-----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, F6Q8YugAoelSTrOKLKr0OHVLiwmjA86j/ZDcjixLVWuuugMjHYPJT+4CEKA59iQo b3C7g4wcBu+8OgaYlpUigw== 0000950135-99-003336.txt : 19990630 0000950135-99-003336.hdr.sgml : 19990630 ACCESSION NUMBER: 0000950135-99-003336 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19981231 FILED AS OF DATE: 19990629 FILER: COMPANY DATA: COMPANY CONFORMED NAME: TALBOTS INC CENTRAL INDEX KEY: 0000912263 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-WOMEN'S CLOTHING STORES [5621] IRS NUMBER: 411111318 STATE OF INCORPORATION: DE FISCAL YEAR END: 0129 FILING VALUES: FORM TYPE: 11-K SEC ACT: SEC FILE NUMBER: 001-12552 FILM NUMBER: 99654488 BUSINESS ADDRESS: STREET 1: 175 BEAL ST CITY: HINGHAM STATE: MA ZIP: 02043 BUSINESS PHONE: 7817497600 MAIL ADDRESS: STREET 1: 175 BEAL ST CITY: HINGHAM STATE: MA ZIP: 02043 11-K 1 TALBOTS,INC. FORM 11-K 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 11-K (Mark One) [X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 1998 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM ____________________ TO _________________ Commission file number: 1-12552 THE TALBOTS, INC. RETIREMENT SAVINGS VOLUNTARY PLAN (Title of the Plan) THE TALBOTS, INC. (Issuer of the securities held) DELAWARE 41-1111318 - ------------------------------- ------------------- (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 175 Beal Street, Hingham, Massachusetts 02043 - ---------------------------------------- ------------------- (Address of principal executive offices) (Zip Code) (781) 749-7600 ---------------------------------------------------- (Registrant's telephone number, including area code) 2 ======================================== THE TALBOTS, INC. RETIREMENT SAVINGS VOLUNTARY PLAN Financial Statements as of and for the Years Ended December 31, 1998 and 1997 and Supplemental Schedules as of and for the Year Ended December 31, 1998 and Independent Auditors' Report 3 THE TALBOTS, INC. RETIREMENT SAVINGS VOLUNTARY PLAN TABLE OF CONTENTS - -------------------------------------------------------------------------------- PAGE INDEPENDENT AUDITORS' REPORT 1 FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997: Statements of Net Assets Available for Benefits, with Fund Information 2 Statements of Changes in Net Assets Available for Benefits, with Fund Information 3 Notes to Financial Statements 4-6 SUPPLEMENTAL SCHEDULES AS OF AND FOR THE YEAR ENDED DECEMBER 31, 1998: Item 27a - Schedule of Assets Held for Investment Purposes 7-13 Item 27d - Schedule of Reportable Transactions 14 Signatures 15 Exhibit I - Independent Auditors' Consent 16 Schedules required under the Employee Retirement Income Security Act of 1974, other than the schedules listed above, are omitted because of the absence of the conditions under which the schedules are required. 4 INDEPENDENT AUDITORS' REPORT Trustees of The Talbots, Inc. Retirement Savings Voluntary Plan: We have audited the accompanying statements of net assets available for benefits, with fund information, of The Talbots, Inc. Retirement Savings Voluntary Plan (the "Plan") as of December 31, 1998 and 1997, and the related statements of changes in net assets available for benefits, with fund information, for the years then ended. These financial statements are the responsibility of the Plan's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, such financial statements present fairly, in all material respects, the net assets available for benefits of the Plan at December 31, 1998 and 1997, and the changes in net assets available for benefits for the years then ended in conformity with generally accepted accounting principles. Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedules listed in the Table of Contents 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's 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 statements of changes in net assets available for benefits is presented for purposes of additional analysis rather than to present the net assets available for plan benefits and changes in net assets available for plan benefits of each fund. These schedules are the responsibility of plan management. The supplemental schedules and fund information have been subjected to the auditing procedures applied in our audits of the basic financial statements and, in our opinion, are fairly stated in all material respects when considered in relation to the basic financial statements taken as a whole. /s/ DELOITTE & TOUCHE LLP - ------------------------- June 16, 1999 5 THE TALBOTS, INC. RETIREMENT SAVINGS VOLUNTARY PLAN STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS, WITH FUND INFORMATION DECEMBER 31, 1998 AND 1997 ================================================================================
1998 -------------------------------------------------------------------------- FUND INFORMATION ---------------------------------------------------------- FIXED TALBOTS INCOME EQUITY STOCK BALANCED FUND FUND FUND FUND TOTAL ----------- ----------- ---------- ----------- ----------- ASSETS: Investments, at fair value: Participant loans $ 1,783,871 $ -- $ -- $ -- $ 1,783,871 Other 9,962,772 27,496,422 7,275,889 16,861,993 61,597,076 ----------- ----------- ---------- ----------- ----------- Total investments 11,746,643 27,496,422 7,275,889 16,861,993 63,380,947 Receivables: Employer contributions receivable 81,348 302,879 49,342 161,912 595,481 Employee contributions receivable 75,459 280,278 43,120 140,139 538,996 Due from broker for investments sold -- 160,028 -- -- 160,028 Dividends and interest receivable -- 49,466 223 86,599 136,288 Other receivable -- 812 -- -- 812 ----------- ----------- ---------- ----------- ----------- Total assets 11,903,450 28,289,885 7,368,574 17,250,643 64,812,552 ----------- ----------- ---------- ----------- ----------- LIABILITIES: Payable for investments purchased -- 175,300 -- 156,406 331,706 Accrued management fee 3,176 48,937 3,588 22,832 78,533 ----------- ----------- ---------- ----------- ----------- Total liabilities 3,176 224,237 3,588 179,238 410,239 ----------- ----------- ---------- ----------- ----------- NET ASSETS AVAILABLE FOR BENEFITS $11,900,274 $28,065,648 $7,364,986 $17,071,405 $64,402,313 =========== =========== ========== =========== =========== 1997 -------------------------------------------------------------------------- FUND INFORMATION ---------------------------------------------------------- FIXED TALBOTS INCOME EQUITY STOCK BALANCED FUND FUND FUND FUND TOTAL ----------- ----------- ---------- ----------- ----------- ASSETS: Investments, at fair value: Participant loans $ 1,739,787 $ -- $ -- $ -- $ 1,739,787 Other 9,685,039 28,254,226 4,355,440 12,837,626 55,132,331 ----------- ----------- ---------- ----------- ----------- Total investments 11,424,826 28,254,226 4,355,440 12,837,626 56,872,118 Receivables: Employer contributions receivable 76,295 266,520 56,653 120,485 519,953 Employee contributions receivable -- -- -- -- -- Due from broker for investments sold -- 504,631 -- -- 504,631 Dividends and interest receivable 42 53,927 77 75,648 129,694 Other receivable -- 812 -- -- 812 ----------- ----------- ---------- ----------- ----------- Total assets 11,501,163 29,080,116 4,412,170 13,033,759 58,027,208 ----------- ----------- ---------- ----------- ----------- LIABILITIES: Payable for investments purchased -- 417,045 -- -- 417,045 Accrued management fee 8,593 68,872 4,298 39,393 121,156 ----------- ----------- ---------- ----------- ----------- Total liabilities 8,593 485,917 4,298 39,393 538,201 ----------- ----------- ---------- ----------- ----------- NET ASSETS AVAILABLE FOR BENEFITS $11,492,570 $28,594,199 $4,407,872 $12,994,366 $57,489,007 =========== =========== ========== =========== ===========
See notes to financial statements. -2- 6 THE TALBOTS, INC. RETIREMENT SAVINGS VOLUNTARY PLAN STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS, WITH FUND INFORMATION YEARS ENDED DECEMBER 31, 1998 AND 1997 ================================================================================
