<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
[ X ] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED]
For the Fiscal Year Ended December 31, 1998
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED]
Commission File Number 1-800
Title of the Plan -
SPECIAL INVESTMENT AND SAVINGS PLAN
FOR WRIGLEY EMPLOYEES
Name and Address of the Issuer of the Securities
Held Pursuant to the Plan -
WM. WRIGLEY JR. COMPANY
(Delaware Corporation)
410 North Michigan Avenue
Chicago, Illinois 60611
<PAGE>
SIGNATURE
The Plan. Pursuant to the requirements of the Securities
Exchange Act of 1934, the Special Investment and Savings Plan
Committee, as Administrator of the Plan, has duly caused this
Annual Report to be signed by the undersigned thereunto duly
authorized.
WM. WRIGLEY JR. COMPANY
SPECIAL INVESTMENT AND SAVINGS
PLAN
By: /s/ WM. M. PIET
Wm. M. Piet
The Benefits Committee Member
and Vice President-Corporate
Affairs and Assistant to the
President, Wm. Wrigley Jr. Company
Date: June 2, 1999
<PAGE>
Financial Statements
and Supplemental Schedules
Special Investment and Savings Plan
for Wrigley Employees
December 31, 1998 and 1997
with Report of Independent Auditors
Employer Identification #36-1988190
Plan #004
<PAGE>
Special Investment and Savings Plan
for Wrigley Employees
Financial Statements and Supplemental Schedules
Years ended December 31, 1998 and 1997
Contents
Report of Independent Auditors 1
Financial Statements
Statement of Assets Available for Benefits,
With Fund Information -
December 31, 1998 2
Statement of Assets Available for Benefits,
With Fund Information -
December 31, 1997 3
Statement of Changes in Assets Available for
Benefits, With Fund Information -
Year ended December 31, 1998 4
Statement of Changes in Assets Available for
Benefits, With Fund Information -
Year ended December 31, 1997 5
Notes to Financial Statements 6
Supplemental Schedules
Line 27a - Schedule of Assets Held for
Investment Purposes 16
Line 27d - Schedule of Reportable Transactions 17
<PAGE>
Report of Independent Auditors
The Special Investment and Savings Plan Committee
Special Investment and Savings Plan
for Wrigley Employees
We have audited the accompanying statements of
assets available for benefits of the Special
Investment and Savings Plan for Wrigley
Employees as of December 31, 1998 and 1997, and
the related statements of changes in assets
available for benefits for the years then ended.
These financial statements are the
responsibility of the Plan's management. Our
responsibility is to express an opinion on these
financial statements based on our audits.
We conducted our audits in accordance with
generally accepted auditing standards. Those
standards 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. An audit also includes assessing
the accounting principles used and significant
estimates made by management, as well as
evaluating the overall financial statement
presentation. We believe that our audits
provide a reasonable basis for our opinion.
In our opinion, the financial statements
referred to above present fairly, in all
material respects, the assets available for
benefits of the Plan at December 31, 1998 and
1997, and the changes in its assets available
for benefits for each of the years then ended,
in conformity with generally accepted accounting
principles.
Our audits were performed for the purpose of
forming an opinion on the basic financial
statements taken as a whole. The accompanying
supplemental schedules of assets held for
investment purposes as of December 31, 1998, and
reportable transactions for the year then ended,
are presented for purposes of additional
analysis and are not a required part of the
financial statements, but are supplementary
information required by the Department of
Labor's Rules and Regulations for Reporting and
Disclosure under the Employee Retirement Income
Security Act of 1974. These supplemental
schedules are the responsibility of the Plan's
management. The Fund Information in the
statements of assets available for benefits and
the statements of changes in assets available
for benefits is presented for purposes of
additional analysis rather than to present the
assets available for benefits and changes in
assets available for benefits of each fund. The
supplemental schedules and Fund Information have
been subjected to the auditing procedures
applied in our 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.
