CONFORMED COPY
--------------
FORM 11-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE
[X] SECURITIES EXCHANGE ACT OF 1934 (No Fee Required)
For the plan year ended December 31, 1998
OR
TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE
[_] SECURITIES EXCHANGE ACT OF 1934 (No Fee Required)
Commission file number 1-3932
Full title of plan: WHIRLPOOL 401(k) PLAN
Name of issuer of the securities held pursuant to the plan and the address
of its principal executive office:
WHIRLPOOL CORPORATION
Administration Center
2000 North M-63
Benton Harbor, MI 49022-2692
Total Number of pages herein is 25 pages
The Exhibit Index appears on page 24
Reference is hereby made to the Financial Statements attached hereto which begin
on page F-1.
ANNUAL REPORT ON FORM 11-K
--------------------------
FINANCIAL STATEMENTS
--------------------
PLAN YEAR ENDED DECEMBER 31, 1998
WHIRLPOOL 401(k) PLAN
WHIRLPOOL CORPORATION
BENTON HARBOR, MICHIGAN
F-1
FORM 11-K
FINANCIAL STATEMENTS
WHIRLPOOL 401(k) PLAN
WHIRLPOOL CORPORATION
The following financial statements of the Whirlpool 401(k) Plan are submitted
herewith:
Page
----
Report of Independent Auditors F-3
Statements of Assets Available for
Benefits -- December 31, 1998 and 1997 F-4
Statements of Changes in Assets Available for
Benefits -- Two-Years Ended December 31, 1998 F-5
Notes to Financial Statements F-6
Line 27a - Schedule of Assets Held for Investment Purposes F-19
Line 27d - Schedule of Reportable Transactions F-20
Schedules Nos. I, II and III, for which provisions are made in the applicable
accounting regulations of the Securities and Exchange Commission, have been
omitted since the information required is shown in the related financial
statements and notes thereto.
F-2
Report of Independent Auditors
The Trustees
Whirlpool 401(k) Plan
We have audited the accompanying statements of assets available for benefits of
the Whirlpool 401(k) Plan as of December 31, 1998 and 1997, and the related
statements of changes in 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 generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the assets available for plan benefits of the Plan at
December 31, 1998 and 1997, and the changes in its assets available for plan
benefits for the years then ended in conformity with generally accepted
accounting principles.
Our audits were performed for the purpose of forming an opinion on the financial
statements taken as a whole. The accompanying supplemental schedules of assets
held for investment purposes as of December 31, 1998, and reportable
transactions for the year then ended, are presented for purposes of complying
with the Department of Labor's Rules and Regulations for Reporting and
Disclosure under the Employee Retirement Income Security Act of 1974, and are
not a required part of the financial statements. The supplemental schedules have
been subjected to the auditing procedures applied in our audits of the financial
statements and, in our opinion, are fairly stated in all material respects in
relation to the financial statements taken as a whole.
/s/ Ernst & Young LLP
May 21, 1999
F-3
EIN 38-1490038
Plan #001
Whirlpool 401(k) Plan
Statements of Assets Available for Benefits
December 31
1998 1997
----------------------------
Contributions receivable $ 15,944,722 $ 13,449,333
Interest and dividends receivable 53,158 206,929
Investments:
At fair value:
Mutual funds 465,925,453 363,440,595
Common trust funds 78,881 9,456,615
Common stock of Whirlpool Corporation 71,780,613 57,871,662
At contract value:
Guaranteed investment contracts 47,679,822 82,316,595
At cost:
Participant loans 27,019,516 24,039,994
----------------------------
612,484,285 537,125,461
----------------------------
Assets available for benefits $628,482,165 $550,781,723
============================
See accompanying notes.
F-4
EIN 38-1490038
Plan #001
Whirlpool 401(k) Plan
Statements of Changes in Assets Available for Benefits
Year ended December 31
1998 1997
----------------------------
Additions
Dividends on Whirlpool Corporation common
stock $ 1,508,477 $ 1,592,075
Other dividends 22,310,041 25,869,730
Interest 6,773,054 7,117,702
----------------------------
30,591,572 34,579,507
Net realized and unrealized appreciation in fair
value of investments:
Whirlpool Corporation common stock 1,261,652 12,092,758
Investments other than Whirlpool Corporation
common stock 38,041,909 37,648,389
----------------------------
39,303,561 49,741,147
Employer contributions 9,114,652 7,155,734
Participant contributions 51,312,339 54,828,328
----------------------------
60,426,991 61,984,062
----------------------------
Total additions 130,322,124 146,304,716
Deductions
Participant withdrawals 52,520,837 77,445,369
Administrative expenses 100,845 75,239
----------------------------
Total deductions 52,621,682 77,520,608
----------------------------
Net increase 77,700,442 68,784,108
Assets available for benefits at beginning
of year 550,781,723 481,997,615
----------------------------
Assets available for benefits at end of year $628,482,165 $550,781,723
============================
See accompanying notes.
