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 [FEE REQUIRED].
For the year ended December 31, 1998
------------------------------------
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 No. 33-55629
----------------------------
A. Full title of the plan and the address of the plan, if different from that
of the issuer named below:
ANNTAYLOR, INC. SAVINGS PLAN
----------------------------
B. Name of the issuer of the securities held pursuant to the plan and the
address of its principal executive office:
ANNTAYLOR STORES CORPORATION
----------------------------
(Exact name of registrant as specified in its charter)
142 West 57th Street, New York, NY 10019
---------------------------------- -----
(Address of principal executive offices) (Zip Code)
(212) 541-3300
--------------
(Registrant's telephone number, including area code)
=========================================================================
<PAGE>
ANNTAYLOR, INC. SAVINGS PLAN
TABLE OF CONTENTS
- -------------------------------------------------------------------------
Page
INDEPENDENT AUDITORS' REPORT................................. 1
FINANCIAL STATEMENTS:
Statements of Net Assets Available for Benefits,
December 31, 1998 and 19972
Statements of Changes in Net Assets Available
for Benefits for the Years Ended
December 31, 1998 and 1997................................. 3
Notes to Financial Statements................................ 4
SUPPLEMENTAL SCHEDULES:
FORM 5500:
----------
Item 27a - Supplemental Schedule of Assets Held
for Investment Purposes, December 31, 1998................. 15
Item 27d - Supplemental Schedule of Reportable Transactions
for the Year Ended December 31, 1998....................... 16
===========================================================================
<PAGE>
INDEPENDENT AUDITORS' REPORT
----------------------------
AnnTaylor, Inc. Savings Plan:
We have audited the accompanying statements of net assets available for
benefits of the AnnTaylor, Inc. Savings Plan (the "Plan") as of December 31,
1998 and 1997, and the related statements of changes in net assets available for
benefits for the years then ended. 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 in accordance with generally accepted auditing
standards. Those standards 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. 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, such financial statements present fairly, in all material
respects, the net assets available for benefits of the Plan as of December 31,
1998 and 1997, and the changes in net assets available for benefits for the
years then ended in conformity with generally accepted accounting principles.
Our audits were conducted for the purpose of forming an opinion on the
basic financial statements taken as a whole. The supplemental schedules of
assets held for investment purposes as of December 31, 1998, and of reportable
transactions for the year ended December 31, 1998, 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's Rules and Regulations for Reporting and Disclosure under the Employee
Retirement Income Security Act of 1974. These schedules are the responsibility
of the Plan's management. Such schedules have been subjected to the auditing
procedures applied in our audit of the basic 1998 financial statements and, in
our opinion, are fairly stated in all material respects when considered in
relation to the basic 1998 financial statements taken as a whole.
DELOITTE & TOUCHE LLP
New York, New York
June 21, 1999
===========================================================================
<PAGE> 4
ANNTAYLOR, INC. SAVINGS PLAN
-----------------------------
STATEMENTS OF NET ASSETS AVAILABLE
-----------------------------------
FOR BENEFITS, DECEMBER 31, 1998 AND 1997
----------------------------------------
1998 1997
---- ----
ASSETS:
-------
Cash ............................................. -- $ 5,185
---------- ----------
Investments at fair value:
Mutual funds ................................. $9,287,054 6,072,863
Money market funds ........................... 2,341,228 2,037,742
AnnTaylor Stores Corporation Common Stock..... 942,572 273,826
Loans to Participants ........................ 369,114 248,567
---------- ----------
Total investments.............................
12,939,968 8,632,998
========== =========
Receivables:
Employer contributions ....................... 50,832 47,930
Employee contributions........................ 232,747 205,428
Loan repayments .............................. 14,100 6,919
---------- ----------
Total receivables ............................ 297,679 260,277
---------- ----------
LIABILITIES:
------------
Accrued liabilities .............................. -- 1,359
---------- ----------
Net assets available for benefits ................ $13,237,647 $ 8,897,101
=========== =============
See notes to financial statements.