April 23, 1999
<PAGE>
<TABLE>
EIN 36-198190
Plan #004
Special Investment and Savings Plan
for Wrigley Employees
Statement of Assets Available for Benefits,
With Fund Information
December 31, 1998
Fund Information
Putnam
Putnam Putnam OTC & Putnam
Stable Growth & Putnam Putnam Emerging International Wrigley Putnam
Value Income Vista Income Growth Growth Stock Loan
Total Fund Fund Fund Fund Fund Fund Fund Fund
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Assets
Investments, at fair value:
Shares of registered
investment companies:
Putnam Stable
Value Fund $34,639,540 $34,639,540 $ - $ - $ - $ - $ - $ - $ -
Putnam Growth &
Income Fund 19,678,530 - 19,678,530 - - - - - -
Putnam Vista Fund 11,549,683 - - 11,549,683 - - - - -
Income 2,105,319 - - - 2,105,319 - - - -
Emerging Growth 2,473,489 - - - - 2,473,489 - - -
International Growth 3,566,433 - - - - - 3,566,433 - -
Wrigley Stock Fund:
Wm. Wrigley Jr. Company
Common Stock (3,449,143
shares;
cost - $77,252,374) 308,913,888 - - - - - - 308,913,888 -
Wm. Wrigley Jr. Company
Class B Common Stock
(651,466 shares;
cost - $1,575,417) 58,346,924 - - - - - - 58,346,924 -
Participants' loans 7,686,808 - - - - - - - 7,686,808
Invested cash 20,421 - - - - - - 20,421 -
Total investments 448,981,035 34,639,540 19,678,530 11,549,683 2,105,319 2,473,489 3,566,433 367,281,233 7,686,808
Assets available for
benefits $448,981,035 $34,639,540 $19,678,530 $11,549,683 $2,105,319 $2,473,489 $3,566,433 $367,281,233 $7,686,808
Assets available for
benefits:
Participants' contributions
including earnings $191,703,092 $34,639,540 $19,678,530 $11,549,683 $2,105,319 $2,473,489 $3,566,433 $110,003,290 $7,686,808
Employer's contributions
including earnings 257,277,943 - - - - - - 257,277,943 -
Assets available for
benefits $448,981,035 $34,639,540 $19,678,530 $11,549,683 $2,105,319 $2,473,489 $3,566,433 $367,281,233 $7,686,808
See notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
EIN 36-1988190
Plan #004
Special Investment and Savings Plan
for Wrigley Employees
Statement of Assets Available for Benefits,
With Fund Information
December 31, 1997
Fund Information
Putnam
Putnam Putnam OTC & Putnam
Stable Growth & Putnam Putnam Emerging International Wrigley
Value Income Vista Income Growth Growth Stock
Total Fund Fund Fund Fund Fund Fund Fund
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Assets
Investments, at fair value:
Shares of registered
investment companies:
Putnam Stable Value Fund $35,008,846 $35,008,846 $ - $ - $ - $ - $ - $ -
Putnam Growth & Income Fund 19,416,572 - 19,416,572 - - - - -
Putnam Vista Fund 11,873,626 - - 11,873,626 - - - -
Income 2,256,535 - - - 2,256,535 - -
Emerging Growth 2,015,959 - - - - 2,015,959 - -
International Growth 2,597,486 - - - - - 2,597,486 -
Wrigley Stock Fund:
Wm. Wrigley Jr. Company
Common Stock
(3,656,438 shares;
cost- $64,736,358) 290,915,327 - - - - - - 290,915,327
Wm. Wrigley Jr. Company
Class B Common Stock
(727,768 shares;
cost - $1,739,119) 57,903,083 - - - - - - 57,903,083
Participants' loans 6,509,885 1,456,420 269,098 102,766 3,531 (3,662) 79,598 4,602,134
Invested cash 16,484 - - - - - - 16,484
Total investments 428,513,803 36,465,266 19,685,670 11,976,392 2,260,066 2,012,297 2,677,084 353,437,028
Receivables:
Employers' contributions 43,810 - - - - - - 43,810
Participants' contributions 149,762 33,174 17,043 11,070 1,312 4,474 4,445 78,244
Total receivables 193,572 33,174 17,043 11,070 1,312 4,474 4,445 122,054
Assets available for
