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 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 1-3523
A. Full title of the Plan:
WESTERN RESOURCES, INC.
EMPLOYEES' 401(K) SAVINGS PLAN
B. Name of issuer of the securities held
pursuant to the plan and the address
of its principal executive office:
WESTERN RESOURCES, INC.
818 Kansas Avenue
Topeka, Kansas 66612
<PAGE>
EIN: 48-0290150
PN: 004
WESTERN RESOURCES, INC.
EMPLOYEES' 401(K) SAVINGS PLAN
FINANCIAL STATEMENTS AS OF DECEMBER 31, 1997 AND 1996
TOGETHER WITH REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
<PAGE>
Report of Independent Public Accountants
To the Investment and Benefits Committee of
Western Resources, Inc. Employees' 401(k) Savings Plan:
We have audited the accompanying statements of net assets available for
benefits of WESTERN RESOURCES, INC. EMPLOYEES' 401(K) SAVINGS PLAN, as of
December 31, 1997 and 1996, and the related statements of changes in net
assets available for benefits for the years then ended. These financial
statements and the schedules referred to below are the responsibility of the
Plan's management. Our responsibility is to express an opinion on these
financial statements and schedules 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 benefits of the Plan as of
December 31, 1997 and 1996, and the changes in net assets available for
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 schedules of assets
held for investment purposes and of loans or fixed income obligations as of
December 31, 1997, and reportable transactions for the year then ended are
presented for the purpose of additional analysis and are not a required part
of the basic 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. The
supplemental schedules 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.
Kansas City, Missouri,
June 26, 1998
<PAGE>
<TABLE>
EIN: 48-0290150
PN: 004
WESTERN RESOURCES, INC.
EMPLOYEES' 401(K) SAVINGS PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
DECEMBER 31, 1997 AND 1996
1997 1996
<S> <C> <C>
ASSETS
INVESTMENTS:
Western Resources, Inc. Investment
Contract Fund $ 62,810,650 $ 64,475,290
Vanguard Windsor Fund 115,488,510 90,616,436
Vanguard Money Market Reserves,
Prime Portfolio 8,419,646 8,128,588
Western Resources, Inc. Common
Stock Fund 68,105,025 51,029,233
Loan Fund 16,912,202 16,228,456
Vanguard Wellington Fund 16,854,010 11,404,547
Vanguard Index Trust 500 Portfolio
Fund 17,913,964 8,804,188
Vanguard PRIMECAP Fund 27,832,793 13,816,671
Fidelity Magellan Fund 34,871,118 28,809,605
Fixed Income Fund 15,165,855 16,601,172
Vanguard International Growth
Portfolio 1,876,580 -
Vanguard Bond Index Fund-Total
Bond Market Portfolio 531,093 -
Total Investments 386,781,446 309,914,186
Other Receivables - 24,529
Interest and Dividends Receivable 864,846 886,090
CONTRIBUTIONS RECEIVABLE:
Participant 259,676 378,317
Employer 72,563 112,246
Total Assets 387,978,531 311,315,368
LIABILITIES
ACCOUNTS PAYABLE 89,854 112,264
NET ASSETS AVAILABLE FOR BENEFITS $387,888,677 $311,203,104
The accompanying notes to financial statements
are an integral part of these statements.
</TABLE>
<PAGE>
<TABLE>
EIN: 48-0290150
PN: 004
WESTERN RESOURCES, INC.
EMPLOYEES' 401(K) SAVINGS PLAN
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
FOR THE YEARS ENDING DECEMBER 31, 1997 AND 1996
1997 1996
<S> <C> <C>
NET ASSETS AVAILABLE FOR
BENEFITS, beginning of year $311,203,104 $268,576,124
ADDITIONS:
INVESTMENT INCOME-
Net Appreciation in Fair Value
of Investments 35,762,049 8,332,893
Interest 5,931,485 6,222,638
Dividends 27,275,525 17,804,491
Total Investment Income 68,969,059 32,360,022
CONTRIBUTIONS:
Participant 15,282,172 15,187,999
Employer 4,463,372 4,510,938
Total Contributions 19,745,544 19,698,937
Total Additions 88,714,603 52,058,959
DEDUCTIONS:
Benefits Paid (12,054,784) (9,721,020)
Other (84,920) (60,154)
Total Deductions (12,139,704) (9,781,174)
TRANSFERS FROM OTHER PLANS 110,674 349,195
NET INCREASE 76,685,573 42,626,980
NET ASSETS AVAILABLE FOR
BENEFITS, end of year $387,888,677 $311,203,104
The accompanying notes to financial statements
are an integral part of these statements.
