-----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, B0Sec60XtgIRz7XxBKMWtAl4l9vZZXk3PdC4vOrqU1kEZ4qnZcSyMEPxd3G+pgYu 30VgQ3IVD0AEksvSl2Y4QQ== 0001005477-97-001737.txt : 19970627 0001005477-97-001737.hdr.sgml : 19970627 ACCESSION NUMBER: 0001005477-97-001737 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19961231 FILED AS OF DATE: 19970626 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: PHILLIPS VAN HEUSEN CORP /DE/ CENTRAL INDEX KEY: 0000078239 STANDARD INDUSTRIAL CLASSIFICATION: MEN'S & BOYS' FURNISHINGS, WORK CLOTHING, AND ALLIED GARMENTS [2320] IRS NUMBER: 131166910 STATE OF INCORPORATION: DE FISCAL YEAR END: 0131 FILING VALUES: FORM TYPE: 11-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-07572 FILM NUMBER: 97629962 BUSINESS ADDRESS: STREET 1: 1290 AVENUE OF THE AMERICAS CITY: NEW YORK STATE: NY ZIP: 10104 BUSINESS PHONE: 2125415200 11-K 1 FORM 11-K SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 ------------- FORM 11-K ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (Mark One): |X| ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 [FEE REQUIRED]. For the fiscal year ended December 31, 1996 OR |_| TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED]. For the transition period from __________ to __________ Commission file number 1-724 A. Full title of the plan and the address of the plan, if different from that of the issuer named below: Phillips-Van Heusen Corporation (Crystal Brands Division) Associates Investment Plan B. Name of issuer of the securities held pursuant to the plan and the address of its principal executive office: Phillips-Van Heusen Corporation, 1290 Avenue of the Americas, New York, New York 10104 Financial Statements and Supplemental Schedules Associates Investment Plan of Phillips-Van Heusen Corporation (Crystal Brands Division), formerly the Voluntary Investment Plan of Crystal Brands, Inc. Years ended December 31, 1996 and 1995 with Report of Independent Auditors [LOGO] Ernst & Young LLP Associates Investment Plan of Phillips-Van Heusen Corporation (Crystal Brands Division), formerly the Voluntary Investment Plan of Crystal Brands, Inc. Financial Statements and Supplemental Schedules Years ended December 31, 1996 and 1995 Contents Report of Independent Auditors............................................. 1 Financial Statements Statements of Net Assets Available for Benefits as of December 31, 1996 and 1995.............................................. 2 Statement of Changes in Net Assets Available for Benefits for the Year ended December 31, 1996........................................ 4 Notes to Financial Statements ............................................. 5 Supplemental Schedules Assets Held for Investment Purposes as of December 31, 1996................ 16 Reportable Transactions for the Year ended December 31, 1996............... 17 [Letterhead Of Ernst & Young LLP] Report of Independent Auditors Administrative Committee of the Plan Associates Investment Plan of Phillips-Van Heusen Corporation (Crystal Brands Division) New York, New York We were engaged to audit the accompanying financial statements and supplemental schedules of the Associates Investment Plan of Phillips-Van Heusen Corporation (Crystal Brands Division), formerly the Voluntary Investment Plan of Crystal Brands, Inc. (the "Plan"), as of December 31, 1996 and 1995, and for the year then ended, as listed in the table of contents. These financial statements and schedules are the responsibility of the Plan's management. As permitted by 29 CFR 2520.103-8 of the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974, the plan administrator instructed us not to perform, and we did not perform, any auditing procedures with respect to the investment information summarized in Note D, which was certified by the State Street Bank and Trust Company, the trustee of the Plan, except for comparing such information with the related information included in the financial statements and supplemental schedules. We have been informed by the plan administrator that the trustee holds the Plan's investment assets and executes investment transactions. The plan administrator has obtained a certification from the trustee as of and for the years ended December 31, 1996 and 1995, that the information provided to the plan administrator by the trustee is complete and accurate. Because of the significance of the information that we did not audit, we are unable to, and do not, express an opinion on the accompanying financial statements and schedules taken as a whole. The form and content of the information included in the financial statements and schedules, other than that derived from the information certified by the trustee, have been audited by us in accordance with generally accepted auditing standards and, in our opinion, are presented in compliance with the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. As discussed in Note C to the financial statements, the Plan's investments include interest contracts with insurance companies that have been placed into conservatorship. Although rehabilitation plans have been approved by the courts, the ultimate recoverability of these investments is uncertain, and the resulting loss, if any, cannot presently be determined. /s/ Ernst & Young LLP New York, New York June 13, 1997 1 Associates Investment Plan of Phillips-Van Heusen Corporation (Crystal Brands Division), formerly the Voluntary Investment Plan of Crystal Brands, Inc. Statement of Net Assets Available for Benefits December 31, 1996