benefits $428,707,375 $36,498,440 $19,702,713 $11,987,462 $2,261,378 $2,016,771 $2,681,529 $353,559,082
Assets available for
benefits:
Participants' contributions
including earnings $179,368,549 $36,498,440 $19,702,713 $11,987,462 $2,261,378 $2,016,771 $2,681,529 $104,220,256
Employer's contributions
including earnings 249,338,826 - - - - - - 249,338,826
Assets available for
benefits $428,707,375 $36,498,440 $19,702,713 $11,987,462 $2,261,378 $2,016,771 $2,681,529 $353,559,082
See notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
EIN 36-1988190
Plan #004
Special Investment and Savings Plan
for Wrigley Employees
Statement of Changes in Assets Available for
Benefits,
With Fund Information
Year ended December 31, 1998
Fund Information
Putnam
Putnam Putnam OTC & Putnam
Stable Growth & Putnam Putnam Emerging International Wrigley Putnam
Value Income Vista Income Growth Growth Stock Loan
Total Fund Fund Fund Fund Fund Fund Fund Fund
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Additions
Investment income:
Dividends:
Putnam mutual funds $4,996,146 $ 2,114,553 $ 1,751,025 $ 833,619 $ 118,555 $ 76,317 $102,077 $ - $ -
Wm. Wrigley Jr.Company
Common Stock 4,548,476 - - - - - - 4,548,476 -
Wm. Wrigley Jr. Company
Class B Common Stock 881,178 - - - - - - 881,178 -
10,425,800 2,114,553 1,751,025 833,619 118,555 76,317 102,077 5,429,654 -
Interest:
Invested cash 34,775 - - - - - - 34,775 -
Participants' loans 445,104 - - - - - - - 445,104
Total investment
income 10,905,679 2,114,553 1,751,025 833,619 118,555 76,317 102,077 5 ,464,429 445,104
Net realized and
unrealized appreciation
in fair value of
investments 45,501,947 - 969,694 904,962 (41,379) 153,596 398,047 43,117,027 -
Contributions:
Participants 9,588,579 1,505,440 1,241,973 909,855 118,196 405,681 401,89 5,005,536 -
Employer 3,201,618 - - - - - - 3,201,618 -
Total contributions 12,790,197 1,505,440 1,241,973 909,855 118,196 405,681 401,898 8,207,154 -
Deductions
Distributions to
participants (48,866,447) (13,211,793) (3,768,387) (1,136,277) (630,216) (426,693) (336,596 (29,105,041)(251,444)
Forfeitures, allocable
to future employer
contributions (57,716) - - - - - - (57,716) -
Transfers of investment
direction, net - 7,732,900 (218,488) (1,949,938) 278,785 247,817 319,478 (13,903,702) 7,493,148
Increase (decrease) in
assets available
for benefits 20,273,660 (1,858,900) (24,183) (437,779) (156,059) 456,718 884,904 13,722,151 7,686,808
Assets available for
benefits at beginning
of year 428,707,375 36,498,440 19,702,713 11,987,462 2,261,378 2,016,771 2,681,529 353,559,082
Assets available for
benefits at end
of year $448,981,035 $34,639,540 $19,678,530 $11,549,683 $2,105,319 $2,473,489 $3,566,433 $367,281,233 $7,686,808
See notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
EIN 36-1988190
Plan #004
Special Investment and Savings Plan
for Wrigley Employees
Statement of Changes in Assets Available for Benefits,
With Fund Information
Year ended December 31, 1997
Fund Information
Putnam
Putnam Putnam Putnam OTC & Putnam
Stable Growth & Putnam Global Putnam Emerging International Wrigley
Value Income Vista Growth Income Growth Growth Stock
Total Fund Fund Fund Fund Fund Fund Fund Fund
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Additions
Investment income:
Dividends:
Putnam mutual funds $ 5,748,037 $ 2,067,064 $ 2,605,024 $ 849,153 $ - $ 70,202 $ - $ 156,594 $ -
Wm. Wrigley Jr.
Company Common Stock 4,352,631 - - - - - - - 4,352,631
Wm. Wrigley Jr.
