UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
ANNUAL REPORT
PURSUANT TO SECTION 15(d) OF THE
SECURITIES AND EXCHANGE ACT OF 1934
(Mark One)
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES AND EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 1996
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Commission file number 0-20382
A. Full title of the plan and the address of the plan, if different from
that of the issuer name below:
DANSKIN, INC. SAVINGS PLAN
B. Name of issuer of the securities held pursuant to the plan and the
address of its principal executive office:
DANSKIN, INC.
111 W. 40th Street
New York, NY 10018
<PAGE>
DANSKIN, INC. SAVINGS PLAN
FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULES
AS OF DECEMBER 31, 1996 AND DECEMBER 31, 1995
TABLE OF CONTENTS
Report of Independent Certified Public F-1 - F-4
Accountants
Statements of Net Assets Available for Plan
Benefits as of December 31, 1996
and December 31, 1995. F-5
Statements of Changes in Net Assets Available
for Plan Benefits for the year ended
December 31, 1996. F-6
Notes to Financial Statements F-7 - F-13
Supplemental Schedules:
Item 27(a) - Schedule of Assets Held for
Investment Purposes as of December 31, 1996. S-1
Item 27(d) - Schedule of Reportable Transactions
for the year ended December 31, 1996. S-2
<PAGE>
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
To the Trustees of
Danskin, Inc. Savings Plan:
We have audited the accompanying Statements of Net Assets Available for Plan
Benefits of DANSKIN, INC. SAVINGS PLAN (the "Plan") as of December 31, 1996, and
the related Statements of Changes in Net Assets Available for Plan Benefits for
the year ended December 31, 1996. 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 audit. The financial
statements of Danskin, Inc. Savings Plan as of December 31, 1995 were audited by
other auditors whose report dated June 28, 1996, expressed an unqualified
opinion on these matters.
We conducted an audit 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 audit provides a reasonable basis for our opinion.
In our opinion, the 1996 financial statements referred to above present fairly,
in all material respects, the net assets available for plan benefits of Danskin,
Inc. Savings Plan as of December 31, 1996, and the changes in net assets
available for plan benefits for the year ended December 31, 1996 in conformity
with generally accepted accounting principles.
Our audit was performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules listed on the
accompanying table of contents 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. The supplemental schedules have been subjected to the
auditing procedures applied in the audit of the basic financial statements, and,
in our opinion, are fairly stated in all material aspects in relation to the
basic financial statements taken as a whole.
Grant Thornton LLP
New York, New York
June 26, 1997
F-1
<PAGE>
CONSENT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
We consent to the incorporation by reference in the registration statements of
Danskin, Inc. on Forms S-8 (Registration Nos. 33-89692 33-53852 and 33-67644) of
our report dated June 26, 1997 on our audit of the financial statements and
supplemental schedules of Danskin, Inc. Savings Plan as of December 31, 1996 and
for the year then ended, which report is included in this Annual Report on Form
11-K.
Grant Thornton LLP
New York, New York
June 26, 1997
F-2
<PAGE>
[LETTERHEAD OF COOPERS & LYBRAND L.L.P.]
Report of Independent Accountants
To the Trustees of
Danskin, Inc. Savings Plan:
We have audited the accompanying Statement of Net Assets Available for Plan
Benefits of DANSKIN, INC. SAVINGS PLAN (the "Plan") as of December 31, 1995.
This financial statement is the responsibility of the Plan's management. Our
responsibility is to express an opinion on this financial statement based on our
audit.
We conducted our audit 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 statement is free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statement. 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 audit provides a reasonable basis for our opinion.
In our opinion, the financial statement referred to above presents fairly, in
all material respects, the net assets available for plan benefits of DANSKIN,
INC. SAVINGS PLAN as of December 31, 1995, in conformity with generally accepted
accounting principles.
/s/ Coopers & Lybrand L.L.P.
COOPERS & LYBRAND L.L.P.
New York, N.Y.
June 28, 1996
F-3
<PAGE>
[LETTERHEAD OF COOPERS & LYBRAND L.L.P.]