Money Bond Balanced Equity International Market Fund Fund Fund Fund Fund - ----------------------------------------------------------------------------------------------------------------------------------- Assets Investments (Notes B and D) Shares of registered investment companies: Fidelity Intermediate Bond Fund $ 336,943 Fidelity Puritan Fund $ 1,637,087 Fidelity Growth & Income Portfolio $ 2,244,709 Templeton Foreign Fund $ 512,697 Short-term investments $ 2,727,133 Common stock - Employer Company Interest contracts: Non-performing (Note C) Participant loans receivable -------------------------------------------------------------------------------- Total investments 336,943 1,637,087 2,244,709 512,697 2,727,133 Receivables: Accrued interest and dividends 12,251 -------------------------------------------------------------------------------- Total assets 336,943 1,637,087 2,244,709 512,697 2,739,384 -------------------------------------------------------------------------------- Net assets available for benefits $ 336,943 $ 1,637,087 $ 2,244,709 $ 512,697 $ 2,739,384 ================================================================================ Fixed Income Fund Phillips-Van ------------------------------ Heusen Corp. Regular Tax Common Stock Investment Deductible Participant Fund Fund Fund Loans Total - ------------------------------------------------------------------------------------------------------------------------------------ Assets Investments (Notes B and D) Shares of registered investment companies: Fidelity Intermediate Bond Fund $ 336,943 Fidelity Puritan Fund 1,637,087 Fidelity Growth & Income Portfolio 2,244,709 Templeton Foreign Fund 512,697 Short-term investments 2,727,133 Common stock - Employer Company $ 616,299 616,299 Interest contracts: Non-performing (Note C) $ 4,351,464 $ -- 4,351,464 Participant loans receivable $ 168,917 168,917 ------------------------------------------------------------------------------- Total investments 616,299 4,351,464 -- 168,917 12,595,249 Receivables: Accrued interest and dividends 12,251 --------------------------------------------------------------------------------- Total assets 616,299 4,351,464 -- 168,917 12,607,500 --------------------------------------------------------------------------------- Net assets available for benefits $ 616,299 $ 4,351,464 $ -- $ 168,917 $ 12,607,500 =================================================================================
See notes to financial statements. 2 Associates Investment Plan of Phillips-Van Heusen Corporation (Crystal Brands Division), formerly the Voluntary Investment Plan of Crystal Brands, Inc. Statement of Net Assets Available for Benefits December 31, 1995
Money Bond Balanced Equity International Market Fund Fund Fund Fund Fund - ----------------------------------------------------------------------------------------------------------------------------------- Assets Investments (Notes B and D) Shares of registered investment companies: Fidelity Intermediate Bond Fund $ 386,205 Fidelity Puritan Fund $ 1,548,581 Fidelity Growth & Income Portfolio $ 1,907,185 Templeton Foreign Fund $ 541,012 Short-term investments $ 3,998,085 Common stock - Employer Company Interest contracts: Non-performing (Note C) Participant loans receivable --------------------------------------------------------------------------------- Total investments 386,205 1,548,581 1,907,185 541,012 3,998,085 Receivables: Accrued interest and dividends 1,906 23,491 --------------------------------------------------------------------------------- Total assets 388,111 1,548,581 1,907,185 541,012 4,021,576 Liabilities Payable for investments purchased --------------------------------------------------------------------------------- Net assets available for benefits $ 388,111 $ 1,548,581 $ 1,907,185 $ 541,012 $ 4,021,576 ================================================================================= Fixed Income Fund Phillips-Van ------------------------------ Heusen Corp. Regular Tax Common Stock Investment Deductible Participant Fund Fund Fund Loans Total - ------------------------------------------------------------------------------------------------------------------------------------ Assets