<PAGE>
As filed with the Securities and Exchange Commission on _____________ ___, 1998
Registration No. 333- ________________________
----------------------------------
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
----------------------
FORM 11-K
FOR ANNUAL REPORTS OF EMPLOYEE STOCK PURCHASE, SAVINGS AND SIMILAR
PLANS PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
(X) ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
For the plan year ended December 31, 1997
or
( ) TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934
For the transition period from __________ to __________
Commission File Number:
Full title of the plan and the address of the plan, if different from that of
the issuer named below:
Wesley Jessen Savings and Retirement Plan
Name of issuer of the securities held pursuant to the plan and the address of
its principal executive office:
Wesley Jessen VisionCare, Inc.
333 East Howard Avenue
Des Plaines, Illinois 60018-5903
_____________________
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, Wesley
Jessen Corporation as Plan Administrator with respect to the Wesley Jessen
Savings & Investment Plan, has duly caused this Annual Report to be signed on
its behalf by the undersigned hereunto duly authorized.
WESLEY JESSEN CORPORATION
Date: June 30, 1998. By: /s/Michael R. Southard
-----------------------------------
Michael R. Southard, Vice President,
Human Resources
<PAGE>
PBH EMPLOYEES' SAVINGS AND
INVESTMENT PLAN
(IN LIQUIDATION)
----------------
FINANCIAL STATEMENTS AND
ADDITIONAL INFORMATION
----------------------
DECEMBER 31, 1997 AND 1996
--------------------------
<PAGE>
WESLEY JESSEN SAVINGS AND
RETIREMENT PLAN (401K
AND PROFIT-SHARING COMPONENT)
----------------------------
INDEX TO FINANCIAL STATEMENTS AND ADDITIONAL INFORMATION
--------------------------------------------------------
Page
----
Report of independent accountants 1
Financial statements:
Statements of net assets available for plan benefits, with 2-3
fund information at December 31, 1997 and 1996
Statements of changes in net assets available for plan benefits, 4-5
with fund information for the years ended December 31, 1997
and 1996
Notes to financial statements 6-10
Additional information:
Line 27(a) - Schedule of assets held for investment purposes
at December 31, 1997 Schedule I
Line 27(d) - Schedule of reportable transactions for the
year ended December 31, 1997 Schedule II
All other schedules of additional financial information required by Section
2520.103-10 of the Department of Labor Rules and Regulations for Reporting and
Disclosure under ERISA have been omitted because they are not applicable.
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
---------------------------------
May 21, 1998
To the Participants and the Administrative Committee of
the Wesley Jessen Savings and Retirement Plan (401K and
Profit-Sharing Component)
In our opinion, the accompanying statements of net assets available for plan
benefits and the related statements of changes in net assets available for plan
benefits present fairly, in all material respects, the net assets available for
plan benefits of the Wesley Jessen Savings and Retirement Plan (401K and Profit-
Sharing Component) at December 31, 1997 and 1996, and the changes in net assets
available for plan benefits for the years then ended, in conformity with
generally accepted accounting principles. These financial statements are the
responsibility of the Plan's management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these statements in accordance with generally accepted auditing
standards which require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by the Plan's
management, and evaluating the overall financial statement presentation. We
believe that our audits provide a reasonable basis for the opinion expressed
above.
Our audits were performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The additional information included in
Schedules I and II is presented for the purpose of additional analysis and is
not a required part of the basic financial statements but is additional
information required by ERISA. The fund information in the statements of net
assets available for plan benefits and the statements of changes in net assets
available for plan benefits is presented for purposes of additional analysis
rather than to present the net assets available for plan benefits and changes in
net assets available for plan benefits of each fund. Schedules I and II and the
fund information have been subjected to the auditing procedures applied in the
audits of the basic financial statements and, in our opinion, are fairly stated
in all material respects in relation to the basic financial statements taken as
a whole.
