Wolverine World Wide (WWW) 10-Q 2000 Q1 Quarterly report

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

[X]QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the first twelve week accounting period ended March 25, 2000

OR

[  ]     TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from ____ to ____

Commission File Number 1-6024

WOLVERINE WORLD WIDE, INC.
(Exact Name of Registrant as Specified in its Charter)

Delaware	38-1185150
(State or Other Jurisdiction of Incorporation or Organization)	(IRS Employer Identification No.)
9341 Courtland Drive, Rockford, Michigan	49351
(Address of Principal Executive Offices)	(Zip Code)

                                  (616) 866-5500                         
(Registrant's Telephone Number, including Area Code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.

Yes   X  No     

Indicate the number of shares outstanding of each of the issuer's classes of common stock as of the latest practicable date.

There were 44,750,022 shares of Common Stock, $1 par value, outstanding as of April 24, 2000, of which 3,158,440 shares are held as Treasury Stock.

FORWARD-LOOKING STATEMENTS

This report contains forward-looking statements that are based on management's beliefs, assumptions, current expectations, estimates and projections about the footwear business, worldwide economics and about the Company itself. Words such as "anticipates," "believes," "estimates," "expects," "forecasts," "intends," "is likely," "plans," "predicts," "projects," variations of such words and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions ("Risk Factors") that are difficult to predict with regard to timing, extent, likelihood and degree of occurrence. Therefore, actual results and outcomes may materially differ from what may be expressed or forecasted in such forward-looking statements.

Risk Factors include, but are not limited to, uncertainties relating to changes in demand for the Company's products; changes in consumer preferences or spending patterns; the cost and availability of inventories, services, labor and equipment furnished to the Company; the cost and availability of contract manufacturers; the degree and type of competition by the Company's competitors; changes in government and regulatory policies; changes in trading policies or import and export regulations; changes in interest rates, tax laws, duties or applicable assessments; technological developments; changes in local, domestic or international economic and market conditions; the size and growth of the overall footwear markets; changes in the amount or severity of inclement weather; changes due to the growth of Internet commerce; popularity of particular designs and categories of footwear; the ability of the Company to manage and forecast its growth and inventories; the ability to secure and protect trademarks, patents and other intellectual property; changes in business strategy or development plans; and the ability to attract and retain qualified personnel. These matters are representative of the Risk Factors that could cause a difference between an ultimate actual outcome and a forward-looking statement. Historical operating results are not necessarily indicative of the results that may be expected in the future. The Risk Factors included here are not exhaustive. Other Risk Factors exist, and new Risk Factors emerge from time-to-time, that may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results. Furthermore, the Company undertakes no obligation to update, amend or clarify forward-looking statements, whether as a result of new information, future events or otherwise.

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PART I. FINANCIAL INFORMATION

ITEM 1. Financial Statements

WOLVERINE WORLD WIDE, INC. AND SUBSIDIARIES

CONSOLIDATED CONDENSED BALANCE SHEETS

(Thousands of dollars)

			March 25, 2000 (Unaudited)		January 1, 2000 (Audited)		March 27, 1999 (Unaudited)
ASSETS
CURRENT ASSETS
	Cash and cash equivalents		$	1,766	$	1,446	$	2,274
	Accounts receivable, less allowances
		March 25, 2000 - - $6,800
		January 1, 2000 - $6,644
		March 27, 1999 - - $6,031		169,725		170,732		153,364
	Inventories:
		Finished products		137,689		128,458		126,215
		Raw materials and work in process		38,768		39,553		45,316
				176,457		168,011		171,531
	Other current assets			9,953		9,112		14,751
TOTAL CURRENT ASSETS				357,901		349,301		341,920
PROPERTY, PLANT & EQUIPMENT
	Gross cost			214,066		212,766		199,919
	Less accumulated depreciation			100,366		96,483		86,751
				113,700		116,283		113,168
OTHER ASSETS				68,653		68,811		69,883
TOTAL ASSETS			$	540,254	$	534,395	$	524,971

See notes to consolidated condensed financial statements.

