internal Revenue Service, stating that the Plan was in accordance with
applicable plan design requirements as of that date and thus qualified
for tax exempt status. The employer believes the Plan has been operating
in compliance with the Plan document and thus continues to qualify as
tax-exempt.
10. Related Party Transactions
Certain Plan investments are shares of funds managed by Banker's Trust.
Banker's Trust is the trustee as defined by the Plan and, therefore,
these transactions qualify as party-in-interest. Also, transactions to
acquire shares of the Company's stock qualify as party-in-interest
transactions.
11. Subsequent Event
On March 13, 1998, the Company sold its Imperial Wallcoverings, Inc.
subsidiary ("Wallcoverings"). The Company had previously planned to
dividend Wallcoverings to the shareholders of Collins & Aikman
Corporation. At the time of the sale, Wallcoverings ceased to be a
participating employer in the Plan and the accounts of each participant
employed by Wallcoverings (approximately $3,205,000) were transferred to
the buyers' plan.
F-10
<PAGE>
Schedule I
COLLINS & AIKMAN PRODUCTS CO.
(FORMERLY COLLINS & AIKMAN CORPORATION)
EMPLOYEES' PROFIT SHARING AND PERSONAL SAVINGS PLAN
ITEM 27-a SCHEDULE OF ASSETS HELD FOR INVESTMENT
AS OF DECEMBER 31, 1997
<TABLE>
<CAPTION>
<S> <C>
(e)
(b) (c) (d) Current
(a) Identity of Issuer Description Cost Value
- --- ---------------------------- ---------------------------------------------------------- ------------ -----------
* Banker's Trust Equity 500 Index Fund - 329,105 units $ 32,010,280 $41,121,710
* Banker's Trust Pyramid GIC Fund II - 32,579,758 units 32,579,758 32,579,758
* Banker's Trust Equity Index Fund - 3,202 units 3,808,168 7,267,541
* Banker's Trust Short and Intermediate Term Bond Fund - 2,723,196 units 4,451,289 5,088,075
* Banker's Trust Discretionary Cash Fund - 2,373,815 units 2,373,815 2,373,815
* Banker's Trust International Equity Fund - 108,959 units 2,133,057 2,185,713
* Banker's Trust Small Capitalization Equity Fund - 116,440 units 2,407,617 2,113,393
* Banker's Trust Directed Account Cash Fund - 10,541 units 10,541 10,541
* Banker's Trust Participants loans (interest rates range from 6.3% to 12%) 1,139,246 1,139,246
Vanguard Index Trust 500 Portfolio - 12,023 units 777,142 1,082,904
Fidelity Balanced Fund - 65,117 units 905,772 994,336
Frank Russell Capital Contract Fund - 20,484 units 330,524 362,847
Loomis Sayles Bond Fund - 2, 297 units 29,525 29,465
PBHG Growth Fund - 5,739 units 144,381 145,713
Stein Roe Investment Trust Cap Opportunities - 6,036 units 168,142 180,112
* Collins & Aikman Corporation Common Stock - 27,211 units 263,243 234,695
--------- ---------
$83,532,500 $96,909,864
=========== ===========
</TABLE>
* Represents Party-in-interest to the Plan
The accompanying notes to financial statements
are an integral part of this schedule.
F-11
<PAGE>
Schedule II
COLLINS & AIKMAN PRODUCTS CO.
(FORMERLY COLLINS & AIKMAN CORPORATION)
EMPLOYEES' PROFIT SHARING AND PERSONAL SAVINGS PLAN
ITEM 27-d SCHEDULE OF REPORTABLE TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 31, 1997
<TABLE>
<CAPTION>
<S> <C>
(h)
Current
(a) Value of
Identity (c) (d) (g) Asset on (i)
of Party (b) Purchase Selling Cost of Transaction Net Gain
Involved Description of Asset Price Price Asset Date (Loss)
------------------ ---------------------------------------------------- ---------- ---------- ----------- ---------
* Banker's Trust Co. Discretionary Cash Fund (386 purchases) $23,838,001 $ - $23,838,001 $23,838,001 $ -
* Banker's Trust Co. Discretionary Cash Fund (385 sales) - 24,559,297 24,559,297 24,559,297 -
* Banker's Trust Co. Pyramid GIC Fund II (103 purchases) 18,102,015 - 18,102,015 18,102,015 -
* Banker's Trust Co. Pyramid GIC Fund II (142 sales) - 17,519,653 17,519,653 17,519,653 -
* Banker's Trust Co. Equity 500 Index Fund (135 purchases) 15,358,188 - 15,358,188 15,358,188 -
* Banker's Trust Co. Equity 500 Index Fund (110 sales) - 27,021,819 21,159,093 27,021,819 5,862,726
* Banker's Trust Co. Small Capitalization Fund (122 purchases) 3,801,681 - 3,801,681 3,801,681 -
* Banker's Trust Co. Small Capitalization Fund (105 sales) - 2,911,298 2,892,977 2,911,298 18,321
* Banker's Trust Co. Short and Intermediate Term Bond Fund 2,681,138 - 2,681,138 2,681,138 -
(13 purchases)
* Banker's Trust Co. Short and Intermediate Term Bond Fund - 2,729,722 2,443,070 2,729,722 286,652
(7 sales)
* Banker's Trust Co. Equity Index Fund (7 purchases) 626,134 - 626,134 626,134 -
* Banker's Trust Co. Equity Index Fund (13 sales) - 7,578,231 4,293,701 7,578,231 3,284,530
</TABLE>
* Represents Party-in-interest to the Plan
Columns (e) and (f) are not included as they are not applicable to the Plan
The accompanying notes to financial statements
are an integral part of this schedule.
F-12
Exhibit 1
CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS
As independent public accountants, we hereby consent to the incorporation
of our report included in this Form 11-K into the Company's previously filed
Registration Statement File No. 333-34569.
ARTHUR ANDERSEN LLP
Charlotte, North Carolina,
June 29, 1998.
F-13