===============================================================================
<PAGE>3
ANNTAYLOR, INC. SAVINGS PLAN
-----------------------------
STATEMENTS OF CHANGES IN NET ASSETS
------------------------------------
AVAILABLE FOR BENEFITS FOR THE YEARS
------------------------------------
ENDED DECEMBER 31, 1998 AND 1997
--------------------------------
1998 1997
---- ----
ADDITIONS TO NET ASSETS ATTRIBUTED TO
INVESTMENT ACTIVITIES:
Dividend income.................. $ 599,205 $ 526,813
Investment income................ --- 14,407
Net appreciation in fair
value of investments.......... 1,735,234 541,404
--------- ---------
Total additions attributed to
investment activities......... 2,334,439 1,082,624
--------- ---------
ADDITIONS TO NET ASSETS ATTRIBUTED TO
CONTRIBUTION ACTIVITIES:
Employer contributions........... 590,617 518,356
Employee contributions........... 2,695,544 2,267,605
Rollover contributions........... 233,160 260,536
--------- ---------
Total additions attributed
to contribution activities ....... 3,519,321 3,046,497
--------- ---------
Loan repayments .................... 35,777 10,509
--------- ---------
DEDUCTIONS FROM NET ASSETS:
Benefits paid to participants ...... 1,548,991 1,265,490
--------- ---------
NET INCREASE IN NET ASSETS AVAILABLE
FOR BENEFITS ....................... 4,340,546 2,874,140
NET ASSETS AVAILABLE FOR BENEFITS:
Beginning of year ............... 8,897,101 6,022,961
--------- ---------
End of year ..................... $13,237,647 $8,897,101
=========== ==========
See notes to financial statements.
===============================================================================
<PAGE> 4
ANNTAYLOR, INC. SAVINGS PLAN
-----------------------------
NOTES TO FINANCIAL STATEMENTS
------------------------------
1. PLAN DESCRIPTION
-------------------
The following description of the AnnTaylor, Inc. Savings Plan (the "Plan")
provides only general information. Participants should refer to the Summary
Plan Description, which is available from the Plan administrator, for a more
complete description of the Plan's provisions.
GENERAL
The Plan is a contributory, defined contribution plan established by
AnnTaylor, Inc. (the "Company") as of July 1, 1989. The Plan covers all
employees of the Company who have completed a twelve consecutive month
period of employment consisting of at least 1,000 hours of service. It is
subject to the provisions of the Employee Retirement Income Security Act of
1974 ("ERISA").
TRUSTEE CONVERSION
Effective January 1, 1997, American Express Trust Company replaced
Fleet Bank, N.A. as Plan Trustee. Based upon participants' December 31,
1996 investment elections, assets were then transferred to American Express
Funds as follows:
FLEET BANK, N.A. AMERICAN EXPRESS
---------------- ----------------
Fidelity Managed Income Portfolio American Express Trust Income Fund II
Fidelity Puritan Fund IDS Mutual Fund
Fidelity Magellan Fund* IDS New Dimension Fund
AnnTaylor Stores Corporation AnnTaylor Stores Corporation
Common Stock Common Stock
------------------------------------
* Participants had the option to remain invested until
December 31, 1997.
In addition to the funds used for the initial transfer of assets, the
Templeton Foreign Fund, the IDS Blue Chip Advantage Fund and the AIM
Constellation Fund were added as investment options. Also, effective July
1,1997, participants of the Plan who have met the minimum balance
requirements may borrow money from their vested accounts in the Plan and
pay themselves back with interest.
CONTRIBUTIONS
In accordance with the Plan, Company matching contributions shall be
in an amount as determined from time to time by the Board of Directors in
its sole discretion. Historically, the Company contributed to the Plan 50%
of the Participant's pre-tax contributions, or after-tax contributions, or
both, subject to an overall maximum Company matching contribution of 1.5%
of the participant's compensation.
===============================================================================
<PAGE> 5
ANNTAYLOR, INC. SAVINGS PLAN
----------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
----------------------------------------
1. PLAN DESCRIPTION (continued)
-----------------
CONTRIBUTIONS (continued)
Participants may make pre-tax contributions in an amount not less than
1% or more than 10% of their compensation for each pay period.
Participants' aggregate pre-tax contributions may not exceed $10,000 in
1998 and $9,500 in 1997. A participant may elect to make after-tax
contributions in an amount not to exceed 10% of their compensation when
combined with pre-tax contributions. Total employee contributions are
subject to limitations imposed by the Internal Revenue Service. All
employee contributions are remitted to the trustee and invested together
with Company contributions. For the Plan year ended December 31, 1998 and
1997, all contributions to the Plan by or on behalf of a participant were
invested in one or all of the following Investment Funds, or such other
Investment Funds which the administrative committee of the Plan may have
from time to time specified:
(a) Fund A is the American Express Trust Income Fund II, a stable capital
fund, the prospectus for which indicates that the funds are invested
in insurance investment contracts and stable value contracts of
varying maturity, size, and yield. The Fund's objective is to preserve
principal and interest while maximizing current income.
