-----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, Ors/6XOMMVuM+R1UUFnYOiyvRb/iyn3w+Lk7kuj0TEjNyQETewjboo5Z/SF89eNz xmwYMMjT0Ht3bglCgi8w8Q== 0000950152-99-005700.txt : 19990630 0000950152-99-005700.hdr.sgml : 19990630 ACCESSION NUMBER: 0000950152-99-005700 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19981231 FILED AS OF DATE: 19990629 FILER: COMPANY DATA: COMPANY CONFORMED NAME: JO-ANN STORES INC CENTRAL INDEX KEY: 0000034151 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-MISCELLANEOUS SHOPPING GOODS STORES [5940] IRS NUMBER: 340720629 STATE OF INCORPORATION: OH FISCAL YEAR END: 0131 FILING VALUES: FORM TYPE: 11-K SEC ACT: SEC FILE NUMBER: 333-72445 FILM NUMBER: 99655536 BUSINESS ADDRESS: STREET 1: 5555 DARROW RD CITY: HUDSON STATE: OH ZIP: 44236 BUSINESS PHONE: 2166562600 MAIL ADDRESS: STREET 1: 5555 DARROW ROAD CITY: HUDSON STATE: OH ZIP: 44236 FORMER COMPANY: FORMER CONFORMED NAME: FABRI CENTERS OF AMERICA INC DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: CLEVELAND FABRIC SHOPS INC DATE OF NAME CHANGE: 19681216 FORMER COMPANY: FORMER CONFORMED NAME: CLEVELAND FABRIC SHOPS INC NUMBER THREE DATE OF NAME CHANGE: 19681216 11-K 1 JO-ANN STORES, INC. 11-K 1 As filed with the Securities and Exchange Commission on June 29, 1999 - -------------------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 --------------------------------------- FORM 11-K /X/ ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 1998 Commission File No: 1-6695 JO-ANN STORES, INC. EMPLOYEES' SAVINGS AND PROFIT SHARING PLAN (Full title of the plan and the address of the plan, if different from that of the issuer named below) Jo-Ann Stores, Inc. 5555 Darrow Road Hudson, OH 44236 (Name of issuer of the securities held pursuant to the plan and the address of its principal executive office) Page 1 of 3 2 REQUIRED INFORMATION Jo-Ann Stores, Inc. Employees' Savings and Profit Sharing Plan (the "Plan") is subject to the Employee Retirement Income Security Act of 1974 ("ERISA"). Therefore, in lieu of the requirements of Items 1-3 of Form 11-K, the financial statements and schedules of the Plan for the two fiscal years ended December 31, 1998 and 1997, which have been prepared in accordance with the financial reporting requirements of ERISA, are attached hereto as Exhibit 99 and incorporated herein by this reference. SIGNATURES The Plan. Pursuant to the requirements of the Securities Exchange Act of 1934, the Committee (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. JO-ANN STORES, INC. EMPLOYEES' SAVINGS AND PROFIT SHARING PLAN By: Jo-Ann Stores, Inc. Employees' Savings and Profit Sharing Plan Committee /s/ Rosalind Thompson Rosalind Thompson June 29, 1999 Committee Chairperson Page 2 of 3 3 JO-ANN STORES, INC. EMPLOYEES' SAVINGS AND PROFIT SHARING PLAN EXHIBIT INDEX
Official -------- Exhibit No. Description ----------- ----------- 23 Consent of Independent Public Accountants 99 Jo-Ann Stores, Inc. Employees' Savings and Profit-Sharing Plan Financial Statements As of December 31, 1998 and 1997 Together With Report of Independent Public Accountants
Page 3 of 3 EX-23 2 EXHIBIT 23 1 Exhibit 23 CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS As independent public accountants, we hereby consent to the incorporation of our report on the financial statements of the Jo-Ann Stores, Inc. Employees' Savings and Profit-Sharing Plan dated May 7, 1999, included in this Form 11-K into the Company's previously filed Registration Statement (Form S-8) pertaining to the Jo-Ann Stores, Inc. Employees' Savings and Profit-Sharing Plan (#33-32809). Arthur Andersen LLP Cleveland, Ohio June 29, 1999. EX-99 3 EXHIBIT 99 1 Exhibit 99 JO-ANN STORES, INC. EMPLOYEES' SAVINGS AND PROFIT-SHARING PLAN FINANCIAL STATEMENTS AS OF DECEMBER 31, 1998 AND 1997 TOGETHER