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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
[ X ] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 1998 Commission file
number 1-800
WM. WRIGLEY JR. COMPANY
(Exact name of registrant as specified in its charter)
Delaware 36-1988190
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
410 North Michigan Avenue
Chicago, Illinois 60611
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code:
(312) 644-2121
Securities registered pursuant to Section 12(b) of the Act:
Name of each exchange on
Title of each class which registered
Common Stock, no par value New York Stock Exchange
Chicago Stock Exchange
Securities registered pursuant to Section 12(g) of the Act:
Title of each class
Class B Common Stock, no par value
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 such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes X. No .
Indicate by check mark if disclosure of delinquent filers
pursuant to Item 405 of Regulation S-K (Section 229.405 of this
chapter) is not contained herein, and will not be contained, to
the best of registrant's knowledge, in definitive proxy or
information statements incorporated by reference in Part III of
this Form 10-K or any amendment to this Form 10-K. [X]
As of January 31, 1999, there were outstanding 92,920,488
shares of Common Stock, no par value, and the aggregate market
value of the Common Stock (based upon the closing price of the
stock on the New York Stock Exchange on January 29, 1999) held by
non-affiliates was approximately $6,247,650,552. As of January
31, 1999 there were outstanding 23,188,988 shares of Class B
Common Stock, no par value. Class B Common Stock is not traded
on the exchanges, is restricted as to transfer or other
disposition, and is convertible into Common Stock on a
share-for-share basis. Upon such conversion, the resulting
shares of Common Stock are freely transferable and publicly
traded. Assuming all shares of outstanding Class B Common Stock
were converted into Common Stock, the aggregate market value of
Common Stock held by non-affiliates on January 31, 1999 (based
upon the closing price of the stock on the New York Stock
Exchange on such date) would have been approximately
$6,932,325,683. Determination of stock ownership by
non-affiliates was made solely for the purpose of this
requirement, and the Registrant is not bound by these
determinations for any other purpose.
DOCUMENTS INCORPORATED BY REFERENCE
Portions of the Registrant's Definitive Proxy Statement,
dated February 4, 1999 for the March 4, 1999 Annual Meeting of
Stockholders, and of the 1998 Annual Report to Stockholders, are
incorporated by reference into portions of Parts I, II, III and
IV of this Report.
PART I
Item 1. Business
(a) General Development of Business.
(1) General information. From 1891 to 1903, the Company
was operated as a partnership until its incorporation in Illinois
as Wm. Wrigley, Jr. & Co. in December 1903. In November 1910,
the Company was reincorporated under West Virginia law as Wm.
Wrigley Jr. Company, and in October 1927, was reincorporated
under the same name under Delaware law.
Throughout its history, the Company has concentrated on one
principal line of business: the manufacturing and marketing of
quality chewing gum products.
(2) Not applicable.
(b) Financial Information About Industry Segments.
The Company's principal business of manufacturing and
selling chewing gum constitutes more than 90% of its consolidated
worldwide sales and revenues. All other businesses constitute
less than 10% of its consolidated revenues, operating profit and
identifiable assets. Financial information on segments, as
defined under generally accepted accounting principles, is set
forth on pages 18 and 19 of the Company's Annual Report to
Stockholder's for the fiscal year ended 1998, under the caption
"Segment Information" which information is incorporated herein by
reference.
(c) Narrative Description of Business.
(1) Business conducted. The following is a description of
the business conducted and intended to be conducted by the
Company and its wholly-owned associated companies (the Company):
(i) Principal products, markets and methods of
distribution. The Company's principal business is the
manufacture and sale of chewing gum, both in the United
States and abroad.
The Company's brands manufactured and available in the
United States are: WRIGLEY'S SPEARMINT, DOUBLEMINT, JUICY
FRUIT, BIG RED and WINTERFRESH which account for a majority
of the Company's sales volume; FREEDENT, a specially
formulated chewing gum which does not stick to most types of
dental work, available in three flavors; and EXTRA sugarfree
chewing gum, available in four flavors and as bubble gum.
