10-K 1 a2074246z10-k.htm 10K
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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-K

(Mark One)

ý	ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2001
or

o	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 1-1361

TOOTSIE ROLL INDUSTRIES, INC.
(Exact name of Registrant as specified in its charter)

Virginia (State or other jurisdiction of incorporation or organization)		22-1318955 (IRS Employer Identification No.)
7401 South Cicero Avenue, Chicago, Illinois (Address of principal executive offices)		60629 (Zip Code)

Registrant's Telephone Number: (773) 838-3400

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Name of each exchange on which registered
Common Stock—Par Value $.69⁴/9 Per Share		New York Stock Exchange
Securities registered pursuant to Section 12(g) of the Act:
Class B Common Stock—Par Value $.69⁴/9 Per Share

Indicate by check mark whether the registrant: (1)[nb]has filed all reports required to be filed by Section 13 or 15(d)[nb]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)[nb]has been subject to such filing requirements for the past 90 days.

Yes ý No o

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. o

As of March 5, 2002, 33,884,046 shares of Common Stock, par value $.69⁴/9 per share, were outstanding and the aggregate market value of the Common Stock (based upon the closing price of the stock on the New York Stock Exchange on such date) held by non-affiliates was approximately $841,250,336. As of March 5, 2002, 16,304,276 shares of Class B Common Stock, par value $.69⁴/9 per share, were outstanding. Class B Common Stock is not traded on any exchange, is restricted as to transfer or other disposition, but is convertible into Common Stock on a share-for-share basis. Upon such conversion, the resulting shares of Common Stock are freely transferable and publicly traded. Assuming all 16,304,276 shares of outstanding Class B Common Stock were converted into Common Stock, the aggregate market value of Common Stock held by non-affiliates on March 5, 2002 (based upon the closing price of the stock on the New York Stock Exchange on such date) would have been approximately $893,438,434. Determination of stock ownership by non-affiliates was made solely for the purpose of this requirement, and the Registrant is not bound by these determinations for any other purpose.

DOCUMENTS INCORPORATED BY REFERENCE

1. Portions of the Company's Annual Report to Shareholders for the year ended December 31, 2001 (the "2001 Report") are incorporated by reference in Parts I and II of this report.

2. Portions of the Company's Definitive Proxy Statement for the Company's 2002 Annual Meeting of Shareholders (the "2002 Proxy Statement") are incorporated by reference in Part III of this report.

TABLE OF CONTENTS

ITEM 1.	Business	1
ITEM 2.	Properties	2
ITEM 3.	Legal Proceedings	3
ITEM 4.	Submission of Matters to a Vote of Security Holders	3
ITEM 5.	Market for Registrant's Common Equity and Related Stockholder Matters	4
ITEM 6.	Selected Financial Data	4
ITEM 7.	Management's Discussion and Analysis of Financial Condition and Results of Operations	4
ITEM 8.	Financial Statements and Supplementary Data	4
ITEM 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	4
ITEM 10.	Directors and Executive Officers of the Registrant	4
ITEM 11.	Executive Compensation	5
ITEM 12.	Security Ownership of Certain Beneficial Owners and Management	5
ITEM 13.	Certain Relationships and Related Transactions	5
ITEM 14.	Exhibits, Financial Statement Schedules and Reports on Form 8-K	5

-i-

Forward-Looking Information

From time to time, in the Company's statements and written reports, including this report, the Company discusses its expectations regarding future performance by making certain "forward-looking statements." These forward-looking statements are based on currently available competitive, financial and economic data and management's views and assumptions regarding future events. Such forward-looking statements are inherently uncertain, and actual results may differ materially from those expressed or implied herein. Consequently, the Company wishes to caution readers not to place undue reliance on any forward-looking statements. In connection with the "safe harbor provisions" of the Private Securities Litigation Reform Act of 1995, the Company notes the following factors which, among others, could cause future results to differ materially from the forward-looking statements, expectations and assumptions expressed or implied herein. Among the factors that could impact the Company's ability to achieve its stated goals are the following: (i) significant competitive activity, including advertising, promotional and price competition, and changes in consumer demand for the Company's products; (ii) fluctuations in the cost and availability of various raw materials; and (iii) inherent risks in the marketplace associated with new product introductions, including uncertainties about trade and consumer acceptance. In addition, the Company's results may be affected by general factors, such as economic conditions, political developments, currency exchange rates, interest and inflation rates, accounting standards, taxes, and laws and regulations affecting the Company in markets where it competes.