WITH REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS 2 REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS To the Advisory Committee of Jo-Ann Stores, Inc. Employees' Savings and Profit-Sharing Plan: We have audited the accompanying statements of net assets of Jo-Ann Stores, Inc. Employees' Savings and Profit-Sharing Plan (the Plan) as of December 31, 1998 and 1997, and the related statement of changes in net assets for the year ended December 31, 1998, as listed in the accompanying index. These financial statements and the schedules referred to below are the responsibility of the Plan's management. Our responsibility is to express an opinion on these financial statements and schedules 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 of the Plan as of December 31, 1998 and 1997, and the changes in its net assets for the year ended December 31, 1998, in conformity with generally accepted accounting principles. Our audits were 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 (Schedule I) and reportable transactions (Schedule II), as listed in the accompanying index, 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 audits 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. Arthur Andersen LLP Cleveland, Ohio, May 7, 1999. 3 JO-ANN STORES, INC. ------------------- EMPLOYEES' SAVINGS AND PROFIT-SHARING PLAN ------------------------------------------ INDEX TO FINANCIAL STATEMENTS ----------------------------- DECEMBER 31, 1998 ----------------- Statement of Net Assets as of December 31, 1998 Statement of Net Assets as of December 31, 1997 Statement of Changes in Net Assets for the Year Ended December 31, 1998 Notes to Financial Statements Schedule I--Item 27a--Schedule of Assets Held for Investment Purposes as of December 31, 1998 Schedule II--Item 27d--Schedule of Reportable Transactions for the Year Ended December 31, 1998 4 JO-ANN STORES, INC. ------------------- EMPLOYEES' SAVINGS AND PROFIT-SHARING PLAN ------------------------------------------ STATEMENT OF NET ASSETS ----------------------- AS OF DECEMBER 31, 1998 -----------------------
Participant Directed ----------------------------------------------------------------------------------------- Fidelity Intermediate Company Company Stock Magellan EB Magic Income Stock Stock Index Fund Fund Fund Fund Fund A Fund B ----------- ----------- ----------- ----------- ----------- ----------- ASSETS: Cash and cash equivalents $ -- $ -- $ -- $ -- $ 31,629 $ 42,197 Receivables -- -- -- -- 57,369 195 Investments, at market- Corporate stocks -- -- -- -- 3,761,408 1,341,976 Key Bank- Victory Stock Index Fund 9,008,764 -- -- -- -- -- Prism Fidelity Magellan Fund -- 6,506,573 -- -- -- -- Prism Magic Fund -- -- 4,562,256 -- -- -- Prism Money Market Fund -- -- 600,442 -- -- -- Victory Intermediate Income Fund -- -- -- 2,091,176 -- -- Loan Fund -- -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- ----------- Total investments, at market . 9,008,764 6,506,573 5,162,698 2,091,176 3,761,408 1,341,976 Employer contributions receivable .. -- -- -- -- -- -- Participant contributions receivable 34,867 29,331 17,185 12,827 29,339 8,791 ----------- ----------- ----------- ----------- ----------- ----------- Total assets 9,043,631 6,535,904 5,179,883 2,104,003 3,879,745 1,393,159 ----------- ----------- ----------- ----------- ----------- ----------- LIABILITIES: Accrued expenses and other 7,468 6,380 4,214 2,826 7,085 2,664 ----------- ----------- ----------- ----------- ----------- ----------- NET ASSETS $ 9,036,163 $ 6,529,524 $ 5,175,669 $ 2,101,177 $ 3,872,660 $ 1,390,495 =========== =========== =========== =========== =========== =========== Nonparticipant Directed ------------------------------------------------------ Stock Stock Company Company Ownership Ownership Stock Stock