Consent of Independent Accountants
We consent to the incorporation by reference in the registration statements of
Danskin, Inc. on Form S-8 (Registration Nos. 33-53852 and 33-67644) of our
report dated June 28, 1996 on our audit of the Statement of Net Assets Available
for Plan Benefits of the Danskin, Inc. Savings Plan as of December 31, 1995,
which report is included in this Annual Report on Form 11-K.
/s/ Coopers & Lybrand L.L.P.
COOPERS & LYBRAND L.L.P.
New York, N.Y.
July 9, 1997
F-4
<PAGE>
Danskin, Inc. Savings Plan
Statement of Net Assets Available for Plan Benefits
As of December 31, 1996 and
December 31, 1995
<TABLE>
<CAPTION>
---------------------------
Travelers
Insurance
Liquid Assets Liquid Assets Capital Capital
Treasury Holding Company Stock Preservation Preservation
Trust Fund Account Holding Account Fund Fund
------------------------- --------------------- ------------ ------------
Dec. 1996 Dec. 1995 Dec. 1996 Dec. 1995 Dec. 1996 Dec. 1995
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Assets:
Investments (See Note 2):
Pooled Funds $2,250,901 $2,927,504
(cost $2,250,901 and
$2,927,504 respectively)
Mutual Funds
(cost $3,538,760 and
$2,611,728 respectively)
Danskin, Inc. Common Stock
(85,255 shares and 69,985 shares,
cost $284,874 and $276,335
respectively)
-------- ---------- --------- --------- ---------- ----------
-------- ---------- --------- --------- ---------- ----------
Receivables
Employer Contributions
Participant Contributions
Loans Receivable from Participants
-------- ---------- --------- --------- ---------- ----------
-------- ---------- --------- --------- ---------- ----------
Cash and Cash Equivalents: $175,778 $173,552 $2,813
-------- -------- --------- --------- ---------- ----------
$175,778 $173,552 $2,813 $2,250,901 $2,927,504
Net Assets Available for Plan Benefits: $175,778 $173,552 $2,813 $2,250,901 $2,297,504
======== ======== ========= ====== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
Participant Directed
-----------------------------------------------------------------------------
Fidelity Fidelity
Advisors Advisor
Growth High Danskin, Inc.
Opportunity Conservative Yield Income Company Stock
Portfolio Equity Fund Fund Fund Fund
---------- ------------ --------- --------- -------------------------
Dec. 1996 Dec. 1995 Dec. 1996 Dec. 1995 Dec. 1996 Dec. 1995
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Assets:
Investments (See Note 2):
Pooled Funds
(cost $2,250,901 and
$2,927,504 respectively)
Mutual Funds $1,899,143 $1,424,163 $701,206 $741,636
(cost $3,538,760 and
$2,611,728 respectively)
Danskin, Inc. Common Stock $191,824 $314,933
(85,255 shares and 69,985 shares,
cost $284,874 and $276,335
respectively)
---------- ---------- -------- -------- -------- --------
---------- ---------- -------- -------- -------- --------
Receivables
Employer Contributions
Participant Contributions
Loans Receivable from Participants
---------- ---------- -------- -------- -------- --------
---------- ---------- -------- -------- -------- --------
Cash and Cash Equivalents:
---------- ---------- -------- -------- -------- --------
$1,899,143 $1,424,163 $701,206 $741,636 $191,824 $314,933
Net Assets Available for Plan Benefits: $1,899,143 $1,424,163 $701,206 $741,636 $191,824 $314,933
========== ========== ======== ======== ======== ========
</TABLE>
<TABLE>
<CAPTION>
-------------------------------------------------
MFS Trust
Emerging
Growth Aggressive Vanguard
Fund Equity Index Participant Loan
Portfolio Fund Fund Fund
---------- ------------ --------------------- ---------------------------
Dec. 1996 Dec. 1995 Dec. 1996 Dec. 1995 Dec. 1996 Dec. 1995
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Assets:
Investments (See Note 2):
Pooled Funds $883,442 $247,536 $375,571
(cost $2,250,901 and
$2,927,504 respectively)
