<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 11-K
(Mark One)
[ X ] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT 0F
1934
For the fiscal year ended December 31, 1999
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934
for the transition period from________ to________
Commission file number 333-70067
A. Full title of the plan and the address of the plan, if different from that of
the issuer named below:
Sally Beauty 401(k) Savings Plan Alberto-Culver 401(k) Savings Plan
3900 Morse Street
Denton, TX 76205
B. Name of issuer of the securities held pursuant to the plan and the address of
its principal executive office:
Alberto-Culver Company
2525 Armitage Ave.
Melrose Park, IL 60160
<PAGE>
SIGNATURES
The Plans: Pursuant to the requirements of the Securities Exchange Act of 1934,
the trustees (or other persons who administer the employee benefit plans) have
duly caused this annual report to be signed on their behalf by the undersigned
hereunto duly authorized.
SALLY BEAUTY 401(k) SAVINGS PLAN
By: Sally Beauty Company, Inc., Plan Administrator
By:/s/ Michael H. Renzulli
---------------------------
Michael H. Renzulli
President
ALBERTO-CULVER 401(k) SAVINGS PLAN
By: Alberto-Culver Company, Inc., Plan Administrator
By:/s/ William J. Cernugel
---------------------------
William J. Cernugel
Senior Vice President and CFO
Dated: June 7, 2000
<PAGE>
ALBERTO-CULVER
401(k) SAVINGS PLAN
Financial Statements and Supplemental Schedule
December 31, 1999 and 1998
(With Independent Auditors' Report Thereon)
<PAGE>
ALBERTO-CULVER
401(k) SAVINGS PLAN
Table of Contents
<TABLE>
<CAPTION>
Page
<S> <C>
Independent Auditors' Report 1
Statements of Net Assets Available for Plan Benefits 2
Statements of Changes in Net Assets Available for Plan Benefits 3
Notes to Financial Statements 4
Supplemental Schedule
Schedule H - Item 4(i) - Schedule of Assets Held for Investment Purposes 12
</TABLE>
<PAGE>
Independent Auditors' Report
To the Plan Administrator of the
Alberto-Culver 401(k) Savings Plan:
We have audited the accompanying statements of net assets available for plan
benefits of the Alberto-Culver 401(k) Savings Plan (the Plan) as of December
31, 1999 and 1998, and the related statements of changes in net assets
available for plan 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 net assets available for plan benefits of the Plan
as of December 31, 1999 and 1998, and the changes in net assets available for
plan benefits for 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 supplemental schedule of assets
held for investment purposes is presented for the purpose of additional
analysis and is not a required part of the basic financial statements but is
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. This supplemental schedule is the responsibility of the
Plan's management. The supplemental schedule has been subjected to the
auditing procedures applied in the audits of the basic financial statements
and, in our opinion, is fairly stated in all material respects in relation to
the basic financial statements taken as a whole.
/s/ KPMG LLP
April 28, 2000
<PAGE>
ALBERTO-CULVER
401(k) SAVINGS PLAN
Statements of Net Assets Available for Plan Benefits
December 31, 1999 and 1998
<TABLE>
<CAPTION>
1999 1998
----------- -----------
<S> <C> <C>
Assets:
Cash $ -- $ 84,555
Investments, at market value:
CIGNA Charter Guaranteed Income Fund 5,143,757 4,351,306
CIGNA Charter Large Company Stock Index Fund 4,269,067 3,524,523
Fidelity Advisor Equity Growth Fund 5,041,393 3,537,750
Fidelity Advisor Growth Opportunities Fund 2,647,667 2,872,446
Fidelity Advisor Balanced Fund 2,279,179 2,227,847
Warburg Pincus International Equity Fund 1,306,040 795,922
CIGNA Lifetime 20 63,874 --
CIGNA Lifetime 30 42,165 --
CIGNA Lifetime 40 61,876 --
CIGNA Lifetime 50 105,631 --
CIGNA Lifetime 60 4,182 --
CIGNA Charter Balanced Fund 127,794 --
CIGNA Charter Large Company Stock - Growth II Fund 380,795 --
CIGNA Charter Midsize Company Stock - Growth Fund 18,332 --
CIGNA Charter Small Company Stock - Growth Fund 87,789 --
Janus Worldwide Fund 816,048 --
Lazard International Equity Fund 14,101 --
Alberto-Culver Company Class B Common Stock 217,073 --
Loans to participants 563,795 489,427
----------- -----------
Total assets held for investment 23,190,558 17,883,776
Employer contribution receivable 704,108 449,375
----------- -----------
Net assets available for plan benefits $23,894,666 $18,333,151
=========== ===========
</TABLE>
See accompanying notes to financial statements.
2 (Continued)
<PAGE>
ALBERTO-CULVER
401(k) SAVINGS PLAN
Statements of Changes in Net Assets Available for Plan Benefits
Years ended December 31, 1999 and 1998
<TABLE>
<CAPTION>
1999 1998
----------- ----------
<S> <C> <C>
Additions to net assets attributed to:
Investment income:
Net appreciation in fair value of investments $ 3,027,696 2,445,473
Dividend and interest income 261,056 217,285
Interest on participant loans 46,025 39,836
----------- ----------
Total investment income 3,334,777 2,702,594
----------- ----------
Contributions:
Employer 704,108 449,375
Employee 3,499,399 3,201,060
----------- ----------
Total contributions 4,203,507 3,650,435
----------- ----------
Total additions 7,538,284 6,353,029
----------- ----------
Deductions from net assets attributed to:
Benefits paid to participants 1,968,726 927,769
Administrative fees 8,043 7,366
----------- ----------
Total deductions 1,976,769 935,135
----------- ----------
Net increase 5,561,515 5,417,894
Net assets available for plan benefits at beginning of year 18,333,151 12,915,257
----------- ----------
Net assets available for plan benefits at end of year $23,894,666 18,333,151
=========== ==========
</TABLE>
See accompanying notes to financial statements.
3
<PAGE>
ALBERTO-CULVER
401(K) SAVINGS PLAN
Notes to Financial Statements
December 31, 1999 and 1998
(1) Description of the Plan
General
The Alberto-Culver 401(k) Savings Plan (the Plan), established on January
1, 1994, is a defined contribution plan available to eligible employees
of Alberto-Culver Company (the Company), and certain subsidiaries of the
Company.