Participant Fund A Fund B Fund A Fund B Loans Total ----------- ----------- ----------- ----------- ----------- ----------- ASSETS: Cash and cash equivalents $ 2,941 $ 2,705 $ 23,860 $ 75,018 $ -- $ 178,350 Receivables -- 1,634 43,278 344 -- 102,820 Investments, at market- Corporate stocks 195,467 168,776 2,837,554 2,385,736 -- 10,690,917 Key Bank- Victory Stock Index Fund -- -- -- -- -- 9,008,764 Prism Fidelity Magellan Fund -- -- -- -- -- 6,506,573 Prism Magic Fund -- -- -- -- -- 4,562,256 Prism Money Market Fund -- -- -- -- -- 600,442 Victory Intermediate Income Fund -- -- -- -- -- 2,091,176 Loan Fund -- -- -- -- 498,680 498,680 ----------- ----------- ----------- ----------- ----------- ----------- Total investments, at market . 195,467 168,776 2,837,554 2,385,736 498,680 33,958,808 Employer contributions receivable .. -- -- 20,444 22,341 -- 42,785 Participant contributions receivable -- -- -- -- -- 132,340 ----------- ----------- ----------- ----------- ----------- ----------- Total assets 198,408 173,115 2,925,136 2,483,439 498,680 34,415,103 ----------- ----------- ----------- ----------- ----------- ----------- LIABILITIES: Accrued expenses and other -- -- 5,344 17,753 -- 53,734 ----------- ----------- ----------- ----------- ----------- ----------- NET ASSETS $ 198,408 $ 173,115 $ 2,919,792 $ 2,465,686 $ 498,680 $34,361,369 =========== =========== =========== =========== =========== ===========
The accompanying notes to financial statements are an integral part of this statement. 5 JO-ANN STORES, INC. ------------------- EMPLOYEES' SAVINGS AND PROFIT-SHARING PLAN ------------------------------------------ STATEMENT OF NET ASSETS ----------------------- AS OF DECEMBER 31, 1997 -----------------------
Participant Directed ------------------------------------------------------------------------------------- Fidelity Intermediate Company Company Stock Index Magellan EB Magic Income Stock Stock Fund Fund Fund Fund Fund A Fund B ----------- ----------- ----------- ----------- ----------- ----------- ASSETS: Cash and cash equivalents $ -- $ -- $ -- $ -- $ 125,088 $ 41,801 Investments, at market- Corporate stocks -- -- -- -- 5,054,181 1,992,482 Key Bank- Victory Stock Index Fund 6,478,627 -- -- -- -- -- Prism Fidelity Magellan Fund -- 4,045,076 -- -- -- -- Prism Magic Fund -- -- 4,225,657 -- -- -- Prism Money Market Fund -- -- 641,657 -- -- -- Victory Intermediate Income Fund -- -- -- 1,840,669 -- -- Loan Fund -- -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- ----------- Total investments, at market 6,478,627 4,045,076 4,867,314 1,840,669 5,054,181 1,992,482 Employer contributions receivable -- -- -- -- -- -- Participant contributions receivable 26,486 19,581 15,284 9,691 25,585 5,973 ----------- ----------- ----------- ----------- ----------- ----------- Total assets 6,505,113 4,064,657 4,882,598 1,850,360 5,204,854 2,040,256 ----------- ----------- ----------- ----------- ----------- ----------- LIABILITIES: Accrued expenses and other 3,595 2,471 2,151 1,308 4,465 1,874 ----------- ----------- ----------- ----------- ----------- ----------- NET ASSETS $ 6,501,518 $ 4,062,186 $ 4,880,447 $ 1,849,052 $ 5,200,389 $ 2,038,382 =========== =========== =========== =========== =========== =========== Nonparticipant Directed -------------------------------------------------------- Stock Stock Company Company Ownership Ownership Stock Stock Participant Fund A Fund B Fund A Fund B Loans Total ----------- ----------- ----------- ----------- ----------- ----------- ASSETS: Cash and cash equivalents $ 3,188 $ 3,099 $ 94,364 $ 68,201 $ 4,975 $ 340,716 Investments, at market- Corporate stocks 293,818 272,668 3,812,804 3,250,892 $ -- 14,676,845 Key Bank- Victory Stock Index Fund -- -- -- -- -- 6,478,627 Prism Fidelity Magellan Fund -- -- -- -- -- 