<PAGE> 1
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 [NO FEE REQUIRED]
For the fiscal year ended June 30, 1996
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED]
For the transition period from ____ to ____.
Commission File Number: 0-22144
-------
ISSUER: PLAN:
INBRAND Corporation INBRAND Corporation Employee
1169 Canton Road Profit Sharing and 401(K)
Marietta, Georgia 30066 Plan and Trust
1169 Canton Road
Marietta, Georgia 30066
<PAGE> 2
INBRAND CORPORATION
Information Required by Form 11-K
INDEX
<TABLE>
<CAPTION>
Page Number
-----------
<S> <C>
Plan Financial Statements and Audit Report, June 30, 1996
Report of Independent Accountants 1
Statement of Net Assets Available for
Benefits with Fund Information 3
Statement of Changes in Net Assets Available
for Benefits with Fund Information 5
Notes to Financial Statements 7
Schedule of Assets Held for Investment Purposes 12
Schedule of Transactions or Series of
Transactions in Excess of 5% of The
Current Value of Plan Assets 13
Consent of Independent Accountants 14
</TABLE>
ii
<PAGE> 3
The information to be included in Schedules I, II and III is
presented in the financial statements herein. Accordingly, these schedules
are not required under the related instructions and, therefore, have been
omitted.
iii
<PAGE> 4
[LETTERHEAD] JOSEPH DECOSIMO AND COMPANY
REPORT OF INDEPENDENT ACCOUNTANTS
The Trustees
INBRAND Corporation Employee Profit
Sharing and 401(k) Plan and Trust
Marietta, Georgia
We have audited the statements of net assets available for benefits with fund
information of the INBRAND Corporation Employee Profit Sharing and 401(k) Plan
and Trust (the Plan) as of June 30, 1996 and 1995, and the related statements
of changes in net assets available for benefits with fund information for the
years then ended. These financial statements are the responsibility of the
trustees. 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, the financial statements referred to above present fairly, in
all material respects, the net assets available for benefits with fund
information of the Plan as of June 30, 1996 and 1995, and the changes in its
net assets available for benefits with fund information for the years then
ended, in conformity with generally accepted accounting principles.
Our audit was made 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 and of reportable transactions are presented for purposes
of complying with the Department of Labor's Rules and Regulations for Reporting
and Disclosure under the Employee Retirement Income Security Act of 1974 and
are not a required part of the basic financial statements. 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 respects in relation to the basic financial statements taken as a
whole.
1
<PAGE> 5
The schedules of assets held for investment purposes and reportable
transactions that accompany the Plan's financial statements do not disclose the
historical cost of certain plan assets held by Kemper Financial Services, the
Plan custodian, or the net gain or loss on sales transactions. Disclosure of
this information is required by the Department of Labor's Rules and Regulations
for Reporting and Disclosure under the Employee Retirement Income Security Act
of 1974.
JOSEPH DECOSIMO AND COMPANY
A TENNESSEE REGISTERED LIMITED LIABILITY PARTNERSHIP
Chattanooga, Tennessee
December 16, 1996
2
<PAGE> 6
INBRAND CORPORATION EMPLOYEE PROFIT SHARING
AND 401(k) PLAN AND TRUST
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION
JUNE 30, 1996
<TABLE>
<CAPTION>
U.S. TOTAL BLUE
MONEY GOVERNMENT GROWTH RETURN CHIP
MARKET SECURITIES FUND FUND FUND
<S> <C> <C> <C> <C> <C>
ASSETS
Investments, at fair value -
Mutual Funds $ 931,036 $ 434,641 $ 1,553,380 $ 404,190 $ 243,085
INBRAND Corporation
Stock - - - - -
Participant Notes
Receivable - - - - -
--------- --------- ----------- --------- ---------
Total Investments 931,036 434,641 1,553,380 404,190 243,085
Employer Contribution
Receivable 5,321 173,000 (75,000) - (98,000)
--------- --------- ----------- --------- ---------
Total Assets 936,357 607,641 1,478,380 404,190 145,085
LIABILITIES
Accounts Payable and
Accrued Expenses - - - - -
--------- --------- ----------- --------- ---------
NET ASSETS AVAILABLE
FOR BENEFITS $ 936,357 $ 607,641 $ 1,478,380 $ 404,190 $ 145,085
========= ========= =========== ========= =========
</TABLE>
The accompanying notes are an integral part of the financial statements.
