11-K 1 d11k.txt FORM 11-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 11-K (Mark One) [X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT 0F 1934 For the fiscal year ended December 31, 2000 OR [_] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 for the transition period from ________ to________ Commission file number 333-70067 --------- A. Full title of the plan and the address of the plan, if different from that of the issuer named below: Sally Beauty 401(k) Savings Plan Alberto-Culver 401(k) Savings Plan 3900 Morse Street Denton, TX 76205 B. Name of issuer of the securities held pursuant to the plan and the address of its principal executive office: Alberto-Culver Company 2525 Armitage Ave. Melrose Park, IL 60160 SIGNATURES The Plans: Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees (or other persons who administer the employee benefit plans) have duly caused this annual report to be signed on their behalf by the undersigned hereunto duly authorized. SALLY BEAUTY 401(k) SAVINGS PLAN By: Sally Beauty Company, Inc., Plan Administrator By:/s/ Michael H. Renzulli ------------------------ Michael H. Renzulli President ALBERTO-CULVER 401(k) SAVINGS PLAN By: Alberto-Culver Company, Inc., Plan Administrator By:/s/ William J. Cernugel ------------------------ William J. Cernugel Senior Vice President and CFO Dated: June 25, 2001 ALBERTO-CULVER 401(k) SAVINGS PLAN Financial Statements and Supplemental Schedule December 31, 2000 and 1999 (With Independent Auditors' Report Thereon) ALBERTO-CULVER 401(k) SAVINGS PLAN Table of Contents
Page Independent Auditors' Report 1 Statements of Net Assets Available for Plan Benefits 2 Statements of Changes in Net Assets Available for Plan Benefits 3 Notes to Financial Statements 4 Supplemental Schedule Schedule of Assets Held for Investment Purposes at End of Year 12
Independent Auditors' Report To the Plan Administrator of the Alberto-Culver 401(k) Savings Plan: We have audited the accompanying statements of net assets available for plan benefits of the Alberto-Culver 401(k) Savings Plan (the Plan) as of December 31, 2000 and 1999, and the related statements of changes in net assets available for plan benefits for the years then ended. These financial statements are the responsibility of the Plan's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for plan benefits of the Plan as of December 31, 2000 and 1999, and the changes in net assets available for plan benefits for the years then ended in conformity with accounting principles generally accepted in the United States of America. Our audits were performed for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedule of assets held for investment purposes is presented for the purpose of additional analysis and is not a required part of the basic financial statements but is supplementary information required by the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. This supplemental schedule is the responsibility of the Plan's management. The supplemental schedule has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. /s/ KPMG LLP May 4, 2001 Schedule ALBERTO-CULVER 401(k) SAVINGS PLAN Statements of Net Assets Available for Plan Benefits December 31, 2000 and 1999
2000 1999 -------------- -------------- Assets: Cash $ 45,929 -- Investments, at market value: CIGNA Charter Guaranteed Income Fund 5,730,412 5,143,757 CIGNA Charter Large Company Stock Index Fund 3,632,861 4,269,067 Fidelity Advisor Equity Growth Fund 4,323,890 5,041,393 Fidelity Advisor Growth Opportunities Fund 2,099,446 2,647,667 Fidelity Advisor Balanced Fund 1,939,426 2,279,179 Warburg Pincus International Equity Fund 932,464 1,306,040 CIGNA Lifetime 20 86,458 63,874 CIGNA Lifetime 30 240,838 42,165 CIGNA Lifetime 40 149,870 61,876 CIGNA Lifetime 50 173,041 105,631 CIGNA Lifetime 60 11,218 4,182 CIGNA Charter Balanced Fund 161,995 127,794 CIGNA Charter Large Company Stock Growth II Fund 600,117 380,795 CIGNA Charter Midsize Company Stock Growth Fund 542,582 18,332 CIGNA Charter Small Company Stock Growth Fund 755,304 87,789 Janus Worldwide Fund 1,254,062 816,048 Lazard International Equity Fund 24,683 14,101 Alberto-Culver Company Class B Common Stock 767,246 217,073 Loans to participants 626,125 563,795 ------------- ----------- Total assets held for investment 24,097,967 23,190,558 Employer contribution receivable 796,329 704,108 ------------- ----------- Net assets available for plan benefits $ 24,894,296 23,894,666 ============= ===========
See accompanying notes to financial statements. 2 Schedule ALBERTO-CULVER 401(k) SAVINGS PLAN Statements of Changes in Net Assets Available for Plan Benefits Years ended December 31, 2000 and 1999
2000 1999 -------------- -------------- Additions to net assets attributed to: Investment income: Net appreciation (depreciation) in fair value of investments $ (2,037,547) 3,027,696 Dividend and interest income 294,295 261,056 Interest on participant loans 50,288 46,025 ------------- ------------- Total investment income (loss) (1,692,964) 3,334,777 ------------- ------------- Contributions: Employer 796,329 704,108 Employee 4,016,440 3,499,399 ------------- ------------- Total contributions 4,812,769 4,203,507 ------------- ------------- Transfers from Pro-Line International, Inc. 401(k) Savings Plan 267,414 -- ------------- ------------- Total additions 3,387,219 7,538,284 ------------- ------------- Deductions from net assets attributed to: Benefits paid to participants (2,377,346) (1,968,726) Administrative fees (10,243) (8,043) ------------- ------------ Total deductions (2,387,589) (1,976,769) ------------- ------------- Net increase 999,630 5,561,515 Net assets available for plan benefits at beginning of year 23,894,666 18,333,151 ------------- ------------- Net assets available for plan benefits at end of year $ 24,894,296 23,894,666 ============= =============
See accompanying notes to financial statements. 3 ALBERTO-CULVER 401(k) SAVINGS PLAN Statement of Net Assets Available for Plan Benefits December 31, 2000 and 1999 (1) Description of the Plan General The Alberto-Culver 401(k) Savings Plan (the Plan), established on January 1, 1994, is a defined contribution plan available to eligible employees of Alberto-Culver Company (the Company), and certain subsidiaries of the Company. On March 23, 2000, the Company acquired Pro-Line Corporation and subsequently terminated the Pro-Line 401(k) / ESOP Plan (the Pro-Line Plan). Upon termination, participants were provided the opportunity to receive a distribution of assets from the ESOP portion of the Pro-Line Plan or transfer their funds to the Plan. Assets of the Pro-Line 401 (k) plan were automatically transferred to the Plan. Participants of the Pro-Line Plan received service credit for eligibility and vesting as of the date of acquisition. The Plan is administered by the Company with the assistance of Connecticut General Life Insurance Company, a CIGNA Company. The investment assets of the Plan are held by CG Trust Company (the Trustee). The following description of the Plan provides only general information. Information about the Plan's provisions is contained in the plan document, which may be obtained from the Company. Participation Effective January 1, 1999, all eligible employees whose customary employment is for at least 1,000 hours within 12 consecutive months and who are at least 21 years of age may participate in the Plan on the first day of the month coincident with or following the employee's hire date. Effective January 1, 2000, eligible employees of the Alberto-Culver Local 9777 Pension Plan were permitted to participate in the Plan. The Plan does not allow for Company