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)
ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES AND EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 1997
---------------------------------------
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, 1997 AND DECEMBER 31, 1996
TABLE OF CONTENTS
-----------------
Report of Independent Certified Public
Accountants F-1 - F-2
Statements of Net Assets Available for Plan
Benefits as of December 31, 1997 and December 31,
1996 F-3
Statements of Changes in Net Assets Available for Plan
Benefits for the year ended December 31, 1997
And December 31, 1996 F-4 - F-5
Notes to Financial Statements F-6 - F-12
Supplemental Schedules:
Item 27(a) - Schedule of Assets Held for
Investment Purposes as of December 31, 1997 S-1
Item 27(d) - Schedule of Reportable
Transactions for the year ended December 31, 1997 S-2 - S-3
<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, 1997 and
December 31, 1996 and the related Statements of Changes in Net Assets Available
for Plan 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 audit
We conducted the 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, the 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, 1997 and December 31, 1996 and the changes
in net assets available for plan benefits for the years then ended 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 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 12, 1998
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 12, 1998 on our audit of the financial statements and
supplemental schedules of Danskin, Inc. Savings Plan as of December 31, 1997 and
1996 and for the years then ended, which report is included in this Annual
Report on Form 11-K.
New York, New York
June 12, 1998
F-2
<PAGE>
DANSKIN, INC. SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS WITH FUND INFORMATION
AS OF DECEMBER 31, 1997 AND DECEMBER 31, 1996
<TABLE>
<CAPTION>
Participant Directed
--------------------
Travelers Insurance Fidelity Advisor
Treasury Capital Preservation Growth Opportunity
Trust Fund Fund Portfolio
---------- ---- ---------
12/31/97 12/31/96 12/31/97 12/31/96 12/31/97 12/31/96
-------- -------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Assets:
Investments (See Note 2):
Pooled funds $2,120,828 $2,250,901
(cost $2,120,828 and $2,250,901
respectively)
Mutual funds $2,291,246 $1,899,143
(cost $3,686,708 and $3,538,760
respectively)
Danskin, Inc. common stock
(110,125 shares and 82,255 shares,
cost $293,447 and $284,874,
respectively)
-------- -------- ---------- ---------- ---------- ----------
2,120,828 2,250,901 2,291,246 1,899,143
-------- -------- ---------- ---------- ---------- ----------
Receivables:
Loans receivable from participants
-------- -------- ---------- ---------- ---------- ----------
0 0 0 0
-------- -------- ---------- ---------- ---------- ----------
Cash and cash equivalents $213,912 $175,778
-------- -------- ---------- ---------- ---------- ----------
213,912 175,778 2,120,828 2,250,901 2,291,246 1,899,143
Liabilities:
Due to withdrawn participants
-------- -------- ---------- ---------- ---------- ----------
Net assets available for plan benefits $213,912 $175,778 $2,120,828 $2,250,901 $2,291,246 $1,899,143
======== ======== ========== ========== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
Participant Directed
--------------------
Fidelity Advisor Danskin, Inc. MFS Service
High Yield Company Stock Trust Emerging
Fund Fund Growth Fund
---- ---- -----------
12/31/97 12/31/96 12/31/97 12/31/96 12/31/97 12/31/96
-------- -------- ------- -------- ---------- --------
<S> <C> <C> <C> <C> <C>
$744,481 $701,206 $1,050,027 $883,442
$55,063 $191,824
-------- -------- ------- -------- ---------- --------
744,481 701,206 55,063 191,824 1,050,027 883,442
-------- -------- ------- -------- ---------- --------
-------- -------- ------- -------- ---------- --------
0 0 0 0 0 0
-------- -------- ------- -------- ---------- --------
-------- -------- ------- -------- ---------- --------
744,481 701,206 55,063 191,824 1,050,027 883,442
-------- -------- ------- -------- ---------- --------
$744,481 $701,206 $55,063 $191,824 $1,050,027 $883,442
======== ======== ======= ======== ========== ========
</TABLE>
<TABLE>
<CAPTION>
Vanguard Index Participant Loan
Fund Fund Total
---- ---- -----
12/31/97 12/31/96 12/31/97 12/31/96 12/31/97 12/31/96
-------- -------- -------- -------- ---------- ----------
<S> <C> <C> <C> <C> <C>
$2,120,828 $2,250,901
$516,877 $375,571 4,602,631 3,859,362
55,063 191,824
-------- -------- -------- -------- ---------- ----------
516,877 375,571 0 0 6,778,522 6,302,087
-------- -------- -------- -------- ---------- ----------
$187,217 177,280 187,217 177,280
-------- -------- -------- -------- ---------- ----------
0 0 187,217 177,280 187,217 177,280
-------- -------- -------- -------- ---------- ----------
213,912 175,778
-------- -------- -------- -------- ---------- ----------
516,877 375,571 187,217 177,280 7,179,651 6,655,145
-------- -------- -------- -------- ---------- ----------
$516,877 $375,571 $187,217 $177,280 $7,179,651 $6,655,145
======== ======== ======== ======== ========== ==========
</TABLE>
The accompanying notes are an integral part of
the financial statements.
