Meredith Corporation

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

 

FORM 11-K

 

 

 

[X]    ANNUAL REPORT PURSUANT TO SECTION 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 [FEE REQUIRED]

          For the fiscal year ended December 31, 2001

                                                           OR

[   ]    TRANSITION REPORT PURSUANT TO SECTION 15(D) OF THE SECURITIES EXCHANGE

          ACT OF 1934 [NO FEE REQUIRED]

          For the transition period from ______________ to ______________

          Commission file number 1-5128

 

 A.     Full title of the plan and the address of the plan, if different from that of the issuer named below:

          Meredith Savings and Investment Plan

 

 B.     Name of issuer of the securities held pursuant to the plan and the address of its principal executive office:

 

         Meredith Corporation

         1716 Locust Street

         Des Moines, Iowa 50309-3023

 

 


 

MEREDITH SAVINGS AND INVESTMENT PLAN

Financial Statements and Schedule

December 31, 2001 and 2000

(With Independent Auditors' Report Thereon)

 


MEREDITH SAVINGS AND INVESTMENT PLAN

 

Table of Contents

   

Page

Independent Auditors' Report

 

1

Statements of Net Assets Available for Benefits

 

2

Statements of Changes in Net Assets Available for Benefits

 

3

Notes to Financial Statements

 

4

Schedule

   

1    Item 27a - Schedule of Assets Held for Investment Purposes

 

7

 

 


Independent Auditors' Report

 

Meredith Savings and Investment Plan Committee
Des Moines, Iowa:

 

We have audited the accompanying statements of net assets available for benefits of the Meredith Savings and Investment Plan as of December 31, 2001 and 2000, and the related statements of changes in net assets available for benefits for the years then ended. These financial statements are the responsibility of the 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 audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of the Meredith Savings and Investment Plan as of December 31, 2001 and 2000, and the changes in net assets available for 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 of Meredith Savings and Investment Plan taken as a whole. The supplemental information included in schedule 1 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. 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

Des Moines, Iowa
June 4, 2002

 


 

MEREDITH SAVINGS AND INVESTMENT PLAN
Statements of Net Assets Available for Benefits
December 31, 2001 and 2000

 

                2001   2000
Assets:          

 

 

 

 

  Investments:        

 

 

 

 

 

Meredith Corporation common and Class B stock (note 2)  

 

$

34,477,084   

$

37,579,985   

   

Managed variable return funds 

 

 

 

118,798,951   

 

134,097,799   

   

 

 Total investments

 

 

153,276,035   

171,677,784   

   

 

 Net assets available for benefits (note 3)

 

$

153,276,035   

171,677,784   

See accompanying notes to financial statements.   


 - 2 -


MEREDITH SAVINGS AND INVESTMENT PLAN
Statements of Changes in Net Assets Available for Benefits
Years ended December 31, 2001 and 2000

 

                2001   2000
Income:           
  Contributions:          
    Employer   $ 4,604,198    $ 4,515,410   
    Employee     10,699,466      11,153,648   
                15,303,664      15,669,058   
  Investment income:          
    Dividends     1,058,835      1,666,810   
    Interest     14,556      19,049   
                1,073,391      1,685,859   
  Net unrealized depreciation in investments during the year     (7,210,259)     (16,678,601)  
  Advancement of funds     ---         98,183   
          Total income     9,166,796      774,499   

Expenses: 

         
  Benefits and withdrawals paid to employees     27,470,475      19,121,805   
  Management fees     98,070      64,998   
          Total expenses     27,568,545      19,186,803   
          Decrease in net assets available for benefits     (18,401,749)     (18,412,304)  
Net assets available for benefits:        
  Beginning of year     171,677,784      190,090,088   
  End of year   $ 153,276,035    $ 171,677,784   

See accompanying notes to financial statements.

     

 - 3 -


 

MEREDITH SAVINGS AND INVESTMENT PLAN

Notes to Financial Statements

December 31, 2001 and 2000

 

(1) Summary of Significant Accounting Policies

(a) Basis of Presentation

The accompanying financial statements of the Meredith Savings and Investment Plan (the Plan) have been prepared on an accrual basis and are subject to the provisions of the Employee Retirement Income Security Act of 1974.