1998 ----------------------------------------------------------------------------- FUND INFORMATION ------------------------------------------------------------- FIXED TALBOTS INCOME EQUITY STOCK BALANCED FUND FUND FUND FUND TOTAL ----------- ----------- ---------- ----------- ----------- ADDITIONS: Transfers $ (459,666) $ (332,970) $ (395,742) $ 1,188,378 $ -- Employer contributions 308,115 1,171,049 199,894 581,087 2,260,145 Employee contributions 943,325 3,527,416 621,638 1,634,005 6,726,384 Rollover contributions 804 25,130 1,783 4,346 32,063 Dividend and interest income 611,500 640,446 103,699 488,920 1,844,565 Net appreciation in fair value of investments -- -- 2,986,821 1,754,310 4,741,131 ----------- ----------- ---------- ----------- ----------- Total additions 1,404,078 5,031,071 3,518,093 5,651,046 15,604,288 ----------- ----------- ---------- ----------- ----------- DEDUCTIONS: Benefit payments 945,393 2,914,098 529,986 1,475,750 5,865,227 Investment management fee 50,981 292,573 30,993 98,257 472,804 Net depreciation in fair value of investments -- 2,352,951 -- -- 2,352,951 ----------- ----------- ---------- ----------- ----------- Total deductions 996,374 5,559,622 560,979 1,574,007 8,690,982 ----------- ----------- ---------- ----------- ----------- INCREASE (DECREASE) 407,704 (528,551) 2,957,114 4,077,039 6,913,306 NET ASSETS AVAILABLE FOR BENEFITS: Beginning of year 11,492,570 28,594,199 4,407,872 12,994,366 57,489,007 ----------- ----------- ---------- ----------- ----------- End of year $11,900,274 $28,065,648 $7,364,986 $17,071,405 $64,402,313 =========== =========== ========== =========== =========== 1997 ----------------------------------------------------------------------------- FUND INFORMATION ------------------------------------------------------------- FIXED TALBOTS INCOME EQUITY STOCK BALANCED FUND FUND FUND FUND TOTAL ----------- ----------- ---------- ----------- ----------- ADDITIONS: Transfers $ (41,322) $ 367,689 $ (629,376) $ 303,009 $ -- Employer contributions 338,775 1,070,221 267,891 493,038 2,169,925 Employee contributions 1,016,532 3,043,405 868,808 1,395,776 6,324,521 Rollover contributions 3,387 25,498 335 25,370 54,590 Dividend and interest income 613,704 588,132 99,635 407,796 1,709,267 Net appreciation in fair value of investments -- 4,105,234 -- 1,856,544 5,961,778 ----------- ----------- ----------- ----------- ----------- Total additions 1,931,076 9,200,179 607,293 4,481,533 16,220,081 ----------- ----------- ----------- ----------- ----------- DEDUCTIONS: Benefit payments 704,464 1,503,036 329,445 715,609 3,252,554 Investment management fee 45,518 274,823 35,325 108,387 464,053 Net depreciation in fair value of investments -- -- 2,509,497 -- 2,509,497 ----------- ----------- ----------- ----------- ----------- Total deductions 749,982 1,777,859 2,874,267 823,996 6,226,104 ----------- ----------- ----------- ----------- ----------- INCREASE (DECREASE) 1,181,094 7,422,320 (2,266,974) 3,657,537 9,993,977 NET ASSETS AVAILABLE FOR BENEFITS: Beginning of year 10,311,476 21,171,879 6,674,846 9,336,829 47,495,030 ----------- ----------- ----------- ----------- ----------- End of year $11,492,570 $28,594,199 $ 4,407,872 $12,994,366 $57,489,007 =========== =========== =========== =========== ===========
See notes to financial statements. -3- 7 THE TALBOTS, INC. RETIREMENT SAVINGS VOLUNTARY PLAN NOTES TO FINANCIAL STATEMENTS ================================================================================ 1. DESCRIPTION OF THE PLAN The following brief description of The Talbots, Inc. Retirement Savings Voluntary Plan (the "Plan") is for general information purposes only. Participants should refer to the Plan document for more complete information. GENERAL INFORMATION - The Plan is a defined contribution 401(k) plan established by The Talbots, Inc. (the "Company") on January 1, 1989 and amended and restated effective as of November 1, 1993 for the employees of the Company. Employees are eligible to participate on the January 1, April 1, July 1 or October 1 coincident with or next following completion of one year of service and attainment of age 21. State Street Bank and Trust Company serves as trustee of the Plan. Watson Wyatt Worldwide serves as the record keeper for the Plan. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 ("ERISA"). PARTICIPATION - Once an employee becomes eligible to participate in the Plan, he/she may elect to become a participant by entering into a compensation reduction authorization agreement. This agreement provides that the participant accept a reduction in compensation in an amount equal to 1% to 15% of his/her compensation. The maximum employee deferral is the lesser of 15% of the participant's compensation or $10,000 (for 1998) indexed for inflation in accordance with the Internal Revenue Code. CONTRIBUTIONS - During each plan year, the Company makes matching contributions. The Company will determine each quarter the rate at which the matching contribution, if any, will be made. The Company-matching contribution for the periods covered by these financial statements was 50% of the employee contribution up to 6% of the employee compensation. Participants must be employed as of the last day of the quarter and have made plan contributions in order to receive a matching contribution. VESTING - All employee contributions are 100% vested. Company contributions vest 20% after each year of service. Forfeitures are reallocated on a pro rata basis to active participants, as employer contributions, based on the participant's compensation. BENEFIT ARRANGEMENTS - The Plan provides for the payment of a participant's account balance to participants who have reached the later of the normal retirement age of 65 or who have completed five years of vesting service. A participant may also choose to withdraw his/her vested account balance upon attainment of the early retirement age, or age 59 1/2. If the participant's service with the Company terminates other than by reason of retirement, the participant may elect to receive his/her vested account balance as soon as possible following termination of employment. Distributions will be made in a lump sum, provided that no payment may be made without the participant's consent before his/her normal or early retirement age, if such payment would be in excess of $3,500. -4- 8 1. DESCRIPTION OF THE PLAN (CONTINUED) INVESTMENT OPTIONS - Employee and employer contributions are invested in the following options: Fixed Income Fund - Funds are invested in the Fidelity Managed Income Portfolio. The fixed income fund also includes participant loans. Equity Fund - Funds are invested in common stock of various companies, with residual amounts invested in a short-term investment fund. Talbots Stock Fund - Funds are invested in Talbots, Inc. common stock, with residual amounts invested in a short-term investment fund. Balanced Fund - Funds are invested in fixed income securities, corporate debt and common stock of various companies, with remaining amounts invested in a short-term investment fund. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BASIS OF ACCOUNTING - The financial statements of the Plan are prepared on the accrual basis of accounting. Purchases and sales of securities are recorded on the trade date basis. Interest income is recorded on the accrual basis. Dividends are recorded on the ex-dividend date on the accrual basis. VALUATION OF INVESTMENTS - The investments of the Plan are stated at fair value. Fair values of "other investments" were determined by closing prices for those securities traded on national stock exchanges, at the average of bid and ask quotations for those securities traded in the over-the-counter market at net asset value for the Fidelity Managed Income Portfolio and at fair value as determined by the trustee for any restricted securities. Participant