Table_Of_Contents
UNITED STATES |
Washington, D.C. 20549 |
FORM 10-Q |
x Quarterly Report Pursuant to Section 13 or 15 (d) of the SecuritiesExchange Act of 1934 |
For the quarterly period ended June 30, 2003 |
o Transition Report Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934 |
For the transition period to |
For the Quarter Ended June 30, 2003 Commission file number 1-800 |
WM. WRIGLEY JR. COMPANY |
(Exact name of registrant as specified in its charter) |
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Delaware |
36-1988190 |
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(State of other jurisdiction of |
(I.R.S. Employer |
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410 North Michigan Avenue |
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(Address of principal executive office) |
(Zip Code) |
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(312) 644-2121 (Registrant's telephone number, including area code) |
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Indicate by check mark whether the registrant: (1) has filed all reports required to be filed |
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Indicate by check mark whether the Registrant is an accelerated filer |
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YES x NO o |
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WM. WRIGLEY JR. COMPANY |
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Page |
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PART I - FINANCIAL INFORMATION |
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Item 1 - Financial Statements |
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Consolidated Statement of Earnings (Condensed) for the Three Months Ended March 31, 2003 and Six Months Ended June 30, 2003 |
2 |
Consolidated Statement of Cash Flows (Condensed) for the Six Months Ended June 30, 2003 and 2002 |
3 |
Consolidated Balance Sheet (Condensed) as of June 30, 2003 and December 31, 2002 |
4 |
Notes to Consolidated Financial Statements (Condensed) |
5 - 7 |
Item 2 - Management's Discussion and Analysis of Results of Operations and Financial Condition |
8 - 9 |
Item 3 - Quantitative and Qualitative Disclosures About Market Risk |
10 |
Item 4 - Controls and Procedures |
10 |
PART II - OTHER INFORMATION |
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Item 6 - Exhibits and Reports on Form 8-K |
11 |
SIGNATURES |
12 |
INDEX TO EXHIBITS |
13 |
Exhibits 31 (a) and (b) |
14 - 15 |
Exhibits 32 (a) and (b) |
16 - 17 |
Table_Of_Contents
FORM 10-Q |
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Three Months Ended |
Six Months Ended |
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2003 |
2002 |
2003 |
2002 |
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Net sales |
$ |
792,614 |
708,467 |
$ |
1,465,007 |
1,307,493 |
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Cost of sales |
319,579 |
287,837 |
594,859 |
538,545 |
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Gross profit |
473,035 |
420,630 |
870,148 |
768,948 |
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Selling, general and administrative expense |
292,015 |
256,998 |
547,764 |
481,885 |
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Operating income |
181,020 |
163,632 |
322,384 |
287,063 |
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Investment income |
2,871 |
2,040 |
4,401 |
3,837 |
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Other income (expense) |
1,301 |
(5,136) |
1,081 |
(5,792) |
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Earnings before income taxes |
185,192 |
160,536 |
327,866 |
285,108 |
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Income taxes |
59,262 |
50,569 |
104,917 |
89,809 |
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Net earnings |
$ |
125,930 |
109,967 |
$ |
222,949 |
195,299 |
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Net earnings per average share |
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of common stock(basic and diluted) |
$ |
0.56 |
0.49 |
$ |
0.99 |
0.87 |
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Dividends declared per share |
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of common stock |
$ |
0.22 |
0.205 |
$ |
0.44 |
0.41 |
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Average number of shares |
|||||||||||||||||||||||||
Outstanding for the period |
225,111 |
225,180 |
225,082 |
225,075 |
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All amounts in thousands except for per share values. |
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Notes to financial statements beginning on page 5 are an integral part of these statements. | |||||||||||||||||||||||||
2 |
FORM 10-Q |
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Six Months Ended |
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2003 |
2002 |
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OPERATING ACTIVITIES |
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Net earnings |
$ |
222,949 |
195,299 |
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Adjustments to reconcile net earnings to net |
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cash provided by operating activities: |
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Depreciation |
50,271 |
41,120 |
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Gain/(loss) on sales of property, plant, |
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and equipment |
108 |
(201) |
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(Increase) decrease in: |
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Accounts receivable |
7,940 |
(40,855) |
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Inventories |
(26,840) |
(39,419) |
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Other current assets |
(14,617) |
(5,761) |
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Other assets and deferred charges |
4,129 |
(10,082) |
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Increase (decrease) in: |
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Accounts payable |
20,176 |
(7,165) |
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Accrued expenses |
(4,730) |
36,690 |
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Income and other taxes payable |
(9,896) |
8,795 |
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Deferred taxes |
2,267 |
(791) |
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Other noncurrent liabilities |
4,432 |
10,502 |
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Net cash provided by operating activities |
256,189 |
188,132 |