</TABLE>
<PAGE>
WESTERN RESOURCES, INC.
EMPLOYEES' 401(K) SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997 AND 1996
(1) PLAN DESCRIPTION:
The following brief description of the Western Resources, Inc. (the Company)
Employees' 401(k) Savings Plan (the Plan) is provided for general information
purposes only. Participants should refer to the plan document for more
complete information.
(a) General-- The Plan is a defined contribution plan, designed to
assist eligible employees in establishing a regular savings plan. Prior
to October 1, 1996, substantially all employees were eligible to
participate after one year of service as defined. Effective October 1,
1996, newly hired full time employees may contribute to the Plan on a
pre-tax or after tax basis without Company match, beginning on the first
day of the month following employment. Matching employer contributions
commence after the employee has completed one year of service. Starting
October 1, 1996, the plan also allows employees to increase their
contribution percentages the first of any month from the first of any
quarter. The Plan is subject to the provisions of the Employee
Retirement Income Security Act of 1974 (ERISA), as amended.
(b) Contributions--Effective January 1, 1995, participants of the plan
are allowed to make tax deferred contributions of between 1% and 14% of
earnings subject to certain Internal Revenue Code limits. In addition to
or instead of pre-tax cash contributions, effective January 1, 1995,
participants could elect to make after-tax contributions of between 1%
and 4% of earnings. Cash contributions up to the first 6% of a
participant's earnings are matched 50% by the Company. Participants are
fully vested in all contributions and earnings thereon. The Plan allows
rollover contributions into the Plan.
Active participants were allowed to make additional contributions each
quarter to meet the maximum contribution percentage based on their
annual compensation. These contributions are considered in determining
matching employer contributions. Matching employer contributions are
suspended for a period of six months in the event that a participant
withdrew money from after-tax and/or Company match accounts.
Upon retirement, death, disability or termination of employment,
all vested balances are paid to the participant or the
participant's beneficiaries in accordance with Plan terms.
(c) Participant Accounts--A separate account is maintained for
each participant. Allocations to participant accounts for
employer and employee contributions are made when the
contributions are received by the trustee. Allocations to
participant accounts for the net of interest, dividends, realized
and unrealized changes in investment gains and losses and Plan
expenses are made when such amounts are earned or incurred.
(d) Investment Funds--During 1997 and 1996, participants in the Plan
could elect to have their contributions and the Company's matching
contributions invested in the funds listed below, excluding the Loan
Fund. Allocations between the funds could be made in 10% increments.
Participants could also elect to transfer investments between funds.
The Western Resources, Inc. Investment Contract Fund is a fund which
invests in investment contracts issued by life insurance companies and
commercial banks, as well as other similar types of fixed principal
investments. Principal of these investments, and interest thereon, are
obligations of the issuing companies. Neither Vanguard, the Company, or
the Federal government guarantees either principal or interest in such
investments.
The Vanguard Windsor Fund is a diversified equity fund invested in
equity securities providing dividend and capital appreciation income.
The Vanguard Money Market Reserves - Prime Portfolio is a money market
fund invested in high-quality money market obligations issued by
financial institutions, nonfinancial corporations, U.S. and other
governmental agencies, and repurchase agreements collateralized by such
securities.
The Western Resources, Inc. Common Stock Fund, established October 1,
1988, with assets transferred from The Kansas Power and Light Company
Tax Reduction Act Stock Ownership Plan (TRASOP) and Employee Stock
Ownership Plan of The Gas Service Company (ESOP) upon termination, is
invested primarily in the Company's common stock. Dividends from stock
held in the fund are used to purchase additional shares of Company
stock.
The Loan Fund is a conduit for the distribution and repayment of loan
proceeds. The investments in the fund represent loans due from
participants.
The Vanguard Wellington Fund is a balanced fund which invests in
stocks for potential capital growth and dividend income and in
bonds for current income potential and conservation of principal.
The Vanguard Index Trust-500 Portfolio is a growth and income fund which
seeks to provide long-term capital growth. The Vanguard Index Trust-500
Portfolio attempts to provide investment results that correspond to the
price and yield performance of publicly traded stocks, in the aggregate,
as represented by the Standard & Poor's Composite Stock Price Index.
