11-K 1 h26581e11vk.htm THE MEN'S WEARHOUSE, INC. - DECEMBER 31, 2004 e11vk
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UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 11-K

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

(Mark One)

   
þ
ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED]

For the Fiscal Year Ended December 31, 2004

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 No. 1-16097

A. Full title of the plan and address of the plan, if different from that of the issuer named below:

THE MEN’S WEARHOUSE, INC.
401(k) SAVINGS PLAN

B. Name of issuer of the securities held pursuant to the plan and the address of its principal executive offices:

THE MEN’S WEARHOUSE, INC.

5803 Glenmont Drive
Houston, Texas 77081
 
 

 


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The Men’s Wearhouse, Inc.
401(k) Savings Plan

Financial Statements for the Years Ended
December 31, 2004 and 2003, Supplemental
Schedules for the Year Ended December 31, 2004
and Report of Independent Registered Public
Accounting Firm

 


THE MEN’S WEARHOUSE, INC.
401(k) SAVINGS PLAN

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    Page  
    1  
 
       
FINANCIAL STATEMENTS AS OF DECEMBER 31, 2004 AND 2003 AND FOR THE YEARS THEN ENDED:
       
 
       
    2  
 
       
    3  
 
       
    4  
 
       
SUPPLEMENTAL SCHEDULES FOR THE YEAR ENDED DECEMBER 31, 2004:
       
 
       
    8  
 
       
    9  
 
       
    10  
 
       
    11  
 Consent of Deloitte & Touche LLP
 Certification Pursuant to Section 906

Schedules Omitted

Schedules other than those listed above are omitted because of the absence of the conditions under which they are required.

 


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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Participants of
The Men’s Wearhouse, Inc. 401(k) Savings Plan
Houston, Texas

We have audited the accompanying statements of net assets available for benefits of The Men’s Wearhouse, Inc. 401(k) Savings Plan (the “Plan”) as of December 31, 2004 and 2003, and the related statements of changes in net assets available for 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 standards of the Public Company Accounting Oversight Board (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. The Plan is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Plan’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, 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 as of December 31, 2004 and 2003, and the changes in net assets available for benefits for the years then ended in conformity with accounting principles generally accepted in the United States of America.

Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedules of (1) assets (held at end of year) as of December 31, 2004, and (2) transactions in excess of five percent of the current value of plan assets for the year ended December 31, 2004, 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. These schedules are the responsibility of the Plan’s management. Such schedules have been subjected to the auditing procedures applied in our audit of the basic 2004 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
Houston, Texas
June 27, 2005

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THE MEN’S WEARHOUSE, INC.
401(k) SAVINGS PLAN

STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS,
DECEMBER 31, 2004 AND 2003

 
                 
    2004     2003  
CASH
  $ 691     $ 4,604  
 
           
 
               
INVESTMENTS, At fair value:
               
Mutual Fund Assets:
               
American Beacon Small Cap Value Fund
    288,095        
American Century Small Company Fund
    1,985,861        
American Funds EuroPacific Growth Fund
    3,362,097        
American Funds Growth Fund of America
    7,843,224        
Barclays Global Investors S&P 500 Fund
    10,031,272        
Barclays Global Investors Lifepath Retirement Fund
    6,280        
Barclays Global Investors Lifepath 2010 Fund
    90,343        
Barclays Global Investors Lifepath 2020 Fund
    138,147        
Barclays Global Investors Lifepath 2030 Fund
    200,652        
Barclays Global Investors Lifepath 2040 Fund
    36,812        
Dodge & Cox Stock Fund
    871,064        
Pacific Investment Management Company Total Return Fund
    3,928,532        
AXP Cash Management Fund
          5,096,380  
AXP Bond Fund
          2,197,336  
AXP Balanced Mutual Fund
          3,020,420  
AXP Blue Chip Advantage Fund
          5,910,688  
AXP New Dimensions Fund
          6,450,817  
Franklin Small-Mid Cap Fund
          1,275,230  
Invesco Dynamics Fund
          704,680  
Janus Overseas Fund
          2,413,603  
AET Equity Index II Fund
          684,002  
Union Bank of California Stable Value Fund
    7,147,696        
The Men’s Wearhouse Stock Fund
    6,778,368       6,219,449  
Loans to Participants
    2,672,131       2,316,844  
 