Except for BIG RED and WINTERFRESH, which have limited
availability overseas, the above Wrigley brands are also
commonly available in many international markets. Additional
brands manufactured and marketed abroad are: ORBIT, EXTRA
and FREEDENT sugarfree gums in both pellet and stick form in
various flavors, ARROWMINT, COOL CRUNCH, DULCE 16, EXCEL,
JUICY FRUIT and P.K chewing gums in sugar coated pellet
form, sugarfree WRIGLEY'S SPEARMINT, DOUBLEMINT, JUICY
FRUIT, AIRWAVES in sugarfree pellet form, ICEWHITE sugarfree
stick gum and bubble gums HUBBA BUBBA in various flavors,
BIG BOY and BIG G.
The Company's ten largest markets, by shipments,
outside of the United States in 1998 were, in alphabetical
order, Australia, Canada, China, France, Germany,
Philippines, Poland, Russia, Taiwan and the United Kingdom.
Chewing gum is manufactured in three factories in the
United States and eleven factories in other countries with a
twelfth becoming operational in the first quarter of 1999.
Three domestic wholly owned associated companies also
manufacture products other than chewing gum. Amurol
Confections Company, in addition to manufacturing and
marketing children's bubble gum items including BUBBLE TAPE,
BIG LEAGUE CHEW and other uniquely packaged confections, and
two new adult chewing gum items, STAY ALERT caffeine gum and
EVEREST peppermint pellet gum, also has various non-gum
items, such as a line of suckers, dextrose candy, liquid gel
candy and hard roll candies as an important part of its
total business. Amurol is also developing export markets,
currently the largest being Canada, Brazil and Japan. The
principal business of the L.A. Dreyfus Company is the
production of chewing gum base, at one domestic and one
overseas factory, for the parent and wholly owned associated
companies, and for other manufacturers of chewing gum and
specialty gum products in the United States and abroad.
Northwestern Flavors, Inc. processes flavorings and
rectifies mint oil for the parent and associated companies.
In 1979, the Company organized its domestic converting
operations under the name of Wrico Packaging Division as a
separate operating unit of the Company. This division was
created to help further the Company's capability to produce
improved packaging materials. Currently, Wrico produces
about 47% of the Company's domestic printed and other
wrapping supplies.
The Company markets chewing gum primarily through
wholesalers, corporate chains and cooperative buying groups
that distribute the product through retail outlets.
Additional direct customers are vending distributors,
concessionaires and other established customers purchasing
in wholesale quantities. Customer orders are usually
received by mail, electronically, telephone or telefax and
are generally shipped by truck from factory warehouses or
leased warehousing facilities. Consumer purchases at the
retail level are generated primarily through the Company's
advertisements on television and radio, and in newspapers
and magazines.
(ii) New products. In Europe, EXTRA for Kids, ORBIT
for Kids, AIRWAVES and ICEWHITE were added to the product
line. Additional or improved flavors were also introduced
for some product lines in various markets.
(iii) Sources and availability of raw materials. Raw
materials blended to make chewing gum base are available
from private contractors and in the open market.
Sugar, corn syrup, flavoring oils, polyols and
aspartame are obtained in the open market, or under
contracts, from suppliers in various countries. All other
ingredients and necessary packaging materials are also
purchased and available on the open market.
(iv) Patents and trademarks. The Company holds
numerous patents relating to packaging, manufacturing
processes and product formulas. Approximately two dozen
patents relating to product formula and sweetener
encapsulation, primarily for sugarfree gum and continuous
chewing gum manufacturing, are deemed of material importance
to the Company. Most of these patents expire in the
countries in which they are registered at various times
through the year 2017.
Trademarks are of material importance to the Company
and are registered and maintained for all brands of the
Company's chewing gum on a worldwide basis.
(v) Seasonality. On a consolidated basis, sales
normally are relatively consistent throughout the year,
although the combined second and third quarters generally
contribute more than half of the Company's sales.
(vi) Working capital items. Inventory requirements of
the Company are not materially affected by seasonal or other
factors. In general, the Company does not offer its
customers extended payment terms. The Company believes
these conditions are not materially different from those of
its competitors.