(b) Description of Plan and Plan Changes

The following brief description of the Plan provides general information only. Participants should refer to the Plan Document for more complete information.

On a pre-tax basis, employees may contribute a maximum of 15% (raised from 12% effective April 1, 2001) of their compensation to the Plan, subject to certain limitations. Meredith Corporation (the Company) matches 100% of the first 3% of a participant's eligible compensation contributed to the Plan and 50% of the next 2% of a participant's eligible compensation contributed to the Plan. Company matching contributions are invested in the same investment options as the employee contributions.

On November 1, 2000, the MFS Capital Opportunities Fund and the Morgan Stanley Dean Witter MAS Mid-Cap Value Fund were added to the Plan. The Plan also added two new premixed fund options, Premixed Option A and Premixed Option B.

As of December 29, 2000, the Plan no longer offered the Vanguard Windsor II Fund, the Vanguard US Growth Fund and the Vanguard Wellington Fund as investment options. Participants were given the option to transfer their investments in these funds to other Plan funds. If participants did not elect to transfer the investments by December 31, 2000, participant's balances in the discontinued funds were automatically transferred on January 3, 2001. The Vanguard Windsor II Fund and Vanguard U.S. Growth Fund investments were automatically reinvested in the Vanguard Institutional Index Fund and the Vanguard Wellington Fund was automatically reinvested in Premixed Option B.

(c) Plan Administration and Management

The Plan is administered by the Meredith Savings and Investment Plan Committee, whose members are appointed by certain officers of the Company under authority granted by the board of directors. Under terms of a trust agreement, the trustee receives contributions, invests and safekeeps such contributions and investment income thereon, and makes distributions, all in accordance with the terms of the Plan. Wells Fargo Bank Minnesota, N.A. is the Plan Trustee.

Fund management fees are deducted from the applicable funds. Other administrative costs, such as audit fees, are paid directly by the Company.

(d) Investment Valuation

Investments in the Company's common and Class B stock and managed variable return funds are stated at fair value.

Securities transactions are accounted for on the trade date.

                                                                                             

 - 4   (Continued) -


 

MEREDITH SAVINGS AND INVESTMENT PLAN

Notes to Financial Statements

December 31, 2001 and 2000

 

(2) Investments

Through August 31, 1998 investments in common stock of the Company were purchased directly from the Company at a price per share equal to the lower of the month-end closing price or the average daily closing price for the calendar month of the Company's shares as reported in the New York Stock Exchange (NYSE) composite transactions. Effective September 1, 1998 common stock of the Company is purchased at the daily closing price as reported in the NYSE composite. This change to unitized accounting was necessary as participants can change investment options or perform transfers daily. No Class B stock of the Company is publicly traded or available for sale, however, all Class B shares are convertible to shares of the Company's common stock on a one-to-one basis.

The Plan held shares of the Company's common stock and Class B stock at December 31, 2001 and 2000 as follows:

   

2001

 

2000

Common stock shares

 

898,883

 

1,070,628

Class B shares

 

58,190

 

86,406

         

The market value of the Company's common and Class B stock as reported in the New York Stock Exchange composite transactions was $35.65 per share at December 31, 2001 and $32.188 per share at December 31, 2000. Included in the carrying value of common and Class B stock is cost of $13,202,362 and $15,720,272 at December 31, 2001 and 2000, respectively, and unrealized appreciation of $21,274,722 and $21,859,713 at December 31, 2001 and 2000, respectively.

The fair value of individual investments that represent 5% or more of the Plan's assets at December 31, 2001 and 2000 were as follows:

2001

2000

Meredith Common and Class B Stock

$

34,477,084

$

37,579,985

Vanguard Institutional Index Fund

32,847,703

29,715,056

Wells Fargo:

Stable Return Fund

24,009,767

23,445,129

Diversified Equity Fund

21,401,543

28,468,609

Small Company Growth Fund

11,841,560

12,953,161

Janus Overseas Fund

7,098,324

10,262,820

(3) Plan Benefits and Termination

Participants are immediately fully vested in their contributions to the Plan.

Participants are fully vested in all employer contributions made on or after January 1, 1989. Participants' vested interest in employer contributions made prior to January 1, 1989 will be determined in accordance with provisions set forth in the Plan and previous plans. Although the Company has not expressed any intent to terminate the Plan, it may do so at any time.

