Exhibit 99b
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
ANNUAL REPORT
ANNUAL REPORT PURSUANT TO SECTION 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the period ended DECEMBER 31, 1998
Commission file number:
------------------------
VF CORPORATION TAX-ADVANTAGED SAVINGS PLAN FOR HOURLY EMPLOYEES
(Full title of plan)
628 GREEN VALLEY ROAD, SUITE 500
GREENSBORO, NC 27408
(Address of principal executive offices)
(336) 547-6000
(Registrant's telephone number, including area code)
1
Item 1. Changes in the Plan
Effective April 1, 1998 the VF Corporation Tax-Advantaged Savings Plan for
Hourly Employees was made available to hourly employees of VF Corporation (the
Corporation).
Item 2. Changes in Investment Policy
N/A
Item 3. Contributions Under the Plan
N/A
Item 4. Participating Employees
There were approximately 7,841 enrolled participants in the Plan as of December
31, 1998, out of approximately 27,257 eligible employees.
Item 5. Administration of the Plan
(a) The Plan provides that a Committee of three persons be appointed to
administer the Plan. The Committee, the VF Corporation Pension Plan
Committee, is comprised of the following officers of the Corporation:
Candace Cummings, Vice President - Administration, General Counsel &
Secretary; Frank C. Pickard III, Vice President - Treasurer; and Louis J.
Fecile, Vice President - Employee Benefits. All committee persons are
located at the Corporation's headquarters: 628 Green Valley Road, Suite
500, Greensboro, NC 27408. Each of these individuals is an employee of the
Corporation. The Committee has the power to adopt rules and regulations
for carrying out and administering the Plan and has the full authority and
power to construe, interpret and administer the Plan. Committee members
receive no compensation from the Plan.
(b) All expenses of administration of the Plan, including Trustee fees, are
paid by the Corporation.
Item 6. Custodian of Investments
(a) The Corporation has entered into a Trust Agreement under which UMB Bank,
n.a., 10th and Grand, P.O. Box 419692, Kansas City, MO 64141-6692, has
been appointed as Trustee under the Plan. Under the terms of the Trustee
Agreement, UMB Bank, n.a. holds and invests all assets of the Plan,
subject to the direction of each of the participants of the Plan regarding
the investment fund or funds to receive contributions. The Trustee manages
the Fixed Income Fund and Scout Prime.
(b) The custodian's compensation is paid by the Corporation.
(c) No bond was furnished or is required to be furnished by the Trustee.
Item 7. Reports to Participating Employees
Each participant receives a quarterly statement showing the amounts contributed
by him/her to each of the funds during the calendar quarter and the market
values of investments as of the end of each quarter.
2
Item 8. Investment of Funds
Each participant by completing a written investment change form directs the Plan
Administrator to notify the Trustee to invest his/her own contributions in one
or more of the following funds:
- Money Market Fund
- Fixed Income Fund
- Balanced Fund
- Equity Growth & Income Fund
- Index 500 Fund
- Small-Cap Value Fund
- Small-Cap Growth Fund
- Foreign Fund
- VF Corporation Common Stock Fund (investing in common stock of the
Corporation)
Brokerage commissions of $3,214 for the year ended December 31, 1998 were paid
by the Trustee to acquire the Corporation's common stock for the Plan.
Item 9. Financial Statements and Exhibits
(a) Financial Statements Page No.
Report of Independent Accountants 5
Statements of Net Assets Available for Benefits, with Fund Information -
December 31, 1998
- Combined Plan 6
- Money Market Fund and Fixed Income Fund 7
- Balanced Fund and Equity Growth & Income Fund 8
- Equity Growth Fund 9
- Index 500 Fund and Small-Cap Value Fund 10
- Small-Cap Growth Fund and Foreign Fund 11
- VF Corporation Common Stock Fund and Loan Fund 12
Statements of Changes in Net Assets Available for Benefits, with Fund Information
For the Period Ended December 31, 1998
- Combined Plan 13
- Money Market Fund 14
- Fixed Income Fund 15
- Balanced Fund 16
- Equity Growth & Income Fund 17
- Index 500 Fund 18
- Small-Cap Value Fund 19
- Small-Cap Growth Fund 20
- Foreign Fund 21
- VF Corporation Common Stock Fund 22
- Loan Fund 23
Notes to Financial Statements 24
Schedules:
Schedules I, II and III have been omitted because the required
information is included in the financial statements and the
related notes.