4,045,076 Prism Magic Fund -- -- -- -- -- 4,225,657 Prism Money Market Fund -- -- -- -- -- 641,657 Victory Intermediate Income Fund -- -- -- -- -- 1,840,669 Loan Fund -- -- -- -- 402,844 402,844 ----------- ----------- ----------- ----------- ----------- ----------- Total investments, at market 293,818 272,668 3,812,804 3,250,892 402,844 32,311,375 Employer contributions receivable -- -- 16,690 16,587 -- 33,277 Participant contributions receivable -- -- -- -- -- 102,600 ----------- ----------- ----------- ----------- ----------- ----------- Total assets 297,006 275,767 3,923,858 3,335,680 407,819 32,787,968 ----------- ----------- ----------- ----------- ----------- ----------- LIABILITIES: Accrued expenses and other -- -- 3,480 3,057 -- 22,401 ----------- ----------- ----------- ----------- ----------- ----------- NET ASSETS $ 297,006 $ 275,767 $ 3,920,378 $ 3,332,623 $ 407,819 $32,765,567 =========== =========== =========== =========== =========== ===========
The accompanying notes to financial statements are an integral part of this statement. 6 JO-ANN STORES, INC. ------------------- EMPLOYEES' SAVINGS AND PROFIT-SHARING PLAN ------------------------------------------ STATEMENT OF CHANGES IN NET ASSETS ---------------------------------- FOR THE YEAR ENDED DECEMBER 31, 1998 ------------------------------------
Participant Directed ------------------------------------------------------------------------------------- Stock Fidelity Intermediate Company Company Index Magellan EB Magic Income Stock Stock Fund Fund Fund Fund Fund A Fund B ----------- ----------- ----------- ----------- ----------- ----------- INCREASES: Interest and dividend income $ 919,985 $ (181) $ 6,357 $ 107,431 $ 7,865 $ 3,445 Employer contributions -- -- -- -- -- -- Participant contributions 1,019,729 869,109 484,057 323,208 797,359 234,019 Realized gains on sale of investments 196,587 115,477 75,117 6,309 286,055 67,431 Unrealized gains on investments 776,090 1,412,339 212,666 26,331 -- -- ----------- ----------- ----------- ----------- ----------- ----------- 2,912,391 2,396,744 778,197 463,279 1,091,279 304,895 ----------- ----------- ----------- ----------- ----------- ----------- DECREASES: Distributions to former participants 580,570 325,026 408,350 264,852 386,230 134,007 Administrative expenses 18,367 14,788 10,570 6,869 29,287 11,152 Unrealized losses on investments -- -- -- -- 1,614,920 699,336 Other -- -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- ----------- 598,937 339,814 418,920 271,721 2,030,437 844,495 ----------- ----------- ----------- ----------- ----------- ----------- NET INCREASE (DECREASE) FOR THE YEAR 2,313,454 2,056,930 359,277 191,558 (939,158) (539,600) BALANCE, BEGINNING OF YEAR 6,501,518 4,062,186 4,880,447 1,849,052 5,200,389 2,038,382 NET INTERFUND TRANSFERS 221,191 410,408 (64,055) 60,567 (388,571) (108,287) ----------- ----------- ----------- ----------- ----------- ----------- BALANCE, END OF YEAR $ 9,036,163 $ 6,529,524 $ 5,175,669 $ 2,101,177 $ 3,872,660 $ 1,390,495 =========== =========== =========== =========== =========== =========== Nonparticipant Directed ------------------------------------------------------------------------------- Stock Stock Company Company Ownership Ownership Stock Stock Participant Fund A Fund B Fund A Fund B Loans Total ----------- ----------- ----------- ----------- ----------- ----------- INCREASES: Interest and dividend income $ 143 $ 162 $ 5,934 $ 6,124 $ 37,405 $ 1,094,670 Employer contributions -- -- 513,898 518,375 -- 1,032,273 Participant contributions 66,805 67,282 -- -- -- 3,861,568 Realized gains on sale of investments 14,638 13,731 215,796 119,877 -- 1,111,018 Unrealized gains on investments -- -- -- -- -- 2,427,426 ----------- ----------- ----------- ----------- ----------- ----------- 