<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 Retirement Savings 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..............................13
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 Retirement Savings Program
We have audited the accompanying statements of net assets available for
benefits of Golden Retirement Savings 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 Retirement Savings Program
Statements of Net Assets Available for Benefits
December 31, 1997
<TABLE>
<CAPTION>
Parent Putnam Putnam
Company Guaranteed Growth Global Putnam
Stock Income and Income Growth Investors
Fund Contracts Fund Fund Fund
--------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS
Investment funds $ -- $ 5,919,978 $4,925,395 $1,391,081 $2,332,684
Guaranteed income contracts -- 6,790,844 -- -- --
Parent Company stock 734,540 -- -- -- --
Loans receivable from participants -- -- -- -- --
--------------------------------------------------------------------------
734,540 12,710,822 4,925,395 1,391,081 2,332,684
Receivables:
Employer contribution receivable 1,046 7,973 7,195 2,391 3,129
Participant contribution receivable 3,718 27,897 21,706 7,102 9,081
Interfund transfer receivable (payable) 712 9,147 6,972 2,688 2,428
--------------------------------------------------------------------------
5,476 45,017 35,873 12,181 14,638
--------------------------------------------------------------------------
Total assets 740,016 12,755,839 4,961,268 1,403,262 2,347,322
LIABILITIES
Payable to third parties -- 11,304 -- -- --
--------------------------------------------------------------------------
Net assets available for benefits $740,016 $12,744,535 $4,961,268 $1,403,262 $2,347,322
==========================================================================
</TABLE>
<TABLE>
<CAPTION>
George
Putnam New Putnam
Opportunities Fund of Loan
Fund Boston Fund Total
------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS
Investment funds $4,590,389 $2,294,164 $ -- $21,453,691
Guaranteed income contracts -- -- -- 6,790,844
Parent Company stock -- -- -- 734,540
Loans receivable from participants -- -- 1,359,700 1,359,700
------------------------------------------------------------
4,590,389 2,294,164 1,359,700 30,338,775
Receivables:
Employer contribution receivable 7,810 2,706 32,250
Participant contribution receivable 23,052 8,507 101,063
Interfund transfer receivable (payable) 6,390 1,663 (30,000)
------------------------------------------------------------
37,252 12,876 (30,000) 133,313
------------------------------------------------------------
Total assets 4,627,641 2,307,040 1,329,700 30,472,088
LIABILITIES
Payable to third parties -- -- -- 11,304
------------------------------------------------------------
Net assets available for benefits $4,627,641 $2,307,040 $1,329,700 $30,460,784
============================================================
</TABLE>
See accompanying notes.
2
<PAGE>
Golden Retirement Savings Program
Statements of Net Assets Available for Benefits (continued)
December 31, 1996
<TABLE>
<CAPTION>
Parent Putnam Putnam
Company Guaranteed Growth Global Putnam
Stock Income and Income Growth Investors
Fund Contracts Fund Fund Fund
------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS
Investment funds $ -- $ -- $3,726,864 $1,184,321 $1,586,802
Guaranteed income contracts -- 14,356,281 -- -- --
Parent Company stock 554,198 -- -- -- --
Loans receivable from participants -- -- -- -- --
------------------------------------------------------------------------
554,198 14,356,281 3,726,864 1,184,321 1,586,802
Receivables:
Employer contribution receivable 1,524 13,059 8,533 3,770 3,444
Participant contribution receivable 4,440 36,949 25,089 10,755 10,036
------------------------------------------------------------------------
5,964 50,008 33,622 14,525 13,480
------------------------------------------------------------------------
Total assets 560,162 14,406,289 3,760,486 1,198,846 1,600,282
LIABILITIES
Payable to third parties -- 63,352 -- -- --
------------------------------------------------------------------------
Net assets available for benefits $560,162 $14,342,937 $3,760,486 $1,198,846 $1,600,282
========================================================================
</TABLE>
<TABLE>
<CAPTION>
George
Putnam New Putnam
Opportunities Fund of Loan
Fund Boston Fund Total
-------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS
Investment funds $3,873,179 $1,808,358 $ -- $12,179,524
Guaranteed income contracts -- -- -- 14,356,281
Parent Company stock -- -- -- 554,198
Loans receivable from participants -- -- 1,290,894 1,290,894
-------------------------------------------------------------
3,873,179 1,808,358 1,290,894 28,380,897
Receivables:
Employer contribution receivable 11,168 3,439 -- 44,937
Participant contribution receivable 33,221 10,560 -- 131,050
-------------------------------------------------------------
44,389 13,999 -- 175,987
-------------------------------------------------------------
Total assets 3,917,568 1,822,357 1,290,894 28,556,884
LIABILITIES
Payable to third parties -- -- -- 63,352
-------------------------------------------------------------
Net assets available for benefits $3,917,568 $1,822,357 $1,290,894 $28,493,532
=============================================================
</TABLE>
See accompanying notes.