3
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the VF
Corporation Pension Plan Committee has duly caused this annual report to be
signed by the undersigned thereunto duly authorized.
VF Corporation Tax-Advantaged Savings Plan
for Hourly Employees
------------------------------------------
By: /s/ Louis J. Fecile
--------------------------------------
Louis J. Fecile
Vice President - Employee Benefits
VF Corporation
Date: March 22, 1999
4
Report of Independent Accountants
VF Corporation Pension Plan Committee
VF Corporation Tax-Advantaged Savings Plan
for Hourly Employees
We have audited the accompanying statements of net assets available for benefits
of the VF Corporation Tax-Advantaged Savings Plan for Hourly Employees as of
December 31, 1998 and the related statements of changes in net assets available
for benefits for the period April 1, 1998 (date of inception) to December 31,
1998. 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 audit.
We conducted our audit 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 audit provides a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for benefits of the VF
Corporation Tax-Advantaged Savings Plan for Hourly Employees at December 31,
1998 and the changes in its net assets available for benefits for the period
April 1, 1998 to December 31, 1998 in conformity with generally accepted
accounting principles.
Our audit was performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The fund information in the statements of
net assets available for benefits and in 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 benefits and changes in net assets
available for benefits of each fund. The fund information has been subjected to
the auditing procedures applied in the audit of the basic financial statements
and, in our opinion, is fairly stated in all material respects in relation to
the basic financial statements taken as a whole.
/s/ PricewaterhouseCoopers LLP
Greensboro, North Carolina
March 22, 1999
5
VF CORPORATION TAX-ADVANTAGED SAVINGS PLAN FOR HOURLY EMPLOYEES
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
COMBINED PLAN
December 31
ASSETS 1998
-----------
Investments, at fair value
VF Corporation Common Stock -
22,050 shares in 1998 $ 1,033,594
United States government obligations 9,210,864
Other securities 11,109,445
-----------
Total investments 21,353,903
Dividends and interest receivable 197,459
Loans receivable from participants 161,037
-----------
Net assets available for benefits $21,712,399
===========
See notes to financial statements.
6
VF CORPORATION TAX-ADVANTAGED SAVINGS PLAN FOR HOURLY EMPLOYEES
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS (CONTINUED)
MONEY MARKET FUND AND FIXED INCOME FUND
Money Market Fund Fixed Income Fund
December 31 December 31
----------------- -----------------
ASSETS 1998 1998
- ------ ---- ----
Investments, at fair value
United States government obligations $ 0 $ 9,210,864
Other securities 730,666 5,284,057
----------- -----------
Total investments 730,666 14,494,921
Dividends and interest receivable 156 196,346
----------- -----------
Net assets available for benefits $ 730,822 $14,691,267
=========== ===========
See notes to financial statements.
7
VF CORPORATION TAX-ADVANTAGED SAVINGS PLAN FOR HOURLY EMPLOYEES
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS (CONTINUED)
BALANCED FUND AND EQUITY GROWTH & INCOME FUND
Equity Growth &
Balanced Fund Income Fund
December 31 December 31
------------- ---------------
1998 1998
---- ----
ASSETS
Investments, at fair value
Other securities $ 783,128 $1,555,994
---------- ----------
Total investments 783,128 1,555,994
Dividends and interest receivable 105 141
---------- ----------
Net assets available for benefits $ 783,233 $1,556,135
========== ==========
See notes to financial statements.
8
VF CORPORATION TAX-ADVANTAGED SAVINGS PLAN FOR HOURLY EMPLOYEES
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS (CONTINUED)
INDEX 500 FUND & SMALL-CAP VALUE FUND
Index 500 Small-Cap
Fund Value Fund
December 31 December 31
----------- -----------
1998 1998
---- ----
ASSETS
Investments, at fair value
Other securities $1,457,725 $ 358,131
---------- ----------
Total investments 1,457,725 358,131
Dividends and interest receivable 165 86
---------- ----------
Net assets available for benefits $1,457,890 $ 358,217
========== ==========
See notes to financial statements.
