-----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, IhgM4XUeRdhxcDTH2K2a0fqGrePjuTasMVYdIK1fvbowVEIV9zPQHBxllAP8mMz9 31d+5uzRKetDUeabO03AnA== 0000889429-97-000006.txt : 19970613 0000889429-97-000006.hdr.sgml : 19970613 ACCESSION NUMBER: 0000889429-97-000006 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19961231 FILED AS OF DATE: 19970612 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: PARAGON TRADE BRANDS INC CENTRAL INDEX KEY: 0000889429 STANDARD INDUSTRIAL CLASSIFICATION: CONVERTED PAPER & PAPERBOARD PRODS (NO CONTAINERS/BOXES) [2670] IRS NUMBER: 911554663 STATE OF INCORPORATION: DE FISCAL YEAR END: 1230 FILING VALUES: FORM TYPE: 11-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-11368 FILM NUMBER: 97623171 BUSINESS ADDRESS: STREET 1: 33325 8TH AVENUE SOUTH CITY: FEDERAL WAY STATE: WA ZIP: 98003 BUSINESS PHONE: 2068157000 MAIL ADDRESS: STREET 1: 180 TECHNOLOGY PKWY CITY: NORCROSS STATE: GA ZIP: 30092 11-K 1 PARAGON RETIREMENT INVESTMENT SAVINGS PROGRAM SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 11-K ANNUAL REPORT PURSUANT TO SECTION 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 [X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 1996 [ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to ----------- ------------ Commission file number 1-11368 A. Full title of the plan and the address of the plan, if different from that of the issuer named below: PARAGON RETIREMENT INVESTMENT SAVINGS MANAGEMENT PLAN B. Name of issuer of the securities held pursuant to the plan and the address of its principal executive office: Paragon Trade Brands, Inc. 180 Technology Parkway Norcross, Georgia 30092 Page 1 of 19 Exhibit Index at Page 17 I. REPORT Financial Statements and Schedules as of December 31, 1996 and December 31, 1995, Together With Auditors' Report, Prepared in Accordance With the Financial Reporting Requirements of ERISA. 2 PARAGON RETIREMENT INVESTMENT SAVINGS MANAGEMENT PLAN FINANCIAL STATEMENTS AND SCHEDULES AS OF DECEMBER 31, 1996 AND 1995 TOGETHER WITH AUDITORS' REPORT 3 PARAGON RETIREMENT INVESTMENT SAVINGS MANAGEMENT PLAN FINANCIAL STATEMENTS AND SCHEDULES DECEMBER 31, 1996 AND 1995 TABLE OF CONTENTS REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS FINANCIAL STATEMENTS Statement of Net Assets Available for Benefits--December 31, 1996 Statement of Net Assets Available for Benefits--December 31, 1995 Statement of Changes in Net Assets Available for Benefits for the Year Ended December 31, 1996 NOTES TO FINANCIAL STATEMENTS SCHEDULES SUPPORTING FINANCIAL STATEMENTS Schedule I: Item 27a--Schedule of Assets Held for Investment Purposes--December 31, 1996 Schedule II: Item 27d--Schedule of Reportable Transactions for the Year Ended December 31, 1996 Schedule III:Item 27b--Schedule of Loans in Default--December 31, 1996 4 REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS To the Plan Administrator of The Paragon Retirement Investment Savings Management Plan: We have audited the accompanying statements of net assets available for benefits of the PARAGON RETIREMENT INVESTMENT SAVINGS MANAGEMENT PLAN as of December 31, 1996 and 1995, and the related statement of changes in net assets available for benefits for the year ended December 31, 1996. 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 available for benefits of Paragon Retirement Investment Savings Management Plan as of December 31, 1996 and 1995, and the changes in its net assets available for benefits for the year ended December 31, 1996, in conformity with generally accepted accounting principles. Our audits were performed 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, reportable transactions, and loans in default are presented for the purpose of additional analysis and are not a required part of the basic financial statements but are supplementary information required by the Department of Labor Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. The fund information in the statements of net assets available for benefits and the statement of changes in net assets available for benefits is presented for purposes of additional analysis rather than to present the net assets available for benefits and changes in net assets available for benefits of each fund. The supplemental schedules and fund information 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 Atlanta, Georgia April 18, 1997 5 PARAGON RETIREMENT INVESTMENT SAVINGS MANAGEMENT PLAN STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS DECEMBER 31, 1996