(vii) Customers. The Company's products are
distributed through more than 4,000 customers throughout the
United States alone. No single domestic or foreign customer
accounts for as much as 10% of consolidated sales or
revenues.
(viii) Orders. It is the general custom of the
wholesale trade to purchase chewing gum requirements at
intervals of approximately ten days to two weeks to assure
fresh stocks and good turnover. Therefore, an order backlog
is of no significance to the chewing gum business.
(ix) Government business. The Company has no material
portion of its business which may be subject to
renegotiation of profits or termination of contracts at the
election of the Government.
(x) Competitive conditions. The chewing gum market is
an intensely competitive one in the United States and in
most international markets. Though detailed figures are not
available, there are approximately 14 chewing gum
manufacturers in the United States. Outside sources
estimate that Wrigley brands account for approximately 50%
of the total chewing gum product unit sales in the United
States. The Company's principal competitors in the United
States are the Warner-Lambert Company and RJR Nabisco.
Wrigley brands are sold in over 140 countries and
territories, although in some cases these markets are
relatively small. In most international markets, there are
two or three major competitors and generally a half dozen or
more other companies competing for a share of the gum market
in each instance.
In all markets in which the Company distributes its
products, principal methods of competition are a combination
of competitive profit margins to the trade, superior
quality, brand recognition, product benefit and a fair
consumer price.
(xi) Research and development. The Company has for
many years maintained an active in-house research and
development program, and has also contracted outside
services for developing and improving Wrigley products,
machinery and operations. In relation to the Company's
consolidated assets, revenues and aggregate operating
expenses, amounts expended in these areas during the last
three fiscal years have not been material.
(xii) Compliance with environmental laws. Compliance
with federal, state and local laws regulating the discharge
of materials into the environment, or otherwise relating to
the protection of the environment, has no material effect on
capital expenditures, earnings or the competitive position
of the Company.
(xiii) Employees. As of December 31, 1998, the Company
employed approximately 9,200 persons worldwide.
(d) Financial Information About Foreign and Domestic
Operations and Export Sales.
Information concerning the Company's operations in
different geographic areas for the years ended December 31,
1998, 1997 and 1996 is hereby incorporated by reference from
the 1998 Annual Report to Stockholders, on page 18, under
the caption "Segment Information," and on page 22 under the
caption "Results of Operations."
Item 2. Properties
The information below relates to the principal properties of
the Company which are primarily devoted to chewing gum production
or raw materials processing. The Company considers the
properties listed below to be in good condition, well maintained
and suitable to carry out the Company's business. All of the
chewing gum factories listed below operated at least one full
shift throughout the year, all but two operated a substantial
second shift and eight operated a third shift for much of the
year. All properties are owned by the Company unless otherwise
indicated. The figures given in the table are approximate.
Floor Area
Property and Location (Square Feet)
CHEWING GUM FACTORIES
Chicago, Illinois..................................... 1,279,000
Gainesville, Georgia.................................. 460,300
Yorkville, Illinois................................... 225,000(a)
Asquith, N.S.W., Australia............................ 116,700
Salzburg, Austria..................................... 22,800
Don Mills, Ont., Canada............................... 135,200
Plymouth, England..................................... 282,000
Biesheim, France...................................... 417,100
Bangalore, India...................................... 40,100
Nairobi, Kenya........................................ 79,600
Guangzhou, China, P.R.C............................... 199,400(b)
Antipolo, Philippines................................. 105,700
Poznan, Poland........................................ 103,200
Taipei, Taiwan, R.O.C................................. 70,500
St. Petersburg, Russia................................ 111,000(c)
RAW MATERIALS PROCESSING FACTORIES
West Chicago, Illinois................................ 40,300
Edison, New Jersey.................................... 536,000
Biesheim, France...................................... 72,000
OFFICE BUILDING
Wrigley Building, Chicago, Illinois................... 453,400(d)
(a) Does not include a 170,000 square foot leased warehouse
facility located in West Naperville, Illinois.
(b) In China, the Company has a 50 year lease with the
Guangzhou Economic Technological Development Zone for the land
upon which the factory is located.
(c) Scheduled for completion and beginning operations in
first quarter 1999.