Company Class B
Common Stock 908,584 - - - - - - - 908,584
11,009,252 2,067,064 2,605,024 849,153 - 70,202 - 156,594 5,261,215
Interest:
Invested cash 6,538 (139) - - - - - - 6,677
Participants' loans 401,300 48,480 21,147 12,864 4,962 636 2,247 7,443 303,521
407,838 48,341 21,147 12,864 4,962 636 2,247 7,443 310,198
Total investment
income 11,417,090 2,115,405 2,626,171 862,017 4,962 70,838 2,247 164,037 5,571,413
Net realized and
unrealized appreciation
in fair value of
investments 108,440,233 - 1,153,037 1,477,182 351,082 22,647 273,176 76,651 105,086,458
Contributions:
Participants 9,070,559 1,738,650 1,234,580 828,934 183,802 77,809 230,747 287,433 4,488,604
Employer 3,226,290 - - - - - - - 3,226,290
Total contributions 12,296,849 1,738,650 1,234,580 828,934 183,802 77,809 230,747 287,433 7,714,894
Deductions
Distributions to
participants (39,919,653)(13,913,509) (4,337,651) (2,145,230) (367,215) (28,872) (18,825) (337,440)(18,770,911)
Forfeitures, allocable
to future employer
contributions (45,341) - - - - - - - (45,341)
Transfers of investment
direction, net - 14,211,960 3,925,355 826,930 (4,897,256) 2,118,956 1,529,426 2,490,848 (20,206,219)
Increase (decrease) in
assets available for
benefits 92,189,178 4,152,506 4,601,492 1,849,833 (4,724,625) 2,261,378 2,016,771 2,681,529 79,350,294
Assets available for
benefits at beginning
of year 336,518,197 32,345,934 15,101,221 10,137,629 4,724,625 - - - 274,208,788
Assets available for
benefits at end of
year $428,707,375 $36,498,440 $19,702,713 $11,987,462 $ - $2,261,378 $2,016,771 $2,681,529 $353,559,082
See notes to financial statements.
</TABLE>
<PAGE>
EIN 36-1988190
Plan #004
Special Investment and Savings Plan
for Wrigley Employees
Notes to Financial Statements
Years ended December 31, 1998 and 1997
1. Description of the Plan
The following is a brief description of the Special
Investment and Savings Plan for Wrigley
Employees (the Plan) in effect at December 31,
1998, and is provided for general information
purposes only. Participants should refer to the
plan document for a more complete description of
the Plan's provisions.
Participation and Contributions
The Plan was established, effective January 1,
1975, for the employees of Wm. Wrigley Jr.
Company and such United States subsidiaries and
affiliates of Wm. Wrigley Jr. Company that adopt
the Plan (collectively referred to as the
Company or Employer). The Plan is subject to
the provisions of the Employee Retirement Income
Security Act of 1974 (ERISA). Effective January
1, 1998, employees are eligible to participate
in the Plan the first of the month following or
coincident with their hire date. Prior to
January 1, 1998, employees were generally
eligible after one year of service. After-tax
and/or 401(k) accounts and Company matching
accounts are maintained for each participant. A
participant's account balances are valued daily
for participant and Employer contributions,
investment income, and net appreciation
(depreciation) in fair value of investments.
The Plan allows eligible employees to make
contributions, usually in the form of payroll
deductions, generally up to 15% of base salary,
subject to an annual limit as required by the
Internal Revenue Service (IRS). Subject to
certain limitations, the Employer is required to
make matching contributions at 60% of most
participants' contributions up to 6% of base
salary. All Employer contributions are invested
in the Wrigley Stock Fund.
<PAGE>
1. Description of the Plan (continued)
Participant and Employer contributions for the
two years ended December 31, 1998, were as
follows:
<TABLE>
1998 1997
Employer Participants Employer Participants
<S> <C> <C> <C> <C>
Wm. Wrigley Jr. Company $2,653,575 $7,996,460 $2,682,052 $7,538,310
L. A. Dreyfus Company 237,261 645,598 233,272 832,094
Amurol Products Company 281,523 823,290 281,446 625,797
Northwestern Flavors, Inc. 29,259 123,231 29,520 74,358
$3,201,618 $9,588,579 $3,226,290 $9,070,559
</TABLE>
The Putnam Fiduciary Trust Company, as Trustee
under the Special Investment and Savings Plan
Trust for Wrigley Employees (Trust), dated
January 12, 1977, and amended and restated as of
January 1, 1994, directs the purchases and sales
of investments for all funds, within the limits
prescribed in the Plan. Contributions and
earnings awaiting investment under the specified
investment programs are temporarily placed in
the Trust's collective short-term investment
fund at Putnam Fiduciary Trust Company.
Loans
The Plan contains provisions that allow loans to
participants, subject to certain restrictions.