The Plan is administered by the Company with the assistance of
Connecticut General Life Insurance Company, a CIGNA Company. The
investment assets of the Plan are held by CG Trust Company (the Trustee).
The following description of the Plan provides only general information.
Information about the Plan's provisions is contained in the Plan
document, which may be obtained from the Company.
Participation
Effective January 1, 1999, All eligible employees whose customary
employment is for at least 1,000 hours within 12 consecutive months and
are not a member of a collective bargaining unit and are at least 21
years of age may participate in the Plan on the first day of the month
next following the employee's hire date. On December 31, 1999, there were
1,065 employees in the Plan.
Contributions
Participants may elect to contribute any amount from 1% to 12% of their
eligible compensation, in whole percentage points, subject to the
limitations of the Internal Revenue Code, as amended (the Code). The
percentage of compensation contributed may be increased or decreased at
the election of the participant any time during the year. All eligible
participant contributions are tax deferred contributions pursuant to a
qualified cash or deferral arrangement subject to the limitations of the
Code. Company contributions to the Plan are based on a discretionary
match on an annual basis. For the Plan years 1999 and 1998, the Company
matched $.50 and $.35, respectively, of each dollar on 4% of eligible
participant compensation.
Investment Options
Effective January 1, 1999, additional investment fund options were added
to the Plan for the purposes of providing a broader selection of
investment options for the participants to choose from.
Participants may elect to invest their contributions and any Company
contributions in eighteen investment funds within seven different asset
classes and the Company's class B common stock. Such asset classes
include; (i) fixed income fund, (ii) balanced fund, (iii) large
capitalization equity fund, (iv) mid capitalization equity fund, (v)
small capitalization equity fund, (vi) global equity fund and (vii)
international equity fund.
Participants may invest Company and employee contributions in 1%
increments in the Plan's available fund options and may reallocate their
investments among the available fund options any time during the year.
4 (Continued)
<PAGE>
ALBERTO-CULVER
401(K) SAVINGS PLAN
Notes to Financial Statements
December 31, 1999 and 1998
None of the investment funds, other than the CIGNA Charter Guaranteed
Income Fund, guarantee a positive return to the participant. This fund
invests in a diversified portfolio of high quality, fixed income
instruments within CIGNA's general account. Principal and interest are
backed by the underlying assets of CIGNA. Dividend and interest income
received on investments made by the investment funds are reinvested
accordingly in the same funds.
Vesting
Participants are fully vested in the current value of their contributions
and earnings thereon, and become fully vested in the Company
contributions and related earnings credited to their accounts based upon
their years of vesting service as shown in the following table:
<TABLE>
<CAPTION>
Years of Vested
Vesting Service Percentage
------------------- ------------
<S> <C>
Less than 1 0%
1 but less than 2 20
2 but less than 3 40
3 but less than 4 60
4 but less than 5 80
5 or more 100
</TABLE>
Participants who are age 65 or over, die, or become permanently disabled
are automatically 100% vested in the value of Company contributions and
related earnings or losses credited to their account.
Distribution Options
Upon termination of employment, participants generally may elect to
receive the total value of their account attributable to their
contributions, as well as the vested value of their Company contributions
in cash, annual installments, direct rollover, or an annuity according to
the provisions of the Plan. Alternatively, participants may elect to
defer the distribution of their account balance until age 65. Such
deferred benefits remain in the Plan and participate in the earnings and
losses of the investments.
Participant Loans
Participants may borrow against their account balances for periods of one
to five years. In the event the loan is used to purchase a primary
residence, an extended period of time for repayment is allowed.
Participant loans are limited to the lesser of $50,000 or 50% of the
participants' vested account balance and bear interest at a rate of prime
plus 1% at the time the loan is made. Outstanding participant loans are
considered investments of the Plan and repayments of principal and
interest are credited to the borrowing participants' account using his or
her current investment election. At December 31, 1999 and December 31,
1998, interest rates on outstanding loans ranged from 7.25% to 10%.
5 (Continued)
<PAGE>
ALBERTO-CULVER
401(K) SAVINGS PLAN
Notes to Financial Statements
December 31, 1999 and 1998
Forfeitures
Company contributions and earnings thereon forfeited by terminating
employees are used to reduce future Company contributions to the Plan.
The Company will reinstate forfeited balances to the accounts of
employees who rejoin the Company within five years of their termination.
In 1999 and 1998, Company contributions were reduced by forfeiture
amounts of $17,606 and $4,936, respectively.
Administrative Expenses
Administrative fees are paid by the Plan. All other Plan-related expenses
are paid by the Company. Investment management fees are included in the
investment fund yield.
(2) Summary of Significant Accounting Policies
Basis of Accounting
The Company maintains the accounts of the Plan on an accrual basis.
Asset Valuation
The investment assets in the Trust are valued at the quoted closing sale
price on the last business day of the year. Securities traded in over-
the-counter markets and listed securities for which no sale was reported
on the last business day of the year are valued at their last reported
bid price. Participant loans are stated at contract value which
approximates fair value.
Security Transactions and Investment Income
Purchases and sales of investments in the Plan are recorded on a trade
date basis. When investments are sold, the difference between the
original cost (computed on an average cost basis) and the proceeds
received is recorded as a realized gain or loss. Interest and dividend
income are recorded when earned.
Use of Estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires the use of plan administrator
estimates and assumptions that affect the reported amounts of net assets
available for plan benefits at the date of the financial statements and
the changes in net assets available for plan benefits during the
reporting period and related disclosures. Actual results could differ
from these estimates.
(3) Termination of the Plan
It is the intent of the Company that the Plan continue into the future;
however, the Company reserves the right to terminate the Plan. In the event
the Plan is terminated, participants would become fully vested in their
accounts and the assets of the Plan would be distributed to the participants
in proportion to their respective interests in the Plan.
6 (Continued)
<PAGE>
ALBERTO-CULVER
401(K) SAVINGS PLAN
Notes to Financial Statements
December 31, 1999 and 1998
(4) Tax Status
The Plan has received a favorable determination letter from the Internal
Revenue Service, dated December 16, 1996, indicating that the Plan is
qualified under Section 401(a) of the Code and exempt from tax under Section
501(a) of the Code.