           
 
               
Total investments
    45,380,574       36,289,449  
 
           
 
               
CONTRIBUTIONS RECEIVABLE:
               
Employees
    124,640       106,608  
Employer
    6,639       6,579  
 
           
 
               
Total contributions receivable
    131,279       113,187  
 
           
 
               
Accrued investment income
    391,636        
 
           
 
               
NET ASSETS AVAILABLE FOR BENEFITS
  $ 45,904,180     $ 36,407,240  
 
           

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THE MEN’S WEARHOUSE, INC.
401(k) SAVINGS PLAN

STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
FOR THE YEARS ENDED DECEMBER 31, 2004 AND 2003

 
                 
    2004     2003  
ADDITIONS TO NET ASSETS ATTRIBUTED TO:
               
Investment income:
               
Net appreciation in fair value of investments
  $ 3,883,327     $ 6,033,695  
Interest and dividends
    639,237       384,773  
 
           
 
               
Total investment income
    4,522,564       6,418,468  
 
               
Employee contributions
    7,155,525       5,834,358  
Employer contributions
    730,383       600,024  
 
           
 
               
Total contributions
    7,885,908       6,434,382  
 
           
 
               
Total additions
    12,408,472       12,852,850  
 
               
DEDUCTIONS FROM NET ASSETS ATTRIBUTED TO:
               
Benefit payments
    2,893,271       2,623,989  
Administrative expenses
    18,261        
 
           
 
               
Total deductions
    2,911,532       2,623,989  
 
           
 
               
NET INCREASE IN NET ASSETS AVAILABLE FOR BENEFITS
    9,496,940       10,228,861  
 
NET ASSETS AVAILABLE FOR BENEFITS:
               
Beginning of year
    36,407,240       26,178,379  
 
           
 
               
End of year
  $ 45,904,180     $ 36,407,240  
 
           

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THE MEN’S WEARHOUSE, INC.
401(k) SAVINGS PLAN

NOTES TO FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2004 AND 2003

 

1.   DESCRIPTION OF PLAN

The following description of The Men’s Wearhouse, Inc. 401(k) Savings Plan (the “Plan”) provides only general information. Participants should refer to the plan and trust agreements for more information.

General - The Plan is a defined contribution plan that has most recently been amended and restated effective February 20, 2004. The purpose of the Plan is to provide eligible employees with future retirement benefits through a deferred savings program. The Plan year ends on December 31. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 (“ERISA”) and subsequent amendments and revisions.

Effective April 1, 2004, the Company changed its trustee and record keeper from American Express Trust Company to Union Bank of California, N. A. (the “Trustee”).

Eligibility - The Plan provides that certain employees of The Men’s Wearhouse, Inc. and participating subsidiaries (the “Company”) become eligible to participate after ninety days of service.

Administration - The Plan is administered by an advisory committee made up of four employees. The Company pays all administrative expenses of the Plan, with the exception of certain participant loan fees, brokerage commissions and Securities and Exchange fees, which are paid by the Plan. Investments of the Plan are held in trust by the Trustee.

Contributions - Eligible employees may make pre-tax contributions up to 75% of compensation subject to the current year statutory limitations (subject to cost-of-living adjustments). Participants who have attained age 50 before the end of the Plan year are eligible to make catch-up contributions. Effective April 1, 2003, the Board of Directors of the Company approved an increase in the matching percentage from 10% to 20% on the first $2,000 salary deferral for all qualified participants, for a maximum $400 contribution per year. Prior to April 1, 2003, the matching percentage was 10% on the first $2,000 salary deferral for all qualified participants, for a maximum $200 contribution per year.

