-----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, EE4+0koQDc1RRIOJDaINTqPNw1kn30+iN01IeraueiZHraYWVeJx93So1b4+UgS5 OhsVsUGSwrplYCv0qUgzrQ== 0000950144-99-009462.txt : 19990809 0000950144-99-009462.hdr.sgml : 19990809 ACCESSION NUMBER: 0000950144-99-009462 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19981231 FILED AS OF DATE: 19990802 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CROWN CRAFTS INC CENTRAL INDEX KEY: 0000025895 STANDARD INDUSTRIAL CLASSIFICATION: BROADWOVEN FABRIC MILLS, COTTON [2211] IRS NUMBER: 580678148 STATE OF INCORPORATION: GA FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 11-K SEC ACT: SEC FILE NUMBER: 002-29496 FILM NUMBER: 99676154 BUSINESS ADDRESS: STREET 1: 1600 RIVEREDGE PKWY STE 200 CITY: ATLANTA STATE: GA ZIP: 30328 BUSINESS PHONE: 7706446400 11-K 1 CROWN CRAFTS, INC. 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 For the fiscal year ended December 31, 1998 ----------------- OR [ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______________ to _____________ Commission file number 033-64499 A. Full title of the plan and address of the plan, if different from that of the insurer named below: Crown Crafts, Inc. 401(k) Retirement Savings Plan B. Name of issuer of the securities held pursuant to the plan and the address of its principal executive office: Crown Crafts, Inc. 1600 RiverEdge Parkway Suite 200 Atlanta, Georgia 30328 2 THE CROWN CRAFTS, INC. 401(k) RETIREMENT SAVINGS PLAN FINANCIAL STATEMENTS AND AUDIT REPORT DECEMBER 31, 1998 3 THE CROWN CRAFTS, INC. 401(k) RETIREMENT SAVINGS PLAN CONTENTS - -------------------------------------------------------------------------------- REPORT OF INDEPENDENT ACCOUNTANTS 1 STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION 2/6 STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION 7/10 NOTES TO FINANCIAL STATEMENTS 11/15 SUPPLEMENTAL SCHEDULES Schedule of Assets Held for Investment Purposes 17 Schedule of Reportable Transactions 18/20
4 A GEORGIA LIMITED LIABILITY COMPANY PRIVATE COMPANIES PRACTICE SECTION MEMBER AICPA DIVISION FOR CPA FIRMS SEC PRACTICE SECTION
REPORT OF INDEPENDENT ACCOUNTANTS The Administrative Committee The Crown Crafts, Inc. 401(k) Retirement Savings Plan Atlanta, Georgia We have audited the statements of net assets available for benefits with fund information of The Crown Crafts, Inc. 401(k) Retirement Savings Plan (the Plan) as of December 31, 1998 and 1997, and the related statement of changes in net assets available for benefits with fund information for the year ended December 31, 1998. These financial statements are the responsibility of the Administrative Committee. 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 of the Plan as of December 31, 1998 and 1997, and the changes in its net assets available for benefits for the year ended December 31, 1998, in conformity with generally accepted accounting principles. Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedules of assets held for investment purposes and of reportable transactions are presented for purposes 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 respects in relation to the basic financial statements taken as a whole. JOSEPH DECOSIMO AND COMPANY, LLP A GEORGIA LIMITED LIABILITY COMPANY Atlanta, Georgia July 9, 1999 1 5 THE CROWN CRAFTS, INC. 401(k) RETIREMENT SAVINGS PLAN STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION DECEMBER 31, 1998 - --------------------------------------------------------------------------------