(5) Subsequent Events
Effective January 1, 2000, eligible employees of the Alberto-Culver Local
9777 Pension Plan began participating in the Plan. The Plan does not allow
for Company matching contributions to this group.
Effective January 1, 2000, eligible employees of the Plan can contribute up
to 15% of their eligible compensation in whole percentage points to the
Plan, subject to the limitations of the Code.
(6) Other Investment Information
The fair values of investment fund balances which represent five percent or
more of the Plan's net assets as of December 31, 1999 and 1998 are as
follows:
<TABLE>
<CAPTION>
1999 1998
---------- ---------
<S> <C> <C>
CIGNA Charter Guaranteed Income Fund $5,143,757 4,351,306
CIGNA Charter Large Company Stock Index Fund 4,269,067 3,524,523
Fidelity Advisor Equity Growth Fund 5,041,393 3,537,750
Fidelity Advisor Growth Opportunities Fund 2,647,667 2,872,446
Fidelity Advisor Balanced Fund 2,279,179 2,227,847
Warburg Pincus International Equity Fund 1,306,040 795,922
========== =========
</TABLE>
7 (Continued)
<PAGE>
ALBERTO-CULVER
401(k) SAVINGS PLAN
Notes to Financial Statements
December 31, 1999 and 1998
(8) Changes in Net Assets by Fund -- Years Ended December 31, 1999 and December
31, 1998
<TABLE>
<CAPTION>
1999
-------------------------------------------------------------------------------------------------
Warburg
CIGNA CIGNA Fidelity Fidelity Pincus CIGNA CIGNA CIGNA CIGNA
Guarantee Stock Equity Growth Fidelity Int'l Lifetime Lifetime Lifetime Lifetime
Income Index Growth Opportunies Balanced Equity 20 30 40 50
-------- --------- --------- ----------- -------- --------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Additions to net assets
attributed to:
Investment income:
Net appreciation in fair
value of investments $ -- 740,101 1,290,958 92,068 89,337 452,738 7,282 6,425 8,676 13,049
Dividends and Interest 259,830 -- -- -- -- -- -- -- -- --
Interest on participant loans 18,644 8,736 5,698 4,526 3,263 1,974 107 733 -- --
---------- --------- --------- --------- --------- --------- ------ ------ ------ -------
Total investment income 278,474 748,837 1,296,656 96,594 92,600 454,712 7,389 7,158 8,676 13,049
---------- --------- --------- --------- --------- --------- ------ ------ ------ -------
Contributions:
Employer -- -- -- -- -- -- -- -- -- --
Employee 1,083,493 598,169 496,225 431,939 349,018 150,490 42,119 35,931 16,404 18,748
---------- --------- --------- --------- --------- --------- ------ ------ ------ -------
Total contributions 1,083,493 598,169 496,225 431,939 349,018 150,490 42,119 35,931 16,404 18,748
---------- --------- --------- --------- --------- --------- ------ ------ ------ -------
Total additions 1,361,967 1,347,006 1,792,881 528,533 441,618 605,202 49,508 43,089 25,080 31,797
---------- --------- --------- --------- --------- --------- ------ ------ ------ -------
Transfers among funds, net (74,727) (133,786) 87,257 (484,618) (173,601) (28,324) 15,800 (464) 36,796 74,110
---------- --------- --------- --------- --------- --------- ------ ------ ------ -------
Deductions:
Benefits paid to participants (491,484) (466,526) (375,635) (268,149) (216,440) (66,710) (1,384) (370) -- (276)
Administrative fees (3,305) (2,150) (860) (545) (245) (50) (50) (90) -- --
---------- --------- --------- --------- --------- --------- ------ ------ ------ -------
Total deductions (494,789) (468,676) (376,495) (268,694) (216,685) (66,760) (1,434) (460) -- (276)
---------- --------- --------- --------- --------- --------- ------ ------ ------ -------
Net increase (decrease) 792,451 744,544 1,503,643 (224,779) 51,332 510,118 63,874 42,165 61,876 105,631
Net assets available for plan
benefits:
Beginning of year 4,351,306 3,524,523 3,537,750 2,872,446 2,227,847 795,922 -- -- -- --
---------- --------- --------- --------- --------- --------- ------ ------ ------ -------
End of year $5,143,757 4,269,067 5,041,393 2,647,667 2,279,179 1,306,040 63,874 42,165 61,876 105,631
========== ========= ========= ========= ========= ========= ====== ====== ====== =======
</TABLE>
8 (Continued)
<PAGE>
<TABLE>
<CAPTION>
CIGNA CIGNA
Life- Charter CIGNA CIGNA CIGNA Janus Lazard Partic- Contri-
time Bal- Lg Co Mid Co Sm Co World- Int'l Company ipant bution
60 anced Growth Growth Growth wide Equity stock loans Cash receivable Total
----- ------- ------- ------ ------ ------- ------ ------- ------- ------- ---------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Additions to net assets
attributed to:
Investment income:
Net appreciation in fair
value of investments 207 (3,459) 73,272 2,496 33,588 216,144 3,408 1,406 -- -- -- 3,027,696
Dividends and Interest -- -- -- -- -- -- -- 1,226 -- -- -- 261,056
Interest on participant loans -- 194 110 -- 931 97 129 883 -- -- -- 46,025
----- ------- ------- ------ ------ ------- ------ ------- ------- ------- ------- ----------
Total investment income 207 (3,265) 73,382 2,496 34,519 216,241 3,537 3,515 -- -- -- 3,334,777
----- ------- ------- ------ ------ ------- ------ ------- ------- ------- ------- ----------
Contributions:
Employer -- -- -- -- -- -- -- -- -- -- 704,108 704,108
Employee 1,903 29,444 95,352 8,826 18,723 95,355 2,061 25,201 -- -- -- 3,499,401
----- ------- ------- ------ ------ ------- ------ ------- ------- ------- ------- ----------
Total contributions 1,903 29,444 95,352 8,826 18,723 95,355 2,061 25,201 -- -- 704,108 4,203,509
----- ------- ------- ------ ------ ------- ------ ------- ------- ------- ------- ----------
Total additions 2,110 26,179 168,734 11,322 53,242 311,596 5,598 28,716 -- -- 704,108 7,538,286
----- ------- ------- ------ ------ ------- ------ ------- ------- ------- ------- ----------
Transfers among funds, net 2,072 101,785 227,799 7,807 35,350 509,510 9,003 188,964 133,197 (84,555) (449,375) --