The maximum aggregate amount that will be loaned
to any participant will generally be the lesser
of $50,000 or 50% of the vested portion of the
participant's accounts as of the last preceding
valuation date. These loans, which have a
maximum term of five years (ten years if used to
acquire a participant's principal residence),
are to be repaid through payroll deductions.
Loans shall bear a reasonable rate of interest,
established annually by the Committee, generally
equal to, for any Plan year, the prime interest
rate minus 1% (effective October 1, 1999, the loan interest
will be changed to prime interest rate). As of
Plan year 1998, the Loan Fund is disclosed in
the columnar format on the Statement of Assets
Available for Benefits and the Statement of
Changes in Assets Available for Benefits.
Investment Options and Transfers
Upon enrollment in the Plan, a participant may
direct employee contributions, in 5% increments,
in any of eight investment options.
1. Description of the Plan (continued)
Putnam Stable Value Fund - Funds are invested in shares of a
registered investment company that seeks low-risk fixed-income
investments in annuity contracts, certificates of deposit, and
U.S. Treasury and government agency obligations.
Putnam Growth and Income Fund - Funds are invested in shares
of a registered investment company that seeks capital growth
and current income through investments in common stocks,
corporate bonds, and U.S. government securities.
Putnam Vista Fund - Funds are invested in shares of a
registered investment company that seeks capital appreciation
through investments in growth and value common stocks.
Putnam Global Growth Fund - Funds are invested in shares of a
registered investment company that seeks capital appreciation
through investments in a globally diversified portfolio of
common stocks. Effective June 30, 1997, the Global Growth
Fund was no longer a Fund option. All assets were
transferred to other funds.
Putnam Income Fund - Funds are invested in shares of a
registered investment company that seeks high current income
through investments in debt securities, preferred stocks, and
dividend-paying common stocks.
Putnam OTC & Emerging Growth Fund - Funds are invested in
shares of a registered investment company that seeks capital
appreciation through investments primarily in common stocks of
"emerging growth" companies.
Putnam International Growth Fund - Funds are invested in
shares of a registered investment company that seeks capital
appreciation through investments in equity securities of
companies primarily located in a country other than the United
States.
Wrigley Stock Fund - Funds are invested in Wm. Wrigley Jr.
Company common stock.
Participants may change their investment direction on any day, in
1% increments. In addition, participants may elect to transfer
their account balance in any investment fund or funds on any day,
in 1% increments, to any other investment fund or funds. After
<PAGE>
1. Description of the Plan (continued)
reaching age 54, participants may make a one-
time election to diversify their Company
contribution account into any other investment
fund or funds. Changes in investment direction
or transfers can be made by calling Putnam
directly or by written authorization.
Vesting
Effective January 1, 1998, due to change in
eligibility, a participant's portion of the
Employer matching contributions, including
investment income and realized and unrealized
gains and losses on investments, is fully vested
after five years of service. Prior to January
1, 1998, participants vested after four years of
participation in the Plan (at the rate of 25%
for each year). A participant also becomes
fully vested after one of the following events:
death, or termination of employment if the
participant: (i) retires after reaching age 55; (ii) is
permanently disabled; or (iii) enters the Armed
Forces of the United States. Participants are
always fully vested in their taxdeferred and
regular deposit accounts.
Withdrawals
Active participants may make a withdrawal from
the Plan once during a calendar quarter on any
day. Participants may withdraw the amount in
their regular deposit account and, under certain
circumstances, the vested portion of their
Employer matching contribution account and tax-
deferred account. Once a participant makes a
withdrawal, contributions will not be matched
for a three-month period.
Distributions to Participants
Active participation in the Plan terminates upon
death, retirement, or other termination of
employment with the Company. Participants may
generally receive distributions of their vested
interest in the Plan in a lump-sum distribution,
an annuity, or a combination thereof.
Charges and Deductions
When a distribution of a participant's interest
in the Plan results in forfeiture of the
nonvested portion of the participant's account,
the amount so forfeited reduces the amount of
the Employer's matching contribution required to
be made on behalf of other participants on
subsequent employer deposits.
<PAGE>
1. Description of the Plan (continued)
It is the intent of the Company to continue to
pay the administrative expenses of the Plan, but
if the Company fails to make the payments or so
directs the Trustee, there may be a charge
against the Trust for these expenses.