/s/ Price Waterhouse LLP
Chicago, Illinois
<PAGE>
WESLEY JESSEN SAVINGS AND
RETIREMENT PLAN (401K
AND PROFIT-SHARING COMPONENT)
----------------------------
STATEMENT OF NET ASSETS
AVAILABLE FOR PLAN BENEFITS,
WITH FUND INFORMATION
AT DECEMBER 31, 1997
--------------------
<TABLE>
<CAPTION>
Fund Information
----------------------------------------------------------------------------------------------
Vanguard
SEI Trust F.I.S. S-T Vanguard Vanguard
Benham Vanguard Vanguard Vanguard Corporate Vanguard Treasury Int'l
Preservation Wellington Windsor Explorer Bond Index 500 Money Mkt Growth
Fund Fund Fund Fund Portfolio Portfolio Portfolio Portfolio
------------ ---------- ---------- ----------- --------- ---------- ---------- ----------
Assets
- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investments, at fair value:
Registered investment
company funds $ - $4,168,213 $7,349,268 $1,964,524 $395,039 $4,870,795 $4,318,082 $ 906,405
Wesley Jessen common
Stock - - - - - - - -
---------- ---------- ---------- ---------- -------- ---------- ---------- ----------
Total investments - 4,168,213 7,349,268 1,964,524 395,039 4,870,795 4,318,082 906,405
Cash 5,592,808 2,005,592 998,629 1,867,537 - 3,367,405 1,000,000 1,660,507
Receivables:
Participant contributions 10,557 10,472 10,115 6,698 961 11,385 4,583 4,251
Employer contributions 5,224 164,188 210,853 60,738 19,740 199,909 328,343 53,289
Loan repayments 4,993 8,315 9,262 5,588 781 8,698 8,376 2,753
---------- ---------- ---------- ---------- -------- ---------- ---------- ----------
Total receivables 20,774 182,975 230,230 73,024 21,482 219,992 341,302 60,293
Loans to participants - - - - - - - -
---------- ---------- ---------- ---------- -------- ---------- ---------- ----------
Total assets 5,613,582 6,356,780 8,578,127 3,905,085 416,521 8,458,192 5,659,384 2,627,205
Liabilities
- -----------
Refunds due to participants 103 13,859 20,182 9,096 1,021 20,725 8,498 7,264
---------- ---------- ---------- ---------- -------- ---------- ---------- ----------
Net assets available for
plan benefits $5,613,479 $6,342,921 $8,557,945 $3,895,989 $415,500 $8,437,467 $5,650,886 $2,619,941
========== ========== ========== ========== ======== ========== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
Fund Information
-----------------------------------------------------------
Vanguard Wesley
Vanguard Bond Jessen
PRIMECAP Index Stock Participant
Fund Fund Fund Loans Total
---------- ---------- ---------- ----------- -----------
Assets
- ------
<S> <C> <C> <C> <C> <C>
Investments, at fair value:
Registered investment
company funds $ - $ - $ - $ - $23,972,326
Wesley Jessen common
Stock - - 2,412,489 - 2,412,489
---------- ---------- ---------- ---------- -----------
Total investments - - 2,412,489 - 26,384,815
Cash 6,947,784 - 255,223 - 23,695,485
Receivables:
Participant contributions 11,125 - 1,312 - 71,459
Employer contributions 34,780 11,477 617,947 - 1,706,488
Loan repayments 5,262 - 686 (54,714) -
---------- ---------- ---------- ---------- -----------
Total receivables 51,167 11,477 619,945 (54,714) 1,777,947
Loans to participants - - - 3,906,776 3,906,776
---------- ---------- ---------- ---------- -----------
Total assets 6,998,951 11,477 3,287,657 3,852,062 55,765,023
Liabilities
- -----------
Refunds due to participants 6,695 121 5,717 - 93,281
---------- ---------- ---------- ---------- -----------
Net assets available for
plan benefits $6,992,256 $ 11,356 $3,281,940 $3,852,062 $55,671,742
========== ========== ========== ========== ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
2
<PAGE>
WESLEY JESSEN SAVINGS AND
RETIREMENT PLAN (401K
AND PROFIT-SHARING COMPONENT)
----------------------------
STATEMENT OF NET ASSETS