The Vanguard PRIMECAP Fund is invested entirely in the Vanguard PRIMECAP
Fund, a growth fund seeking long-term growth of capital by investing
principally in a portfolio of common stocks.
The Fidelity Magellan Fund is invested entirely in the Fidelity Magellan
Fund, a diversified equity fund invested in equity securities providing
long-term capital appreciation.
Fixed Income Fund is invested in a Metropolitan Life Insurance
Company Investment Contract. No new monies are allowed to be
deposited in this fund after the transfer of its interest from the
Kansas Gas & Electric 401(k) Plan.
Vanguard International Growth Portfolio invests in the stocks of about
200 companies located in roughly 30 countries around the world.
Vanguard Bond Index Fund-Total Bond Market Portfolio invests in about
1,500 bonds from a variety of industries in an attempt to match the
performance and risk characteristics of the unmanaged Lehman Brothers
Aggregate Bond Index. The investments range from short-term bonds that
mature in about a year to long-term bonds that mature in 20 or 30 years,
giving the Fund an average maturity of about nine years.
The above funds are managed by the Plan's trustee, Vanguard Fiduciary
Trust Company (Vanguard), except the Fidelity Magellan Fund which is
managed by Fidelity Investments Institutional Services Company. All
investments are stated at quoted market values, except as follows.
Investments in Western Resources, Inc. Investment Contract Fund, Fixed
Income Fund, and Vanguard Money Market Reserves, Prime Portfolio are
stated at cost which approximates market value as determined by
Vanguard. Investments in the Loan Fund are stated at face value.
(e) Loans to Participants--Participants are permitted to borrow a
specified portion of the balance in their individual account.
Loan interest rates and terms are established by the Investment
and Benefits Committee and all loans must be approved by that
Committee. Loans are evidenced by promissory notes payable to the
Plan over 1 to 5 years for general purpose loans and up to 30
years for principle residence loans, provided that the age
criteria is met.
(f) Income Taxes--The Plan obtained its latest determination letter on
May 15, 1996, in which the Internal Revenue Service stated that the
Plan, as then designed, was in compliance with the applicable
requirements of the Internal Revenue Code. The Plan has been amended
since receiving the determination letter. The plan administrator
believes the plan is currently designed and being operated in compliance
with the applicable requirements of the Internal Revenue Code.
Therefore, no provision for income taxes is included in these financial
statements.
(g) Plan Termination--The Company is free to terminate the Plan at any
time. Upon termination, all participant accounts remain fully vested.
(2) SIGNIFICANT ACCOUNTING POLICIES:
(a) Basis of Accounting--The Plan's financial statements are maintained
on the accrual basis. Employer and employee contributions are accrued
as the employees' salaries are earned.
(b) 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 reported
amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the financial statements and the reported
amounts of revenues and expenses during the reporting period. Actual
results could differ from those estimates.
(c) Administrative Expenses--All administrative expenses of the Plan
were paid by the Company with the exception of loan administrative
charges which were paid by the participants. The Company has no
continuing obligation to pay these expenses.
(3) INVESTMENTS:
The following investments represent over 5% of net assets available for
benefits at December 31, 1997 and/or 1996:
1997 1996
Metropolitan Life Insurance
Company, investment contract
#14403, general account $ 5,260,425 $12,214,391
Vanguard/Windsor Fund 115,488,510 90,616,436
Western Resources, Inc.
Common Stock 67,941,677 51,021,493
Metropolitan Life Insurance
Company, investment contract
#12651/20105, general account 15,165,269 16,600,616
Fidelity Magellan Fund 34,871,118 28,809,605
Vanguard Money Market Reserves,
Prime Portfolio 18,398,231 20,886,443
Loan Fund 16,912,202 16,228,456
Vanguard PRIMECAP Fund 27,832,793 13,816,671
(4) PLAN AMENDMENTS:
Effective January 1, 1998, the definition of annual compensation was amended
to include merit recognition awards, incentive compensation program payments,
and commissions.
