1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
|X| ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2000,
OR
|_| TRANSITIONAL REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from ______ to _____.
Commission file number 0-02788
THE ELDER-BEERMAN STORES CORP. FINANCIAL PARTNERSHIP PLAN
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(Full title of the Plan)
THE ELDER-BEERMAN STORES CORP. 3155 El-Bee Road, Dayton, Ohio 45439
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(Name of issuer of the securities held pursuant to the Plan
and the address of its principal executive office)
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THE ELDER-BEERMAN STORES CORP. FINANCIAL PARTNERSHIP PLAN
Financial Statements as of December 31, 2000 and 1999 and for the
Year Ended December 31, 2000 and Supplemental Schedule as of
December 31, 2000 and Independent Auditors' Report
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THE ELDER-BEERMAN STORES CORP.
FINANCIAL PARTNERSHIP PLAN
TABLE OF CONTENTS
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PAGE
Independent Auditors' Report 1
FINANCIAL STATEMENTS AS OF DECEMBER 31, 2000 AND 1999 AND FOR THE YEAR ENDED
DECEMBER 31, 2000:
Statements of Net Assets Available for Benefits 2
Statement of Changes in Net Assets Available for Benefits 3
Notes to Financial Statements 4 - 6
SUPPLEMENTAL SCHEDULE AS OF DECEMBER 31, 2000 -
Schedule of Assets Held for Investment Purposes at End of Year 7
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INDEPENDENT AUDITORS' REPORT
To The Elder-Beerman Stores Corp. Financial Partnership
Plan Committee:
We have audited the accompanying statements of net assets available for benefits
of The Elder-Beerman Stores Corp. Financial Partnership Plan (the "Plan") as of
December 31, 2000 and 1999, and the related statement of changes in net assets
available for benefits for the year ended December 31, 2000. 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 auditing standards generally accepted
in the United States of America. 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 the Plan as of
December 31, 2000 and 1999, and the changes in net assets available for benefits
for the year ended December 31, 2000 in conformity with accounting principles
generally accepted in the United States of America.
Our audits were performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedule, listed in the
table of contents, is presented for the purpose of additional analysis and is
not a required part of the basic financial statements but is supplementary
information required by the Department of Labor's Rules and Regulations for
Reporting and Disclosure under the Employee Retirement Income Security Act of
1974. The supplemental schedule is the responsibility of the Plan's management.
The supplemental schedule has been subjected to the auditing procedures applied
in our audits 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.
Deloitte & Touche LLP
April 13, 2001
Dayton, Ohio
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THE ELDER-BEERMAN STORES CORP.
FINANCIAL PARTNERSHIP PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
DECEMBER 31, 2000 AND 1999
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2000 1999
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INVESTMENTS, at fair value (Note C):
Elder-Beerman Stores Corp. Common Stock $ 1,168,755 $ 2,114,455
Mutual Funds:
American Century Income and Growth Fund 10,776,903 12,467,006
American Century Strategic Asset Allocation Fund:
Aggressive 2,792,828 2,470,069
Conservative 4,928,539 5,203,103
Moderate 11,168,927 12,929,376
American Century Value Fund 2,514,633 2,378,426
American Century Stable Asset Fund 4,432,358 5,532,537
American Century International Growth Fund 3,806,694 4,016,584
American Century Ultra Fund 12,781,714 15,441,794
Participant notes receivable 1,778,270 2,131,890
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Total investments 56,149,621 64,685,240
Receivables:
Employer contributions 1,148,203 2,003,932
Employee contributions 116,883
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Total receivables 1,265,086 2,003,932
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NET ASSETS AVAILABLE FOR BENEFITS $57,414,707 $66,689,172
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See notes to financial statements.
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THE ELDER-BEERMAN STORES CORP.
FINANCIAL PARTNERSHIP PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
YEAR ENDED DECEMBER 31, 2000
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ADDITIONS (Note C):
Investment income:
Dividends and interest $ 5,015,463
Net depreciation in fair value of investments (10,133,136)
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Total investment loss (5,117,673)
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Contributions:
Employer 1,177,371
Participant 3,781,841
Rollover 70,462
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Total contributions 5,029,674
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Total additions (87,999)
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DEDUCTIONS:
Benefits paid to participants 9,017,368
Investment and administrative expenses 169,098
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Total deductions 9,186,466
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NET DECREASE (9,274,465)
NET ASSETS AVAILABLE FOR BENEFITS:
Beginning of year 66,689,172
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End of year $ 57,414,707
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See notes to financial statements.