AVAILABLE FOR PLAN BENEFITS,
WITH FUND INFORMATION
AT DECEMBER 31, 1996
--------------------
<TABLE>
<CAPTION>
Fund Information
-------------------------------------------------------------------------------
VANGUARD
F.I.S.S-T VANGUARD
VANGUARD VANGUARD VANGUARD CORPORATE VANGUARD TREASURY VANGUARD
WELLINGTON WINDSOR EXPLORER BOND INDEX 500 MONEY MKT INT'L GROWTH
FUND FUND FUND PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
---------- ---------- ---------- --------- ---------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
Registered investment company funds $3,325,810 $5,901,852 $1,888,063 $ 272,798 $2,620,813 $4,748,025 $ 658,437
Receivables:
Participant contributions 12,688 16,090 7,681 2,057 10,237 6,314 4,292
Employer contributions 99,714 140,451 51,570 12,735 95,481 175,882 42,696
Loan repayments 8,920 12,087 5,940 1,146 6,308 17,286 2,592
---------- ---------- ---------- --------- ---------- ---------- -------------
Total receivables 121,322 168,628 65,191 15,938 112,026 199,482 49,580
Loans to participants - - - - - - -
---------- ---------- ---------- --------- ---------- ---------- -------------
Net assets available for plan benefits $3,447,132 $6,070,480 $1,953,254 $ 288,736 $2,732,839 $4,947,507 $ 708,017
========== ========== ========== ========= ========== ========== =============
</TABLE>
<TABLE>
<CAPTION>
Fund Information
----------------------------
WESLEY JESSEN PARTICIPANT
STOCK FUND LOANS TOTAL
------------ ----------- -----------
<S> <C> <C> <C>
Registered investment company funds $ - $ - $19,415,798
Receivables:
Participant contributions - - 59,359
Employer contributions 701,892 - 1,320,421
Loan repayments - - 54,279
------------ ----------- -----------
Total receivables 701,892 - 1,434,059
Loans to participants - 2,252,507 2,252,507
------------ ----------- -----------
Net assets available for plan benefits $ 701,892 $ 2,252,507 $23,102,364
============ =========== ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
3
<PAGE>
WESLEY JESSEN SAVINGS AND
RETIREMENT PLAN (401K
AND PROFIT-SHARING COMPONENT)
----------------------------
STATEMENT OF CHANGES IN NET ASSETS
AVAILABLE FOR PLAN BENEFITS,
WITH FUND INFORMATION
FOR THE YEAR ENDED DECEMBER 31, 1997
------------------------------------
<TABLE>
<CAPTION>
Fund Information
-------------------------------------------------------------------------------------------
VANGUARD
SEI TRUST F.I.S. S-T VANGUARD
BENHAM VANGUARD VANGUARD VANGUARD CORPORATE VANGUARD TREASURY
PRESERVATION WELLINGTON WINDSOR EXPLORER BOND INDEX 500 MONEY MKT
FUND FUND FUND FUND PORTFOLIO PORTFOLIO PORTFOLIO
------------ --------- ----------- ---------- ---------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
Investment income -
Interest and dividends $ - $ 353,789 $ 1,172,628 $ 193,425 $ 21,441 $ 91,430 $ 234,715
Net appreciation (depreciation)
in fair value of investments - 430,531 154,718 47,608 2,392 887,904 -
Contributions:
From participants - 386,643 507,220 222,532 43,865 388,337 156,538
From employer - 283,428 362,629 130,615 36,082 319,101 376,062
------------ --------- ---------- -------- ------- -------- ---------
Total contributions - 670,071 869,849 353,147 79,947 707,438 532,600
Distributions and withdrawals - (520,030) (1,099,318) (228,317) (35,968) (364,563) (746,604)
Rollovers and other transfers
to the plan 5,613,582 2,011,911 1,001,775 1,873,421 - 3,378,015 1,000,000
Refunds to participants (103) (13,859) (20,182) (9,096) (1,021) (20,725) (8,498)
Loan repayments - 180,854 249,085 111,719 24,491 168,107 288,255
Interfund transfers - (217,478) 158,910 (399,172) 35,482 857,022 (597,089)
------------ ---------- --------- ---------- ------- --------- ---------
Increase in assets during