(5) ONEOK TRANSFER:
Effective November 30, 1997, the Company sold substantially all of its gas
operations to ONEOK, Inc., in exchange for a 45 percent ownership interest in
ONEOK, Inc. On November 30, 1997, employees who were participants in Western
Resources, Inc. Employees' 401(k) Savings Plan, as amended, became
Participants in the ONEOK, Inc. KGS 401(k) Thrift Plan (the ONEOK Plan). At
July 31, 1998, the fair market value of those employees' accounts under the
Western Resources Inc. Employees' 401(k) Savings Plan, shall be rolled into
the ONEOK Plan. At December 31, 1997, the fair market value of the assets to
be rolled into the ONEOK Plan are $105,439,102.
(6) FUND INFORMATION:
The following tables present changes in net assets available for benefits in
fund detail.
<PAGE>
<TABLE>
(5) Fund Information (continued):
<CAPTION>
Year Ended December 31, 1997
Money Company
Investment Market Common
Contracts Windsor Reserves Stock Loan
ADDITIONS
<S> <C> <C> <C> <C> <C>
Investment Income:
Net appreciation
in fair value of
investments $ - $ 1,973,881 $ - $19,238,996 $ -
Interest 3,753,286 - - 9,214 1,202,709
Dividends - 18,438,209 463,755 2,473,632 -
3,753,286 20,412,090 463,755 21,721,842 1,202,709
Contributions:
Participant 2,091,401 4,869,903 452,485 1,449,775 -
Employer 625,431 1,416,674 141,268 436,672 -
2,716,832 6,286,577 593,753 1,886,447 -
Total additions 6,470,118 26,698,667 1,057,508 23,608,289 1,202,709
DEDUCTIONS
Benefits paid (3,939,138) (2,496,502) (925,723) (1,899,849) (336,611)
Other 36,518 (14,964) (6,350) (486) -
Total deductions (3,902,620) (2,511,466) (932,073) (1,900,335) (336,611)
Net increase (decrease)
prior to transfers 2,567,498 24,187,201 125,435 21,707,954 866,098
TRANSFERS
Interfund transfers (4,238,039) 661,562 165,623 (4,632,238) (182,352)
Transfers-other plans 5,901 23,311 - 76 -
Total transfers (4,232,138) 684,873 165,623 (4,632,162) (182,352)
Net increase (decrease) (1,664,640) 24,872,074 291,058 17,075,792 683,746
Net assets available
for benefits:
Beginning of year 64,475,290 90,616,436 8,128,588 51,029,233 16,228,456
End of year $62,810,650 $115,488,510 $ 8,419,646 $68,105,025 $16,912,202
(Continued)
</TABLE>
<PAGE>
<TABLE>
(5) Fund Information (continued):
<CAPTION>
Year Ended December 31, 1997
Index
Trust-500 Fixed
Wellington Portfolio PRIMECAP Magellan Income
ADDITIONS
<S> <C> <C> <C> <C> <C>
Investment Income:
Net appreciation
in fair value of
investments $1,509,046 $ 3,351,041 $4,657,162 $ 5,077,353 $ -
Interest - - - - 930,544
Dividends 1,398,675 350,412 983,300 2,236,461 -
2,907,721 3,701,453 5,640,462 7,313,814 930,544
Contributions:
Participant 1,455,343 1,258,957 1,733,889 1,545,792 -
Employer 426,645 357,047 482,807 462,662 -
1,881,988 1,616,004 2,216,696 2,008,454 -
Total additions 4,789,709 5,317,457 7,857,158 9,322,268 930,544
DEDUCTIONS
Benefits paid (365,656) (283,550) (472,983) (543,749) (773,229)
Other (10,430) (500) (735) (1,472) 4,093
Total deductions (376,086) (284,050) (473,718) (545,221) (769,136)
Net increase (decrease)
prior to transfers 4,413,623 5,033,407 7,383,440 8,777,047 161,408
TRANSFERS
Interfund transfers 1,034,591 4,057,226 6,618,374 (2,761,029) (1,596,725)
Transfers-other plans 1,249 19,143 14,308 45,495 -
Total transfers 1,035,840 4,076,369 6,632,682 (2,715,534) (1,596,725)
Net increase (decrease) 5,449,463 9,109,776 14,016,122 6,061,513 (1,435,317)
Net assets available
for benefits:
Beginning of year 11,404,547 8,804,188 13,816,671 28,809,605 16,601,172