PARTICIPANT-DIRECTED -------------------------------------------------------------------------------------------- VANGUARD VANGUARD VANGUARD VANGUARD VANGUARD PARAGON WELLESLEY VANGUARD U.S. INTERNATIONAL BOND INVESTMENT COMMON INCOME INDEX 500 VANGUARD GROWTH GROWTH INDEX CONTRACT STOCK FUND PORTFOLIO WINDSOR II FUND FUND FUND TRUST FUND ---------- ---------- ----------- ---------- ------------ ---------- ---------- ---------- ASSETS: Investments, at fair value: Registered investment companies $1,589,138 $2,392,082 $2,578,130 $2,456,768 $447,328 $489,067 $703,973 $6,584,701 Participant loans 0 0 0 0 0 0 0 0 ---------- ---------- ---------- ---------- -------- -------- -------- ---------- 1,589,138 2,392,082 2,578,130 2,456,768 447,328 489,067 703,973 6,584,701 Employee contributions receivable 25,332 26,889 25,994 26,479 6,337 7,426 7,939 10,989 Employer contributions receivable 0 0 0 0 0 0 0 2,043,863 Loan payments receivable 2,552 1,754 2,183 1,649 739 681 440 3,235 ---------- ---------- ---------- ---------- -------- -------- -------- ---------- NET ASSETS AVAILABLE FOR BENEFITS $1,617,022 $2,420,725 $2,606,307 $2,484,896 $454,404 $497,174 $712,352 $8,642,788 ========== ========== ========== ========== ======== ======== ======== ==========
LOAN FUND TOTAL ---------- ---------- ASSETS: Investments, at fair value: Registered investment companies $ 0 $17,241,187 Participant loans 389,211 389,211 -------- ----------- 389,211 17,630,398 Employee contributions receivable 0 137,385 Employer contributions receivable 0 2,043,863 Loan payments receivable (13,233) 0 -------- ---------- NET ASSETS AVAILABLE FOR BENEFITS $375,978 $19,811,646 ========= ===========
The accompanying notes are an integral part of this statement. 6 PARAGON RETIREMENT INVESTMENT SAVINGS MANAGEMENT PLAN STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS DECEMBER 31, 1995
PARTICIPANT-DIRECTED -------------------------------------------------------------------------------------------- VANGUARD VANGUARD VANGUARD VANGUARD VANGUARD PARAGON WELLESLEY VANGUARD U.S. INTERNATIONAL BOND INVESTMENT COMMON INCOME INDEX 500 VANGUARD GROWTH GROWTH INDEX CONTRACT STOCK FUND PORTFOLIO WINDSOR II FUND FUND FUND TRUST FUND ---------- ---------- ----------- ---------- ------------- ---------- ----------- ---------- ASSETS: Investments, at fair value: Registered investment companies $1,284,420 $1,189,080 $1,504,909 $1,385,943 $143,295 $411,177 $504,974 $5,257,372 Participant loans 0 0 0 0 0 0 0 0 ---------- ---------- ---------- ---------- -------- -------- -------- ---------- 1,284,420 1,189,080 1,504,909 1,385,943 143,295 411,177 504,974 5,257,372 Employee contributions receivable 33,589 26,544 29,254 28,220 3,370 9,369 9,320 9,653 Employer contributions receivable 0 0 0 0 0 0 0 772,278 Loan payments receivable 1,703 1,159 1,450 988 354 554 409 1,635 ---------- ---------- ---------- ---------- -------- -------- -------- ---------- Total assets 1,319,712 1,216,783 1,535,613 1,415,151 147,019 421,100 514,703 6,040,938 LIABILITIES: Excess contributions 0 0 0 0 0 0 0 0 ---------- ---------- ---------- ---------- -------- -------- -------- ---------- NET ASSETS AVAILABLE FOR BENEFITS $1,319,712 $1,216,783 $1,535,613 $1,415,151 $147,019 $421,100 $514,703 $6,040,938 ========== ========== ========== ========== ======== ======== ======== ==========
LOAN FUND OTHER TOTAL -------- ------- ---------- ASSETS: Investments, at fair value: Registered investment companies $ 0 $ 0 $11,681,170 Participant loans 190,225 0 190,225 --------- --------- ------------ 190,225 0 11,871,395 Employee contributions receivable 0 0 149,319 Employer contributions receivable 0 0 772,278 Loan payments receivable (8,252) 0 0 --------- --------- ------------ Total assets 181,973 0 12,792,992 LIABILITIES: Excess contributions 0 (28,504) (28,504) --------- --------- ------------ NET ASSETS AVAILABLE FOR BENEFITS $181,973 $ (28,504) $12,764,488 ========= =========== ===========
The accompanying notes are an integral part of this statement. 7 PARAGON RETIREMENT INVESTMENT SAVINGS MANAGEMENT PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS FOR THE YEAR ENDED DECEMBER 31, 1996
