-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, GPNSOiUUVmpltR+AdbeB3C/xtG4NITSEIC6M2WPMjxoSbh3bKJgztSzs2muHqx4B r9vFdLMCJsab996bAGvCtw== 0000950124-98-003766.txt : 19980714 0000950124-98-003766.hdr.sgml : 19980714 ACCESSION NUMBER: 0000950124-98-003766 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19971231 FILED AS OF DATE: 19980710 SROS: AMEX FILER: COMPANY DATA: COMPANY CONFORMED NAME: CROWLEY MILNER & CO CENTRAL INDEX KEY: 0000025871 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-DEPARTMENT STORES [5311] IRS NUMBER: 380454910 STATE OF INCORPORATION: MI FISCAL YEAR END: 0131 FILING VALUES: FORM TYPE: 11-K SEC ACT: SEC FILE NUMBER: 001-01594 FILM NUMBER: 98663984 BUSINESS ADDRESS: STREET 1: 2301 W LAFAYETTE CITY: DETROIT STATE: MI ZIP: 48216 BUSINESS PHONE: 3139622400 MAIL ADDRESS: STREET 1: 2301 WEST LAFAYETTE CITY: DETROIT STATE: MI ZIP: 48216 11-K 1 11-K 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 11-K Annual Report pursuant to Section 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended December 31, 1997 Commission File Number 1-1594 A. Full title of the plan and address of the plan, if different from that of the issuer named below: CROWLEY'S/STEINBACH 401(K) PLAN B. Name of issuer of securities held pursuant to the plan and the address of its principal executive offices: CROWLEY, MILNER AND COMPANY 2301 West Lafayette Boulevard Detroit, Michigan 48216 The following financial statements and exhibits are filed as part of this report: (a) Financial Statements Report of Independent Auditors Statements of Assets Available for Benefits, with Fund Information - December 31, 1997 and 1996 Statements of Changes in Assets Available for Benefits, with Fund Information - Years Ended December 31, 1997 and 1996 Notes to Financial Statements Supplemental Schedules Item 27a - Schedule of Assets Held for Investment Purposes Item 27d - Schedule of Reportable Transactions (b) Exhibits - Consent of Independent Auditors 2 Audited Financial Statements and Schedules Crowley's/Steinbach 401(k) Plan Years ended December 31, 1997 and 1996 with Report of Independent Auditors 3 Crowley's/Steinbach 401(k) Plan Audited Financial Statements and Schedules Years ended December 31, 1997 and 1996 CONTENTS Report of Independent Auditors....................................... 1 Audited Financial Statements Statement of Assets Available for Benefits, with Fund Information........................................................ 3 Statement of Changes in Assets Available for Benefits, with Fund Information................................................... 5 Notes to Financial Statements........................................ 8 Supplemental Schedules Item 27a - Schedule of Assets Held for Investment Purposes........... 11 Item 27d - Schedule of Reportable Transactions....................... 12 4 Report of Independent Auditors Administrative Committee Crowley's/Steinbach 401(k) Plan We have audited the accompanying statements of assets available for benefits of the Crowley's/Steinbach 401(k) Plan ("the Plan") as of December 31, 1997 and 1996, and the related statements of changes in assets available for benefits for the years then ended, as listed in the table of contents. 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, the financial statements referred to above present fairly, in all material respects, assets available for plan benefits of the Plan at December 31, 1997 and December 31, 1996, and the changes in its 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 financial statements taken as a whole. The accompanying supplemental schedules of assets held for investment purposes and reportable transactions as of and for the year ended December 31, 1997, 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 fund information in the statements of assets available for plan benefits and statements of changes in assets available for benefits is presented for purposes of additional analysis rather than to present net assets available for benefits and changes in assets available for benefits of each fund. The supplemental schedules and fund information have been subjected to the auditing procedures applied in our audits of the financial statements and, in our opinion, are fairly stated in all material respects in relation to the financial statements taken as a whole. 1 5 The information presented in the "Schedules of Assets Held for Investment Purposes and Reportable Transactions" does not disclose the historical cost of investments. 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. /s/ ERNST AND YOUNG LLP Detroit, Michigan June 26, 1998 2 6 Crowley's/Steinbach 401(k) Plan Statement of Assets Available for Benefits, with Fund Information December 31, 1997