9
VF CORPORATION TAX-ADVANTAGED SAVINGS PLAN FOR HOURLY EMPLOYEES
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS (CONTINUED)
SMALL-CAP GROWTH FUND & FOREIGN FUND
Small-Cap Foreign
Growth Fund Fund
December 31 December 31
----------- -----------
1998 1998
---- ----
ASSETS
Investments, at fair value
Other securities $709,667 $191,949
-------- --------
Total investments 709,667 191,949
Dividends and interest receivable 86 78
-------- --------
Net assets available for benefits $709,753 $192,027
======== ========
See notes to financial statements.
10
CORPORATION TAX-ADVANTAGED SAVINGS PLAN FOR HOURLY EMPLOYEES
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS (CONTINUED)
VF CORPORATION COMMON STOCK FUND AND LOAN FUND
VF Corporation
Common Stock
Fund Loan Fund
December 31 December 31
--------------- -----------
1998 1998
---- ----
ASSETS
Investments, at fair value
VF Corporation Common Stock
22,050 shares in 1998 $1,033,594 $ 0
Other securities 38,128 161,037
---------- ----------
Total investments 1,071,722 161,037
Dividends and interest receivable 296 0
---------- ----------
Net assets available for benefits $1,072,018 $ 161,037
========== ==========
See notes to financial statements.
11
VF CORPORATION TAX-ADVANTAGED SAVINGS PLAN FOR HOURLY EMPLOYEES
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
COMBINED PLAN
Period Ended
December 31
1998
------------
Investment income
Dividends on VF Corporation Common Stock $ 10,317
Interest 1,092,869
Income from mutual funds and
bank common trust funds 326,047
------------
1,429,233
------------
Contributions
Interest on Loan Repayments 5,739
Transfer from Bassett-Walker Thrift Plan 22,087,806
Participants 4,066,432
------------
26,159,977
------------
Withdrawals (6,498,737)
Net realized and unrealized appreciation
in fair value of investments 621,926
------------
Net increase 21,712,399
Net assets available for benefits
Beginning of period 0
------------
End of period $ 21,712,399
============
See notes to financial statements.
12
VF CORPORATION TAX-ADVANTAGED SAVINGS PLAN FOR HOURLY EMPLOYEES
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS (CONTINUED)
MONEY MARKET FUND
Period Ended
December 31
1998
------------
Investment income
Income from mutual funds and
bank common trust funds $ 15,386
---------
15,386
---------
Contributions
Transfer from Bassett-Walker Thrift Plan 92,203
Participants 617,671
---------
709,874
---------
Withdrawals (25,714)
Fund transfers, net 31,276
---------
Net increase 730,822
Net assets available for benefits
Beginning of period 0
---------
End of period $ 730,822
=========
See notes to financial statements.
13
VF CORPORATION TAX-ADVANTAGED SAVINGS PLAN FOR HOURLY EMPLOYEES
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS (CONTINUED)
FIXED INCOME FUND
Period Ended
December 31
1998
------------
Investment income
Interest $ 1,092,869
Income from mutual funds and
bank common trust funds 116,408
------------
1,209,277
------------
Contributions
Transfer from Bassett-Walker Thrift Plan 20,751,788
Participants 776,049
------------
21,527,837
------------
Withdrawals (6,188,012)
Net realized and unrealized appreciation
in fair value of investments 99,186
Fund transfers, net (1,957,021)
------------
Net increase 14,691,267
Net assets available for benefits
Beginning of period 0
------------
End of period $ 14,691,267
============
See notes to financial statements.
14
VF CORPORATION TAX-ADVANTAGED SAVINGS PLAN FOR HOURLY EMPLOYEES
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS (CONTINUED)
BALANCED FUND
Period Ended
December 31
1998
------------
Investment income
Income from mutual funds and
bank common trust funds $ 49,644
---------
49,644
---------
Contributions
Transfer from Bassett-Walker Thrift Plan 218,073
Participants 290,661
---------
508,734
---------
Withdrawals (35,269)
Net realized and unrealized appreciation
in fair value of investments 40,723
Fund transfers, net 219,401
---------
Net increase 783,233
Net assets available for benefits
Beginning of period 0
---------
End of period $ 783,233
=========
See notes to financial statements.
