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Table_Of_Contents

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 10-Q

 

x   Quarterly Report Pursuant to Section 13 or 15 (d) of the Securities
Exchange 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)

     

Delaware

 

36-1988190

(State of other jurisdiction of
incorporation or organization)

 

(I.R.S. Employer
Identification No.)

     

410 North Michigan Avenue
Chicago, Illinois

 


60611

(Address of principal executive office)

 

(Zip Code)

     

(312) 644-2121
(Registrant's telephone number, including area code)

 

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed
by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to file for such reports), and
(2) has been subject to such filing requirements for the past 90 days.
YES   x      NO   o

 

Indicate by check mark whether the Registrant is an accelerated filer
(as defined under rule 12b-2 of the Securities and Exchange Act of 1934).

YES   x      NO   o


183,833,875 shares of Common Stock and 41,229,917 shares of Class B Common Stock
were outstanding as of July 15, 2003.

TABLE OF CONTENTS

PART I FINANCIAL INFORMATION

ITEM 1 FINANCIAL INFORMATION

CONSOLIDATED STATEMENT OF EARNINGS (CONDENSED) FOR THREE MONTHS ENDED MARCH 31, 2003 AND SIX MONTHS ENDED JUNE 30, 200

CONSOLIDATED STATEMENT OF CASH FLOWS (CONDENSED) FOR SIX MONTHS ENDED JUNE 30, 2003 AND 2002

CONSOLIDATED BALANCE SHEET (CONDENSED) AS OF JUNE 30, 2003 AND DECEMBER 31, 2002

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONDENSED)

ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION

ITEM 3 - QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ITEM 4 - CONTROLS AND PROCEDURES

PART II - OTHER INFORMATION

ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K

SIGNATURES

INDEX TO EXHIBITS

Certification of Disclosure Pursuant to 17 C.F.R. 240.13a-14(a) or 15a-14(a) - William Wrigley, Jr.

Certification of Disclosure Pursuant to 17 C.F.R. 240.13a-14(a) or 15a-14(a) - Ronald V. Waters

Certification Pursuant to Section 1350 of Chapter 63 of Title 18 of the United States Code - William Wrigley, Jr.

Certification Pursuant to Section 1350 of Chapter 63 of Title 18 of the United States Code - Ronald V. Waters

Table of Contents

WM. WRIGLEY JR. COMPANY
INDEX TO FORM 10-Q

Page

PART I - FINANCIAL INFORMATION

Item 1 - Financial Statements

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

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
PART I - FINANCIAL INFORMATION - ITEM 1
WM. WRIGLEY JR. COMPANY
CONSOLIDATED STATEMENT OF EARNINGS (CONDENSED)
(Unaudited)

Three Months Ended
March 31,

Six Months Ended
June 30,

2003

2002

2003

2002

Net sales

$

792,614

708,467

$

1,465,007

1,307,493

Cost of sales

319,579

287,837

594,859

538,545

Gross profit

473,035

420,630

870,148

768,948

Selling, general and administrative expense

292,015

256,998

547,764

481,885

Operating income

181,020

163,632

322,384

287,063

Investment income

2,871

2,040

4,401

3,837

Other income (expense)

1,301

(5,136)

1,081

(5,792)

Earnings before income taxes

185,192

160,536

327,866

285,108

Income taxes

59,262

50,569

104,917

89,809

Net earnings

$

125,930

109,967

$

222,949

195,299

Net earnings per average share

     of common stock(basic and diluted)

$

0.56

0.49

$

0.99

0.87

Dividends declared per share

     of common stock

$

0.22

0.205

$

0.44

0.41

Average number of shares

     Outstanding for the period

225,111

225,180

225,082

225,075

All amounts in thousands except for per share values.

Notes to financial statements beginning on page 5 are an integral part of these statements.

2

Table_Of_Contents

FORM 10-Q
PART I -- FINANCIAL INFORMATION -- ITEM 1 (Cont'd)
WM. WRIGLEY JR. COMPANY
CONSOLIDATED STATEMENT OF CASH FLOWS (CONDENSED)
(Unaudited)

Six Months Ended
June 30,

2003

2002

OPERATING ACTIVITIES

Net earnings

$

222,949

195,299

Adjustments to reconcile net earnings to net

cash provided by operating activities:

Depreciation

50,271

41,120

Gain/(loss) on sales of property, plant,

and equipment

108

(201)

(Increase) decrease in:

Accounts receivable

7,940

(40,855)

Inventories

(26,840)

(39,419)

Other current assets

(14,617)

(5,761)

Other assets and deferred charges

4,129

(10,082)

Increase (decrease) in:

Accounts payable

20,176

(7,165)

Accrued expenses

(4,730)