Mutual Funds
(cost $3,538,760 and
$2,611,728 respectively)
Danskin, Inc. Common Stock
(85,255 shares and 69,985 shares,
cost $284,874 and $276,335
respectively)
---------- ---------- -------- -------- -------- --------
---------- ---------- -------- -------- -------- --------
Receivables
Employer Contributions
Participant Contributions
Loans Receivable from Participants $177,280 $119,059
-------- -------- -------- -------- -------- --------
-------- -------- -------- -------- -------- --------
Cash and Cash Equivalents:
-------- -------- -------- -------- -------- --------
$883,442 $247,536 $375,571 $177,280 $119,059
Net Assets Available for Plan Benefits: $883,442 $247,536 $375,571 $177,280 $119,059
======== ======== ======== ======== ======== ========
</TABLE>
<TABLE>
<CAPTION>
TOTAL
---------------------
Dec. 1996 Dec. 1995
--------- ---------
<S> <C> <C>
Assets:
Investments (See Note 2):
Pooled Funds $2,250,901 $2,927,504
(cost $2,250,901 and
$2,927,504 respectively)
Mutual Funds 3,859,362 2,413,335
(cost $3,538,760 and
$2,611,728 respectively)
Danskin, Inc. Common Stock 191,824 314,933
(85,255 shares and 69,985 shares,
cost $284,874 and $276,335
respectively)
---------- ----------
6,302,087 5,655,772
---------- ----------
Receivables
Employer Contributions
Participant Contributions
Loans Receivable from Participants 177,280 119,059
---------- ----------
177,280 119,059
---------- ----------
Cash and Cash Equivalents: 175,778 176,365
---------- ----------
$6,655,145 $5,951,196
Net Assets Available for Plan Benefits: $6,655,145 $5,951,196
========== ==========
</TABLE>
F-5
<PAGE>
Statement of Changes in Net Assets
Available for Plan Benefits
For the year ended December 31, 1996
<TABLE>
<CAPTION>
-------------------------------
Travelers
Liquid Assets Insurance Capital
Treasury Trust Liquid Assets Company Stock Capital Preservation
Fund Holding Account Holding Account Preservation Fund Fund
-------------- --------------- --------------- ----------------- ------------
<S> <C> <C> <C> <C> <C>
Net assets available for plan benefits
beginning of year 0 173,552 2,813 0 2,927,504
Additions (deductions) to (from)
net assets attributed to:
Net unrealized (depreciation) appre-
ciation in fair value of investments 0 0 0 0 0
Realized gains (losses) 0 0 0 0 (391)
Interest and dividends 3,312 2,233 283 58,328 89,679
------- -------- -------- --------- ----------
3,312 2,233 283 58,328 89,288
------- -------- -------- --------- ----------
Contributions:
Employer 0 0 0 20,396 21,331
Employee 0 0 0 97,556 101,162
Rollovers 0 0 0 0 365
------- -------- -------- --------- ----------
0 0 0 117,952 122,858
------- -------- -------- --------- ----------
Total additions 3,312 2,233 283 176,280 212,146
------- -------- --------- ----------
Deductions from net assets attributed to:
Withdrawals 0 0 0 102,038 244,517
Forfeitures 0 0 0 2,186 5,930
------- -------- -------- --------- ----------
0 0 0 104,224 250,447
------- -------- -------- --------- ----------
Transfers between funds, net 172,466 (175,785) (3,096) 2,178,845 (2,889,203)
Net increase (decrease) in net assets
available for plan benefits 175,778 (173,552) (2,813) 2,250,901 (2,927,504)
------- -------- -------- --------- ----------
Net assets available for plan benefits
end of year 175,778 0 (0) 2,250,901 0
======= ======== ======== ========= ==========
</TABLE>
<TABLE>
<CAPTION>
Participant Directed
--------------------------------------------------------------------------------
Fidelity
Advisor Fidelity MFS Service
Growth Conservative Advisor Danskin, Inc. Trust
Opportunity Equity High Yield Income Company Stock Emerging Growth
Portfolio Fund Fund Fund Fund Fund
----------- ------------ ---------- -------- ------------- ---------------
<S> <C> <C> <C> <C> <C> <C>
Net assets available for
plan benefits beginning