ASSET ASSET ASSET DIVERSIFIED ALLOCATION ALLOCATION ALLOCATION INCOME CONSERVATIVE BALANCED GROWTH TRUST PORTFOLIO PORTFOLIO PORTFOLIO ASSETS Investments, at fair value - Short-Term Investments $ -- $ -- $ -- $ -- Crown Crafts, Inc. Common Stock -- -- -- -- Mutual Funds 10,884 427,902 823,540 2,383,466 Participant Loans -- -- -- -- -------- -------- ---------- ---------- 10,884 427,902 823,540 2,383,466 Receivables - Sponsor's Contributions -- -- -- -- Participants' Contributions -- -- -- -- -------- -------- ---------- ---------- NET ASSETS AVAILABLE FOR BENEFITS $ 10,884 $427,902 $ 823,540 $2,383,466 ======== ======== ========== ==========
2 6
INTERNATIONAL NEW STABLE CROWN CRAFTS, GROWTH VOYAGER OPPORTUNITIES VALUE INC. FUND FUND FUND FUND COMMON STOCK ASSETS Investments, at fair value - Short-Term Investments $ -- $ -- $ -- $ -- $ 22,672 Crown Crafts, Inc. Common Stock -- -- -- -- 159,548 Mutual Funds 30,400 70,863 2,070,803 652,203 -- Participant Loans -- -- -- -- -- ------- -------- ---------- -------- -------- 30,400 70,863 2,070,803 652,203 182,220 Receivables - Sponsor's Contributions -- -- -- -- -- Participants' Contributions -- -- -- -- -- ------- -------- ---------- -------- -------- NET ASSETS AVAILABLE FOR BENEFITS $30,400 $ 70,863 $2,070,803 $652,203 $182,220 ======= ======== ========== ======== ========
3 7 THE CROWN CRAFTS, INC. 401(k) RETIREMENT SAVINGS PLAN STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION DECEMBER 31, 1998 - --------------------------------------------------------------------------------
PARTICIPANT LOANS OTHER TOTAL ASSETS Investments, at fair value - Short-Term Investments $ -- $ -- $ 22,672 Crown Crafts, Inc. Common Stock -- -- 159,548 Mutual Funds -- -- 6,470,061 Participant Loans 59,947 -- 59,947 ------- -------- ---------- 59,947 -- 6,712,228 Receivables - Sponsor's Contributions -- 295,099 295,099 Participants' Contributions -- 236,046 236,046 ------- -------- ---------- NET ASSETS AVAILABLE FOR BENEFITS $59,947 $531,145 $7,243,373 ======= ======== ==========
4 8 THE CROWN CRAFTS, INC. 401(k) RETIREMENT SAVINGS PLAN STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION DECEMBER 31, 1997 - --------------------------------------------------------------------------------
AGGRESSIVE CROWN CRAFTS LIFE LIFE GROWTH INC. STAGE I STAGE II PORTFOLIO COMMON STOCK PORTFOLIO PORTFOLIO ASSETS Investments, at fair value - Short-Term Investments $ 770 $ 2,581 $ 3,174 $ 3,701 Crown Crafts, Inc. Common Stock -- 189,703 -- -- Mutual Funds 893,931 -- 621,729 608,304 Participant Loans -- -- -- -- ---------- -------- -------- -------- 894,701 192,284 624,903 612,005 Receivables - Sponsor's Contributions 29,269 5,532 27,028 24,957 Participants' Contributions 22,851 7,428 28,429 24,532 Accrued Interest and Dividends 184,336 20 30,463 28,478 ---------- -------- -------- -------- Total Assets 1,131,157 205,264 710,823 689,972 LIABILITIES Due to Brokers 183,306 -- 30,426 28,444 ---------- -------- -------- -------- NET ASSETS AVAILABLE FOR BENEFITS $ 947,851 $205,264 $680,397 $661,528 ========== ======== ======== ========
The accompanying notes are an integral part of the financial statements. 5 9
LIFE LIFE STABLE STAGE III STAGE IV VALUE PARTICIPANT PORTFOLIO PORTFOLIO PORTFOLIO LOANS TOTAL ASSETS Investments, at fair value - Short-Term Investments $ 461 $ 2,665 $ 2,710 $ 4 $ 16,066 Crown Crafts, Inc. Common Stock -- -- -- -- 189,703 Mutual Funds 420,942 261,802 519,135 -- 3,325,843 Participant Loans -- -- -- 17,655 17,655 -------- -------- -------- ------- ---------- 421,403 264,467 521,845 17,659 3,549,267 Receivables - Sponsor's Contributions 12,674 9,514 7,871 -- 116,845 Participants' Contributions 14,391 4,209 7,005 -- 108,845 Accrued Interest and Dividends 18,813 10,904 12 -- 273,026 -------- -------- -------- ------- ---------- Total Assets 467,281 289,094 536,733 17,659 4,047,983 LIABILITIES Due to Brokers 18,793 10,889 -- -- 271,858 -------- -------- -------- ------- ---------- NET ASSETS AVAILABLE FOR BENEFITS $448,488 $278,205 $536,733 $17,659 $3,776,125 ======== ======== ======== ======= ==========