 

 - 5  (Continued)-


 

MEREDITH SAVINGS AND INVESTMENT PLAN

Notes to Financial Statements

December 31, 2001 and 2000

 

(4) Income Taxes

The Company has received a tax determination letter from the Internal Revenue Service stating that the Plan qualifies under the provisions of Sections 401(a) and 501(a) of the Internal Revenue Code and is exempt from federal income taxes. Future qualifications of the Plan will depend on continuing operation in compliance with Internal Revenue Service regulations.

Participating employees will not be obligated for income taxes until distributions are made to them and then only to the extent that such distributions, including the effect, if any, of "net unrealized appreciation," exceed their after-tax contributions, if applicable.

 

 

 - 6 -


 

                        Schedule 1
 

MEREDITH SAVINGS AND INVESTMENT PLAN

Item 27a - Schedule of Assets Held for Investment Purposes
December 31, 2001 and 2000

 

  Fair  
Identity   Shares   value   Cost
2001:                     
  Meredith Corporation:                    
    Common stock shares           898,883    $ 32,382,679   

$

13,029,487   
    Class B shares           58,190      2,094,405      172,875   
  Vanguard Funds:                    
    Institutional Index               32,847,703      36,770,716   
  Wells Fargo Funds:                    
    Stable Return               24,009,767      19,770,030   
    Diversified Equity               21,401,543      19,214,317   
    Small Company Growth               11,841,560      13,281,416   
  Frank Russell Fixed Income Fund               7,093,454      6,547,215   
  Janus Overseas Fund               7,098,324      10,019,318   
  Morgan Stanley Dean Witter:                    
    MAS Mid Cap Value Fund               4,288,945      4,384,519   
  MFS Capital Opportunities Fund               3,184,989      4,138,663   
  Premixed Option A               857,155      895,444   
  Premixed Option B               6,175,511      6,671,591   
                  $ 153,276,035    $ 134,895,591   
2000:                     
  Meredith Corporation:                    
    Common stock shares           1,070,628    $ 34,807,929    $ 15,463,571   
    Class B shares           86,406      2,772,056      256,701   
  Vanguard Funds:                    
    Institutional Index               29,715,056      29,444,617   
    U.S. Growth               6,432,986      8,929,907   
    Wellington               4,861,124      4,893,985   
    Windsor II               5,939,093      5,957,939   
  Wells Fargo Funds:                    
    Stable Return               23,445,129      19,549,075   
    Diversified Equity               28,468,609      21,637,258   
    Small Company Growth               12,953,161      15,038,855   
  Frank Russell Fixed Income Fund               4,187,281      3,909,116   
  Janus Overseas Fund               10,262,820      11,758,245   
  Morgan Stanley Dean Witter:                    
    MAS Mid Cap Value Fund               2,541,239      2,756,120   
  MFS Capital Opportunities Fund               3,070,821      3,415,450   
  Premixed Option A               599,423      592,911   
  Premixed Option B               1,621,057      1,620,164   
                  $ 171,677,784    $ 145,223,914   

See accompanying independent auditors' report.


 - 7 -


 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees (or other persons who administer the employee benefit plan) have duly caused this annual report to be signed by the undersigned thereunto duly authorized.

 

 

 

MEREDITH SAVINGS AND INVESTMENT PLAN

(Name of Plan)

 

 

Date June 26, 2002

By

 

 

/s/  John S. Zieser

John S. Zieser

Committee Member

 

 

Date June 26, 2002

By

/s/  Suku V. Radia

Suku V. Radia

Committee Member

 

 

Date June 26, 2002

By

/s/  Michael M. Monson

Michael M. Monson

Committee Member

 

 

Date June 26, 2002

By

/s/  Laurie M. Stilwell

Laurie M. Stilwell

Committee Member

 

 

Date June 26, 2002

By

/s/ Karla K. Jeffries

Karla K. Jeffries

Committee Member

 

 

Date June 26, 2002

By

/s/  Doug R. Lowe

Doug R. Lowe

Committee Member

 

 

Date June 26, 2002

By

/s/  Thomas J. Ferree

Thomas J. Ferree

Committee Member

 

 


 

Index to Exhibits

 

Exhibit

Number          Item


23                  Independent Auditors' Consent