PART I

ITEM 1. Business.

Tootsie Roll Industries, Inc. and its consolidated subsidiaries (the "Company") have been engaged in the manufacture and sale of candy for over 100 years. This is the only industry segment in which the Company operates and is its only line of business. The majority of the Company's products are sold under the registered trademarks TOOTSIE ROLL, TOOTSIE ROLL POPS, CHILD'S PLAY, CARAMEL APPLE POPS, CHARMS, BLOW-POP, BLUE RAZZ, ZIP-A-DEE-DOO-DA POPS, CELLA'S, MASON DOTS, MASON CROWS, JUNIOR MINT, CHARLESTON CHEW, SUGAR DADDY, SUGAR BABIES, ANDES AND FLUFFY STUFF. The Company acquired the trademarks for Junior Mint, Charleston Chew, Sugar Daddy and Sugar Babies in 1993 along with the manufacturing assets of the former Chocolate/Caramel Division of Warner Lambert Company. In 2000, the Company acquired the trademarks for Andes and Fluffy Stuff along with their corresponding manufacturing assets for an aggregate purchase price of $74,293,000.

The Company's products are marketed in a variety of packages designed to be suitable for display and sale in different types of retail outlets. They are distributed through approximately 100 candy and grocery brokers and by the Company itself to approximately 15,000 customers throughout the United States. These customers include wholesale distributors of candy and groceries, supermarkets, variety stores, chain grocers, drug chains, discount chains, cooperative grocery associations, warehouse and membership club stores, vending machine operators, and fund-raising charitable organizations.

The Company's principal markets are in the United States, Canada and Mexico. The Company's Mexican plant supplies a very small percentage of the products marketed in the United States and Canada.

The Company has advertised nationally for many years. Although nearly all advertising media have been used at one time or another, at present most of the Company's advertising expenditures are for commercials aired on network and syndicated television and cable television in major markets throughout the country.

The domestic candy business is highly competitive. The Company competes primarily with other manufacturers of bar candy and bagged candy of the type sold in variety, grocery, mass merchandisers, drug chains and convenience stores. Although accurate statistics are not available, the Company believes it is among the ten largest domestic manufacturers in this field. In the markets in which the Company competes, the main forms of competition comprise brand recognition as well as a fair price for our products at various retail price points.

The Company did not have a material backlog of firm orders at the end of the calendar years 2000 or 2001.

Packaging materials and ingredients used by the Company are readily obtainable from a number of suppliers at competitive prices. Packaging material costs, including films, cartons, corrugated containers and waxed paper, were stable in 2001. The Company continues to seek competitive bids to leverage the high volume of annual purchases it makes of these items and to lower per unit costs. The Company has engaged in hedging transactions primarily in sugar and corn syrup and may do so in the future if and when advisable. From time to time the Company changes the size of certain of its products, which are usually sold at standard retail prices, to reflect significant changes in raw material costs.

The Company does not hold any material patents, licenses, franchises or concessions. The Company's major trademarks are registered in the United States and in many other countries. Continued trademark protection is of material importance to the Company's business as a whole.

The Company does not expend significant amounts of money on research or development activities.

The Company's compliance with Federal, State and local regulations which have been enacted or adopted regulating the discharge of materials into the environment, or otherwise relating to the protection of the environment, has not had a material effect on the capital expenditures, earnings or competitive position of the Company nor does the Company anticipate any such material effects from presently enacted or adopted regulations.

The Company employs approximately 1,950 persons.

The Company has found that its sales normally maintain a consistent level throughout the year except for a substantial upsurge in the third quarter which reflects sales associated with Halloween. In anticipation of this high sales period, the Company generally begins its Halloween inventory build up in the second quarter of each year. The Company historically offers extended credit terms for sales made under Halloween sales programs. Each year, after Halloween receivables have been collected, the Company invests such funds in various temporary cash investments.