the year 5,613,479 2,895,789 2,487,465 1,942,735 126,764 5,704,628 703,379
Net assets available for plan
benefits:
At beginning of year - 3,447,132 6,070,480 1,953,254 288,736 2,732,839 4,947,507
------------ --------- --------- --------- ------- --------- ---------
At end of year $ 5,613,479 $6,342,921 $ 8,557,945 $3,895,989 $415,500 $8,437,467 $5,650,886
============ ========= ========= ========= ======= ========= =========
</TABLE>
<TABLE>
<CAPTION>
Fund Information
------------------------------------------------------------------------------
VANGUARD VANGUARD VANGUARD
INT'L GROWTH PRIMECAP BOND INDEX WESLEY JESSEN PARTICIPANT
PORTFOLIO FUND FUND STOCK FUND LOANS TOTAL
------------ --------- ---------- ------------- ---------- -----------
<S> <C> <C> <C> <C> <C> <C>
Investment income -
Interest and dividends $ 39,766 $ - $ - $ - $ 216,945 $ 2,324,139
Net appreciation (depreciation)
in fair value of investments (25,949) - - 1,587,521 - 3,084,725
Contributions:
From participants 186,899 - - 71,472 - 1,963,506
From employer 102,560 29,274 11,477 627,612 - 2,278,840
---------- --------- ------ --------- --------- ----------
Total contributions 289,459 29,274 11,477 699,084 - 4,242,346
Distributions and withdrawals (150,803) - - (97,000) 1,202,143 (2,040,460)
Rollovers and other transfers
to the plan 1,665,739 6,969,677 - 256,027 1,281,762 25,051,909
Refunds to participants (7,264) (6,695) (121) (5,717) - (93,281)
Loan repayments 66,847 11,937 (1,101,295) -
Interfund transfers 34,129 - - 128,196 - -
---------- --------- ------ --------- --------- ----------
Increase in assets during
the year 1,911,924 6,992,256 11,356 2,580,048 1,599,555 32,569,378
Net assets available for plan
benefits: 708,017 - - 701,892 2,252,507 23,102,364
At beginning of year ---------- --------- ------ --------- --------- ----------
At end of year $2,619,941 $6,992,256 $ 11,356 $3,281,940 $ 3,852,062 $55,671,742
========== ========= ====== ========= ========= ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
4
<PAGE>
WESLEY JESSEN SAVINGS AND
RETIREMENT PLAN (401K
AND PROFIT-SHARING COMPONENT)
----------------------------
STATEMENT OF CHANGES IN NET ASSETS
AVAILABLE FOR PLAN BENEFITS,
WITH FUND INFORMATION
AT DECEMBER 31, 1996
--------------------
<TABLE>
<CAPTION>
Fund Information
----------------------------------------------------------------------
Vanguard
F.I.S. S-T
Vanguard Vanguard Vanguard Corporate Vanguard
Wellington Windsor Explorer Bond Index 500
Fund Fund Fund Portfolio Portfolio
----------- ----------- ----------- ---------- -----------
<S> <C> <C> <C> <C> <C>
Investment income -
Interest and dividends $ 253,833 $ 563,814 $ 102,326 $ 19,474 $ 54,949
Net appreciation (depreciation) in
fair value of investments 187,511 632,686 105,321 (4,378) 389,787
Contributions:
From participants 270,624 361,164 173,089 32,437 250,018
From employer 198,680 267,052 110,754 23,767 181,623
----------- ----------- ----------- ---------- -----------
Total contributions 469,304 628,216 283,843 56,204 431,641
Distributions and withdrawals (551,485) (1,051,770) (250,014) (25,115) (344,275)
Rollovers and other transfers to the plan 229,923 287,425 131,304 41,690 188,408
Loan repayments 139,419 224,284 103,792 19,561 103,127
Interfund transfers 135,010 176,526 121,071 (113,843) 259,380
----------- ----------- ----------- ---------- -----------
Increase (decrease) in assets during year 863,515 1,461,181 597,643 (6,407) 1,083,017
Net assets available for plan benefits:
At beginning of period 2,583,617 4,609,299 1,355,611 295,143 1,649,822
----------- ----------- ----------- ---------- -----------
At end of period $ 3,447,132 $ 6,070,480 $ 1,953,254 $ 288,736 $ 2,732,839
=========== =========== =========== ========== ===========
</TABLE>
<TABLE>