PARTICIPANT-DIRECTED ---------------------------------------------------------------------------------------------- VANGUARD VANGUARD VANGUARD VANGUARD VANGUARD PARAGON WELLESLEY VANGUARD U.S. INTERNATIONAL BOND INVESTMENT COMMON INCOME INDEX 500 VANGUARD GROWTH GROWTH INDEX CONTRACT STOCK FUND PORTFOLIO WINDSOR II FUND FUND FUND TRUST FUND ------------ ---------- ----------- ---------- ------------- ---------- ----------- -------- ASSETS: ASSETS:NET ASSETS AVAILABLE FOR BENEFITS, BEGINNING OF YEAR $1,319,712 $1,216,783 $1,535,613 $1,415,151 $147,019 $ 421,100 $514,703 $6,040,938 ---------- ---------- ---------- ---------- -------- ---------- -------- ---------- SOURCES: Employee contributions 348,018 352,758 361,054 346,482 71,118 108,816 112,252 179,853 Employer contributions 0 0 0 0 0 0 0 2,565,596 Rollovers 38,208 172,093 170,344 158,191 15,725 7,753 93,226 35,307 Loan payments 32,441 19,810 25,754 18,919 6,545 11,008 9,995 36,793 Investment income 127,610 47,122 177,141 179,939 19,282 28,737 37,476 0 Appreciation (depreciation) in fair value of assets 9,828 325,707 268,620 263,821 22,312 (11,922) 0 1,487,840 Distribution of excess contributions 0 0 0 0 0 0 0 0 Interfund transfers 137,508 430,387 430,680 368,677 208,723 29,140 299,058 153,546 ---------- ---------- ---------- ---------- -------- ---------- -------- ---------- 693,613 1,347,877 1,433,593 1,336,029 343,705 173,532 552,007 4,458,935 ---------- ---------- ---------- ---------- -------- ---------- -------- ---------- APPLICATIONS: Benefit withdrawals 83,882 80,350 141,819 142,171 13,563 22,512 288,822 289,151 Loan withdrawals 67,066 46,029 69,910 45,208 9,085 16,074 17,563 92,259 Fees and expenses 761 1,545 966 1,010 143 76 189 26,769 Interfund transfers 244,594 16,011 150,204 77,895 13,529 58,796 47,784 1,448,906 ---------- ---------- ---------- ---------- -------- ---------- -------- ---------- 396,303 143,935 362,899 266,284 36,320 97,458 354,358 1,857,085 ---------- ---------- ---------- ---------- -------- ---------- -------- ---------- NET ASSETS AVAILABLE FOR BENEFITS, END OF YEAR $1,617,022 $2,420,725 $2,606,307 $2,484,896 $454,404 $ 497,174 $712,352 $8,642,788 ========== ========== ========== ========== ======== ========== ======== ==========
LOAN FUND OTHER TOTAL --------- -------- ------- ASSETS: ASSETS:NET ASSETS AVAILABLE FOR BENEFITS, BEGINNING OF YEAR $181,973 $(28,504) $12,764,488 --------- --------- ----------- SOURCES: Employee contributions 0 0 1,880,351 Employer contributions 0 0 2,565,596 Rollovers 0 0 690,847 Loan payments (161,265) 0 0 Investment income 22,914 0 640,221 Appreciation (depreciation) in fair value of assets 0 0 2,366,206 Distribution of excess contributions 0 28,504 28,504 Interfund transfers 0 0 2,057,719 --------- --------- ----------- (138,351) 28,504 10,229,444 --------- --------- ----------- APPLICATIONS: Benefit withdrawals 30,838 0 1,093,108 Loan withdrawals (363,194) 0 0 Fees and expenses 0 0 31,459 Interfund transfers 0 0 2,057,719 --------- --------- ----------- (332,356) 0 3,182,286 --------- --------- ----------- NET ASSETS AVAILABLE FOR BENEFITS, END OF YEAR $375,978 $ 0 $19,811,646 ========= ======== ===========
The accompanying notes are an integral part of this statement. 8 PARAGON RETIREMENT INVESTMENT SAVINGS MANAGEMENT PLAN NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1996 AND 1995 1. PLAN DESCRIPTION The following description of the Paragon Retirement Investment Savings Management Plan (the "Plan") is provided for general informational purposes only. Participants should refer to the plan agreement for a more comprehensive description of the Plan's provisions. GENERAL The Plan is a defined contribution plan established by Paragon Trade Brands, Inc. (the "Company"), under the provisions of Sections 401(a) and 401(k) of the Internal Revenue Code ("IRC"), for the benefit of eligible employees of the Company. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974, as amended ("ERISA"). The Paragon Profit Sharing Plan ("Profit Sharing Plan") was originally adopted effective the closing date of the initial public offering in January 1993 by Weyerhaeuser Company of the shares of common stock of the Company. The Paragon 401(k) Savings Plan ("401(k) Plan") was originally adopted, effective February 2, 1993, by the Company. Effective October 1, 1993, the Profit Sharing Plan and the 401(k) Plan were merged and restated as the Plan. Effective January 1, 1995, the Plan was renamed the Paragon Retirement Investment Savings Management Plan. ELIGIBILITY All regular employees of the Company who have completed one year of service are eligible to participate in the Plan, except for employees covered by a collective bargaining agreement that does not provide for participation in the Plan, employees who are nonresident aliens and earn no U.S.