Revenues from a major customer aggregated approximately 16.9%, 17.8% and 17.9% of total net sales during the years ended December 31, 2001, 2000 and 1999, respectively.

For a summary of sales, net earnings and assets of the Company by geographic area and additional information regarding the foreign subsidiaries of the Company, see Note 12 of the Notes to Consolidated Financial Statements on Page 15 of the Company's Annual Report to Shareholders for the year ended December 31, 2001 (the "2001 Report") and on Page 4 of the 2001 Report under the section entitled "International." Note 12 and the aforesaid section are incorporated herein by reference. Portions of the 2001 Report are filed as an exhibit to this report.

ITEM 2. Properties.

The Company owns its principal plant and offices which are located in Chicago, Illinois in a building consisting of approximately 2,225,000 square feet. The Company utilizes approximately 1,925,000 square feet for offices, manufacturing and warehousing facilities and leases, or has available to lease to third parties, approximately 300,000 square feet.

In addition to owning the principal plant and warehousing facilities mentioned above, the Company leases manufacturing and warehousing facilities at a second location in Chicago which comprises 138,000 square feet. The lease is renewable by the Company every five years through June, 2011. The Company also periodically leases additional warehousing space at this second location as needed on a month to month basis.

The Company's other principal manufacturing facilities, all of which are owned, are:

Location		Square Feet (a)
New York, New York		60,000
Covington, Tennessee		685,000
Cambridge, Massachusetts		142,000
Delevan, Wisconsin		162,000
Mexico City, Mexico		90,000

(a): Square footage is approximate and includes production, warehousing and office space.

The Company owns substantially all of the production machinery and equipment located in its plants and considers that all of its facilities are well maintained, in good operating condition and adequately insured.

ITEM 3. Legal Proceedings.

There are no material pending legal proceedings known to the Company to which the Company or any of its subsidiaries is a party or of which any of their property is the subject.

ITEM 4. Submission of Matters to a Vote of Security Holders.

No matters were submitted to a vote of the Company's shareholders through the solicitation of proxies or otherwise during the fourth quarter of 2001.

ADDITIONAL ITEM. Executive Officers of the Registrant.

See the information on Executive Officers set forth in the table in Part III, Item 10, Page 6 of this report, which is incorporated herein by reference.

PART II

ITEM 5. Market for Registrant's Common Equity and Related Stockholder Matters.

The Company's Common Stock is traded on the New York Stock Exchange. The Company's Class B Common Stock is subject to restrictions on transferability and no market exists for such shares of Class B Common Stock. The Class B Common Stock is convertible at the option of the holder into shares of Common Stock on a share for share basis. As of March 5, 2002, there were approximately 6000 holders of record of Common and Class B Common Stock. For information on the market price of, and dividends paid with respect to, the Company's Common Stock, see the section entitled "2001-2000 Quarterly Summary of Tootsie Roll Industries, Inc. Stock Price and Dividends per Share" which appears on Page 16 of the 2001 Report. This section is incorporated herein by reference and filed as an exhibit to this report.

ITEM 6. Selected Financial Data.

See the section entitled "Five Year Summary of Earnings and Financial Highlights" which appears on Page 17 of the 2001 Report. This section is incorporated herein by reference and filed as an exhibit to this report.

ITEM 7. Management's Discussion and Analysis of Financial Condition and Results of Operations.

See the section entitled "Management's Discussion and Analysis of Financial Condition and Results of Operations" on Pages 5-7 of the 2001 Report. This section is incorporated herein by reference and filed as an exhibit to this report.

ITEM 7A. Quantitative and Qualitative Disclosures About Market Risk.

See the section entitled "Quantitative and Qualitative Disclosure of Market Risk" in the "Management's Discussion and Analysis of Financial Condition and Results of Operations" on page 7 of the 2001 Report. This section is incorporated herein by reference and filed as an exhibit to this report.

See Note 1 of the Notes of Consolidated Financial Statements on Page 12 of the 2001 Report, which is incorporated herein by reference.

ITEM 8. Financial Statements and Supplementary Data.

The financial statements, together with the report thereon of PricewaterhouseCoopers LLP dated February 11, 2002, appearing on Pages 8-16 of the 2001 Report and the Quarterly Financial Data on Page 16 of the 2001 Report are incorporated by reference in this report. With the exception of the aforementioned information and the information incorporated in Items 1, 5, 6 and 7, the 2001 Report is not to be deemed filed as part of this report.