FUND INFORMATION ------------------------------------------------------------------------------------------------------ MFS GOVERNMENT MASSACHUSETTS VANGUARD MFS MFS MONEY LIMITED MFS INVESTORS MFS INDEX TEMPLETON FIXED MARKET MATURITY BOND TRUST RESEARCH TRUST-500 FOREIGN CROWLEY FUND FUND FUND FUND FUND FUND FUND FUND STOCK ------------------------------------------------------------------------------------------------------ ASSETS Investments at fair value (Note 1) Mutual Funds $39,415 $508,554 $491,391 $665,141 $1,415,776 $1,445,661 $2,829,270 $255,879 Guaranteed Investment Contract Company Stock $218,030 Participant loans ------------------------------------------------------------------------------------------------------ Total investments 39,415 508,554 491,391 665,141 1,415,776 1,445,661 2,829,270 255,879 218,030 Receivables: Participants' contributions 15,458 15,144 4,518 9,994 23,244 15,664 21,220 8,369 2,612 Employer's contribution 13,357 18,266 3,864 5,900 13,765 9,209 9,209 4,321 2,030 ------------------------------------------------------------------------------------------------------ Total Receivables 28,815 33,410 8,382 15,894 37,009 24,873 30,429 12,690 4,642 ------------------------------------------------------------------------------------------------------ Assets available for benefits $68,230 $541,964 $499,773 $681,035 $1,452,785 $1,470,534 $2,859,699 $268,569 $222,672 ====================================================================================================== FUND INFORMATION ------------------------------------------- CROWLEY STEINBACH DEFINED FROZEN FROZEN BENEFIT G.I.C. G.I.C. G.I.C. FUND FUND FUND LOANS TOTAL -------------------------------------------------------- ASSETS Investments at fair value (Note 1) Mutual Funds $ 7,651,087 Guaranteed Investment Contract $1,078,224 $3,319,696 $1,518,002 5,915,922 Company Stock 218,030 Participant loans $221,177 221,177 -------------------------------------------------------- Total investments 1,078,224 3,319,696 1,518,002 221,177 14,006,216 Receivables: Participants' contributions 116,223 Employer's contribution 79,921 -------------------------------------------------------- Total Receivables 196,144 -------------------------------------------------------- Assets available for benefits $1,078,224 $3,319,696 $1,518,002 $221,177 $14,202,360 ========================================================
See accompanying notes. 3 7 Crowley's/Steinbach 401(k) Plan Statement of Assets Available for Benefits, with Fund Information December 31, 1996
FUND INFORMATION ------------------------------------------------------------------------------------------- ROYAL GOVERNMENT INTERMEDIATE EQUITY EQUITY INTERNATIONAL LOAN/ MACCABEE'S SECURITIES BOND INCOME GROWTH EQUITY PROCESSING SAFTY + #2 FUND FUND FUND FUND INDEX FUND FUND ------------------------------------------------------------------------------------------- ASSETS Investments at fair value (Note 1) Royal Maccabee's separate accounts $526,612 $656,764 $1,063,964 $1,225,893 $161,924 Royal Maccabee's Guaranteed Investment Contract $1,232,335 Company Stock Participant loans $144,804 ------------------------------------------------------------------------------------------- Total investments 526,612 656,764 1,063,964 1,225,893 161,924 144,804 1,232,335 Receivables: Participants' contributions 4,276 4,118 6,577 7,831 2,067 8,944 Employer's contribution 17,478 13,651 22,544 25,324 6,774 62,344 ------------------------------------------------------------------------------------------- Total Receivables: 21,754 17,769 29,121 33,155 8,841 71,288 Other ------------------------------------------------------------------------------------------- Assets available for benefits $548,366 $674,533 $1,093,085 $1,259,048 $170,765 $144,804 $1,303,623 =========================================================================================== FUND INFORMATION --------------------------------------------- G.I.C. COLLECTIVE S&P MONEY SAFTY + #1, 500 MARKET CROWLEY #2 FUND FUND FUND STOCK TOTAL ---------------------------------------------------------- ASSETS Investments at fair value (Note 1) Royal Maccabee's separate accounts $1,658,799 $624,668 $346,534 $6,265,158 Royal Maccabee's Guaranteed Investment Contract 1,232,335 Company Stock $231,649 231,649 Participant loans 144,804 ---------------------------------------------------------- Total investments 1,658,799 624,668 346,534 231,649 7,873,946 Receivables: Participants' contributions 4,463 2,567 1,239 42,082 Employer's contribution 15,534 18,180 (19,537) 162,292 ---------------------------------------------------------- Total Receivables: 19,997 20,747 (18,298) 204,374 Other 34,485 34,485 ---------------------------------------------------------- Assets available for benefits $1,658,799 $644,665 $367,281 $247,836 $8,112,805 ==========================================================
4 8 Crowley's/Steinbach 401(k) Plan Statement of Changes in Assets Available for Benefits, with Fund Information Year ended December 31, 1997