(b) Fund B is the IDS Mutual Fund, a balanced fund, the prospectus for
which indicates that the funds are invested in a portfolio of common
stocks and senior securities (preferred stocks and bonds). The Fund's
objective is to provide shareholders with a balance of growth of
capital and current income.
(c) Fund C is the IDS Blue Chip Advantage Fund, a diversified mutual fund,
the prospectus for which indicates that the funds are invested in U.S.
and foreign stocks that are included in the market index (currently
the S&P 500). The Fund's objective is to provide shareholders with a
long-term return exceeding that of the U.S. stock market.
(d) Fund D is the IDS New Dimension Fund, a growth fund, the prospectus
for which indicates that the funds are invested in U.S. and foreign
companies showing the potential for significant growth. The objective
of the fund is to provide shareholders with long-term growth of
capital.
(e) Fund E is the AIM Constellation Fund, an aggressive growth fund, the
prospectus for which indicates that the funds are primarily invested
in common stocks, with the emphasis on medium-sized and smaller
emerging growth companies. The objective of the fund is to seek
capital appreciation and increase shareholders' capital.
(f) Fund F is the Templeton Foreign Fund, a foreign stock fund, the
prospectus for which indicates that the funds are invested in stocks
and debt obligations of companies and governments outside of the U.S.
The objective of the fund is to seek long-term capital growth.
(g) Fund G is the AnnTaylor Stock Fund, which invests in shares of
AnnTaylor Stores Corporation common stock.
===============================================================================
<PAGE> 6
ANNTAYLOR, INC. SAVINGS PLAN
----------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
------------------------------------------
1. PLAN DESCRIPTION (continued)
- -------------------------------
PARTICIPANT ACCOUNTS
Each participant's account is credited with (a) the participant's
contributions, (b) the Company's matching contributions, and (c) an allocable
share of Plan earnings. Allocations of Plan earnings are based on participant
account balances. A participant is entitled to the vested balance in their
account.
LOANS TO PARTICIPANTS
Participants may borrow from their fund accounts a minimum of $1,000 up to
a maximum of $50,000 or 50% of their vested account balance, whichever is
less. Loan terms range from 1 to 5 years. The loans are secured by 50% of the
balance in the participant's account and bear interest at a rate as
determined by the Plan's Administrative Committee based on prevailing prime
rates at the time of the loan.
VESTING
The Plan provides that participants have no vested interest in Company
contributions or Plan earnings thereon credited to their accounts until they
have three years of service, at which time they are 50% vested. Vesting
increases by 25% per year up to 100% after five years of service. The Plan
provides 100% vesting of a participant's account balance upon their
retirement, death or disability.
Participants are fully vested at all times with respect to employee
contributions and earnings thereon.
PAYMENT OF BENEFITS
Participants or their beneficiaries are entitled to receive their entire
account balance, in accordance with the vesting provisions of the Plan, upon
retirement, death, disability or employment termination. All distributions
are lump sum payments. Participants whose account balances are in excess of
$5,000 may elect deferred payment.
FORFEITURES
Amounts forfeited by participants shall be used to reduce future Company
contributions.
RECLASSIFICATION
Certain 1997 amounts have been reclassified to conform to the 1998
presentation.
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
---------------------------------------------
The significant accounting policies followed by the Plan are detailed below:
o The accompanying financial statements of the Plan have been prepared
on the accrual basis of accounting.
o Investments are reported at fair value which, for investments traded
publicly including mutual funds, is based on published market prices.
===============================================================================
<PAGE> 7
ANNTAYLOR, INC. SAVINGS PLAN
----------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
----------------------------------------
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
--------------------------------------------------------------
o Interest on investments is recorded as earned.
o Dividend income is recorded on ex-dividend dates
o Security transactions are recorded as of the trade date.
o Benefits paid to participants are recorded upon distribution.
o The preparation of financial statements in conformity with generally
accepted accounting principles requires the Plan's administrator to
make estimates and assumptions that affect the reported amounts of
assets and liabilities at the date of the financial statements and the
reported amounts of additions and deductions during the reported
period. Actual results could differ from these estimates.
3. INVESTMENTS
--------------
American Express Trust, the Plan Trustee for the years ended December 31,
1998 and 1997, invested all employee and Company contributions, as well as
earnings thereon, pursuant to the terms of the Plan. The Plan Trustee has
custody of all assets in the funds.
Investments that represent 5% or more of the Plan's net assets are
identified by an asterisk ("*").
