Financial Statements

SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549

_____________

FORM 11-K

ANNUAL REPORT
PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

(Mark One):

ý ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED, EFFECTIVE OCTOBER 7, 1996].

For the fiscal year ended December 31, 2000

OR

o TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED].

For the transition period from __________ to __________

Commission file number 1-724    

A. Full title of the plan and the address of the plan, if different from that of the issuer named below: PVH Associates Investment Plan For Residents Of The Commonwealth Of Puerto Rico

B. Name of issuer of the securities held pursuant to the plan and the address of its principal executive office: Phillips-Van Heusen Corporation, 200 Madison Avenue, New York, New York 10016

 

SIGNATURES

The Plan. Pursuant to the requirements of the Securities Exchange Act of 1934, the Administrative Committee has duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized.

 

PHILLIPS-VAN HEUSEN CORPORATION ASSOCIATES INVESTMENT PLAN FOR RESIDENTS OF THE COMMONWEALTH OF PUERTO RICO

   
   

Date: June 27, 2001

By /s/ Pamela N. Hootkin

 

Pamela N. Hootkin, Member of

Administrative Committee

Phillips-Van Heusen Corporation

Associates Investment Plan for

Residents of the Commonwealth of Puerto Rico

 

 

Financial Statements

 

 

Years ended December 31, 2000 and 1999

 

 

Contents

 

 

 

Report of Independent Auditors

F-2

Statements of Net Assets Available for Plan Benefits

F-3

Statements of Changes in Net Assets Available for Plan Benefits

F-4

Notes to Financial Statements

F-5

The Plan's investment assets are held in a Master Trust for which a separate report is filed with the Department of Labor. Accordingly, supplemental schedules of Asset Held for Investment Purpose and Reportable Transactions of the Master Trust have not been presented.

 

 

 

F-1

[Letterhead of Ernst & Young LLP]

 

 

 

 

Report of Independent Auditors

Administrative Committee of the Plan

Phillips-Van Heusen Corporation

Associates Investment Plan for
Residents of the Commonwealth of Puerto Rico

We have audited the accompanying statements of net assets available for plan benefits of the Phillips-Van Heusen Corporation Associates Investment Plan for Residents of the Commonwealth of Puerto Rico as of December 31, 2000 and 1999, and the related statements of changes in net assets available for plan benefits 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 auditing standards generally accepted in the United States. 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 plan benefits of the Plan as of December 31, 2000 and 1999, and the changes in its net assets available for plan benefits for the years then ended, in conformity with accounting principles generally accepted in the United States.

/s/ Ernst & Young LLP

 

June 18, 2001

 

F-2

Phillips-Van Heusen Corporation

Associates Investment Plan for

Residents of the Commonwealth of Puerto Rico

Statements of Net Assets Available for Plan Benefits

 

 

December 31

 

2000

1999

Assets

   

Investments, at fair value (Notes A and E):

   

Shares of registered investment companies:

   

Equity Fund

$ 40,456

$ 62,691

Bond Fund

8,629

13,634

Balanced Fund

44,146

58,181

International Fund

3,977

5,387

S&P 500 Index Fund

1,634

4,861

Small Cap Fund

739

256

Common Stock-Employer Company Fund

34,463

45,112

Common Trust Fund *

8,562

21,022

Participant loans receivable

2,384

3,371

Net assets available for plan benefits

$144,990

$214,515

 

 

* Consists of the Money Market Fund (Chase Manhattan Bank Domestic Liquidity Fund).

 

See notes to financial statements.

 

 

 

F-3

Phillips-Van Heusen Corporation

Associates Investment Plan for

Residents of the Commonwealth of Puerto Rico

Statements of Changes in Net Assets Available for Plan Benefits

 

 

Year ended December 31

 

2000

1999

Additions

   

Contributions:

   

Employer Company, net of forfeitures

$ 455

$ 26,547

Employees

1,055

67,055

 

1,510

93,602

Interest and investment income

7,460

27,376

Total additions

8,970

120,978

     

Deductions

   

Payments to participants

83,638

546,144

Administrative expenses

144

-

Total deductions

83,782

546,144

     

Net realized and unrealized appreciation of investments

5,287

27,918

Net decrease

(69,525)

(397,248)

     

Net assets available for plan benefits at beginning of year

214,515

611,763

Net assets available for plan benefits at end of year

$ 144,990

$ 214,515

 

 

See notes to financial statements.