6 10 THE CROWN CRAFTS, INC. 401(k) RETIREMENT SAVINGS PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION YEAR ENDED DECEMBER 31, 1998 - --------------------------------------------------------------------------------
ASSET ASSET ASSET DIVERSIFIED ALLOCATION ALLOCATION ALLOCATION INCOME CONSERVATIVE BALANCED GROWTH TRUST PORTFOLIO PORTFOLIO PORTFOLIO ADDITIONS Investment Income - Net Appreciation (Depreciation) in Fair Value of Investments $ (25) $ 21,760 $ 89,988 $ 314,101 Interest and Dividends 24 10,358 14,643 54,302 -------- -------- -------- ---------- (1) 32,118 104,631 368,403 -------- -------- -------- ---------- Contributions - Sponsor's -- 15,303 52,480 161,558 Rollovers 3,725 7,802 8,357 3,803 Participants' 7,160 28,319 58,696 125,836 -------- -------- -------- ---------- 10,885 51,424 119,533 291,197 -------- -------- -------- ---------- Total Additions 10,884 83,542 224,164 659,600 -------- -------- -------- ---------- DEDUCTIONS Benefits Paid to Participants -- -- -- -- Administrative Expenses -- -- -- -- -------- -------- -------- ---------- Total Deductions -- -- -- -- -------- -------- -------- ---------- NET INCREASE BEFORE INTERFUND TRANSFERS 10,884 83,542 224,164 659,600 Interfund Transfers -- 344,360 599,376 1,723,866 -------- -------- -------- ---------- NET INCREASE (DECREASE) 10,884 427,902 823,540 2,383,466 NET ASSETS AVAILABLE FOR BENEFITS BEGINNING OF YEAR -- -- -- -- -------- -------- -------- ---------- END OF YEAR $ 10,884 $427,902 $823,540 $2,383,466 ======== ======== ======== ==========
The accompanying notes are an integral part of the financial statements. 7 11
INTERNATIONAL NEW STABLE AGGRESSIVE GROWTH VOYAGER OPPORTUNITIES VALUE GROWTH FUND FUND FUND FUND PORTFOLIO ADDITIONS Investment Income - Net Appreciation (Depreciation) in Fair Value of Investments $ 948 $ 2,496 $ 429,333 $ -- $ 41,064 Interest and Dividends 487 4,860 64,171 2,179 866 ------- -------- ---------- -------- ----------- 1,435 7,356 493,504 2,179 41,930 ------- -------- ---------- -------- ----------- Contributions - Sponsor's -- -- 89,404 43,473 52,589 Rollovers 6,942 3,640 7,136 6,647 63,788 Participants' 22,023 59,867 86,543 48,671 330,776 ------- -------- ---------- -------- ----------- 28,965 63,507 183,083 98,791 447,153 ------- -------- ---------- -------- ----------- Total Additions 30,400 70,863 676,587 100,970 489,083 ------- -------- ---------- -------- ----------- DEDUCTIONS Benefits Paid to Participants -- -- 3 -- 120,929 Administrative Expenses -- -- -- -- 9,029 ------- -------- ---------- -------- ----------- Total Deductions -- -- 3 -- 129,958 ------- -------- ---------- -------- ----------- NET INCREASE BEFORE INTERFUND TRANSFERS 30,400 70,863 676,584 100,970 359,125 Interfund Transfers -- -- 1,394,219 551,233 (1,306,976) ------- -------- ---------- -------- ----------- NET INCREASE (DECREASE) 30,400 70,863 2,070,803 652,203 (947,851) NET ASSETS AVAILABLE FOR BENEFITS BEGINNING OF YEAR -- -- -- -- 947,851 ------- -------- ---------- -------- ----------- END OF YEAR $30,400 $ 70,863 $2,070,803 $652,203 $ -- ======= ======== ========== ======== ===========
8 12 THE CROWN CRAFTS, INC. 401(k) RETIREMENT SAVINGS PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION YEAR ENDED DECEMBER 31, 1998 - --------------------------------------------------------------------------------