FUND INFORMATION ----------------------------------------------------------------------------------------------- MFS MFS GOVERNMENT MASSACHUSETTS VANGUARD MFS MONEY LIMITED MFS INVESTORS MFS INDEX TEMPLETON FIXED MARKET MATURITY RESEARCH TRUST RESEARCH TRUST-500 FOREIGN FUND FUND FUND FUND FUND FUND FUND FUND ----------------------------------------------------------------------------------------------- Additions: Contributions: Participants $50,103 $ 51,146 $ 14,544 $ 32,387 $ 73,847 $ 50,340 $ 69,056 $ 26,802 Crowley, Milner & Co. 14,996 19,922 4,284 6,515 16,035 10,692 10,753 4,742 ----------------------------------------------------------------------------------------------- 65,099 71,068 18,828 38,902 89,882 61,032 79,809 31,544 Interest and dividend income 1,092 5,902 7,325 7,173 98,406 63,999 32,895 26,195 ----------------------------------------------------------------------------------------------- 66,191 76,970 26,153 46,075 188,288 125,031 112,704 57,739 Deductions: Participants' accounts distributed upon withdrawal Fees Other (additions) (2,039) (10,172) (897) (1,539) (2,852) (1,409) (3,257) (1,080) ----------------------------------------------------------------------------------------------- 68,230 87,142 27,050 47,614 191,140 126,440 115,961 58,819 Realized and unrealized gain on investment (1,156) 3,449 (55,742) (98,891) (910) (50,114) Transfers 454,822 473,879 629,972 1,018,014 1,031,814 1,159,702 259,864 ----------------------------------------------------------------------------------------------- Net increase (decrease) 68,230 541,964 499,773 681,035 1,153,412 1,059,363 1,274,753 268,569 Assets available for benefits beginning of year Transfers in from Steinbach 401(k) plan 299,373 411,171 1,584,946 ----------------------------------------------------------------------------------------------- Assets available for benefits end of year $68,230 $541,964 $499,773 $681,035 $1,452,785 $1,470,534 $2,859,699 $268,569 ================================================================================================ FUND INFORMATION ----------------------------------------------------------- CROWLEY STEINBACH DEFINED FROZEN FROZEN BENEFIT CROWLEY G.I.C. G.I.C. G.I.C. STOCK FUND FUND FUND LOAN ----------------------------------------------------------- Additions: Contributions: Participants $ 27,773 Crowley, Milner & Co. 60,522 ----------------------------------------------------------- 88,295 Interest and dividend income $ 14,553 $ 101,528 $ 31,448 ----------------------------------------------------------- 88,295 14,553 101,528 31,448 Deductions: Participants' accounts distributed upon withdrawal 23,570 Fees Other (additions) 78,641 $ 25,403 ----------------------------------------------------------- (13,916) 14,553 101,528 31,448 (25,403) Realized and unrealized gain on investment 3,193 Transfers (144,441) 1,063,671 1,486,554 144,804 ----------------------------------------------------------- Net increase (decrease) (25,164) 1,078,224 101,528 1,518,002 119,401 Assets available for benefits beginning of year 247,836 Transfers in from Steinbach 401(k) plan 3,218,168 101,776 ----------------------------------------------------------- Assets available for benefits end of year $222,672 $1,078,224 $3,319,696 $1,518,002 $221,177 ===========================================================
5 9 Crowley's/Steinbach 401(k) Plan Statement of Changes in Assets Available for Benefits, with Fund Information (continued)
FUND INFORMATION ---------------------------------------------------------------------------------------------------- G.I.C. ROYAL COLLECTIVE GOVERNMENT INTERMEDIATE EQUITY EQUITY INTERNATIONAL LOAN/ MACCABEE'S SAFTY +=1, SECURITIES BOND INCOME GROWTH EQUITY PROCESSING SAFTY +#2 #2 FUND FUND FUND FUND INDEX FUND FUND FUND ----------------------------------------------------------------------------------------------------- Additions: Contributions: Participants $ 32,252 $ 29,244 $ 52,150 $ 60,035 $ 16,433 $ 67,595 Crowley, Milner & Co. 4,891 2,978 5,064 6,240 1,650 8,260 ----------------------------------------------------------------------------------------------------- 37,143 32,222 57,214 66,275 18,083 75,855 Interest and dividend income $ 2,950 43,740 $ 100,384 ----------------------------------------------------------------------------------------------------- 37,143 32,222 57,214 66,275 18,083 2,950 119,595 100,384 Deductions: Participants' accounts distributed upon withdrawal 84,029 129,385 192,279 226,534 20,473 27,947 189,848 272,628 Fees 2,350 2,853 4,772 5,585 538 3,301 Other (additions) 1,500 5,463 4,536 5,433 (486) (19,865) 49,509 ----------------------------------------------------------------------------------------------------- (50,736) (105,479) (144,373) (171,277) (2,442) (5,132) (123,063) (172,244) Realized and unrealized gain on investment 29,931 35,344 178,963 