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INVESTING ACTIVITIES |
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Additions to property, plant, and equipment |
(66,670) |
(90,315) |
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Proceeds from property retirements |
1,464 |
2,536 |
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Purchases of short-term investments |
(17,756) |
(24,518) |
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Maturities of short-term investments |
21,545 |
27,120 |
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Net cash used in investing activities |
(61,417) |
(85,177) |
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FINANCING ACTIVITIES |
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Dividends paid |
(95,683) |
(88,875) |
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Net purchases of common stock |
(2,639) |
(5,305) |
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Net cash used in financing activities |
(98,322) |
(94,180) |
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Effect of exchange rate changes on cash and |
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cash equivalents |
1,982 |
9,884 |
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Net increase in cash and cash equivalents |
98,432 |
18,659 |
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Cash and cash equivalents at beginning of period |
279,276 |
307,785 |
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Cash and cash equivalents at end of period |
$ |
377,708 |
326,444 |
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SUPPLEMENTAL CASH FLOW INFORMATION |
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Income taxes paid |
$ |
107,692 |
84,666 |
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Interest paid |
$ |
1,032 |
818 |
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Interest and dividends received |
$ |
4,408 |
3,768 |
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All amounts in thousands. |
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Notes to financial statements beginning on page 5 are an integral part of these statements. | |||||||||||||||||||
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Table_Of_Contents
FORM 10-Q |
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June 30, |
December 31, |
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2003 |
2002 |
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Current assets: |
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Cash and cash equivalents |
$ |
377,708 |
279,276 |
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Short-term investments, at amortized cost |
22,397 |
25,621 |
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Accounts receivable |
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(less allowance for doubtful accounts; |
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6/30/03 - $7,302; 12/31/02 - $5,850) |
316,861 |
312,919 |
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Inventories - |
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Finished goods |
112,640 |
88,583 |
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Raw materials and supplies |
243,823 |
232,613 |
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356,463 |
321,196 |
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Other current assets |
68,184 |
47,720 |
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Deferred income taxes - current |
23,234 |
19,560 |
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Total current assets |
1,164,847 |
1,006,292 |
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Marketable equity securities at fair value |
17,135 |
19,411 |
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Deferred charges and other assets |
212,990 |
213,483 |
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Deferred income taxes - noncurrent |
32,660 |
33,000 |
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Property, plant, and equipment, at cost |
1,586,049 |
1,491,749 |
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Less accumulated depreciation |
715,635 |
655,639 |
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Net property, plant, and equipment |
870,414 |
836,110 |
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Total assets |
$ |
2,298,046 |
2,108,296 |
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Current liabilities: |
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Accounts payable |
$ |
122,445 |
97,705 |
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Accrued expenses |
181,250 |
172,137 |
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Dividends payable |
49,524 |
46,137 |
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Income and other taxes payable |
55,433 |
66,893 |
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Deferred income taxes - current |
3,065 |
3,215 |
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Total current liabilities |
411,717 |
386,087 |
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Deferred income taxes - noncurrent |
74,565 |
70,589 |
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Other noncurrent liabilities |
136,770 |
129,044 |
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Stockholders' equity: |
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Preferred stock (no par value) |
|||||||||||||||||||
Authorized - 20,000 shares |
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Issued -- None |
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Common stock (no par value) |
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Authorized - 400,000 shares |
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Issued - |
191,205 shares at 6/30/03 |
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190,898 shares at 12/31/02 |
12,740 |
12,719 |
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Class B common stock (convertible) |
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Authorized - 80,000 shares |
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Issued and outstanding - |
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41,236 shares at 6/30/03 |
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41,543 shares at 12/31/02 |
2,756 |
2,777 |
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Additional paid-in capital |
7,351 |
4,209 |
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Retained earnings |
2,027,696 |
1,902,990 |
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Common stock in treasury, at cost - |
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(6/30/03 - 7,190 shares; 12/31/02 -- 7,385 shares) |