Investments (Notes B and D) Shares of registered investment companies: Fidelity Intermediate Bond Fund $ 386,205 Fidelity Puritan Fund 1,548,581 Fidelity Growth & Income Portfolio 1,907,185 Templeton Foreign Fund 541,012 Short-term investments $ 143,947 4,142,032 Common stock - Employer Company 190,923 190,923 Interest contracts: Non-performing (Note C) $ 4,571,600 $ 2,462 4,574,062 Participant loans receivable $ 209,838 209,838 ----------------------------------------------------------------------------- Total investments 334,870 4,571,600 2,462 209,838 13,499,838 Receivables: Accrued interest and dividends 137 45 25,579 ----------------------------------------------------------------------------- Total assets 335,007 4,571,645 2,462 209,838 13,525,417 Liabilities Payable for investments purchased 143,448 143,448 ----------------------------------------------------------------------------- Net assets available for benefits $ 191,559 $ 4,571,645 $ 2,462 $ 209,838 $ 13,381,969 =============================================================================
See notes to financial statements. 3 Associates Investments Plan of Phillips-Van Heusen Corporation (Crystal Brands Division), formerly the Voluntary Investment Plan of Crystal Brands, Inc. Statement of Changes in Net Assets Available for Benefits Year ended December 31, 1996
Phillips-Van Money Heusen Corp. Bond Balanced Equity International Market Common Stock Fund Fund Fund Fund Fund Fund - ------------------------------------------------------------------------------------------------------------------------------------ Additions Investment income : Interest and dividend income $ 24,788 $ 189,867 $ 106,987 $ 25,950 $ 167,210 $ 5,757 Net realized and unrealized appreciation (depreciation) of investments (Note D) (13,453) 32,514 259,007 69,465 165,007 --------------------------------------------------------------------------------- 11,335 222,381 365,994 95,415 167,210 170,764 Contributions: Participants 41,336 158,763 225,647 75,823 69,992 29,643 Employer 1,290 2,579 430 256,021 --------------------------------------------------------------------------------- 41,336 160,053 228,226 76,253 69,992 285,664 --------------------------------------------------------------------------------- Total additions 52,671 382,434 594,220 171,668 237,202 456,428 Deductions Payments to participants 73,124 335,246 487,930 128,275 1,829,889 73,040 --------------------------------------------------------------------------------- Total deductions 73,124 335,246 487,930 128,275 1,829,889 73,040 --------------------------------------------------------------------------------- Net increase (decrease) prior to loans to participants and interfund transfers (20,453) 47,188 106,290 43,393 (1,592,687) 383,388 Loans to participants, net of repayments 7,016 13,488 14,045 4,510 (411) 2,273 Interfund transfers (net) (37,731) 27,830 217,189 (76,218) 310,906 39,079 --------------------------------------------------------------------------------- Net increase (decrease) (51,168) 88,506 337,524 (28,315) (1,282,192) 424,740 Net assets available for benefits at beginning of 388,111 1,548,581 1,907,185 541,012 4,021,576 191,559 year ================================================================================= Net assets available for benefits at end of year $ 336,943 $1,637,087 $2,244,709 $ 512,697 $2,739,384 $ 616,299 ================================================================================= Fixed Income Fund ----------------------------- Regular Tax Investment Deductible Participant Fund Fund Loans Total ---------------------------------------------------------- Additions Investment income : Interest and dividend income $ 259,588 $ 780,147 Net realized and unrealized appreciation (depreciation) of investments (Note D) 512,540 ---------------------------------------------------------- 259,588 1,292,687 Contributions: Participants 601,204 Employer 260,320 ---------------------------------------------------------- 861,524 ---------------------------------------------------------- Total additions 259,588 2,154,211 Deductions Payments to participants 1,176 2,928,680 ---------------------------------------------------------- Total deductions 1,176 2,928,680 ---------------------------------------------------------- Net increase (decrease) prior to loans to participants and interfund transfers 258,412 (774,469) Loans to participants, net of repayments $(40,921) -- Interfund transfers (net) (478,593) $ (2,462) -- ---------------------------------------------------------- ---------------------------------------------------------- Net increase (decrease) (220,181) (2,462) (40,921) (774,469) Net assets available for benefits at beginning of 4,571,645 2,462 209,838 13,381,969 year ========================================================== Net assets available for benefits at end of year $4,351,464 $ -- $168,917 $12,607,500 ==========================================================