F-5
EIN 38-1490038
Plan #001
Whirlpool 401(k) Plan
Notes to Financial Statements
1. Description of Plan
The Whirlpool 401(k) Plan (the Plan) is a defined-contribution plan sponsored by
Whirlpool Corporation and participating subsidiaries (referred to as Employer,
Plan Sponsor, or Whirlpool). The following description of the Plan provides only
general information. Participants should refer to the Whirlpool 401(k) Plan
Summary Plan Description for a more complete description of the Plan's
provisions.
Every full-time and every part-time employee of Whirlpool shall be eligible to
participate upon employment. Participation in the Plan is voluntary. The Plan
allows each participant to make tax-deferred contributions to the Plan, by
payroll deduction, each payroll period, in any whole percentage of eligible
earnings up to 15%, but not to exceed the maximum allowable annual contribution,
as determined by the Internal Revenue Code (IRC). Such elections are made and
can be adjusted by giving notice to the custodian via the voice response system
on a daily basis, to be effective, in most cases, as of the beginning of the
next payroll period. In addition, certain employees may make additional tax-
deferred contributions to the Plan by directing that a portion of any annual
bonus due to the participant of one or more designated bonus plans be deposited
into the Plan. The amount of any such additional tax-deferred contributions may
be elected by the employee to equal the same percentage of any annual bonus
payment as is applied for payroll deduction purposes or in any whole percentage
between 0% and 75%, as the participant elects, provided, however, that the
deduction percentage applicable to a participant who is a highly compensated
participant may not exceed 15%.
For each year, the Employer establishes performance goals. Performance is
measured in terms of annual balanced scorecard measures as determined by the
Whirlpool Board of Directors. The attainment of these goals results in an
Employer matching contribution based on the tax-deferred contributions of each
employee (other than exempt employees, and employees who terminated employment
during the year for a reason other than retirement, disability, or death) that
do not exceed 5% of the employee's eligible earnings. Regardless of performance,
the Employer will make a guaranteed matching contribution of $.25 per dollar
that eligible employees contribute to the Plan. Employer matching contributions
and tax-deferred contributions are 100% vested at all times. Exempt employees
are not eligible for Employer matching contributions. Furthermore,
F-6
Whirlpool 401(k) Plan
Notes to Financial Statements
1. Description of Plan (continued)
participants who terminate employment during the year are not eligible for
Employer matching contributions unless the termination is due to the
participant's retirement, death, disability, or a reduction in work force.
The value of each participant's aggregate deposits can be invested in accordance
with that participant's election in one or more of the following investment
funds in any whole percentage:
Whirlpool Stock Fund
Consists exclusively of stock in Whirlpool Corporation for those who want
to share in the potential growth of Whirlpool Corporation. Since this
investment is in shares of an individual stock, the potential return will
depend on Whirlpool's performance.
Putnam New Opportunities Fund
Aggressively seeks long-term capital appreciation by investing primarily in
common stocks of companies within certain emerging industry groups that
offer above-average potential for growth.
EuroPacific Growth Fund
Aggressively seeks higher long-term returns by investing primarily in
common and preferred stock of companies located outside the United States,
as well as in fixed-income securities and other short-term securities.
Heartland Value Fund
Aggressively seeks higher long-term returns by investing primarily in
common and preferred stocks of companies located in the United States with
small-market capitalizations, as well as in fixed-income securities and
other short-term securities.
Putnam Voyager Fund
Seeks aggressive capital appreciation by investing primarily in a
combination of stocks of smaller companies expected to grow over time, as
well as stocks of larger, more established corporations.
F-7
Whirlpool 401(k) Plan
Notes to Financial Statements (continued)
1. Description of Plan (continued)
Putnam Income Fund
Seeks current income consistent with prudent risk by investing primarily in
corporate bonds from creditworthy companies.
Putnam Stable Value Fund
Seeks a stable rate of return while preserving principal by investing in a
diversified portfolio of investment contracts and other fixed-income
securities. This fund includes investments selected prospectively by Putnam
Investments for Whirlpool participants.