----- ------- ------- ------ ------ ------- ------ ------- ------- ------- ------- ----------
Deductions:
Benefits paid to participants -- (170) (15,618) (797) (723) (5,058) (500) (59) (58,829) -- -- (1,968,728)
Administrative fees -- -- (120) -- (80) -- -- (548) -- -- -- (8,043)
----- ------- ------- ------ ------ ------- ------ ------- ------- ------- ------- ----------
Total deductions -- (170) (15,738) (797) (803) (5,058) (500) (607) (58,829) -- -- (1,976,771)
----- ------- ------- ------ ------ ------- ------ ------- ------- ------- ------- ----------
Net increase (decrease) 4,182 127,794 380,795 18,332 87,789 816,048 14,101 217,073 74,368 (84,555) 254,733 5,561,515
Net assets available for plan
benefits:
Beginning of year -- -- -- -- -- -- -- -- 489,427 84,555 449,375 18,333,151
----- ------- ------- ------ ------ ------- ------ ------- ------- ------- ------- ----------
End of year 4,182 127,794 380,795 18,332 87,789 816,048 14,101 217,073 563,795 -- 704,108 23,894,666
===== ======= ======= ====== ====== ======= ====== ======= ======= ======= ======= ==========
</TABLE>
9 (Continued)
<PAGE>
ALBERTO-CULVER
401(k) SAVINGS PLAN
Notes to Financial Statements
December 31, 1999 and 1998
<TABLE>
<CAPTION>
1998
------------------------------------------------------------------------------------------------------
Fidelity Warburg
CIGNA CIGNA Fidelity Growth Pincus Partic- Contri-
Guaranteed Stock Equity Oppor- Fidelity Int'l pant bution
Income Index Growth tunities Balanced Equity loans Cash receivable Total
---------- --------- --------- --------- --------- ------- ------- ------ ---------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Additions to net assets
attributed to:
Investment income:
Net appreciation in fair
value of investments $ -- 705,195 915,980 527,539 281,170 15,589 -- -- -- 2,445,473
Dividends and Interest 217,285 -- -- -- -- -- -- -- -- 217,285
Interest on participant
loans 14,561 8,211 4,906 5,686 3,114 1,857 -- 1,501 -- 39,836
---------- --------- --------- --------- --------- ------- ------- ------ ------- ---------
Total investment income 231,846 713,406 920,886 533,225 284,284 17,446 -- 1,501 -- 2,702,594
---------- --------- --------- --------- --------- ------- ------- ------ ------- ---------
Contributions:
Employer -- -- -- -- -- -- -- -- 449,375 449,375
Employee 903,144 606,596 569,640 443,123 405,261 194,965 -- 78,331 -- 3,201,060
---------- --------- --------- --------- --------- ------- ------- ------ ------- ---------
Total contributions 903,144 606,596 569,640 443,123 405,261 194,965 -- 78,331 449,375 3,650,435
---------- --------- --------- --------- --------- ------- ------- ------ ------- ---------
Total additions 1,134,990 1,320,002 1,490,526 976,348 689,545 212,411 -- 79,832 449,375 6,353,029
---------- --------- --------- --------- --------- ------- ------- ------ ------- ---------
Transfers among funds, net 159,893 (94,985) 149,753 21,099 (551) (42,071) 170,284 (57,715) (305,707) --
---------- --------- --------- --------- --------- ------- ------- ------ ------- ---------
Deductions:
Benefits paid to
participants (262,288) (172,646) (135,211) (155,720) (145,398) (31,977) (24,529) -- -- (927,769)
Administrative fees (3,667) (2,143) (455) (848) (221) (32) -- -- -- (7,366)
---------- --------- --------- --------- --------- ------- ------- ------ ------- ---------
Total deductions (265,955) (174,789) (135,666) (156,568) (145,619) (32,009) (24,529) -- -- (935,135)
---------- --------- --------- --------- --------- ------- ------- ------ ------- ---------
Net increase 1,028,928 1,050,228 1,504,613 840,879 543,375 138,331 145,755 22,117 143,668 5,417,894
Net assets available for
plan benefits:
Beginning of year 3,322,378 2,474,295 2,033,137 2,031,567 1,684,472 657,591 343,672 62,438 305,707 12,915,257
---------- --------- --------- --------- --------- ------- ------- ------ ------- ---------
End of year $ 4,351,306 3,524,523 3,537,750 2,872,446 2,227,847 795,922 489,427 84,555 449,375 18,333,151
========== ========= ========= ========= ========= ======= ======= ====== ======= =========
</TABLE>
10
<PAGE>
ALBERTO-CULVER
401(k) SAVINGS PLAN
Schedule H - Item 4(i) -- Schedule of Assets Held for Investment Purposes
December 31, 1999 and 1998
<TABLE>
<CAPTION>
Market
1999 Cost value
----------------------------------------------- ---------- ---------
<S> <C> <C>
CIGNA Charter Guaranteed Income Fund $5,143,757 5,143,757
CIGNA Charter Large Company Stock Index Fund 2,798,253 4,269,067
Fidelity Advisor Equity Growth Fund 2,683,511 5,041,393
Fidelity Advisor Growth Opportunities Fund 1,826,158 2,647,667
Fidelity Advisor Balanced Fund 1,720,713 2,279,179
Warburg Pincus International Equity Fund 839,056 1,306,040
Loans to participants 563,795 563,795
CIGNA Lifetime 20 56,624 63,874
CIGNA Lifetime 30 36,442 42,165
CIGNA Lifetime 40 53,018 61,876
CIGNA Lifetime 50 93,014 105,631
CIGNA Lifetime 60 3,904 4,182
CIGNA Charter Balanced Fund 130,201 127,794
CIGNA Charter Large Company Stock - Growth II Fund 309,030 380,795
CIGNA Charter Midsize Company Stock - Growth Fund 15,702 18,332
CIGNA Charter Small Company Stock - Growth Fund 62,865 87,789
Janus Worldwide Fund 601,699 816,048
Lazard International Equity Fund 11,561 14,101
Alberto-Culver Company Class B Common Stock 215,240 217,073
</TABLE>
<TABLE>
<CAPTION>
Market
1998 Cost value
----------------------------------------------- ---------- ---------
<S> <C> <C>
CIGNA Charter Guaranteed Income Fund $4,351,306 4,351,306
CIGNA Charter Large Company Stock Index Fund 2,471,402 3,524,523
Fidelity Advisor Equity Growth Fund 2,155,354 3,537,750
Fidelity Advisor Growth Opportunities Fund 1,838,241 2,872,446
Fidelity Advisor Balanced Fund 1,630,425 2,227,847
Warburg Pincus International Equity Fund 770,410 795,922
Loans to participants 489,427 489,427
</TABLE>
See accompanying independent auditors' report.