See notes to financial statements. 4 Associates Investment Plan of Phillips-Van Heusen Corporation (Crystal Brands Division), formerly the Voluntary Investment Plan of Crystal Brands, Inc. Notes to Financial Statements December 31, 1996 A. Description of the Plan The following description of the Associates Investment Plan of Phillips-Van Heusen Corporation (Crystal Brands Division) (the "Plan") provides only general information. Participants should refer to the Plan document for a more complete description of the Plan's provisions. Plan Amendments On February 17, 1995, the net assets of Crystal Brands, Inc. were acquired by Phillips-Van Heusen Corporation (the "Company"). As a result of the acquisition, responsibility for administering the Voluntary Investment Plan of Crystal Brands, Inc. was assumed by the Company. Prior to February 17, 1995, the Plan was known as the Voluntary Investment Plan of Crystal Brands, Inc. Prior to July 1, 1995, the Plan was known as the Voluntary Investment Plan of Phillips-Van Heusen Corporation (Crystal Brands Division). On July 1, 1995, the Plan changed its name to the Associates Investment Plan of Phillips-Van Heusen Corporation (Crystal Brands Division). Effective July 1, 1995, the Plan was restructured to mirror the Phillips-Van Heusen Corporation Associates Investment Plan. As a result, the investment options previously offered under the Voluntary Investment Plan of Phillips-Van Heusen Corporation (Crystal Brands Division) were dissolved, with the exception of the Fixed Income Fund whose remaining balances represent frozen assets. All contribution, benefit payment and loan policies have been amended to mirror the policies of the Phillips-Van Heusen Corporation Associates Investment Plan. 5 Associates Investment Plan of Phillips-Van Heusen Corporation (Crystal Brands Division), formerly the Voluntary Investment Plan of Crystal Brands, Inc. Notes to Financial Statements A. Description of the Plan (continued) General The Plan is a defined contribution plan sponsored by the Company covering non-union associates of the Company who are employed by the former Crystal Brands Division and who have at least one year of service (1,000 hours in a year). The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 ("ERISA"). Contributions Each year, participants may contribute up to 15% of pretax annual compensation, as defined by the Plan. The Company contributes 50% of the first 6% of base compensation that a participant contributes to the Plan. Participant Accounts Each participant's account is credited with the participant's contributions and allocations of (a) the Company's contributions and (b) Plan earnings. Forfeited balances of terminated participants' nonvested accounts are used to reduce future Company contributions. One hundred percent of the Company contributions are automatically invested in the common stock of the Company and may not thereafter be transferred until the participant has reached the age of fifty-five. Vesting Amounts attributable to Company contributions become vested on the participant's sixty-fifth birthday or if the participant's employment by the Company terminates by reason of the participant's death or permanent disability or the participant has completed five years of service with the Company. 6 Associates Investment Plan of Phillips-Van Heusen Corporation (Crystal Brands Division), formerly the Voluntary Investment Plan of Crystal Brands, Inc. Notes to Financial Statements A. Description of the Plan (continued) Investment Options Upon enrollment in the Plan, a participant may direct employee contributions in 5% increments into any of the six investment options. A participant may contribute a maximum of 25% of employee contributions into the Phillips-Van Heusen Corporation Common Stock Fund. Phillips-Van Heusen Corporation Common Stock Fund--Funds are invested by the trustee in common shares of the Company. Common shares of the Company are purchased by the trustee in the open market. Money Market Fund--Funds are invested by the trustee in short-term obligations and money market instruments. Equity Fund--Funds are invested in shares of a registered investment company that invests primarily in common stock (Fidelity Growth & Income Portfolio). Bond Fund--Funds are invested in shares of a registered investment company that invests in corporate bonds and U.S. government securities (Fidelity Intermediate Bond Fund). Balanced Fund--Funds are invested in shares of a registered investment company that invests in common stocks, preferred stocks, and bond (Fidelity Puritan Fund). International Fund--Funds are invested in shares of a registered investment company that invests in common stocks and bonds of companies and governments outside the United States (Templeton Foreign Fund). 