15
VF CORPORATION TAX-ADVANTAGED SAVINGS PLAN FOR HOURLY EMPLOYEES
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS (CONTINUED)
EQUITY GROWTH & INCOME FUND
Period Ended
December 31
1998
------------
Investment income
Income from mutual funds and
bank common trust funds $ 61,098
-----------
61,098
-----------
Contributions
Transfer from Bassett-Walker Thrift Plan 308,656
Participants 597,429
-----------
906,085
-----------
Withdrawals (80,506)
Net realized and unrealized appreciation
in fair value of investments 216,328
Fund transfers, net 453,130
-----------
Net increase 1,556,135
Net assets available for benefits
Beginning of period 0
-----------
End of period $ 1,556,135
===========
See notes to financial statements.
16
VF CORPORATION TAX-ADVANTAGED SAVINGS PLAN FOR HOURLY EMPLOYEES
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS (CONTINUED)
INDEX 500 FUND
Period Ended
December 31
1998
------------
Investment income
Income from mutual funds and
bank common trust funds $ 23,904
-----------
23,904
-----------
Contributions
Transfer from Bassett-Walker Thrift Plan 321,675
Participants 480,895
-----------
802,570
-----------
Withdrawals (84,976)
Net realized and unrealized appreciation
in fair value of investments 235,287
Fund transfers, net 481,105
-----------
Net increase 1,457,890
Net assets available for benefits
Beginning of period 0
-----------
End of period $ 1,457,890
===========
See notes to financial statements.
17
VF CORPORATION TAX-ADVANTAGED SAVINGS PLAN FOR HOURLY EMPLOYEES
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS (CONTINUED)
SMALL-CAP VALUE FUND
Period Ended
December 31
1998
------------
Investment income
Income from mutual funds and
bank common trust funds $ 38,113
---------
38,113
---------
Contributions
Transfer from Bassett-Walker Thrift Plan 73,684
Participants 169,471
---------
---------
243,155
---------
Withdrawals (17,517)
Net realized and unrealized (depreciation)
in fair value of investments (7,252)
Fund transfers, net 101,718
---------
Net increase 358,217
Net assets available for benefits
Beginning of period 0
---------
End of period $ 358,217
=========
See notes to financial statements.
18
VF CORPORATION TAX-ADVANTAGED SAVINGS PLAN FOR HOURLY EMPLOYEES
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS (CONTINUED)
SMALL-CAP GROWTH FUND
Period Ended
December 31
1998
------------
Investment income
Income from mutual funds and
bank common trust funds $ 1,896
---------
1,896
---------
Contributions
Transfer from Bassett-Walker Thrift Plan 147,723
Participants 316,181
---------
463,904
---------
Withdrawals (29,781)
Net realized and unrealized appreciation
in fair value of investments 67,099
Fund transfers, net 206,635
---------
Net increase 709,753
Net assets available for benefits
Beginning of period 0
---------
End of period $ 709,753
=========
See notes to financial statements.
19
VF CORPORATION TAX-ADVANTAGED SAVINGS PLAN FOR HOURLY EMPLOYEES
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS (CONTINUED)
FOREIGN FUND
Period Ended
December 31
1998
------------
Investment income
Income from mutual funds and
bank common trust funds $ 15,262
---------
15,262
---------
Contributions
Transfer from Bassett-Walker Thrift Plan 40,482
Participants 118,954
---------
159,436
---------
Withdrawals (8,997)
Net realized and unrealized (depreciation) in fair
value of investments (38,193)
Fund transfers, net 64,519
---------
Net increase 192,027
Net assets available for benefits
Beginning of period 0
---------
End of period $ 192,027
=========
See notes to financial statements.