DECEMBER 31,
1998 1997
---- ----
Investments at fair value as determined
by Quoted Market Prices:
Mutual funds:
IDS Mutual Fund............. $1,487,125* $ 1,086,884*
AIM Constellation Fund...... 521,893 212,929
IDS Blue Chip Advantage Fund 1,076,444* 367,439
IDS New Dimension Fund...... 5,919,504* 4,246,842*
Templeton Foreign Fund...... 282,088 158,769
--------- ---------
Total Mutual funds.......... 9,287,054 6,072,863
--------- ---------
Money Market fund:
American Express Trust
Income Fund II.............. 2,341,228* 2,037,742*
--------- ---------
AnnTaylor Stores Corporation
Common Stock................. 942,572* 273,826
--------- ---------
Loans to participants......... 369,114 248,567
--------- ---------
Total Investments................ $12,939,968 $8,632,998
========== =========
During 1998 and 1997, participants had the option to invest in the
American Express Trust Income Fund II. This fund invests in guaranteed
investment contracts, bank investment contracts, and synthetic investment
contracts. Plan assets invested in this fund are recorded at contract value
(which represents contributions made under the contract, plus earnings,
less withdrawals and administrative expenses) because they are fully
benefit responsive. The average yield was approximately 6.0% during 1998.
The crediting interest rate was approximately 6.0% at December 31, 1998.
Generally fair value of Plan assets invested approximates contract value,
which was $2,341,228 at December 31, 1998. According to the Trustee, the
fair value of the funds' assets approximated contract value at December 31,
1998.
================================================================================
<PAGE> 8
ANNTAYLOR, INC. SAVINGS PLAN
------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
- ------------------------------
4. SUMMARY OF NET ASSETS AVAILABLE FOR BENEFITS AND CHANGES IN NET ASSETS
------------------------------------------------------------------------
AVAILABLE FOR BENEFITS BY SEPARATE FUND (continued)
---------------------------------------------------
FISCAL 1998
--------------------------------------
AMERICAN
EXPRESS IDS
TRUST IDS BLUE CHIP
INCOME MUTUAL ADVANTAGE
FUND FUND FUND
------ ------ -----------
ADDITIONS (DEDUCTIONS) TO NET
ASSETS ATTRIBUTED TO INVESTMENT
ACTIVITIES:
Dividend income................ --- $196,037 $19,814
Investment income.............. --- --- ---
Net appreciation (depreciation)
in fair value of investments... $ 127,855 (77,064) 133,320
--------- --------- ----------
Total additions (deductions)
attributed to investment
activities..................... 127,855 118,973 153,134
--------- --------- ----------
ADDITIONS TO NET ASSETS
ATTRIBUTED TO CONTRIBUTION
ACTIVITIES:
Employer contributions......... 125,803 85,804 80,684
Employee contributions......... 501,069 379,199 382,858
Rollover contributions......... 18,810 18,945 90,988
--------- --------- ---------
Total additions attributed to
contribution activities........ 645,682 483,948 554,530
--------- --------- ---------
Loan repayments................ 44,618 18,226 9,701
--------- --------- ---------
DEDUCTIONS FROM NET ASSETS:
Benefits paid to participants.. 432,812 150,127 90,073
Loans to participants.......... 73,545 47,709 5,692
--------- --------- ---------
Total deductions from net assets 506,357 197,836 95,765
--------- --------- ---------
TRANSFERS:
Interfund transfers............ 2,824 (153,392) 246,803
--------- --------- ---------
NET INCREASE IN NET ASSETS
AVAILABLE FOR BENEFITS......... 314,622 269,919 868,403
NET ASSETS AVAILABLE FOR BENEFITS:
Beginning of period............ 2,085,731 1,258,610 258,620
--------- --------- ---------
End of period................ $ 2,400,353 $1,528,529 $1,127,023
========= ========= =========
(continued)
===============================================================================
<PAGE> 9
ANNTAYLOR, INC. SAVINGS PLAN
---------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
-----------------------------
4. SUMMARY OF NET ASSETS AVAILABLE FOR BENEFITS AND CHANGES IN NET ASSETS
------------------------------------------------------------------------
AVAILABLE FOR BENEFITS BY SEPARATE FUND (continued)
---------------------------------------------------
FISCAL 1998
----------------------------------------
NEW AIM TEMPLETON
DIMENSIONS CONSTELLATION FOREIGN
FUND FUND FUND
---- ---- ----