3
<PAGE>
Golden Retirement Savings 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 $ -- $ 856,085 $ 642,457 $ 256,778 $ 211,638
Appreciation (depreciation)
in the fair value of
investments (22,909) -- 288,659 (92,762) 350,676
----------------------------------------------------------------------
Total investment (loss) income (22,909) 856,085 931,116 164,016 562,314
Contributions:
Employer 16,965 125,877 97,508 41,160 41,577
Participants 54,232 392,872 299,714 126,777 129,046
----------------------------------------------------------------------
71,197 518,749 397,222 167,937 170,623
----------------------------------------------------------------------
Total additions 48,288 1,374,834 1,328,338 331,953 732,937
Deductions:
Benefit payments 37,442 2,438,127 292,292 105,404 86,241
Administrative expenses 8 15,118 1,310 569 618
----------------------------------------------------------------------
Total deductions 37,450 2,453,245 293,602 105,973 86,859
Transfer of assets (to)
from other funds 168,931 (386,001) 182,658 (26,378) 88,328
Transfer of assets (to)
from other plans 85 (133,990) (16,612) 4,814 12,634
----------------------------------------------------------------------
Net increase (decrease) 179,854 (1,598,402) 1,200,782 204,416 747,040
Net assets available for
benefits at beginning
of year 560,162 14,342,937 3,760,486 1,198,846 1,600,282
----------------------------------------------------------------------
Net assets available for
benefits at end of year $740,016 $12,744,535 $4,961,268 $1,403,262 $2,347,322
======================================================================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Putnam George
New Putnam
Opportunities Fund of Loan
Fund Boston Fund Total
--------------------------------------------------------
<S> <C> <C> <C> <C>
Additions:
Interest and dividends $ 101,950 $ 215,338 $ 89,959 $ 2,374,205
Appreciation (depreciation)
in the fair value of
investments 726,661 173,387 -- 1,423,712
--------------------------------------------------------
Total investment (loss) income 828,611 388,725 89,959 3,797,917
Contributions:
Employer 122,255 39,511 -- 484,853
Participants 376,252 127,354 -- 1,506,247
--------------------------------------------------------
498,507 166,865 -- 1,991,100
--------------------------------------------------------
Total additions 1,327,118 555,590 89,959 5,789,017
Deductions:
Benefit payments 318,708 140,026 230,519 3,648,759
Administrative expenses 1,569 479 -- 19,671
--------------------------------------------------------
Total deductions 320,277 140,505 230,519 3,668,430
Transfer of assets (to)
from other funds (286,338) 79,434 179,366 --
Transfer of assets (to)
from other plans (10,430) (9,836) -- (153,335)
--------------------------------------------------------
Net increase (decrease) 710,073 484,683 38,806 1,967,252
Net assets available for
benefits at beginning
of year 3,917,568 1,822,357 1,290,894 28,493,532
--------------------------------------------------------
Net assets available for
benefits at end of year $4,627,641 $2,307,040 $1,329,700 $30,460,784
========================================================
</TABLE>
See accompanying notes.