Plan Termination
Although the Company has not expressed any
intent to terminate the Plan, it is free to do
so at any time subject to the provisions of the
Internal Revenue Code (IRC) and ERISA. In the
event the Plan is terminated, participants would
automatically become fully vested and the net
assets of the Plan would be allocated among the
participants in an amount equal to the balances
in their individual accounts at
the date of termination.
2. Significant Accounting Policies
Investment Valuation
The Plan's investments are stated at fair value.
The shares of registered investment companies
are valued at quoted market prices which
represent the net asset value of shares held by
the Plan at year-end. The Wm. Wrigley Jr.
Company Common Stock is valued at its quoted
market price on the New York Stock Exchange.
There is no established public trading market
for the Wm. Wrigley Jr. Company Class B Common
Stock. However, because the Class B Common Stock
is at all times convertible into Common Stock on
a share-for-share basis, the market value of
such shares is considered to be equivalent to
that of the Company's Common Stock. Participant
loans are valued at cost which approximates fair
value.
Contributions
Contributions from participants are recognized
when withheld by the Company through payroll
deductions.
Matching contributions from the Employer are
recognized concurrently with the recognition of
participants' contributions.
Security Transactions
Purchases and sales of securities are accounted
for on the trade date. Gains and losses on
sales or withdrawals of securities are based on
the average cost of the securities.
<PAGE>
2. Significant Accounting Policies (continued)
Income Recognition
Dividend income is recorded on the ex-dividend
date. Income from other investments is recorded as
earned on the accrual basis.
Use of Estimates
The preparation of financial statements in
conformity with generally accepted accounting
principles requires management to make
estimates and assumptions that affect the
amounts reported in financial statements and
accompanying notes. Actual results could
differ from those estimates.
<PAGE>
3. Investments (continued)
The components of net realized and unrealized
appreciation (depreciation) in fair value of
investments (including investments bought,
sold, and held) for the two years ended
December 31, 1998, are as follows:
<PAGE>
<TABLE>
Putnam Putnam Putnam Putnam Putnam
Stable Growth & Putnam Global Wrigley Putnam OTC International
Value Income Vista Growth Stock Income Emerging Growth
Fund Fund Fund Fund Fund Fund Fund Fund
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1998:
Proceeds from sale of
investments or withdrawals
of stock $ - $5,994,115 $7,889,536 $ - $ 45,266,340 $1,646,221 $1,466,050 $1,602,728
Cost of securities
- 5,369,048 7,592,046 - 8,392,573 1,641,894 1,399,557 1,520,760
Realized gain
- 625,067 297,490 - 36,873,767 4,327 66,493 81,968
Change in unrealized
appreciation on investments - 344,627 607,472 - 6,243,260 (45,706) 87,103 316,079
Net realized and unrealized
appreciation (depreciation)
in fair value $ - $ 969,694 $ 904,962 $ - $ 43,117,027 $ (41,379) $ 153,596 $ 398,047
1997:
Proceeds from sale of
investments or withdrawals
of stock $ - $7,633,338 $6,027,043 $5,245,323 $ 45,486,845 $ 428,355 $ 842,492 $ 1,039,670
Cost of securities
- 6,591,197 5,090,002 4,566,699 15,663,781 427,588 799,676 966,172
Realized gain
- 1,042,141 937,041 678,624 29,823,064 767 42,816 73,498
Change in unrealized
appreciation on investments - 110,896 540,141 (327,542) 75,263,394 21,880 230,360 3,153
Net realized and unrealized
appreciation in fair value $ - $1,153,037 $1,477,182 $ 351,082 $105,086,458 $ 22,647 $ 273,176 $ 76,651
</TABLE>
<PAGE>
3. Investments
The per share market value of Wm. Wrigley Jr.