 

F-4

Phillips-Van Heusen Corporation

Associates Investment Plan for

Residents of the Commonwealth of Puerto Rico

Notes to Financial Statements

December 31, 2000

 

A. Description of the Plan

The following description of the Phillips-Van Heusen Corporation ("the Company") Associates Investment Plan for Salaried Associates (the "Plan") provides only general information. Participants should refer to the Plan Document for a more complete description of the Plan's provisions.

General

The Plan is a defined contribution plan covering salaried clerical and hourly production associates of Phillips-Van Heusen Corporation (the "Company") who are residents of the Commonwealth of Puerto Rico, have at least one year of service (1,000 hours in a year) and are age 21 or older. The Plan is subject to the reporting and disclosure requirements of the Employee Retirement Income Security Act of 1974 ("ERISA").

Contributions

Each year, participants may contribute up to 10% of pretax annual compensation, as defined by the Plan. Through March 31, 1999, the Company contributed 50% of the first 6% of base compensation that a participant contributed to the Plan. Effective April 1, 1999, the Company matched 100% of the first 2% of base compensation that a participant contributed to the Plan plus 25% of the next 4% of base compensation contributed by the participant.

Participant Accounts

Each participant's account is credited with the participant's contributions and allocations of (a) the Company's contributions and (b) Plan earnings. Forfeited balances of terminated participants' nonvested accounts are used to reduce future Company contributions. Through March 31, 1999, 100% of the Company contributions were automatically invested in the common stock of the Company. Effective April 1, 1999, the Company contributions were invested in any fund offered by the Plan as elected by the participant. However, existing balances as of March 31, 1999 must remain in the Employer Company Fund until participants are age 55 or older, at which time they may choose to transfer their investment.

 

 

F-5

Phillips-Van Heusen Corporation

Associates Investment Plan for

Residents of the Commonwealth of Puerto Rico

Notes to Financial Statements (continued)

 

A. Description of the Plan (continued)

Vesting

Through March 31, 1999, amounts attributable to Company contributions become vested on the participant's 65th birthday or if the participant's employment by the Company terminates by reason of the participant's death or permanent disability or the participant has completed five years of service with the Company. Effective April 1, 1999, the Company's contribution becomes 25% vested after two years from the participant's date of hire and vests 25% more each year, reaching 100% after five years of service.

Investment Options

Upon enrollment in the Plan, a participant may direct employee contributions into any of six investment options. A participant may contribute a maximum of 25% of employee contributions into the Phillips-Van Heusen Corporation Common Stock Fund.

Participant Loans Receivable

Participants may borrow from the Plan, with certain restrictions, using their vested account balance as collateral. The minimum loan amount is $1,000 and the maximum loan amount is the lesser of (i) $50,000 reduced by the participant's highest outstanding loan balance during the previous 12 months, or (ii) 50% of the vested value of the participant's account. Interest is fixed for the term of the loan at the prime rate as of first business day of the month of application as published in The Wall Street Journal, plus 1%. Loan repayments are made through payroll deductions which may be specified for a term of 1 to 5 years or up to 15 years for the purchase of a primary residence.

Forfeitures

Contributions made on behalf of non-vested employees who have terminated are retained by the Plan and are used to reduce the Company's future matching contributions. At December 31, 1999, approximately $65,000 was held by the Plan as forfeitures of non-vested terminated employees.

 

F-6

Phillips-Van Heusen Corporation

Associates Investment Plan for

Residents of the Commonwealth of Puerto Rico

Notes to Financial Statements (continued)

 

A. Description of the Plan (continued)

Payment of Benefits

Participants entitled to final distributions generally will receive payment in the form of a lump-sum amount equal to the value of their vested account.

Plan Termination

Although it has not expressed any intent to do so, the Company has the right under the Plan to discontinue its contributions at any time and to terminate the Plan subject to the provisions of ERISA. In the event of Plan termination, participants will become 100% vested in their accounts.

B. Significant Accounting Policies

The accounting records of the Plan are maintained on the accrual basis.

Substantially all administrative expenses are paid by the Company.