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THE ELDER-BEERMAN STORES CORP.
FINANCIAL PARTNERSHIP PLAN
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2000 AND 1999
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A. DESCRIPTION OF PLAN
The following brief description of The Elder-Beerman Stores Corp.
Financial Partnership Plan (the "Plan") is provided for general
information only. Participants should refer to the Summary Plan
Description for more complete information.
GENERAL - The Plan is a defined-contribution plan covering all employees
of the Elder-Beerman Stores Corp. (the "Company") and its affiliates who
have completed at least one year of continuous service, have been credited
with 1,000 or more hours of service during that year and are age 18 or
older. The Plan is subject to the provisions of the Employee Retirement
Income Security Act of 1974 ("ERISA").
CONTRIBUTIONS - Each year participants are permitted to defer a portion of
their compensation, not less than 1% or more than 15% (in 1% increments),
subject to other limitations imposed by law. The Company makes matching
contributions by determining its level of profitability and comparing it
to a pre-determined contribution table. All active employees on the last
day of the Plan year are eligible to receive a matching contribution. For
each plan year, the Company may make an annual contribution not to exceed
1% of the employee's compensation while they were a participant for the
plan year. Each participant is eligible to receive an annual contribution
for the Plan year if they were an active employee on the last day of the
Plan year for which the annual contribution is made, they completed at
least 1,000 hours of service during the Plan year, and the Company
realizes a 1% profit.
PARTICIPANTS' ACCOUNTS - Individual accounts are maintained for each Plan
participant. Each participant's account is credited with the participant's
contribution and his/her proportionate share of the Company's
contribution, actual earnings and charged with an allocation of
administrative expenses. Allocations are based on each participant's
compensation, as provided in the Plan agreement. The benefit to which a
participant is entitled is the benefit that can be provided from the
participant's vested account.
VESTING - Participants are immediately vested in their contributions, plus
actual earnings thereon. Vesting in the Company's matching and
discretionary annual contribution portion of their account, plus actual
earnings thereon is based on years of credited service. A participant is
non-vested until reaching five credited years of service, thereafter, they
are fully vested. Forfeited balances of terminated participants are used
to reduce future Company contributions.
INVESTMENT OPTIONS - Upon enrollment in the Plan, a participant may direct
investment of their 401(k) account balance in any of nine investment
options. Participants may change their investment options at any time
during the plan year.
PAYMENT OF BENEFITS - On termination of service due to any reason, a
participant may elect to receive either a lump-sum payment directly or a
rollover distribution payment into an eligible retirement account.
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PARTICIPANT LOANS - The Plan allows participants to apply for and obtain
loans in an amount defined in the Plan (not less than $500 and limited to
50% of the participant's account balance provided such loans do not exceed
$50,000) from the balance of the participant's account. All loans must be
repaid within five years. The loans are secured by the balance in the
participant's account and bear interest at a rate determined by the
Company from time to time. Payments of principal and interest are credited
to the participant's account.
B. SUMMARY OF ACCOUNTING POLICIES
BASIS OF ACCOUNTING - The financial statements of the Plan are prepared
using the accrual method of accounting.
USE OF ESTIMATES - The preparation of financial statements in conformity
with accounting principles generally accepted in the United States of
America requires management to make estimates and assumptions that affect
the reported amounts of net assets available for benefits and changes
therein. Actual results could differ from those estimates. The Plan
utilizes various investment instruments. Investment securities, in
general, are exposed to various risks, such as interest rate, credit and
overall market volatility. Due to the level of risk associated with
certain investment securities, it is reasonably possible that changes in
the values of investment securities will occur in the near term and that
such changes could materially affect the amounts reported in the
statements of net assets available for benefits.
INVESTMENT VALUATION AND INCOME RECOGNITION - The Plan's investments are
stated at fair value. Shares of mutual funds are valued at the net asset
value of shares held by the Plan at year end. The Company stock is valued
at its quoted market price. Participant notes receivable are valued at
cost, which approximates fair value.
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.