(d) This building is the Company's principal
non-manufacturing property and houses the offices of the
Company's corporate headquarters. In 1998, the Company's offices
occupied approximately 159,000 of the 453,400 square feet of
rentable space in the building.
In the case of each factory listed above, there are also
included some offices and warehouse facilities. Also, the
Company maintains primarily leased branch sales offices and
warehouse facilities in the United States and abroad.
Item 3. Legal Proceedings
None.
Item 4. Submission of Matters to a Vote of Security Holders
None.
Executive Officers of the Registrant
All officers are elected for a term which ordinarily expires
on the date of the meeting of the Board of Directors following
the Annual Meeting of Stockholders. The positions and ages
listed below are as of January 31, 1999. There were no
arrangements or understandings between any of the officers and
any other person(s) pursuant to which such officers were elected.
Effective
Name and Age Position(s) with Registrant Date(s)
William Wrigley, 66 President and Chief Executive Officer since 1961
Douglas S. Barrie, 65 President-International since 1999
Group Vice President 1996-1999
Group Vice President-International 1984-1995
Ronald O. Cox, 60 Group Vice President since 1996
Group Vice President-Marketing 1985-1995
John F. Bard, 57 Executive Vice President since 1999
Senior Vice President 1991-1999
Martin J. Geraghty, 62 Senior Vice President-Manufacturing since 1989
William Wrigley, Jr., 35 Vice President since 1991
Assistant to the President 1985-1992
Donald E. Balster, 54 Vice President-Production since 1994
Senior Director-U.S. Production 1991-1994
Gary R. Bebee, 52 Vice President-Customer Marketing since 1993
Assistant Vice President-Marketing 1989-1993
David E. Boxell, 57 Vice President-Personnel since 1992
Susan S. Fox, 40 Vice President-Consumer Marketing since 1993
Assistant Vice President-Marketing 1989-1993
Shaun Kim, 55 Vice President-Engineering since 1994
Senior Director-Engineering 1988-1994
Dennis R. Mally, 56 (a) Vice President-Information Services since 1995
Director-Information Services 1993-1994
Dushan Petrovich, 45 Vice President-Controller since 1996
Vice President-Treasurer 1993-1995
Treasurer 1992
Wm. M. Piet, 55 Vice President-Corporate Affairs since 1988
Corporate Secretary 1984-1998
Assistant to the President since 1995
John A. Schafer, 57 Vice President-Purchasing since 1991
Philip G. Schnell, 54 Vice President-Research & Development since 1994
Senior Director-Research &
Development 1988-1994
Christafor E. Sundstrom, 50 Vice President-Corporate Development since 1988
Philip G. Hamilton, 58 Vice President-International since 1993
Managing Director, The Wrigley
Company Limited, England since 1986
Jon Orving, 49 Vice President-International since 1993
Managing Director, Wrigley
Scandinavia AB, Sweden since 1983
Stefan Pfander, 55 Managing-Director-Europe since 1996
Vice President-International since 1992
Co-Managing Director of Wrigley
GmbH, Munich, Germany since 1981
Philip C. Johnson, 53 Senior Director, Benefits &
Compensation since 1995
Assistant Vice President-Personnel 1991-1995
Howard Malovany, 48 (b) Secretary and General Counsel since 1998
Alan J. Schneider, 53 (c) Treasurer since 1996
(a) Mr. Mally joined the Company in 1993 assuming
responsibility for the Company's worldwide information systems.
Before joining the Company, from 1989 to 1991 Mr. Mally was Vice
President Business Operations with The Cross Company in Fraser,
Michigan, a manufacturer of metal cutting and assembly machines.
Following the 1991 acquisition of The Cross Company by Giddings &
Lewis, Mr. Mally served as Vice President Systems and Quality of
its Integrated Automation Division in Fraser, Michigan.
(b) Mr. Malovany joined the Company in 1996 assuming
responsibility for the corporate legal function. Before joining
the Company, from 1993-1996 Mr. Malovany was Secretary and Senior
Counsel of Outboard Marine Corporation a manufacturer and
distributor of recreational marine products.