<CAPTION>
Fund Information
-----------------------------------------------------------------------------
Vanguard
Treasury Vanguard
Money Mkt Int'l Growth Wesley Jessen Participant
Portfolio Portfolio Stock Fund Loans Total
------------ ------------ ------------- ------------ ------------
<S> <C> <C> <C> <C> <C>
Investment income -
Interest and dividends $ 244,780 $ 28,326 $ - $ 189,618 $ 1,457,120
Net appreciation (depreciation) in
fair value of investments - 44,268 - - 1,355,195
Contributions:
From participants 146,346 104,244 - - 1,337,922
From employer 226,749 77,835 701,892 - 1,788,352
------------ --------- --------- ------------ ------------
Total contributions 373,095 182,079 701,892 - 3,126,274
Distributions and withdrawals (1,004,311) (94,368) - 856,187 (2,465,151)
Rollovers and other transfers to the plan 359,602 63,197 - - 1,301,549
Loan repayments 370,174 51,394 - (1,011,751) -
Interfund transfers (620,158) 42,014 - - -
------------ --------- --------- ------------ ------------
Increase (decrease) in assets during year (276,818) 316,910 701,892 34,054 4,774,987
Net assets available for plan benefits:
At beginning of period 5,224,325 391,107 - 2,218,453 18,327,377
------------ --------- --------- ------------ ------------
At end of period $ 4,947,507 $ 708,017 $ 701,892 $ 2,252,507 $ 23,102,364
============ ========= ========= ============ ============
</TABLE>
The accompanying notes are an integral part of these financial statements.
5
<PAGE>
WESLEY JESSEN SAVINGS AND
RETIREMENT PLAN (401K
AND PROFIT-SHARING COMPONENT)
----------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
DECEMBER 31, 1997 AND 1996
--------------------------
NOTE 1 - PLAN DESCRIPTION:
- --------------------------
The Wesley Jessen Savings and Retirement Plan (401K and Profit-Sharing
Component) (the "Plan") was established as of July 1, 1995 by Wesley Jessen
Corporation (the "Company"), a wholly owned subsidiary of Wesley Jessen
VisionCare, Inc.
The Plan is a component of the Wesley Jessen Savings and Retirement Plan, the
other component of which is a money purchase component. The two components
together make up the entire Wesley Jessen Savings and Retirement Plan. However,
the two components have separate filing requirements under the provisions of the
Internal Revenue Code ("IRC") and, therefore, maintain separate financial
statements.
The following description of the Plan is provided for general informational
purposes. Participants should refer to the Plan agreement for a more complete
description of the Plan's provisions.
General
The Plan is a defined contribution savings and profit-sharing plan covering all
eligible employees of Wesley Jessen Corporation. The Plan is administered by the
Administrative Committee (the "Administrator") and is subject to the provisions
of the Employee Retirement Income Security Act of 1974 ("ERISA").
The Administrative Committee, on behalf of the Plan, has appointed The Vanguard
Group (the "Trustee") as the Plan's trustee and recordkeeper.
Eligibility
The Plan provides benefits covering substantially all employees of the Company
provided that they have completed at least 90 days of service.
Investments
The Plan provides participants with the following investment options:
SEI Trust Benham Invests in Guaranteed Investment Contracts ("GICs") and
Preservation Fund GIC-like investments. This fund was transferred to the
Wesley Jessen Savings and Retirement Plan (401k and
Profit-Sharing Component) on December 31, 1997 in
conjunction with the merger of the PBH Employees'
Savings and Investment Plan. Effective December 31,
1997, this investment option was terminated, and the
assets will be transferred to the Vanguard Treasury
Money Market Portfolio upon maturity.
