<PAGE>
UNITED STATES
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 [FEE REQUIRED]
For the year ended December 31, 1997
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 [NO FEE REQUIRED]
For the transition period from ____________________ to ____________________
Commission file number: 0-14399
(Name and Address of Plan)
Golden Comprehensive Security Program
888 Seventh Avenue, New York, New York 10106
Registrant's telephone number including area code: (212) 547-6700
(Name and Address of Issuer)
Golden Books Family Entertainment, Inc.
888 Seventh Avenue, New York, New York 10106
This document consists of 23 pages. The Exhibit Index begins on page 21.
<PAGE>
Golden Comprehensive Security Program
Financial Statements and Supplemental Schedule
Years ended December 31, 1997 and 1996
CONTENTS
Report of Independent Auditors...............................................1
Financial Statements
Statements of Net Assets Available for Benefits..............................2
Statements of Changes in Net Assets Available for Benefits...................4
Notes to Financial Statements................................................6
Supplemental Schedule
Line 27(f) Schedule of Nonexempt Transactions..............................15
All funds of the Plan are held in a Master Trust.
As a result, other supplemental schedules are omitted because they are
inapplicable under the Department of Labors Rules and Regulations.
<PAGE>
Report of Independent Auditors
The Plan Administrator
Golden Comprehensive Security Program
We have audited the accompanying statements of net assets available for
benefits of the Golden Comprehensive Security Program (the 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 are
the responsibility of the Plans 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, based on our audits, the financial statements referred to above
present fairly, in all material respects, the net assets available for benefits
of the Plan at December31, 1997 and 1996, and the changes in its net assets
available for benefits for the years then ended, in conformity with generally
accepted accounting principles.
Our audits were conducted for the purpose of forming an opinion on the
financial statements taken as a whole. The accompanying supplemental schedule
of nonexempt transactions for the year ended December 31, 1997, is presented
for purposes of complying with the Department of Labors Rules and Regulations
for Reporting and Disclosure under the Employee Retirement Income Security Act
of 1974 and is not a required part of the basic financial statements. The Fund
Information in the statement of net assets available for benefits and the
statement of changes in net assets available for benefits is presented for
purposes of additional analysis rather than to present the net assets available
for benefits and changes in net assets available for benefits of each fund. The
supplemental schedule and Fund Information have been subjected to the auditing
procedures applied in our audit 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.
Ernst & Young LLP
April 21, 1998
1
<PAGE>
Golden Comprehensive Security Program
Statements of Net Assets Available for Benefits
December 31, 1997
<TABLE>
<CAPTION>
Putnam Putnam
Parent Guaranteed Growth Global Putnam
Company Income and Income Growth Investors
Stock Fund Contracts Fund Fund Fund
---------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS
Investment funds $ -- $ 6,565,105 $ 10,780,593 $ 4,062,595 $ 7,839,005
Guaranteed income contracts -- 10,030,043 -- -- --
Parent Company stock 1,875,556 -- -- -- --
Loans receivable from participants -- -- -- -- --
---------------------------------------------------------------------------
1,875,556 16,595,148 10,780,593 4,062,595 7,839,005
Receivables:
Employer contribution receivable 581,344 4,079 10,599 5,030 8,729
Participant contribution receivable 2,418 13,162 29,928 14,604 29,939
Interfund transfer receivable (payable) 704 3,959 4,791 2,390 3,684
---------------------------------------------------------------------------
Total assets 2,460,022 16,616,348 10,825,911 4,084,619 7,881,357
LIABILITIES
Payable to third parties -- 105,285 -- -- --
---------------------------------------------------------------------------
Net assets available for benefits $ 2,460,022 $ 16,511,063 $ 10,825,911 $ 4,084,619 $ 7,881,357
===========================================================================
</TABLE>
<TABLE>
<CAPTION>
Putnam George
New Putnam
Opportunities Fund Loan
Fund of Boston Fund Total
-------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS
Investment funds $ 13,155,030 $ 4,638,539 $ -- $ 47,040,867
Guaranteed income contracts -- -- -- 10,030,043
Parent Company stock -- -- -- 1,875,556
Loans receivable from participants -- -- 1,099,810 1,099,810
-------------------------------------------------------------
13,155,030 4,638,539 1,099,810 60,046,276
Receivables:
Employer contribution receivable 14,129 3,221 -- 627,131
Participant contribution receivable 44,142 9,837 -- 144,030
Interfund transfer receivable (payable) 9,830 1,482 (26,840) --
-------------------------------------------------------------
Total assets 13,223,131 4,653,079 1,072,970 60,817,437
LIABILITIES
Payable to third parties -- -- -- 105,285
-------------------------------------------------------------
Net assets available for benefits $ 13,223,131 $ 4,653,079 $ 1,072,970 $ 60,712,152
=============================================================
</TABLE>
See accompanying notes.