3
<PAGE> 7
<TABLE>
<CAPTION>
INCOME &
CAPITAL INTER- SMALL HIGH PARTICIPANT
PRESERVATION NATIONAL CAP RETURN INCOME INBRAND NOTES AND
FUND FUND FUNDS FUND FUNDS STOCK OTHER TOTAL
<S> <C> <C> <C> <C> <C> <C> <C>
$ 573,179 $ 625,409 $ 344,068 $ 209,223 $ 81,490 $ - $ - $ 5,399,701
- - - - - 730,507 - 730,507
- - - - - - 133,491 133,491
--------- --------- --------- --------- -------- --------- --------- -----------
573,179 625,409 344,068 209,223 81,490 730,507 133,491 6,263,699
118,000 91,469 - 185,210 - - - 400,000
--------- --------- --------- --------- -------- --------- --------- -----------
691,179 716,878 344,068 394,433 81,490 730,507 133,491 6,663,699
- - - - - - 8,470 8,470
--------- --------- --------- --------- -------- --------- --------- -----------
$ 691,179 $ 716,878 $ 344,068 $ 394,433 $ 81,490 $ 730,507 $ 125,021 $ 6,655,229
========= ========= ========= ========= ======== ========= ========= ===========
</TABLE>
<PAGE> 8
INBRAND CORPORATION EMPLOYEE PROFIT SHARING
AND 401(k) PLAN AND TRUST
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION
JUNE 30, 1995
<TABLE>
<CAPTION>
U.S. TOTAL BLUE
MONEY GOVERNMENT GROWTH RETURN CHIP
MARKET SECURITIES FUND FUND FUND
<S> <C> <C> <C> <C> <C>
ASSETS
Investments, at fair value -
Mutual Funds $ 695,526 $ 578,572 $ 1,331,814 $ 498,851 $ 121,759
INBRAND Corporation
Stock - - - - -
Participant Notes
Receivable - - - - -
--------- --------- ----------- --------- ---------
Total Investments 695,526 578,572 1,331,814 498,851 121,759
Employer Contribution
Receivable 210,199 (85,547) 8,964 (169,335) -
Other Receivable - - - - -
--------- --------- ----------- --------- ---------
Total Assets 905,725 493,025 1,340,778 329,516 121,759
LIABILITIES
Accounts Payable and
Accrued Expenses - - - - -
--------- --------- ----------- --------- ---------
NET ASSETS AVAILABLE
FOR BENEFITS $ 905,725 $ 493,025 $ 1,340,778 $ 329,516 $ 121,759
========= ========= =========== ========= =========
</TABLE>
The accompanying notes are an integral part of the financial statements.