matching contributions to this group. On December 31, 2000, there were 1,306 employees in the Plan. Contributions Participants may elect to contribute any amount from 1% to 15% of their eligible compensation, in whole percentage points, subject to the limitations of the Internal Revenue Code, as amended (the Code). The percentage of compensation contributed may be increased or decreased at the election of the participant any time during the year. All eligible participant contributions are tax deferred contributions pursuant to a qualified cash or deferral arrangement subject to the limitations of the Code. Company contributions to the Plan are based on a discretionary match on an annual basis. For the plan years 2000 and 1999, the Company matched $.50 of each dollar on 4% of eligible participant compensation. Investment Options Effective January 1, 1999, additional investment fund options were added to the Plan for the purposes of providing a broader selection of investment options for the participants to choose from. (Continued) 4 ALBERTO-CULVER 401(k) SAVINGS PLAN Statement of Net Assets Available for Plan Benefits December 31, 2000 and 1999 Participants may elect to invest their contributions and any Company contributions in eighteen investment options within seven different asset classes and the Company's Class B common stock. Such asset classes include: (i) fixed income, (ii) balanced, (iii) large capitalization equity, (iv) mid capitalization equity, (v) small capitalization equity, (vi) global equity, and (vii) international equity. Participants may invest Company and employee contributions in 1% increments in the Plan's available fund options and may reallocate their investments among the available fund options any time during the year. None of the investment funds, other than the CIGNA Charter Guaranteed Income Fund, guarantee a positive return to the participant. This fund invests in a diversified portfolio of high quality, fixed income instruments within CIGNA's general account. Principal and interest are backed by the underlying assets of CIGNA. Dividend and interest income received on investments made by the investment funds are reinvested accordingly in the same funds. Vesting Participants are fully vested in the current value of their contributions and earnings thereon, and become fully vested in the Company contributions and related earnings credited to their accounts based upon their years of vesting service as shown in the following table: Years of Vested vesting service percentage --------------- ---------- Less than 1 0% 1 but less than 2 20 2 but less than 3 40 3 but less than 4 60 4 but less than 5 80 5 or more 100 Participants who are age 65 or older, die, or become permanently disabled are automatically 100% vested in the value of Company contributions and related earnings or losses credited to their account. Distribution Options Upon termination of employment, participants generally may elect to receive the total value of their account attributable to their contributions, as well as the vested value of their Company contributions in cash, annual installments, direct rollover, or an annuity according to the provisions of the Plan. Alternatively, participants may elect to defer the distribution of their account balance until age 65. Such deferred benefits remain in the Plan and participate in the earnings and losses of the investments. (Continued) 5 ALBERTO-CULVER 401(k) SAVINGS PLAN Statement of Net Assets Available for Plan Benefits December 31, 2000 and 1999 Participant Loans Participants may borrow against their account balances for periods of one to five years. In the event the loan is used to purchase a primary residence, an extended period of time for repayment is allowed. Participant loans are limited to the lesser of $50,000 or 50% of the participants' vested account balance and bear interest at a rate of prime plus 1% at the time the loan is made. Outstanding participant loans are considered investments of the Plan and repayments of principal and interest are credited to the borrowing participants' account using his or her current investment election. At December 31, 2000 and December 31, 1999, interest rates on outstanding loans ranged from 7.25% to 10.5% and 7.25% to 10%, respectively. Forfeitures Company contributions and earnings thereon forfeited by terminating employees are used to reduce future Company contributions to the Plan. The Company will reinstate forfeited balances to the accounts of employees who rejoin the Company within five years of their termination. In 2000 and 1999, Company contributions were reduced by forfeiture amounts of $9,275 and $17,606, respectively. Administrative Expenses Administrative fees are paid by the Plan. All other Plan-related expenses are paid by the Company. Investment management fees are included in the investment fund yield. (2) Summary of Significant Accounting Policies Basis of Accounting The Company maintains the accounts of the Plan on an accrual basis. Asset Valuation The investment assets in the Trust are valued at the quoted closing sale price on the last business day of the year. Securities traded in over-the-counter markets and listed securities for which no sale was reported on the last business day of the year are valued at their last reported bid price. Participant loans are stated at contract value which approximates fair value. Security Transactions and Investment Income Purchases and sales of investments in the Plan are recorded on a trade date basis. When investments are sold, the difference between the original cost (computed on an average cost basis) and the proceeds received is recorded as a realized gain or loss. Interest and dividend income are recorded when earned. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires the use of plan administrator estimates and (Continued) 6 ALBERTO-CULVER 401(k) SAVINGS PLAN Statement of Net Assets Available for Plan Benefits December 31, 2000 and 1999 assumptions that affect the reported amounts of net assets available for plan benefits at the date of the financial statements and the changes in net assets available for plan benefits during the reporting period and related disclosures. Actual results could differ from these estimates. (3) Termination of the Plan It is the intent of the Company that the Plan continue into the future; however, the Company reserves the right to terminate the Plan. In the event the Plan is terminated, participants would become fully vested in their accounts, and the assets of the Plan would be distributed to the participants in proportion to their respective interests in the Plan. (4) Tax Status The Plan has received a favorable determination letter from the Internal Revenue Service, dated December 16, 1996, indicating that the Plan is qualified under Section 401(a) of the Code and exempt from tax under Section 501(a) of the Code. The plan administrator is not aware of any activity or transaction that may adversely affect the qualified status of the Plan. (5) Reconciliation of Financial Statements to Form 5500 The following is a reconciliation of net assets available for plan benefits per the financial statements The following is a reconciliation of benefits paid to participants per the financial statements to the Form 5500:
Year ended December 31, 2000 ------------ Benefits paid to participants per the financial statements $ 2,377,346 Less amounts allocated to withdrawing participants at December 31, 1999 (2,070) ------------ Benefits paid to participants per IRS Form 5500 $ 2,375,276 ============
(6) Other Investment Information The fair values of investment fund balances which represent five percent or more of the Plan's net assets as of December 31, 2000 and 1999 are as follows:
2000 1999 ----------- ---------- CIGNA Charter Guaranteed Income Fund $ 5,730,412 5,143,757 CIGNA Charter Large Company Stock Index Fund 3,632,861 4,269,067 Fidelity Advisor Equity Growth Fund 4,323,890 5,041,393 Fidelity Advisor Growth Opportunities Fund 2,099,446 2,647,667 Fidelity Advisor Balanced Fund 1,939,426 2,279,179 Janus Worldwide Fund 1,254,062 816,048 Warburg Pincus International Equity Fund 932,464 1,306,040
(Continued) 7 ALBERTO-CULVER 401(k) SAVINGS PLAN Notes to Financial Statements December 31, 2000 and 1999 (7) Changes in Net Assets by Fund - Years Ended December 31, 2000 and December 31, 1999
2000 ----------------------------------------------------------------------------- CIGNA CIGNA Fidelity Fidelity Guaranteed Stock Equity Growth Fidelity Income Index Growth Opportunities Balanced ------------- ------------ ----------- --------------- --------------- Additions to net assets attributed to: Investment income (loss): Net appreciation (depreciation) in fair value of investments $ -- (382,738) (552,531) (463,369) (124,772) Dividends and interest 290,656 -- -- -- -- Interest on participant loans 19,032 11,051 5,169 4,780 1,748 -------------- ------------- ------------ ------------ --------------- Total investment income (loss) 309,688 (371,687) (547,362) (458,589) (123,024) -------------- ------------- ------------ ------------ -------------- Contributions: Employer -- -- -- -- -- Employee 763,601 511,121 519,974 414,584 266,553 Loan repayments 90,441 45,633 27,076 17,484 7,621 -------------- ------------- ------------ ------------ -------------- Total contributions 854,042 556,754 547,050 432,068 274,174 -------------- ------------- ------------ ------------ -------------- Transfer-in (Pro-Line) 48,590 1,295 127,629 43,314 150 -------------- ------------- ------------ ------------ -------------- Total additions (reductions) 1,212,320 186,362 127,317 16,793 151,300 -------------- ------------- ------------ ------------ -------------- Transfers among funds, net 4,920 (343,626) (402,033) (310,879) (281,656) -------------- ------------- ------------ ------------ -------------- Deductions: Benefits paid to participants (627,158) (476,712) (442,110) (253,411) (209,282) Administrative fees (3,427) (2,230) (677) (724) (115) -------------- ------------- ------------ ------------ -------------- Total deductions (630,585) (478,942) (442,787) (254,135) (209,397) -------------- ------------- ------------ ------------ -------------- Net increase (decrease) 586,655 (636,206) (717,503) (548,221) (339,753) Net assets available for plan benefits: Beginning of year 5,143,757 4,269,067 5,041,393 2,647,667 2,279,179 -------------- ------------- ----------- ------------ -------------- End of year $ 5,730,412 3,632,861 4,323,890 2,099,446 1,939,426 ============== =========== ============ ============ ============== ------------------------------------------------------------------------------ Warburg Pincus CIGNA CIGNA CIGNA CIGNA Int'l Lifetime Lifetime Lifetime Lifetime Equity 20 30 40 50 ------------- --------- ------------ ------------ -------------- Additions to net assets attributed to: Investment income (loss): Net appreciation (depreciation) in fair value of investments (390,690) (936) 718 (2,368) (306) Dividends and interest -- -- -- -- -- Interest on participant loans 2,087 150 1,100 77 7 ------------- ----------- ------------ ------------ ----------- Total investment income (loss) (388,603) (786) 1,818 (2,291) (299) ------------- ----------- ------------ ------------ ----------- Contributions: Employer -- -- -- -- -- Employee 132,923 47,126 51,801 69,853 63,319 Loan repayments 15,540 1,889 3,452 471 73 ------------- ----------- ------------ ------------ ----------- Total contributions 148,463 49,015 55,253 70,324 63,392 ------------- ----------- ------------ ------------ ----------- Transfer-in (Pro-Line) 21,669 681 1,573 1,589 34 ------------- ----------- ------------ ------------ ----------- Total additions (reductions) (218,471) 48,910 58,644 69,622 63,127 ------------- ----------- ------------ ------------ ----------- Transfers among funds, net (70,688) (21,791) 145,325 19,819 4,333 ------------- ----------- ------------ ------------ ----------- Deductions: Benefits paid to participants (84,217) (4,405) (5,116) (1,332) -- Administrative fees (200) (130) (180) (115) (50) ------------- ----------- ------------ ------------ ----------- Total deductions (84,417) (4,535) (5,296) (1,447) (50) ------------- ----------- ------------ ------------ ----------- Net increase (decrease) (373,576) 22,584 198,673 87,994 67,410 Net assets available for plan benefits: Beginning of year 1,306,040 63,874 42,165 61,876 105,631 ------------- ----------- ------------ ------------ ----------- End of year 932,464 86,458 240,838 149,870 173,041 ============= ============ ============ ============ ===========
(Continued) 8
2000 --------------------------------------------------------------------------------------------------------------------------------- CIGNA CIGNA CIGNA CIGNA CIGNA Lazard Lifetime Charter Lg Co Mid Co Sm Co Janus Int'l 60 Balanced Growth II Growth Growth Worldwide Equity ------------------ ---------------- ----------------- ---------------- ----------------- ---------------- ----------------- 290 (4,223) (100,324) 40,040 (34,584) (278,240) (1,710) -- -- -- -- -- -- -- -- 172 367 524 1,495 999 103 ------------------ ---------------- ----------------- ---------------- ----------------- ---------------- ----------------- 290 (4,051) (99,957) 40,564 (33,089) (277,241) (1,607) ------------------ ---------------- ----------------- ---------------- ----------------- ---------------- ----------------- -- -- -- -- -- -- -- 6,244 53,051 229,051 105,693 138,241 455,566 19,404 -- 501 9,492 10,100 12,112 4,574 404 ------------------ ---------------- ----------------- ---------------- ----------------- ---------------- ----------------- 6,244 53,552 238,543 115,793 150,353 460,140 19,808 ------------------ ---------------- ----------------- ---------------- ----------------- ---------------- ----------------- 218 1,034 2,483 316 9,185 2,540 392 ------------------ ---------------- ----------------- ---------------- ----------------- ---------------- ----------------- 6,752 50,535 141,069 156,673 126,449 185,439 18,593 ------------------ ---------------- ----------------- ---------------- ----------------- ---------------- ----------------- 284 (14,634) 117,101 399,613 574,768 336,627 (7,979) ------------------ ---------------- ----------------- ---------------- ----------------- ---------------- ----------------- -- (1,620) (38,483) (31,896) (33,452) (83,836) (32) -- (80) (365) (140) (250) (216) -- ------------------ ---------------- ----------------- ---------------- ----------------- ---------------- ----------------- -- (1,700) (38,848) (32,036) (33,702) (84,052) (32) ------------------ ---------------- ----------------- ---------------- ----------------- ---------------- ----------------- 7,036 34,201 219,322 524,250 667,515 438,014 10,582 4,182 127,794 380,795 18,332 87,789 816,048 14,101 ------------------ ---------------- ----------------- ---------------- ----------------- ---------------- ----------------- 11,218 161,995 600,117 542,582 755,304 1,254,062 24,683 ================== ================ ================= ================ ================= ================ ================= ------------------------------------------------------------------------------------------------------ Company Participant Contribution Stock loans Cash receivable Total ----------------- ------------------- --------------- ---------------------- --------------------- 258,196 -- -- -- (2,037,547) 3,639 -- -- -- 294,295 663 -- 764 -- 50,288 ----------------- ------------------- --------------- ---------------------- --------------------- 262,498 -- 764 -- (1,692,964) ----------------- ------------------- --------------- ---------------------- --------------------- -- -- -- 796,329 796,329 125,387 -- 42,948 -- 4,016,440 11,246 -- -- -- 258,109 ----------------- ------------------- --------------- ---------------------- --------------------- 136,633 -- 42,948 796,329 5,070,878 ----------------- ------------------- --------------- ---------------------- --------------------- 1,856 2,866 -- -- 267,414 ----------------- ------------------- --------------- ---------------------- --------------------- 400,987 2,866 43,712 796,329 3,645,328 ----------------- ------------------- --------------- ---------------------- --------------------- 151,244 143,034 2,217 (704,108) (258,109) ----------------- ------------------- --------------- ---------------------- --------------------- (714) (83,570) -- -- (2,377,346) (1,344) -- -- -- (10,243) ----------------- ------------------- --------------- ---------------------- --------------------- (2,058) (83,570) -- -- (2,387,589) ----------------- ------------------- --------------- ---------------------- --------------------- 550,173 62,330 45,929 92,221 999,630 217,073 563,795 -- 704,108 23,894,666 ----------------- ------------------- --------------- ---------------------- --------------------- 767,246 626,125 45,929 796,329 24,894,296 ================= =================== =============== ====================== =====================
(Continued) 9 ALBERTO-CULVER 401(k) SAVINGS PLAN Notes to Financial Statements December 31, 2000 and 1999
1999 ------------------------------------------------------------------------------ CIGNA CIGNA Fidelity Fidelity Guaranteed Stock Equity Growth Fidelity Income Index Growth Opportunities Balanced ------------- ----------- ------------- ------------------- ------------- Additions to net assets attributed to: Investment income: Net appreciation (depreciation) in fair value of investments $ -- 740,101 1,290,958 92,068 89,337 Dividends and interest 259,830 -- -- -- -- Interest on participant loans 18,644 8,736 5,698 4,526 3,263 ------------ ---------- ---------- ----------- ---------- Total investment income (loss) 278,474 748,837 1,296,656 96,594 92,600 ------------ ---------- ---------- ----------- ---------- Contributions: Employer -- -- -- -- -- Employee 1,083,493 598,169 496,225 431,939 349,018 Loan repayments 75,593 35,965 40,387 21,066 13,706 ------------ ---------- ---------- ----------- ---------- Total contributions 1,159,086 634,134 536,612 453,005 362,724 ------------ ---------- ---------- ----------- ---------- Total additions 1,437,560 1,382,971 1,833,268 549,599 455,324 ------------ ---------- ---------- ----------- ---------- Transfers among funds, net (150,320) (169,751) 46,870 (505,684) (187,307) ------------ ---------- ---------- ----------- ---------- Deductions: Benefits paid to participants (491,484) (466,526) (375,635) (268,149) (216,440) Administrative fees (3,305) (2,150) (860) (545) (245) ------------ ---------- ---------- ----------- ---------- Total deductions (494,789) (468,676) (376,495) (268,694) (216,685) ------------ ---------- ---------- ----------- ---------- Net increase (decrease) 792,451 744,544 1,503,643 (224,779) 51,332 Net assets available for plan benefits: Beginning of year 4,351,306 3,524,523 3,537,750 2,872,446 2,227,847 ------------ ---------- ---------- ----------- ---------- End of year $ 5,143,757 4,269,067 5,041,393 2,647,667 2,279,179 ============ ========== ========== =========== ========== ------------------------------------------------------------------------------------- Warburg Pincus CIGNA CIGNA CIGNA CIGNA Int'l Lifetime Lifetime Lifetime Lifetime Equity 20 30 40 50 ---------------- ---------------- ---------------- ---------------- ------------ Additions to net assets attributed to: Investment income: Net appreciation (depreciation) in fair value of investments 452,738 7,282 6,425 8,676 13,049 Dividends and interest -- -- -- -- -- Interest on participant loans 1,974 107 733 -- -- --------- --------- --------- --------- --------- Total investment income (loss) 454,712 7,389 7,158 8,676 13,049 --------- --------- --------- --------- --------- Contributions: Employer -- -- -- -- -- Employee 150,490 42,119 35,931 16,404 18,748 Loan repayments 7,668 844 3,121 -- -- --------- --------- --------- --------- --------- Total contributions 158,158 42,963 39,052 16,404 18,748 --------- --------- --------- --------- --------- Total additions 612,870 50,352 46,210 25,080 31,797 --------- --------- --------- --------- --------- Transfers among funds, net (35,992) 14,956 (3,585) 36,796 74,110 --------- --------- --------- --------- --------- Deductions: Benefits paid to participants (66,710) (1,384) (370) -- (276) Administrative fees (50) (50) (90) -- -- --------- --------- --------- --------- --------- Total deductions (66,760) (1,434) (460) -- (276) --------- --------- --------- --------- --------- Net increase (decrease) 510,118 63,874 42,165 61,876 105,631 Net assets available for plan benefits: Beginning of year 795,922 -- -- -- -- --------- --------- --------- --------- --------- End of year 1,306,040 63,874 42,165 61,876 105,631 ========= ========= ========= ========= =========
(Continued) 10
1999 ----------------------------------------------------------------------------------------------------------------------------- CIGNA CIGNA CIGNA CIGNA CIGNA Lazard Lifetime Charter Lg Co Mid Co Sm Co Janus Int'l 60 Balanced Growth II Growth Growth Worldwide Equity ----------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 207 (3,459) 73,272 2,496 33,588 216,144 3,408 -- -- -- -- -- -- -- -- 194 110 -- 931 97 129 ----------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 207 (3,265) 73,382 2,496 34,519 216,241 3,537 ----------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- -- -- -- -- -- -- -- 1,903 29,444 95,352 8,826 18,723 95,355 2,061 -- 467 779 -- 1,420 681 311 ----------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 1,903 29,911 96,131 8,826 20,143 96,036 2,372 ----------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 2,110 26,646 169,513 11,322 54,662 312,277 5,909 ----------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 2,072 101,318 227,020 7,807 33,930 508,829 8,692 ----------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- -- (170) (15,618) (797) (723) (5,058) (500) -- -- (120) -- (80) -- -- ----------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- -- (170) (15,738) (797) (803) (5,058) (500) ----------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 4,182 127,794 380,795 18,332 87,789 816,048 14,101 -- -- -- -- -- -- -- ----------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 4,182 127,794 380,795 18,332 87,789 816,048 14,101 ================= ================ ================ ================ ================ ================ ================ --------------------------------------------------------------------------------------------------- Company Participant Contribution Stock loans Cash receivable Total ---------------- ------------------ --------------- --------------------- -------------------- 1,406 -- -- -- 3,027,696 1,226 -- -- -- 261,056 883 -- -- -- 46,025 ---------------- ------------------ --------------- --------------------- -------------------- 3,515 -- -- -- 3,334,777 ---------------- ------------------ --------------- --------------------- -------------------- -- -- -- 