81,586 81,175 735,628 644,376 37,405 9,526,955 ----------- ----------- ----------- ----------- ----------- ----------- DECREASES: Distributions to former participants 87,407 87,227 291,367 238,234 29,760 2,833,030 Administrative expenses -- -- 22,094 19,825 -- 132,952 Unrealized losses on investments 90,868 96,600 1,218,273 1,243,265 -- 4,963,262 Other 1,909 -- -- -- -- 1,909 ----------- ----------- ----------- ----------- ----------- ----------- 180,184 183,827 1,531,734 1,501,324 29,760 7,931,153 ----------- ----------- ----------- ----------- ----------- ----------- NET INCREASE (DECREASE) FOR THE YEAR (98,598) (102,652) (796,106) (856,948) 7,645 1,595,802 BALANCE, BEGINNING OF YEAR 297,006 275,767 3,920,378 3,332,623 407,819 32,765,567 NET INTERFUND TRANSFERS -- -- (204,480) (9,989) 83,216 -- ----------- ----------- ----------- ----------- ----------- ----------- BALANCE, END OF YEAR $ 198,408 $ 173,115 $ 2,919,792 $ 2,465,686 $ 498,680 $34,361,369 =========== =========== =========== =========== =========== ===========
The accompanying notes to financial statements are an integral part of this statement. 7 JO-ANN STORES, INC. ------------------- EMPLOYEES' SAVINGS AND PROFIT-SHARING PLAN ------------------------------------------ NOTES TO FINANCIAL STATEMENTS ----------------------------- DECEMBER 31, 1998 AND 1997 -------------------------- 1. SUMMARY OF PLAN: The original Jo-Ann Stores, Inc. Employees' Savings and Profit-Sharing Plan was adopted as of September 1, 1974, and has been amended on occasion in order to, among other things, maintain compliance with the requirements of the Employee Retirement Income Security Act of 1974 (ERISA). Effective July 1, 1998, employees of the former House of Fabrics, Inc., which was acquired by Jo-Ann Stores, Inc., (the Company) during 1998, are able to participate in the Plan. The principal provisions of the Plan are as follows: ELIGIBILITY All active employees of the Company and its wholly owned subsidiaries that have adopted the Plan, who have been continuously employed by the Company for a period of one year, have attained the age of 21, have completed at least 1,000 hours of service and are not members of a recognized collective bargaining organization, are eligible to participate in the Plan. DEFERRED INCOME CONTRIBUTIONS Pursuant to a Salary Reduction Agreement permitted under Section 401(k) of the Internal Revenue Code (IRC), plan participants may elect to defer from 1% to 10% of their compensation, subject to an annual limitation under the IRC, and such amounts will be contributed to the Plan by the Company as deferred income contributions. EMPLOYER MATCHING CONTRIBUTIONS The Company will contribute to the Plan, subject to the forfeiture provision outlined below, an adjustable percentage of the deferred income contributions made by participants, (up to a 4% employee deferred compensation contribution), as well as such additional amounts as the Board of Directors may determine. These contributions are allocated among participants in proportion to the deferred income contributions made on their behalf for such period and credited to their separate accounts. The Company's matching contribution can range from 0% to 100% and can be modified prior to the beginning of a month by the Company. For the 1998 and 1997 plan years, the Company's matching contribution was 50% of the first 4% contributed by participants. All Company matching contributions are in the form of common stock of the Company and are invested in the Company Stock Fund A and Company Stock Fund B. Company contributions are funded only to the extent that they exceed cumulative forfeitures of participants terminated from the Plan. Such forfeitures amounted to $24,342 in 1998. 