of year 0 1,424,163 0 741,636 314,933 0
Additions (deductions) to (from)
net assets attributed to:
Net unrealized (depreciation) appre-
ciation in fair value of investments 176,902 12,845 (131,648) 91,437
Realized gains (losses) 2,440 (5,114) 907 (20,753) (33,648) 0
Interest and dividends 100,947 15,125 37,223 25,358 0 10,603
--------- ---------- -------- -------- -------- -------
280,289 10,011 50,975 4,605 (165,296) 102,040
--------- ---------- -------- -------- -------- -------
Contributions:
Employer 26,120 11,304 10,003 8,685 104,282 16,221
Employee 101,289 75,442 44,388 38,602 18,060 79,716
Rollovers 828 6,772 0 11,286 182 497
--------- ---------- -------- -------- -------- -------
128,237 93,518 54,391 58,573 122,524 96,434
--------- ---------- -------- -------- -------- -------
Total additions 408,526 103,529 105,366 63,178 (42,772) 198,474
--------- ---------- -------- -------- -------- -------
Deductions from net assets attributed to:
Withdrawals 68,306 80,226 22,962 77,575 27,881 20,158
Forfeitures 6,295 655 1,178 408 8,632 5,063
--------- ---------- -------- -------- -------- -------
74,601 80,881 24,140 77,983 36,513 25,221
--------- ---------- -------- -------- -------- -------
Transfers between funds, net 1,565,218 (1,446,811) 619,980 (726,831) (43,824) 710,189
Net increase (decrease) in net assets
available for plan benefits 1,899,143 (1,424,163) 701,206 (741,636) (123,109) 883,442
---------- -------- -------- -------- -------
Net assets available for plan benefits
end of year 1,899,143 0 701,206 (0) 191,824 883,442
========= ========== ======== ======== ======== =======
</TABLE>
<TABLE>
<CAPTION>
-------------------------
Aggressive Vanguard
Equity Index Participant Loan
Fund Fund Fund Total
---------- -------- ---------------- -----
<S> <C> <C> <C> <C>
Net assets available for plan benefits
beginning of year 247,536 0 119,059 5,951,196
Additions (deductions) to (from)
net assets attributed to:
Net unrealized (depreciation) appre-
ciation in fair value of investments 40,219 0 189,755
Realized gains (losses) 7,419 5 0 (49,135)
Interest and dividends 5,547 8,587 357,225
---------- ------- ---------- ----------
7,419 45,771 8,587 497,845
---------- ------- ---------- ----------
Contributions:
Employer 9,020 5,615 0 232,977
Employee 42,565 25,065 0 623,845
Rollovers 4,696 331 0 24,957
---------- ------- ---------- ----------
56,281 31,011 0 881,779
---------- ------- ---------- ----------
Total additions 63,700 76,782 8,587 1,379,624
---------- ------- ---------- ----------
Deductions from net assets attributed to:
Withdrawals 663 917 0 645,243
Forfeitures 85 0 0 30,432
---------- ------- ---------- ----------
748 917 0 675,675
---------- ------- ---------- ----------
Transfers between funds, net (310,488) 299,706 49,634 0
Net increase (decrease) in net assets
available for plan benefits (247,536) 375,571 58,221 703,949
---------- ------- ---------- ----------
Net assets available for plan benefits
end of year 0 375,571 177,280 6,655,145
========== ======= ========== ==========
</TABLE>
F-6
<PAGE>
DANSKIN, INC. SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
1. Description of Plan
The following descriptions of the Danskin, Inc. (The "Company" or
"Sponsor") Savings Plan (the "Plan") is provided for general information
purposes only. Participants should refer to the Plan document for a more
complete description of the Plan's provisions.
The Plan is a defined contribution plan subject to the requirements of the
Employee Retirement Income Security Act of 1974, as amended ("ERISA"). The
Plan became effective July 22, 1986 and was established to provide deferred
compensation to all non-union, full-time salaried employees following
attainment of age 21, and all nonunion part-time salaried employees
following completion of "Eligibility Service", as defined in the Plan
document.