(296,561) |
(297,156) |
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Accumulated other comprehensive income: |
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Foreign currency translation adjustment |
(86,938) |
(112,303) |
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Loss on derivative contracts |
(1,431) |
(853) |
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Unrealized holding gains on marketable |
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equity securities |
9,381 |
10,193 |
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Total accumulated other comprehensive income |
(78,988) |
(102,963) |
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Total stockholders' equity |
1,674,994 |
1,522,576 |
|||||||||||||||||
Total liabilities & stockholders' equity |
$ |
2,298,046 |
2,108,296 |
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All amounts in thousands. |
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Notes to financial statements beginning on page 5 are an integral part of these statements. |
4
FORM 10-Q |
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4. |
An analysis of the cumulative foreign currency translation adjustment follows (in thousands of dollars). |
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Increase to |
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Second Quarter |
2003 |
2002 |
||||||||||||||||
Balance at April 1 |
$ |
112,903 |
158,362 |
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Translation adjustment for |
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|
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Balance at June 30 |
$ |
86,938 |
125,795 |
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Increase to |
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Six Months |
2003 |
2002 |
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Balance at January 1 |
$ |
112,303 |
149,310 |
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Translation adjustment for |
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Balance at June 30 |
$ |
86,938 |
125,795 |
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5. |
An analysis of comprehensive income is provided below (in thousands of dollars). |
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|
Three Months Ended |
Six Months Ended |
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2003 |
2002 |
2003 |
2002 |
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Net earnings |
$ |
125,930 |
109,967 |
222,949 |
195,299 |
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Changes in other comprehensive income, |
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Foreign currency |
|
|
|
|
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Unrealized holding gains (losses) |
|
|
|
|
||||||||||||||
Gain (loss) on derivative contracts |
(2,560) |
111 |
(775) |
(989) |
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Changes in other comprehensive income, |
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Changes in income tax benefit related to items |
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|
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Changes in other comprehensive income, |
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|
|
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Total comprehensive income |
$ |
151,303 |
140,012 |
246,924 |
214,788 |
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6 |
FORM 10-Q |
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6. |
Segment Information |
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Management organizes the Company's chewing gum and other confectionery business based on geographic regions. Information by geographic region is as follows (in thousands of dollars): |
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Net Sales |
Three Months Ended |
Six Months Ended |
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2003 |
2002 |
2003 |
2002 |
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Americas, principally U.S. |
$ |
310,987 |
301,861 |
572,307 |
546,673 |
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EMEAI, principally Europe |
377,480 |
296,037 |
672,086 |
536,900 |
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Asia |
76,934 |
84,368 |
166,722 |
173,189 |
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Pacific |
23,219 |
21,940 |
45,811 |
41,319 |
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All Other |
3,994 |
4,261 |
8,081 |
9,412 |
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Net Sales |
$ |
792,614 |
708,467 |
1,465,007 |
1,307,493 |
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"All Other" net sales consists primarily of sales of gum base to customers and sales for Wrigley Healthcare. |
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Operating Income |
Three Months Ended |
Six Months Ended |
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2003 |
2002 |
2003 |
2002 |
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Americas, principally U.S. |
$ |
78,485 |
82,680 |
140,928 |
137,983 |
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EMEAI, principally Europe |
112,036 |
89,167 |
184,873 |
157,171 |
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Asia |
19,106 |
22,135 |
49,719 |
47,680 |
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Pacific |
7,051 |
3,844 |
13,985 |
9,448 |
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All Other |
(35,658) |
(34,194) |
(67,121) |
(65,219) |
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Operating Income |
$ |
181,020 |
163,632 |
322,384 |
287,063 |
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"All Other" operating income includes corporate expenses, such as costs related to research and development, information systems, and certain administrative functions and operating losses for Wrigley Healthcare. |
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7 |
FORM 10-Q
PART I -- FINANCIAL INFORMATION -- ITEM 2
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
RESULTS OF OPERATIONS AND FINANCIAL CONDITION
RESULTS OF OPERATIONS
Net Sales
Net sales for the second quarter were $792.6 million, up $84.1 million or 12% versus the second quarter of 2002. Higher worldwide shipments increased sales revenue by 3%. Additionally, selected selling price increases, primarily in the International regions, increased sales by approximately 2%. Translation of stronger foreign currencies, primarily in Europe, to the weaker U.S. dollar increased net sales by approximately 7%.