In accordance with the Rules and Regulations of the Department of Labor, investments are included in the accompanying financial statements at market value as determined by quoted market prices or at fair value as determined by the trustee. Purchases and sales of securities are reflected on a trade date basis.

All assets of the Plan are held by the trustee in the Company's Associates Investment Plan Master Trust (the "AIP Master Trust") and are segregated from the assets of the Company. The Plan shares in AIP Master Trust interest and investment income based upon its participants' shares of AIP Master Trust net assets available for plan benefits.

The preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

 

 

F-7

Phillips-Van Heusen Corporation

Associates Investment Plan for

Residents of the Commonwealth of Puerto Rico

Notes to Financial Statements (continued)

 

 

C. Transactions with Parties-in-Interest

During the years ended December 31, 2000 and 1999, the AIP Master Trust purchased 218,613 and 134,121 shares, respectively, of the Company's common stock and received $201,414 and $206,205, respectively, from the Company as payment of dividends on its common stock. The AIP Master Trust also sold 308,224 and 42,849 shares of the Company's common stock during the years ended December 31, 2000 and 1999, respectively.

 

 

 

 

 

F-8

Phillips-Van Heusen Corporation

Associates Investment Plan for

Residents of the Commonwealth of Puerto Rico

Notes to Financial Statements (continued)

 

D. Changes in the AIP Master Trust Net Assets Held by Fund

Changes in the AIP Master Trust net assets held by fund during the year ended December 31, 2000 were as follows:

 

Phillips-Van Heusen Corporation Common
Stock Fund

 

Money

Market

Fund

 

 

Bond

Fund

 

 

Balanced

Fund

 

 

Equity

Fund

 

Current

International

Fund

 

 

Small Cap

Fund

 

S&P 500
Index

Fund

 

 

Loan

Fund

 

 

 

Total

                     

Net assets at beginning of year

$11,470,437

$ 7,318,089

$2,181,663

$11,050,161

$23,614,787

$4,494,773

$ 590,045

$2,404,387

$1,012,658

$64,137,000

Interest and investment income

241,462

436,127

140,182

824,130

2,041,452

239

48

38,431

7,982

3,730,053

Contributions received:

                   

Employer Company, net of forfeitures

1,001,222

68,837

42,130

141,679

368,032

87,919

134,025

429,225

-

2,273,069

Employees

235,295

405,572

247,585

872,219

1,882,725

475,499

302,956

852,413

-

5,274,264

Net realized and unrealized appreciation (depreciation)

6,171,260

-

61,565

(111,799)

(2,467,571)

(618,802)

28,415

(419,459)

-

2,643,609

Loans to participants, net of repayments

105,167

777

3,385

20,900

9,863

7,515

7,051

(19,082)

153,322

288,898

Payments to participants

(1,433,444)

(1,109,293)

(214,644)

(1,383,482)

(2,695,150)

(725,111)

(105,076)

(281,836)

(17,482)

(7,965,518)

Administrative expenses

(81)

(9,857)

(29)

(1)

(12)

(58,112)

(14,543)

-

-

(82,635)

Transfers (to) from other accounts

(382,389)

(178,702)

(195,518)

(1,358,771)

(1,076,918)

647,330

1,421,311

1,124,339

(682)

-

Net assets at end of year

$17,408,929

$ 6,931,550

$2,266,319

$10,055,036

$21,677,208

$4,311,250

$2,364,232

$4,128,418

$1,155,798

$70,298,740

                     

Plan's beneficial interest at end of year

$ 34,463

$ 8,562

$ 8,629

$ 44,146

$ 40,456

$ 3,977

$ 739

$ 1,634

$ 2,384

$ 144,990

 

Note: Certain funds above include investments in the Chase Manhattan Bank Domestic Liquidity Fund.