7 Associates Investment Plan of Phillips-Van Heusen Corporation (Crystal Brands Division), formerly the Voluntary Investment Plan of Crystal Brands, Inc. Notes to Financial Statements A. Description of the Plan (continued) Fixed Income Fund--The balance in this fund represents investments in interest contracts issued by Executive Life Insurance Company and Mutual Benefit Life Insurance Company which, as discussed in Note C, have been classified as non-performing at December 31, 1996 and 1995. No new uncommitted investments in interest contracts were made subsequent to June 30, 1991. Effective July 1, 1995, future contributions to this fund were prohibited. Upon release of frozen assets, funds will be transferred into the Money Market Fund where participants may elect to withdraw or transfer the funds to other investment options. Substantially all of the remaining frozen assets in the interest contracts issued by Executive Life Insurance Company were released during 1996. Participant Loans Receivable Participants may borrow from the Plan, with certain restrictions, using their vested account balance as collateral. The minimum loan amount is $1,000 and the maximum loan amount is the lesser of (i) $50,000 reduced by the participant's highest outstanding loan balance during the previous twelve months or (ii) 50% of the vested value of the participant's account. Interest is fixed for the term of the loan at the prime rate as of the first business day of the month of application as published in the Wall Street Journal, plus 1%. Loan repayments are made through payroll deductions which may be specified for a term of 1 to 5 years or up to 15 years for the purchase of a primary residence. Participants maintaining outstanding loans from the Plan as in effect prior to July 1, 1995 will continue to have their loans governed by the loan provisions of the Plan as in effect at the time of the loan. However, loan repayment deductions may be adjusted to comply with their new payroll frequency effective July 1, 1995. Payment of Benefits Participants entitled to final distributions generally will receive payment in the form of a lump sum amount equal to the value of their vested account. 8 Associates Investment Plan of Phillips-Van Heusen Corporation (Crystal Brands Division), formerly the Voluntary Investment Plan of Crystal Brands, Inc. Notes to Financial Statements A. Description of the Plan (continued) Plan Termination Although it has not expressed any intent to do so, the Company 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. B. Significant Accounting Policies The accounting records of the Plan are maintained on the accrual basis, except for payments to participants which it accounts for on the cash basis. Accordingly, the Plan's statements of net assets available for plan benefits do not reflect amounts payable to terminated, retired or other participants as a liability. The Plan's investments are stated at fair value. The shares of registered investment companies are valued at quoted market prices which represent the net asset values of shares held by the Plan at year-end. Investments in the Money Market Fund and participant loans receivable are stated at cost, which approximates fair value. Interest contracts, except those with Executive Life Insurance Company, are stated at cost plus accumulated interest. As discussed in Note C, Executive Life Insurance Company interest contracts are stated at net realizable value. Purchases and sales of securities are reflected on a trade date basis. Substantially all administrative expenses are paid by the Company. The preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from these estimates. 9 Associates Investment Plan of Phillips-Van Heusen Corporation (Crystal Brands Division), formerly the Voluntary Investment Plan of Crystal Brands, Inc. Notes to Financial Statements C. Non-Performing Interest Contracts The investment alternatives of the Plan have included interest contracts with insurance companies. On April 11, 1991, the California Department of Insurance placed Executive Life Insurance Company ("ELIC") into conservatorship and suspended all payments on interest contracts issued by ELIC. Effective March 31, 1991, allocation of interest on the Plan's ELIC interest contracts to participant accounts was suspended, and on May 1, 1991, accrual of interest on the Plan's ELIC interest contracts was suspended. On August 13, 1993, the Los Angeles Superior Court approved a plan of rehabilitation for ELIC that became effective on September 3, 1993. Immediately prior to the effective date of the rehabilitation plan, ELIC restructured its obligations, including interest contracts, downward to approximate the value of the underlying assets. Pursuant to the plan, Aurora National Life