ITEM 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.

None.

PART III

ITEM 10. Directors and Executive Officers of the Registrant.

See the information with respect to the Directors of the Company which is set forth in the section entitled "Election of Directors" of the Company's Definitive Proxy Statement to be used in connection

with the Company's 2002 Annual Meeting of Shareholders (the "2002 Proxy Statement"). Except for the last paragraph of this section relating to the compensation of Directors, this section is incorporated herein by reference. See the information in the section entitled "Section 16(a) Beneficial Ownership Reporting Compliance" of the Company's 2002 Proxy Statement, which section is incorporated herein by reference.

The following table sets forth the information with respect to the executive officers of the Company:

Name	Position (1)	Age
Melvin J. Gordon*	Chairman of the Board and Chief Executive Officer (2)	82
Ellen R. Gordon*	President and Chief Operating Officer (2)	70
G. Howard Ember Jr.	Vice President/Finance	49
John W. Newlin Jr.	Vice President/Manufacturing	65
Thomas E. Corr	Vice President/Marketing and Sales	53
James M. Hunt	Vice President/Distribution	59
Barry P. Bowen	Treasurer	46

*: A member of the Board of Directors of the Company
(1): All of the executive officers have served in the positions set forth in the table as their principal occupations for more than the past nine years. Mr. and Mrs. Gordon have also served as President and Vice President, respectively of HDI Investment Corp., a family investment company.
(2): Melvin J. Gordon and Ellen R. Gordon are husband and wife.

ITEM 11. Executive Compensation.

See the information set forth in the section entitled "Executive Compensation and Other Information" of the Company's 2002 Proxy Statement. Except for the "Report on Executive Compensation" and "Performance Graph," this section of the 2002 Proxy Statement is incorporated herein by reference. See the last paragraph of the section entitled "Election of Directors" of the 2002 Proxy Statement, which paragraph is incorporated herein by reference.

ITEM 12. Security Ownership of Certain Beneficial Owners and Management.

For information with respect to the beneficial ownership of the Company's Common Stock and Class B Common Stock by the beneficial owners of more than 5% of said shares and by the management of the Company, see the sections entitled "Ownership of Common Stock and Class B Common Stock by Certain Beneficial Owners" and "Ownership of Common Stock and Class B Common Stock by Management" of the 2002 Proxy Statement. These sections of the 2002 Proxy Statement are incorporated herein by reference.

ITEM 13. Certain Relationships and Related Transactions.

None.

PART IV

ITEM 14. Exhibits, Financial Statement Schedule and Reports on Form 8-K.

(a): Financial Statements.

The following financial statements and schedules are filed as part of this report:

(1): Financial Statements (filed herewith as part of Exhibit 13):

Report of Independent Accountants

Consolidated Statements of Earnings, Comprehensive Earnings and Retained Earnings for the three years ended December 31, 2001

Consolidated Statements of Cash Flows for the three years ended December 31, 2001

Consolidated Statements of Financial Position at December 31, 2001 and 2000

Notes to Consolidated Financial Statements

(2): Financial Statement Schedule:

Report of Independent Accountants on Financial Statement Schedule

For the three years ended December 31, 2001—Valuation and Qualifying Accounts

All other schedules are omitted because they are not applicable or the required information is shown in the financial statements or notes thereto.

(3): Exhibits required by Item 601 of Regulation S-K:

See Index to Exhibits which appears following Financial Schedule II.

No reports on Form 8-K were filed during the quarter ended December 31, 2001.