8 -2- INVESTMENT OF EMPLOYEE CONTRIBUTIONS Under the Plan, each participant selects the manner in which deferred income contributions to their account are to be invested. Contributions are invested in 5% increments, up to 100%, in any one of the following investment options: a. Victory Stock Index Fund -- Investments are made in a portfolio of stocks attempting to match the Standard & Poor's 500 index with a rate of return that may fluctuate substantially and providing for no guarantee against loss. b. Prism Fidelity Magellan Fund -- Investments are made in common stocks of domestic, foreign and multi-national companies believed to have growth potential and providing for no guarantee against loss. c. Prism EB Magic Fund -- Investments are made in investment contracts issued by insurance companies and banks providing for stability of principal and attractive rates of interest. d. Victory Intermediate Income Fund -- Investments are made in investment-grade debt securities issued by corporations and obligations of the U.S. Government and its agencies or instrumentalities dependent upon the prevailing interest rates and providing for a lower risk of loss. e. Company Stock Fund A -- Investments are made in Jo-Ann Stores, Inc. Class A common stock and providing for no guarantee against loss. f. Company Stock Fund B -- Investments are made in Jo-Ann Stores, Inc. Class B common stock and providing for no guarantee against loss. A participant may change his investment election with respect to future contributions and, separately, past contributions on a monthly basis. PAYSOP CONTRIBUTIONS Prior to February 1, 1987, the Company made PAYSOP contributions to the Stock Ownership Fund for each year in an amount equal to the tax credit available under Section 44G of the IRC. This tax credit was eliminated by the Tax Reform Act of 1986 and, therefore, the Company no longer makes PAYSOP contributions. Distributions of the PAYSOP account balances to terminated participants are made in shares of Company common stock unless otherwise specified by the participant. VESTING REQUIREMENTS Participants' deferred income contributions, together with earnings thereon, vest immediately. All other Company contributions, plus earnings thereon, vest over a four-year period based on years of service, as defined by the Plan agreement. A participant's entire interest in the Plan becomes fully vested upon his death while employed, attainment of age 65 or permanent and total disability. 9 -3- TRUSTEE'S FEES AND OTHER EXPENSES Generally, costs incident to the purchase and sale of securities, such as brokerage commissions and stock transfer taxes, are paid by the respective funds. Other costs and expenses incurred in administering the Plan, including fees of the trustee, are generally paid by the Plan. TERMINATION Although it has not expressed any intent to do so, the Board of Directors, without further approval of shareholders, has the right 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. 2. SIGNIFICANT ACCOUNTING POLICIES: BASIS OF ACCOUNTING The accompanying financial statements are prepared on the accrual basis of accounting. VALUATION OF INVESTMENTS The assets included in the Statements of Net Assets are stated at their market values as of December 31, 1998 and 1997. Schedule I summarizes the Plan's investments held at December 31, 1998. 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 and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. 3. TAX STATUS: The Internal Revenue Service has determined and informed the Company, by letter dated February 20, 1997, that the Plan complies with applicable sections of the IRC. 4. INFORMATION CERTIFIED BY TRUSTEE: The trustee, Key Trust Company of Ohio, N.A., maintains records of investment transactions and participant accounts and determines the valuation of the investment portfolio of each fund. Information with respect to (1) investments included in the Statements of Net Assets and the Schedule of Assets Held for Investment Purposes (Schedule I), (2) all items included in the Statement of Changes in Net Assets, and (3) the Schedule of Reportable Transactions (Schedule II) has been certified by the trustee as being complete and accurate. 