11
<PAGE>
SALLY BEAUTY 401(k) SAVINGS PLAN
Financial Statements and Supplemental Schedule
December 31, 1999 and 1998
(With Independent Auditors' Report Thereon)
<PAGE>
SALLY BEAUTY
401(k) SAVINGS PLAN
Table of Contents
<TABLE>
<CAPTION>
Page
<S> <C>
Independent Auditors' Report 1
Statements of Net Assets Available for Plan Benefits 2
Statements of Changes in Net Assets Available for Plan Benefits 3
Notes to Financial Statements 4
Supplemental Schedule
Schedule H - Item 4(i) - Schedule of Assets Held for Investment Purposes 11
</TABLE>
<PAGE>
Independent Auditors' Report
To the Plan Administrator of the
Sally Beauty 401(k) Savings Plan:
We have audited the accompanying statements of net assets available for plan
benefits of the Sally Beauty 401(k) Savings Plan (the Plan) as of December 31,
1999 and 1998, and the related statements of changes in net assets available
for plan 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 net assets available for plan benefits of the Plan
as of December 31, 1999 and 1998, and the changes in net assets available for
plan benefits for 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 supplemental schedule of assets
held for investment purposes is presented for the purpose of additional
analysis and is not a required part of the basic financial statements but is
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. This supplemental schedule is the responsibility of the
Plan's management. The supplemental schedule has been subjected to the
auditing procedures applied in the audits of the basic financial statements
and, in our opinion, is fairly stated in all material respects in relation to
the basic financial statements taken as a whole.
/s/ KPMG LLP
April 28, 2000
<PAGE>
SALLY BEAUTY
401(k) SAVINGS PLAN
Statements of Net Assets Available for Plan Benefits
December 31, 1999 and 1998
<TABLE>
<CAPTION>
1999 1998
---------- ----------
<S> <C> <C>
Assets:
Cash $ 42,091 24,328
Investments, at market value:
CIGNA Charter Guaranteed Income Fund 3,567,634 2,762,972
CIGNA Charter Large Company Stock Index Fund 1,749,821 1,075,649
Fidelity Advisor Equity Growth Fund 3,424,054 2,067,830
Fidelity Advisor Growth Opportunities Fund 1,983,989 1,761,264
Fidelity Advisor Balanced Fund 1,543,273 1,254,135
Warburg Pincus International Equity Fund 839,668 531,552
CIGNA Lifetime 20 24,312 --
CIGNA Lifetime 30 46,327 --
CIGNA Lifetime 40 59,961 --
CIGNA Lifetime 50 117,087 --
CIGNA Lifetime 60 4,654 --
CIGNA Charter Balanced Fund 81,972 --
CIGNA Charter Large Company Stock - Growth II Fund 236,059 --
CIGNA Charter Midsize Company Stock - Growth Fund 60,218 --
CIGNA Charter Small Company Stock - Growth Fund 160,472 --
Janus Worldwide Fund 389,125 --
Lazard International Equity Fund 7,410 --
Alberto-Culver Company Class B Common Stock 117,314 --
Loans to participants 378,179 307,429
----------- ----------
Total assets held for investment 14,833,620 9,785,159
Employer contribution receivable 866,673 475,216
----------- ----------
Net assets available for plan benefits $15,700,293 10,260,375
=========== ==========
</TABLE>
See accompanying notes to financial statements.
2
<PAGE>
SALLY BEAUTY
401(k) SAVINGS PLAN
Statements of Changes in Net Assets Available for Plan Benefits
Years ended December 31, 1999 and 1998
<TABLE>
<CAPTION>
1999 1998
----------- ----------
<S> <C> <C>
Additions to net assets attributed to:
Investment income:
Net appreciation in fair value of investments $ 1,758,724 1,234,899
Dividend and interest income 169,105 136,712
Interest on participant loans 28,874 21,524
----------- ----------
Total investment income 1,956,703 1,393,135
Contributions:
Employer 866,673 475,216
Employee 3,654,392 2,321,194
----------- ----------
Total contributions 4,521,065 2,796,410
----------- ----------
Total additions 6,477,768 4,189,545
----------- ----------
Deductions from net assets attributed to:
Benefits paid to participants 1,020,699 1,001,038
Administrative fees 17,151 13,475
----------- ----------
Total deductions 1,037,850 1,014,513
----------- ----------
Net increase 5,439,918 3,175,032
Net assets available for plan benefits at beginning of year 10,260,375 7,085,343
----------- ----------
Net assets available for plan benefits at end of year $15,700,293 10,260,375
=========== ==========
</TABLE>
See accompanying notes to financial statements.
3
<PAGE>
SALLY BEAUTY
401(k) SAVINGS PLAN
Notes to Financial Statements
December 31, 1999 and 1998
(1) Description of the Plan
General
The Sally Beauty 401(k) Savings Plan (the Plan), established on January
1, 1994, is a defined contribution plan available to eligible employees
of Sally Beauty Company (the Company).
The Plan is administered by the Company with the assistance of
Connecticut General Life Insurance Company, a CIGNA Company. The
investment assets of the Plan are held by CG Trust Company (the Trustee).
The following description of the Plan provides only general information.
Information about the Plan's provisions is contained in the Plan
document, which may be obtained from the Company.