2
<PAGE>
Golden Comprehensive Security Program
Statements of Net Assets Available for Benefits (continued)
December 31, 1996
<TABLE>
<CAPTION>
Putnam Putnam
Parent Guaranteed Growth Global Putnam
Company Income and Income Growth Investors
Stock Fund Contracts Fund Fund Fund
----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS
Investment funds $ -- $ -- $ 8,698,817 $ 3,753,474 $ 5,508,337
Guaranteed income contracts -- 18,200,293 -- -- --
Parent Company stock 1,084,444 -- -- -- --
Loans receivable from participants -- -- -- -- --
----------------------------------------------------------------------
1,084,444 18,200,293 8,698,817 3,753,474 5,508,337
Receivables:
Employer contribution receivable 835,400 7,000 11,181 7,147 9,120
Participant contribution receivable 5,839 17,453 27,496 18,295 22,631
----------------------------------------------------------------------
Total assets 1,925,683 18,224,746 8,737,494 3,778,916 5,540,088
LIABILITIES
Payable to third parties -- 82,917 -- -- --
----------------------------------------------------------------------
Net assets available for benefits $ 1,925,683 $18,141,829 $ 8,737,494 $ 3,778,916 $ 5,540,088
======================================================================
</TABLE>
<TABLE>
<CAPTION>
Putnam George
New Putnam
Opportunities Fund Loan
Fund of Boston Fund Total
--------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS
Investment funds $11,953,378 $ 4,362,935 $ -- $34,276,941
Guaranteed income contracts -- -- -- 18,200,293
Parent Company stock -- -- -- 1,084,444
Loans receivable from participants -- -- 1,381,186 1,381,186
--------------------------------------------------------
11,953,378 4,362,935 1,381,186 54,942,864
Receivables:
Employer contribution receivable 25,993 4,210 -- 900,051
Participant contribution receivable 66,065 10,890 -- 168,669
--------------------------------------------------------
Total assets 12,045,436 4,378,035 1,381,186 56,011,584
LIABILITIES
Payable to third parties -- -- -- 82,917
--------------------------------------------------------
Net assets available for benefits $12,045,436 $ 4,378,035 $ 1,381,186 $55,928,667
========================================================
</TABLE>
See accompanying notes.