loans are recorded at cost, which approximates fair value. BENEFIT PAYMENTS - Benefit payments to participants are recorded when paid. As of December 31, 1998, $384,921 has been allocated to accounts of persons who elected to withdraw from the Plan, but have not yet been paid. ADMINISTRATIVE PLAN EXPENSES - Most expenses incurred in administering the Plan, including those necessary for the administration of the Trust, are paid out of the principal or income of the Trust unless paid by the Company at its sole discretion. For the years ended December 31, 1998 and 1997, the Company did not pay any material administrative expenses of the Plan. Investment management fees incurred by the funds are paid out of the assets of the individual funds. ESTIMATES - The preparation of financial statements in conformity with generally accepted accounting principles requires the plan administrator to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results may differ from those estimates. -5- 9 3. INVESTMENTS Investments that represent 5% or more of net assets available for benefits at December 31, 1998 and 1997 were as follows:
IDENTITY OF ISSUE 1998 1997 ---------- ---------- United States Treasury Notes (various interest rates and maturities) $3,381,874 $3,383,894 State Street Short Term Investment -- 3,786,277 Fidelity Managed Income Portfolio 9,962,772 9,685,039 The Talbots, Inc. Common Stock 7,238,244 4,301,280
During 1998 and 1997, the Plan's investments (including gains and losses on investments bought and sold, as well as held during the year) appreciated in value by $2,381,980 and $3,452,281, respectively, as follows:
NET APPRECIATION ------------------------- 1998 1997 ---------- ---------- At fair value: Government Notes and Bonds $ 43,480 $ 37,459 Corporate Notes and Bonds 7,371 5,549 Common Stock 2,331,129 3,409,273 ---------- ---------- Total $2,381,980 $3,452,281 ========== ==========
4. PLAN TERMINATION In the event of termination of the Plan, or complete discontinuance of contributions thereto by the Company, the rights of all employees shall be fully vested and nonforfeitable. Following termination of the Plan, subject to reasonable administrative delays, all benefits under the Plan shall be paid in conformity with the standard benefit distribution policies of the Plan. 5. TAX STATUS OF THE PLAN The Plan obtained a favorable determination letter in 1995 in which the Internal Revenue Service stated that the Plan, as then designed, was in compliance with the applicable requirements of the Internal Revenue Code (the "Code"). The plan administrator believes that the Plan is currently designed and being operated in compliance with the applicable requirements of the Code. Accordingly, no provision for income taxes has been included in the Plan's financial statements. * * * * * * -6- 10 THE TALBOTS, INC. RETIREMENT SAVINGS VOLUNTARY PLAN ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES DECEMBER 31, 1998 ================================================================================
(c)UNITS/ (e)CURRENT (a) (b)IDENTITY OF ISSUE SHARES (d)COST VALUE FIXED INCOME FUND * PARTICIPANT LOANS (Ranging from 7.0% to 10.0% interest rates; various maturity dates through July 1, 2007) 1,783,871 $1,783,871 $1,783,871 ---------- ---------- Total Participant Loans 1,783,871 1,783,871 ---------- ---------- REGISTERED INVESTMENT COMPANY Fidelity Managed Income Portfolio 9,962,772 9,962,772 9,962,772 ---------- ---------- Total Registered Investment Company 9,962,772 9,962,772 ---------- ---------- Total Fixed Income Fund 11,746,643 11,746,643 ---------- ---------- EQUITY FUND SHORT TERM INVESTMENT FUND * State Street Short Term Investment Fund 1,625,345 1,625,345 1,625,345 ---------- --------- Total Short Term Investment Fund 1,625,345 1,625,345 ---------- --------- COMMON STOCK Archstone Community Tr. 32,057 695,458 649,154 Bowater Inc. 11,300 583,552 468,244 Champion International Corp. 11,500 543,777 465,750 Chris Craft Inds. Inc. 16,304 589,676 