F-3
<PAGE>
Statement of Changes in Net Assets
Available for Plan Benefits
For the Year Ended
December 31, 1997
<TABLE>
<CAPTION>
Travelers
Insurance Fidelity Fidelity
Treasury Capital Advisor Growth Advisor
Trust Preservation Opportunity High Yield
Fund Fund Portfolio Fund
---- ---- --------- ----
12/31/97 12/31/97 12/31/97 12/31/97
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Net assets available for plan benefits
beginning of year $175,778 $2,250,901 $1,899,143 $701,206
Additions (deductions) to (from) net
assets attributed to:
Net unrealized (depreciation)
appreciation in fair value of
investments 0 0 338,666 19,959
Realized gains (losses) 0 801 163,629 23,318
Interest and dividends 5,548 111,789 23,729 46,912
-------- ---------- ---------- --------
5,548 112,590 526,024 90,189
-------- ---------- ---------- --------
Contributions:
Employer 0 33,185 34,689 17,047
Employee 0 157,778 176,880 79,420
Rollovers 0 0 7,648 5,099
-------- ---------- ---------- --------
0 190,963 219,217 101,566
-------- ---------- ---------- --------
Total additions 5,548 303,553 745,241 191,755
-------- ---------- ---------- --------
Deductions from net assets attributed t
Withdrawals 0 312,697 281,015 126,374
Forfeitures 0 3,194 4,684 1,423
-------- ---------- ---------- --------
0 315,891 285,699 127,797
-------- ---------- ---------- --------
Transfers between funds, net 32,586 (117,735) (67,439) (20,683)
Net increase (decrease) in net assets
available for plan benefits 38,134 (130,073) 392,103 43,275
-------- ---------- ---------- --------
Net assets available for plan benefits
end of year $213,912 $2,120,828 $2,291,246 $744,481
======== ========== ========== ========
</TABLE>
<TABLE>
<CAPTION>
MFS Service
Trust
Danskin, Inc. Emerging Vanguard Participant
Company Stock Growth Index Loan
Fund Fund Fund Fund Total
---- ---- ---- ---- -----
12/31/97 12/31/97 12/31/97 12/31/97 12/31/97
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C>
$191,824 $883,442 $375,571 $177,280 $6,655,145
(145,334) 150,264 85,832 0 449,387
(28,215) 41,010 28,630 0 229,173
0 0 4,298 5,116 197,392
--------- ---------- -------- -------- ----------
(173,549) 191,274 118,760 5,116 875,952
--------- ---------- -------- -------- ----------
51,971 27,444 13,781 0 178,117
8,506 134,259 64,370 0 621,213
0 0 12,746 0 25,493
--------- ---------- -------- -------- ----------
60,477 161,703 90,897 0 824,823
--------- ---------- -------- -------- ----------
(113,072) 352,977 209,657 5,116 1,700,775
--------- ---------- -------- -------- ----------
11,494 147,652 275,834 0 1,155,066
2,047 1,877 7,978 0 21,203
--------- ---------- -------- -------- ----------
13,541 149,529 283,812 0 1,176,269
--------- ---------- -------- -------- ----------
(10,148) (36,863) 215,461 4,821 0
(136,761) 166,585 141,306 9,937 524,506
--------- ---------- -------- -------- ----------
$55,063 $1,050,027 $516,877 $187,217 $7,179,651
========= ========== ======== ======== ==========
</TABLE>
The accompanying notes are an
integral part of the financial statements.