704,108 704,108 25,201 -- -- -- 3,499,401 1,927 -- -- -- 203,935 ---------------- ------------------ --------------- --------------------- -------------------- 27,128 -- -- 704,108 4,407,444 ---------------- ------------------ --------------- --------------------- -------------------- 30,643 -- -- 704,108 7,742,221 ---------------- ------------------ --------------- --------------------- -------------------- 187,037 133,197 (84,555) (449,375) (203,935) ---------------- ------------------ --------------- --------------------- -------------------- (59) (58,829) -- -- (1,968,728) (548) -- -- -- (8,043) ---------------- ------------------ --------------- --------------------- -------------------- (607) (58,829) -- -- (1,976,771) ---------------- ------------------ --------------- --------------------- -------------------- 217,073 74,368 (84,555) 254,733 5,561,515 -- 489,427 84,555 449,375 18,333,151 ---------------- ------------------ --------------- --------------------- -------------------- 217,073 563,795 -- 704,108 23,894,666 ================ ================== =============== ===================== ====================
(Continued) 11 Schedule ALBERTO-CULVER 401(k) SAVINGS PLAN Schedule of Assets Held for Investment Purposes at End of Year December 31, 2000
Market Cost value ------------ ----------- CIGNA Charter Guaranteed Income Fund $ 5,730,412 5,730,412 CIGNA Charter Large Company Stock Index Fund 2,857,979 3,632,861 Fidelity Advisor Equity Growth Fund 3,057,529 4,323,890 Fidelity Advisor Growth Opportunities Fund 1,922,202 2,099,446 Fidelity Advisor Balanced Fund 1,630,742 1,939,426 Warburg Pincus International Equity Fund 931,924 932,464 CIGNA Lifetime 20 83,759 86,458 CIGNA Lifetime 30 235,331 240,838 CIGNA Lifetime 40 144,715 149,870 CIGNA Lifetime 50 161,357 173,041 CIGNA Lifetime 60 10,721 11,218 CIGNA Charter Balanced Fund 168,255 161,995 CIGNA Charter Large Company Stock - Growth II Fund 643,347 600,117 CIGNA Charter Midsize Company Stock - Growth Fund 506,154 542,582 CIGNA Charter Small Company Stock - Growth Fund 770,861 755,304 Janus Worldwide Fund 1,366,190 1,254,062 Lazard International Equity Fund 24,359 24,683 Alberto-Culver Company Class B Common Stock 524,398 767,246 Loans to Participants -- 626,125
See accompanying independent auditors' report. 12 SALLY BEAUTY 401(k) SAVINGS PLAN Financial Statements and Supplemental Schedule December 31, 2000 and 1999 (With Independent Auditors' Report Thereon) SALLY BEAUTY 401(k) SAVINGS PLAN Table of Contents
Page Independent Auditors' Report 1 Statements of Net Assets Available for Plan Benefits 2 Statements of Changes in Net Assets Available for Plan Benefits 3 Notes to Financial Statements 4 Supplemental Schedule Schedule of Assets Held for Investment Purposes at End of Year 12
Independent Auditors' Report To the Plan Administrator of the Sally Beauty 401(k) Savings Plan: We have audited the accompanying statements of net assets available for plan benefits of the Sally Beauty 401(k) Savings Plan (the Plan) as of December 31, 2000 and 1999, and the related statements of changes in net assets available for plan benefits for the years then ended. These financial statements are the responsibility of the Plan's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for plan benefits of the Plan as of December 31, 2000 and 1999, and the changes in net assets available for plan benefits for the years then ended in conformity with accounting principles generally accepted in the United States of America. Our audits were performed for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedule of assets held for investment purposes is presented for the purpose of additional analysis and is not a required part of the basic financial statements but is supplementary information required by the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. This supplemental schedule is the responsibility of the Plan's management. The supplemental schedule has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. /s/ KPMG LLP May 4, 2001 SALLY BEAUTY 401(k) SAVINGS PLAN Statements of Net Assets Available for Plan Benefits December 31, 2000 and 1999
2000 1999 ------------ ------------ Assets: Cash $ 98,327 42,091 Investments, at market value: CIGNA Charter Guaranteed Income Fund 4,266,633 3,567,634 CIGNA Charter Large Company Stock Index Fund 1,765,088 1,749,821 Fidelity Advisor Equity Growth Fund 3,211,745 3,424,054 Fidelity Advisor Growth Opportunities Fund 1,800,702 1,983,989 Fidelity Advisor Balanced Fund 1,639,722 1,543,273 Warburg Pincus International Equity Fund 637,966 839,668 CIGNA Lifetime 20 105,565 24,312 CIGNA Lifetime 30 111,414 46,327 CIGNA Lifetime 40 156,552 59,961 CIGNA Lifetime 50 172,802 117,087 CIGNA Lifetime 60 14,867 4,654 CIGNA Charter Balanced Fund 167,595 81,972 CIGNA Charter Large Company Stock Growth II Fund 443,721 236,059 CIGNA Charter Midsize Company Stock Growth Fund 352,562 60,218 CIGNA Charter Small Company Stock Growth Fund 638,062 160,472 Janus Worldwide Fund 886,596 389,125 Lazard International Equity Fund 52,122 7,410 Alberto-Culver Company Class B Common Stock 543,357 117,314 Loans to participants 553,747 378,179 ------------ ------------ Total assets held for investment 17,619,145 14,833,620 Employer contribution receivable 1,217,441 866,673 ------------ ------------ Net assets available for plan benefits $ 18,836,586 15,700,293 ============ ============
See accompanying notes to financial statements. 2 SALLY BEAUTY 401(k) SAVINGS PLAN Statements of Changes in Net Assets Available for Plan Benefits Years ended December 31, 2000 and 1999
2000 1999 -------------- -------------- Additions to net assets attributed to: Investment income (loss): Net appreciation (depreciation) in fair value of investments $ (1,363,352) 1,758,724 Dividend and interest income 213,535 169,105 Interest on participant loans 39,624 28,874 -------------- -------------- Total investment income (loss) (1,110,193) 1,956,703 -------------- -------------- Contributions: Employer 1,217,441 866,673 Employee 5,224,212 3,654,392 -------------- -------------- Total contributions 6,441,653 4,521,065 -------------- -------------- Total additions 5,331,460 6,477,768 -------------- -------------- Deductions from net assets attributed to: Benefits paid to participants (2,169,482) (1,020,699) Administrative fees (25,685) (17,151) -------------- -------------- Total deductions (2,195,167) (1,037,850) -------------- -------------- Net increase 3,136,293 5,439,918 Net assets available for plan benefits at beginning of year 15,700,293 10,260,375 -------------- -------------- Net assets available for plan benefits at end of year $ 18,836,586 15,700,293 ============== ==============