SIGNATURES

Pursuant to the requirements of Section 13 or 15 (d) of the Securities Exchange Act of 1934, Tootsie Roll Industries, Inc., has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

		TOOTSIE ROLL INDUSTRIES, INC.
		By:		MELVIN J. GORDON Melvin J. Gordon, Chairman of the Board of Directors and Chief Executive Officer
		Date:		March 22, 2002

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

Melvin J. Gordon Melvin J. Gordon	Chairman of the Board of Directors and Chief Executive Officer (principal executive officer)	March 22, 2002
Ellen R. Gordon Ellen R. Gordon	Director, President and Chief Operating Officer	March 22, 2002
Charles W. Seibert Charles W. Seibert	Director	March 22, 2002
Lana Jane Lewis-Brent Lana Jane Lewis-Brent	Director	March 22, 2002
Richard P. Bergeman	Director	March 22, 2002
G. Howard Ember Jr.	Vice President, Finance G. Howard Ember Jr. (principal financial officer and principal accounting officer)	March 22, 2002

REPORT OF INDEPENDENT ACCOUNTANTS ON
FINANCIAL STATEMENT SCHEDULE

To the Board of Directors and Shareholders of
Tootsie Roll Industries, Inc.

Our audits of the consolidated financial statements referred to in our report dated February 11, 2002 appearing in the 2001 Annual Report to Shareholders of Tootsie Roll Industries, Inc. (which report and consolidated financial statements are incorporated by reference in this Annual Report on Form 10-K) also included an audit of the financial statement schedule listed in Item 14(a)(2) of this Form 10-K. In our opinion, this financial statement schedule presents fairly, in all material respects, the information set forth therein when read in conjunction with the related consolidated financial statements.

PricewaterhouseCoopers LLP

Chicago, Illinois
February 11, 2002

TOOTSIE ROLL INDUSTRIES, INC.
AND SUBSIDIARY COMPANIES
SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS
DECEMBER 31, 2001, 2000 AND 1999

Description		Balance at beginning of year		Additions charged to costs and expenses		Deductions(1)		Balance at End of Year
2001:
	Reserve for bad debts	$	1,799,000	$	364,678	$	417,678	$	1,746,000
	Reserve for cash discounts		348,000		7,227,905		7,284,905		291,000

		$	2,147,000	$	7,592,583	$	7,702,583	$	2,037,000

2000:
	Reserve for bad debts	$	1,751,000	$	298,228	$	250,228	$	1,799,000
	Reserve for cash discounts		281,000		7,761,472		7,694,472		348,000

		$	2,032,000	$	8,059,700	$	7,944,700	$	2,147,000

1999:
	Reserve for bad debts	$	1,898,000	$	275,289	$	422,289	$	1,751,000
	Reserve for cash discounts		286,000		7,116,112		7,121,112		281,000

		$	2,184,000	$	7,391,401	$	7,543,401	$	2,032,000

(1): Deductions against reserve for bad debts consist of accounts receivable written off net of recoveries and exchange rate movements. Deductions against reserve for cash discounts consist of allowances to customers.

INDEX TO EXHIBITS

		The Company hereby agrees to provide the Commission, upon request, copies of any omitted exhibits or schedules required by Item 601(b)(2) of Regulation S-K.
3.1		Restated Articles of Incorporation. Incorporated by reference to Exhibit 3.1 of the Company's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 1997; Commission File No. 1-1361.
3.2		Amendment to Restated Articles of Incorporation. Incorporated by reference to Exhibit 3.2 of the Company's Annual Report on Form 10-K for the year ended December 31, 1999; Commission File No. 1-1361.
3.3		Amended and Restated By-Laws. Incorporated by reference to Exhibit 3.2 of the Company's Annual Report on Form 10-K for the year ended December 31, 1996; Commission File No. 1-1361.
3.4		Specimen Class B Common Stock Certificate. Incorporated by reference to Exhibit 1.1 of the Company's Registration Statement on Form 8-A dated February 29, 1988.
10.8.1*		Excess Benefit Plan. Incorporated by reference to Exhibit 10.8.1 of the Company's Annual Report on Form 10-K for the year ended December 31, 1990; Commission File No. 1-1361.
10.8.2*		Amended and Restated Career Achievement Plan of the Company. Incorporated by reference to Exhibit 10.8.2 of the Company's Annual Report on Form 10-K for the year ended December 31, 1998; Commission File No. 1-1361.
10.8.3*		Amendment to the Amended and Restated Career Achievement Plan of the Company. Incorporated by reference to Exhibit 10.8.3 of the Company's Annual Report on Form 10-K for the year ended December 31, 1999; Commission File No. 1-1361.
10.12*		Restatement of Split Dollar Agreement (Special Trust) between the Company and the trustee of the Gordon Family 1993 Special Trust dated January 31, 1997. Incorporated by reference to Exhibit 10.12 of the Company's Annual Report on Form 10-K for the year ended December 31, 1996; Commission File No. 1-1361.
10.21*		Executive Split Dollar Insurance and Collateral Assignment Agreement between the Company and G. Howard Ember Jr. dated July 30, 1994. Incorporated by reference to Exhibit 10.21 of the Company's Annual Report on Form 10-K for the year ended December 31, 1994; Commission File No. 1-1361.
10.22*		Executive Split Dollar Insurance and Collateral Assignment Agreement between the Company and John W. Newlin dated July 30, 1994. Incorporated by reference to Exhibit 10.22 of the Company's Annual Report on Form 10-K for the year ended December 31, 1994; Commission File No. 1-1361.
10.23*		Executive Split Dollar Insurance and Collateral Assignment Agreement between the Company and Thomas E. Corr dated July 30, 1994. Incorporated by reference to Exhibit 10.23 of the Company's Annual Report on Form 10-K for the year ended December 31, 1994; Commission File No. 1-1361.
10.24*		Executive Split Dollar Insurance and Collateral Assignment Agreement between the Company and James Hunt dated July 30, 1994. Incorporated by reference to Exhibit 10.24 of the Company's Annual Report on Form 10-K for the year ended December 31, 1994; Commission File No. 1-1361.