Net sales for the first six months were $1,465.0 million, up $157.5 million or 12% versus the first six months of 2002. Higher worldwide shipments increased sales revenue by approximately 4%. In addition, selected selling price increases, primarily in the International regions, increased sales by approximately 1%. Translation of foreign currencies to a weaker U.S. dollar increased sales by approximately 7%.
Costs of Sales and Gross Profit
Cost of sales for the second quarter was $319.6 million, up $31.7 million or 11% versus the second quarter of 2002. Higher shipments increased cost of sales by 3%. Additionally, unfavorable product mix increased cost of sales by 1%. Translation of foreign currencies to a weaker U.S. dollar increased cost of sales by 7%.
Gross profit for the quarter was $473.0 million, up $52.4 million or 12% from the same period last year. The gross profit margin was 59.7%, up slightly from 59.4% in the second quarter of 2002.
Cost of sales for the first six months was $594.9 million, up $56.3 million or 10% versus the first six months of 2002. Higher shipments increased cost of sales by 4%. Product cost/mix for the first six months of 2003 was essentially the same as last year. Translation of foreign currencies to a weaker U.S. dollar increased cost of sales by approximately 6%.
Gross profit for the first six months was $870.1 million, up $101.2 million or 13% from the same period last year. The gross profit margin was 59.4%, up from 58.8% in the first six months of 2002.
Selling, General and Administrative Expenses
Consolidated selling, general and administrative expenses (SG&A) for the second quarter were $292.0 million, up $35.0 million or 14% from the same period last year. Excluding the impact of foreign currency translation, consolidated SG&A were up 7%. Higher brand support, driven primarily by increased merchandising and promotion spending in the U.S. and Europe in support of new products, increased SG&A by 2%. Higher selling and other marketing expenses to support growth in key geographies increased SG&A by 2%. Finally, general and administrative expenses increased SG&A by 3%. This increase included higher investments in new technology and research and development spending.
For the first six months of 2003, SG&A were $547.8 million, up $65.9 million or 14% from the same period last year. Excluding the impact of foreign currency translation, consolidated SG&A were up 8%. Higher brand support, driven primarily by increased merchandising and promotion spending in support of new products, increased SG&A by 3%. Higher selling and other marketing expenses increased SG&A by 3% due to investment in key geographies primarily in Europe and the U.S. Finally, general and administrative expenses increased SG&A by 2%, driven primarily by investments in information technology and research and development spending.
As a percentage of consolidated net sales, the expenses were as follows:
Three Months Ended |
Six Months Ended |
||||||
2003 |
2002 |
2003 |
2002 |
||||
Advertising |
12.3% |
13.7% |
12.5% |
13.8% |
|||
Merchandising and Promotion/Other |
6.5% |
5.2% |
6.5% |
5.0% |
|||
Total Brand Support |
18.8% |
18.9% |
19.0% |
18.8% |
|||
Selling and Other Marketing |
9.7% |
9.3% |
10.0% |
9.7% |
|||
General and Administrative |
8.3% |
8.1% |
8.4% |
8.4% |
|||
Total |
36.8% |
36.3% |
37.4% |
36.9% |
|||
|
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8 |
FORM 10-Q
PART I -- FINANCIAL INFORMATION -- ITEM 2 (Cont'd)
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
RESULTS OF OPERATIONS AND FINANCIAL CONDITION
Investment Income
Investment income for the second quarter was $2.9 million, up $0.8 million or 41% versus the second quarter of last year. Investment income for the first six months of 2003 was $4.4 million, up $0.6 million or 15% versus the first six months of last year. The increase for both the second quarter and the first six months of 2003 reflect gains from the sale of marketable equity securities, which were primarily offset by lower worldwide yields on cash and short-term investments.