End of year $16,854,010 $17,913,964 $27,832,793 $34,871,118 $15,165,855
(continued)
</TABLE>
<PAGE>
<TABLE>
(5) Fund Information (continued):
<CAPTION>
Year Ended December 31, 1997
International Total
Growth Bond
Portfolio Market Other Total
ADDITIONS
<S> <C> <C> <C> <C>
Investment Income:
Net appreciation in fair
value of investments $ (59,374) $ 13,944 $ - $35,762,049
Interest - - 35,732 5,931,485
Dividends 81,931 20,036 829,114 27,275,525
22,557 33,980 864,846 68,969,059
Contributions:
Participant 140,064 24,888 259,675 15,282,172
Employer 35,863 5,739 72,564 4,463,372
175,927 30,627 332,239 19,745,544
Total additions 198,484 64,607 1,197,085 88,714,603
DEDUCTIONS
Benefits paid (17,746) (48) - (12,054,784)
Other (740) - (89,854) (84,920)
Total deductions (18,486) (48) (89,854) (12,139,704)
Net increase prior to transfers 179,998 64,559 1,107,231 76,574,899
TRANSFERS
Interfund transfers 1,695,391 466,534 (1,288,918) -
Transfers-other plans 1,191 - - 110,674
Total transfers 1,696,582 466,534 (1,288,918) 110,674
Net increase (decrease) 1,876,580 531,093 (181,687) 76,685,573
Net assets available for benefits:
Beginning of year - - 1,288,918 311,203,104
End of year $1,876,580 $531,093 $1,107,231 $387,888,677
</TABLE>
<PAGE>
<TABLE>
(5) Fund Information (continued):
<CAPTION>
Year Ended December 31, 1996
Money Company
Investment Market Common
Contracts Windsor Reserves Stock Loan
ADDITIONS
<S> <C> <C> <C> <C> <C>
Investment Income:
Net appreciation
(depreciation) in fair
value of investments $ - $10,062,095 $ - $(3,783,983) $ -
Interest 3,780,296 - 369,912 11,216 1,017,792
Dividends - 8,660,885 - 2,563,118 -
3,780,296 18,722,980 369,912 (1,209,649) 1,017,792
Contributions:
Participant 2,302,303 4,775,895 428,544 1,680,865 -
Employer 703,075 1,398,776 140,738 500,479 -
3,005,378 6,174,671 569,282 2,181,344 -
Total additions 6,785,674 24,897,651 939,194 971,695 1,017,792
DEDUCTIONS
Benefits paid (3,420,750) (2,470,027) (298,645) (1,245,537) (244,282)
Other 29,289 (12,820) (5,200) (940) -
Total deductions (3,391,461) (2,482,847) (303,845) (1,246,477) (244,282)
Net increase (decrease)
prior to transfers 3,394,213 22,414,804 635,349 (274,782) 773,510
TRANSFERS
Interfund transfers (2,372,193) (933,908) 869,564 249,807 1,753,927
Transfers-other plans 6,820 50,301 72,878 34,583 -
Total transfers (2,365,373) (883,607) 942,442 284,390 1,753,927
Net increase (decrease) 1,028,840 21,531,197 1,577,791 9,608 2,527,437
Net assets available
for benefits:
Beginning of year 63,446,450 69,085,239 6,550,797 51,019,625 13,701,019
End of year $64,475,290 $90,616,436 $ 8,128,588 $51,029,233 $16,228,456
(Continued)
</TABLE>
<PAGE>
<TABLE>
(5) Fund Information (continued):
<CAPTION>
Year Ended December 31, 1996
Index
Trust-500 Fixed
Wellington Portfolio PRIMECAP Magellan Income
ADDITIONS
<S> <C> <C> <C> <C> <C>
Investment Income:
Net appreciation
(depreciation) in fair
value of investments $ 595,109 $ 1,131,350 $1,569,703 $(1,241,381) $ -
Interest - - - - 1,011,334
Dividends 870,404 167,541 401,350 4,287,191 -
1,465,513 1,298,891 1,971,053 3,045,810 1,011,334
Contributions:
Participant 1,419,079 873,678 1,488,955 1,840,363 -
Employer 422,321 262,124 421,761 549,418 -
1,841,400 1,135,802 1,910,716 2,389,781 -
Total additions 3,306,913 2,434,693 3,881,769 5,435,591 1,011,334
DEDUCTIONS
Benefits paid (430,212) (178,761) (177,898) (484,640) (770,268)
Other (8,060) (540) (700) - 26,552
Total deductions (438,272) (179,301) (178,598) (484,640) (743,716)
Net increase (decrease)
prior to transfers 2,868,641 2,255,392 3,703,171 4,950,951 267,618