Participation
All eligible employees whose customary employment is for at least 1,000
hours within 12 consecutive months, who are not members of a collective
bargaining unit, and are at least 21 years of age may participate in the
Plan on the first day of the month coincident with or following the
completion of 12 months of service. On December 31, 1999, there were
2,006 employees in the Plan.
Contributions
Participants may elect to contribute any amount from 1% to 12% of their
eligible compensation, in whole percentage points, subject to the
limitations of the Internal Revenue Code, as amended (the Code). The
percentage of compensation contributed may be increased or decreased at
the election of the participant any time during the year. All eligible
participant contributions are tax deferred contributions pursuant to a
qualified cash or deferral arrangement subject to the limitations of the
Code. Company contributions to the Plan are based on a discretionary
match on an annual basis. For the Plan years 1999 and 1998, the Company
matched $.50 and $.35, respectively, of each dollar on 4% of eligible
participant compensation.
Investment Options
Effective January 1, 1999, additional investment fund options were added
to the Plan for the purposes of providing a broader selection of
investment options to participants to choose from.
Participants may elect to invest their contributions and any Company
contributions in eighteen investment funds, within seven different asset
classes and the Company's class B common stock. Such asset classes
include; (i) fixed income fund, (ii) balanced fund, (iii) large
capitalization equity fund, (iv) medium capitalization equity fund, (v)
small capitalization equity fund, (vi) global equity fund, and, (vii)
international equity fund.
Participants may invest Company and employee contributions in 1%
increments in the Plan's available fund options and may reallocate their
investments among the available fund options any time during the year.
4
<PAGE>
SALLY BEAUTY
401(k) SAVINGS PLAN
Notes to Financial Statements
December 31, 1999 and 1998
None of the investment funds other than the CIGNA Charter Guaranteed
Income Fund guarantee a positive return to the participant. This fund
invests in a diversified portfolio of high quality, fixed income
instruments within CIGNA's General Account. Principal and interest are
backed by the underlying assets of CIGNA. Dividend and interest income
received on investments made by the investment funds are reinvested
accordingly in the same funds.
Vesting
Participants are fully vested in the current value of their contributions
and earnings thereon, and become fully vested in the Company
contributions and related earnings credited to their accounts based upon
their years of vesting service as shown in the following table:
<TABLE>
<CAPTION>
Years of Vested
Vesting Service Percentage
------------------- ------------
<S> <C>
Less than 1 0%
1 but less than 2 20
2 but less than 3 40
3 but less than 4 60
4 but less than 5 80
5 or more 100
</TABLE>
Participants who are age 65 or over, die, or become permanently disabled
are automatically 100% vested in the value of Company contributions and
related earnings or losses credited to their account.
Distribution Options
Upon termination of employment, participants may elect to receive the
total value of their account attributable to their contributions, as well
as the vested value of their Company contributions in cash, annual
installments, direct rollover, or an annuity according to the provisions
of the Plan. Alternatively, participants may elect to defer the
distribution of their account balance until age 65. Such deferred
benefits remain in the Plan and participate in the earnings and losses of
the investments.
Participant Loans
Participants may borrow against their account balances for periods of one
to five years. In the event the loan is used to purchase a primary
residence, an extended period of time for repayment is allowed.
Participant loans are limited to the lesser of $50,000 or 50% of the
participants' vested account balance and bear interest at a rate of prime
plus 1% at the time the loan is made. Outstanding participant loans are
considered investments of the Plan and repayments of principal and
interest are credited to the borrowing participants' account using his or
her current investment election. At December 31, 1999 and December 31,
1998, interest rates on outstanding loans ranged from 7% to 9.50%.
5
<PAGE>
SALLY BEAUTY
401(k) SAVINGS PLAN
Notes to Financial Statements
December 31, 1999 and 1998
Forfeitures
Company contributions, and earnings theron, forfeited by terminating
employees are used to reduce future Company contributions to the Plan.
The Company will reinstate forfeited balances to the accounts of
employees who rejoin the Company within five years of their termination.
In 1999 and 1998, Company contributions were reduced by forfeiture
amounts of $65,028 and $21,766, respectively.
Administrative Expenses
Administrative fees are paid by the Plan. All other Plan related expenses
are paid by the Company. Investment management fees are included in the
investment fund yields.
(2) Summary of Significant Accounting Policies
Basis of Accounting
The Company maintains the accounts of the Plan on an accrual basis.
Asset Valuation
The investment assets in the trust are valued at the quoted closing sale
price on the last business day of the year. Securities traded in over-
the-counter markets and listed securities for which no sale was reported
on the last business day of the year are valued at their last reported
bid price. Participant loans are stated at contract value which
approximates fair value.
Security Transactions and Investment Income
Purchases and sales of investments in the Plan are recorded on a trade
date basis. When investments are sold, the difference between the
original cost (computed on an average cost basis) and the proceeds
received is recorded as a realized gain or loss. Interest and dividend
income are recorded when earned.
Use of Estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires the use of plan administrator
estimates and assumptions that affect the reported amounts of net assets
available for plan benefits at the date of the financial statements and
the changes in net assets available for plan benefits during the
reporting period and related disclosures. Actual results could differ
from these estimates.
(3) Termination of the Plan
It is the intent of the Company that the Plan continue into the future;
however, the Company reserves the right to terminate the Plan. In the
event the Plan is terminated, participants would become fully vested in
their accounts and the assets of the Plan would be distributed to the
participants in proportion to their respective interests in the Plan.
6
<PAGE>
SALLY BEAUTY
401(k) SAVINGS PLAN
Notes to Financial Statements
December 31, 1999 and 1998
(4) Tax Status
The Plan has received a favorable determination letter from the Internal
Revenue Service, dated June 19, 1997, indicating that the Plan is
qualified under Section 401(a) of the Code and exempt from tax under
Section 501(a) of the Code.
(5) Subsequent Events
Effective January 1, 2000, eligible employees of the Plan can contribute up
to 15% of their eligible compensation in whole percentage points to the
Plan, subject to limitations of the Code.