3
<PAGE>
Golden Comprehensive Security Program
Statements of Changes in Net Assets Available for Benefits
Year ended December 31, 1997
<TABLE>
<CAPTION>
Putnam Putnam
Parent Guaranteed Growth Global Putnam
Company Income and Income Growth Investors
Stock Fund Contracts Fund Fund Fund
-------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Additions:
Interest and dividends $ -- $ 1,063,136 $ 1,433,307 $ 734,332 $ 710,030
Appreciation (depreciation) in
fair value of investments (123,406) -- 811,058 (241,089) 1,259,962
-------------------------------------------------------------------------------
Total investment (loss) income (123,406) 1,063,136 2,244,365 493,243 1,969,992
Contributions:
Employer 583,737 50,248 134,098 85,622 104,564
Participants 69,308 267,068 418,193 245,172 321,854
-------------------------------------------------------------------------------
653,045 317,316 552,291 330,794 426,418
-------------------------------------------------------------------------------
Total additions 529,639 1,380,452 2,796,656 824,037 2,396,410
Deductions:
Benefit payments 111,717 2,392,175 1,725,221 556,579 982,566
Administrative expenses 15 23,823 890 365 587
-------------------------------------------------------------------------------
Total deductions 111,732 2,415,998 1,726,111 556,944 983,153
Transfer of assets between funds 116,517 (730,174) 1,001,278 43,409 940,607
Transfer of assets (to)
from other plans (85) 134,954 16,594 (4,799) (12,595)
-------------------------------------------------------------------------------
Net increase (decrease) 534,339 (1,630,766) 2,088,417 305,703 2,341,269
Net assets available for benefits
at beginning of year 1,925,683 18,141,829 8,737,494 3,778,916 5,540,088
-------------------------------------------------------------------------------
Net assets available for benefits
at end of year $ 2,460,022 $ 16,511,063 $ 10,825,911 $ 4,084,619 $ 7,881,357
===============================================================================
</TABLE>
<TABLE>
<CAPTION>
Putnam George
New Putnam
Opportunities Fund Loan
Fund of Boston Fund Total
----------------------------------------------------------------
<S> <C> <C> <C> <C>
Additions:
Interest and dividends $ 286,238 $ 452,898 $ 86,133 $ 4,766,074
Appreciation (depreciation) in
fair value of investments 2,217,494 425,162 -- 4,349,181
----------------------------------------------------------------
Total investment (loss) income 2,503,732 878,060 86,133 9,115,255
Contributions:
Employer 254,634 54,849 -- 1,267,752
Participants 741,574 163,316 -- 2,226,485
----------------------------------------------------------------
996,208 218,165 -- 3,494,237
----------------------------------------------------------------
Total additions 3,499,940 1,096,225 86,133 12,609,492
Deductions:
Benefit payments 1,130,185 867,989 185,658 7,952,090
Administrative expenses 1,203 329 -- 27,212
----------------------------------------------------------------
Total deductions 1,131,388 868,318 185,658 7,979,302
Transfer of assets between funds (1,201,232) 37,321 (207,726) --
Transfer of assets (to)
from other plans 10,375 9,816 (965) 153,295
----------------------------------------------------------------
Net increase (decrease) 1,177,695 275,044 (308,216) 4,783,485
Net assets available for benefits
at beginning of year 12,045,436 4,378,035 1,381,186 55,928,667
----------------------------------------------------------------
Net assets available for benefits
at end of year $ 13,223,131 $ 4,653,079 $ 1,072,970 $ 60,712,152
================================================================
</TABLE>
See accompanying notes.
4
<PAGE>
Golden Comprehensive Security Program
Statements of Changes in Net Assets Available for Benefits (continued)
Year ended December 31, 1996
<TABLE>
<CAPTION>
Putnam Putnam
Parent Guaranteed Growth Global
Conservative Aggressive Company Income and Income Growth
Equity Fund Equity Fund Stock Fund Contracts Fund Fund
-----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Additions:
Interest and dividends $ -- $ -- $ -- $ 1,788,981 $ 694,189 $ 265,571
Appreciation (depreciation) 139,893 182,691 247,024 -- 213,705 (30,268)
-----------------------------------------------------------------------------------------------
Total investment (loss) income 139,893 182,691 247,024 1,788,981 907,894 235,303
Contributions:
Employer 58,942 57,023 868,667 163,665 127,093 75,027
Participants 167,907 168,354 138,058 612,544 344,113 217,450
-----------------------------------------------------------------------------------------------
226,849 225,377 1,006,725 776,209 471,206 292,477
-----------------------------------------------------------------------------------------------
Total additions 366,742 408,068 1,253,749 2,565,190 1,379,100 527,780