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WOLVERINE WORLD WIDE, INC. AND SUBSIDIARIES

CONSOLIDATED CONDENSED BALANCE SHEETS - Continued

(Thousands of dollars)

   

				March 25, 2000 (Unaudited)			January 1, 2000 (Audited)			March 27, 1999 (Unaudited)
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
	Notes payable to banks			$	1,308		$	148		$	541
	Accounts payable and other accrued liabilities				36,069			44,021			44,287
	Current maturities of long-term debt				4,370			4,370			4,561
TOTAL CURRENT LIABILITIES					41,747			48,539			49,389
LONG-TERM DEBT (less current maturities)					144,529			134,831			160,825
OTHER NONCURRENT LIABILITIES					18,349			18,920			11,543
STOCKHOLDERS' EQUITY
	Common Stock - par value $1, authorized
		80,000,000 shares; shares issued
		(including shares in treasury):
			March 25, 2000 - - 44,725,785 shares
			January 1, 2000 - 44,426,322 shares
			March 27, 1999 - - 44,062,487 shares		44,726			44,426			44,062
	Additional paid-in capital				79,563			76,752			74,793
	Retained earnings				258,610			255,265			230,199
	Accumulated other comprehensive loss				(1,016	)		(614	)		(1,113	)
	Unearned compensation				(8,428	)		(5,974	)		(7,170	)
	Cost of shares in treasury:
		March 25, 2000 - 3,130,676 shares
		January 1, 2000 - 3,125,952 shares
		March 27, 1999 - 3,110,663 shares			(37,826	)		(37,750	)		(37,557	)
TOTAL STOCKHOLDERS' EQUITY					335,629			332,105			303,214
TOTAL LIABILITIES AND
	STOCKHOLDERS' EQUITY			$	540,254		$	534,395		$	524,971

(  ) - Denotes deduction.

See notes to consolidated condensed financial statements.

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WOLVERINE WORLD WIDE, INC. AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS
OF OPERATIONS

(Thousands of dollars, except shares and per share data)
(Unaudited)

			12 Weeks Ended
			March 25, 2000			March 27, 1999
NET SALES AND OTHER
	OPERATING INCOME		$	147,370		$	136,193
Cost of products sold				101,615			94,325
GROSS MARGIN				45,755			41,868
Selling and administrative expenses				36,407			34,139
OPERATING INCOME				9,348			7,729
OTHER EXPENSES (INCOME):
	Interest expense			2,481			2,284
	Interest income			(57	)		(118	)
	Other - - net			(128	)		186
				2,296			2,352
EARNINGS BEFORE INCOME TAXES				7,052			5,377
Income taxes				2,257			1,774
NET EARNINGS			$	4,795		$	3,603
EARNINGS PER SHARE:
	Basic		$	.12		$	.09
	Diluted		$	.12		$	.09
CASH DIVIDENDS PER SHARE			$	.0350		$	.0300
SHARES USED FOR NET EARNINGS
	PER SHARE COMPUTATION:
		Basic		40,498,659			40,182,655
		Diluted		41,673,044			41,130,097

See notes to consolidated condensed financial statements.

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WOLVERINE WORLD WIDE, INC. AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS

(Thousands of dollars)
(Unaudited)

   
 