Other Income/Expense
Other income for the second quarter was $1.3 million, compared to other expense of $5.1 million for the second quarter last year. Other income for the first six months of 2003 was $1.1 million, compared to other expense of $5.8 million for the first six months of last year. The improved results for both quarter and year-to-date were driven primarily by market driven portfolio gains in 2003, compared with losses in 2002, associated with the cash surrender value of company-owned life insurance, and 2002 foreign currency transaction losses in Europe.
Income Taxes
Income taxes for the second quarter were $59.3 million, up $8.7 million or 17% from the second quarter of 2002. Pretax earnings were $185.2 million, an increase of $24.7 million or 15%. Income taxes for the first six months were $104.9 million, up $15.1 million or 17% from the first six months 2002. Pretax earnings were $327.9 million, an increase of $42.8 million or 15%. The consolidated effective tax rates were 32.0% for the second quarter and first six months, compared to 31.5% for the same period last year. The increase in the effective tax rate is mainly due to the mix of pretax earnings and higher U.S. taxes on repatriation of foreign earnings.
Net Earnings
Consolidated net earnings for the second quarter of 2003 totaled $125.9 million or $0.56 per share compared to last year's net earnings of $110.0 million of $0.49 per share for the same period.
Consolidated net earnings for the first six months of 2003 totaled $222.9 million or $0.99 per share compared to last year's net earnings of $195.3 million or $0.87 per share for the same period.
LIQUIDITY AND CAPITAL RESOURCES
Operating Cash Flow and Current Ratio
Net cash provided by operating activities for the first six months of 2003 was $256.2 million compared with $188.1 million for the same period in 2002. The change in net cash provided by operating activities is due to increased net earnings and reduced levels of working capital investment in 2003 versus 2002. The Company had a current ratio (current assets divided by current liabilities) in excess of 2.7 to 1 on June 30, 2003 and 2.6 on December 31, 2002.
Additions to Property, Plant and Equipment
Capital expenditures for the first six months of 2003 were $66.7 million compared to $90.3 million in 2002. The decrease in 2003 versus 2002 was due to lower spending on worldwide manufacturing capacity and investments in information technology. For the full year 2003, capital expenditures are expected to be slightly below 2002 levels and also planned to be funded from the Company's cash flow from operations.
9
FORM 10-Q
PART I -- FINANCIAL INFORMATION -- ITEM 2 (Cont'd)
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
RESULTS OF OPERATIONS AND FINANCIAL CONDITION
Item 3 - Quantitative and Qualitative Disclosures About Market Risk
Market Risk
Inherent in the Company's operations are certain risks related to foreign currency, interest rates, and the equity markets. The Company identifies these risks and mitigates their financial impact through its corporate policies and hedging activities. The Company believes that movements in market values of financial instruments used to mitigate identified risks are not expected to have a material impact on future earnings, cash flows, or reported fair values.
Statements contained in this report may be considered to be forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements. The Company wishes to ensure that such statements are accompanied by meaningful cautionary statements to comply with the safe harbor under the Act. The Company notes that a variety of factors could cause actual results to differ materially from the anticipated results or expectations expressed in these forward-looking statements.
Important factors that may influence the operations, performance, development and results of the Company's business include global and local business and economic conditions; currency exchange and interest rates; ingredients, labor, and other operating costs; insufficient or under utilization of manufacturing capacity; destruction of all or part of manufacturing facilities; labor strikes or unrest; political or economic instability in local markets; war or acts of terrorism; competition and other industry trends; retention of preferred retail space; effectiveness of marketing campaigns or new product introductions; consumer preferences, spending patterns, and demographic trends; legislation and governmental regulation; and accounting policies and practices.