Contributions:
Each participant may elect to contribute to the Plan by any whole
percentage between 1% and 15%. Employee contributions up to 6% of the
employee's salary are matched by the Company at a rate of 25%. The Company
may, at its discretion, make an additional annual contribution to the Plan
which is allocated to employees based upon their compensation. Effective
January 1, 1994, the Plan was amended to allow such discretionary
contributions to be made in cash or in shares of Danskin, Inc. Common
Stock. These employee, Company match and discretionary Company
contributions are all deposited in the investment programs made available
by the Plan in multiples of 10% as directed by the participant. In the case
of discretionary contributions made in shares of Danskin, Inc. Common
Stock, such contribution is deposited in the Danskin, Inc. Company Stock
Fund. Such election by the participant may be revised on a monthly basis.
In addition, the participant may transfer assets among funds as of the
first of the month, but no more often than once every three consecutive
months.
Any amounts forfeited by terminated participants are used to reduce Company
matching contributions. For the year ended December 31, 1996 approximately
$30,432 were forfeited and used to reduce the Company Match.
Allocations and Vesting:
Investment income by fund is allocated to individual accounts monthly based
on the proportion each account bears to the total of all account balances
within the Fund which earned the income.
F-7
<PAGE>
Plan participants are at all times 100% vested in the value of their
contributions and rollover accounts. Participants who were eligible
participants on June 30, 1989 are 100% vested in the value of their Company
match and discretionary Company contributions. For employees who became
eligible participants in the Plan after June 30, 1989, all company-matching
contributions vest in accordance with the following schedule:
Years of Company Service Percentage Vested
------------------------ -----------------
Less than 3 0%
3 33%
4 66%
5 100%
Participants also become 100% vested in their Company match and
discretionary Company contribution accounts upon termination of employment
due to death or disability, retirement or termination of the Plan.
Upon termination of employment, any portion of a participant's
company-matching account that is not vested is forfeited. Forfeitures are
used to reduce subsequent Company contributions.
Benefit Distributions:
Upon termination for any reason, participants are entitled to all of their
vested balances in a lump sum payment, or with respect to the Danskin, Inc.
Company Stock Fund, may elect to receive that portion of their distribution
in shares of Company stock.
The Plan includes a loan feature whereby participants may borrow up to 50%
of their vested account balances (minimum $1000, maximum $50,000). Such
loans are at the discretion of the Employee Benefits Committee and are
repayable within five years (up to ten years for loans to buy a primary
residence) and bear interest at a rate in conformity with Department of
Labor Regulations. The Plan also includes a provision for withdrawals under
certain circumstances, as defined in the Plan, under which participants may
withdraw all or a portion of their vested account balances. Under the Plan,
a participant may not replace any amounts voluntarily withdrawn.
The Company has the right to modify or amend the Plan in whole or in part
at any time, provided such amendment does not reduce accrued benefits.
F-8
<PAGE>
2. Summary of Significant Accounting Policies
a) Basis of Presentation:
The accompanying financial statements have been prepared on the accrual
basis of accounting, however, obligations for withdrawals and
distributions are recorded when paid.
b) Valuation of Investments:
Investments included in the Statements of Net Assets Available for Plan
Benefits are recorded in the following manner:
Travelers Insurance Capital Preservation Fund - Twelve month
instruments bearing interest at market rates which are valued at cost
which approximates market.
Fidelity Advisor Growth Opportunities Portfolio - at fair value based
on quotation from NASDAQ.
Fidelity Advisor High Yield Fund - at fair value based on quotation
from NASDAQ.
MSF Emerging Growth Fund - at fair value based on quotation from
NASDAQ.
Vanguard Index Fund - at fair value based on quotation from NASDAQ.
Danskin, Inc. Company Stock Fund - at fair value based on quoted market
price from NASDAQ.
c) Administrative Expenses:
Administrative expenses incurred by the Plan have been absorbed by the
Sponsor of the Plan. Such administrative expenses are not significant
to the accompanying financial statements.