ADDITIONS (DEDUCTIONS) TO NET
ASSETS ATTRIBUTED TO INVESTMENT
ACTIVITIES:
Dividend income................ $ 341,686 $12,915 $28,753
Investment income.............. --- --- ---
Net appreciation (depreciation)
in fair value of investments... 934,712 61,944 (42,919)
--------- ------- -------
Total additions (deductions)
attributed to investment
activities....... 1,276,398 74,859 (14,166)
--------- ------- -------
ADDITIONS TO NET ASSETS
ATTRIBUTED TO CONTRIBUTION
ACTIVITIES:
Employer contributions......... 199,323 40,436 29,757
Employee contributions......... 939,594 218,632 138,597
Rollover contributions......... 36,410 36,991 13,825
--------- ------- -------
Total additions attributed to
contribution activities........ 1,175,327 296,059 182,179
--------- ------- -------
Loan repayments................ 48,171 6,546 2,576
--------- ------- -------
DEDUCTIONS FROM NET ASSETS:
Benefits paid to participants.. 657,005 76,332 38,509
Loans to participants.......... 105,834 5,656 1,436
--------- ------- -------
Total deductions from net assets 762,839 81,988 39,945
--------- ------- -------
TRANSFERS:
Interfund transfers............ (57,529) 23,388 (5,576)
--------- ------- -------
NET INCREASE IN NET ASSETS
AVAILABLE FOR BENEFITS......... 1,679,528 318,864 125,068
NET ASSETS AVAILABLE FOR BENEFITS:
Beginning of period............ 4,338,985 230,955 171,637
--------- ------- -------
End of period.................. $ 6,018,513 $549,819 $296,705
========= ======= =======
(continued)
===============================================================================
<PAGE> 10
ANNTAYLOR, INC. SAVINGS PLAN
------------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
-----------------------------
4. SUMMARY OF NET ASSETS AVAILABLE FOR BENEFITS AND CHANGES IN NET ASSETS
-------------------------------------------------------------------------
AVAILABLE FOR BENEFITS BY SEPARATE FUND (continued)
---------------------------------------------------
FISCAL 1998
--------------------------------------
COMPANY
STOCK LOAN
FUND FUND TOTAL
------- ---- ------
ADDITIONS (DEDUCTIONS) TO NET
ASSETS ATTRIBUTED TO INVESTMENT
ACTIVITIES:
Dividend income................ --- --- $599,205
Investment income.............. --- --- ---
Net appreciation (depreciation)
in fair value of investments... $ 597,386 --- 1,735,234
------- ------- ----------
Total additions (deductions)
attributed to
investment activities.......... 597,386 --- 2,334,439
------- ------- ----------
ADDITIONS TO NET ASSETS
ATTRIBUTED TO CONTRIBUTION
ACTIVITIES:
Employer contributions......... 28,810 --- 590,617
Employee contributions......... 141,069 $(5,474) 2,695,544
Rollover contributions......... 17,191 --- 233,160
------- ------- ----------
Total additions attributed to
contribution activities........ 187,070 (5,474) 3,519,321
------- ------- ----------
Loan repayments................ 4,897 (98,958) 35,777
------- ------- ----------
DEDUCTIONS FROM NET ASSETS:
Benefits paid to participants.. 69,063 35,070 1,548,991
Loans to participants.......... 17,459 (257,331) ---
------- ------- ----------
Total deductions from net
assets......................... 86,522 (222,261) 1,548,991
------- ------- ----------
TRANSFERS:
Interfund transfers............ (44,432) (12,086) ---
------- ------- ----------
NET INCREASE IN NET ASSETS
AVAILABLE FOR BENEFITS......... 658,399 105,743 4,340,546
NET ASSETS AVAILABLE FOR
BENEFITS:
Beginning of period............ 289,192 263,371 8,897,101
------- ------- ----------
End of period.................. $ 947,591 $369,114 $13,237,647
======= ======= ==========
================================================================================
<PAGE> 11
ANNTAYLOR, INC. SAVINGS PLAN
----------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
- ------------------------------
4. SUMMARY OF NET ASSETS AVAILABLE FOR BENEFITS AND CHANGES IN NET ASSETS
------------------------------------------------------------------------
AVAILABLE FOR BENEFITS BY SEPARATE FUND
---------------------------------------
FISCAL 1997
---------------------------------------
COMPANY
FIXED STOCK
INCOME EQUITY BALANCED FUND
FUND FUND FUND (FLEET)
---- ---- ---- -------
ADDITIONS (DEDUCTIONS) TO
NET ASSETS ATTRIBUTED TO
INVESTMENT ACTIVITIES:
Dividend income.......... --- --- --- ---
Investment income........ $ 5 $ 402 $ 1 ---
Net appreciation