5. PARTY-IN-INTEREST TRANSACTIONS: During the years ended December 31, 1998 and 1997, there were no prohibited transactions with a party-in-interest, as defined by ERISA. 10 -4- 6. REPORTABLE TRANSACTIONS: Schedule II summarizes the Plan's reportable transactions for the year ended December 31, 1998. As defined by ERISA, a reportable transaction is a transaction or series of transactions in one security involving amounts in excess of 5% of the market value of the Plan's net assets as of the beginning of the Plan year. 7. SUBSEQUENT EVENT: On March 1, 1999, the Company switched from Key Trust Company of Ohio, N.A., as trustee of the Plan to Institutional Trust Company, a subsidiary of Invesco Retirement Plan Services. The Plan participants may now elect to defer from 1% to 15 % of their compensation. The fair market value of the total investments was transferred to Institutional Trust Company on the effective date as follows: Key Trust Company Fund Institutional Trust Company Fund Transferred From: Transferred To: ----------------------------- ------------------------------- Prism EB Magic Fund IRT Stable Value Fund Victory Intermediate Income Pegasus Bond Fund Fund Victory Stock Index Fund IRT 500 Index Fund Prism Fidelity Magellan Fund AIM Blue Chip Fund Company Stock Fund A Company Stock Fund A Company Stock Fund B Company Stock Fund B 11 SCHEDULE I JO-ANN STORES, INC. ------------------- EMPLOYEES' SAVINGS AND PROFIT-SHARING PLAN ------------------------------------------ ITEM 27A--SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES --------------------------------------------------------- AS OF DECEMBER 31, 1998 ----------------------- EMPLOYER IDENTIFICATION NUMBER: 34-0720629 ------------------------------------------ PLAN NUMBER: 001 ----------------
Market Description Cost Value - -------------------------------------------- ---------- ------------ Victory Stock Index Fund $6,391,327 $9,008,764 Prism Fidelity Magellan Fund 4,175,089 6,506,573 EB Magic Fund 4,024,361 4,562,256 Prism Money Market Fund 555,382 600,442 Victory Intermediate Income Fund 2,040,224 2,091,176 JoAnn Stores, Inc. Class A common stock 5,306,108 6,794,429 JoAnn Stores, Inc. Class B common stock 3,002,548 3,896,488 Prism Money Market Fund 178,350 178,350 *Loan Fund, interest rates varying from 8.75% to 9.5% 498,680 498,680
*Represents a party-in-interest The accompanying notes to financial statements are an integral part of this schedule. 12 SCHEDULE II JO-ANN STORES, INC. ------------------- EMPLOYEES' SAVINGS AND PROFIT-SHARING PLAN ------------------------------------------ ITEM 27D--SCHEDULE OF REPORTABLE TRANSACTIONS --------------------------------------------- FOR THE YEAR ENDED DECEMBER 31, 1998 ------------------------------------ EMPLOYER IDENTIFICATION NUMBER: 34-0720629 ------------------------------------------ PLAN NUMBER: 001 ----------------
Purchase/Sale Cost of Net Description Price Asset Gain - ------------------------------------------------ -------------- ---------- ---------- SALES: EB Magic Fund $2,660,433 $2,660,433 $ -- Prism Fidelity Magellan Fund 407,988 307,841 100,147 Victory Stock Index Fund 655,772 463,021 192,751 PURCHASES: EB Magic Fund 2,503,042 2,503,402 -- Prism Fidelity Magellan Fund 1,331,668 1,331,668 -- Victory Stock Index Fund 2,213,233 2,213,233 --
The accompanying notes to financial statements are an integral part of this schedule. -----END PRIVACY-ENHANCED MESSAGE-----