278,184 19,582 Transfers (527,561) (604,398) (1,127,675) (1,365,955) (187,905) (139,672) (1,180,560) (1,486,555) ----------------------------------------------------------------------------------------------------- Net increase (decrease) (548,366) (674,533) (1,093,085) (1,259,048) (170,765) (144,804) (1,303,623) (1,658,799) Assets available for benefits beginning of year 548,366 674,533 1,093,085 1,259,048 170,765 144,804 1,303,623 1,658,799 Transfers in from Steinbach 401(k) plan ----------------------------------------------------------------------------------------------------- Assets available for benefits end of year $ - $ - $ - $ - $ - $ - $ - $ - ===================================================================================================== FUND INFORMATION ------------------------ S&P MONEY 500 MARKET FUND FUND TOTAL ------------------------------------ Additions: Contributions: Participants $ 35,469 $ 17,296 $ 706,472 Crowley, Milner & Co. 3,856 20,490 201,890 ------------------------------------ 39,325 37,786 908,362 Interest and dividend income 13,214 550,804 ------------------------------------ 39,325 51,000 1,459,166 Deductions: Participants' accounts distributed upon withdrawal 129,964 47,316 1,338,973 Fees 2,990 1,537 23,926 Other (additions) 1,281 2,945 131,115 ------------------------------------ (89,910) (798) (34,848) Realized and unrealized gain on investment 167,135 508,968 Transfers (721,890) (336,483) ------------------------------------ Net increase (decrease) (644,665) (367,281) 474,120 Assets available for benefits beginning of year 644,665 367,281 8,112,805 Transfers in from Steinbach 401(k) plan 5,615,435 ------------------------------------ Assets available for benefits end of year $ - $ - $14,202,360 ====================================
6 10 Crowley's/Steinbach 401(k) Plan Statement of Changes in Assets Available for Benefits, with Fund Information Year ended December 31, 1996
FUND INFORMATION ------------------------------------------------------------------------------------------- ROYAL GOVERNMENT INTERMEDIATE EQUITY EQUITY INTERNATIONAL LOAN/ MACCABEE'S SECURITIES BOND INCOME GROWTH EQUITY PROCESSING SAFTY + #2 FUND FUND FUND FUND INDEX FUND FUND ------------------------------------------------------------------------------------------- Additions: Contributions: Participants $ 53,496 $ 53,300 $ 79,967 $ 85,154 $ 18,232 $ 112,383 Crowley, Milner and Company 23,372 17,565 28,242 31,415 8,199 49,771 ------------------------------------------------------------------------------------------- 76,868 70,865 108,209 116,569 26,431 162,154 Interest and dividend income $ 10,204 97,845 ------------------------------------------------------------------------------------------- 76,868 70,865 108,209 116,569 26,431 10,204 259,999 Deductions: Participants' accounts distributed upon withdrawal 129,366 87,352 205,630 159,512 10,455 1,629 595,840 Fees 3,259 4,229 6,117 6,635 761 8,087 Other (additions) (126) (13,571) ------------------------------------------------------------------------------------------- 132,625 91,581 211,747 166,147 11,216 1,503 590,356 Realized and unrealized gain on investments 21,520 24,279 138,297 184,666 15,191 Transfers (7,429) (128,009) (92,591) 42,078 27,954 (16,753) 7,379 ------------------------------------------------------------------------------------------- Net increase (decrease) (41,666) (124,446) (57,832) 177,166 58,360 (8,052) (322,978) Assets available for benefits beginning of year 590,032 798,979 1,150,917 1,081,882 112,405 152,856 1,626,601 ------------------------------------------------------------------------------------------- Assets available for benefits end of year $ 548,366 $ 674,533 $1,093,085 $1,259,048 $ 170,765 $ 144,804 $1,303,623 =========================================================================================== FUND INFORMATION ----------------------------------------------- G.I.C. COLLECTIVE S&P MONEY SAFTY + #1, 500 MARKET CROWLEY #2 FUND FUND FUND STOCK TOTAL -------------------------------------------------------------- Additions: Contributions: Participants $ 43,606 $ 33,796 $ 18,663 $ 498,597 Crowley, Milner and Company 18,454 22,960 42,030 242,008 -------------------------------------------------------------- 62,060 56,756 60,693 740,605 Interest and dividend income $ 165,260 788 274,097 -------------------------------------------------------------- 165,260 62,060 56,756 61,481 1,014,702 Deductions: Participants' accounts distributed upon withdrawal 404,575 170,115 57,746 11,475 1,833,695 Fees 2,967 2,401 34,456 Other (additions) (867) (14,564) -------------------------------------------------------------- 404,575 173,082 60,147 10,608 1,853,587 Realized and unrealized gain on investments 120,033 19,892 59,232 583,110 Transfers 137,120 (15,328) 45,579 -------------------------------------------------------------- Net increase (decrease) (239,315) 146,131 893 155,684 (255,775) Assets available for benefits beginning of year 1,898,114 498,534 366,108 92,152 8,368,580 -------------------------------------------------------------- Assets available for benefits end of year $1,658,799 $ 644,665 $ 367,281 $ 247,836 $8,112,805 ==============================================================