Deductions:
Benefit payments 551,444 630,778 110,645 9,432,770 811,379 198,450
Administrative expenses -- -- 11 83,712 340 150
-----------------------------------------------------------------------------------------------
Total deductions 551,444 630,778 110,656 9,516,482 811,719 198,600
Transfer of assets between funds (6,341,355) (5,633,279) 52,214 (21,348,494) 8,175,763 3,449,736
Transfer of assets (to) from
other plans (11,418) (429,655) (5,650) -- (29,670) (29,670)
-----------------------------------------------------------------------------------------------
Net increase (decrease) (6,526,057) (5,855,989) 1,183,889 (28,729,441) 8,737,494 3,778,916
Net assets available for
benefits at beginning of year 6,526,057 5,855,989 741,794 46,871,270 -- --
-----------------------------------------------------------------------------------------------
Net assets available for
benefits at end of year $ -- $ -- $ 1,925,683 $ 18,141,829 $ 8,737,494 $ 3,778,916
===============================================================================================
</TABLE>
<TABLE>
<CAPTION>
Putnam George
Putnam New Putnam
Investors Opportunities Fund Loan
Fund Fund of Boston Fund Total
-------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Additions:
Interest and dividends $ 647,464 $ 94,231 $ 348,590 $ 86,821 $ 3,925,847
Appreciation (depreciation) (99,218) (888,202) 89,123 -- (145,252)
-------------------------------------------------------------------------------
Total investment (loss) income 548,246 (793,971) 437,713 86,821 3,780,595
Contributions:
Employer 96,184 274,558 43,127 -- 1,764,286
Participants 264,357 794,759 124,072 -- 2,831,614
-------------------------------------------------------------------------------
360,541 1,069,317 167,199 -- 4,595,900
-------------------------------------------------------------------------------
Total additions 908,787 275,346 604,912 86,821 8,376,495
Deductions:
Benefit payments 602,287 844,153 361,226 200,016 13,743,148
Administrative expenses 216 566 133 -- 85,128
-------------------------------------------------------------------------------
Total deductions 602,503 844,719 361,359 200,016 13,828,276
Transfer of assets between funds 5,263,474 12,644,479 4,140,132 (402,670) --
Transfer of assets (to) from
other plans (5,650) (29,104) (540,817) -- --
-------------------------------------------------------------------------------
Net increase (decrease) 5,540,088 12,045,436 4,378,035 (544,969) (5,992,598)
Net assets available for
benefits at beginning of year -- -- -- 1,926,155 61,921,265
-------------------------------------------------------------------------------
Net assets available for
benefits at end of year $ 5,540,088 $ 12,045,436 $ 4,378,035 $ 1,381,186 $ 55,928,667
===============================================================================
</TABLE>
See accompanying notes.
5
<PAGE>
Golden Comprehensive Security Program
Notes to Financial Statements
December 31, 1997
1. DESCRIPTION OF THE PLAN
The following description of the Golden Comprehensive Security Program (the
Plan) provides only general information. Participants should refer to the Plan
agreement for a more complete description of the Plans provisions. The Plan is
a contributory defined contribution plan covering all eligible employees of
Golden Books Publishing Company, Inc. (the Company). The Company is a
subsidiary of Golden Books Family Entertainment, Inc. (Parent Company).
Employees of any United States subsidiary of the Parent Company which adopts
the Plan, with the consent of the Company, who meet certain eligibility
requirements are also eligible. The Plan is subject to the provisions of the
Employee Retirement Income Security Act of 1974 (ERISA).
Each employee becomes a participant of the Plan on specified monthly entry
dates after meeting the following requirements:
a. Is a salaried employee or a member of a group or class of employees to whom
the Plan has been extended by the Board of Directors of the Company; and
b. Is not a member of a collective bargaining unit of employees represented by
a collective bargaining representative, except to the extent that an
agreement between the participating company (employer) and such
representative extends the Plan to such unit of employees; and
c. Has completed one year of continuous employment (as defined in the Plan).
Participants may elect to make contributions to the Plan in amounts based on a
percentage of compensation, as defined in the Plan. A participating employees
total contribution is limited to not less than 1% and not more than 16% of
compensation. Income deferral contributions were limited to no more than $9,500
in 1997 and 1996, in accordance with the Internal Revenue Code (IRC).