4
<PAGE> 9
<TABLE>
<CAPTION>
INCOME &
CAPITAL INTER- SMALL PARTICIPANT
PRESERVATION NATIONAL CAP INCOME INBRAND NOTES AND
FUND FUND FUND FUNDS STOCK OTHER TOTAL
<S> <C> <C> <C> <C> <C> <C>
$ 460,407 $ 381,781 $ 108,273 $ 79,736 $ - $ - $ 4,256,719
- - - - 337,073 - 337,073
- - - - - 104,369 104,369
460,407 381,781 108,273 79,736 337,073 104,369 4,698,161
--------- --------- --------- -------- --------- --------- -----------
105,317 150,620 154,782 - - - 375,000
- - - - 6,523 - 6,523
--------- --------- --------- -------- --------- --------- -----------
565,724 532,401 263,055 79,736 343,596 104,369 5,079,684
- - - - - 8,470 8,470
--------- --------- --------- -------- --------- --------- -----------
$ 565,724 $ 532,401 $ 263,055 $ 79,736 $ 343,596 $ 95,899 $ 5,071,214
========= ========= ========= ======== ========= ========= ===========
</TABLE>
<PAGE> 10
INBRAND CORPORATION EMPLOYEE PROFIT SHARING
AND 401(k) PLAN AND TRUST
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
WITH FUND INFORMATION
YEAR ENDED JUNE 30, 1996
<TABLE>
<CAPTION>
U.S. TOTAL BLUE
MONEY GOVERNMENT GROWTH RETURN CHIP
MARKET SECURITIES FUND FUND FUND
<S> <C> <C> <C> <C> <C>
ADDITIONS
Investment Income -
Interest and Dividends $ 47,246 $ 40,580 $ 151,392 $ 29,184 $ 16,213
Net Appreciation
(Depreciation) in Fair
Value of Investments 815 (11,614) 147,048 27,938 27,743
Contributions -
Employer (24,543) 357,052 76,989 205,653 (55,610)
Participants 113,379 46,043 106,062 53,407 21,918
--------- --------- ----------- --------- ---------
Total Additions 136,897 432,061 481,491 316,182 10,264
--------- --------- ----------- --------- ---------
DEDUCTIONS
Benefits Paid to Participants 240,007 178,927 76,483 228,750 2,997
Administrative Expenses - - - - -
--------- --------- ----------- --------- ---------
Total Deductions 240,007 178,927 76,483 228,750 2,997
--------- --------- ----------- --------- ---------
NET INCREASE (DECREASE)
BEFORE INTERFUND
TRANSFERS (103,110) 253,134 405,008 87,432 7,267
INTERFUND TRANSFERS 133,742 (138,518) (267,406) (12,758) 16,059
--------- --------- ----------- --------- ---------
NET INCREASE 30,632 114,616 137,602 74,674 23,326
NET ASSETS AVAILABLE
FOR BENEFITS
BEGINNING OF YEAR 905,725 493,025 1,340,778 329,516 121,759
--------- --------- ----------- --------- ---------
END OF YEAR $ 936,357 $ 607,641 $ 1,478,380 $ 404,190 $ 145,085
========= ========= =========== ========= =========
</TABLE>
The accompanying notes are an integral part of the financial statements.
5
<PAGE> 11
<TABLE>
<CAPTION>
INCOME &
CAPITAL INTER- SMALL HIGH PARTICIPANT
PRESERVATION NATIONAL CAP RETURN INCOME INBRAND NOTES AND
FUND FUND FUNDS FUND FUNDS STOCK OTHER TOTAL
<S> <C> <C> <C> <C> <C> <C> <C>
$ 40,171 $ 8,189 $ 24,876 $ 1,509 $ 9,511 $ - $ 15,178 $ 384,049
(14,011) 91,738 29,244 9,125 147 290,967 - 599,140
182,936 80,424 (96,480) 189,120 10,817 42,938 (5,838) 963,458
7,658 41,081 16,937 - 16,408 67,593 (80,657) 409,829
--------- --------- --------- --------- --------- --------- --------- -----------
216,754 221,432 (25,423) 199,754 36,883 401,498 (71,317) 2,356,476
--------- --------- --------- --------- --------- --------- --------- -----------
24,760 8,590 11,546 310 85,943 67,988 (163,180) 763,121
- - - - - - 9,340 9,340
--------- --------- --------- --------- --------- --------- --------- -----------
24,760 8,590 11,546 310 85,943 67,988 (153,840) 772,461
--------- --------- --------- --------- --------- --------- --------- -----------
191,994 212,842 (36,969) 199,444 (49,060) 333,510 82,523 1,584,015
(66,539) (28,365) 117,982 194,989 50,814 53,401 (53,401) -
--------- --------- --------- --------- --------- --------- --------- -----------