We caution the reader that the list of factors may not be exhaustive. The Company undertakes no obligation to update any forward-looking statement, whether as a result of new information, future events, or otherwise.
Item 4 - Controls and Procedures
Disclosure Control and Procedures
As of June 30, 2003, the Company's Chief Executive Officer and Chief Financial Officer conducted an evaluation of the effectiveness of the Company's disclosure controls and procedures. Based on that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the Company's disclosure controls and procedures were effective as of June 30, 2003. Additionally, there have been no significant changes in the Company's internal controls that could significantly affect these controls subsequent to June 30, 2003, including any corrective actions with regard to significant deficiencies and material weaknesses.
10
FORM 10-Q
Item 6 - Exhibits and Reports on Form 8-K
(a) |
Exhibits reference is made to the Exhibit Index on page 13. |
(b) |
On April 22, 2003, the Company filed a report on Form 8-K. The report contained a press release issued by the Company, regarding the Company's result of operations and financial condition for the fiscal quarter ended March 31, 2003. |
(c) |
On May 1, 2003, the Company filed a report on Form 8-K. The report disclosed that William Wrigley, Jr., President and chief Executive Officer of the Company and Trustee of certain Wrigley family trusts established a pre-arranged trading plan under Rule 10b5-1 of the Securities Exchange Act of 1934. |
11
Table_Of_ContentsFORM 10-Q
Pursuant to the requirements of the Securities Exchange Act of 1934, |
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the registrant has duly caused this report to be signed on its behalf |
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by the undersigned thereunto duly authorized. |
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WM. WRIGLEY JR. COMPANY |
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(Registrant) |
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By |
/s/ Reuben Gamoran |
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Reuben Gamoran |
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Date August 14, 2003 |
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12
WM. WRIGLEY JR. COMPANY |
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Exhibit |
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3. |
Articles of Incorporation and By-laws. |
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(i). |
Certificate of Incorporation of the Registrant. The Registrant's Amended and Restated Certificate of Incorporation effective from March 5, 2002 is incorporated by reference to Exhibit 3(i) of the Company's Quarterly Report on Form 10-Q filed for the fiscal quarter ended March 31, 2002. |
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(ii). |
By-laws of the Registrant. The Registrant's Amended and Restated By-laws effective March 5, 2002 is incorporated by reference to Exhibit 3(ii) of the Company's Quarterly Report on Form 10-Q filed for the fiscal quarter ended March 31, 2002. |
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4. |
Instruments defining the rights of security holders. The Stockholder Rights Plan is incorporated by reference to Exhibit 4.1 of the Company's Report on Form 8-K filed June 5, 2001. |
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10. |
Material Contracts |
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10(a). |
Non-Employee Directors' Death Benefit Plan. Incorporated by reference to the Company's Annual Report on Form 10-K filed for the fiscal year ended December 31, 1994. |
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10(b). |
Senior Executive Insurance Plan. Incorporated by reference to the Company's Annual Report on Form 10-K filed for the fiscal year ended December 31, 1995. |
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10(c). |
Supplemental Retirement Plan. Incorporated by reference to the Company's Annual Report on Form 10-K filed for the fiscal year ended December 31, 1995. |
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10(d). |
Deferred Compensation Plan for Non-Employee Directors. Incorporated by reference to the Company's Annual Report on Form 10-K filed for the fiscal year ended December 31, 1995. |
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10(e). |
Stock Deferral Plan for Non-Employee Directors (formerly Stock Retirement Plan For Non-Employee Directors) as amended, is incorporated by reference to Exhibit 10(e) of the Company's Annual Report on Form 10-K filed for the fiscal year ended December 31, 2002. |
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10 (f). |
Wm. Wrigley Jr. Company 1997 Management Incentive Plan. The Registrant's Amended Management Incentive Plan, effective from March 5, 2002, is incorporated by reference to the Company's Quarterly Report on Form 10-Q filed for the fiscal quarter ended March 31, 2002. |
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10 (g). |
Forms of Change-in-Control Severance Agreement. Incorporated by reference to Exhibits 10(h) and 10(i) to the Company's Quarterly Report on Form 10-Q filed for the fiscal quarter ended September 30, 2001. |
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31. |
Rule 13a-14(a)/15a-14(a) Certifications |
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31 (a). |
Certification of Mr. William Wrigley, Jr., President and Chief Executive Officer |
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31 (b). |
Certification of Mr. Ronald V. Waters, Senior Vice President and Chief Financial Officer |
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32. |
Section 1350 Certifications |
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32(a). |
Certification of Mr. William Wrigley, Jr., President and Chief Executive Officer |
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32(b) |
Certification of Mr. Ronald V. Waters, Senior Vice President and Chief Financial Officer |
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For copies of Exhibits not attached hereto, the Registrant will furnish them upon request and upon payment to the Registrant of a fee in the amount of $20.00 representing reproduction and handling costs. |