20
VF CORPORATION TAX-ADVANTAGED SAVINGS PLAN FOR HOURLY EMPLOYEES
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS (CONTINUED)
VF CORPORATION COMMON STOCK FUND
Period Ended
December 31
1998
------------
Investment income
Dividends on VF Corporation
Common Stock $ 10,317
Income from mutual funds and
bank common trust funds 4,336
-----------
14,653
-----------
Contributions
Transfer from Bassett-Walker Thrift Plan 133,522
Participants 699,121
-----------
832,643
-----------
Withdrawals (27,108)
Net realized and unrealized appreciation
in fair value of investments 8,748
Fund transfers, net 243,082
-----------
Net increase 1,072,018
Net assets available for benefits
Beginning of period 0
-----------
End of period $ 1,072,018
===========
See notes to financial statements.
21
VF CORPORATION TAX-ADVANTAGED SAVINGS PLAN FOR HOURLY EMPLOYEES
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS (CONTINUED)
LOAN FUND
Period Ended
December 31
1998
------------
Contributions
Interest on loan repayments $ 5,739
---------
5,739
---------
Withdrawals (857)
Fund transfers, net 156,155
---------
Net increase 161,037
---------
Net assets available for benefits
Beginning of period 0
---------
End of period $ 161,037
=========
See notes to financial statements.
22
VF CORPORATION TAX-ADVANTAGED SAVINGS PLAN FOR HOURLY EMPLOYEES
NOTES TO FINANCIAL STATEMENTS
NOTE A -- DESCRIPTION OF THE PLAN
Effective April 1, 1998, VF Corporation (the Corporation) adopted the VF
Corporation Tax-Advantaged Savings Plan for Hourly Employees (the Plan), which
is a cash or deferred plan under Section 401(k) of the Internal Revenue Code.
Under the Plan, certain hourly employees of specified subsidiaries, having at
least one year of credited service, may elect to contribute between 2% and 10%
of their compensation to the Plan. Employees remain fully vested in their
contributions to the Plan. All references herein to the period ended December
31, 1998 relate to the period April 1, 1998 through December 31, 1998.
Employee contributions are invested at the direction of the employee in one or
more of the funds administered by the Plan's trustee. The trustee also manages
the Fixed Income Fund and Scout Prime Fund. The investment programs of the Plan
are as follows:
(a) Money Market Fund: Monies are invested in a money market fund.
(b) Fixed Income Fund: Monies are invested in investments that provide a
fixed rate of return.
(c) Balanced Fund: Monies are invested in investments to obtain as much
income as possible, consistent with the preservation and conservation
of capital.
(d) Equity Growth & Income Fund: Monies are invested in investments that
are currently paying dividends and/or offer prospects for growth of
capital and future income, with emphasis on capital appreciation.
(e) Index 500 Fund: Monies are invested in the 500 stocks that make up
the S&P 500 Stock Price Index.
(f) Small-Cap Value Fund: Monies are invested in U.S. common stocks of
small companies whose price is under valued.
(g) Small-Cap Growth Fund: Monies invested in small and medium size
companies with under valued assets or favorable growth prospects.
(h) Foreign Fund: Monies are invested in stocks and debt obligations of
companies and governments outside the United States.
(i) VF Corporation Common Stock Fund: Monies are invested in Common Stock
of the Corporation purchased at prevailing prices on the New York
Stock Exchange on the date of purchase. Employees can direct no more
than 50% of their contributions to the VF Corporation Common Stock
Fund.
Individual accounts are maintained for each participant; each account includes
the individual's contributions and investment funds' earnings. Accounts become
payable upon retirement, disability, death or termination of employment.
Participants may also withdraw all or a portion of their accounts by filing a
written request that demonstrates financial hardship. Participants may elect to
receive distributions in a lump sum, or accounts may be rolled over into another
IRS-approved tax deferral vehicle.
The transfer of applicable participant balances from the Bassett-Walker Thrift
Plan, which was terminated effective April 1, 1998, has been disclosed
separately in the Statements of Changes in Net Assets Available for Benefits.
Participants may borrow from their individual account. Participants are charged
interest at the Morgan Guaranty "Published" prime rate at the time of the loan
and repay the principal within 60 months, or 120 months if the loan is for the
purchase of their
23
VF CORPORATION TAX-ADVANTAGED SAVINGS PLAN FOR HOURLY EMPLOYEES
NOTES TO FINANCIAL STATEMENTS (Continued)
primary residence. Participants may borrow up to 100% of their account balance
in the Money Market Fund and 75% of their account balance of remaining funds,
not to exceed 50% of the participant's total vested account balance. Payment in
full is required at termination of employment. There were 49 loans outstanding
at December 31, 1998.