125,455 184,477 81,013 394,433 1,754 386,911 29,122 1,584,015
565,724 532,401 263,055 - 79,736 343,596 95,899 5,071,214
--------- --------- --------- --------- --------- --------- --------- -----------
$ 691,179 $ 716,878 $ 344,068 $ 394,433 $ 81,490 $ 730,507 $ 125,021 $ 6,655,229
========= ========= ========= ========= ========= ========= ========= ===========
</TABLE>
<PAGE> 12
INBRAND CORPORATION EMPLOYEE PROFIT SHARING
AND 401(k) PLAN AND TRUST
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
WITH FUND INFORMATION
YEAR ENDED JUNE 30, 1995
<TABLE>
<CAPTION>
U.S. TOTAL BLUE
MONEY GOVERNMENT GROWTH RETURN CHIP
MARKET SECURITIES FUND FUND FUND
--------- --------- ----------- --------- ---------
<S> <C> <C> <C> <C> <C>
ADDITIONS
Investment Income -
Interest and Dividends $ 31,814 $ 41,061 $ 16,074 $ 12,012 $ 1,757
Net Appreciation
(Depreciation) in Fair
Value of Investments - 13,591 216,261 55,464 16,720
Contributions -
Employer 325,926 (59,134) 85,262 (142,650) 2,978
Participants 105,021 47,146 122,167 43,869 4,495
--------- --------- ----------- --------- ---------
Total Additions 462,761 42,664 439,764 (31,305) 25,950
--------- --------- ----------- --------- ---------
DEDUCTIONS
Benefits Paid to Participants 148,202 61,201 88,031 34,847 3,997
Administrative Expenses - - - - -
--------- --------- ----------- --------- ---------
Total Deductions 148,202 61,201 88,031 34,847 3,997
--------- --------- ----------- --------- ---------
NET INCREASE (DECREASE)
BEFORE INTERFUND
TRANSFERS 314,559 (18,537) 351,733 (66,152) 21,953
INTERFUND TRANSFERS 41,629 (62,646) 57,906 43,714 12,508
--------- --------- ----------- --------- ---------
NET INCREASE (DECREASE) 356,188 (81,183) 409,639 (22,438) 34,461
NET ASSETS AVAILABLE
FOR BENEFITS
BEGINNING OF YEAR 549,537 574,208 931,139 351,954 87,298
--------- --------- ----------- --------- ---------
END OF YEAR $ 905,725 $ 493,025 $ 1,340,778 $ 329,516 $ 121,759
========= ========= =========== ========= =========
</TABLE>
The accompanying notes are an integral part of the financial statements.
6
<PAGE> 13
<TABLE>
<CAPTION>
INCOME &
CAPITAL INTER- SMALL PARTICIPANT
PRESERVATION NATIONAL CAP INCOME INBRAND NOTES AND
FUND FUND FUND FUNDS STOCK OTHER TOTAL
<S> <C> <C> <C> <C> <C> <C>
$ 31,383 $ 22,859 $ 5,329 $ 4,943 $ 68 $ 10,803 $ 178,103
31,903 (55,965) 13,718 1,836 39,870 - 333,398
107,936 211,703 166,762 11,732 31,736 (1,462) 740,789
3,994 31,188 17,262 17,455 54,448 (57,679) 389,366
--------- --------- --------- -------- --------- --------- -----------
175,216 209,785 203,071 35,966 126,122 (48,338) 1,641,656
--------- --------- --------- -------- --------- --------- -----------
8,433 13,094 10,025 1,187 6,105 (198,570) 176,552
- - - - - 9,210 9,210
--------- --------- --------- -------- --------- --------- -----------
8,433 13,094 10,025 1,187 6,105 (189,360) 185,762
166,783 196,691 193,046 34,779 120,017 141,022 1,455,894
(161,265) 9,652 14,956 43,546 121,481 (121,481) -
--------- --------- --------- -------- --------- --------- -----------
5,518 206,343 208,002 78,325 241,498 19,541 1,455,894
560,206 326,058 55,053 1,411 102,098 76,358 3,615,320
--------- --------- --------- -------- --------- --------- -----------
$ 565,724 $ 532,401 $ 263,055 $ 79,736 $ 343,596 $ 95,899 $ 5,071,214
========= ========= ========= ======== ========= ========= ===========
</TABLE>
<PAGE> 14
INBRAND CORPORATION EMPLOYEE PROFIT SHARING
AND 401(k) PLAN AND TRUST
NOTES TO FINANCIAL STATEMENTS
PLAN DESCRIPTION
The following brief description of the INBRAND Corporation Employee Profit
Sharing and 401(k) Plan and Trust is provided for general information purposes
only. Participants should refer to the Plan Document for more complete
information.