See accompanying notes. 7 11 Crowley's/Steinbach 401(k) Plan Notes to Financial Statements December 31, 1997 1. DESCRIPTION OF THE PLAN Crowley's/Steinbach 401(k) Plan (the Plan) is a voluntary, defined contribution plan established February 1, 1984 covering all eligible employees of Crowley, Milner and Company and Steinbach Stores, Inc., its wholly-owned subsidiary (the Company). Effective October 1, 1997, the Company's Board of Directors amended and restated the Plan, previously known as the Crowley, Milner & Company Profit Sharing Plan. The amendment provided for the merger of another pension plan of the Company into the Plan. In addition, distributions to Plan participants were suspended from October 1, 1997 to January 15, 1998. The amended and restated plan also provided for a change in trustees and available participant investment fund options. Information about the Plan agreement and the vesting and benefit provisions is contained in the Summary Plan Description, copies of which are available from the human resource office of the Company. Eligible employees may make annual contributions to the Plan up to the lesser of 20% of compensation or the maximum amount as allowed by Internal Revenue Code of 1986 (the Code). The Company contributes to employee accounts as stipulated in the Plan. The Company has the right to amend or terminate the Plan at any time. In the event the Plan is terminated, all participants' accounts become fully vested and nonforfeitable. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The fair value of the participation units owned by the Plan in the Royal Maccabees Life Insurance Company (RMLK) separate accounts represent their net asset values on the last business day of the Plan year. The fair value of the Company's stock is valued at the last reported sales price on the last business day of the Plan year. 8 12 Crowley's/Steinbach 401(k) Plan Notes to Financial Statements (continued) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) The Royal Maccabees Life Insurance Company guaranteed investment contract is invested in the Bankers Trust Company - Pyramid Open End GIC Fund and Treasury Yield Plus (SAFTY Funds) at a guaranteed effective annual rate of interest for a specified period of time. The investments held in the MFS family of funds are valued at the net asset values on the last business day of the Plan year. Administrative expenses incurred are borne by the Company, and fees associated with the funds are borne by the participants. USE OF ESTIMATES The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. Estimates also affect the reported amounts of additions and deductions during the reporting period. Actual results could differ from those estimates. 3. TAX STATUS The Internal Revenue Service (IRS) had ruled favorably on the Plan in its form prior to its 1997 restatement. The IRS has not yet ruled on the Plan as restated. The Plan sponsor has requested a letter from the IRS that the Plan, as restated, qualifies under section 401(a) of the Code and the related trust therefore, is not subject to tax under present income tax laws. The Plan is required to operate in conformity with the Code to maintain its qualification. The Company is not aware of any course of action or series of events that have occurred that might adversely affect the Plan's qualified status. 9 13 Crowley's/Steinbach 401(k) Plan Notes to Financial Statements (continued) 4. YEAR 2000 (UNAUDITED) The Company has a plan to modify its internal information technology to be ready for the year 2000 and has begun converting critical data processing systems. The Company currently expects the project to be substantially complete by August 1998. The Company does not expect this project to have a significant effect on the Plan's operations. The project also includes determining whether third party service providers have reasonable plans in place to become year 2000 compliant. 5. COMMITMENTS AND CONTINGENCIES As described in Note 1, Description of the Plan, the assets of the Savings and Profit Sharing Retirement Plan of Steinbach Stores, Inc. were merged into the Plan during 1997. The former trustee and recordkeeper has alleged that an error occurred in the settlement process and has requested that the Plan return approximately $180,000. In response, Plan management has requested that the former trustee and recordkeeper provide a detailed reconciliation of the alleged error. At this time, the former trustee and recordkeeper has not provided any detail supporting the allegation, and as a result, Plan management has made no accrual in the Plan financial statements. 10 14 Crowley's/Steinbach 401(k) Plan EIN 38-0454910 Plan # 002 Item 27a - Schedule of Assets Held for Investment Purposes December 31, 1997