6
<PAGE>
Vanguard Wellington Fund Invests in common stocks and fixed income
securities.
Vanguard Windsor Fund Invests primarily in common stocks.
Vanguard Explorer Fund Invests in equity securities of relatively
small companies.
Vanguard Fixed Income Securities Invests in short-term U.S Treasury
Short-Term Corporate Bond Securities and highly-rated, short-term
Portfolio corporate bonds.
Vanguard Index 500 Portfolio Seeks to provide results which correspond
to the performance of the S&P 500 index.
Vanguard Treasury Money Market Invests exclusively in direct U.S.
Portfolio Government obligations, primarily U.S.
Treasury bills.
Vanguard International Growth Invests in common stock of companies based
Portfolio outside the United States that have above-
average growth potential.
Vanguard PRIMECAP Fund Invests in stock of companies with above-
average prospects for continued earnings or
bright prospects for earnings growth.
Vanguard Bond Index Fund Seeks to provide results which correspond
to the performance of the Lehman Brothers
Aggregate Bond Index.
Wesley Jessen Stock Fund Invests in common stock of Wesley Jessen
VisionCare, Inc.
Contributions and vesting
The Plan provides that qualified employees may make pre-tax elective
contributions to the Plan between 1% and 15% of annual compensation, which will
be matched by the Company at a rate of 50% of each participant's elective
contribution up to 6% of annual compensation. The Plan also provides that the
Company's Board of Directors may elect to make an additional discretionary
contribution to participants' accounts. All contributions are subject to certain
limitations as defined by the IRC.
Participant contributions vest upon deposit. Company contributions are fully
vested after four years of service. Forfeitures of unvested amounts are used to
offset future Company contributions.
Distributions and withdrawals
In the event of retirement, death, disability, or termination of employment, a
participant's vested interest in the Plan is distributable in a lump-sum payment
or, at the election of the participant, in periodic installments. Under certain
limited circumstances, participants may withdraw part or all of their pre-tax
contributions while still employed by the Company.
7
<PAGE>
Loans
Any participant may apply for a loan from the portion of their account
attributable to their elective contributions. Loans must be a minimum of $1,000,
with a maximum of the lesser of 50% of the participant's vested balance or
$50,000 reduced by the highest outstanding balance of loans from the plan during
the prior one-year period. Loan terms generally do not exceed five years, but
loans for the purchase of a principal residence may have terms up to twenty
years. Each loan bears interest at a fixed rate which is commensurate with the
prevailing market rates at the date the loan is issued.
Termination of the Plan
The Company intends to continue the Plan without interruption, but reserves the
right to discontinue the Plan at any time. Upon termination or partial
termination of the Plan, the balance of the participants' accounts shall become
fully vested and payable to the participants in accordance with the Plan's
provisions.
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES:
Basis of accounting
The financial statements have been prepared on the accrual basis of accounting.
Distributions to participants, however, are recorded when paid, in accordance
with ERISA regulations. Participant distributions payable at year-end are not
presented as a liability in the statement of net assets available for plan
benefits or as a distribution to participants in the statement of changes in net
assets available for plan benefits.
Contributions
Contributions, including matching and discretionary contributions, are recorded
when the related compensation is earned. Discretionary profit-sharing
contributions of $1,638,146 and $1,274,327 were declared by the Company for the
years ended December 31, 1997 and 1996, respectively, and are included in
employer contributions receivable. Included in rollovers and other transfers for
the year ended December 31, 1996 is a transfer of $1,277,825 from the
predecessor employer, representing an additional discretionary contribution.
Valuation of investments
All investments, except participant loans, are presented at fair value based
upon the market values of the underlying securities. Loans receivable from
participants are recorded at historical value, which is considered to
approximate fair value. Investment earnings are recognized when earned.