TRANSFERS
Interfund transfers 1,272,883 2,526,326 1,281,960 (1,800,373) (1,785,219)
Transfers-other plans 20,523 53,730 35,800 74,560 -
Total transfers 1,293,406 2,580,056 1,317,760 (1,725,813) (1,785,219)
Net increase (decrease) 4,162,047 4,835,448 5,020,931 3,225,138 (1,517,601)
Net assets available
for benefits:
Beginning of year 7,242,500 3,968,740 8,795,740 25,584,467 18,118,773
End of year $11,404,547 $ 8,804,188 $13,816,671 $28,809,605 $16,601,172
(continued)
</TABLE>
<PAGE>
<TABLE>
(5) Fund Information (continued):
<CAPTION>
Year Ended December 31, 1996
Other Total
ADDITIONS
<S> <C> <C>
Investment Income:
Net appreciation
(depreciation) in fair
value of investments $ - $ 8,332,893
Interest 32,088 6,222,638
Dividends 854,002 17,804,491
886,090 32,360,022
Contributions:
Participant 378,317 15,187,999
Employer 112,246 4,510,938
490,563 19,698,937
Total additions 1,376,653 52,058,959
DEDUCTIONS
Benefits paid - (9,721,020)
Other (87,735) (60,154)
Total deductions (87,735) (9,781,174)
Net increase (decrease)
prior to transfers 1,288,918 42,277,785
TRANSFERS
Interfund transfers (1,062,774) -
Transfers-other plans - 349,195
Total transfers (1,062,774) 349,195
Net increase (decrease) 226,144 42,626,980
Net assets available
for benefits:
Beginning of year 1,062,774 268,576,124
End of year $ 1,288,918 $311,203,104
</TABLE>
<PAGE>
<TABLE>
EIN: 48-0290150
PN: 004
PAGE 1 OF 2
WESTERN RESOURCES, INC.
EMPLOYEES' 401(K) SAVINGS PLAN
LINE 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 1997
<CAPTION>
Number Current
Description Of Units Cost Value
<S> <C> <C> <C>
AIG Life, investment
contract #944 4,253,361 $4,253,361 $4,253,361
Deutsche Bank, investment
contract #1 general account 4,442,659 4,442,659 4,442,659
Deutsche Bank, investment
contract #2, general account 4,401,947 4,401,947 4,401,947
John Hancock Mutual Life
Insurance Company, investment
contract #7307, general
account 8,464,505 8,464,505 8,464,505
Metropolitan Life Insurance
Company, investment contract
#14403, general account 5,260,425 5,260,425 5,260,425
Morgan Guaranty, investment
contract #96-17, general
account 2,155,129 2,155,129 2,155,129
Morgan Guaranty, investment
contract #96-18, general
account 2,134,305 2,134,305 2,134,305
NatWest Markets Sam, investment
contract #185A 6,220,645 6,220,645 6,220,645
New York Life Insurance Company,
investment contract #30313 4,112,040 4,112,040 4,112,040
Principal Mutual Life Insurance
Company, investment contract
#418026 4,811,882 4,811,882 4,811,882
Union Bank of Switzerland,
investment contract #2127 6,739,101 6,739,101 6,739,101
Metropolitan Life Insurance
Company, Group Annuity
Contract #20105, general
account 15,165,269 15,165,269 15,165,269
*Vanguard/Windsor Fund 6,801,443 103,610,674 115,488,510
*Vanguard Money Market
Reserves, Prime Portfolio 18,398,231 18,398,231 18,398,231
</TABLE>
<PAGE>
<TABLE>
EIN: 48-0290150
PN: 004
PAGE 2 OF 2
WESTERN RESOURCES, INC.
EMPLOYEES' 401(K) SAVINGS PLAN
LINE 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 1997
<CAPTION>
Number Current
Description Of Units Cost Value
<S> <C> <C> <C>
*Vanguard/PRIMECAP Fund 703,381 $21,415,421 $27,832,793
*Vanguard Index Trust 500
Portfolio Fund 198,889 13,391,982 17,913,964
*Vanguard/Wellington Fund 572,292 14,289,445 16,854,010
*Fidelity Magellan Fund 366,024 27,703,271 34,871,118
*Vanguard International Growth
Portfolio 114,495 1,955,018 1,876,580
*Vanguard Bond Index Fund-Total
Bond Market Portfolio 52,636 520,178 531,093
*Western Resources, Inc.