785,649 Conseco Inc. 13,324 237,637 406,382 Cooper Tire and Rubber Co. 34,200 797,156 698,963 Cyprus Amax Minerals Co. 46,300 868,353 463,000 Duke Rlty. Invts. Inc. 35,400 551,961 823,050 EEX Corp. 29,713 802,318 207,991 Entergy Corp. 20,000 623,794 622,500 Federal Home Loan Mtg. Corp. 19,500 395,842 1,256,531 Fleetwood Enterprises Inc. 23,700 620,218 823,575 Healthcare Realty Tr. 17,600 493,142 389,400 Hollinger International Inc. 55,500 792,225 773,531 LTV Corp. New 33,500 429,486 192,625 Meditrust 34,100 912,569 511,500 MBIA Inc. 21,900 957,615 1,435,819 NCR Corp. 37,100 1,217,493 1,548,925 New England Elec. Sys. 13,500 470,758 649,687 (Continued)
-7- 11 THE TALBOTS, INC. RETIREMENT SAVINGS VOLUNTARY PLAN ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES DECEMBER 31, 1998 ================================================================================
(c)UNITS/ (e)CURRENT (a) (b)IDENTITY OF ISSUE SHARES (d)COST VALUE EQUITY FUND (CONTINUED) COMMON STOCK (CONTINUED) Nucor Corp. 12,900 587,929 557,925 OM Group Inc. 21,300 469,945 777,450 PP&L Res Inc. 24,600 621,990 685,725 Parker Drilling Co. 62,100 425,539 197,944 Pinnacle West Cap Corp. 23,200 780,280 983,100 Reinsurance Group Amer Inc. 9,850 233,254 689,500 Santa Fe Energy Res Inc. 32,600 207,834 236,350 Sbarro Inc. 13,700 366,909 358,769 Seagate Technology 36,100 901,355 1,092,025 Silicon Graphics 21,600 282,248 278,100 SunAmerica Inc. 18,850 286,446 1,545,700 Tidewater Inc. 16,500 535,540 382,594 Trigon Healthcare Inc. 24,600 594,702 917,888 Triton Energy LTD 27,600 1,191,188 219,075 Trizec Hahn Corp. 37,100 610,781 760,550 Unifi Inc. 15,800 456,029 309,087 Warnaco Group Inc. 34,800 853,330 878,700 Washington Real Estate Invt Tr 22,200 360,013 413,475 Wellman Inc. 28,400 618,613 289,325 Wellpoint Health Networks Inc. 12,937 580,657 1,125,519 ---------- ---------- Total Common Stock 23,547,612 25,871,077 ---------- ---------- Total Equity Fund 25,172,957 27,496,422 ---------- ---------- TALBOTS STOCK FUND SHORT TERM INVESTMENT FUND * State Street Short Term Investment Fund 37,645 37,645 37,645 ---------- ---------- Total Short Term Investment Fund 37,645 37,645 ---------- ---------- COMMON STOCK * Talbots, Inc. 230,701 5,449,234 7,238,244 ---------- ---------- Total Common Stock 5,449,234 7,238,244 ---------- ---------- Total Talbots Stock Fund 5,486,879 7,275,889 ---------- ---------- BALANCED FUND SHORT TERM INVESTMENT FUND * State Street Short Term Investment Fund 747,109 747,109 747,109 ---------- ---------- Total Short Term Investment Fund 747,109 747,109 ---------- ---------- (Continued)
-8- 12 THE TALBOTS, INC. RETIREMENT SAVINGS VOLUNTARY PLAN ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES DECEMBER 31, 1998 ================================================================================
(c)UNITS/ (e)CURRENT (a) (b)IDENTITY OF ISSUE SHARES (d)COST VALUE BALANCED FUND (CONTINUED) FIXED INCOME Fed Hm Ln Pc (9.0%, 1/1/07) 15,612 16,422 16,088 Fed Hm Ln Pc (8.0%, 8/1/17) 23,514 24,109 24,288 FNMA Pool (6.0%, 4/1/24) 37,589 35,674 37,166 FNMA Pool (6.0%, 4/1/28) 73,662 71,958 72,695 Federal Home Ln Mtg PC Gtd (6.0%, 11/15/05) 38,877 37,814 38,792 Federal National Mortgage Assoc. (6%, 5/15/08) 240,000 255,624 253,349 Govt Natl Mtg Assn GTD Remic (7.0%, 1/16/07) 46,644 46,987 46,673 IMC Home Equity Ln TR (6.41%, 4/20/18) 125,000 124,993 124,960 United States Treasury Notes (7.5%, 11/15/01) 325,000 345,625 349,475 United States Treasury Notes (6.375%, 8/15/02) 390,000 407,535 411,388 United States Treasury Notes (6.25%, 2/15/03) 20,000 19,849 21,150 United States Treasury Notes (6.875%, 7/31/99) 235,000 239,648 237,900 United States Treasury Notes (7.25%, 8/15/04) 295,000 324,016 331,645 United States Treasury Notes (7.875%, 11/15/04) 135,000 157,298 156,410 United States Treasury Notes (7.75%, 11/30/99) 350,000 363,399 359,517 United States Treasury Notes (7.75%, 12/31/99) 15,000 16,392 15,447 United States Treasury Notes (7.75%, 1/31/00) 100,000 105,788 103,172 United