CROWN CRAFTS, LIFE LIFE LIFE INC. STAGE I STAGE II STAGE III COMMON STOCK PORTFOLIO PORTFOLIO PORTFOLIO ADDITIONS Investment Income - Net Appreciation (Depreciation) in Fair Value of Investments $(118,992) $ 45,209 $ 49,233 $ 28,849 Interest and Dividends 2,188 8,870 15,758 14,128 --------- --------- --------- --------- (116,804) 54,079 64,991 42,977 --------- --------- --------- --------- Contributions - Sponsor's 7,261 33,929 28,533 22,228 Rollovers 14,678 26,393 35,914 15,468 Participants' 88,760 196,755 183,394 138,580 --------- --------- --------- --------- 110,699 257,077 247,841 176,276 --------- --------- --------- --------- Total Additions (6,105) 311,156 312,832 219,253 --------- --------- --------- --------- DEDUCTIONS Benefits Paid to Participants 37,822 68,323 41,560 26,047 Administrative Expenses 1,676 5,930 5,805 3,932 --------- --------- --------- --------- Total Deductions 39,498 74,253 47,365 29,979 --------- --------- --------- --------- NET INCREASE BEFORE INTERFUND TRANSFERS (45,603) 236,903 265,467 189,274 Interfund Transfers 22,559 (917,300) (926,995) (637,762) --------- --------- --------- --------- NET INCREASE (DECREASE) (23,044) (680,397) (661,528) (448,488) NET ASSETS AVAILABLE FOR BENEFITS BEGINNING OF YEAR 205,264 680,397 661,528 448,488 --------- --------- --------- --------- END OF YEAR $ 182,220 $ -- $ -- $ -- ========= ========= ========= =========
The accompanying notes are an integral part of the financial statements. 9 13
LIFE STABLE STAGE IV VALUE PARTICIPANT PORTFOLIO PORTFOLIO LOANS OTHER TOTAL ADDITIONS Investment Income - Net Appreciation (Depreciation) in Fair Value of Investments $ 15,242 $ 11,071 $ -- $ -- $ 930,277 Interest and Dividends 10,972 1,314 -- -- 205,120 --------- --------- ------- -------- ---------- 26,214 12,385 -- -- 1,135,397 --------- --------- ------- -------- ---------- Contributions - Sponsor's 10,329 23,152 -- 295,099 835,338 Rollovers 15,263 518 -- -- 220,074 Participants' 75,348 97,138 -- 236,046 1,783,912 --------- --------- ------- -------- ---------- 100,940 120,808 -- 531,145 2,839,324 --------- --------- ------- -------- ---------- Total Additions 127,154 133,193 -- 531,145 3,974,721 --------- --------- ------- -------- ---------- DEDUCTIONS Benefits Paid to Participants 43,428 136,293 -- -- 474,405 Administrative Expenses 2,415 4,281 -- -- 33,068 --------- --------- ------- -------- ---------- Total Deductions 45,843 140,574 -- -- 507,473 --------- --------- ------- -------- ---------- NET INCREASE BEFORE INTERFUND TRANSFERS 81,311 (7,381) -- 531,145 3,467,248 Interfund Transfers (359,516) (529,352) 42,288 -- -- --------- --------- ------- -------- ---------- NET INCREASE (DECREASE) (278,205) (536,733) 42,288 531,145 3,467,248 NET ASSETS AVAILABLE FOR BENEFITS BEGINNING OF YEAR 278,205 536,733 17,659 -- 3,776,125 --------- --------- ------- -------- ---------- END OF YEAR $ -- $ -- $59,947 $531,145 $7,243,373 ========= ========= ======= ======== ==========
10 14 THE CROWN CRAFTS, INC. 401(k) RETIREMENT SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- PLAN DESCRIPTION The following description of The Crown Crafts, Inc. 401(k) Retirement Savings Plan provides only general information. Participants should refer to the Plan agreement for a more complete description of the Plan's provisions. The Plan is a defined contribution retirement savings plan with a cash or deferred arrangement covering substantially all employees of Crown Crafts, Inc. and affiliates (the sponsor) meeting minimum age and service requirements. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA). The Plan was established effective January 1, 1996, and initial contributions were made into the trust fund in January, 1996. The Plan was amended on September 22, 1997, to provide for the entry of employees of acquired and affiliated companies. The Plan allows contributions by participating employees of an amount equal to not less than 1% and not greater than 15% of their eligible compensation. Matching contributions are made at the discretion of the sponsor. The sponsor matches participants' elective contributions at the rate of 100% of the first 2% and 50% of the next 1% of compensation deferred by each participant. The participants direct their elective contributions and related matching contributions to several investment options. All contributions are limited to the maximum amount deductible under the applicable provisions of the Internal Revenue Code of 1986 (the Code). Each participant's account is credited with the participant's contribution, the sponsor's matching contribution, and earnings thereon less administrative expenses. Each participant has a fully vested, nonforfeitable right to all amounts credited to his account under the elective salary reduction portion of the Plan. Each participant's right in sponsor contributions vests ratably over a five year period. Forfeitures are applied to reduce the sponsor's matching contribution. Upon service or disability retirement, death or termination, the participant or beneficiary will receive a lump-sum amount equal to the value of the participant's vested account. Although it has not expressed any intent to do so, the sponsor has the right under the Plan to discontinue its contributions at any time and to terminate the Plan subject to the provisions of ERISA. In the event of Plan termination, participants will become 100% vested in their accounts. On October 1, 1998, the Plan changed trustees and as of December 31, 1998, it offers participants nine investment options which consist of shares of the sponsor's common stock and eight portfolios of mutual funds managed by Putnam Investments: CROWN CRAFTS, INC. COMMON STOCK - Funds are invested in common stock of Crown Crafts, Inc. PUTNAM DIVERSIFIED INCOME TRUST - Invests in bonds of U.S. and foreign governments and the bonds of U.S. and foreign companies to seek the highest level of current income while preserving capital. PUTNAM ASSET ALLOCATION: CONSERVATIVE PORTFOLIO - The Fund seeks to maximize investment return while preserving capital by investing approximately 35% of total assets in common stocks of U.S. and foreign companies and the remaining assets in both U.S. and foreign government bonds and corporate bonds. 11 15 THE CROWN CRAFTS, INC. 401(k) RETIREMENT SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- PLAN DESCRIPTION - continued PUTNAM ASSET ALLOCATION: BALANCED PORTFOLIO - The Fund seeks to maximize investment return by investing approximately 65% of total assets in common stocks of U.S. and foreign companies and the remaining assets in both U.S. and foreign government bonds and corporate bonds. PUTNAM ASSET ALLOCATION: GROWTH PORTFOLIO - The Fund seeks capital appreciation by investing approximately 80% of total assets in common stocks of U.S. and foreign companies and the remaining assets in both U.S. and foreign government bonds and corporate bonds. PUTNAM INTERNATIONAL GROWTH FUND - The Fund seeks capital appreciation by investing total assets mainly in the common stocks of medium and large-sized companies in developed countries. PUTNAM VOYAGER FUND - The Fund seeks capital appreciation by investing total assets in the common stocks of U.S. and foreign companies. PUTNAM NEW OPPORTUNITIES FUND - Invests primarily in common stocks of companies in particular sectors of the economy and seeks long-term capital appreciation. PUTNAM STABLE VALUE FUND - The Fund seeks high current income while preserving capital and liquidity by investing total assets primarily in guaranteed investment contracts issued by insurance companies, banks and other financial institutions. Prior to October 1, 1998, the plan offered participants seven investment options consisting of shares of the sponsor's common stock and six portfolios of mutual funds managed by an investment advisor: AGGRESSIVE GROWTH