F-4
<PAGE>
Statement of Changes in Net Assets
Available for Plan Benefits
For the year ended Travelers
December 31, 1996
<TABLE>
<CAPTION>
Travelers
Liquid Assets Insurance
Liquid Assets Treasury Company Capital Capital Conservative
Holding Trust Stock Holding Preservation Preservation Equity
Account Fund Account Fund Fund Fund
------- ---- ------- ---- ---- ----
12/31/96 12/31/96 12/31/96 12/31/96 12/31/96 12/31/96
-------- -------- -------- -------- -------- ----------
<S> <C> <C> <C> <C> <C> <C>
Net assets available for plan benefits
beginning of year $173,552 $0 $2,813 $2,927,504 $0 $1,424,163
Additions (deductions) to (from) net
assets attributed to:
Net unrealized (depreciation)
appreciation in fair value of
investments 0 0 0 0 0 0
Realized gains (losses) 0 0 0 (391) 0 (5,114)
Interest and dividends 2,233 3,312 283 89,679 58,328 15,125
-------- -------- ------ ---------- ---------- ----------
2,233 3,312 283 89,288 58,328 10,011
-------- -------- ------ ---------- ---------- ----------
Contributions:
Employer 0 0 0 21,331 20,396 11,304
Employee 0 0 0 101,162 97,556 75,442
Rollovers 0 0 0 365 0 6,772
-------- -------- ------ ---------- ---------- ----------
0 0 0 122,858 117,952 93,518
-------- -------- ------ ---------- ---------- ----------
Total additions 2,233 3,312 283 212,146 176,280 103,529
-------- -------- ------ ---------- ---------- ----------
Deductions from net assets attributed to:
Withdrawals 0 0 0 244,517 102,038 80,226
Forfeitures 0 0 0 5,930 2,186 655
-------- -------- ------ ---------- ---------- ----------
0 0 0 250,447 104,224 80,881
-------- -------- ------ ---------- ---------- ----------
Transfers between funds, net (175,785) 172,466 (3,096) (2,889,203) 2,178,845 (1,446,811)
Net increase (decrease) in net assets
available for plan benefits (173,552) 175,778 (2,813) (2,927,504) 2,250,901 (1,424,163)
-------- -------- ------ ---------- ---------- ----------
Net assets available for plan benefits
end of year $0 $175,778 $0 $0 $2,250,901 $0
======== ======== ====== ========== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
MFS Service
Fidelity Fidelity Trust
Advisor Growth Advisor Danskin, Inc. Emerging Aggressive Vanguard Participant
Opportunity Income High Yield Company Stock Growth Equity Index Loan
Portfolio Fund Fund Fund Fund Fund Fund Fund Total
--------- ---- ---- ---- ---- ---- ---- ---- -----
12/31/96 12/31/96 12/31/96 12/31/96 12/31/96 12/31/96 12/31/96 12/31/96 12/31/96
-------- -------- -------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$0 $741,636 $0 $314,933 $0 $247,536 $0 $119,059 $5,951,196
176,902 0 12,845 (131,648) 91,437 0 40,219 0 189,755
2,440 (20,753) 907 (33,648) 0 7,419 5 0 (49,135)
100,947 25,358 37,223 0 10,603 0 5,547 8,587 357,225
---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
280,289 4,605 50,975 (165,296) 102,040 7,419 45,771 8,587 497,845
---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
26,120 8,685 10,003 104,282 16,221 9,020 5,615 0 232,977
101,289 38,602 44,388 18,060 79,716 42,565 25,065 0 623,845
828 11,286 0 182 497 4,696 331 0 24,957
---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
128,237 58,573 54,391 122,524 96,434 56,281 31,011 0 881,779
---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
408,526 63,178 105,366 (42,772) 198,474 63,700 76,782 8,587 1,379,624
---------- ---------- ---------- ---------- ---------- ---------- ----------
68,306 77,575 22,962 27,881 20,158 663 917 0 645,243
6,295 408 1,178 8,632 5,063 85 0 0 30,432
---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
74,601 77,983 24,140 36,513 25,221 748 917 0 675,675
---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
1,565,218 (726,831) 619,980 (43,824) 710,189 (310,488) 299,706 49,634 0
1,899,143 (741,636) 701,206 (123,109) 883,442 (247,536) 375,571 58,221 703,949
---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
$1,899,143 $0 $701,206 $191,824 $883,442 $0 $375,571 $177,280 $6,655,145
========== ========== ========== ========== ========== ========== ========== ========== ==========
</TABLE>
The accompanying notes are an
integral part of the financial statements.
F-5
<PAGE>
DANSKIN, INC. SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
1. Description of Plan
The following description 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, 1997 and 1996
respectively , approximately $21,203 and $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-6
<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:
<TABLE>
<CAPTION>
Years of Company Service Percentage Vested
------------------------ -----------------
<S> <C> <C>
Less than 3 0%
3 33%
4 66%
5 100%
</TABLE>
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-7
<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.