4
<PAGE>
Golden Retirement Savings Program
Statements of Changes in Net Assets Available for Benefits (continued)
Year ended December 31, 1996
<TABLE>
<CAPTION>
Putnam Putnam
Conservative Aggressive Parent Guaranteed Growth Global
Equity Equity Company Income and Income Growth
Fund Fund Stock Fund Contracts Fund Fund
------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Additions:
Interest and dividends $ -- $ -- $ -- $ 1,191,923 $ 297,569 $ 83,436
Appreciation (depreciation)
in the fair value of
investments 39,672 51,253 174,320 -- 95,628 (6,351)
------------------------------------------------------------------------------------
Total investment (loss) income 39,672 51,253 174,320 1,191,923 393,197 77,085
Contributions:
Employer 10,583 6,928 16,486 99,861 82,288 36,689
Participants 37,467 33,607 57,675 635,177 260,328 108,629
------------------------------------------------------------------------------------
48,050 40,535 74,161 735,038 342,616 145,318
------------------------------------------------------------------------------------
Total additions 87,722 91,788 248,481 1,926,961 735,813 222,403
Deductions:
Benefit payments 187,890 140,094 99,130 4,280,836 60,686 9,269
Administrative expenses -- -- 55 65,255 453 161
------------------------------------------------------------------------------------
Total deductions 187,890 140,094 99,185 4,346,091 61,139 9,430
Transfer of assets (to)
from other funds (1,724,261) (1,636,799) (22,476) (7,297,283) 3,093,882 985,873
Transfer of assets (to)
from other plans -- -- (8,111) 106,969 (8,070) --
------------------------------------------------------------------------------------
Net increase (decrease) (1,824,429) (1,685,105) 118,709 (9,609,444) 3,760,486 1,198,846
Net assets available for
benefits at beginning
of year 1,824,429 1,685,105 441,453 23,952,381 -- --
------------------------------------------------------------------------------------
Net assets available for
benefits at end of year $ -- $ -- $ 560,162 $14,342,937 $3,760,486 $1,198,846
====================================================================================
</TABLE>
<PAGE>
<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 $ 186,965 $ 30,251 $ 146,968 $ 71,580 $ 2,008,692
Appreciation (depreciation)
in the fair value of
investments (23,923) (248,761) 35,396 -- 117,234
--------------------------------------------------------------------------
Total investment (loss) income 163,042 (218,510) 182,364 71,580 2,125,926
Contributions:
Employer 32,403 108,276 32,555 -- 426,069
Participants 103,192 402,172 107,865 -- 1,746,112
-------------------------------------------------------------------------
135,595 510,448 140,420 -- 2,172,181
--------------------------------------------------------------------------
Total additions 298,637 291,938 322,784 71,580 4,298,107
Deductions:
Benefit payments 29,444 40,980 31,561 123,491 5,003,381
Administrative expenses 265 621 165 -- 66,975
--------------------------------------------------------------------------
Total deductions 29,709 41,601 31,726 123,491 5,070,356
Transfer of assets (to)
from other funds 1,327,048 3,662,925 1,539,369 71,722 --
Transfer of assets (to)
from other plans 4,306 4,306 (8,070) -- 91,330
--------------------------------------------------------------------------
Net increase (decrease) 1,600,282 3,917,568 1,822,357 19,811 (680,919)
Net assets available for
benefits at beginning
of year -- -- -- 1,271,083 29,174,451
--------------------------------------------------------------------------
Net assets available for
benefits at end of year $1,600,282 $3,917,568 $1,822,357 $1,290,894 $28,493,532
==========================================================================
</TABLE>
See accompanying notes.