ADMINISTRATIVE EXPENSES - Certain administrative functions are performed
by officers or employees of the Company. No such officer or employee
receives compensation from the Plan. A significant amount of the Plan's
legal expenses are paid and/or reimbursed by the Plan Sponsor.
Administrative expenses for the trustees and other fees are paid directly
by the Plan.
PAYMENT OF BENEFITS - Benefits are recorded when paid.
C. INVESTMENTS
The Plan's investments that represent five percent or more of the Plan's
net assets available for benefits as of December 31, 2000 and 1999, are as
follows.
2000 1999
American Century Income and Growth Fund $10,776,903 $12,467,006
American Century Strategic Asset Allocation Fund:
Conservative 4,928,539 5,203,103
Moderate 11,168,927 12,929,376
American Century Stable Asset Fund 4,432,358 5,532,537
American Century Ultra Fund 12,781,714 15,441,794
American Century International Growth Fund 3,806,694 4,016,584
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During 2000, the Plan's investments (including gains and losses on
investments bought and sold, as well as held during the year) depreciated
in value by $10,133,136 as follows:
Mutual funds $ (9,229,694)
Common stock (903,442)
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Total $(10,133,136)
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D. INCOME TAX STATUS
Prior to restatement, the Internal Revenue Service ("IRS") issued a
favorable determination letter dated November 4, 1996, stating that the
Plan, as then amended, was in compliance with the applicable requirements
of the Internal Revenue Code. The Plan sponsor intends to file a request
with the IRS for a determination letter on the restated Plan adopted July
1, 1999. Plan management believes that the restated Plan is currently
designed and being operated in compliance with the applicable requirements
of the Internal Revenue Code and, therefore, the Plan is qualified and
tax-exempt as of the financial statement date.
E. 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, all vested benefits will be distributed to participants
and beneficiaries.
F. RELATED PARTY TRANSACTIONS
Certain Plan investments are shares of mutual funds managed by American
Century. American Century is the trustee as defined by the Plan and,
therefore, these transactions qualify as party-in-interest transactions.
* * * * * *
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THE ELDER-BEERMAN STORES CORP.
FINANCIAL PARTNERSHIP PLAN
SCHEDULE OF INVESTMENTS HELD FOR INVESTMENT PURPOSES AT END OF YEAR
DECEMBER 31, 2000
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(b) (c)
IDENTITY OF ISSUER, DESCRIPTION OF INVESTMENT INCLUDING (e)
BORROWER, LESSOR OR MATURITY DATE, RATE OF INTEREST, FAIR
(A) SIMILAR PARTY COLLATERAL, PAR OR MATURITY VALUE VALUE
MUTUAL FUNDS:
* American Century Income and Growth Fund, 356,969 shares $10,776,903
* American Century Strategic Asset Allocation Fund: Aggressive, 385,218 shares 2,792,828
* American Century Strategic Asset Allocation Fund: Conservative, 919,469 shares 4,928,539
* American Century Strategic Asset Allocation Fund: Moderate, 1,770,037 shares 11,168,927
* American Century Value Fund, 394,143 shares 2,514,633
* American Century International Growth Fund, 348,279 shares 3,806,694
* American Century Ultra Fund, 394,863 shares 12,781,714
SEI Trust American Century Stable Asset Fund, 4,432,358 shares 4,432,358
Participant notes receivable Collateralized by participant's account (8% - 10.5%) 1,778,270
* Elder-Beerman Stores Corp. Common Stock, 395,967 shares 1,168,755
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TOTAL INVESTMENTS $56,149,621
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* Party-in-interest.
Column (d) has been omitted because it is not applicable.
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SIGNATURES
The Plan. Pursuant to the requirements of the Securities Exchange Act of 1934,
the trustees (or other person who administer the employee benefit plan) have
duly caused this annual report to be signed on its behalf by the undersigned
hereunto duly authorized.
THE ELDER-BEERMAN STORES CORP.
FINANCIAL PARTNERSHIP PLAN
Date: June 29, 2001 By: /s/ Scott J. Davido
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Scott J. Davido
Executive Vice President --
Chief Financial Officer, Treasurer and Secretary
The Elder-Beerman Stores Corp.
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FORM 11-K
INDEX TO EXHIBITS
EXHIBIT NO.
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23 Consent of Independent Auditors