F-9
<PAGE>
d) Use of Estimates:
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make significant
estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosures of contingent assets and liabilities at
the date of the financial statements and the reported amounts of
additions and deductions during the reporting period. Actual results
could differ from those estimates.
e) Risks and Uncertainties:
The Plan provides for various investment options in any combination of
stocks, mutual funds, and other investment securities. Investment
securities are exposed to various risks, such as interest rate, market
and credit. Due to the level of risk associated with certain investment
securities and the level of uncertainty related to changes in the value
of investment securities, it is at least reasonably possible that
changes in risks in the near term would materially affect participants'
account balances and the amounts reported in the statement of net
assets available for plan benefits and the statement of changes in net
assets available for plan benefits.
3. Treasury Trust Fund
All investment and withdrawal activity is processed through liquid assets
holding accounts held by the Trustee. Such accounts are considered cash
equivalents and all funds deposited remain for periods not to exceed ninety
days. These accounts are not participant directed investment options, but
rather a flow-through vehicle for processing investment and withdrawal
activity.
4. Investment Funds
The plan offers six investment funds. The Travelers Insurance Capital
Preservation Fund invests in twelve month instruments. The Fidelity Growth
Opportunity Fund consists of investments in common and preferred stocks of
various companies. The Fidelity Advisor High Yield Fund primarily invests
in U.S. Government securities and bonds. The Danskin, Inc. Company Stock
Fund invests in the common stock of Danskin, Inc. purchased either from the
Company or in the market at prevailing market rates. The MFS Emerging
Growth Fund, consists of common stocks of emerging smaller size companies
with new or innovative products. The sixth investment fund, the Index Fund,
was established effective June 1, 1996. It is managed by Vanguard and
invests in the common stock of companies included in the Standard & Poor's
500 index.
F-10
<PAGE>
Effective June 1, 1996, the following investment funds were replaced by new
investment options.
o The Capital Preservation Fund was replaced by the Traveler's Insurance
Capital Preservation Fund.
o The Conservative Equity Fund was replaced by the Fidelity Advisor Growth
Opportunities Portfolio.
o The Income Fund was replaced by the Fidelity Advisor High Yield Fund.
o The Aggressive Equity Fund was replaced by the MFS Emerging Growth A
Fund.
o The Danskin, Inc. Company Stock Fund remains unchanged.
The intent of the new investment options mirrors the old investment
options.
Participants may reinvest their contributions, matching company
contributions, discretionary company contributions and rollover
contributions in multiple of 10% in any combination among these funds.
The number of participants in each fund was as follows:
<TABLE>
<CAPTION>
Dec. 31 Dec.31
1996 1995
------- ------
<S> <C> <C>
Travelers Insurance Capital Preservation Fund (1996) 205 268
Capital Preservation Fund - Series E (1995)
Fidelity Advisor Growth Opportunities Portfolio (1996) 180 156
Dreyfus Fund (Conservative Equity Fund 1995)
Fidelity Advisor High Yield Fund Class B (1996) 121 126
Dreyfus Short Intermediate Government Fund
(Income Fund 1995)
MFS Series Trust II Emerging Growth Fund Class A (1996) 128 244
Dreyfus New Leaders Fund (Aggressive Equity
Fund 1995)
Vanguard Index Trust 500 Portfolio 58
Danskin, Inc. Company Stock Fund 223 66
</TABLE>
5. Termination of the Plan
Although it has not expressed any intent to do so, the Company, by action
of its Board of Directors, may terminate the Plan for any reason and at any
time subject to the provisions of ERISA. Upon termination of the Plan, the
rights of participants to the benefits accrued under the Plan to the date
of termination become fully vested.
F-11
<PAGE>
6. Tax Status
The Plan is intended to be qualified under section 401(a) of the Internal
Revenue Code of 1986 (the "Code") and is intended to be exempt from
taxation under Section 501(a) of the Code. The Plan received a favorable
IRS determination letter dated February 2, 1996. 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
and the related trust was tax-exempt as of the financial statement date.
Therefore, no provision for income taxes has been included in the Plan's
financial statements.
7. Accounting for Distribution to Withdrawn Participants
All amounts elected to be withdrawn by participants are recorded only when
disbursed by the Plan. As of December 31, 1996 and December 31, 1995,
$342,745 and $13,020 respectively, has been allocated to accounts of
persons who have withdrawn from participation in the earnings and
operations of the Plan, but for which disbursement of these funds from the
Plan has not yet been made.