The INBRAND Corporation Employee Profit Sharing and 401(k) Plan and Trust is a
defined contribution plan covering substantially all employees who have
completed one year of service. It is subject to the provisions of the Employee
Retirement Income Security Act of 1974 (ERISA). While the employer has not
expressed any intent to discontinue contributions, it is free to do so or to
terminate the plan and trust agreement with respect to its participants at any
time. In the event of the dissolution, merger, consolidation or reorganization
of the employer, the Plan shall terminate and the trust fund shall be
liquidated unless the Plan is continued by a successor to INBRAND Corporation.
Upon termination of the Plan by the employer, the accounts of the affected
participants shall become fully vested, and assets remaining in the fund after
payment of appropriate expenses shall be distributed to participants, former
participants and beneficiaries in proportion to their respective account
balances.
Each participant has a fully vested, nonforfeitable right to all amounts
credited to his account under the elective salary reduction portion and
employer matching portion of the Plan. Each participant's right in the
employer profit sharing contributions vests ratably over a five year period
upon the participant's completion of three years of service.
The benefit to which a Plan member is entitled is the benefit that can be
provided by the contributions of the employer plus income earned on investments
(including net realized and unrealized investment gains and losses) and
forfeitures eligible for distribution allocated to such member's account. Upon
service or disability retirement, death or termination, the participant or
beneficiary may elect to receive: (1) a lump sum amount equal to his vested
percentage of the value of the fund allocated to his account; (2) periodic
payments (not less frequently than annually) of substantially equal amounts for
a specified number of years not to exceed the life expectancy of the
participant; or (3) with the consent of the trustees, any combination of the
foregoing alternatives.
Participants may borrow from their fund accounts a minimum of $750 up to a
maximum equal to the lesser of $50,000 or one half of their vested account
balance. Loans are treated as distributions from the Money Market Fund.
Repayments are treated as contributions with the remaining balances held as a
Plan receivable. Loan terms range from 1 to 5 years, or up to 15 years for the
purchase of a primary residence. The loans are secured by the participant's
account and bear interest at a rate commensurate with local prevailing rates as
determined quarterly by the Plan trustees. Principal and interest are paid
ratably over the loan term through payroll deductions.
On October 25, 1993, INBRAND Corporation amended and restated the Plan in its
entirety. The restated Plan includes an additional investment option providing
for the purchase of INBRAND Corporation common stock.
7
<PAGE> 15
INBRAND CORPORATION EMPLOYEE PROFIT SHARING
AND 401(k) PLAN AND TRUST
NOTES TO FINANCIAL STATEMENTS
PLAN DESCRIPTION - continued
Upon enrollment in the Plan, a participant shall elect to allocate all
voluntary salary deferral contributions among the available separate investment
options. The allocation, subject to certain minimums, must be made in
multiples of 5% of the participant's contributions. Participants may transfer
their interests in any one or more of the investments quarterly, subject to the
terms governing the investment option.
The Plan's investment options are:
KEMPER MONEY MARKET FUND - Funds are invested in short term money
market instruments including U.S. Government Securities, bank time
deposits, commercial paper and certificates of deposit.
KEMPER U.S. GOVERNMENT SECURITIES FUND - Funds are invested in
obligations issued or guaranteed by the U.S. Government.
KEMPER GROWTH FUND - Funds are invested in common stocks issued by
established companies with potential for long term capital growth.
KEMPER TOTAL RETURN FUND - Funds are invested in common and preferred
stocks, convertible and nonconvertible bonds, and money market
instruments.
KEMPER BLUE CHIP FUND - Funds are invested in common stocks issued by
well capitalized, established companies having a market capitalization
of at least $1 billion.
KEMPER INCOME AND CAPITAL PRESERVATION FUND - Funds are invested in
investment grade corporate bonds, government securities, commercial
paper and money market instruments.