Company Common Stock at December 31, 1998 and
1997, is as follows:
1998 1997
Wm. Wrigley Jr. Company Common Stock $89.563 $79.562
4. Reconciliation of Financial
Statements to Form 5500
The following is a reconciliation of
assets available for benefits per the
financial statements to the Form 5500:
December 31
1998 1997
Assets available for benefits per
the financial statements $448,981,035 $428,707,375
Amounts allocated to withdrawing
participants (23,572,112) (26,508,659)
Assets available for benefits
per the Form 5500 $425,408,923 $402,198,716
Amounts allocated to withdrawing
participants by fund option are
as follows:
December 31
1998 1997
Putnam Stable Value Fund $ 3,335,285 $ 4,076,028
Putnam Growth & Income Fund 1,266,633 2,175,120
Putnam Vista Fund 725,650 437,132
Putnam Income Fund 489,029 352,574
Putnam OTC & Emerging Growth Fund 101,700 101,008
Putnam International Growth Fund 270,057 180,827
Wm. Wrigley Jr. Company Common Stock 17,383,758 19,185,970
$23,572,112 $26,508,659
<PAGE>
4. Reconciliation of Financial Statements
to Form 5500 (continued)
The following is a reconciliation of benefits
paid to participants per the financial
statements to the Form 5500:
Year ended December 31
1998 1997
Benefits paid to participants
per the financial statements $48,866,447 $39,919,653
Add: Amounts allocated to
withdrawing participants at
end of year 23,572,112 26,508,659
Less: Amounts allocated
to withdrawing participants
t beginning of year (26,508,659) (19,605,411)
Benefits paid to participants
per the Form 5500 $45,929,900 $46,822,901
5. Federal Income Tax Status
The IRS ruled July 18, 1995, that the Plan
qualified under section 401(a) of the IRC and,
therefore, the related trust is not subject to
tax under present income tax law. Once
qualified, the Plan is required to operate in
conformity with the IRC to maintain its
qualification. The Special Investment and
Savings Plan Committee is not aware of any
course of action or series of events that have
occurred that might adversely affect the Plan's
qualified status.
Employer contributions under the Plan and
earnings of the Trust are not taxable to the
participant until the year in which such amounts
are distributed. Generally, whenever a
participant receives any amount other than an
amount attributable to his regular deposit
account contributions, such amount is taxable as
ordinary income in the year of distribution.
When a participant receives a lump-sum
distribution, certain beneficial rules may apply
to reduce or eliminate the tax on such
distribution. These benefits include special
averaging techniques and rollovers to another
qualified employee retirement plan or to an
individual retirement account or annuity.
The unrealized appreciation on Wm. Wrigley Jr.
Company Common Stock distributed in a lump-sum
distribution or attributable to a participant's
regular deposit account contributions in any
other distribution will not be subject to
federal income tax at the time of distribution
but will, to the extent realized, be taxable
upon disposition of such
shares.
<PAGE>
6. Impact of Year 2000 (Unaudited)
The Company has determined that it will be
necessary to take certain steps in order to
ensure that the Plan's information systems are
prepared to handle Year 2000 dates. The Company
is taking a two-phase approach. The first phase
addresses internal systems that must be modified
or replaced to function properly. Both internal
and external resources are being utilized to
replace or modify existing software
applications, and test the software and
equipment for the Year 2000 modifications. The
Company anticipates substantially completing
this phase of the project by mid1999. Costs
associated with modifying software and equipment
are not estimated to be significant and will be
paid by the Company.
For the second phase of the project, Plan
management established formal communications
with its third-party service providers to
determine that they have developed plans to
address their own Year 2000 problems as they
relate to the Plan's operations. All third-
party service providers have indicated that they
will be Year 2000 compliant by mid1999. If
modification of data processing systems of
either the Plan the Company, or its service
providers are not completed timely, the Year
2000 problem could have a material impact on the
operations of the Plan. Plan management has not
developed a contingency plan, because they are
confident that all systems will be Year 2000
ready.
7. Subsequent Events
In 1999, the Plan added the Putnam Investors
Fund, the Putnam Money Market Fund, and the
Putnam U.S. Government Income Fund as investment
fund options and eliminated the Putnam Stable
Value Fund as an investment option.
<PAGE>
Consent of Independent Auditors
We consent to the incorporation by reference in
the Registration Statement (Form S-8, File No.
33-15061) pertaining to the Special Investment
and Savings Plan for Wrigley Employees of Wm.
Wrigley Jr. Company of our report dated April
23, 1999, with respect to the financial
statements of the Special Investment and Savings
Plan for Wrigley Employees included in this
Annual Report (Form 11-K) for the year ended
December 31, 1998.
June 1, 1999