F-9

Phillips-Van Heusen Corporation

Associates Investment Plan for

Residents of the Commonwealth of Puerto Rico

Notes to Financial Statements (continued)

 

D. Changes in the AIP Master Trust Net Assets Held by Fund (continued)

Changes in the AIP Master Trust net assets held by fund during the year ended December 31, 1999 were as follows:

 

Phillips-Van Heusen Corp. Common
Stock Fund

Money

Market

Fund

 

Bond

Fund

 

Balanced

Fund

 

Equity

Fund

Prior

International

Fund

Current

International

Fund

 

Small Cap

Fund

S&P 500
Index

Fund

 

Loan

Fund

 

 

Total

                       

Net assets at beginning of year

$ 9,414,931

$11,971,150

$2,267,092

$11,531,743

$21,524,027

$ 3,102,987

$ -

$ -

$ -

$1,277,474

$ 61,089,404

Interest and investment income

214,127

430,750

138,478

910,728

1,560,485

23

558

66

20,457

104,046

3,379,718

Contributions received:

                     

Employer Company, net of forfeitures

1,390,132

35,878

29,878

103,013

284,658

927

30,241

48,537

270,658

-

2,193,922

Employees

263,002

475,927

320,138

1,149,344

2,306,608

154,523

293,215

114,911

464,066

-

5,541,734

Net realized and unrealized appreciation (depreciation)

1,608,452

-

(116,831)

(586,889)

658,027

199,933

1,352,997

105,301

225,610

-

3,446,600

Loans to participants, net of repayments

12,301

(26,125)

(6,087)

(21,836)

(41,100)

11,412

(30,680)

(4,344)

(14,455)

120,914

-

Payments to participants

(1,150,380)

(5,085,127)

(369,106)

(1,370,777)

(2,690,712)

(58,662)

(269,592)

(668)

(21,978)

(490,265)

(11,507,267)

Administrative expenses

(5,048)

(2,017)

(4)

(10)

(15)

(1)

(1)

(2)

(3)

(10)

(7,111)

Transfers (to) from other accounts

(277,080)

(482,347)

(81,895)

(665,155)

12,809

64,882

(357,989)

326,244

1,460,032

499

-

Transfer (to) from International Fund

-

-

-

-

-

(3,476,024)

3,476,024

-

-

-

-

Net assets at end of year

$11,470,437

$ 7,318,089

$2,181,663

$11,050,161

$23,614,787

$ -

$4,494,773

$590,045

$2,404,387

$1,012,658

$64,137,000

                       

Plan's beneficial interest at end of year

$ 45,112

$ 21,022

$ 13,634

$ 58,181

$ 62,691

$ -

$ 5,387

$ 256

$ 4,861

$ 3,371

$ 214,515

 

Note: Certain funds above include investments in the Chase Manhattan Bank Domestic Liquidity Fund.

 

F-10

Phillips-Van Heusen Corporation

Associates Investment Plan for

Residents of the Commonwealth of Puerto Rico

Notes to Financial Statements (continued)

 

E. Non Participant-Directed Investments

Information about the net assets and the significant components of the change in net assets relating to the non-participant directed investments is as follows:

 

December 31

 

2000

1999

Net assets:

   

Common stock

$34,463

$45,112

     
   

Year ended December

31, 2000

     

Changes in net assets:

   

Contributions

 

$ (2,217)

Earnings and net realized and unrealized
appreciation in fair value

 

(11,499)

Distributions to participants

 

2,571

Transfers to participant directed investments

 

(189)

Loans to participants net of repayments

 

685

Administrative expenses

 

-

   

$(10,649)

F. Income Tax Status

The Plan has received a determination letter from the Internal Revenue Service dated April 27, 1995, stating that the Plan is qualified under Section 401(a) of the Internal Revenue Code (the "Code") and, therefore, the related trust is exempt from taxation. Once qualified, the plan is required to operate in conformity with the Code to maintain its qualification. The Plan Administrator believes the Plan is being operated in compliance with the applicable requirements of the Code and, therefore, believes that the Plan is qualified and the related trust is tax-exempt.

 

 

F-11

EXHIBIT INDEX

 

Exhibit No.

1 Consent of Independent Auditors

Exhibit 1

Exhibit 1

 

 

 

Consent of Independent Auditors

 

 

We consent to the incorporation by reference in the Registration Statement (Form S-8 No. 33-46810) pertaining to the Phillips-Van Heusen Corporation Associates Investment Plan for Residents of the Commonwealth of Puerto Rico of our report dated June 18, 2001, with respect to the financial statements of the Phillips-Van Heusen Corporation Associates Investment Plan for Residents of the Commonwealth of Puerto Rico included in this Annual Report (Form 11-K) for the year ended December 31, 2000.

/s/ Ernst & Young LLP

New York, New York

June 25, 2001