States Treasury Notes (6.25%, 5/31/00) 135,000 135,072 137,890 United States Treasury Notes (5.75%, 10/31/00) 300,000 295,547 305,718 United States Treasury Notes (6.5%, 10/15/06) 315,000 352,377 349,404 United States Treasury Notes (6.125%, 12/31/01) 100,000 101,406 104,062 United States Treasury Notes (6.25%, 5/31/99) 135,000 136,129 135,843 United States Treasury Notes (5.75%, 11/30/02) 350,000 364,297 362,852 --------- --------- Total Fixed Income 3,977,959 3,995,884 --------- --------- CORPORATE DEBT Premier Auto Tr (5.77%, 1/6/02) 140,000 140,000 140,655 American Gen Fin Corp. (6.88%, 1/15/00) 125,000 126,885 126,648 (Continued)
-9- 13 THE TALBOTS, INC. RETIREMENT SAVINGS VOLUNTARY PLAN ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES DECEMBER 31, 1998 ================================================================================
(c)UNITS/ (e)CURRENT (a) (b)IDENTITY OF ISSUE SHARES (d)COST VALUE BALANCED FUND (CONTINUED) CORPORATE DEBT (CONTINUED) Associates Corp. North America (7.75%, 2/15/05) 50,000 53,486 55,290 Bear Stearns Cos. Inc. (6.625%, 10/1/04) 120,000 121,166 123,295 BellSouth Telecomm Inc. (5.85%, 11/15/45) 65,000 63,515 65,965 Commercial Cr Group Inc. (6.0%, 4/15/00) 125,000 125,305 125,920 Cooper Indust Inc. Mtn BE (6.38%, 5/8/08) 150,000 150,000 155,286 Kimco Rlty Corp. (7.06%, 7/14/09) 65,000 65,000 64,211 Spieker Pptys LP (6.75%, 1/15/08) 100,000 99,170 98,021 Tyco Intl Group (6.375%, 6/15/05) 245,000 246,617 249,748 Weingarten Rlty Invs Mtn (6.9%, 11/24/08) 50,000 49,571 49,989 --------- --------- Total Corporate Debt 1,240,715 1,255,028 --------- --------- COMMON STOCK Abbott Labs 2,800 89,684 137,200 American Express Co. 1,600 86,720 164,000 American Greetings Corp. 2,200 57,926 90,338 Ameritech Corp. 3,000 91,553 190,125 AMR Corp. Del 1,800 129,295 106,875 Associates First Cap Corp. 1,680 65,174 71,190 AT&T Corp. 3,500 132,641 265,125 Ball Corp. 2,600 102,456 118,950 BankAmerica Corp. 1,631 94,213 98,064 BankOne Corp. 1,500 84,652 76,594 Baxter Intl Inc. 300 17,474 19,294 Bear Stearns Cos. Inc. 1,800 58,383 67,388 BellSouth Corp. 3,200 50,748 159,600 Becton Dickinson 2,000 84,745 85,375 Best Buy Co. Inc. 2,800 138,243 171,850 Brinker Intl. Inc. 2,200 43,032 63,525 Chase Manhattan Corp. New 2,380 56,470 168,980 Cigna Corp. 2,500 175,025 193,281 (Continued)
-10- 14 THE TALBOTS, INC. RETIREMENT SAVINGS VOLUNTARY PLAN ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES DECEMBER 31, 1998 ================================================================================
(c)UNITS/ (e)CURRENT (a) (b)IDENTITY OF ISSUE SHARES (d)COST VALUE BALANCED FUND (CONTINUED) COMMON STOCK (CONTINUED) Cisco Systems 1,550 94,865 143,860 Citigroup 1,000 50,060 49,688 Coastal Corp. 3,900 98,561 136,988 Coca Cola Co. 1,800 89,072 120,600 Coca Cola Enterprises 2,500 88,838 89,375 Colgate Palmolive 800 73,154 74,300 Continental Airls Inc. 900 31,266 30,150 Dean Foods Co. 1,900 102,951 77,543 Dell Computer Corp. 2,700 67,016 197,606 Disney Walt Co. 2,300 65,525 69,000 Dole Food Inc. 2,700 126,662 81,000 Donnelley RR & Sons Co. 1,400 61,947 61,337 Dow Chemicals 1,100 108,554 100,031 EMC Corp Mass 1,300 64,591 110,500 Express Scripts Inc. 1,800 73,054 120,825 Exxon Corp. 1,400 99,809 102,375 Federal National Mtg. Assoc. 1,100 75,660 81,400 Federal Home Loan Mtg. Corp. 900 55,292 57,994 Fifth Third Bancorp 1,400 91,609 99,838 Fleet Financial Group Inc. 2,600 112,269 116,188 Ford Motor Co. 3,900 194,781 228,881 Gannett Inc. 1,800 120,146 116,100 General Electric Co. 4,600 309,236 469,200 General Motors Corp. 1,000 38,935 39,687 GPU Inc. 1,500 48,340 66,281 Hershey Food Corp. 400 29,224 24,875 Hewlett Packard Co. 1,400 81,459 95,638 Hillenbrand Inds Inc. 1,000 46,560 56,875 Home Depot 1,300 56,628 79,544 Intel Corp. 2,300 86,459 272,694 International Business Machines Corp. 2,200 126,331 405,625 Johnson & Johnson 1,200 44,960 100,650 Jones Apparel Group Inc. 2,000 55,372 44,125 Keycorp 1,600 52,398 51,200 Lockheed Martin Corp. 700 71,317 59,325 Lowes Cos. Inc. 1,600 63,333 81,900 (Continued)