The following is a reconciliation of net assets available for plan benefits
reported on the financial statements to the Form 5500:
<TABLE>
<CAPTION>
December 31, 1996 December 31, 1995
----------------- -----------------
<S> <C> <C>
Net assets available for plan benefits per
the financial statements $6,655,145 $5,951,196
Amounts allocated to withdrawing
participants (342,745) (13,020)
--------- --------
Net assets available for plan benefits per $6,312,400 $5,938,176
the Form 5500 ========== ==========
</TABLE>
F-12
<PAGE>
The following is a reconciliation for withdrawals per the financial
statement to the Form 5500:
<TABLE>
<CAPTION>
Year Ended Year Ended
December 31, 1996 December 31, 1995
----------------- -----------------
<S> <C> <C>
Withdrawals per the financial statements $645,243 $952,985
Add: Amounts allocated to withdrawals $342,746 $13,020
at December 31, 1996 and December
31, 1995
Less: Amounts allocated to withdrawals (13,020) (242,587)
at December 31, 1996 and 1995 -------- --------
Withdrawals per the Form 5500 $974,969 $723,418
======== ========
</TABLE>
Amounts allocated to withdrawing participants are recorded on the Form 5500
for claims processed and approved for payment prior to December 31, 1996
and December 31, 1995, but not yet paid as of that date.
8. Change of Trustee
Effective April 15, 1996, the members of the Employee Benefits Committee of
Danskin, Inc. replaced Dreyfus Trust Company as Trustee with Sumitomo Bank
of California as Successor Trustee.
F-13
<PAGE>
DANSKIN, INC. SAVINGS PLAN
EMPLOYER IDENTIFICATION #72-1284179
PLAN #001
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
FORM 5500, ITEM 27(a)
AS OF DECEMBER 31, 1996
<TABLE>
<CAPTION>
No. of Shares/
Par Value Cost Market Value
-------------- ---- ------------
<S> <C> <C> <C>
Pooled Funds
- ------------
Travelers Insurance
Capital Preservation Fund 2,227,384 $2,250,901 $2,250,901
Mutual Funds
- ------------
Fidelity Advisor Growth
Opportunity 53,800 $1,722,841 $1,899,143
Fidelity Advisor High Yield
Fund 57,618 $688,361 $701,206
MFS Service Trust II --
Emerging Growth Fund
Class A 29,166 $792,206 $883,442
Vanguard Index Trust
500 Portfolio 5,431 $335,352 $375,571
Common Stock
- ------------
Danskin, Inc. 85,255 $284,874 $191,824
-------- --------
Total Investments $6,074,535 $6,302,087
Loan Receivable $177,280 $177,280
Cash and Cash Equivalents $175,778 $175,778
-------- --------
Total Assets Held for $6,427,593 $6,655,145
Investment Purposes ========== ==========
</TABLE>
S-1
<PAGE>
DANSKIN, INC. SAVINGS PLAN
SCHEDULE OF 5% REPORTABLE TRANSACTIONS
FORM 5500 ITEM 27(d)
FOR THE YEAR ENDED DECEMBER 1996
SINGLE TRANSACTIONS
<TABLE>
<CAPTION>
Description Net Gain
Cash and Cash Equivalents Purchase Sales Cost (or Loss)
- ------------------------- -------- ----- ---- ---------
<S> <C> <C> <C> <C>
Sumitomo Bank of California $4,772,459 $4,772,459 --
Money Market Premium Account
Sumitomo Bank of California Money $4,772,459
Market Premium Account
Pooled Funds
- ------------
Capital Preservation Fund Series E 559,968 559,968
Capital Preservation Fund Series E 2,386,483 2,386,483
Travelers Capital Preservation Fund 2,386,483
Mutual Funds
- ------------
Dreyfus Fund 1,438,002 1,698,361 $(260,359)
Dreyfus Short Intermediate 617,484 643,283 (25,799)