Assurance Company ("Aurora") assumed the restructured obligations, in exchange for which it received most of ELIC's liquid assets. The remaining assets were placed into trusts managed by a board of trustees separate from Aurora. These trusts will be liquidated over a five-year period and the proceeds will be used to fund payments to investors. Investors had two alternatives consisting of participating either (1) fully ("opt-in") or (2) partially ("opt-out") in the rehabilitation plan. After performing an extensive credit review of Aurora and a financial analysis of the two alternatives available under the plan, the Plan's Trustee made the decision to opt-out of the rehabilitation plan. The Trustee also considered the uncertainty of how the Plan's investments would be treated in a liquidation of Aurora, the ability of Aurora to fund the substantial maturation of contracts scheduled to occur in 1998, and the limited historical and prospective financial information available about Aurora. Substantially all of the remaining frozen assets in the interest contracts issued by ELIC were released during 1996. 10 Associates Investment Plan of Phillips-Van Heusen Corporation (Crystal Brands Division), formerly the Voluntary Investment Plan of Crystal Brands, Inc. Notes to Financial Statements C. Non-Performing Interest Contracts (continued) The Plan's investment in ELIC interest contracts was $237 and $276,523 at December 31, 1996 and 1995, respectively. On July 16, 1991, on application of the Insurance Commissioner of the State of New Jersey, the Superior Court of New Jersey placed the Mutual Benefit Life Insurance Company ("MBLIC") into rehabilitation. Effective June 30, 1991, allocation of interest on MBLIC interest contracts to participants was suspended, and on January 1, 1992, the interest accrual rate on all MBLIC contracts was reduced to 3% in accordance with the recommendation of the Deputy Rehabilitator of MBLIC. On November 10, 1993, the court approved a plan of rehabilitation for MBLIC. The rehabilitation plan provides investors with two alternatives consisting of either (1) participating ("opt-in") in the plan or (2) not participating ("opt-out") in the plan. Investors electing to opt-in are projected to receive 100% of their July 16, 1991 investment balance over a four-year period from December 31, 1999 to December 31, 2003. Investors electing to opt-out will receive approximately 55% of their July 16, 1991 investment balance no later than mid-1996. The Plan's interest contracts with MBLIC are not covered by state guaranty associations. For certain investments not covered by state guaranty associations, including the Plan's interest contracts, the rehabilitation provides, for those investors electing to opt-in, reinsurance by a consortium of insurance companies including the Prudential Insurance Company of America and the Metropolitan Life Insurance Company. The Plan's Trustee elected to opt-in to the MBLIC rehabilitation plan. The Trustee made this decision after review and analysis of the rehabilitation plan and the financial strength of the reinsurers. Based on the MBLIC rehabilitation plan, including the reinsurance provision, no adjustment to the carrying values of MBLIC interest contracts has been made. 11 Associates Investment Plan of Phillips-Van Heusen Corporation (Crystal Brands Division), formerly the Voluntary Investment Plan of Crystal Brands, Inc. Notes to Financial Statements C. Non-Performing Interest Contracts (continued) The Plan's MBLIC interest contracts were credited with interest at 5.25% for January 1, 1996 through September 30, 1996 and 9.25% for October 1, 1996 through December 31, 1996 and 3.55% for 1995. Based on the above, interest contracts issued by ELIC and MBLIC were classified as non-performing at December 31, 1996 and 1995. D. Assets of the Plan Assets of the Plan are held by State Street Bank and are presented in the following table. Investments that represent 5% or more of the Plan's net assets are identified by an asterisk. Assets of the Plan held at December 31, 1996 are as follows: Shares of Registered Investment Companies: Fidelity Intermediate Bond Fund, 33,427 shares $ 336,943 Fidelity Puritan Fund, 94,959 shares* 1,637,087 Fidelity Growth & Income Portfolio, 73,046 shares* 2,244,709 Templeton Foreign Fund, 49,488 shares 512,697 State Street Bank and Trust Company: Short Term Investment Fund, 2,727,133 shares* 2,727,133 Phillips-Van Heusen Corporation Common Stock, 42,873 shares 616,299 Interest Contracts: Executive Life Insurance Company 237 Mutual Benefit Life Insurance Company* 4,351,227 Promissory Notes (Participant Loans) 168,917 Interest and dividends receivable 12,251 -------------------- $ 12,607,500 ==================== 12 Associates Investment Plan of Phillips-Van Heusen Corporation (Crystal Brands Division), formerly the Voluntary Investment