Authorized Investments - Employee contributions are deposited into a trust account which is invested by the Trustee in various investment options as directed by each employee. The investment options available in 2004 and in 2003, respectively, include fourteen and ten fund investments maintained by the corresponding Trustee. Plan participants, at their sole discretion, may transfer amounts between the various investment options in accordance with the terms of the Plan.

Vesting - Employees are 100% vested in their salary deferral contribution accounts and their employer contribution accounts.

Distributions to Participants - Upon termination of service, a participant may elect to receive a lump-sum payment equal to the value of his or her account. The Plan also permits distributions to active participants if certain conditions are met.

Participant Loans - Plan loans are available to all active Plan participants on a nondiscriminatory basis. Amounts may not exceed the lesser of $50,000 or one-half of the current value of a participant’s vested account balance. All loans are fully secured by the balance in the participant’s account.

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2.   SUMMARY OF ACCOUNTING POLICIES

Basis of Accounting - The financial statements of the Plan are prepared on the accrual basis 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 assets and liabilities and changes therein, and disclosure of contingent assets and liabilities. Actual results could differ from those estimates.

Investment Valuation and Income Recognition – Short-term investments and Particpant loans are stated at cost, which approximates fair value. Investments in common collective funds are based on quoted market values as determined by the issuer based on the fair value of the underlying investments. Investments in stocks and mutual funds are stated at fair value, based on quotations from national securities exchanges.

Purchases and sales of securities are recorded on a trade-date basis. The net (depreciation) appreciation in fair value of investment securities consists of the net change in unrealized (depreciation) appreciation in fair value and realized gains (losses) upon the sale of investments. The net change in unrealized (depreciation) appreciation and realized gains (losses) upon sale are determined using the fair values as of the beginning of the year or the purchase price if acquired since that date.

Payment of Benefits - Benefits are recorded when paid.

3.   RISKS AND UNCERTAINTIES

The Plan provides for various investments in common stock, registered investment companies and common collective investments. Investment securities, in general, are exposed to various risks, such as interest rate, credit and overall market volatility risk. 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 change could materially affect participants’ account balances and the amounts reported in the statement of net assets available for benefits.

4.   PLAN TERMINATION

Although it has not expressed an intent to do so, the Company has the right under the Plan to terminate the Plan subject to the provisions of ERISA. In the event of Plan termination, participants will remain 100% vested in their accounts.

5.   TAX STATUS

The Internal Revenue Service (the “IRS”) determined and informed the Company by letter dated June 4, 2002, that the Plan and related trust, as amended and restated effective January 1, 2002, were designed in accordance with applicable sections of the Internal Revenue Code (the “IRC”). 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 designed and is currently being operated in compliance with the applicable requirements of the IRC.

6.   BENEFITS PAYABLE

As of the report date, the Company had not completed discrimination testing for the year ended December 31, 2004. For the year ended December 31, 2003, $73,162 was refunded during 2004 as a result of the 2003 tests. Management believes the amount of refunds, if any, resulting from the 2004 testing cannot be reasonably estimated and therefore no liability has been recorded for such refunds.

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7.   RELATED PARTY TRANSACTIONS

Certain Plan investments are shares of a common collective investment fund managed by the Trustee of the Plan. The Men’s Wearhouse Stock Fund invests in the common stock of the Company. Transactions with the Trustee and the Company, as well as participant loans, qualify as party-in-interest transactions.