Common Stock 1,580,039 37,566,355 67,941,677
*Participant Loans, at interest
rates ranging from 14% to 6% 16,912,202 16,912,202
Total Investments $323,924,045 $386,781,446
*Investment with party-in-interest to the Plan.
</TABLE>
<PAGE>
<TABLE>
EIN: 48-0290150
PN: 004
Page 1 of 2
WESTERN RESOURCES, INC.
EMPLOYEES' 401(K) SAVINGS PLAN
LINE 27b - SCHEDULE OF LOANS OR FIXED INCOME OBLIGATIONS
DECEMBER 31, 1997
<CAPTION>
Amount Received Unpaid
Original During Reporting Balance
Amount Year at End Amount Overdue
Identity and Address of Obligator of Loan Principal Interest of Year Principal Interest
<S> <C> <C> <C> <C> <C> <C>
Jarus, Keith J. $6,800.00 $ 765.99 $ 185.04 $ 2,693.84 $ 265.55 $ 51.46
301 N. Madison
Brainard, NE 68521
###-##-####
Detailed Description of Loan - General purpose loan; dated 11/30/94; 7.9% interest rate; 96
successive semi-monthly installments.
Action to be Taken - The employee will be given the option to pay off the loan. If not paid, the
loan will be defaulted in 1998 and will be treated as a 1998 distribution to the participant.
Weeks, Roger Waldeen $20,000.00 $1,665.49 $ 541.11 $14,620.65 $2,044.47 $563.33
441 E. Webster
Louisville, KS 66450
###-##-####
Detailed Description of Loan - General purpose loan; dated 10/16/95; 7.6% interest rate, 120
successive semi-monthly installments.
Action to be Taken - The employee will be given the option to pay off the loan. If not paid, the
loan will be defaulted in 1998 and will be treated as a 1998 distribution to the participant.
Weeks, Roger Waldeen $10,000.00 $ 557.97 $ 240.67 $ 9,442.03 $ 863.14 $334.82
441 E. Webster
Louisville, KS 66450
###-##-####
Detailed Description of Loan - General purpose loan, dated 01/28/97; 7.4% interest rate, 120
semi-monthly successive installments, respectively.
Action to be Taken - The employee will be given the option to pay off the loan. If not paid, the
loan will be defaulted in 1998 and will be treated as a 1998 distribution to the participant.
Williams, Cynthia A. $ 8,100.00 $ 858.36 $ 84.72 $ 2,265.67 $ 885.34 $ 57.74
2227 North 88th
Kansas City, KS 66109
###-##-####
Detailed Description of Loan - General purpose loan; dated 09/23/93, 6.2% interest rate, 120
successive monthly installments.
Action to be Taken - The employee will be given the option to pay off the loan. If not paid, the
loan will be defaulted in 1998 and will be treated as a 1998 distribution to the participant.
Powers, Quintein E. $30,000.00 $3,437.05 $1,399.27 $26,145.26 $1,783.96 $634.20
420 E. Hickory, #0-107
Hesston, KS 67062
###-##-####
Detailed Description of Loan - General purpose loan; dated 11/14/96, 7.5% interest rate, 120
successive semi-monthly installments.
Action to be Taken - The employee will be given the option to pay off the loan. If not paid, the
loan will be defaulted in 1998 and will be treated as a 1998 distribution to the participant.
Whitebread, Glenn W. $15,000.00 $1,271,09 $ 184.31 $ 6,432.89 $1,835.52 $202.04
420 South Elmore, Box 102
Lecompton, KS 66050
###-##-####
Detailed Description of Loan - General purpose loan; dated 05/05/94, 6.2% interest rate, 120
successive semi-monthly installments.
Action to be Taken - The employee will be given the option to pay off the loan. If not paid, the
loan will be defaulted in 1998 and will be treated as a 1998 distribution to the participant.
</TABLE>
<PAGE>
<TABLE>
EIN: 48-0290150
PN: 004
Page 2 of 2
WESTERN RESOURCES, INC.