Plan of Crystal Brands, Inc. Notes to Financial Statements D. Assets of the Plan (continued) Assets of the Plan held at December 31, 1995 are as follows: Shares of Registered Investment Company: Fidelity Intermediate Bond Fund, 37,099 shares $ 386,205 Fidelity Puritan Fund, 91,039 shares* 1,548,581 Fidelity Growth & Income Portfolio, 70,506 shares* 1,907,185 Templeton Foreign Fund, 58,934 shares 541,012 State Street Bank and Trust Company: Short-Term Investment Fund, 4,142,032 shares* 4,142,032 Phillips-Van Heusen Corporation Common Stock, 19,334,shares 190,923 Interest contracts: Executive Life Insurance Company 276,523 Mutual Benefit Life Insurance Company* 4,297,539 Promissory Notes (Participant Loans) 209,838 Interest and dividends receivable 25,579 -------------------- $ 13,525,417 ===================== During the years ended December 31, 1996 and 1995, the net appreciation in the fair value of Plan investments was $512,540 and $754,787, respectively, as follows: 1996 1995 --------------------------------- Fair Value of Assets Determined by Quoted Market Price: Phillips-Van Heusen Corp. Common Stock $ 165,007 $ (27,514) Fidelity Intermediate Bond Fund (13,453) 7,810 Fidelity Puritan Fund 32,514 30,491 Fidelity Growth & Income Fund 259,007 115,611 Templeton Foreign Fund 69,465 (14,681) --------------------------------- 512,540 111,717 Fair Value Estimated by Trustee: State Street Bank Index Fund -- 643,070 --------------------------------- $ 512,540 $ 754,787 ================================= 13 Associates Investment Plan of Phillips-Van Heusen Corporation (Crystal Brands Division), formerly the Voluntary Investment Plan of Crystal Brands, Inc. Notes to Financial Statements E. Transactions with Parties-in-Interest During the year ended December 31, 1996, the Plan purchased and sold 26,408 and 2,869 shares of the Company's common stock, respectively, and received $5,587 from the Company as payment of dividends on its common stock. During the year ended December 31, 1995, the Plan purchased 19,334 shares and received $191 from the Company as payment of dividends on its common stock. F. Income Taxes The Internal Revenue Service has ruled that the Plan qualifies under Section 401(a) of the Internal Revenue Code ("IRC") and therefore its related trust is tax-exempt under Section 501(a) of the IRC. The Plan's most recent determination letter is dated September 13, 1995. The Administrative Committee of the Plan is not aware of any course of action or series of events that have occurred that might adversely affect the qualified status of the Plan. G. Differences Between Financial Statements and Form 5500 The following is a reconciliation of net assets available for plan benefits per the financial statements to the Form 5500: December 31, 1996 --------------------- Net assets available for plan benefits per the financial statements $ 12,607,500 Amounts allocated to withdrawn participants at December 31, 1996 (255,497) --------------------- Net assets available for plan benefits per the Form 5500 $ 12,352,003 ===================== 14 Associates Investment Plan of Phillips-Van Heusen Corporation (Crystal Brands Division), formerly the Voluntary Investment Plan of Crystal Brands, Inc. Notes to Financial Statements G. Differences Between Financial Statements and Form 5500 (continued) The following is a reconciliation of benefits paid to participants per the financial statements to the Form 5500: Year ended December 31, 1996 ------------------- Benefits paid to participants per the financial statements $ 2,928,680 Add: Amounts allocated to withdrawn participants at December 31, 1996 255,497 Less: Amounts allocated to withdrawn participants at December 31, 1995 (703,948) ------------------- Benefits paid to participants per the Form 5500 $ 2,480,229 =================== Amounts allocated to withdrawn participants on the Form 5500 represent benefit claims that have been processed and approved for payment prior to year-end but not yet paid. 15 Supplemental Schedules Associates Investment Plan of Phillips-Van Heusen Corporation (Crystal Brands Division), formerly the Voluntary Investment Plan of Crystal Brands, Inc. Assets Held for Investment Purposes December 31, 1996
Identity of Issuer Description Cost Market Value - -------------------------------------------------------------------------------------------------- State Street Bank and Trust Company: Short Term Investment Fund 2,727,133 shares $ 2,727,133 $ 2,727,133 Fidelity Intermediate Bond Fund 33,427 shares 340,845 336,943 Fidelity Puritan Fund 94,959 shares 1,581,339 1,637,087 Fidelity Growth & Income Portfolio 73,046 shares 1,895,037 2,244,709 Templeton Foreign Fund 49,488 shares 468,779 512,697 Phillips-Van Heusen Corporation Common Stock 42,873 shares 482,598 616,299 Executive Life Insurance Company Interest Contracts* 237 237 Mutual Benefit Life Insurance Company Interest Contracts* 4,351,227 4,351,227 Promissory Notes Participant loans 168,917 168,917 ----------------------------------- $ 12,016,112 $ 12,595,249 ===================================