KEMPER INTERNATIONAL FUND - Funds are invested in equity and fixed
income securities of companies in foreign countries.
KEMPER SMALL CAPITALIZATION FUNDS - Funds are invested in common
stocks of smaller companies considered undervalued, emerging or
recovering.
KEMPER-DREMAN HIGH RETURN FUND - Funds are invested in a variety of
equity and fixed yield securities in an effort to achieve steady long
term growth.
KEMPER INCOME FUNDS - Funds are invested in high yield fixed income
securities and dividend paying common stocks.
INBRAND CORPORATION STOCK - Funds are invested in shares of INBRAND
Corporation common stock, with no dividends anticipated.
8
<PAGE> 16
INBRAND CORPORATION EMPLOYEE PROFIT SHARING
AND 401(k) PLAN AND TRUST
NOTES TO FINANCIAL STATEMENTS
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The significant accounting policies and practices followed by the Plan are as
follows:
BASIS OF ACCOUNTING - The financial statements of the Plan are prepared under
the accrual method of accounting.
INVESTMENT VALUATION AND INCOME RECOGNITION - The Plan's investments are stated
at fair value. Shares of registered investment companies are valued at quoted
market prices which represent the net asset value of shares held by the Plan at
year end. The INBRAND stock is valued at its quoted market price. Participant
notes receivable are valued at cost which approximates fair value.
Purchases and sales of securities are recorded on a trade-date basis.
PAYMENT OF BENEFITS - Benefits are recorded when paid.
CONTRIBUTIONS - Profit sharing contributions are accrued based upon amounts
determined by the board of directors of INBRAND Corporation (the employer).
The contributions are limited to the maximum amount deductible under the
applicable provisions of the Internal Revenue Code (the Code).
Each year the Plan administrative committee reviews the investments of the
profit sharing plan. As part of the employer contribution to this Plan, the
committee may also elect to reallocate existing investments to different funds.
The employer is required to match employee voluntary contributions at a rate of
seventy-five percent of the employee contributions, provided that no employer
matching contributions will be made on employee contributions in excess of six
percent of the employee's qualifying compensation. Employee contributions and
employer matching contributions are also limited by applicable provisions of
the Code.
TAX STATUS
The trustees for the employer believe the Plan meets the requirements for tax
qualification described in Section 401(a) of the Code. Accordingly, the Plan's
related trust is exempt from tax under Section 501(a) of the Code. The
trustees have received a favorable determination letter from the Internal
Revenue Service on the tax qualification of its Plan as amended October 18,
1994. Continued qualification of the Plan will depend upon its operation in
accordance with appropriate tax regulations.
9
<PAGE> 17
INBRAND CORPORATION EMPLOYEE PROFIT SHARING
AND 401(k) PLAN AND TRUST
NOTES TO FINANCIAL STATEMENTS
ADMINISTRATIVE EXPENSES
The employer pays certain administrative expenses on behalf of the Plan. These
expenses approximated $9,390 for 1996 and $4,200 for 1995.
RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500
The following is a reconciliation of net assets available for benefits per the
financial statements to Form 5500:
<TABLE>
<CAPTION>
1996 1995
<S> <C> <C>
Net Assets Available for Benefits per
the Financial Statements $ 6,655,229 $ 5,071,214
Balances of Accounts Withdrawn,
Lapsed or Forfeited (196,828) (57,500)
----------- -----------
Net Assets Available for Benefits per
the Form 5500 $ 6,458,401 $ 5,013,714
=========== ===========
</TABLE>
The following is a reconciliation of benefits paid to participants per the
financial statements to the Form 5500:
<TABLE>
<CAPTION>
1996 1995
<S> <C> <C>
Benefits Paid to Participants per the
Financial Statements $ 763,121 $ 176,552
Add: Balances of Accounts Withdrawn,
Lapsed or Forfeited 196,828 57,500
--------- ---------
Benefits Paid per the Form 5500 $ 959,949 $ 234,052
========= =========
</TABLE>
Amounts allocated to withdrawing participants are recorded on the Form 5500 for
benefit claims that have been processed and approved for payment prior to June
30 but not yet paid as of that date.