See accompanying notes to financial statements. 3 SALLY BEAUTY 401(k) SAVINGS PLAN Notes to Financial Statements December 31, 2000 and 1999 (1) Description of the Plan General The Sally Beauty 401(k) Savings Plan (the Plan), established on January 1, 1994, is a defined contribution plan available to eligible employees of Sally Beauty Company (the Company). The Plan is administered by the Company with the assistance of Connecticut General Life Insurance Company, a CIGNA Company. The investment assets of the Plan are held by CG Trust Company (the Trustee). The following description of the Plan provides only general information. Information about the Plan's provisions is contained in the plan document, which may be obtained from the Company. Participation All eligible employees whose customary employment is for at least 1,000 hours within 12 consecutive months, who are not members of a collective bargaining unit, and who are at least 21 years of age may participate in the Plan on the first day of the month coinciding with or following the completion of 12 months of service. On December 31, 2000, there were 2,648 employees in the Plan. Contributions Participants may elect to contribute any amount from 1% to 15% of their eligible compensation, in whole percentage points, subject to the limitations of the Internal Revenue Code, as amended (the Code). The percentage of compensation contributed may be increased or decreased at the election of the participant any time during the year. All eligible participant contributions are tax deferred contributions pursuant to a qualified cash or deferral arrangement subject to the limitations of the Code. Company contributions to the Plan are based on a discretionary match on an annual basis. For the plan years 2000 and 1999, the Company matched $.50 of each dollar on 4% of eligible participant compensation. Investment Options Effective January 1, 1999, additional investment fund options were added to the Plan for the purposes of providing a broader selection of investment options for participants to choose from. Participants may elect to invest their contributions and any Company contributions in eighteen investment options, within seven different asset classes and the Company's Class B Common Stock. Such asset classes include: (i) fixed income, (ii) balanced, (iii) large capitalization equity, (iv) medium capitalization equity, (v) small capitalization equity, (vi) global equity, and (vii) international equity. Participants may invest Company and employee contributions in 1% increments in the Plan's available fund options and may reallocate their investments among the available fund options any time during the year. (Continued) 4 SALLY BEAUTY 401(k) SAVINGS PLAN Notes to Financial Statements December 31, 2000 and 1999 None of the investment funds other than the CIGNA Charter Guaranteed Income Fund guarantee a positive return to the participant. This fund invests in a diversified portfolio of high quality, fixed income instruments within CIGNA's General Account. Principal and interest are backed by the underlying assets of CIGNA. Dividend and interest income received on investments made by the investment funds are reinvested accordingly in the same funds. Vesting Participants are fully vested in the current value of their contributions and earnings thereon, and become fully vested in the Company contributions and related earnings credited to their accounts based upon their years of vesting service as shown in the following table:
Years of Vested vesting service percentage ------------------------ -------------- Less than 1 0% 1 but less than 2 20 2 but less than 3 40 3 but less than 4 60 4 but less than 5 80 5 or more 100
Participants who are age 65 or older, die, or become permanently disabled are automatically 100% vested in the value of Company contributions and related earnings or losses credited to their account. Distribution Options Upon termination of employment, participants may elect to receive the total value of their account attributable to their contributions, as well as the vested value of their Company contributions in cash, annual installments, direct rollover, or an annuity according to the provisions of the Plan. Alternatively, participants may elect to defer the distribution of their account balance until age 65. Such deferred benefits remain in the Plan and participate in the earnings and losses of the investments. Participant Loans Participants may borrow against their account balances for periods of one to five years. In the event the loan is used to purchase a primary residence, an extended period of time for repayment is allowed. Participant loans are limited to the lesser of $50,000 or 50% of the participants' vested account balance and bear interest at a rate of prime plus 1% at the time the loan is made. Outstanding participant loans are considered investments of the Plan and repayments of principal and interest are credited to the borrowing participants' account using his or her current investment election. At December 31, 2000 and December 31, 1999, interest rates on outstanding loans ranged from 7% to 10.50% and 7% to 9.50%, respectively. (Continued) 5 SALLY BEAUTY 401(k) SAVINGS PLAN Notes to Financial Statements December 31, 2000 and 1999 Forfeitures Company contributions, and earnings thereon, forfeited by terminating employees are used to reduce future Company contributions to the Plan. The Company will reinstate forfeited balances to the accounts of employees who rejoin the Company within five years of their termination. In 2000 and 1999, Company contributions were reduced by forfeiture amounts of $41,428 and $65,028, respectively. Administrative Expenses Administrative fees are paid by the Plan. All other Plan-related expenses are paid by the Company. Investment management fees are included in the investment fund yields. (2) Summary of Significant Accounting Policies Basis of Accounting The Company maintains the accounts of the Plan on an accrual basis. Asset Valuation The investment assets in the trust are valued at the quoted closing sale price on the last business day of the year. Securities traded in over- the-counter markets and listed securities for which no sale was reported on the last business day of the year are valued at their last reported bid price. Participant loans are stated at contract value which approximates fair value. Security Transactions and Investment Income Purchases and sales of investments in the Plan are recorded on a trade date basis. When investments are sold, the difference between the original cost (computed on an average cost basis) and the proceeds received are recorded as a realized gain or loss. Interest and dividend income are recorded when earned. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires the use of plan administrator estimates and assumptions that affect the reported amounts of net assets available for plan benefits at the date of the financial statements and the changes in net assets available for plan benefits during the reporting period and related disclosures. Actual results could differ from these estimates. (3) Termination of the Plan It is the intent of the Company that the Plan continue into the future; however, the Company reserves the right to terminate the Plan. In the event the Plan is terminated, participants would become fully vested in their accounts, and the assets of the Plan would be distributed to the participants in proportion to their respective interests in the Plan. (Continued) 6 SALLY BEAUTY COMPANY 401(k) SAVINGS PLAN Notes to Financial Statements December 31, 2000 and 1999 (4) Tax Status The Plan has received a favorable determination letter from the Internal Revenue Service (IRS), dated June 19, 1997, indicating that the Plan is qualified under Section 401(a) of the Code and exempt from tax under Section 501(a) of the Code. The plan administrator is not aware of any activity or transaction that may adversely affect the qualified status of the Plan. (5) Other Investment Information The fair values of investment fund balances which represent five percent or more of the Plan's net assets as of December 31, 2000 and 1999 are as follows: 2000 1999 -------------- -------------- CIGNA Charter Guaranteed Income Fund $ 4,266,633 3,567,634 CIGNA Charter Large Company Stock Index Fund 1,765,088 1,749,821 Fidelity Advisor Equity Growth Fund 3,211,745 3,424,054 Fidelity Advisor Growth Opportunities Fund 1,800,702 1,983,989 Fidelity Advisor Balanced Fund 1,639,722 1,543,273 Warburg Pincus International Equity Fund 637,966 839,668