(c) Mr. Schneider joined the Company in August 1996 as
Treasurer with responsibility for treasury, tax and credit
functions. He previously served CBI Industries, Inc. of Oak
Brook, Illinois, an international manufacturer of industrial
gases and metal plate surfaces, as Vice President-Finance and
Chief Financial Officer, having joined that company in 1987 and
serving in various financial capacities over the years, including
Controller and Vice President.
At the meeting of the Board of Directors immediately
following the annual stockholders meeting of March 4, 1999, all
officers set forth in the schedule above were re-elected for a
one-year term to their positions in the Company.
PART II
Item 5. Market for Registrant's Common Stock, Dividend and
Stockholder Information
At December 31, 1998, the Company had two classes of stock
outstanding: Common Stock, listed on both the New York and
Chicago Stock Exchanges, and Class B Common Stock, for which
there is no trading market. Shares of the Class B Common Stock
were issued by the Company on April 11, 1986 to stockholders of
record on April 4, 1986. Class B Common Stock is entitled to ten
votes per share, is subject to restrictions on transfer or other
disposition and is at all times convertible, on a share-for-share
basis, into shares of Common Stock.
As of January 31, 1999, there were 36,697 stockholders of
record holding Common Stock and 3,831 stockholders of record
holding Class B Common Stock. Regular quarterly dividends and
any extra cash dividends as may be deemed appropriate, which are
identical on both Common Stock and Class B Common Stock, are
declared at scheduled meetings of the Board of Directors and
announced immediately upon declaration. Information regarding
the high and low quarterly sales prices for the Common Stock on
the New York Stock Exchange, and dividends declared per share on
a quarterly basis for both classes of stock, for the two-year
period ended December 31, 1998, is set forth in the Company's
1998 Annual Report to Stockholders, on page 25, under the
captions "Market Prices" and "Dividends" and is incorporated
herein by reference.
Item 6. Selected Financial Data
An eleven-year summary of selected financial data for the
Company is set forth in the Company's 1998 Annual Report to
Stockholders under the following captions and page numbers:
"Operating Data" and "Other Financial Data", on pages 26 and 27,
and is incorporated herein by reference.
Item 7. Management's Discussion and Analysis of Financial
Condition and Results of Operations
Management's discussion and analysis of results of
operations and financial condition, including a discussion of
liquidity and capital resources, is set forth in the Company's
1998 Annual Report to Stockholders on pages 22 through 24 and is
incorporated herein by reference.
Item 7A. Quantitative and Qualitative Disclosures About
Market Risk
Disclosure about market risk is set forth on page 24 of the
Company's 1998 Annual Report to Stockholders under the heading
"Market Risk" and is incorporated hereby by reference.
Item 8. Financial Statements and Supplementary Data
The Company's audited consolidated financial statements,
accounting policies and notes to consolidated financial
statements, with the report of independent auditors, at December
31, 1998 and 1997 and for each of the three years in the period
ended December 31, 1998 are set forth in the Company's 1998
Annual Report to Stockholders on pages 7 through 21 and selected
quarterly data-consolidated results, for the years ended December
31, 1998 and 1997 are set forth in the Company's 1998 Annual
Report to Stockholders on page 25, and all such pages are
incorporated herein by reference.
Item 9. Changes in and Disagreements with Accountants on
Accounting and Financial Disclosure
None.
PART III
Item 10. Directors and Executive Officers of the Registrant
Information regarding directors and nominees for
directorship is set forth in the Company's definitive Proxy
Statement, dated February 4, 1999, for the Annual Meeting of
Stockholders on March 4, 1999, on pages 2 through 4, under the
caption "Election of Directors" and is incorporated herein by
reference. For information concerning the Company's executive
officers, see "Executive Officers of the Registrant" set forth in
Part I hereof.
Item 11. Executive Compensation
Information regarding the compensation of directors and
executive officers is set forth in the Company's definitive Proxy
Statement, dated February 4, 1999, for the Annual Meeting of
Stockholders on March 4, 1999, on pages 7 and 8, and 10 through
16 under the general captions "Compensation of Directors" and
"Executive Compensation", respectively, and is incorporated
herein by reference.