(6) Other Investment Information
The fair values of investment fund balances which represent five percent or
more of the Plan's net assets as of December 31, 1999 and 1998 are as
follows:
<TABLE>
<CAPTION>
1999 1998
---------- ---------
<S> <C> <C>
CIGNA Charter Guaranteed Income Fund $3,567,634 2,762,972
CIGNA Charter Large Company Stock Index Fund 1,749,821 1,075,649
Fidelity Advisor Equity Growth Fund 3,424,054 2,067,830
Fidelity Advisor Growth Opportunities Fund 1,983,989 1,761,264
Fidelity Advisor Balanced Fund 1,543,273 1,254,135
Warburg Pincus International Equity Fund 839,668 531,552
========== =========
</TABLE>
7
<PAGE>
SALLY BEAUTY
401(k) SAVINGS PLAN
Notes to Financial Statements
December 31, 1999 and 1998
(7) Changes in Net Assets by Fund -- Years ended December 31, 1999 and December
31, 1998
<TABLE>
<CAPTION>
1999
-----------------------------------------------------------------------------------------------------
Warburg
CIGNA CIGNA Fidelity Fidelity Pincus CIGNA CIGNA CIGNA CIGNA
Guaranteed Stock Equity Growth Fidelity Int'l Lifetime Lifetime Lifetime Lifetime
Income Index Growth Opportunities Balanced Equity 20 30 40 50
-------- --------- --------- ------------- -------- --------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Additions to net assets
attributed to:
Investment income:
Net appreciation
(depreciation) in fair
value of investments $ -- 267,346 843,291 62,447 58,410 289,080 2,659 5,560 8,092 4,421
Dividends and Interest 168,512 -- -- -- -- -- -- -- -- --
Interest on participant
loans 10,962 2,488 3,566 3,852 3,847 2,119 233 156 616 199
--------- --------- --------- --------- --------- -------- ------ ------ ------ -------
Total investment
income (loss) 179,474 269,834 846,857 66,299 62,257 291,199 2,892 5,716 8,708 4,620
Contributions:
Employer -- -- -- -- -- -- -- -- -- --
Employee 974,939 489,545 589,459 476,969 356,809 125,016 21,609 26,694 31,694 109,570
--------- --------- --------- --------- --------- -------- ------ ------ ------ -------
Total contributions 974,939 489,545 589,459 476,969 356,809 125,016 21,609 26,694 31,694 109,570
--------- --------- --------- --------- --------- -------- ------ ------ ------ -------
Total additions 1,154,413 759,379 1,436,316 543,268 419,066 416,215 24,501 32,410 40,402 114,190
--------- --------- --------- --------- --------- -------- ------ ------ ------ -------
Transfers among funds,
net 2,575 25,480 107,960 (174,019) (1,142) (45,988) 646 14,057 20,017 5,747
--------- --------- --------- --------- --------- -------- ------ ------ ------ -------
Deductions:
Benefits paid to
participants (345,738) (105,301) (186,483) (144,752) (128,284) (61,915) (735) (132) (367) (2,810)
Administrative fees (6,588) (5,386) (1,569) (1,772) (502) (196) (100) (8) (91) (40)
--------- --------- --------- --------- --------- -------- ------ ------ ------ -------
Total deductions (352,326) (110,687) (188,052) (146,524) (128,786) (62,111) (835) (140) (458) (2,850)
--------- --------- --------- --------- --------- -------- ------ ------ ------ -------
Net increase 804,662 674,172 1,356,224 222,725 289,138 308,116 24,312 46,327 59,961 117,087
Net assets available
for plan benefits:
Beginning of year 2,762,972 1,075,649 2,067,830 1,761,264 1,254,135 531,552 -- -- -- --
--------- --------- --------- --------- --------- ------- ------ ------ ------ -------
End of year $ 3,567,634 1,749,821 3,424,054 1,983,989 1,543,273 839,668 24,312 46,327 59,961 117,087
========= ========= ========= ========= ========= ======= ====== ====== ====== =======
</TABLE>
8 (Continued)
<PAGE>
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------
CIGNA CIGNA
Life- Charter CIGNA CIGNA CIGNA Janus Lazard Partic- Contri-
time Bal- Lg Co Mid Co Sm Co World- Int'l Company ipant bution
60 anced Growth Growth Growth wide Equity stock loans Cash receivable Total
----- ------- ------- ------ ------ ------- ------ ------- ------- ------- ---------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Additions to net assets
attributed to:
Investment income:
Net appreciation
(depreciation) in fair
value of investments 212 (2,734) 43,383 7,739 46,294 117,027 803 4,694 -- -- -- 1,758,724
Dividends and Interest -- -- -- -- -- -- -- 593 -- -- -- 169,105
Interest on participant
loans -- 18 152 15 37 217 25 67 -- 305 -- 28,874
----- ------ ------- ------ ------- ------- ----- ------- ------- ------ ------- ----------
Total investment
income (loss) 212 (2,716) 43,535 7,754 46,331 117,244 828 5,354 -- 305 -- 1,956,703
Contributions:
Employer -- -- -- -- -- -- -- -- -- -- 866,673 866,673
Employee 5,048 71,843 92,816 30,517 49,647 96,853 6,418 58,579 -- 40,367 -- 3,654,392
----- ------ ------- ------ ------- ------- ----- ------- ------- ------ ------- ----------
Total contributions 5,048 71,843 92,816 30,517 49,647 96,853 6,418 58,579 -- 40,367 866,673 4,521,065
----- ------ ------- ------ ------- ------- ----- ------- ------- ------ ------- ----------
Total additions 5,260 69,127 136,351 38,271 95,978 214,097 7,246 63,933 -- 40,672 866,673 6,477,768
----- ------ ------- ------ ------- ------- ----- ------- ------- ------ ------- ----------
Transfers among funds,
net (520) 16,007 101,399 22,061 64,608 187,692 179 53,805 97,561 (22,909) (475,216) --
----- ------ ------- ------ ------- ------- ----- ------- ------- ------ ------- ----------
Deductions:
Benefits paid to
participants (80) (2,921) (1,610) (74) (48) (12,525) (15) (98) (26,811) -- -- (1,020,699)