8.   INVESTMENTS

Individual investments which exceed 5% of net assets available for plan benefits as of December 31, 2004 and 2003, are as follows:

                     
        2004   2003
 
  American Funds EuroPacific Growth Fund     3,362,097     — 
 
  American Funds Growth Fund of America     7,843,224     — 
 
  Barclays Global Investors S&P 500 Fund     10,031,272     — 
 
  Pacific Investment Management Company Total Return Fund     3,928,532     — 
*
  AXP Cash Management Fund           5,096,380  
*
  AXP Bond Fund           2,197,336  
*
  AXP Balanced Mutual Fund           3,020,420  
*
  AXP Blue Chip Advantage Fund           5,910,688  
*
  AXP New Dimensions Fund           6,450,817  
 
  Janus Overseas Fund           2,413,603  
*
  Union Bank of California Stable Value Fund     7,147,696     — 
*
  The Men’s Wearhouse Stock Fund     6,778,368       6,219,449  
*
  Loans to Participants     2,672,131       2,316,844  
 
  *   Party-in-interest

During 2004 and 2003, the Plan’s investments (including gains (losses) on investments bought and sold, as well as held during the year) appreciated in value, as follows:

                 
    2004     2003  
Mutual funds
  $ 2,234,765     $ 3,877,518  
Collective investment fund
    9,911       130,095  
Stock fund
    1,638,651       2,026,082  
 
           
 
  $ 3,883,327     $ 6,033,695  
 
           

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9.   RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500

The following is a reconciliation of net assets available for benefits per the financial statements at December 31, 2004 and 2003 to Form 5500:

                 
    2004     2003  
Net assets available for benefits per the financial statements
  $ 45,904,180     $ 36,407,240  
Deemed distributions to withdrawing participants at year end
          (8,691 )
 
           
Net assets available for benefits per the Form 5500
  $ 45,904,180     $ 36,398,549  
 
           

The following is a reconciliation of benefits paid to participants per the financial statements for the years ended December 31, 2004 and 2003 to Form 5500:

                 
    2004     2003  
Benefits paid per the financial statements
  $ 2,893,271     $ 2,623,989  
Add (Less): Amounts allocated as deemed distributions to withdrawing participants at December 31, 2003
    (8,691 )     8,691  
Less: Amounts allocated as deemed distributions to withdrawing participants at December 31, 2002
          (49,314 )
Less: Amounts allocated as deemed distributions to withdrawing participants at December 31, 2000
          (15,774 )
 
           
Benefits paid per Form 5500
  $ 2,884,580     $ 2,567,592  
 
           

******

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THE MEN’S WEARHOUSE, INC.
401(k) SAVINGS PLAN

SCHEDULE H, LINE 4i — SCHEDULE OF ASSETS (HELD AT END OF YEAR),
DECEMBER 31, 2004

 
                     
        (c)          
        Description of          
    (b)   Investment, Including          
    Identity of Issuer,   Maturity Date , Rate       (e )  
    Borrower, Lessor, or   of Interest, Collateral,   (d)   Current  
(a )   Similar Party   Par or Maturity Value   Cost   Value  
 
  MUTUAL FUNDS -                
 
  American Beacon   American Beacon Small Cap Value Fund   (2)   $ 288,095  
 
  American Century Investments   American Century Small Company Fund   (2)     1,985,861  
 
  American Funds   American Funds EuroPacific Growth Fund   (2)     3,362,097  
 
  American Funds   American Funds Growth Fund of America   (2)     7,843,224  
 
  Barclays Global Investors   Barclays Glbl Invest S&P 500 Fund   (2)     10,031,272  
 
  Barclays Global Investors   Barclays Glbl Invest LP Retirement Fund   (2)     6,280  
 
  Barclays Global Investors   Barclays Glbl Invest Lifepath 2010 Fund   (2)     90,343  
 
  Barclays Global Investors   Barclays Glbl Invest Lifepath 2020 Fund   (2)     138,147  
 
  Barclays Global Investors   Barclays Glbl Invest Lifepath 2030 Fund   (2)     200,652  
 
  Barclays Global Investors   Barclays Glbl Invest Lifepath 2040 Fund   (2)     36,812  
 