MFS Service Trust 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 the Bulletin Boards (pink slips).
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. Beginning January 1, 1998 , these
expenses will be absorbed by the Plan.
F-8
<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 Advisor
Growth Opportunity Portfolio 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
Service Trust Emerging Growth Fund, consists of common stocks of emerging
smaller size companies with new or innovative products and the Vanguard
Index Fund invests in the common stock of companies included in the Standard
& Poor's 500 index.
F-9
<PAGE>
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 Dec. 31
1997 1996
---- -------
<S> <C> <C>
Travelers Insurance Capital Preservation Fund 194 205
Fidelity Advisor Growth Opportunities Portfolio 170 180
Fidelity Advisor High Yield Fund Class B 123 121
MFS Service Trust II Emerging Growth Fund Class A 128 128
Vanguard Index Fund 89 58
Danskin, Inc. Company Stock Fund 263 223
</TABLE>
F-10
<PAGE>
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.
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, 1997 and December 31, 1996,
$173,357 and $342,745 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, December 31,
1997 1996
------------ ------------
<S> <C> <C>
Net assets available for plan
benefits per the financial
statements $7,179,651 $6,655,145
Amounts allocated to withdrawing
participants (173,357) (342,745)
---------- ----------
Net assets available for plan
benefits per the Form 5500 $7,006,294 $6,312,400
========== ==========
</TABLE>
F-11
<PAGE>
The following is a reconciliation for withdrawals per the financial
statement to the Form 5500:
<TABLE>
<CAPTION>
Year Ended Year Ended
Dec. 31, 1997 Dec. 31, 1996
------------- -------------
<S> <C> <C>
Withdrawals per the financial
statements $1,155,066 $645,243
Add: Current Amounts allocated to
withdrawals. $173,357 $342,746
Less prior year withdrawal allocations (342,745) (13,020)
---------- --------
Withdrawals per the Form 5500 $ 985,676 $974,969
========== ========
</TABLE>
Amounts allocated to withdrawing participants are recorded on the Form 5500
for claims processed and approved for payment prior to December 31, 1997 and
December 31, 1996, but not yet paid as of that date.
8. Plan Amendments
Effective August 1, 1997, future contributions to the plan may not be
invested in the Danskin Inc. Company Stock Fund.
F-12
<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, 1997
-----------------------
<TABLE>
<CAPTION>
No. of
Shares/
Par Value Cost Market Value
--------- ---- ------------
<S> <C> <C> <C>
Pooled Funds
- ------------
TravelTravelers Insurance
Capital Preservation Fund 2,120,828 $2,120,828 $2,120,828
Mutual Funds
- ------------
Fidelity Advisor Growth
Opportunity 53,975 $1,775,678 $2,291,246
Fidelity Advisor High
Yield Fund 59,180 $711,677 $744,481
MFS Service Trust II --
Emerging Growth Fund Class A 29,022 $808,526 $1,050,027
Vanguard Index Fund 5,739 $390,827 $516,877
Common Stock
- ------------
Danskin, Inc. 110,125 $293,447 $55,063
---------- ----------
Total Investments $6,100,983 $6,778,522
Loan Receivable 8 - 8 1/2% 187,217 187,217
Cash and Cash Equivalents 213,912 $213,912 $213,912
---------- ----------
Total Assets Held for
Investment Purposes $6,502,112 $7,179,651
========== ==========
</TABLE>
S-1
<PAGE>
DANSKIN, INC. SAVINGS PLAN
SCHEDULE OF 5% REPORTABLE TRANSACTIONS
FORM 5500 ITEM 27(d)
FOR THE YEAR ENDED DECEMBER 1997
--------------------------------
SINGLE TRANSACTIONS
-------------------
There were no reportable single transactions.
S-2
<PAGE>
DANSKIN, INC. SAVINGS PLAN
SCHEDULE OF 5% REPORTABLE TRANSACTIONS
FORM 5500 ITEM 27(d)
FOR THE YEAR ENDED DECEMBER 1997
--------------------------------
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
- -------------------------
Trust for Federal
Securities
Treasury Trust Fund 1,329,939 1,282,259 1,282,259
Number of Transaction 70 29
Sumitomo Bank of
California
Money Market Premium
Account 684,599 743,702 684,599 59,103
Number of Transactions 15 17
</TABLE>
There were no reportable series of non-security transactions with the same
person.
S-3
<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: _____________________________
Beverly Eichel
Chairperson of the Employee
Benefits Committee
Dated