Government Fund
Dreyfus New Leaders Fund 350,189 316,840 33,349
Fidelity Advisor High Yield Fund 1,438,002
Fidelity Advisor High Yield Fund 619,405
MFS Service Trust II Emerging 349,468
Growth Fund Class A
</TABLE>
S-2
<PAGE>
DANSKIN, INC. SAVINGS PLAN
SCHEDULE OF 5% REPORTABLE TRANSACTIONS
FORM 5500 ITEM 27(d)
FOR THE YEAR ENDED DECEMBER 1996
SERIES OF TRANSACTIONS IN THE SAME SECURITY AND WITH THE SAME PERSON
<TABLE>
<CAPTION>
Net Gain
Description Purchase Sales Cost (or Loss)
- ----------------- -------- ----- ---- ----------
<S> <C> <C> <C> <C>
Cash and Cash Equivalents
- -------------------------
Dreyfus Liquid Assets Holding $ 647,995 $ 824,360 $ 824,360 ---
Account(Dreyfus) 77 24
Number of Transactions
Trust for Federal Securities
Treasury Trust Fund (Sumitomo) 888,853 722,621 722,621
Number of Transaction 46 27
Sumitomo Bank of California Money
Market Premium Account (Sumitomo) 4,798,245 4,798,245 4,798,245
Number of Transactions 2 2
Pooled Funds
- ------------
Capital Preservation Fund - Series E 117,768 3,045,272 3,045,272 ---
Number of Transactions (Drcyfus) 7 4
Capital Preservation Fund - Series E
(Sumitomo) --- 2,952,769 2,952,769 ---
Number of Transactions 3
Travelers Insurance Capital 2,434,558 241,594 $ 241,985 $ (391)
Preservation Fund (Sumitomo)
Number of Transactions
Mutual Funds 65,928 1,641,357 1,698,982 (57,625)
- ------------ 4 3
Dreyfus Fund (Dreyfus)
Number of Transactions
1,456,272 1,667,339 (211,067)
Dreyfus Fund (Sumitomo) 2
Number of Transactions
Dreyfus Short Intermediate (Dreyfus) 50,149 772,576 807,217 (34,641)
Government Fund 7 4
Number of Transactions
</TABLE>
S-3
<PAGE>
DANSKIN, INC. SAVINGS PLAN
SCHEDULE OF 50% REPORT TABLE TRANSACTIONS
FORM 5500 ITEM 27(d)
FOR THE YEAR ENDED DECEMBER 1996
SERIES OF TRANSACTION IN THE SAME SECURITY AND WITH THE SAME PERSON
(CONTINUED)
<TABLE>
<CAPTION>
Net Gain
Description Purchase Sales Cost (or Loss)
- ----------- -------- ----- ---- ---------
<S> <C> <C> <C> <C>
Dreyfus Short Intermediate Government Fund
(Sumitomo) $702,283
Number of Transactions 2 $731,881 $(29,604)
Dreyfus New Leaders Fund (Dreyfus) $ 95,235 385,992
Number of Transactions 5 1 316,840 69,152
Dreyfus New Leaders Fund
(Sumitomo) 350,189
Number of Transactions 1 316,840 33,349
Fidelity Advisor Growth
Opportunities Portfolio (Sumitomo) 1,636,890 18,036
Number of Transactions 4 3 15,596 2,440
Fidelity Advisor High Yield Fund
Class B (Sumitomo) 702,720 52,385
Number of Transactions 4 3 51,578 807
MFS Series Trust II
Emerging Growth Fund Class A (Sumitomo) 781,603
Number of Transactions 8
Vanguard Index Trust 500 Portfolio (Sumitomo) 329,886 87
Number of Transactions 5 1 81 6
Common Stock
Danskin, Inc Common Stock Fund 18,443 113,921
Number of Transactions 9 8 144,253 (30,332)
</TABLE>
There were no reportable series of non-security transactions with the same
person.
S-4
<PAGE>
Pursuant to the requirement of the Securities Exchange Act of 1934, the
undersigned member of the Employee Benefits Committee has duly caused this
annual report to be signed on behalf of the Danskin, Inc. Savings Plan by the
undersigned thereunto duly authorized.
DANSKIN, INC. SAVINGS PLAN
By: /s/ Beverly Eichel
---------------------------
Beverly Eichel
Chairperson of the Employee
Benefits Committee
Dated June 26, 1997