				12 Weeks Ended
				March 25, 2000			March 27, 1999
OPERATING ACTIVITIES
	Net earnings			$	4,795		$	3,603
	Depreciation, amortization and other non-cash items				2,729			1,137
	Unearned compensation				578			545
	Changes in operating assets and liabilities:
		Accounts receivable			1,007			(1,254	)
		Inventories			(8,446	)		(4,492	)
		Other current assets			(841	)		875
		Accounts payable and other accrued liabilities			(7,952	)		4,126
			NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES		(8,130	)		4,540
FINANCING ACTIVITIES
	Proceeds from long-term borrowings				28,743			9,000
	Payments of long-term borrowings				(19,045	)		(5,264	)
	Proceeds from short-term borrowings				2,902
	Payments of short-term borrowings				(1,742	)		(6,005	)
	Cash dividends				(1,450	)		(1,231	)
	Proceeds from shares issued under employee stock plans				3			78
			NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES		9,411			(3,422	)
INVESTING ACTIVITIES
	Additions to property, plant and equipment				(1,300	)		(5,545	)
	Other				339			498
			NET CASH USED IN INVESTING ACTIVITIES		(961	)		(5,047	)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS					320			(3,929	)
Cash and cash equivalents at beginning of the year					1,446			6,203
CASH AND CASH EQUIVALENTS AT END OF THE
	PERIOD			$	1,766		$	2,274

(  ) - Denotes reduction in cash and cash equivalents.

See notes to consolidated condensed financial statements.

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WOLVERINE WORLD WIDE, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
March 25, 2000 and March 27, 1999

1. Basis of Presentation

The accompanying unaudited consolidated condensed financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting solely of normal recurring accruals) considered necessary for fair presentation have been included. For further information, refer to the consolidated financial statements and footnotes included in the Company's Annual Report on Form 10-K for the fiscal year ended January 1, 2000.

2. Fluctuations

The Company's sales are seasonal. Seasonal sales patterns and the fact that the fourth quarter has sixteen or seventeen weeks as compared to twelve weeks in each of the first three quarters cause significant differences in sales and earnings from quarter to quarter. These differences, however, have followed a consistent pattern each year.

3. Earnings Per Share

The following table sets forth the reconciliation of weighted average shares used in the computation of basic and diluted earnings per share:

	March 25, 2000		March 27, 1999
Weighted average shares outstanding	41,400,355		40,855,168
Adjustment for nonvested common stock	(901,696	)	(672,513	)
Denominator for basic earnings per share	40,498,659		40,182,655
Effect of dilutive stock options	272,689		274,929
Adjustment for nonvested common stock	901,696		672,513
Denominator for diluted earnings per share	41,673,044		41,130,097

4. Comprehensive Income

Total comprehensive income totaled $4,393,000 and $3,504,000 for the first quarter of 2000 and 1999, respectively, and in addition to net earnings, included foreign currency translation losses of $402,000 in 2000 and $99,000 in 1999.

5. Business Segments

The Company has one reportable segment that is engaged in the manufacture and marketing of branded footwear, including casual shoes, slippers, moccasins, dress shoes, boots, uniform shoes, work shoes and performance outdoor footwear to the retail sector. Revenues of this segment are derived from the sale of branded footwear products to external customers and the Company's retail division as well as royalty income from the licensing of the Company's trademarks and brand names to licensees. The business units comprising the branded footwear segment manufacture or source, market and distribute products in a similar manner. Branded footwear is distributed through wholesale channels and under licensing and distributor arrangements.

The other business units in the following table consist of the Company's retail, apparel and accessory licensing division, tannery and pigskin procurement operations. The Company operated 59 domestic retail stores at March 25, 2000 that sell Company-manufactured or sourced products and footwear manufactured by unaffiliated companies. The Apparel and Accessory Licensing Division licenses the Company's brands for use on non-footwear products to licensees throughout the U.S. and internationally. The other business units distribute products through retail and wholesale channels.

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There have been no changes in the way the Company measures segment profits or in its basis of segmentation since the year ended January 1, 2000.

Business segment information is as follows (in thousands of dollars):

		Branded Footwear		Other Businesses		Corporate		Consolidated
		Quarter ended March 25, 2000
Net sales and other operating income
	from external customers	$	132,941	$	14,423			$	147,370
Intersegment sales			4,244		1,675				5,919
Earnings before income taxes			5,965		620	$	467		7,052
		Quarter ended March 27, 1999
Net sales and other operating income
	from external customers	$	121,884	$	14,309			$	136,193
Intersegment sales			5,646		1,065				6,711
Earnings before income taxes			4,485		804	$	88		5,377

   
 