Item 12. Security Ownership of Certain Beneficial Owners and
Management
Information regarding security ownership of certain
beneficial owners, of all directors and nominees, of the named
executive officers, and of directors and executive officers as a
group, is set forth in the Company's definitive Proxy Statement,
dated February 4, 1999, for the Annual Meeting of Stockholders on
March 4, 1999, on pages 5 through 7 under the captions "Security
Ownership of Directors and Executive Officers" and "Security
Ownership of Certain Beneficial Owners" and is incorporated
herein by reference.
Item 13. Certain Relationships and Related Transactions
Information regarding certain relationships and related
transactions is hereby incorporated by reference from the
Company's definitive Proxy Statement, dated February 4, 1999, for
the Annual Meeting of Stockholders on March 4, 1999 under the
following captions and page numbers: "Election of Directors", on
page 2, regarding Mr. William Wrigley and Mr. William Wrigley,
Jr. and "Security Ownership of Certain Beneficial Owners", on
page 6, regarding the Offield family and Mr. Wrigley.
PART IV
Item 14. Exhibits, Financial Statement Schedule, and Reports on
Form 8-K
(a) 1,2. Financial Statements and Financial Statement
Schedule
The data listed in the accompanying Index to Financial
Statements and Financial Statement Schedule, on page F-1 hereof,
is filed as part of this Report.
3. Exhibits
The exhibits listed in the accompanying Index to Exhibits,
on page F-3 hereof, are filed as part of this Report or are
incorporated by reference herein as indicated thereon.
(b) Not Applicable.
(c) Exhibits are attached hereto.
(d) See (a) 1, 2 above.
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the
Securities Exchange Act of 1934, as amended, the Registrant has
duly caused this Form 10-K Report to be signed on its behalf by
the undersigned, thereunto duly authorized.
Date: March 25, 1999 WM. WRIGLEY JR. COMPANY
(Registrant)
By: /s/ JOHN F. BARD
John F. Bard
Executive Vice President and Director
(Principal Financial Officer)
Pursuant to the requirements of the Securities Exchange Act
of 1934, as amended, this Report on Form 10-K has been signed
below by the following persons on behalf of the Registrant and in
the capacities and on the dates indicated.
Signature Title
* President, Chief
William Wrigley, Jr. Executive Officer,
Director
/s/ JOHN F. BARD Executive Vice President and Director
John F. Bard (Principal Financial Officer)
/s/ DUSHAN PETROVICH Vice President-Controller
Dushan Petrovich (Principal Accounting Officer)
* Director
Thomas A. Knowlton
* Director
Penny Pritzker
* Director
Melinda R. Rich
* Director *By/s/ HOWARD MALOVANY
Steven B. Sample Howard Malovany
Attorney-in-Fact
* Director
Alex Shumate Date: March 25, 1999
* Director
Richard K. Smucker
Exhibit 23.
CONSENT OF INDEPENDENT AUDITORS
We consent to the incorporation by reference in this Annual
Report on Form 10-K of Wm. Wrigley Jr. Company of our report
dated January 27, 1999, included in the 1998 Annual Report to
Stockholders of Wm. Wrigley Jr. Company.
Our audits also included the financial statement schedule of Wm.
Wrigley Jr. Company listed in Item 14(a). This schedule is the
responsibility of the Company's management. Our responsibility
is to express an opinion based on our audits. In our opinion,
the financial statement schedule referred to above, when
considered in relation to the basic financial statements taken as
a whole, presents fairly in all material respects the information
set forth therein.
We also consent to the incorporation by reference in the
Registration Statements pertaining to the Special Investment and
Savings Plan for Wrigley Employees (33-15061 (1987) and 33-43738
(1991)), the Wm. Wrigley Jr. Company Management Incentive Plan
(33-22788 (1988)) and the 1997 Management Incentive Plan, (333-
48715 (1998)) respectively, of our report dated January 27, 1999,
with respect to the consolidated financial statements and
consolidated financial statement schedule of Wm. Wrigley Jr.