(Continued) 7 SALLY BEAUTY 401(k) SAVINGS PLAN Notes to Financial Statements December 31, 2000 and 1999 (6) Changes in Net Assets by Fund - Years Ended December 31, 2000 and December 31, 1999
2000 ---------------------------------------------------------------------- CIGNA CIGNA Fidelity Fidelity Guaranteed Stock Equity Growth Fidelity Income Index Growth Opportunities Balanced ---------- --------- -------- ------------- -------- Additions to net assets attributed to: Investment income (loss): Net appreciation (depreciation) in fair value of investments $ -- (176,956) (403,767) (379,333) (95,532) Dividends and interest 210,927 -- -- -- -- Interest on participant loans 12,454 3,385 5,436 4,316 4,245 ---------- --------- --------- --------- -------- Total investment income (loss) 223,381 (173,571) (398,331) (375,017) (91,287) ---------- --------- --------- --------- -------- Contributions: Employer -- -- -- -- -- Employee 1,000,851 529,191 813,105 473,476 369,742 Loan repayments 62,265 17,353 25,287 21,860 22,622 ---------- --------- --------- --------- -------- Total contributions 1,063,116 546,544 838,392 495,336 392,364 ---------- --------- --------- --------- -------- Total additions (reductions) 1,286,497 372,973 440,061 120,319 301,077 ---------- --------- --------- --------- -------- Transfers among funds, net 99,967 (127,660) (216,498) (53,690) (15,707) ---------- --------- --------- --------- -------- Deductions: Benefits paid to participants (679,457) (224,103) (433,897) (247,822) (188,120) Administrative fees (8,008) (5,943) (1,975) (2,094) (801) ---------- --------- --------- --------- -------- Total deductions (687,465) (230,046) (435,872) (249,916) (188,921) ---------- --------- --------- --------- -------- Net increase (decrease) 698,999 15,267 (212,309) (183,287) 96,449 Net assets available for plan benefits: Beginning of year 3,567,634 1,749,821 3,424,054 1,983,989 1,543,273 ---------- --------- --------- --------- --------- End of year $4,266,633 1,765,088 3,211,745 1,800,702 1,639,722 ========== ========= ========= ========= ========= ------------------------------------------------------------------------------- Warburg Pincus CIGNA CIGNA CIGNA CIGNA Int'l Lifetime Lifetime Lifetime Lifetime Equity 20 30 40 50 --------- ---------- ---------- ---------- ---------- Additions to net assets attributed to: Investment income (loss): Net appreciation (depreciation) in fair value of investments (256,165) (1,956) (1,074) (1,533) (99) Dividends and interest -- -- -- -- -- Interest on participant loans 2,554 273 241 934 430 ---------- ----------- ----------- ----------- ------------ Total investment income (loss) (253,611) (1,683) (833) (599) 331 ---------- ----------- ----------- ----------- ------------ Contributions: Employer -- -- -- -- -- Employee 121,601 78,702 61,133 75,646 52,383 Loan repayments 16,227 1,811 2,217 4,386 1,771 ---------- ----------- ----------- ----------- ------------ Total contributions 137,828 80,513 63,350 80,032 54,154 ---------- ----------- ----------- ----------- ------------ Total additions (reductions) (115,783) 78,830 62,517 79,433 54,485 ---------- ----------- ----------- ----------- ------------ Transfers among funds, net 11,123 11,193 6,937 32,161 4,246 ---------- ----------- ----------- ----------- ------------ Deductions: Benefits paid to participants (96,798) (8,270) (4,154) (14,550) (2,733) Administrative fees (244) (500) (213) (453) (283) ---------- ----------- ----------- ----------- ------------ Total deductions (97,042) (8,770) (4,367) (15,003) (3,016) ---------- ----------- ----------- ----------- ------------ Net increase (decrease) (201,702) 81,253 65,087 96,591 55,715 Net assets available for plan benefits: Beginning of year 839,668 24,312 46,327 59,961 117,087 ---------- ----------- ----------- ----------- ------------ End of year 637,966 105,565 111,414 156,552 172,802 ========== =========== =========== =========== ============
8 (Continued)
2000 ------------------------------------------------------------------------------------------------------------------------------ CIGNA CIGNA CIGNA CIGNA CIGNA Lazard Lifetime Charter Lg Co Mid Co Sm Co Janus Int'l 60 Balanced Growth II Growth Growth Worldwide Equity ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 350 (3,997) (64,555) 32,205 (3,790) (186,392) (2,816) -- -- -- -- -- -- -- 1 217 587 250 630 1,639 27 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 351 (3,780) (63,968) 32,455 (3,160) (184,753) (2,789) ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- -- -- -- -- -- -- -- 9,326 107,778 312,120 101,826 263,903 583,387 41,965 2 601 2,029 1,521 3,842 6,919 117 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 9,328 108,379 314,149 103,347 267,745 590,306 42,082 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 9,679 104,599 250,181 135,802 264,585 405,553 39,293 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 1,397 (10,795) (16,135) 176,932 256,201 177,392 7,876 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- (829) (6,486) (25,543) (20,116) (42,158) (84,941) (2,446) (34) (1,695) (841) (274) (1,038) (533) (11) ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- (863) (8,181) (26,384) (20,390) (43,196) (85,474) (2,457) ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 10,213 85,623 207,662 292,344 477,590 497,471 44,712 4,654 81,972 236,059 60,218 160,472 389,125 7,410 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 14,867 167,595 443,721 352,562 638,062 886,596 52,122 ================ ================ ================ ================ ================ ================ ================ ------------------------------------------------------------------------------------------------ Company Participant Contribution Stock loans Cash receivable Total ---------------- ------------------ ------------ --------------------- -------------------- 182,058 -- -- -- (1,363,352) 2,608 -- -- -- 213,535 502 -- 1,503 -- 39,624 ---------------- ------------------ ------------ --------------------- -------------------- 185,168 -- 1,503 -- (1,110,193) ---------------- ------------------ ------------ --------------------- -------------------- -- -- -- 1,217,441 1,217,441 137,501 -- 90,576 -- 5,224,212 1,633 -- -- -- 192,463 ---------------- ------------------ ------------ --------------------- -------------------- 139,134 -- 90,576 1,217,441 6,634,116 ---------------- ------------------ ------------ --------------------- -------------------- 324,302 -- 92,079 1,217,441 5,523,923 ---------------- ------------------ ------------ --------------------- -------------------- 124,577 240,536 (35,843) (866,673) (192,463) ---------------- ------------------ ------------ --------------------- -------------------- (22,091) (64,968) -- -- (2,169,482) (745) -- -- -- (25,685) ---------------- ------------------ ------------ --------------------- -------------------- (22,836) (64,968) -- -- (2,195,167) ---------------- ------------------ ------------ --------------------- -------------------- 426,043 175,568 56,236 350,768 3,136,293 117,314 378,179 42,091 866,673 15,700,293 ---------------- ------------------ ------------ --------------------- -------------------- 543,357 553,747 98,327 1,217,441 18,836,586 ================ ================== ============ ===================== ====================
(Continued) 9 SALLY BEAUTY 401(k) SAVINGS PLAN Notes to Financial Statements December 31, 2000 and 1999