PORTFOLIO - Diverse growth-oriented portfolio invested in the stocks of large U.S. companies, small-medium companies and international companies. LIFE STAGE I PORTFOLIO - Invests in common stock of large U.S. companies, small-medium companies and international companies. LIFE STAGE II PORTFOLIO - Invests in common stocks and bonds of small, medium and large U.S. and international companies. LIFE STAGE III PORTFOLIO - Invests in common stock of large U.S. companies, small-medium companies and international companies. LIFE STAGE IV PORTFOLIO - Invests in medium term bonds and the common stocks of small, medium and large U.S. and international companies. STABLE VALUE PORTFOLIO - Invests in a mixture of contracts with major banks and insurance companies which, in turn, invest in high grade bonds. 12 16 THE CROWN CRAFTS, INC. 401(k) RETIREMENT SAVINGS PLAN 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 company stock is valued at its quoted market price. Participant loans are valued at cost which approximates par value. Purchases and sales of securities are recorded on a trade-date basis. Interest income is recorded on the accrual basis. Dividends are recorded on the ex-dividend date. NET APPRECIATION (DEPRECIATION) IN THE FAIR VALUE OF INVESTMENTS - The Plan presents in the statements of changes in net assets available for benefits the net appreciation (depreciation) in the fair value of its investments, which consists of the realized gains (losses) and the unrealized appreciation (depreciation) on those investments. PARTICIPANT LOANS - Participants may borrow from their fund accounts a minimum of $1,000, or such lesser amount as established by the Administrative Committee, up to a maximum equal to the lesser of $50,000 or 50% of their account balance. Loan transactions are treated as a transfer to (from) the investment funds from (to) Participant Loans. Loan terms range up to 5 years or up to 10 years for the purchase of a primary residence. The loans are secured by the balance in the participant's account and bear interest at a rate commensurate with local prevailing rates as determined by the Administrative Committee. Principal and interest are paid ratably through monthly payroll deductions. RISKS AND UNCERTAINTIES - The Plan provides for various investment options in a combination of 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 benefits and the statement of changes in net assets available for benefits. PAYMENT OF BENEFITS - Benefits are recorded when paid. As of December 31, 1998, $175,890 has been allocated to participants who have elected to withdraw from the Plan but have not been paid. FORFEITED ACCOUNTS - As of December 31, 1998, forfeited nonvested accounts totaled $0. These accounts are used to reduce future sponsor contributions. ESTIMATES - The preparation of financial statements in conformity with generally accepted accounting principles requires the Administrative Committee to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results may differ from those estimates. 13 17 THE CROWN CRAFTS, INC. 401(k) RETIREMENT SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- TAX STATUS The Administrative Committee for the sponsor believes the Plan meets the requirements for tax qualification described in Section 401(a) of the Internal Revenue Code of 1986 (the Code). Accordingly, the Plan's related trust is exempt from tax under Section 501(a) of the Code. A favorable determination letter has been received from the Internal Revenue Service on the tax qualification of the Plan as amended through September 22, 1997. Continued qualification of the Plan will depend upon its operation in accordance with applicable requirements of the Code. INVESTMENTS The following table presents the fair value of investments as of December 31, 1998 and 1997:
1998 1997 NUMBER OF NUMBER OF SHARES/UNITS FAIR VALUE SHARES/UNITS FAIR VALUE SHORT-TERM INVESTMENTS Atlanta Money Market -- $ -- 16,066 $ 16,066 TBC Inc. Daily Liquidity Fund 22,672 22,672 -- -- ---------- -------- 22,672 16,066 ---------- -------- COMMON STOCKS Crown Crafts, Inc. 25,786 159,548 12,141 189,703 ---------- -------- MUTUAL FUNDS Diversified Income Trust 950 10,884 -- -- Asset Allocation Conservative Portfolio 41,343 427,902 -- -- Asset Allocation Balanced Portfolio 68,686 823,540 -- -- Asset Allocation Growth Portfolio 176,684 2,383,466 -- -- International Growth Fund 1,590 30,400 -- -- Voyager Fund 3,311 70,863 -- --
14 18 THE CROWN CRAFTS, INC. 401(k) RETIREMENT SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- INVESTMENTS - continued New Opportunities Fund 36,203 $2,070,803 -- $ -- Stable Value Fund 652,203 652,203 -- -- EuroPacific Growth Fund -- -- 10,899 283,584 Federated Max-Cap Fund -- -- 40,879 825,750 Federated Mini-Cap Fund -- -- 11,934 181,875 Stable Value Fund -- -- 27,592 519,135 Dreyfus MidCap Index Fund -- -- 7,375 189,085 PIMCO Total Return -- -- 40,800 432,484 Twentieth Century Ultra -- -- 32,745 893,930 ---------- ---------- 6,470,061 3,325,843 ---------- ---------- PARTICIPANT LOANS 59,947 17,655 ---------- ---------- $6,712,228 $3,549,267 ========== ==========
RELATED PARTY TRANSACTIONS The Plan sponsor paid $56,824 and $74,315 of administrative expenses incurred by the Plan during 1998 and 1997, respectively. 15 19 SUPPLEMENTAL SCHEDULES 20 THE CROWN CRAFTS, INC. 401(k) RETIREMENT SAVINGS PLAN SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES ITEM 27a OF FORM 5500 DECEMBER 31, 1998 EMPLOYER IDENTIFICATION NUMBER: 58-0678148 PLAN NUMBER: 334 - --------------------------------------------------------------------------------
CURRENT IDENTITY OF ISSUER DESCRIPTION OF INVESTMENT COST VALUE SHORT-TERM INVESTMENTS Putnam Investments TCB Inc. Daily Liquidity Fund $ 22,672 $ 22,672 ---------- ---------- COMMON STOCKS Crown Crafts, Inc. Common Stock 158,443 159,548 ---------- ---------- MUTUAL FUNDS Putnam Investments Putnam Diversified Income Trust 10,900 10,884 Putnam Investments Putnam Asset Allocation: Conservative Portfolio 404,946 427,902 Putnam Investments Putnam Asset Allocation: Balanced Portfolio 732,355 823,540 Putnam Investments Putnam Asset Allocation: Growth Portfolio 2,179,340 2,383,466 Putnam Investments Putnam International Growth Fund 29,452 30,400 Putnam Investments Putnam Voyager Fund 68,367 70,863 Putnam Investments Putnam New Opportunities Fund 1,751,448 2,070,803 Putnam Investments Putnam Stable Value Fund 651,007 652,203 ---------- ---------- 5,827,815 6,470,061 ---------- ---------- PARTICIPANT LOANS Participant Loans 9.5% Notes Receivable from Participants -- 59,947 ---------- ---------- TOTAL INVESTMENTS $6,008,930 $6,712,228 ========== ==========
17 21 THE CROWN CRAFTS, INC. 401(k) RETIREMENT SAVINGS PLAN SCHEDULE OF REPORTABLE TRANSACTIONS ITEM 27d OF FORM 5500 YEAR ENDED DECEMBER 31, 1998 EMPLOYER IDENTIFICATION NUMBER: 58-0678148 PLAN NUMBER: 334 - --------------------------------------------------------------------------------
CURRENT VALUE OF ASSET NET IDENTITY OF PURCHASE SELLING COST OF ON TRANSACTION GAIN PARTY INVOLVED DESCRIPTION OF ASSET PRICE PRICE ASSET DATE (LOSS) American Century Investments Twentieth Century Ultra $ 452,000 $ 452,000 $ 452,000 American Century Investments Twentieth Century Ultra $1,398,822 $1,362,737 $1,398,822 $ 36,085 American Century Investments Twentieth Century Ultra $ 51,000 $ 46,021 $ 51,000 $ 4,979 The American Funds Group EuroPacific Growth Fund $ 134,577 $ 134,577 $ 134,577 The American Funds Group EuroPacific Growth Fund $ 374,018 $ 422,554 $ 374,018 $(48,536) Federated Investors Federated Mini-Cap Fund $ 134,903 $ 134,903 $ 134,903 Federated Investors Federated Mini-Cap Fund $ 264,033 $ 310,885 $ 264,033 $(46,852) Federated Investors Federated Max-Cap Fund $ 353,301 $ 353,301 $ 353,301 Federated Investors Federated Max-Cap Fund $ 520,136 $ 440,693 $ 520,136 $ 79,443 Federated Investors Federated Max-Cap Fund $ 397,032 $ 331,480 $ 397,032 $ 65,552 Federated Investors Federated Max-Cap Fund $ 320,899 $ 268,980 $ 320,899 $ 51,919