-source income, employees classified as bag stickering, and hourly paid administrative employees. Effective January 1, 1996, former employees of Pope & Talbot, Inc. received credit for years of service with Pope & Talbot, Inc. or any of its subsidiaries. PLAN ADMINISTRATION The Plan is administered by the plan administrative committee (the "Committee"), which is appointed by the board of directors of the Company. The Plan's investments are held under a trust agreement with Vanguard Fiduciary Trust Company ("Vanguard"). 9 CONTRIBUTIONS Eligible employees can contribute up to 15% of compensation, as defined by the Plan, subject to certain limitations under the IRC. The Company provides a matching contribution equal to 50% of each participant's contribution that does not exceed 6% of compensation. The Company may, at its discretion, make profit-sharing contributions to the Plan in amounts to be determined by the board of directors. Forfeitures are used to reduce future matching and profit sharing contributions. The balance of unutilized forfeitures as of December 31, 1996 and 1995 was $82,642 and $137,205, respectively. VESTING Participants are immediately vested in their contributions and the actual earnings thereon. Participants become fully vested in matching and profit sharing contributions when they attain normal retirement age, as defined by the Plan, or after completing five years of service, whichever occurs first. Upon a participant's death or disability, account balances become fully vested. BENEFITS Upon termination of service, a participant may elect to receive currently or defer receipt of an amount equal to the value of the vested interest in his or her account, if the vested interest is greater than $3,500. For vested interests not exceeding $3,500, a distribution will be made to the participant within 60 days after the last day of the plan year in which the termination occurs. All benefit payments are made in lump-sum distributions. Special distribution rules apply to benefit payments upon attainment of age 70 1/2 and in-service withdrawals. In these cases, the plan document should be consulted. PARTICIPANT ACCOUNTS Individual accounts are maintained for each of the Plan's participants to reflect the participant's contributions, matching and profit sharing contributions, as well as the participant's share of the Plan's income or loss and any related administrative expenses. The trust funds are valued on each business day. Participant accounts are adjusted as of each valuation date to reflect any distributions made and contributions received, including income or loss on trust fund investments. Allocations of earnings, gains and losses are based on the proportion of each participant's account invested in a particular fund to the total of all participant account balances invested in such fund. INVESTMENT OPTIONS Upon enrollment in the Plan, a participant may direct employee contributions in 10% increments in any of the following eight investment options: o Vanguard Wellesley Income Fund--seeks current income consistent with reasonable risk by investing in a portfolio of high-quality bonds and stocks. The fund also seeks the potential for moderate growth of capital. 10 o Vanguard Index 500 Portfolio--seeks to provide investment results that correspond to the price and yield performance of publicly traded stocks, in the aggregate, as represented by the Standard & Poor's 500 Composite Stock Price Index. o Vanguard Windsor II--seeks to provide long-term capital appreciation and dividend income by investing in common stocks. As a secondary objective, the fund also seeks a reasonable level of current income. o Vanguard U.S. Growth Fund--seeks long-term capital appreciation by investing in a diversified portfolio of common stocks with above-average growth potential. o Vanguard International Growth Fund--seeks long-term capital growth by investing in the common stocks of companies based outside of the United States. o Vanguard Bond