DESCRIPTION OF INVESTMENT INCLUDING IDENTITY OF ISSUE, BORROWER, MATURITY DATE, RATE OF INTEREST, CURRENT LESSOR OR SIMILAR PARTY COLLATERAL, PAR OR MATURITY VALUE COST VALUE - ------------------------------------------------------------------------------------------------------------------------------- MFS Fixed Fund Fixed Fund Account--39,414 units ** $ 39,415 MFS Money Market Fund Money Market Fund Account--508,554 units ** 508,554 MFS Government Limited Maturity Fund Government Limited Maturity Fund Account--58,499 units ** 491,391 MFS Bond Fund Bond Fund Account--48,836 units ** 665,141 Massachusetts Investors Trust Fund Investors Trust Fund Account--80,766 units ** 1,445,776 MFS Research Fund Research Fund Account--67,903 units ** 1,445,661 Vanguard Index Trust--500 Fund Trust-500 Fund Account--31,412 units ** 2,829,270 Templeton Foreign Fund Foreign Fund Account--25,717 units ** 255,879 Crowley Frozen GIC Fund Frozen GIC Account--107,822 units ** 1,078,224 Steinbach Frozen GIC Fund Frozen GIC Account--331,970 units ** 3,319,696 Defined Benefit - GIC Fund Defined Benefit GIC Fund Account--151,800 units ** 1,518,002 *Crowley, Milner and Company Crowley Milner and Company Stock--26,739 shares ** 218,030 Participant Loans Various Loans (rate of interest 8%-9%) - 221,177
There were no investment assets reportable as acquired and disposed of during the year. The cost to acquire participant loans was zero. In addition, there were no proceeds of disposition related to participant loans. *Party-in-interest. **Trustee does not track cost. 11 15 Crowley's/Steinbach 401(k) Plan EIN 38-0454910 Plan # 002 Item 27d - Schedule of Reportable Transactions Year ended December 31, 1997
DESCRIPTION OF ASSET (INCLUDING INTEREST RATE AND MATURITY IN PURCHASE SELLING LEASE IDENTITY OF PARTY INVOLVED CASE OF A LOAN) PRICE PRICE RENTAL - ----------------------------------------------------------------------------------------------------------------------- Category i) A single transaction within the plan year in excess of 5% of the current value of the plan assets: Royal Maccabees Life Insurance Company Intermediate Bond Fund 36,547 shares sold $ 629,972 Government Securities Fund 31,579 shares sold 473,879 S&P 500 Fund 13,009 shares sold 1,159,702 Equity Income Fund 17,093 of shares sold 1,018,014 Equity Growth Fund 17,755 of shares sold 1,031,814 Money Market Fund 15,045 shares sold 438,024 Safty Fund 783,048 CURRENT EXPENSE VALUE OF DESCRIPTION OF ASSET (INCLUDING INCURRED COST ASSET ON NET INTEREST RATE AND MATURITY IN WITH OF TRANSACTION GAIN IDENTITY OF PARTY INVOLVED CASE OF A LOAN) TRANSACTION ASSET DATE (LOSS) - ----------------------------------------------------------------------------------------------------------------------------------- Category i) A single transaction within the plan year in excess of 5% of the current value of the plan assets: Royal Maccabees Life Insurance Company Intermediate Bond Fund 36,547 shares sold $ 629,972 * Government Securities Fund 31,579 shares sold 473,879 * S&P 500 Fund 13,009 shares sold 1,159,702 * Equity Income Fund 17,093 of shares sold 1,018,014 * Equity Growth Fund 17,755 of shares sold 1,031,814 * Money Market Fund 15,045 shares sold 438,024 * Safty Fund 783,048 *
12 16 Crowley's/Steinbach 401(k) Plan EIN 38-0454910 Plan #002 Item 27d - Schedule of Reportable Transactions (continued)
DESCRIPTION OF ASSET (INCLUDING INTEREST RATE AND MATURITY IN PURCHASE SELLING LEASE IDENTITY OF PARTY INVOLVED CASE OF A LOAN) PRICE PRICE RENTAL - --------------------------------------------------------------------------------------------------------------------- Category i) A single transaction within the plan year in excess of 5% of the current value of the plan assets--continued: MFS Money Market Fund MFS Money Market Fund 2,619,426 shares purchased at $1/share $2,619,426 MFS Government Limited MFS Government Limited Maturity Fund Maturity Fund 56,280 shares purchased at $8.42/share 473,879 MFS Bond Fund MFS Bond Fund 46,492 shares purchased at $13.55/share 629,972 Massachusetts Investors Trust Massachusetts Investors Trust 55,599 shares purchased at $18.31/share 1,018,014 MFS Research Fund MFS Research Fund 45,116 shares purchased at $22.87 share 1,031,814 Vanguard Index Trust Vanguard Index Trust 12,900 shares purchased at $89.90/share 1,159,702 Vanguard Index Trust 17,548 shares purchased at $90.32/share 1,584,946 CURRENT EXPENSE VALUE OF DESCRIPTION OF ASSET (INCLUDING INCURRED COST ASSET ON NET INTEREST RATE AND MATURITY IN WITH OF TRANSACTION GAIN IDENTITY OF PARTY INVOLVED CASE OF A LOAN) TRANSACTION ASSET DATE (LOSS) - ---------------------------------------------------------------------------------------------------------------------------------- Category i) A single transaction within the plan year in excess of 5% of the current value of the plan assets--continued: MFS Money Market Fund MFS Money Market Fund 2,619,426 shares purchased at $1/share $2,619,426 $2,619,426 MFS Government Limited MFS Government Limited Maturity Fund Maturity Fund 56,280 shares purchased at $8.42/share 473,879 473,879 MFS Bond Fund MFS Bond Fund 46,492 shares purchased at $13.55/share 629,972 629,972 Massachusetts Investors Trust Massachusetts Investors Trust 55,599 shares purchased at $18.31/share 1,018,014 1,018,014 MFS Research Fund MFS Research Fund 45,116 shares purchased at $22.87 share 1,031,814 1,031,814 Vanguard Index Trust Vanguard Index Trust 12,900 shares purchased at $89.90/share 1,159,702 1,159,702 Vanguard Index Trust 17,548 shares purchased at $90.32/share 1,584,946 1,584,946
13 17 Crowley's/Steinbach 401(k) Plan EIN 38-0454910 Plan #002 Item 27d - Schedule of Reportable Transactions (continued)
DESCRIPTION OF ASSET (INCLUDING INTEREST RATE AND MATURITY IN PURCHASE SELLING LEASE IDENTITY OF PARTY INVOLVED CASE OF A LOAN) PRICE PRICE RENTAL - ----------------------------------------------------------------------------------------------------------------------- Category i) A single transaction within the plan year in excess of 5% of the current value of the plan assets--continued: MFS Money Market Fund MFS Money Market Fund 1,584,946 shares sold at $1.00/share $1,584,946 MFS Money Market Fund MFS Money Market Fund 783,048 shares sold at $1.00/share 783,048 MFS Fixed Fund MFS Fixed Fund 783,048 shares purchased at $1.00/share $ 783,048 Category iii) A series of transactions involving securities of the same issue which, when aggregated, involve an amount in excess of 5% of the current value of plan assets: Royal Maccabees Life Insurance Company Intermediate Bond Fund 41 purchases 135,995 62 sales 828,088 Government Securities Fund 39 purchases 95,820 62 sales 652,333 CURRENT EXPENSE VALUE OF DESCRIPTION OF ASSET (INCLUDING INCURRED COST ASSET ON NET INTEREST RATE AND MATURITY IN WITH OF TRANSACTION GAIN IDENTITY OF PARTY INVOLVED CASE OF A LOAN) TRANSACTION ASSET DATE (LOSS) - ----------------------------------------------------------------------------------------------------------------------------------- Category i) A single transaction within the plan year in excess of 5% of the current value of the plan assets--continued: MFS Money Market Fund MFS Money Market Fund 1,584,946 shares sold at $1.00/share $1,584,946 * MFS Money Market Fund MFS Money Market Fund 783,048 shares sold at $1.00/share 783,048 * MFS Fixed Fund MFS Fixed Fund 783,048 shares purchased at $1.00/share $ 783,048 783,048 Category iii) A series of transactions involving securities of the same issue which, when aggregated, involve an amount in excess of 5% of the current value of plan assets: Royal Maccabees Life Insurance Company Intermediate Bond Fund 41 purchases 135,995 135,995 62 sales 828,088 * Government Securities Fund 39 purchases 95,820 95,820 62 sales 652,333 *
14 18 Crowley's/Steinbach 401(k) Plan EIN 38-0454910 Plan #002 Item 27d - Schedule of Reportable Transactions (continued)
DESCRIPTION OF ASSET (INCLUDING INTEREST RATE AND MATURITY IN PURCHASE SELLING LEASE IDENTITY OF PARTY INVOLVED CASE OF A LOAN) PRICE PRICE RENTAL - ---------------------------------------------------------------------------------------------------------------------- Category iii) A series of transactions involving securities of the same issue which, when aggregated, involve an amount in excess of 5% of the current value of plan assets--continued: Royal Maccabees Life Insurance Company--continued S&P 500 Fund 37 purchases $ 574,360 88 sales $1,366,152 Equity Income Fund 44 purchases 212,973 104 sales 1,455,857 Equity Growth Fund 42 purchases 152,439 102 sales 1,656,467 Money Market Fund 40 purchases 176,019 105 sales 535,478 SAFTY+ #2 82 sales 82,528 CURRENT EXPENSE VALUE OF DESCRIPTION OF ASSET (INCLUDING INCURRED COST ASSET ON NET INTEREST RATE AND MATURITY IN WITH OF TRANSACTION GAIN IDENTITY OF PARTY INVOLVED CASE OF A LOAN) TRANSACTION ASSET DATE (LOSS) - ------------------------------------------------------------------------------------------------------------------------------------ Category iii) A series of transactions involving securities of the same issue which, when aggregated, involve an amount in excess of 5% of the current value of plan assets--continued: Royal Maccabees Life Insurance Company--continued S&P 500 Fund 37 purchases $ 574,360 $ 574,360 88 sales 1,366,152 * Equity Income Fund 44 purchases 212,973 212,973 104 sales 1,455,857 * Equity Growth Fund 42 purchases 152,439 152,439 102 sales 1,656,467 * Money Market Fund 40 purchases 176,019 176,019 105 sales 535,478 * SAFTY+ #2 82 sales 82,528 *