1999 ---------------------------------------------------------------------------- CIGNA CIGNA Fidelity Fidelity Guaranteed Stock Equity Growth Fidelity Income Index Growth Opportunities Balanced -------------- ----------- ----------- --------------- ------------ Additions to net assets attributed to: Investment income: Net appreciation (depreciation) in fair value of investments $ -- 267,346 843,291 62,447 58,410 Dividends and interest 168,512 -- -- -- -- Interest on participant loans 10,962 2,488 3,566 3,852 3,847 ------------- ---------- ----------- ----------- ----------- Total investment income (loss) 179,474 269,834 846,857 66,299 62,257 ------------- ---------- ----------- ----------- ----------- Contributions: Employer -- -- -- -- -- Employee 974,939 489,545 589,459 476,969 356,809 Loan repayments 62,656 13,553 18,718 18,115 19,357 ------------- ---------- ----------- ----------- ----------- Total contributions 1,037,595 503,098 608,177 495,084 376,166 ------------- ---------- ----------- ----------- ----------- Total additions 1,217,069 772,932 1,455,034 561,383 438,423 ------------- ---------- ----------- ----------- ----------- Transfers among funds, net (60,081) 11,927 89,242 (192,134) (20,499) ------------- ---------- ----------- ----------- ----------- Deductions: Benefits paid to participants (345,738) (105,301) (186,483) (144,752) (128,284) Administrative fees (6,588) (5,386) (1,569) (1,772) (502) ------------- ---------- ----------- ----------- ----------- Total deductions (352,326) (110,687) (188,052) (146,524) (128,786) ------------- ---------- ----------- ----------- ----------- Net increase 804,662 674,172 1,356,224 222,725 289,138 Net assets available for plan benefits: Beginning of year 2,762,972 1,075,649 2,067,830 1,761,264 1,254,135 ------------- ---------- ----------- ----------- ----------- End of year $ 3,567,634 1,749,821 3,424,054 1,983,989 1,543,273 ============= ========== =========== =========== =========== ----------------------------------------------------------------------- Warburg Pincus CIGNA CIGNA CIGNA CIGNA Int'l Lifetime Lifetime Lifetime Lifetime Equity 20 30 40 50 ---------- ----------- ----------- ----------- ---------- Additions to net assets attributed to: Investment income: Net appreciation (depreciation) in fair value of investments 289,080 2,659 5,560 8,092 4,421 Dividends and interest -- -- -- -- -- Interest on participant loans 2,119 233 156 616 199 ---------- ----------- ----------- ----------- ---------- Total investment income (loss) 291,199 2,892 5,716 8,708 4,620 ---------- ----------- ----------- ----------- ---------- Contributions: Employer -- -- -- -- -- Employee 125,016 21,609 26,694 31,694 109,570 Loan repayments 8,856 897 871 2,397 1,165 ---------- ----------- ----------- ----------- ---------- Total contributions 133,872 22,506 27,565 34,091 110,735 ---------- ----------- ----------- ----------- ---------- Total additions 425,071 25,398 33,281 42,799 115,355 ---------- ----------- ----------- ----------- ---------- Transfers among funds, net (54,844) (251) 13,186 17,620 4,582 ---------- ----------- ----------- ----------- ---------- Deductions: Benefits paid to participants (61,915) (735) (132) (367) (2,810) Administrative fees (196) (100) (8) (91) (40) ---------- ----------- ----------- ----------- ---------- Total deductions (62,111) (835) (140) (458) (2,850) ---------- ----------- ----------- ----------- ---------- Net increase 308,116 24,312 46,327 59,961 117,087 Net assets available for plan benefits: Beginning of year 531,552 -- -- -- -- ---------- ----------- ----------- ----------- ---------- End of year 839,668 24,312 46,327 59,961 117,087 ========== =========== =========== =========== ==========
10 (Continued)
1999 ---------------------------------------------------------------------------------------------------------------------------- CIGNA CIGNA CIGNA CIGNA CIGNA Lazard Lifetime Charter Lg Co Mid Co Sm Co Janus Int'l Company Participant 60 Balanced Growth II Growth Growth Worldwide Equity Stock loans ---------- ---------- ----------- ---------- ---------- ----------- -------- --------- ------------- 212 (2,734) 43,383 7,739 46,294 117,027 803 4,694 -- -- -- -- -- -- -- -- 593 -- -- 18 152 15 37 217 25 67 -- ---------- ----------- ----------- ---------- ---------- ----------- -------- --------- ------------- 212 (2,716) 43,535 7,754 46,331 117,244 828 5,354 -- ---------- ----------- ----------- ---------- ---------- ----------- -------- --------- ------------- -- -- -- -- -- -- -- -- -- 5,048 71,843 92,816 30,517 49,647 96,853 6,418 58,579 -- -- 85 751 186 164 1,027 152 302 -- ---------- ---------- ----------- ---------- ---------- ----------- -------- --------- ------------- 5,048 71,928 93,567 30,703 49,811 97,880 6,570 58,881 -- ---------- ---------- ----------- ---------- ---------- ----------- -------- --------- ------------- 5,260 69,212 137,102 38,457 96,142 215,124 7,398 64,235 -- ---------- ---------- ----------- ---------- ---------- ----------- -------- --------- ------------- (520) 15,922 100,648 21,875 64,444 186,665 27 53,503 97,561 ---------- ---------- ----------- ---------- ---------- ----------- -------- --------- ------------- (80) (2,921) (1,610) (74) (48) (12,525) (15) (98) (26,811) (6) (241) (81) (40) (66) (139) -- (326) -- ---------- ---------- ----------- ---------- ---------- ----------- -------- --------- ------------- (86) (3,162) (1,691) (114) (114) (12,664) (15) (424) (26,811) ---------- ---------- ----------- ---------- ---------- ----------- -------- --------- ------------- 4,654 81,972 236,059 60,218 160,472 389,125 7,410 117,314 70,750 -- -- -- -- -- -- -- -- 307,429 ---------- ---------- ----------- ---------- ---------- ----------- -------- --------- ------------- 4,654 81,972 236,059 60,218 160,472 389,125 7,410 117,314 378,179 ========== ========== =========== ========== ========== =========== ======== ========= ============= ----------------------------------------------- Contribution Cash receivable Total ---------- -------------- ------------- -- -- 1,758,724 -- -- 169,105 305 -- 28,874 ---------- -------------- ------------- 305 -- 1,956,703 ---------- -------------- ------------- -- 866,673 866,673 40,367 -- 3,654,392 -- -- 149,252 ---------- -------------- ------------- 40,367 866,673 4,670,317 ---------- -------------- ------------- 40,672 866,673 6,627,020 ---------- -------------- ------------- (22,909) (475,216) (149,252) ---------- -------------- ------------- -- -- (1,020,699) -- -- (17,151) ---------- -------------- ------------- -- -- (1,037,850) ---------- -------------- ------------- 17,763 391,457 5,439,918 24,328 475,216 10,260,375 ---------- -------------- ------------- 42,091 866,673 15,700,293 ========== ============== =============
(Continued) 11 Schedule SALLY BEAUTY 401(k) SAVINGS PLAN Schedule of Assets Held for Investment Purposes at End of Year December 31, 2000
Market Cost value ------------- ------------- CIGNA Charter Guaranteed Income Fund $ 4,266,633 4,266,633 CIGNA Charter Large Company Stock Index Fund 1,548,226 1,765,088 Fidelity Advisor Equity Growth Fund 2,500,299 3,211,745 Fidelity Advisor Growth Opportunities Fund 1,756,426 1,800,702 Fidelity Advisor Balanced Fund 1,465,708 1,639,722 Warburg Pincus International Equity Fund 642,029 637,966 CIGNA Lifetime 20 105,439 105,565 CIGNA Lifetime 30 107,499 111,414 CIGNA Lifetime 40 152,640 156,552 CIGNA Lifetime 50 168,716 172,802 CIGNA Lifetime 60 14,358 14,867 CIGNA Charter Balanced Fund 171,579 167,595 CIGNA Charter Large Company Stock - Growth Fund 479,273 443,721 CIGNA Charter Midsize Company Stock - Growth Fund 321,581 352,562 CIGNA Charter Small Company Stock - Growth Fund 606,249 638,062 Janus Worldwide Fund 986,981 886,596 Lazard International Equity Fund 53,686 52,122 Alberto Culver Company Class B Common Stock 356,463 543,357 Loans to Participants -- 553,747
See accompanying independent auditors' report. 12