36,690

Income and other taxes payable

(9,896)

8,795

Deferred taxes

2,267

(791)

Other noncurrent liabilities

4,432

10,502

Net cash provided by operating activities

256,189

188,132

INVESTING ACTIVITIES

Additions to property, plant, and equipment

(66,670)

(90,315)

Proceeds from property retirements

1,464

2,536

Purchases of short-term investments

(17,756)

(24,518)

Maturities of short-term investments

21,545

27,120

Net cash used in investing activities

(61,417)

(85,177)

FINANCING ACTIVITIES

Dividends paid

(95,683)

(88,875)

Net purchases of common stock

(2,639)

(5,305)

Net cash used in financing activities

(98,322)

(94,180)

Effect of exchange rate changes on cash and

cash equivalents

1,982

9,884

Net increase in cash and cash equivalents

98,432

18,659

Cash and cash equivalents at beginning of period

279,276

307,785

Cash and cash equivalents at end of period

$

377,708

326,444

SUPPLEMENTAL CASH FLOW INFORMATION

Income taxes paid

$

107,692

84,666

Interest paid

$

1,032

818

Interest and dividends received

$

4,408

3,768

All amounts in thousands.

Notes to financial statements beginning on page 5 are an integral part of these statements.


3

Table_Of_Contents

FORM 10-Q
PART I -- FINANCIAL INFORMATION -- ITEM 1 (Cont'd)
WM. WRIGLEY JR. COMPANY
CONSOLIDATED BALANCE SHEET (CONDENSED)
(Unaudited)

June 30,

December 31,

2003

2002

Current assets:

Cash and cash equivalents

$

377,708

279,276

Short-term investments, at amortized cost

22,397

25,621

Accounts receivable

(less allowance for doubtful accounts;

6/30/03 - $7,302; 12/31/02 - $5,850)

316,861

312,919

Inventories -

Finished goods

112,640

88,583

Raw materials and supplies

243,823

232,613

356,463

321,196

Other current assets

68,184

47,720

Deferred income taxes - current

23,234

19,560

Total current assets

1,164,847

1,006,292

Marketable equity securities at fair value

17,135

19,411

Deferred charges and other assets

212,990

213,483

Deferred income taxes - noncurrent

32,660

33,000

Property, plant, and equipment, at cost

1,586,049

1,491,749

Less accumulated depreciation

715,635

655,639

Net property, plant, and equipment

870,414

836,110

Total assets

$

2,298,046

2,108,296

Current liabilities:

Accounts payable

$

122,445

97,705

Accrued expenses

181,250

172,137

Dividends payable

49,524

46,137

Income and other taxes payable

55,433

66,893

Deferred income taxes - current

3,065

3,215

Total current liabilities

411,717

386,087

Deferred income taxes - noncurrent

74,565

70,589

Other noncurrent liabilities

136,770

129,044

Stockholders' equity:

Preferred stock (no par value)

Authorized - 20,000 shares

Issued -- None

Common stock (no par value)

Authorized - 400,000 shares

Issued -

191,205 shares at 6/30/03

190,898 shares at 12/31/02

12,740

12,719

Class B common stock (convertible)

Authorized - 80,000 shares

Issued and outstanding -

41,236   shares at 6/30/03

41,543   shares at 12/31/02

2,756

2,777

Additional paid-in capital

7,351

4,209

Retained earnings

2,027,696

1,902,990

Common stock in treasury, at cost -

(6/30/03 - 7,190 shares; 12/31/02 -- 7,385 shares)

(296,561)

(297,156)

Accumulated other comprehensive income:

Foreign currency translation adjustment

(86,938)

(112,303)

Loss on derivative contracts

(1,431)

(853)

Unrealized holding gains on marketable

equity securities

9,381

10,193

Total accumulated other comprehensive income

(78,988)

(102,963)

Total stockholders' equity

1,674,994

1,522,576

Total liabilities & stockholders' equity

$

2,298,046

2,108,296

All amounts in thousands.

Notes to financial statements beginning on page 5 are an integral part of these statements.

4

Table_Of_Contents

FORM 10-Q
PART I -- FINANCIAL INFORMATION -- ITEM 1 (Cont'd)
WM. WRIGLEY JR. COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONDENSED)
(Unaudited)

1.

The Consolidated Statement of Earnings (Condensed) for the three month and six month periods ended June 30, 2003 and 2002, respectively, the Consolidated Statement of Cash Flows (Condensed) for the six month periods ended June 30, 2003 and 2002, and the Consolidated Balance Sheet (Condensed) at June 30, 2003, are unaudited. In the Company's opinion, the accompanying financial statements reflect all normal and recurring adjustments necessary to present fairly the results for the periods and have been prepared on a basis consistent with the 2002 audited consolidated financial statements. These condensed financial statements should be read in conjunction with the 2002 consolidated financial statements and related notes which are an integral part thereof. Certain amounts recorded in 2002 have been reclassified to conform to the 2003 presentation.