(depreciation) in fair
value of investments.. --- 5,414 --- $ (4,235)
---------- ---------- -------- --------
Total additions (deductions)
attributed to investment
activities. 5 5,816 1 (4,235)
---------- ---------- -------- --------
ADDITIONS (DEDUCTIONS )TO
NET ASSETS ATTRIBUTED TO
CONTRIBUTION ACTIVITIES:
Employer contributions... (9,520) (17,631) (6,633) (2,661)
Employee contributions... (34,844) (60,438) (23,071) (9,749)
Rollover contributions... --- --- --- ---
---------- ---------- -------- --------
Total additions (deductions)
attributed to
contribution activities (44,364) (78,069) (29,704) (12,410)
---------- ---------- -------- --------
Loan repayments.......... --- --- --- ---
---------- ---------- -------- --------
DEDUCTIONS FROM NET ASSETS:
Benefits paid to
participants (14,687) (18,381) (54,577) (10,572)
Loans to participants.... --- --- --- ---
---------- ---------- -------- --------
Total deductions from net
assets (14,687) (18,381) (54,577) (10,572)
---------- ---------- -------- --------
TRANSFERS:
Interfund transfers...... 1,781,065) (3,168,470) (716,476) (292,207)
---------- ---------- -------- --------
NET INCREASE (DECREASE)
IN NET ASSETS AVAILABLE
FOR BENEFITS............ (1,810,737) (3,222,342) (691,602) (298,280)
NET ASSETS AVAILABLE FOR
BENEFITS:
Beginning of period..... 1,810,737 3,222,342 691,602 298,280
---------- ---------- -------- --------
End of period............. $ --- $ --- $ --- $ ---
========== ========== ======== ========
(continued)
===============================================================================
<PAGE> 12
ANNTAYLOR, INC. SAVINGS PLAN
----------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
- -------------------------------------------------------------------------
4. SUMMARY OF NET ASSETS AVAILABLE FOR BENEFITS AND CHANGES IN NET ASSETS
------------------------------------------------------------------------
AVAILABLE FOR BENEFITS BY SEPARATE FUND (continued)
---------------------------------------------------
FISCAL 1997
-------------------------------------------
AMERICAN
EXPRESS IDS BLUE
TRUST IDS CHIP IDS NEW
INCOME MUTUAL ADVANTAGE DIMENSIONS
FUND II FUND FUND FUND
------- ---- ---- ----
ADDITIONS (DEDUCTIONS) TO
NET ASSETS ATTRIBUTED TO
INVESTMENT ACTIVITIES:
Dividend income.......... --- $ 154,124 $ 41,474 $ $306,328
Investment income........ --- ---- --- ---
Net appreciation
(depreciation) in fair
value of investments.... $ 114,777 4,977 (21,612) 497,128
---------- ---------- --------- -----------
Total additions (deductions)
attributed to
investment activities.... 114,777 159,101 19,862 803,456
---------- ---------- --------- -----------
ADDITIONS (DEDUCTIONS) TO
NET ASSETS ATTRIBUTED TO
CONTRIBUTION ACTIVITIES:
Employer contributions... 133,393 89,262 38,176 219,041
Employee contributions... 524,117 377,945 150,888 981,898
Rollover contributions... 24,351 25,625 68,040 79,537
---------- ---------- --------- -----------
Total additions (deductions)
attributed to contribution
activities 681,861 492,832 257,104 1,280,476
---------- ---------- --------- -----------
Loan repayments.......... 6,885 2,729 1,626 9,714
---------- ---------- --------- -----------
DEDUCTIONS FROM NET ASSETS:
Benefits paid to
participants 378,069 164,394 8,900 673,713
Loans to participants.... 94,958 28,152 11,072 113,077
---------- ---------- --------- -----------
Total deductions from
net assets 473,027 192,546 19,972 786,790
---------- ---------- --------- -----------
TRANSFERS:
Interfund transfers...... 1,755,235 796,494 --- 3,032,129
---------- ---------- --------- -----------
NET INCREASE (DECREASE)
IN NET ASSETS AVAILABLE
FOR BENEFITS... 2,085,731 1,258,610 258,620 4,338,985
NET ASSETS AVAILABLE
FOR BENEFITS:
Beginning of period...... --- --- --- ---
---------- ---------- --------- -----------
End of period............ $2,085,731 $1,258,610 $ 258,620 $ 4,338,985
========== ========== ========= ===========
(continued)
================================================================================
<PAGE> 13
ANNTAYLOR, INC. SAVINGS PLAN
----------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
- ------------------------------
4. SUMMARY OF NET ASSETS AVAILABLE FOR BENEFITS AND CHANGES IN NET ASSETS
----------------------------------------------------------------------
AVAILABLE FOR BENEFITS BY SEPARATE FUND (continued)