Administrative fees (6) (241) (81) (40) (66) (139) -- (326) -- -- -- (17,151)
----- ------ ------- ------ ------- ------- ----- ------- ------- ------ ------- ----------
Total deductions (86) (3,162) (1,691) (114) (114) (12,664) (15) (424) (26,811) -- -- (1,037,850)
----- ------ ------- ------ ------- ------- ----- ------- ------- ------ ------- ----------
Net increase 4,654 81,972 236,059 60,218 160,472 389,125 7,410 117,314 70,750 17,763 391,457 5,439,918
Net assets available
for plan benefits:
Beginning of year -- -- -- -- -- -- -- -- 307,429 24,328 475,216 10,260,375
----- ------ ------- ------ ------- ------- ----- ------- ------- ------ ------- ----------
End of year 4,654 81,972 236,059 60,218 160,472 389,125 7,410 117,314 378,179 42,091 866,673 15,700,293
===== ====== ======= ====== ======= ======= ===== ======= ======= ====== ======= ==========
</TABLE>
9 (Continued)
<PAGE>
SALLY BEAUTY
401(k) SAVINGS PLAN
Notes to Financial Statements
December 31, 1999 and 1998
<TABLE>
<CAPTION>
1998
------------------------------------------------------------------------------------------------------
Fidelity Warburg
CIGNA CIGNA Fidelity Growth Pincus Partic- Contri-
Guaranteed Stock Equity Oppor- Fidelity Int'l pant bution
Income Index Growth tunities Balanced Equity loans Cash receivable Total
---------- --------- --------- --------- --------- ------- ------- ------ ---------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Additions to net assets
attributed to:
Investment income:
Net appreciation in fair
value of investments $ -- 205,382 541,440 316,094 155,947 16,036 -- -- -- 1,234,899
Dividends and Interest 136,712 -- -- -- -- -- -- -- -- 136,712
Interest on participant
loans 9,352 1,761 3,079 2,888 2,626 1,811 -- 7 -- 21,524
--------- --------- --------- --------- --------- ------- ------- ------ ------- ----------
Total investment
income 146,064 207,143 544,519 318,982 158,573 17,847 -- 7 -- 1,393,135
Contributions:
Employer -- -- -- -- -- -- -- -- 475,216 475,216
Employee 712,220 291,600 440,019 417,425 286,534 149,121 -- 24,275 -- 2,321,194
--------- --------- --------- --------- --------- ------- ------- ------ ------- ----------
Total contributions 712,220 291,600 440,019 417,425 286,534 149,121 -- 24,275 475,216 2,796,410
--------- --------- --------- --------- --------- ------- ------- ------ ------- ----------
Total additions 858,284 498,743 984,538 736,407 445,107 166,968 -- 24,282 475,216 4,189,545
--------- --------- --------- --------- --------- ------- ------- ------ ------- ----------
Transfers among funds, net 124,950 36,133 7,477 25,353 (31,545) 10,152 92,665 46 (265,231) --
--------- --------- --------- --------- --------- ------- ------- ------ ------- ----------
Deductions:
Benefits paid to
participants (257,725) (90,277) (221,462) (177,871) (123,859) (90,156) (39,688) -- -- (1,001,038)
Administrative fees (5,827) (3,886) (992) (1,895) (677) (198) -- -- -- (13,475)
--------- --------- --------- --------- --------- ------- ------- ------ ------- ----------
Total deductions (263,552) (94,163) (222,454) (179,766) (124,536) (90,354) (39,688) -- -- (1,014,513)
--------- --------- --------- --------- --------- ------- ------- ------ ------- ----------
Net increase 719,682 440,713 769,561 581,994 289,026 86,766 52,977 24,328 209,985 3,175,032
Net assets available for
plan benefits:
Beginning of year 2,043,290 634,936 1,298,269 1,179,270 965,109 444,786 254,452 -- 265,231 7,085,343
--------- --------- --------- --------- --------- ------- ------- ------ ------- ----------
End of year $ 2,762,972 1,075,649 2,067,830 1,761,264 1,254,135 531,552 307,429 24,328 475,216 10,260,375
========= ========= ========= ========= ========= ======= ======= ====== ======= ==========
</TABLE>
10
<PAGE>
SALLY BEAUTY
401(k) SAVINGS PLAN
Schedule H - Item 4(i) -- Schedule of Assets Held for Investment Purposes
December 31, 1999 and 1998
<TABLE>
<CAPTION>
Market
1999 Cost Value
----------------------------------------------- ---------- ---------
<S> <C> <C>
CIGNA Charter Guaranteed Income Fund $3,567,634 3,567,634
CIGNA Charter Large Company Stock Index Fund 1,240,969 1,749,821
Fidelity Advisor Equity Growth Fund 1,946,641 3,424,054
Fidelity Advisor Growth Opportunities Fund 1,476,163 1,983,989
Fidelity Advisor Balanced Fund 1,220,851 1,543,273
Warburg Pincus International Equity Fund 552,473 839,668
CIGNA Lifetime 20 21,722 24,312
CIGNA Lifetime 30 40,867 46,327
CIGNA Lifetime 40 52,555 59,961
CIGNA Lifetime 50 112,758 117,087
CIGNA Lifetime 60 4,460 4,654
CIGNA Charter Balanced Fund 84,594 81,972
CIGNA Charter Large Company Stock - Growth Fund 193,763 236,059
CIGNA Charter Midsize Company Stock - Growth Fund 52,472 60,218
CIGNA Charter Small Company Stock - Growth Fund 114,292 160,472
Janus Worldwide Fund 273,560 389,125
Lazard International Equity Fund 6,607 7,410
Alberto Culver Company Class B Common Stock 111,794 117,314
Loans to participants 378,179 378,179
</TABLE>
<TABLE>
<CAPTION>
Market
1998 Cost Value
----------------------------------------------- ---------- ---------
<S> <C> <C>
CIGNA Charter Guaranteed Income Fund $2,762,972 2,762,972
CIGNA Charter Large Company Stock Index Fund 757,912 1,075,649
Fidelity Advisor Equity Growth Fund 1,306,168 2,067,830
Fidelity Advisor Growth Opportunities Fund 1,181,480 1,761,264
Fidelity Advisor Balanced Fund 930,943 1,254,135
Warburg Pincus International Equity Fund 519,557 531,552
Loans to participants 307,429 307,429
</TABLE>
See accompanying independent auditors' report.
11