18 22 THE CROWN CRAFTS, INC. 401(k) RETIREMENT SAVINGS PLAN SCHEDULE OF REPORTABLE TRANSACTIONS ITEM 27d OF FORM 5500 YEAR ENDED DECEMBER 31, 1998 EMPLOYER IDENTIFICATION NUMBER: 58-0678148 PLAN NUMBER: 334 - --------------------------------------------------------------------------------
CURRENT VALUE OF ASSET NET IDENTITY OF PURCHASE SELLING COST OF ON TRANSACTION GAIN PARTY INVOLVED DESCRIPTION OF ASSET PRICE PRICE ASSET DATE (LOSS) PIMCO PIMCO Total Return $ 231,982 $ 231,982 $ 231,982 PIMCO PIMCO Total Return $ 259,208 $ 247,386 $ 259,208 $ 11,822 PIMCO PIMCO Total Return $ 226,711 $ 216,684 $ 226,711 $ 10,027 PIMCO PIMCO Total Return $ 203,423 $ 194,958 $ 203,423 $ 8,465 Peoples S&P Midcap Fund $ 57,000 $ 57,000 $ 57,000 Peoples S&P Midcap Fund $ 230,331 $ 223,637 $ 230,331 $ 6,694 Putnam Investments Putnam Asset Allocation: Balanced Portfolio $ 227,518 $ 227,518 $ 227,518 Putnam Investments Putnam Asset Allocation: Balanced Portfolio $ 335,408 $ 335,408 $ 335,408 Putnam Investments Putnam Asset Allocation: Conservative Portfolio $ 266,136 $ 266,136 $ 266,136 Putnam Investments Putnam Asset Allocation: Growth Portfolio $ 1,246,963 $ 1,246,963 $ 1,246,963 Putnam Investments Putnam Asset Allocation: Growth Portfolio $ 434,426 $ 434,426 $ 434,426
19 23 THE CROWN CRAFTS, INC. 401(k) RETIREMENT SAVINGS PLAN SCHEDULE OF REPORTABLE TRANSACTIONS ITEM 27d OF FORM 5500 YEAR ENDED DECEMBER 31, 1998 EMPLOYER IDENTIFICATION NUMBER: 58-0678148 PLAN NUMBER: 334 - --------------------------------------------------------------------------------
CURRENT VALUE OF ASSET NET IDENTITY OF PURCHASE SELLING COST OF ON TRANSACTION GAIN PARTY INVOLVED DESCRIPTION OF ASSET PRICE PRICE ASSET DATE (LOSS) Putnam Investments Putnam Asset Allocation: Growth Portfolio $ 332,979 $ 332,979 $ 323,979 Putnam Investments Putnam New Opportunities Fund $ 1,348,012 $ 1,348,012 $ 1,348,012 Putnam Investments Putnam New Opportunities Fund $ 247,641 $ 247,641 $ 247,641 Putnam Investments Stable Value Fund $ 524,983 $ 524,983 $ 524,983
20 24 SIGNATURES The Plan. Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees (or other persons who administer the employee benefit plan) have duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized. CROWN CRAFT, INC. 401(k) RETIREMENT SAVINGS PLAN By: /s/ DAVID S. FRASER ----------------------------------- David S. Fraser By: /s/ ROGER D. CHITTUM ----------------------------------- Roger D. Chittum By: /s/ BONNIE WASDIN ----------------------------------- Bonnie Wasdin Date: July 30, 1999 (Each Member of the Administrative ------------------------- Committee appointed under and Pursuant to the Crown Crafts, Inc. 401(k) Retirement Savings Plan) EX-23 2 CONSENT OF JOSEPH DECOSIMO AND COMPANY 1 CONSENT OF INDEPENDENT ACCOUNTANTS We consent to the incorporation by reference in the Registration Statement (Form S-8 No. 33-64499) pertaining to The Crown Crafts, Inc. 401(k) Retirement Savings Plan of our report dated July 9, 1999, with respect to the financial statements and schedules of The Crown Crafts, Inc. 401(k) Retirement Savings Plan included in this Annual Report (Form 11-K) for the year ended December 31, 1998. July 30, 1999 JOSEPH DECOSIMO AND COMPANY A GEORGIA LIMITED LIABILITY PARTNERSHIP -----END PRIVACY-ENHANCED MESSAGE-----