ITEM 2.	Management's Discussion and Analysis of Financial Condition and
	Results of Operations

Results Of Operations - Comparisons of First Quarter 2000 To First Quarter 1999

First quarter net sales and other operating income increased 8.2% to $147.4 million in 2000 as compared to $136.2 million in 1999. On a combined basis, net sales and other operating income for the Company's branded footwear businesses, consisting of the Casual Footwear Group (comprised of The Hush Puppies Company, the Children's Footwear Group, the Wolverine Slipper Group and, in 1999, the Russian wholesale business), the Wolverine Footwear Group (comprised of Wolverine®, HyTest®, Coleman®, Bates® and Harley-Davidson® brands), and the Performance Footwear Group (comprised of the Caterpillar® and Merrell® brands), increased $11.1 million (9.1%) in the first quarter of 2000 as compared to the first quarter of 1999. The Company's other business units, consisting of Wolverine Retail, Apparel and Accessories Licensing, Wolverine Leathers and Wolverine Procurement operations, reported flat net sales and other operating income for the first quarter of 2000 as compared to the same period of 1999.

The Casual Footwear Group reported a $0.8 million (1.9%) decrease in 2000 first quarter net sales and other operating income as compared to the same period of 1999. The Hush Puppies Company's 2000 first quarter net sales and other operating income decreased $1.5 million from the first quarter 1999 level primarily as a result of a decrease in the U.S. wholesale operation due to a slow down in the sales of classic suede casuals. Partially offsetting the decrease of the Hush Puppies Company, the Wolverine Slipper Group's 2000 first quarter net sales and other operating income increased $1.0 million as compared to the same period of 1999.

The Wolverine Footwear Group's net sales and other operating income increased $0.6 million (1.1%) for the first quarter of 2000 as compared to the same period of 1999. Harley-Davidson® footwear's net sales and other operating income increased $2.2 million during the first quarter of 2000 as we more firmly established the brand in the market place. Bates® footwear division, including shipments to the United States Department of Defense, also recognized a $1.6 million increase in net sales and other operating income as a result of increased draw orders against contracts as compared to the same period of 1999. These increases were partially offset by the work boot business, comprised of the Wolverine Boots and Shoes Division and HyTest® Boots and Shoes, which reported a $4.4 million decrease in net sales and other operating income over the 1999 first quarter.

The Performance Footwear Group continued its strong growth recognizing a $9.8 million (45.0%) increase in net sales and other operating income for the first quarter of 2000 as compared to the same period of 1999. The Merrell® outdoor footwear business accounted for substantially all of the increase in net sales and other operating income in the first quarter of 2000 over the same period of 1999 as a result of new product offerings and expansion of its retail distribution.

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Within the Company's other business units, Wolverine Retail's 2000 first quarter net sales and other operating income increased $1.1 million in 2000 compared to the same period in 1999. The Wolverine Leathers Division recorded a first quarter 2000 decrease in net sales and other operating income of $1.2 million from the first quarter of 1999.

Gross margin as a percentage of net sales and other operating income for the first quarter of 2000 was 31.0% compared to the prior year's first quarter level of 30.7%. Gross margin dollars increased $3.9 million (9.3%) in the first quarter of 2000 to $45.8 million as compared to $41.9 million for the same period of 1999. The gross margin percentage for the branded footwear businesses increased to 30.4% for the first quarter of 2000 from 29.9% for the same period of 1999, reflecting the higher mix of net sales and other operating income from the Performance Footwear Group which carries higher initial margins than the Company's other branded footwear businesses. The gross margin percentage for the other business units decreased to 36.7% for the first quarter of 2000 from 37.8% for the same period of 1999 as a result of an increase in raw material costs experienced in the Wolverine Leathers division.

Selling and administrative expenses increased $2.3 million (6.6%) to $36.4 million for the first quarter of 2000 from $34.1 million for the first quarter of 1999 and, as a percentage of net sales and other operating income, decreased to 24.7% in the first quarter of 2000 from 25.1% in the first quarter of 1999. The change in selling and administrative costs includes increased depreciation expense of $0.6 million related to recent investments in information services and $3.2 million of additional Harley-Davidson and Merrell selling and administration costs, which were offset by $1.5 million in cost reductions.