Unrealized appreciation or depreciation resulting from changes in market value
is recognized in the period in which it occurs.
Administrative expenses
In accordance with the Plan agreement, investment related expenses are paid from
Plan assets and are included in the accompanying financial statements as an
adjustment to the basis of securities purchased and sold. All other
administrative expenses which are not paid by the Plan are paid by the Company.
8
<PAGE>
Use of estimates
The preparation of financial statements in accordance with generally accepted
accounting principles requires the use of estimates by management regarding the
reported amounts of assets and liabilities as well as the additions and
deductions recognized during the reporting period. Actual results could differ
from these estimates.
NOTE 3 - TAX STATUS:
The Internal Revenue Service issued a favorable determination letter dated April
24, 1997 with respect to the tax qualified status of the Plan. As a result of
Plan amendments since the most recent determination letter, the Company intends
to file for a redetermination of the Plan's tax-exempt status, and expects a
favorable outcome. Therefore, no provision for income taxes has been included in
the Plan's financial statements.
NOTE 4 - BENEFIT OBLIGATIONS:
Benefit obligations for persons who have withdrawn from participation in the
Plan as of December 31, 1997 and 1996 were as follows:
<TABLE>
<CAPTION>
December 31,
-----------
1997 1996
---- ----
<S> <C> <C>
Vanguard Wellington Fund $ 2,427 $ 41,147
Vanguard Windsor Fund 6,164 57,620
Vanguard Explorer Fund 5,997 3,163
Vanguard F.I.S. S-T Corporate
Bond Portfolio - 99
Vanguard Index 500 Portfolio 12,251 20,724
Vanguard Treasury Money Market
Portfolio 17,852 7,968
Vanguard International Growth
Portfolio 7,056 1,039
Wesley Jessen Stock Fund 6,384 -
------- --------
$58,131 $131,760
======= ========
</TABLE>
These amounts are reflected as distributions and liabilities in the Plan's
December 31, 1997 and 1996 Forms 5500, but have not been reflected as
distributions and liabilities within these financial statements.
NOTE 5 - RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500:
The following is a reconciliation of net assets available for plan benefits per
the financial statements to the Form 5500:
<TABLE>
<CAPTION>
December 31,
-----------
1997 1996
---- ----
<S> <C> <C>
Net assets available for plan benefits
per financial statements $55,671,742 $23,102,364
Amounts allocated to terminated participants (58,131) (131,760)
----------- -----------
Net assets available for plan benefits per Form 5500 $55,613,611 $22,970,604
=========== ===========
</TABLE>
9
<PAGE>
The following is a reconciliation of benefits paid to participants per the
financial statements to the Form 5500 for the year ended December 31, 1997:
<TABLE>
<CAPTION>
<S> <C>
Benefits paid to participants per the financial statement $2,040,460
Add: Amounts allocated to terminated participants at
December 31, 1997 58,131
Less: Amounts allocated to terminated participants at
December 31, 1996 (131,760)
----------
Benefits paid to participants per Form 5500 $1,966,831
==========
</TABLE>
Amounts allocated to terminated participants are recorded on Form 5500 for
benefit claims that have been processed and approved for payment prior to
December 31, 1997, but not yet paid as of that date.
NOTE 6 - REFUNDS TO PARTICIPANTS:
The liability represents a return of 401(k) contributions plus earnings to
participants. These contributions were returned in 1998 in order for the Plan to
satisfy the 401(k) non-discrimination tests for the 1997 plan year and the
Internal Revenue Code Section 415 limitations on the maximum amount of
contributions that a participant could make in the 1997 plan year. The excess
contributions relating to the non-discrimination tests were returned pursuant to
the applicable Internal Revenue Service regulations. The excess 415
contributions were returned pursuant to the Internal Revenue Service's
Administrative Policy Regarding Self-Correction (APRSC) which provides that a
plan sponsor may correct operational errors within two plan years of the
occurrence of the error.