Although it has no intent to do so, the Corporation may terminate the Plan in
whole or in part at any time.
The number of participants in each fund was as follows:
Period Ended December 31
------------------------
1998
----
Money Market Fund 2,812
Fixed Income Fund 4,333
Balanced Fund 2,168
Equity Growth & Income Fund 3,482
Index 500 Fund 2,978
Small-Cap Value Fund 1,541
Small-Cap Growth Fund 2,225
Foreign Fund 1,115
VF Corporation Common Stock Fund 3,584
The total number of participants in the Plan was less than the sum of
participants shown above because many were participating in more than one fund.
NOTE B -- SIGNIFICANT ACCOUNTING POLICIES
Investments are stated at fair value. Securities traded on a national securities
exchange are valued at the last reported sales price on the last business day of
the plan year. For commercial notes and United States government obligations,
the Plan trustee has established a fair value based on yields currently
available on comparable instruments. The fair value of the participation units
owned by the Plan in mutual funds and bank common trust funds is based on quoted
redemption values on the last business day of the Plan year. Fair value for the
guaranteed investment contract ("GIC") with a life insurance company
approximates contract value. Contract value represents contributions made under
the contract, plus interest at the contract rate, less administrative expenses
charged by the insurance company. Changes in contract value of GIC deposits in
the separate accounts of insurance companies have been included as interest in
the statement of changes in net assets available for benefits. The crediting
interest rate on the GIC as of December 31, 1998 and the average yield for the
year then ended is consistent with the stated rate of contract detailed in Note
D. These rates are expected to remain constant to maturity. There were no
valuation reserves against the GIC at December 31, 1998.
The Plan presents in the statement of changes in net assets available for
benefits the net appreciation (depreciation) in the fair value of its
investments, which consists of the realized gains or losses and unrealized
appreciation or depreciation on those investments. Realized gains or losses are
calculated on an average cost basis.
Administrative expenses consisting primarily of fees for legal, accounting and
other services are paid by the Corporation in accordance with the Plan Agreement
and are based on customary and reasonable rates for such services.
24
VF CORPORATION TAX-ADVANTAGED SAVINGS PLAN FOR HOURLY EMPLOYEES
NOTES TO FINANCIAL STATEMENTS (Continued)
Payment of Benefits: Benefits are recorded when paid. Approximately $1.3 million
in Bassett-Walker Thrift Plan withdrawals are included in withdrawals for the
Fixed Income Fund.
Use of Estimates: In preparing financial statements in accordance with generally
accepted accounting principles, management makes estimates and assumptions that
affect amounts reported in the financial statements and accompanying notes.
Actual results may differ from those estimates.
NOTE C -- INCOME TAX STATUS
The Internal Revenue Service has issued a Favorable Determination Letter dated
September 27, 1998 stating that the Plan qualifies under the appropriate
sections of the Internal Revenue Code (IRC) and is, therefore, not subject to
tax under present income tax law. Once qualified, the Plan is required to
operate in conformity with the IRC to maintain its qualification. The Pension
Plan Committee is not aware of any action or series of events that have occurred
that might adversely affect the Plan's qualified status. The Plan has been
amended since receiving the determination letter. However, the Plan
administrator and the Plan's tax counsel believe that the Plan is currently
designed and is currently being operated in compliance with the applicable
requirements of the IRC.
NOTE D -- INVESTMENTS
Net unrealized appreciation (depreciation) in fair value of investments included
in Plan equity includes the following:
Net
Unrealized
Appreciation
in Fair
Value for
the Period
Ended Fair Value
December 31 at December 31
------------- --------------
1998 1998
------------- --------------
Fair value as determined by
quoted market or stated
redemption price:
VF Corporation Common Stock $ 23,962 $ 1,033,594
Mutual funds and
bank common trust funds 383,175 5,608,653
----------- -----------
407,137 6,642,247
Fair value as determined by
Plan trustee:
United States government
obligations 48,528 9,210,864
Commercial notes & GICs 0 2,746,428
Mutual funds and
bank common trust funds 0 2,754,364
----------- -----------
48,528 14,711,656
----------- -----------
$ 455,665 $21,353,903
=========== ===========
Unrealized appreciation in fair value of investments at December 31, 1998, was
$455,665.