-------------------------------------------------
<TABLE>
<CAPTION>
Fiscal 1997
-----------------------------------------------------------------------------------
Company
Stock
AIM Templeton Fidelity Fund
Constellation Foreign Magellan (American Loan
Fund Fund Fund Express) Fund Total
---- ---- ---- -------- ---- -----
ADDITIONS (DEDUCTIONS)
TO NET ASSETS
ATTRIBUTED TO
INVESTMENT ACTIVITIES:
<S> <C> <C> <C> <C> <C> <C>
Dividend income........ $ 13,504 $ 11,383 --- --- --- $ 526,813
Investment income...... --- --- $ 13,999 --- --- 14,407
Net appreciation
(depreciation) in fair
value of investments (7,048) (12,115) 30,005 (65,887) --- 541,404
-------- ------- --------- -------- -------- -----------
Total additions
(deductions) attributed
to investment activities 6,456 (732) 44,004 (65,887) --- 1,082,624
-------- ------- --------- -------- -------- -----------
ADDITIONS (DEDUCTIONS) TO
NET ASSETS ATTRIBUTED
TO CONTRIBUTION ACTIVITIES:
Employer contributions.... 25,660 18,484 (536) 31,321 --- 518,356
Employee contributions.... 115,895 78,014 --- 154,864 $12,086 2,267,605
Rollover contributions.... 15,238 38,814 --- 8,931 --- 260,536
-------- ------- --------- -------- -------- -----------
Total additions (deductions)
attributed to contribution
activities................ 156,793 135,312 (536) 195,116 12,086 3,046,497
-------- ------- --------- -------- -------- -----------
Loan repayments........... 589 281 --- 771 (12,086) 10,509
-------- ------- --------- -------- -------- -----------
DEDUCTIONS FROM NET ASSETS:
Benefits paid to participants 11,095 7,080 30,104 90,352 --- 1,265,490
Loans to participants..... 6,711 4,025 --- 5,376 (263,371) ---
-------- ------- --------- -------- -------- -----------
Total deductions from net
assets.................... 17,806 11,105 30,104 95,728 (263,371) 1,265,490
-------- ------- --------- -------- -------- -----------
TRANSFERS:
Interfund transfers....... 84,923 47,881 (13,364) 254,920 --- ---
-------- ------- --------- -------- -------- -----------
NET INCREASE
(DECREASE) IN NET ASSETS
AVAILABLE FOR BENEFITS.... 230,955 171,637 --- 289,192 263,371 2,874,140
NET ASSETS AVAILABLE FOR
BENEFITS:
Beginning of period....... --- --- --- --- --- 6,022,961
-------- ------- --------- -------- -------- -----------
End of period............ $230,955 $171,637 $ --- $289,192 $263,371 $ 8,897,101
======== ======= ========= ======== ======== ===========
</TABLE>
================================================================================
<PAGE> 14
ANNTAYLOR, INC. SAVINGS PLAN
----------------------------
NOTES TO FINANCIAL STATEMENTS (continued)
- ------------------------------
5. PRIORITIES UPON TERMINATION OF THE PLAN
------------------------------------------
The Company expects and intends to continue the Plan indefinitely, but
reserves the right under the Plan to discontinue its contributions at any
time and to amend or terminate the Plan. In the event of termination,
participants will be 100% vested in their accounts.
6. ADMINISTRATIVE COSTS
-----------------------
Professional and administrative fees and other expenses of the Plan
are paid by the Company. Personnel and facilities of the Company are used
by the Plan for its accounting and other activities at no charge to the
Plan. The Company, at any time, may elect to have all such expenses paid by
the Plan.
7. TAX STATUS
-------------
The Plan obtained its latest determination letter on February 4, 1999,
in which the Internal Revenue Service stated that the Plan, as then
designed, was in compliance with the applicable requirements of the
Internal Revenue Code. The Plan has been amended since receiving the
determination letter. However, the plan administrator believes that the
Plan is currently designed and being operated in compliance with the
applicable requirements of the Internal Revenue Code. Therefore, no
provision for income taxes has been included in the Plan's financial
statements.
8. FORFEITURES
- --------------
During the years ended December 31, 1998 and 1997, forfeitures of
$117,976 and $91,076, respectively, were allocated to reduce Company
contributions.
9. PARTICIPANT WITHDRAWALS PAYABLE
- ----------------------------------
As of December 31, 1998 and 1997, there were unprocessed distribution
requests of $43,923 and $38,118, respectively. These amounts have not been
recorded in the Plan's financial statements.