15 19 Crowley's/Steinbach 401(k) Plan EIN 38-0454910 Plan #002 Item 27d - Schedule of Reportable Transactions (continued)
EXPENSE DESCRIPTION OF ASSET (INCLUDING INCURRED INTEREST RATE AND MATURITY IN PURCHASE SELLING LEASE WITH IDENTITY OF PARTY INVOLVED CASE OF A LOAN) PRICE PRICE RENTAL TRANSACTION - ------------------------------------------------------------------------------------------------------------------------------------ Category iii) A series of transactions involving securities of the same issue which, when aggregated, involve an amount in excess of 5% of the current value of plan assets--continued: Royal Maccabees Life Insurance Company--continued SAFTY+ #3 81 sales $ 113,563 SAFTY+ #4 81 sales 93,690 SAF-TR #5 3 purchases 10,203 80 sales 75,063 Short-term Investment Fund 58 purchases $ 697,660 55 sales 1,334,959 MFS Money Market Fund MFS Money Market Fund 12 purchases 3,920,619 7 sales 3,412,065 MFS Fixed Fund MFS Fixed Fund 18 purchases 1,536,544 CURRENT VALUE OF DESCRIPTION OF ASSET (INCLUDING COST ASSET ON NET INTEREST RATE AND MATURITY IN OF TRANSACTION GAIN IDENTITY OF PARTY INVOLVED CASE OF A LOAN) ASSET DATE (LOSS) - ---------------------------------------------------------------------------------------------------------------------- Category iii) A series of transactions involving securities of the same issue which, when aggregated, involve an amount in excess of 5% of the current value of plan assets--continued: Royal Maccabees Life Insurance Company--continued SAFTY+ #3 81 sales $ 113,563 * SAFTY+ #4 81 sales 93,690 * SAF-TR #5 3 purchases $ 10,203 10,203 80 sales 75,063 * Short-term Investment Fund 58 purchases 697,660 697,660 55 sales 1,334,959 * MFS Money Market Fund MFS Money Market Fund 12 purchases 3,920,619 3,920,619 7 sales 3,412,065 * MFS Fixed Fund MFS Fixed Fund 18 purchases 1,536,544 1,536,544
16 20 Crowley's/Steinbach 401(k) Plan EIN 38-0454910 Plan #002 Item 27d - Schedule of Reportable Transactions (continued)
EXPENSE DESCRIPTION OF ASSET (INCLUDING INCURRED INTEREST RATE AND MATURITY IN PURCHASE SELLING LEASE WITH IDENTITY OF PARTY INVOLVED CASE OF A LOAN) PRICE PRICE RENTAL TRANSACTION - ----------------------------------------------------------------------------------------------------------------------------------- Category iii) A series of transactions involving securities of the same issue which, when aggregated, involve an amount in excess of 5% of the current value of plan assets--continued: MFS Government Limited MFS Government Limited Maturity Maturity Fund Fund 7 purchases $ 492,548 MFS Bond Fund 6 purchases 661,691 Massachusetts Investors Trust Massachusetts Investors Trust 8 purchases 1,470,755 MFS Research Fund MFS Research Fund 8 purchases 1,544,553 Vanguard Index Trust Vanguard Index Trust 17 purchases 2,883,437 2 sales $ 3,257 CURRENT VALUE OF DESCRIPTION OF ASSET (INCLUDING COST ASSET ON NET INTEREST RATE AND MATURITY IN OF TRANSACTION GAIN IDENTITY OF PARTY INVOLVED CASE OF A LOAN) ASSET DATE (LOSS) - ----------------------------------------------------------------------------------------------------------------------- Category iii) A series of transactions involving securities of the same issue which, when aggregated, involve an amount in excess of 5% of the current value of plan assets--continued: MFS Government Limited MFS Government Limited Maturity Maturity Fund Fund 7 purchases $ 492,548 $ 492,548 MFS Bond Fund 6 purchases 661,691 661,691 Massachusetts Investors Trust Massachusetts Investors Trust 8 purchases 1,470,755 1,470,755 MFS Research Fund MFS Research Fund 8 purchases 1,544,553 1,544,553 Vanguard Index Trust Vanguard Index Trust 17 purchases 2,833,437 2,833,437 2 sales 3,257 *
There were no category ii) or iv) reportable transactions. *Trustee does not track cost. 17 21 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, Crowley, Milner and Company, as the employer-sponsor of the Plan, has duly caused this annual report to be signed on its behalf by the undersigned thereunto duly authorized. CROWLEY'S/STEINBACH 401(K) PLAN By: CROWLEY, MILNER AND COMPANY By: /s/ John R. Dallacqua ------------------------------ John R. Dallacqua, Vice President-Finance Dated: July 10, 1998 22 EXHIBIT INDEX Exhibit No. Description 23 Consent of Independent Auditors. EX-23 2 EX-23 1 EXHIBIT 23 Consent of Independent Auditors We consent to the incorporation by reference in the Registration Statement (Form S-8 No. 33-61207) pertaining to the Crowley's/Steinbach 401(k) Plan of Crowley, Milner and Company of our report dated June 26, 1998, with respect to the financial statements and schedules of the Crowley, Milner and Company Profit Sharing Plan included in this Annual Report (Form 11-K) for the year ended December 31, 1997. /s/ ERNST & YOUNG LLP Detroit, Michigan June 29, 1998 -----END PRIVACY-ENHANCED MESSAGE-----