10.25*		Form of Change In Control Agreement dated August, 1997 between the Company and certain executive officers. Incorporated by reference to Exhibit 10.25 of the Company's Annual Report on Form 10-K for the year ended December 31, 1997; Commission File No. 1-1361.
10.26*		Executive Split Dollar Insurance and Collateral Assignment Agreement between the Company and Barry Bowen dated April 1, 1997. Incorporated by reference to Exhibit 10.26 of the Company's Annual Report on Form 10-K for the year ended December 31, 1997; Commission File No. 1-1361.
10.27*		Amendment to Split Dollar Agreement (Special Trust) dated April 2, 1998 between the Company and the trustee of the Gordon Family 1993 Special Trust, together with related Collateral Assignments. Incorporated by reference to Exhibit 10.27 of the Company's Annual Report on Form 10-K for the year ended December 31, 1998; Commission File No. 1-1361.
10.28*		Tootsie Roll Industries, Inc. Bonus Incentive Plan. Incorporated by reference to Exhibit A of the Company's Proxy Statement dated March 27, 1997; Commission File No. 1-1361.
10.29*		Tootsie Roll Industries, Inc. 2001 Bonus Incentive Plan. Incorporated by reference to Exhibit A of the Company's Proxy Statement dated March 30, 2001; Commission File No. 1-1361.
13		The following items incorporated by reference herein from the Company's 2001 Annual Report to Shareholders for the year ended December 31, 2001 (the "2001 Report"), are filed as Exhibits to this report:

(i): Information under the section entitled "International" set forth on Page 4 of the 2001 Report;
(ii): Information under the section entitled "Management's Discussion and Analysis of Financial Condition and Results of Operations" set forth on Pages 5-7 of the 2001 Report;
(iii): Consolidated Statement of Earnings, Comprehensive Earnings and Retained Earnings for the three years ended December 31, 2001 set forth on Page 8 of the 2001 Report;
(iv): Consolidated Statement of Financial Position at December 31, 2001 and 2000 set forth on Pages 9-10 of the 2001 Report;
(v): Consolidated Statement of Cash Flows for the three years ended December 31, 2001 set forth on Page 11 of the 2001 Report;
(vi): Notes to Consolidated Financial Statements set forth on Pages 12-15 of the 2001 Report;
(vii): Report of Independent Accountants set forth on Page 16 of the 2001 Report;
(viii): Quarterly Financial Data set forth on Page 16 of the 2001 Report;
(ix): Information under the section entitled "2001-2000 Quarterly Summary of Tootsie Roll Industries, Inc. Stock Price and Dividends per Share" set forth on Page 16 of the 2001 Report; and
(x): Information under the section entitled "Five Year Summary of Earnings and Financial Highlights" set forth on Page 17 of the 2001 Report.