-11- 15 THE TALBOTS, INC. RETIREMENT SAVINGS VOLUNTARY PLAN ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES DECEMBER 31, 1998 ================================================================================
(c)UNITS/ (e)CURRENT (a) (b)IDENTITY OF ISSUE SHARES (d)COST VALUE BALANCED FUND (CONTINUED) COMMON STOCK (CONTINUED) Lucent Technologies Inc. 1,200 49,536 131,925 Marriott Intl. Inc. 2,400 66,144 69,600 Maytag Corp. 1,000 50,810 62,250 McKesson HBOC Inc. 1,200 113,622 94,875 MCN Energy Group Inc. 3,900 84,359 74,344 Media One Group Inc. 700 31,586 32,900 Mellon Bank Corp. 2,400 131,244 165,000 Merck & Co Inc. 2,100 127,284 309,750 Microsoft Corp. 3,000 186,768 416,063 MidAmerican Energy Hldgs Co. 3,300 67,336 88,688 Mobil Corp. 2,400 120,322 209,100 Morgan Stanley Dean Witter 700 48,255 49,700 Owens Corning 1,800 67,233 63,787 PacifiCorp. 1,700 34,740 35,806 Philip Morris Cos. Inc. 4,400 119,550 235,400 Proctor & Gamble Co. 1,100 101,541 100,443 Pfizer Inc. 700 80,948 87,500 RPM Inc. Ohio 7,100 119,557 113,600 Reliance Group Hldgs Inc. 2,900 37,512 37,338 Royal Dutch Pete Co. 2,100 64,016 100,537 Safeway Inc. 4,800 183,833 292,500 Sara Lee Corp. 2,000 29,633 56,375 SBC Communications Inc. 5,100 221,481 273,488 Schering Plough Corp. 2,000 101,185 110,500 (Continued)
-12- 16 THE TALBOTS, INC. RETIREMENT SAVINGS VOLUNTARY PLAN ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES DECEMBER 31, 1998 ================================================================================
(c)UNITS/ (e)CURRENT (a) (b)IDENTITY OF ISSUE SHARES (d)COST VALUE BALANCED FUND (CONTINUED) COMMON STOCK (CONTINUED) Southtrust Corp. 1,350 30,654 49,866 Sprint Corp. 1,100 77,247 92,535 Texaco Inc. 3,300 196,210 174,900 Textron Inc. 500 17,515 37,969 TV Guide Inc. 3,500 47,041 82,688 Tyco Intl Ltd New 2,700 161,624 203,681 United Stationers Inc. 1,100 38,257 28,600 United Technologies Corp. 900 53,399 97,875 USG Corp. 1,100 37,603 56,031 US TR Corp. 1,100 75,004 83,600 USX U S Stl Group 2,200 83,884 50,600 Valero Energy Corp. 3,100 95,861 65,875 Warner-Lambert Co. 2,300 168,449 172,931 Xerox Corp. 800 67,448 94,400 ----------- ----------- Total Common Stock 8,003,359 10,863,972 ----------- ----------- Total Balanced Fund 13,969,142 16,861,993 ----------- ----------- TOTAL INVESTMENTS $56,375,621 $63,380,947 =========== =========== * Party-in-interest (Concluded)
-13- 17 THE TALBOTS, INC. RETIREMENT SAVINGS VOLUNTARY PLAN ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS YEAR ENDED DECEMBER 31, 1998 ================================================================================
(h)CURRENT VALUE OF ASSET ON (a)IDENTITY OF (b)DESCRIPTION (c)PURCHASE (d)SELLING (g) COST OF TRANSACTION (i)NET GAIN PARTY INVOLVED OF ASSETS PRICE PRICE ASSET DATE OR (LOSS) SERIES OF TRANSACTIONS State Street Bank and Trust Company Short Term Investment Fund $21,971,311 $ -- $21,971,311 $21,971,311 $ -- -- 23,769,683 23,769,683 23,769,683 --
-14- 18 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees have duly caused this report to be signed on its behalf by the undersigned. THE TALBOTS, INC. RETIREMENT SAVINGS VOLUNTARY PLAN Dated: June 29, 1999 PLAN ADMINISTRATOR By Administrative Committee By: /s/ Edward L. Larsen ------------------------------- Edward L. Larsen Administrative Committee Member By: /s/ Stuart M. Stolper ------------------------------- Stuart M. Stolper Administrative Committee Member -15- EX-1 2 INDEPENDENT AUDITORS CONSENT 1 EXHIBIT 1 INDEPENDENT AUDITORS' CONSENT We consent to the incorporation by reference in Registration Statement No. 33-72086 of The Talbots, Inc. on Form S-8 of our report dated June 16, 1999, appearing in this Annual Report on Form 11-K of The Talbots, Inc. Retirement Savings Voluntary Plan for the year ended December 31, 1998. /s/ DELOITTE & TOUCHE LLP - ------------------------- Boston, Massachusetts June 28, 1999 -16- -----END PRIVACY-ENHANCED MESSAGE-----