10. PARTIES IN INTEREST TRANSACTIONS
- ---------------------------------------
During the years ended December 31, 1998 and 1997, there were
transactions involving the investment of plan assets in investment funds
maintained by the Plan trustees, parties-in-interest as defined in section
3(14) of ERISA.
================================================================================
<PAGE> 15
ANNTAYLOR, INC. SAVINGS PLAN
ITEM 27a - SUPPLEMENTAL SCHEDULE OF ASSETS HELD FOR INVESTMENT
----------------------------------------------------------------------
PURPOSES, DECEMBER 31, 1998
---------------------------
<TABLE>
<CAPTION>
(a)Party in (e)Current
Interest (b) Identity of Party (c) Description of Investment (d) Cost Value
-------- --------------------- ----------------------------- -------- -----
<S> <C> <C> <C> <C>
Yes American Express Trust 126,951 shares $ 2,163,165 $ 2,341,228
Income Fund II
Yes IDS Mutual Fund 114,183 shares 1,583,243 1,487,125
No AIM Constellation Fund 17,100 shares 469,162 521,893
Yes IDS Blue Chip Advantage 94,782 shares 969,543 1,076,444
Fund
Yes IDS New Dimension Fund 205,218 shares 4,742,366 5,919,504
No Templeton Foreign Fund 33,622 shares 331,024 282,088
Yes AnnTaylor Stores Corporation 48,970 units 513,118 942,572
Common Stock
Yes Loans to Participants 116 loans at 9.25% interest 369,114 369,114
---------- ----------
$11,140,735 $12,939,968
========== ==========
</TABLE>
Employer Identification Number: 51-0297083
----------
Plan Number: 001
---
================================================================================
<PAGE> 16
ANNTAYLOR, INC. SAVINGS PLAN
------------------------------
ITEM 27d - SUPPLEMENTAL SCHEDULE OF REPORTABLE TRANSACTIONS FOR THE YEAR ENDED
------------------------------------------------------------------------------
DECEMBER 31, 1998
-----------------
<TABLE>
<CAPTION>
(f) Expenses (h)Current Value
Incurred (g)Cost of Asset on
(a) Identity of (c) Purchase (d) Selling (e) Lease with of Transaction (i) Net
Party Involved (b) Description of Asset Price Price Rental Transaction Asset Date Gain/(Loss)
-------------- ------------------------ ----- ----- ------ ----------- ----- ---- -----------
SINGLE TRANSACTIONS:
-------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NONE
SERIES OF TRANSACTIONS:
- ----------------------
American Express American Express Trust
Trust Income Fund II
59 Transactions $800,774 --- --- --- --- --- ---
90 Transactions --- $625,137 --- --- $575,785 $625,137 $49,352
American Express IDS Mutual Fund
Trust* 39 Transactions 750,337 --- --- --- --- --- ---
American Express IDS Blue Chip
Trust* Advantage Fund
66 Transactions 686,623 --- --- --- --- --- ---
American Express IDS New Dimension
Trust* Fund
44 Transactions 1,573,260 --- --- --- --- --- ---
104 Transactions --- 837,697 --- --- 688,506 837,697 149,191
* Parties in Interest
</TABLE>
Employer Identification Number: 51-0297083
----------
Plan Number: 001
---
===============================================================================
<PAGE> 17
SIGNATURES
----------
THE PLAN. Pursuant to the requirements of the Securities Exchange Act
of 1934, the Investment Committee has duly caused this Annual Report to be
signed on its behalf by the undersigned hereunto duly authorized.
AnnTaylor, Inc. Savings Plan
By: /s/ Barry Erdos
---------------------------
Barry Erdos
Executive Vice President - Chief
Financial Officer and Treasurer,
AnnTaylor, Inc.
June 28, 1999
==============================================================================
<PAGE>
EXHIBIT INDEX
-------------
Exhibit No. Page No.
------------ -------
23 Consent of Deloitte & Touche LLP 19
Exhibit 23
INDEPENDENT AUDITORS' CONSENT
-----------------------------
We consent to the incorporation by reference in Registration Statements
No. 33-31505 on Form S-8, No. 33-50688 on Form S-8, No. 33-54387 on
Form S-8, No. 33-52389 on Form S-8, No. 33-55629 on Form S-8, No.
333-32977 on Form S-8, No. 333-37145 on Form S-8 and No. 333-79921 on
Form S-8 of our report dated June 21, 1999, appearing in this Annual
Report on Form 11-K of AnnTaylor, Inc. Savings Plan for the year ended
December 31, 1998.
DELOITTE & TOUCHE LLP
New York, New York
June 28, 1999