2.

Conformity with generally accepted accounting principles requires management to make estimates and assumptions when preparing financial statements that affect assets, liabilities, revenues and expenses. Actual results may vary from those estimates.

3.

As of December 31, 2002, the Company adopted the disclosure requirements of Statement of Financial Accounting Standards (SFAS) No. 148, "Accounting for Stock-Based Compensation - Transition and Disclosure," which amends SFAS No. 123, "Accounting for Stock-Based Compensation." Under SFAS No. 148, the Company is required to disclose in the interim financial statements the method of accounting for stock-based employee compensation and the effect of the method used on reported results. In 2003, the Company continues to apply Accounting Principles Board Opinion (APB) No. 25 and related interpretations in accounting for stock-based compensation plans. APB No. 25 requires the use of the intrinsic value method, which measures compensation cost as the excess of the quoted market price of the stock at the date of grant over that amount an employee must pay to acquire the stock. As the exercise price equaled the fair market value on the date of grant, no compensation expense has been rec ognized for the Wrigley Stock Option program. The following table illustrates the effect on net earnings and earnings per share if the Company had applied the fair value recognition provisions of SFAS No. 123 to stock compensation plans.

Second Quarter
Three Months Ended

Second Quarter
Six Months Ended

6/30/2003

6/30/2002

6/30/2003

6/30/2002

Net earnings as reported

$

125,930

109,967

222,949

195,299

Add:

Stock-based compensation expense
included in net earnings, net of tax

$

1,917

1,577

4,189

2,712

Deduct:

Total stock-based compensation expense
under fair value method all awards,
net of tax

 

$

 

(5,515)



(4,264)



(11,070)

 

(7,587)

Pro forma net earnings

$

122,332

107,280

216,068

190,424

Basic and diluted earnings per share
          As reported
          Pro forma


$

$


0.56
0.54


0.49
0.48


0.99
0.96


0.87
0.85

All amounts in thousands except per share values.

5

Table_Of_Contents

FORM 10-Q
PART I -- FINANCIAL INFORMATION -- ITEM 1 (Cont'd)
WM. WRIGLEY JR. COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONDENSED)
(Unaudited)

4.

An analysis of the cumulative foreign currency translation adjustment follows (in thousands of dollars).

Increase to
Stockholders' Equity

Second Quarter

2003

2002

Balance at April 1

$

112,903

158,362

Translation adjustment for
   the second quarter


(25,965)


(32,567)

Balance at June 30

$

86,938

125,795

Increase to
Stockholders' Equity

Six Months

2003

2002

Balance at January 1

$

112,303

149,310

Translation adjustment for
   the first six months


(25,365)


(23,515)

Balance at June 30

$

86,938

125,795

5.

An analysis of comprehensive income is provided below (in thousands of dollars).

         


 

Three Months Ended
June 30,

 

Six Months Ended
June 30,

   

2003

 

2002

 

2003

 

2002

                 

Net earnings

$

125,930

 

109,967

 

222,949

 

195,299

Changes in other comprehensive income,
   before tax:

               

   Foreign currency
      translation adjustments

 


23,371

 


29,905

 


22,707

 


20,355

   Unrealized holding gains (losses)
      on securities

 


1,760

 


(3,998)

 


(1,247)

 


(5,151)

   Gain (loss) on derivative contracts

 

(2,560)

 

111

 

(775)

 

(989)

Changes in other comprehensive income,
   before tax

 


22,571

 


26,018

 


20,685

 


14,215

Changes in income tax benefit related to items
   of other comprehensive income

 


2,802

 


4,027

 


3,290

 


5,274

Changes in other comprehensive income,
   net of tax

 


25,373

 


30,045

 


23,975

 


19,489

                 

Total comprehensive income

$

151,303

140,012

246,924

214,788

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Table_Of_Contents

FORM 10-Q
PART I -- FINANCIAL INFORMATION -- ITEM 1 (Cont'd)
WM. WRIGLEY JR. COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONDENSED)
(Unaudited)

6.

Segment Information

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):

Net Sales

Three Months Ended
June 30,

Six Months Ended
June 30,

2003

2002

2003

2002

Americas, principally U.S.

$

310,987

301,861

572,307

546,673

EMEAI, principally Europe

377,480

296,037

672,086

536,900

Asia

76,934

84,368

166,722

173,189

Pacific

23,219

21,940

45,811

41,319

All Other

3,994

4,261

8,081

9,412

Net Sales

$

792,614

708,467

1,465,007

1,307,493

"All Other" net sales consists primarily of sales of gum base to customers and sales for Wrigley Healthcare.