Each participating employer annually contributes to the Plan an amount equal to
3% of the aggregate compensation of participants entitled to share in the
contribution for that year. Effective January 1, 1998, these contributions are
discretionary based on the Companys performance. In addition, each employer
will contribute for a participant an amount equal to 60% of the first 6% of
income deferral contributions made by, or on
6
<PAGE>
Golden Comprehensive Security Program
Notes to Financial Statements (continued)
1. DESCRIPTION OF THE PLAN (CONTINUED)
behalf of the participant. Employer contributions are reduced by any
forfeitures to be credited for the applicable period. Forfeitures for 1997 and
1996 totaled $98,632 and $122,627, respectively. Amounts credited to a
participants account are designated as Plan Credits.
The Plan is intended to satisfy the requirements under Section 404(c) of ERISA
and, therefore, provides that participants may choose to direct their
contributions and all or part of their account balances among any of the Plans
investment alternatives.
Interest, dividends and net realized and unrealized gains and losses on Plan
investments are allocated to participants accounts monthly based on their
proportionate share of the applicable funds assets.
The employers 3% contribution for each plan year is allocated to the
participants accounts pro rata based on the eligible compensation paid to the
participant by the employer in that year.
If a participants employment terminates for any reason other than retirement,
disability or death, the participant is entitled to receive Plan Credits
resulting from employer contributions which are then vested according to the
following schedule:
<TABLE>
<CAPTION>
Vested Percentage
of Employer
Years of Continuous Employment Contribution Account
------------------------------ --------------------
<S> <C>
Less than 1 0%
1 but less than 2 25
2 but less than 3 50
3 but less than 4 75
4 or more 100
</TABLE>
Balances in a participants income deferral contribution account, participant
contribution account and prior plan account are fully vested at all times.
In the event of a participants retirement, disability or death, Plan Credits
not previously vested become fully vested and are not subject to forfeiture,
and all Plan Credits become immediately distributable in the manner described
below.
7
<PAGE>
Golden Comprehensive Security Program
Notes to Financial Statements (continued)
1. DESCRIPTION OF THE PLAN (CONTINUED)
When a participants employment terminates for any reason, all vested Plan
Credits of the participant may be distributed to the participant or, in the
event of death, to the beneficiary by one or both of the following methods:
a. By a lump-sum distribution of any or all Plan Credits.
b. By applying the cash equivalent of any or all such Plan Credits towards the
purchase of an annuity contract, subject to certain requirements as defined
in the Plan.
A participant may elect to defer distribution of vested Plan Credits until age
70 1/2.
No more often than once per quarter, a participant may elect to withdraw all or
any portion of the net credit balance in the participants contribution account,
prior plan account or rollover account. Participants may borrow, up to certain
limits, against their account balance. The loan must be repaid over a period
not to exceed 60 months unless the proceeds were used for the purchase of a
primary residence in which case it must be repaid within 240 months. Generally,
loan repayments are made by payroll deduction.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING
The accompanying financial statements have been prepared on the accrual basis
of accounting.
INVESTMENTS
The Plan participates in investment accounts under the Golden Books Publishing
Company, Inc. Master Retirement Trust (the Master Trust). Investment income,
realized gains and losses on investment transactions, expenses and investment
appreciation or depreciation on assets held in the Master Trust are allocated
monthly to each fund under the Plan based on its proportionate share of Master
Trust assets. Plan participation in the Master Trust is adjusted monthly for
withdrawals for benefit payments to Plan participants and for contributions
made to the Plan.
8
<PAGE>
Golden Comprehensive Security Program
Notes to Financial Statements (continued)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
VALUATION OF INVESTMENTS
Investments in the Master Trust pooled investment accounts and parent company
stock are valued at fair value based on quoted redemption values on the last
business day of the Plan year. Investments in guaranteed income contracts are
valued at contract value. Contract value represents contributions made under
the contract, plus interest, less benefit payments. The contracts are fully
benefit responsive, as that terminology is defined in AICPA Statement of
Position (SOP) No. 94-4, Reporting of Investment Contracts Held by Health and
Welfare Benefit Plans and Defined Contribution Pension Plans. As such, these
contracts will continue to be carried at contract value. Participant loans are
valued at the remaining unpaid principal amount of the loans, which
approximates fair value.