Index Fund--seeks to match the total return of the Lehman Brothers Aggregate Bond Index. o Vanguard Investment Contract Trust--seeks to provide an attractive rate of interest and safety of principal. o Paragon Common Stock Fund--invests primarily in Company common stock. Profit sharing and matching contributions are made to this account and may be transferred to the other investment options at the discretion of the participant. A participant may change his or her investment directions daily. LOANS TO PARTICIPANTS A participant may borrow up to the lesser of 50% of his or her vested account balance, excluding profit sharing contributions, or $50,000, reduced by the highest loan amount outstanding during the preceding 12-month period, with a minimum loan amount of $1,000. Loans are repayable through payroll deductions over periods ranging up to 60 months, except for loans used to purchase the participant's primary residence, which can be repaid over a longer period. All loans bear interest at rates set by the Committee, based on the rates charged by commercial lenders for similar loans. As of December 31, 1996, loans totaling $11,808 were in default with respect to interest and principal payments. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BASIS OF ACCOUNTING The accompanying financial statements are prepared on the accrual basis of accounting. 11 INCOME RECOGNITION 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 assets includes both realized and unrealized appreciation (depreciation) and is computed using the average cost method, based on the beginning-of-year market value, or the cost of the security if it is acquired during the year. INVESTMENT VALUATION 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 for the Plan at year-end. The value for the Paragon Common Stock Fund is based on the closing share price of the Company's common stock. Investments in the Paragon Common Stock Fund are assigned units of participation. The unit value of the fund is determined daily based on the fair market value of the underlying net assets. The total units assigned to participants at December 31, 1996 and 1995 were 800,085 and 815,096, respectively. The unit value at December 31, 1996 and 1995 was $8.23 and $6.45, respectively. ADMINISTRATIVE EXPENSES Investment advisory fees for portfolio management by Vanguard Group, Inc. are paid directly from fund earnings. Other administrative expenses are paid by the Company. USE OF ESTIMATES The preparation of the financial statements in conformity with generally accepted accounting principles requires the Plan's management to use estimates and assumptions that affect the accompanying financial statements and disclosures. Actual results could differ from those estimates. OTHER Excess contributions to active plan participants, as presented in the statement of net assets available for benefits, represent the excess employee contributions, above the IRC limitations, made during 1995 which were returned to those employees. 3. TAX STATUS The Internal Revenue Service has determined and informed the Company by a letter dated September 18, 1995, that the Plan is designed in accordance with applicable sections of the IRC. The Plan has been amended since receiving the determination letter. However, the Plan Administrator believes that the Plan is designed and is currently being operated in compliance with the applicable requirements of the IRC. Therefore, the plan administrator believes that the Plan was qualified and that the related trust was tax-exempt as of December 31, 1996 and 1995. 12 4. 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 fully vested in their account balances. 5. SUBSEQUENT EVENT As of December 31, 1996, Paragon Trade Brands, Inc. common stock was valued at $30. However, the Company's stock closed at $16 on April 18, 1997. 6. RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500 The following is a reconciliation of net assets available for benefits according to the financial statements to the net assets available for benefits as reported on the Plan's Form 5500: DECEMBER 31 ------------------------ 1996 1995 ------------ ----------- Net assets available for benefits per the financial statements $19,811,646 $12,764,488 Amounts allocated to withdrawing participants (56,643) 0 ------------ ----------- Net assets available for benefits per Form 5500 $19,755,003 $12,764,488 ============ =========== The following is a reconciliation of benefits paid to participants according to the financial statements to benefits paid to participants as reported on the Plan's Form 5500 for the year ended December 31, 1996: Benefits paid to participants per the financial statements $1,093,108 Add amounts allocated to withdrawing participants at December 31, 1996 56,643 ---------- Benefits paid to participants per Form 5500 $1,149,751 ========== Amounts allocated to withdrawing participants are recorded on the Form 5500 for benefit claims that have been processed and approved for payment prior to December 31 but not paid as of that date. 13 SCHEDULE I PARAGON RETIREMENT INVESTMENT SAVINGS MANAGEMENT PLAN ITEM 27A--SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES DECEMBER 31, 1996 SHARES/ CURRENT ISSUER/DESCRIPTION UNITS COST VALUE ----------------------------------------- -------- ----------- ----------- * VANGUARD--WELLESLEY INCOME FUND 77,481 $ 1,501,381 $1,589,138 * VANGUARD--INDEX 500 PORTFOLIO 34,588 1,867,951 2,392,082 * VANGUARD--WINDSOR II 108,188 2,176,885 2,578,130 * VANGUARD--U.S. GROWTH FUND 103,486 1,995,936 2,456,768 * VANGUARD--INTERNATIONAL GROWTH FUND 27,177 418,192 447,328 * VANGUARD--BOND INDEX FUND 49,702 486,823 489,067 * VANGUARD--INVESTMENT CONTRACT TRUST 703,973 703,973 703,973 * PARAGON COMMON STOCK FUND 800,085 4,405,199 6,584,701 PARTICIPANT LOANS (INTEREST RATES FROM 9.25% TO 10.75%) 0 375,978 375,978 ----------- ----------- $13,932,318 $17,617,165 =========== =========== *Indicates a party-in-interest. The accompanying notes are an integral part of this schedule. 14 SCHEDULE II PARAGON RETIREMENT INVESTMENT SAVINGS MANAGEMENT PLAN ITEM 27D--SCHEDULE OF REPORTABLE TRANSACTIONS FOR THE YEAR ENDED DECEMBER 31, 1996
NUMBER NUMBER IDENTITY OF OF PURCHASE PURCHASE OF SALES SELLING NET PARTY INVOLVED DESCRIPTION OF ASSET TRANSACTIONS PRICE TRANSACTIONS PRICE COST GAIN --------------------- --------------------- ------------- -------- ------------- --------- ------ ------ * VANGUARD GROUP, INC. Wellesley Income Fund 74 $ 691,193 94 $ 397,197 $ 377,498 $ 19,699 * VANGUARD GROUP, INC. Vanguard Index 500 109 1,021,230 78 151,147 128,125 23,022 Portfolio * VANGUARD GROUP, INC. Vanguard Windsor II 122 1,167,501 98 363,535 305,237 58,298 * VANGUARD GROUP, INC. Vanguard U.S. Growth Fund 93 1,073,286 80 269,589 207,821 61,768 * VANGUARD GROUP, INC. Investment Contract Trust 71 553,357 62 354,964 354,964 0 * PARAGON TRADE BRANDS, INC. Paragon Common Stock Fund 56 1,743,729 193 1,969,040 1,537,246 431,794
*Indicates a party-in-interest. The accompanying notes are an integral part of this schedule. 15 SCHEDULE III PARAGON RETIREMENT INVESTMENT SAVINGS MANAGEMENT PLAN ITEM 27B--SCHEDULE OF LOANS IN DEFAULT DECEMBER 31, 1996
AMOUNT RECEIVED DURING UNPAID ORIGINAL REPORTING YEAR BALANCE AMOUNT OVERDUE AMOUNT -------------- AT END -------------- IDENTITY OF OBLIGATOR OF LOAN PRINCIPAL INTEREST OF YEAR DETAILED DESCRIPTION OF LOAN PRINCIPAL INTEREST --------------------- ------- ------------------ ------- ---------------------------- --------- -------- Issued October 11, 1994 through through April 17, 1996; matures VARIOUS PLAN April 24, 1998 through May 17, 1999; PARTICIPANTS $12,997 $1,027 $231 $11,808 interest rates 9.25% TO 10.25% $3,428 $540
The accompanying notes are an integral part of this schedule. 16 II. EXHIBITS Exhibit Page ------- ---- 23.1 Consent of Accountants 19 17 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. PARAGON TRADE BRANDS, INC. PROFIT SHARING AND SAVINGS PLAN By: /s/ Stanley L. Bulger ------------------------ Stanley L. Bulger Vice President - Human Resources June 9, 1997 18 EX-23.1 2 CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS EXHIBIT 23.1 CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS As independent public accountants, we hereby consent to the incorporation by reference of our report dated April 18, 1997, on the financial statements of the Paragon Retirement Investment Savings Management Plan, included in the Paragon Retirement Investment Savings Management Plan annual report on Form 11-K for the year ended December 31, 1996, into the Company's previously filed Registration Statement File No. 33-73726 on Form S-8. Arthur Andersen LLP Atlanta, Georgia June 9, 1997 19 -----END PRIVACY-ENHANCED MESSAGE-----