Operating Income

Three Months Ended
June 30,

Six Months Ended
June 30,

2003

2002

2003

2002

Americas, principally U.S.

$

78,485

82,680

140,928

137,983

EMEAI, principally Europe

112,036

89,167

184,873

157,171

Asia

19,106

22,135

49,719

47,680

Pacific

7,051

3,844

13,985

9,448

All Other

(35,658)

(34,194)

(67,121)

(65,219)

Operating Income

$

181,020

163,632

322,384

287,063

"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.

7

Table_Of_Contents

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
June 30,

 

Six Months Ended
June 30,

 

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%


"Other" expenses reported in merchandising and promotion include brand research spending and royalty fees paid to third parties.

8

Table_Of_Contents


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.

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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.


Forward-Looking Statements

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

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FORM 10-Q


PART II - OTHER INFORMATION

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.

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Table_Of_Contents

FORM 10-Q


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934,

the registrant has duly caused this report to be signed on its behalf

by the undersigned thereunto duly authorized.

WM. WRIGLEY JR. COMPANY

(Registrant)

By

/s/ Reuben Gamoran               

Reuben Gamoran
Vice President and Controller
Authorized Signatory and Chief Accounting Officer

Date   August 14, 2003

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Table_Of_Contents

WM. WRIGLEY JR. COMPANY
AND WHOLLY OWNED ASSOCIATED COMPANIES
INDEX TO EXHIBITS

Exhibit
Number


Description of Exhibit

3.

Articles of Incorporation and By-laws.

(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.

(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.

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.

10.

Material Contracts

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.

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.

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.

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.

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.

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.

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.

31.

Rule 13a-14(a)/15a-14(a) Certifications

31 (a).

Certification of Mr. William Wrigley, Jr., President and Chief Executive Officer

31 (b).

Certification of Mr. Ronald V. Waters, Senior Vice President and Chief Financial Officer

32.

Section 1350 Certifications

32(a).

Certification of Mr. William Wrigley, Jr., President and Chief Executive Officer

32(b)

Certification of Mr. Ronald V. Waters, Senior Vice President and Chief Financial Officer

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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31. Rule 13a-14(a) or 15A-14(A) Certifications

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:

 

1.

I have reviewed this quarterly report on Form 10-Q of the Wm. Wrigley Jr. Company;

   

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;

   

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;

   

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:

   
 

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;

   
 

b)

evaluated the effectiveness of the registrant's disclosure controls and procedures as of June 30, 2003 (the "Evaluation Date"); and

   
 

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.

   

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):

   
 

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

   
 

b)

fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control; and

   

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.

     

Date:  August 14, 2003

   

/s/  William Wrigley, Jr.                         

   

William Wrigley, Jr.
President and Chief Executive Officer

   

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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)

I, Ronald V. Waters, certify that:

 

1.

I have reviewed this quarterly report on Form 10-Q of the Wm. Wrigley Jr. Company;

   

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;

   

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;

   

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:

   
 

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;

   
 

b)

evaluated the effectiveness of the registrant's disclosure controls and procedures as of June 30, 2003 (the "Evaluation Date"); and

   
 

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.

   

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):

   
 

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

   
 

b)

fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control; and

   

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.

     

Date:  August 14, 2003

     
   

/s/  Ronald V. Waters                                

   

Ronald V. Waters
Senior Vice President and Chief Financial Officer

15


(32)  SECTION 1350 CERTIFICATIONS

   

(32)(a)   Certification of Mr. William Wrigley, Jr., pursuant to Section 1350 of Chapter 63 of Title 8 of the United
                    States Code

   

I, William Wrigley, Jr., the Chief Executive Officer of Wm. Wrigley Jr. Company (the "Company"), certify that to the best of my knowledge:

 

(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

   

(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.

   
   

/s/  William Wrigley, Jr.                         

   

William Wrigley, Jr.
President and Chief Executive Officer

Dated the 14th day of August, 2003

 
   

16


(32)  SECTION 1350 CERTIFICATIONS

   

(32)(b)   Certification of Mr. Ronald V. Waters, pursuant to Section 1350 of Chapter 63 of Title 8 of the United
                    States Code

   

I, Ronald V. Waters, the Chief Financial Officer of Wm. Wrigley Jr. Company (the "Company"), certify that to the best of my knowledge:

 

(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

   

(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.

   
   

/s/  Ronald V. Waters                               

   

Ronald V. Waters
Senior Vice President and Chief Financial Officer

     

Dated the 14th day of August, 2003

 

17