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13 |
31(a). Certification of Disclosure Pursuant to 17 C.F.R. 240.13a-14(a) or 15a-14(a)
I, William Wrigley, Jr., certify that: |
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1. |
I have reviewed this quarterly report on Form 10-Q of the Wm. Wrigley Jr. Company; |
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2. |
Based on my knowledge, this quarterly report does not contain any untrue statement or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report; |
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3. |
Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report; |
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4. |
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15 and 15d-15) for the registrant and we have: |
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a) |
designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared; |
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b) |
evaluated the effectiveness of the registrant's disclosure controls and procedures as of June 30, 2003 (the "Evaluation Date"); and |
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c) |
Presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date. |
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5. |
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent function): |
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a) |
all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and |
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b) |
fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control; and |
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6. |
The registrant's other certifying officer and I have indicated in this quarterly report whether or not there were significant changes in internal controls that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. |
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Date: August 14, 2003 |
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/s/ William Wrigley, Jr. |
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William Wrigley, Jr. |
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14 |
31. Rule 13a-14(A) or 15A-14(A) Certifications
31(b). Certification of Disclosure Pursuant to 17 C.F.R. 240.13a-14(a) or 15a-14(a)
1. |
I have reviewed this quarterly report on Form 10-Q of the Wm. Wrigley Jr. Company; |
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2. |
Based on my knowledge, this quarterly report does not contain any untrue statement or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report; |
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3. |
Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report; |
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4. |
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15 and 15d-15) for the registrant and we have: |
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a) |
designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared; |
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b) |
evaluated the effectiveness of the registrant's disclosure controls and procedures as of June 30, 2003 (the "Evaluation Date"); and |
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c) |
Presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date. |
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5. |
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent function): |
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a) |
all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and |
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b) |
fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control; and |
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6. |
The registrant's other certifying officer and I have indicated in this quarterly report whether or not there were significant changes in internal controls that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. |
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Date: August 14, 2003 |
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/s/ Ronald V. Waters |
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Ronald V. Waters |
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15 |
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(32)(a) Certification of Mr. William Wrigley, Jr., pursuant to Section 1350 of Chapter 63 of Title 8 of the United |
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I, William Wrigley, Jr., the Chief Executive Officer of Wm. Wrigley Jr. Company (the "Company"), certify that to the best of my knowledge: |
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(i) |
the Quarterly Report of the Company on the Form 10-Q, dated August 14, 2003, for the period ended June 30, 2003, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
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(ii) |
the information contained in the said Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company. |
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/s/ William Wrigley, Jr. |
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William Wrigley, Jr. |
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Dated the 14th day of August, 2003 |
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16
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(32)(b) Certification of Mr. Ronald V. Waters, pursuant to Section 1350 of Chapter 63 of Title 8 of the United |
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I, Ronald V. Waters, the Chief Financial Officer of Wm. Wrigley Jr. Company (the "Company"), certify that to the best of my knowledge: |
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(i) |
the Quarterly Report of the Company on the Form 10-Q, dated August 14, 2003, for the period ended June 30, 2003, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
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(ii) |
the information contained in the said Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company. |
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/s/ Ronald V. Waters |
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Ronald V. Waters |
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Dated the 14th day of August, 2003 |
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17 |