EMPLOYEES' 401(K) SAVINGS PLAN
LINE 27b - SCHEDULE OF LOANS OR FIXED INCOME OBLIGATIONS
DECEMBER 31, 1997
<CAPTION>
Amount Received Unpaid
Original During Reporting Balance
Amount Year at End Amount Overdue
Identity and Address of Obligator of Loan Principal Interest of Year Principal Interest
<S> <C> <C> <C> <C> <C> <C>
Whitebread, Glenn W. $24,000.00 $1,001.23 $436.31 $22,998.77 $2,409.40 $944.86
420 South Elmore, Box 102
Lecompton, KS 66050
###-##-####
Detailed Description of Loan - General purpose loan; dated 01/17/97, 7.4% interest rate, 120
successive semi-monthly installments.
Action to be Taken - The employee will be given the option to pay off the loan. If not paid, the
loan will be defaulted in 1998 and will be treated as a 1998 distribution to the participant.
Elliott, Larry C. $17,500.00 $1,594.15 $111.95 $ 3,317.44 $2,304.37 $ 84.17
401 S. Mitchell
Warrensburg, MO 64093
###-##-####
Detailed Description of Loan - General purpose loan; dated 03/26/93, 6.4% interest rate, 120
successive semi-monthly installments.
Action to be Taken - The employee will be given the option to pay off the loan. If not paid, the
loan will be defaulted in 1998 and will be treated as a 1998 distribution to the participant.
</TABLE>
<PAGE>
<TABLE>
EIN: 48-0290150
PN: 004
WESTERN RESOURCES, INC.
EMPLOYEES' 401(K) SAVINGS PLAN
LINE 27d - SCHEDULE OF REPORTABLE TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 31, 1997
<CAPTION>
Type of Dollar Net Gain
Investment Transaction Number Value (1) (Loss)
<S> <C> <C> <C> <C>
Vanguard Money Market Purchases 195 $ 9,763,510 $ -
Reserves, Prime Sales 204 9,472,452 -
Portfolio
Vanguard/Windsor Fund Purchases 223 34,392,584 -
Sales 243 11,494,391 2,101,357
Western Resources, Inc. Purchases 159 11,539,034 -
Common Stock Fund* Sales 231 13,702,238 2,247,930
Vanguard/PRIMECAP Fund Purchases 227 16,130,883 -
Sales 195 6,771,923 594,745
Western Resources, Inc.
Investment Contract Purchases 220 12,652,956 -
Fund Sales 240 14,316,696 -
(1) Amount shown in this column is cost of purchases or proceeds from sales.
* This fund consists of two investments, Western Resources, Inc. Common
Stock and Vanguard Money Market Reserves, Prime Portfolio. The Trustee
is unable to split the transaction detail between the two investments.
</TABLE>
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Investment and Benefits Committee for the Western Resources Inc. Employees'
401(K) Savings Plan has duly caused this annual report to be signed on its
behalf by the undersigned hereunto duly authorized.
WESTERN RESOURCES, INC.
EMPLOYEES' 401(K) SAVINGS PLAN
By:
Signature Title Date
/s/ S. L. Kitchen Chairman June 26, 1998
/s/ Ira W. McKee, Jr. Member June 26, 1998
/s/ John K. Rosenberg Member June 26, 1998
/s/ Kenneth T. Wymore Member June 26, 1998
<PAGE>
EXHIBIT INDEX
Exhibit
Number Description of Documents Page
23 Consent of Independent Public Accountants
(filed electronically)
Exhibit 23
CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS
As independent public accountants, we hereby consent to the incorporation by
reference of our report dated June 26, 1998, included in the Form 11-K for the
Western Resources, Inc. Employees' 401(k) Savings Plan, into the Company's
previously filed Registration Statements File Nos. 33-49467, 33-49553,
333-02023, 33-50069, 33-62375, and 333-26115 of Western Resources, Inc. on
Form S-3; Nos. 333-02711, 333-56369 and 333-56369-01 of Western Resources,
Inc. on Form S-4; Nos. 33-57435, 333-13229, 333-06887, 333-20393, and
333-20413 of Western Resources, Inc. on Form S-8, and No. 33-50075 of Kansas
Gas and Electric Company on Form S-3.
Arthur Andersen LLP
Kansas City, Missouri,
June 26, 1998