EXPENSES
Investment management fees are paid by the Plan and other administrative
expenses of the Plan are paid by the Company.
USE OF ESTIMATES
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates that affect the
amounts reported in the financial statements and accompanying notes. Actual
results could differ from those estimates.
9
<PAGE>
Golden Comprehensive Security Program
Notes to Financial Statements (continued)
3. INVESTMENTS IN MASTER TRUST
Assets held by the Master Trust, including a separate identification of those
investments that represent 5% or more of the Master Trusts fair value of its
total investments, at December 31, are as follows:
<TABLE>
<CAPTION>
1997 1996
---------------------------
<S> <C> <C>
Investments in pooled investment funds,
at fair value determined by quoted
market price:
Putnam Funds:
Stable Value Fund $12,485,083 $ --
George Putnam Fund 6,932,703 6,577,962
Growth and Income Fund 15,705,988 13,275,325
Investors Fund 10,171,689 7,510,088
Global Growth Fund 5,453,676 5,362,965
New Opportunities Fund 17,745,419 16,792,971
---------------------------
68,494,558 49,519,311
Less amounts allocated to other plans 21,453,691 15,242,370
---------------------------
$47,040,867 $34,276,941
===========================
</TABLE>
<TABLE>
<CAPTION>
1997 1996
---------------------------
<S> <C> <C>
Investments in guaranteed income
contracts, at contract value:
New York Life Insurance Company
Contract #GA-06701-3-1, 6.40% $ 7,246,737 $ 4,739,091
Continental Assurance Company
Contract #GP-13137-006, 6.05% 5,160,467 5,407,145
Hartford Life Insurance Company
Contract #GA3-10145-AA, 5.94% -- 6,416,004
Other investments 4,413,683 17,904,312
---------------------------
Less amounts allocated to other plans 6,790,844 16,266,259
---------------------------
$10,030,043 $18,200,293
===========================
</TABLE>
10
<PAGE>
Golden Comprehensive Security Program
Notes to Financial Statements (continued)
3. INVESTMENTS IN MASTER TRUST (CONTINUED)
<TABLE>
<CAPTION>
1997 1996
-------------------------
<S> <C> <C>
Investments in the Parent Companys stock,
at fair value determined by quoted
market price $2,610,096 $1,731,958
Less amounts allocated to other plans 734,540 647,514
-------------------------
$1,875,556 $1,084,444
=========================
Loans receivable from participants,
at estimated fair value $2,459,510 $3,027,117
Less amounts allocated to other plans 1,359,700 1,645,931
-------------------------
$1,099,810 $1,381,186
=========================
</TABLE>
Interest and dividend income earned by the Master Trust during 1997 and 1996
was as follows:
<TABLE>
<CAPTION>
1997 1996
-------------------------
<S> <C> <C>
Interest and dividend income earned by the Master Trust $7,233,183 $6,320,426
Less amount allocated to other plans 2,467,109 2,394,579
-------------------------
$4,766,074 $3,925,847
=========================
</TABLE>
11
<PAGE>
Golden Comprehensive Security Program
Notes to Financial Statements (continued)
4. NET APPRECIATION (DEPRECIATION) IN FAIR VALUE OF MASTER TRUST INVESTMENTS
During 1997 and 1996, the Master Trusts investments (including investments
bought and sold, as well as held during the year) appreciated (depreciated) in
value and were allocated to the Plan as follows:
<TABLE>
<CAPTION>
Net Realized
and Unrealized
Appreciation
(Depreciation)
in Fair Value Fair Value at
During the Year End of Year
------------------------------
<S> <C> <C>
YEAR ENDED DECEMBER 31, 1997
Investments at fair value as determined
by quoted market prices:
Putnam Funds:
George Putnam Fund $ 598,549 $ 6,932,703
Growth and Income Fund 1,099,717 15,705,988
Investors Fund 1,610,638 10,171,689
Global Growth Fund (333,851) 5,453,676
New Opportunities Fund 2,944,155 17,745,419
Stable Value Fund 12,485,083