  Dodge & Cox   Dodge & Cox Stock Fund   (2)     871,064  
 
  Pacific Investment Management Co.   Pacific Invest Mgmt Co. Total Return Fund   (2)     3,928,532  
 
                 
 
                   
 
  TOTAL MUTUAL FUNDS           $ 28,782,379  
 
                 
 
                   
 
  COLLECTIVE INVESTMENT FUND -                
*
  Union Bank of California   Union Bank of California Stable Value Fund   (2)   $ 7,147,696  
 
                 
 
                   
 
  OTHER -                
*
  The Men’s Wearhouse, Inc.   The Men’s Wearhouse Stock Fund   (2)   $ 6,778,368  
 
                 
 
                   
*
  LOANS TO PARTICIPANTS   Loans to Participants (1)   (2)   $ 2,672,131  
 
                 
 
*   Party-in-interest

(1)   Generally five-year installment notes with interest rates originating at prime + 1% , resulting in interest rates ranging from 5.0% to 10.5% .
 
(2)   Cost information has been omitted because all investments are participant-directed.

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THE MEN’S WEARHOUSE, INC.
401(k) SAVINGS PLAN

 
SCHEDULE H, LINE 4j—SCHEDULE OF REPORTABLE TRANSACTIONS,
DECEMBER 31, 2004
 
                                                             
(a)   (b)   (c)     (d)     (e)     (f)     (g)     (h)     (i)  
    Description of                                           Current        
    Asset (Include                           Expense             Value of        
Identity   Interest Rate and                           Incurred             Assets on        
of Party   Maturity In Case   Purchase     Selling     Lease     With     Cost     Transaction     Net Gain  
Involved   of a Loan)   Price     Price     Rental     Transaction     of Asset     Date     or (Loss)  
Transactions involving an amount in excess of 5% of the current value of Plan assets as of December 31, 2003
                                                       
 
                                                           
SINGLE TRANSACTIONS—
                                                           
 
                                                           
*American Express
  AXP Cash Management Fund           $ 5,762,446                     $ 5,762,446             $  
*American Express
  AXP Bond Fund             2,375,846                       2,318,114               57,732  
*American Express
  AXP Balanced Mutual Fund             3,218,613                       3,251,613               (33,000 )
*American Express
  AXP Blue Chip Advantage Fund             6,078,108                       6,237,598               (159,490 )
*American Express
  AXP New Dimensions Fund             6,298,160                       6,423,958               (125,798 )
  Janus
  Janus Overseas Fund             2,779,104                       2,307,011               472,093  
 
                                                           
Pacific Investment Mgmt. Co.
  Pacific Investment Mgmt. Co. Total Return Fund   $ 3,663,291                                                  
Barclays Global Investor
  Barclays Global Investors S&P 500     8,858,256                                                  
American Funds
  American Funds Growth Fund of America     7,134,383                                                  
American Funds
  American Funds EuroPacific Growth Fund     2,779,104                                                  
 
                                                           
* Union Bank of California
  Union Bank of California Stable Value Fund     5,762,446                                                  

SERIES OF TRANSACTIONS—

   None

 
*      Party-in-interest

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Advisory Committee of the Men’s Wearhouse, Inc. 401(k) Savings Plan has duly caused this annual report to be signed by the undersigned hereunto duly authorized.

     
 
  THE MEN’S WEARHOUSE, INC.
 
  401(k) SAVINGS PLAN
 
   
Date: June 28, 2005
  /s/ Neill P. Davis
 
   
 
  Neill P. Davis,
 
  Executive Vice President, Chief Financial Officer and
 
  Principal Financial Officer

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INDEX TO EXHIBITS

         
Exhibit        
Number       Description
23.1
  -   Consent of Deloitte & Touche LLP, independent auditors (filed herewith).
 
32.1
  -   Certification Pursuant to 18 U.S.C Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith).

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