25
VF CORPORATION TAX-ADVANTAGED SAVINGS PLAN FOR HOURLY EMPLOYEES
NOTES TO FINANCIAL STATEMENTS (Continued)
NOTE D -- INVESTMENTS (Continued)
Net realized appreciation (depreciation) in fair value of investments includes
the following:
Period Ended
December 31
1998
------------
Aggregate proceeds $45,566,398
Aggregate cost 45,400,137
-----------
Net realized gain $ 166,261
===========
Of the net realized gain, $15,214 related to losses recognized on the sale of VF
Common Stock for the year ended 1998.
The fair value of individual investments that represent 5% or more of the Plan's
net assets at December 31, 1998 are as follows:
1998
----
Fidelity Growth & Income Fund $1,524,360
Vanguard Institutional Index 1,425,108
UMB Bank Fund: Scout Prime R 2,754,364
New York Life GIC 2,043,276
26
VF CORPORATION TAX-ADVANTAGED SAVINGS PLAN FOR HOURLY EMPLOYEES
NOTE TO FINANCIAL STATEMENTS (Continued)
NOTE D -- INVESTMENTS (Continued)
Investments held at December 31, 1998:
NUMBER OF SHARES
Name of Issuer and Title of Issue OR PRINCIPAL AMOUNT FAIR VALUE COST
- --------------------------------- ------------------- ---------- ----
Securities of participating employer:
VF Corporation Common Stock 22,050 $ 1,033,594 $ 1,009,631
----------- -----------
1,033,594 1,009,631
----------- -----------
United States Government Obligations:
Small Business Administration Loans:
(Rates of 5.8% to 9.025%,
maturities of 12/01/2001 to 07/18/2012) 8,223,211 8,223,211
F.M.H.A. loans (Rates of 6.675% to 7.92%
maturities 04/29/2003 to 06/15/2007) 987,653 987,653
----------- -----------
9,210,864 9,210,864
----------- -----------
Other Securities:
Mutual funds and bank common trust funds:
Vanguard Money Market Fund 704,031 704,031 704,031
Fidelity Puritan Fund 37,670 756,029 732,820
Fidelity Growth & Income Fund 33,254 1,524,360 1,368,260
Vanguard Institutional Index Fund 12,628 1,425,108 1,252,988
Longleaf Partners Fund 15,274 335,260 352,741
Baron Asset Fund 13,684 691,582 622,319
Templeton Foreign Fund 20,534 172,283 192,320
UMB Bank Fund: Scout Prime - R 2,754,364 2,754,364 2,754,364
Oglebay Norton Company (Due 06/15/01) $ 500,000 495,900 495,900
Smith Enron Congeneration LP (Due 12/15/06) $ 202,000 207,252 202,000
New York Life GIC, 7.65% due 9/15/99 $ 2,000,000 2,043,276 2,000,000
----------- -----------
$21,353,903 $20,898,238
=========== ===========
27
VF CORPORATION TAX-ADVANTAGED SAVINGS PLAN FOR HOURLY EMPLOYEES
NOTES TO FINANCIAL STATEMENTS (Continued)
NOTE E -- RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500
The following is a reconciliation of net assets available for benefits per the
financial statements to Form 5500:
1998
----
Net assets available for benefits per the financial statements $21,712,399
Amounts allocated to withdrawing participants 317,265
-----------
Net assets available for benefits per Form 5500 $21,395,134
===========
The following is a reconciliation of withdrawals paid to participants per the
financial statements to Form 5500:
1998
----
Withdrawals paid to participants per the financial statements $6,498,737
Add amounts allocated to withdrawing participants at December 31, 1998 317,265
----------
Withdrawals paid to participants per Form 5500 $6,816,002
==========
Amounts allocated to withdrawing participants are recorded on Form 5500 as
withdrawal claims that have been processed and approved for payment prior to
December 31 but not yet paid as of that date.
28