Interest expense for the first quarter of 2000 was $2.4 million, compared to $2.2 million for the same period of 1999. The increase in interest expense for 2000 reflects a slight increase in interest rates and lower capitalization of interest due to the completion of capital projects during 1999.

The 2000 first quarter effective tax rate of 32.0% decreased from 33.0% for the first quarter of 1999 as a result of earnings from certain foreign subsidiaries, which are taxed generally at lower rates, becoming a larger percentage of total consolidated earnings.

Net earnings for the twelve weeks ended March 25, 2000 rose 33.1%, totaling $4.8 million as compared to $3.6 million for the respective period of 1999. Diluted earnings per share of $0.12 for the first quarter of 2000 compares to $0.09 for the same period of 1999.

Financial Condition, Liquidity and Capital Resources

Net cash used in operating activities was $8.1 million for the first quarter of 2000 compared to net cash provided of $4.5 million for the first quarter of 1999, a decrease of $12.7 million. Cash of $16.2 million for the first quarter of 2000 and $0.7 million for the first quarter of 1999 was used to fund working capital requirements. Accounts receivable of $169.7 million at March 25, 2000 reflects an increase of $16.4 million (10.7%) over the balance at March 27, 1999 and a decrease of $1.0 million (0.6%) from the January 1, 2000 balance. Inventories of $176.5 million at March 25, 2000 reflect an increase of $4.9 million (2.9%) and $8.4 million (5.0%) over the balances at March 27, 1999 and January 1, 2000, respectively. The expansion of the Merrell and Harley-Davidson businesses increased accounts receivable and inventories each by $15.2 million over the March 27, 1999 balances. Order backlog was approximately 8% higher at March 25, 2000, when compared to the previous year's first quarter. Accounts payable and other accrued liabilities of $36.1 million at March 25, 2000 reflect an $8.2 million (18.6%) and $7.9 million (18.1%) decrease from the $44.3 million balance at March 27, 1999 and $44.0 million balance at January 1, 2000. The decrease in accounts payable and other accrued liabilities is primarily attributable to the timing of payments.

Additions to property, plant and equipment of $1.3 million in the first quarter of 2000 compares to $5.5 million reported during the same period in 1999. The decrease in these additions is related to the prior year replacement of legacy information systems which were fully capitalized by the 1999 year-end. Depreciation and amortization of $4.1 million in the first quarter of 2000 compares to $3.9 million in the first quarter of 1999. This increase was a result of the capital investments noted above and the amortization of goodwill related to acquisitions made during the past three years.

The Company maintains short-term borrowing and commercial letter-of-credit facilities of $69.1 million, of which $20.1 million, $30.4 million and $19.8 million were outstanding at March 25, 2000, January 1, 2000 and March 27, 1999, respectively. Long-term debt, excluding current maturities, of $144.5 million at March 25, 2000 compares to $160.8 million and $134.8 million at March 27, 1999 and January 1, 2000, respectively. The increase in debt since March 27, 1999 was a result of increases in working capital borrowings needed to fund the growth in the Performance Footwear Group during 1999 and 2000.

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It is expected that continued Company growth will require increases in capital funding over the next several years. The Company has a long-term domestic revolving credit facility of $165.0 million expiring in October 2001. The Company's subsidiaries in the United Kingdom and Canada have $11.4 million and $6.9 million variable rate revolving credit agreements expiring in October 2001 and April 2000, respectively. All revolving credit agreements are used to support working capital requirements. The combination of credit facilities and cash flows from operations is expected to be sufficient to meet future capital needs. Any excess cash flows from operations are expected to be used to pay down the revolving credit facility.

The 2000 first quarter dividend declared of $.035 per share of common stock represents approximately a 16.7% increase over the $.03 per share declared for the first quarter of 1999. The dividend was payable May 1, 2000 to stockholders of record on April 3, 2000.