10
<PAGE> 18
SUPPLEMENTAL SCHEDULES
<PAGE> 19
INBRAND CORPORATION EMPLOYEE PROFIT SHARING
AND 401(k) PLAN AND TRUST
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
ITEM 27A OF FORM 5500
JUNE 30, 1996
EMPLOYER IDENTIFICATION NUMBER: 58-1113677 PLAN NUMBER: 001
<TABLE>
<CAPTION>
COST CURRENT
IDENTITY OF ISSUE DESCRIPTION OF INVESTMENT * VALUE
<S> <C> <C> <C>
Kemper Financial Services Money Market Fund $ 936,357
Kemper Financial Services U.S. Government Securities Fund 607,641
Kemper Financial Services Growth Fund 1,478,380
Kemper Financial Services Total Return Fund 404,190
Kemper Financial Services Blue Chip Fund 145,085
Kemper Financial Services Income and Capital Preservation Fund 691,179
Kemper Financial Services International Fund 716,878
Kemper Financial Services Small Cap Funds 344,068
Kemper Financial Services High Return Fund 394,433
Kemper Financial Services Income Funds 81,490
INBRAND Corporation Common Stock 730,507
-----------
6,530,208
Participant Notes Individual Loans with Various
Terms and Rates 125,021
-----------
$ 6,655,229
===========
</TABLE>
* The cost of assets held for investment purposes is not available from the
Plan custodian's records.
12
<PAGE> 20
INBRAND CORPORATION EMPLOYEE PROFIT SHARING AND 401(k) PLAN AND TRUST
SCHEDULE OF REPORTABLE TRANSACTIONS
ITEM 27D OF FORM 5500
YEAR ENDED JUNE 30, 1996
EMPLOYER IDENTIFICATION NUMBER: 58-1113677 PLAN NUMBER: 001
<TABLE>
<CAPTION>
CURRENT VALUE
OF ASSET ON
IDENTITY OF PURCHASE SELLING COST OF TRANSACTION NET GAIN
PARTY INVOLVED DESCRIPTION OF ASSET PRICE PRICE ASSET DATE (LOSS)
* *
<S> <C> <C> <C> <C> <C> <C>
Kemper Financial Services Kemper Money Market Fund $ 240,007 $ 240,007
Kemper Financial Services Kemper Money Market Fund $ 293,714 $ 293,714
Kemper Financial Services Kemper U.S. Government Fund $ 176,927 $ 176,927
Kemper Financial Services Kemper U.S. Government Fund $ 144,548 $ 144,548
Kemper Financial Services Kemper Growth Fund $ 76,483 $ 76,483
Kemper Financial Services Kemper Growth Fund $ 267,015 $ 267,015
</TABLE>
* The cost of assets sold and resulting gain or loss is not available from the
Plan custodian's records.
13
<PAGE> 21
CONSENT OF INDEPENDENT ACCOUNTANTS
We hereby consent to the inclusion of our report dated December 16, 1996, on
the financial statements of INBRAND Corporation Employee Profit Sharing and
401(k) Plan and Trust (the Plan) appearing in this annual report of the Plan on
Form 11-K for the year ended June 30, 1996, and to the incorporation by
reference of these financial statements in the Registration Statement on Form
S-8 of the Plan dated October 20, 1993.
/s/Joseph Decosimo and Company, LLP
-----------------------------------
JOSEPH DECOSIMO AND COMPANY
A TENNESSEE REGISTERED LIMITED LIABILITY PARTNERSHIP
Chattanooga, Tennessee
December 27, 1996
<PAGE> 22
Pursuant to the requirements of the Securities Exchange Act of
1934, the trustee (or other person who administers the plan) has duly caused
this annual report to be signed on its behalf by the undersigned thereunto duly
authorized.
INBRAND Corporation Employee Profit
Sharing and 401(K) Plan and Trust
Date: December 27, 1996 By: /s/ Alan E. Wesa
----------------- ------------------------------------
Plan Administrator
Alan E. Wesa