Company included or incorporated by reference in this Annual
Report on Form 10-K for the year ended December 31, 1998.
/s/ ERNST & YOUNG LLP
Ernst & Young LLP
Chicago, Illinois
March 24, 1999
WM. WRIGLEY JR. COMPANY
INDEX TO FINANCIAL STATEMENTS
AND FINANCIAL STATEMENT SCHEDULES
(Item 14(a))
Reference
Form Annual Report
10-K to
Report Stockholders
Data incorporated by reference from the 1998 Annual Report
to Stockholders of Wm. Wrigley Jr. Company:
Consolidated balance sheet at December 31, 1998 and 1997........ 8-9
For the years ended December 31, 1998, 1997 and 1996:
Consolidated statement of earnings.......................... 7
Consolidated statement of cash flows........................ 10
Consolidated statement of stockholders' equity
including comprehensive income.............................. 11
Accounting policies and notes to consolidated financial
statements.................................................. 12-19
Consolidated financial statement schedule for the years ended
December 31, 1998, 1997 and 1996:
Valuation and qualifying accounts.................................. F-2
All other schedules are omitted since the required
information is not present or is not present in amounts
sufficient to require submission of the schedule, or because the
information required is included in the consolidated financial
statements or accounting policies and notes thereto.
With the exception of the pages listed in the above index
and the Items referred to in Items, 1,5,6,7, and 8 of this Form
10-K Report, the 1998 Annual Report to Stockholders
is not to be deemed filed as part of this report.
WM. WRIGLEY JR. COMPANY
Schedule II - Valuation and Qualifying Accounts
Years ended December 31, 1998, 1997 and 1996
(In Thousands)
Column A Column B Column C Column D Column E
Additions
Balance at Charged to Charged to
Beginning Costs and Other Accounts Deductions- Balance at
Description of Period Expenses Describe Describe(A) End of Period
1998:
Allowance for
doubtful accounts... $7,524 1,456 1,416 7,564
1997:
Allowance for
doubtful accounts... $8,538 1,434 2,448 7,524
1996:
Allowance for
doubtful accounts... $9,060 2,080 2,602 8,538
(A) Uncollectable accounts written-off, net of recoveries.
WM. WRIGLEY JR. COMPANY
AND WHOLLY OWNED ASSOCIATED COMPANIES
INDEX TO EXHIBITS
(Item 14(a))
Exhibit
Number Description of Exhibit
Proxy Statement of the Registrant, dated February 4,
1999, for the March 4, 1999 Annual Meeting of
Stockholders, is hereby incorporated by reference.
3. Articles of Incorporation and By-laws.
3(a). Restated Certificate of Incorporation of the
Registrant. Incorporated by reference to Exhibit 3(a)
of the Company's Annual Report and Form 10-K filed for
the fiscal year ended December 31, 1992.
3(b). By-laws of the Registrant. Incorporated by reference
to Exhibit 3(a) of the Company's Form 10-K filed for
the fiscal year ended December 31, 1992.
10. Material Contracts
10(a). Non-Employee Directors' Death Benefit Plan.
Incorporated by reference to the Company's 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 Form 10-K filed for the
fiscal year ended December 31, 1995.
10(c). Supplemental Retirement Plan. Incorporated by
reference to the Company's Form 10-K filed for the
fiscal year ended December 31, 1994.
10(d). Deferred Compensation Plan for Non-Employee Directors.
Incorporated by reference to the Company's Form 10-K
filed for the fiscal year ended December 31, 1995.
10(e). Non-Employee Directors' Stock Retirement Plan.
Incorporated by reference to the Company's Form 10-K
filed for the fiscal year ended December 31, 1995.
10(f). Wm. Wrigley Jr. Company 1997 Management Incentive Plan.
Incorporated by reference to the Company's Quarterly
Report on Form 10-Q for the fiscal quarter ended
September 30, 1997.
13. 1998 Annual Report to Stockholders of the Registrant.
21. Subsidiaries of the Registrant.
23. Consent of Independent Auditors. (See page 12)
24. Power of Attorney.
99. Forward-Looking Statements.
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Copies of Exhibits are not attached hereto, but 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.