Investments in the Parent Companys stock,
at fair value determined by quoted market price (146,315) 2,610,096
------------------------------
5,772,893 71,104,654
Less amounts allocated to other plans 1,423,712 22,188,231
------------------------------
$ 4,349,181 $ 48,916,423
==============================
</TABLE>
12
<PAGE>
Golden Comprehensive Security Program
Notes to Financial Statements (continued)
4. NET APPRECIATION (DEPRECIATION) IN FAIR VALUE OF MASTER TRUST INVESTMENTS
(CONTINUED)
<TABLE>
<CAPTION>
Net Realized
and Unrealized
Appreciation
(Depreciation)
in Fair Value Fair Value at
During the Year End of Year
------------------------------
<S> <C> <C>
YEAR ENDED DECEMBER 31, 1996
Investments at fair value as determined by
quoted market prices:
Conservative Equity Fund (Evergreen
Total Return Fund) $ 185,083 $ --
Aggressive Equity Fund (Evergreen Fund) 244,399 --
Putnam Funds:
George Putnam Fund 131,763 6,577,962
Growth and Income Fund 325,334 13,275,325
Investors Fund (131,110) 7,510,088
Global Growth Fund (39,872) 5,362,965
New Opportunities Fund (1,213,686) 16,792,971
Investments in the Parent Companys stock,
at fair value determined by quoted
market price
435,108 1,731,958
------------------------------
(62,981) 51,251,269
Less amounts allocated to other plans 82,271 15,889,884
------------------------------
$ (145,252) $ 35,361,385
==============================
</TABLE>
5. INCOME TAX STATUS
The Internal Revenue Service ruled November 24, 1995 that the Plan qualifies
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 Administrative Committee is not aware of any course of action or series of
events that have occurred that might adversely affect the Plans qualified
status.
13
<PAGE>
Golden Comprehensive Security Program
Notes to Financial Statements (continued)
6. PLAN TERMINATION
Although it has not expressed any intent to do so, the Company has the right
under the Plan to discontinue its contributions at any time and to terminate
the Plan subject to the provisions of ERISA. In the event of Plan termination,
participants will become 100 percent vested in their accounts.
14
<PAGE>
Golden Comprehensive Security Program
Employer Idenification Number 39-0975399
Plan Number 008
Line 27(f) -- Schedule of Nonexempt Transactions
Year ended December 31, 1997
<TABLE>
<CAPTION>
DESCRIPTION OF TRANSACTIONS,
RELATIONSHIP TO PLAN, INCLUDING MATURITY DATE,
EMPLOYER, OR OTHER PARTY- RATE OF INTEREST, COLLATERAL,
IDENTITY OF PARTY INVOLVED IN-INTEREST PAR, OR MATURITY VALUE
- ----------------------------------------------------------------------------------------------------
<S> <C> <C>
Golden Books Publishing Company, Inc. Employer/Plan Sponsor Participant contributions of
$144,030 for the December 1997
payroll were deposited
January 26, 1998
</TABLE>
15
<PAGE>
Supplemental Schedule
<PAGE>
SIGNATURE
The Plan. Pursuant to the requirements of the Securities Exchange Act of 1934,
the Plan's trustees have duly caused this annual report to be signed on its
behalf by the undersigned, hereunto duly authorized.
June 23, 1998 Golden Comprehensive Security Program
By: /s/ Philip Galanes
----------------------------------
Philip Galanes
Member of Benefits Plan
Administration Committee
<PAGE>
EXHIBIT INDEX
Exhibit
Number Document Description
- ------ --------------------
23.1 Consent of Ernst & Young LLP
<PAGE>
EXHIBIT 23
CONSENT OF ERNST & YOUNG LLP INDEPENDENT AUDITORS
We consent to the incorporation by reference in the Registration Statement
(Form S-8 No. 33-18692) pertaining to the Golden Comprehensive Security Program
(the Plan) of our report dated April 21, 1998, with respect to the financial
statements and schedules of the Plan included in this Annual Report (Form 11-K)
for the year ended December 31, 1997.
Ernst & Young LLP
Milwaukee, Wisconsin
June 23, 1998