5
<PAGE>
Golden Retirement Savings Program
Notes to Financial Statements
December 31, 1997
1. DESCRIPTION OF THE PLAN
The following description of the Golden Retirement Savings 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., formerly known as Western 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 quarterly entry
dates after meeting the following requirements:
a. Is a member of group of employees to which the Plan has been and continues
to be extended by the participating company (employer), either unilaterally
or through collective bargaining; and
b. Has completed six months 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 contributes to the Plan an amount equal to 50% of
the first 6% of income deferral contributions made by or on behalf of the
participant. Employer contributions are reduced by any forfeitures to be
credited for the applicable period. Forfeitures of 1997 and 1996 totaled
$18,125 and $141,523, 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.
6
<PAGE>
Golden Retirement Savings Program
Notes to Financial Statements (continued)
1. DESCRIPTION OF THE PLAN (CONTINUED)
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.
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:
Vested Percentage
Years of Continuous of Employer
Employment Contribution Account
---------- --------------------
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
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.
When a participants employment terminates for any reason, all vested Plan
credits of the participant will 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.
7
<PAGE>
Golden Retirement Savings Program
Notes to Financial Statements (continued)
1. DESCRIPTION OF THE PLAN (CONTINUED)
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 (360
months for loans made prior to October 18, 1989). 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
for 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.
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.
8
<PAGE>
Golden Retirement Savings Program
Notes to Financial Statements (continued)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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.
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 47,040,867 37,339,787
----------------------------
$21,453,691 $12,179,524
============================
</TABLE>
9
<PAGE>
Golden Retirement Savings Program
Notes to Financial Statements (continued)
3. INVESTMENTS IN MASTER TRUST (CONTINUED)
<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
------------------------------
16,820,887 34,466,552
Less amounts allocated to other plans 10,030,043 20,110,271
------------------------------
$ 6,790,844 $14,356,281
==============================
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 1,875,556 1,177,760
------------------------------
$ 734,540 $ 554,198
==============================
Loans receivable from participants,
at estimated fair value $ 2,459,510 $ 3,027,117
Less amounts allocated to other plans 1,099,810 1,736,223
------------------------------
$ 1,359,700 $ 1,290,894
==============================
</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 4,858,978 4,311,734
------------------------------
$ 2,374,205 $2,008,692
==============================
</TABLE>
10
<PAGE>
Golden Retirement Savings 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 4,349,181 48,916,423
-----------------------------------
$1,423,712 $22,188,231
===================================
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 (180,215) 38,517,547
-----------------------------------
$ 117,234 $12,733,722
===================================
</TABLE>
11
<PAGE>
Golden Retirement Savings Program
Notes to Financial Statements (continued)
5. INCOME TAX STATUS
The Internal Revenue Service ruled November 14, 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 Plan administrator is not aware of any course of action or series of events
that have occurred that might adversely affect the Plans qualified status.
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 100percent vested in their accounts.
12
<PAGE>
Golden Retirement Savings Program
Employer Idenification Number 39-0975399
Plan Number 011
Line 27(f) -- Schedule of Nonexempt Transactions
Year ended December 31, 1997
<TABLE>
<CAPTION>
RELATIONSHIP TO PLAN, DESCRIPTION OF TRANSACTIONS, INCLUDING
EMPLOYER, OR OTHER MATURITY DATE, RATE OF INTEREST,
IDENTITY OF PARTY INVOLVED PARTY-IN-INTEREST COLLATERAL, PAR OR MATURITY VALUE
- -------------------------------------------------------------------------------------------------------
<S> <C> <C>
Golden Books Publishing Company, Inc. Employer/Plan Sponsor Participant contributions of $99,625
for the December 1997 payroll were
deposited January 26, 1998
</TABLE>
13
<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. 33-18693) pertaining to the Golden Retirement Savings Program
(the Plan) of our report dated April 21, 1998, with respect to the financial
statements 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