* Maturity dates and interest rates are subject to statutory conservatorship rules. See Note C for further information. 16 Associates Investment Plan of Phillips-Van Heusen Corporation (Crystal Brands Division), formerly the Voluntary Investment Plan of Crystal Brands, Inc. Reportable Transactions Year ended December 31, 1996
Purchase Selling Cost of Party Involved Description Price Price Asset Sold - ----------------------------------------------------------------------------------------------------------------------- Category (i)--Individual transactions in excess of 5% of plan assets: State Street Bank and Trust Co. Interest contracts with Mutual Benefit Life Insurance Co. $ 864,293 $ 864,293 State Street Bank and Trust Co. Interest contracts with Mutual Benefit Life Insurance Co. 1,072,036 1,072,036 State Street Bank and Trust Co. Interest contracts with Mutual Benefit Life Insurance Co. 1,203,761 1,203,761 State Street Bank and Trust Co. Interest contracts with Mutual Benefit Life Insurance Co. 1,157,450 1,157,450 State Street Bank and Trust Co. Interest contracts with Mutual Benefit Life Insurance Co. $ 864,293 State Street Bank and Trust Co. Interest contracts with Mutual Benefit Life Insurance Co. 1,072,036 State Street Bank and Trust Co. Interest contracts with Mutual Benefit Life Insurance Co. 1,157,450 State Street Bank and Trust Co. Interest contracts with Mutual Benefit Life Insurance Co. 1,203,761 Net Gain Number of Party Involved Description or (Loss) Transactions - --------------------------------------------------------------------------------------------------------------- Category (i)--Individual transactions in excess of 5% of plan assets: State Street Bank and Trust Co. Interest contracts with Mutual Benefit Life Insurance Co. 1 State Street Bank and Trust Co. Interest contracts with Mutual Benefit Life Insurance Co. 1 State Street Bank and Trust Co. Interest contracts with Mutual Benefit Life Insurance Co. 1 State Street Bank and Trust Co. Interest contracts with Mutual Benefit Life Insurance Co. 1 State Street Bank and Trust Co. Interest contracts with Mutual Benefit Life Insurance Co. 1 State Street Bank and Trust Co. Interest contracts with Mutual Benefit Life Insurance Co. 1 State Street Bank and Trust Co. Interest contracts with Mutual Benefit Life Insurance Co. 1 State Street Bank and Trust Co. Interest contracts with Mutual Benefit Life Insurance Co. 1
17 Associates Investment Plan of Phillips-Van Heusen Corporation (Crystal Brands Division), formerly the Voluntary Investment Plan of Crystal Brands, Inc. Reportable Transactions (continued) Year ended December 31, 1996
Purchase Selling Cost of Party Involved Description Price Price Asset Sold - ----------------------------------------------------------------------------------------------------------------------- Category (iii)--Series of transactions in excess of 5% of plan assets: State Street Bank and Trust Co. Short-Term Investment Fund $ 852,023 $2,266,922 $2,266,922 State Street Bank and Trust Co. Interest contracts with Mutual Benefit Life Insurance Company 4,580,676 4,526,988 4,526,988 Net Gain Number of Party Involved Description or (Loss) Transactions - --------------------------------------------------------------------------------------------------------------- Category (iii)--Series of transactions in excess of 5% of plan assets: State Street Bank and Trust Co. Short-Term Investment Fund 54 State Street Bank and Trust Co. Interest contracts with Mutual Benefit Life Insurance Company 33
There are no category (ii) or (iv) reportable transactions for the year ended December 31, 1996. 18 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Administrative Committee has duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized. PHILLIPS-VAN HEUSEN CORPORATION (CRYSTAL BRANDS DIVISION) ASSOCIATES INVESTMENT PLAN Date: June 24, 1997 By /s/ Pamela N. Hootkin --------------------------------------- Pamela N. Hootkin, Member of Administrative Committee EX-23 2 CONSENT OF INDEPENDANT ACCOUNTANTS [Letterhead Of Ernst & Young LLP] Consent of Independent Accountants We consent to the incorporation by reference in the Registration Statement (Form S-8) pertaining to the Associates Investment of Phillips-Van Heusen Corporation (Crystal Brands Division), formerly the Voluntary Investment Plan of Crystal Brands, Inc., of our report dated June 13, 1997, with respect to the financial statements and supplemental schedules of the above mentioned plans included in this Annual Report (Form 11K) for the year ended December 31, 1996. /s/ Ernst & Young LLP New York, New York June 13,1997 -----END PRIVACY-ENHANCED MESSAGE-----