The current ratio for the first quarter was 8.6 to 1.0 in 2000 compared with 6.9 to 1.0 in 1999. The Company's total debt to total capital ratio was .31 to 1.0 in 2000 compared to .35 to 1.0 in 1999.

ITEM 3. Quantitative and Qualitative Disclosures about Market Risk

The information concerning quantitative and qualitative disclosures about market risk contained in Wolverine's Form 10-K Annual Report for its fiscal year ended January 1, 2000, is incorporated herein by reference.

Wolverine faces market risk to the extent that changes in foreign currency exchange rates affect Wolverine's foreign assets, liabilities and inventory purchase commitments and to the extent that its long-term debt requirements are affected by changes in interest rates. Wolverine manages these risks by attempting to denominate contractual and other foreign arrangements in U.S. dollars and by maintaining a significant percentage of fixed-rate debt. Wolverine does not believe that there has been a material change in the nature of Wolverine's primary market risk exposures, including the categories of market risk to which Wolverine is exposed and the particular markets that present the primary risk of loss to Wolverine. As of the date of this Form 10-Q Quarterly Report, Wolverine does not know of or expect there to be any material change in the general nature of its primary market risk exposure in the near term.

The methods used by Wolverine to manage its primary market risk exposures, as described in the sections of its annual report incorporated herein by reference in response to this item, have not changed materially during the current year. As of the date of this Form 10-Q Quarterly Report, Wolverine does not expect to change its methods used to manage its market risk exposures in the near term. However, Wolverine may change those methods in the future to adapt to changes in circumstances or to implement new techniques.

Wolverine's market risk exposure is mainly comprised of its vulnerability to changes in foreign currency exchange rates and interest rates. Prevailing rates and rate relationships in the future will be primarily determined by market factors that are outside of Wolverine's control. All information provided in response to this item consists of forward-looking statements. Reference is made to the section captioned "Forward-Looking Statements" at the beginning of this document for a discussion of the limitations on Wolverine's responsibility for such statements.

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PART II. OTHER INFORMATION

ITEM 6. Exhibits and Reports on Form 8-K.

(a) Exhibits.The following documents are filed as exhibits to this report on Form 10-Q:

Exhibit Number	Document
3.1	Certificate of Incorporation, as amended. Previously filed as Exhibit 3.1 to the Company's Quarterly Report of Form 10-Q for the period ended June 14, 1997. Here incorporated by reference.
3.2	Amended and Restated Bylaws. Previously filed as Exhibit 3.2 to the Company's Annual Report on Form 10-K for the fiscal year ended January 2, 1999. Here incorporated by reference.
27	Financial Data Schedule.

(b) Reports on Form 8-K. No reports on Form 8-K were filed during the period for which this report is filed.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	WOLVERINE WORLD WIDE, INC. AND SUBSIDIARIES
May 9, 2000 Date	/s/ Timothy J. O'Donovan Timothy J. O'Donovan President and Chief Executive Officer (Duly Authorized Signatory for Registrant)
May 9, 2000 Date	/s/ Stephen L. Gulis, Jr. Stephen L. Gulis, Jr. Executive Vice President, Chief Financial Officer     and Treasurer (Principal Financial Officer and Duly Authorized     Signatory for Registrant)
May 9, 2000 Date	/s/ Nicholas P. Ottenwess Nicholas P. Ottenwess Corporate Controller (Duly Authorized Signatory for Registrant

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EXHIBIT INDEX

Exhibit Number	Document
3.1	Certificate of Incorporation, as amended. Previously filed as Exhibit 3.1 to the Company's Quarterly Report of Form 10-Q for the period ended June 14, 1997. Here incorporated by reference.
3.2	Amended and Restated Bylaws. Previously filed as Exhibit 3.2 to the Company's Annual Report on Form 10-K for the fiscal year ended January 2, 1999. Here incorporated by reference.
27	Financial Data Schedule.

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