NOTE 7 - PLAN MERGER:
Effective on December 31, 1997, the Company merged the PBH Employees' Savings
and Investment Plan with the Wesley Jessen Savings and Retirement Plan (401K and
Profit-Sharing Component). Accordingly, at December 31, 1997, the Wesley Jessen
Savings and Retirement Plan (401K and Profit-Sharing Component) recorded the
related asset transfer.
10
<PAGE>
SCHEDULE I
----------
WESLEY JESSEN SAVINGS AND
RETIREMENT PLAN (401K
AND PROFIT-SHARING COMPONENT)
----------------------------
LINE 27(a) - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
AT DECEMBER 31, 1997
--------------------
<TABLE>
<CAPTION>
Identity of issue Description of investment Cost Market value
- ---------------------------------- --------------------------------- ----------- ------------
<S> <C> <C> <C>
*Vanguard Wellington Fund Registered investment company $ 3,591,651 $ 4,168,213
*Vanguard Windsor Fund Registered investment company 7,113,503 7,349,268
*Vanguard Explorer Fund Registered investment company 1,890,830 1,964,524
*Vanguard F.I.S. Short Term
Corporate Bond Portfolio Registered investment company 392,723 395,039
*Vanguard Index 500 Portfolio Registered investment company 3,774,473 4,870,795
*Vanguard Treasury Money Market Portfolio Registered investment company 4,318,082 4,318,082
*Vanguard International Growth Portfolio Registered investment company 917,383 906,405
*Wesley Jessen Stock Fund Company Stock Fund 1,220,433 2,412,489
*Participant Loans Loans other than mortgages, 7-11% - 3,906,776
----------- -----------
TOTALS $23,219,078 $30,291,591
=========== ===========
</TABLE>
*Represents party-in-interest
<PAGE>
SCHEDULE II
-----------
WESLEY JESSEN SAVINGS AND
RETIREMENT PLAN (401K
AND PROFIT-SHARING COMPONENT)
----------------------------
LINE 27(d) - SCHEDULE OF REPORTABLE TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 31, 1997
------------------------------------
<TABLE>
<CAPTION>
Expense Current value
Identity of party Purchase Selling Lease incurred with Cost of of asset on
involved Description of asset price price rental transaction asset transaction date
- --------------------- -------------------- -------- ------- ------ ------------- ------- ----------------
<S> <C> <C> <C> <C> <C> <C> <C>
*The Vanguard Group Vanguard Wellington Fund $1,330,802 $ - $ - $ - $1,330,802 $ 1,330,802
- 918,928 - - 787,255 918,928
Vanguard Windsor Fund 2,864,086 - - - 2,864,086 2,864,086
- 1,571,388 - - 1,343,283 1,571,388
Vanguard Explorer Fund 823,439 - - - 823,439 823,439
- 794,586 - - 748,053 794,586
Vanguard Index 500 3,592,734 - - - 3,592,734 3,592,734
Portfolio
- 2,230,656 - - 1,981,859 2,230,656
Vanguard Treasury Money
Market Portfolio 3,685,969 - - - 3,685,969 3,685,969
- 4,115,912 - - 4,115,912 4,115,912
*Wesley Jessen Wesley Jessen Stock Fund 2,092,457 - - - 2,092,457 2,092,457
VisionCare, Inc.
- 1,267,490 - - 1,001,307 1,267,490
</TABLE>
<TABLE>
<CAPTION>
Net
Identity of party realized
involved gain
- --------------------- --------
<S> <C>
*The Vanguard Group $ -
131,673
-
228,105
-
46,533
-
248,797
-
-
-
*Wesley Jessen
VisionCare, Inc. 266,183
</TABLE>
*Represents party-in-interest
<PAGE>
Exhibit 23.1
CONSENT OF INDEPENDENT ACCOUNTANTS
----------------------------------
We hereby consent to the incorporation by reference in the Registration
Statement on Form S-8 of our report dated May 21, 1998 appearing on page 1 of
Wesley Jessen Savings and Retirement Plan (401K and Profit-Sharing Component)'s
Annual Report on Form 11-K for the year ended December 31, 1997.
Price Waterhouse LLP
Chicago, Illinois
June 29, 1998