Vanguard Windsor II Fund
Aggressively seeks higher long-term returns and dividend income by
investing mainly in common stocks of companies considered to be undervalued
by the Fund's advisors.
Putnam S&P 500 Index Fund
Seeks to closely match the performance of the Standard and Poor's 500
Index. Diversification is among different types of stocks, with some
investment in money market instruments and financial futures contracts.
The Asset Allocation Portfolios described below are a mix of stocks, bonds,
and money market instruments adjusted by Putnam's investment team to take
advantage of market conditions. The three funds differ for the most part in
the percentages of stocks they contain compared to bonds and money market
instruments. Participants select the portfolio that is most consistent with
their lifestyle and financial needs. Each of the portfolios are managed for
long-term results and changes are made to each portfolio depending on its
goals.
Putnam Asset Allocation: Growth Portfolio
For more aggressive investors who will accept more risk in exchange for
higher growth potential. Diversification is among different types of
stocks, with some investment in bond and money market instruments.
F-8
Whirlpool 401(k) Plan
Notes to Financial Statements (continued)
1. Description of Plan (continued)
Putnam Asset Allocation: Balanced Portfolio
For investors who want an investment with moderate risk and potential for
moderate growth. Risk is reduced because of the balance between the
relative stability of bonds and the fluctuation of stocks.
Putnam Asset Allocation: Conservative Portfolio
For investors who are willing to assume reduced potential for growth in
exchange for less risk. Risk is reduced through substantial investments in
investment-grade bonds, while a portion remains in stocks to help
investments stay ahead of inflation.
Deposits and withdrawals from each investment fund and transfers among
investment funds are made at the direction of the participants' elections. The
Employer is responsible for determining that such transactions are in accordance
with the Plan.
Income, including market value adjustments, under each of these funds is
allocated to the participants' accounts daily based on each participant's equity
in the fund.
Employer matching contributions are initially invested in the Whirlpool Stock
Fund (but may subsequently be transferred to another investment fund in
accordance with provisions of the Plan).
Plan investments are made in the manner specified in the Trust agreement and in
accordance with the stated investment policies of the respective funds. To the
extent monies available for investment are not immediately invested, as provided
in the investment policy of each fund, such monies are temporarily invested in
short-term income investments. All investments are made in light of a continuing
evaluation of economic and market conditions that may cause such investment
policy to vary from time to time.
The Plan makes loans to participants in amounts up to the lesser of $50,000 or
50% of a participant's account balance, with a minimum loan amount of $500. Each
such loan is allocated to a separate loan account and treated for investment
purposes as an investment of the account of the participant who received the
loan.
F-9
Whirlpool 401(k) Plan
Notes to Financial Statements (continued)
1. Description of Plan (continued)
Although the Employer has not expressed any intent to terminate the Plan, it is
free to do so at any time subject to the provisions of the IRC and ERISA.
2. Significant Accounting Policies
Investments Held by the Trust
All the investments of the Plan are held by the Trust. The custodian invests all
assets of the Trust except as follows: (i) The Individual Trustees direct the
investment of the Whirlpool Stock Fund; and (ii) the Individual Trustees may
direct that a specified percentage of the assets credited to any or all of the
investment fund or funds be allocated to one or more separate accounts within
said investment fund and invested in accordance with the direction of the
Individual Trustees or an investment manager designated by the Individual
Trustees.
Contributions, loan distributions and repayments, and participant withdrawals
are specifically identified to the fund or funds within the Trust to which
assets of the Plan are credited. Investment income and related expenses of the
Trust are allocated to the investment funds based on each investment fund's
proportionate share of the current value of the Trust assets at the end of each
month.
Valuation of Investments
The Plan's investments represent the Plan's share of the Trust's investments.
The Plan's guaranteed investment contracts are stated at contract value as
reported by the insurance companies. Contract value represents contributions
made under the contract, plus interest at the contract rate, less the insurance
companies' administrative expenses. Whirlpool common stock is valued at the last
reported sales price on a national securities exchange on the last business day
of the Plan year. The fair value of the participation units owned by the Plan in
the common trust funds and mutual funds is based on quoted redemption values on
the last business day of the Plan year. Participant loans are valued at cost,
which approximates fair value.
Purchases and sales of securities are recorded on a trade-date basis. Interest
income is recorded on the accrual basis. Dividends are recorded on the ex-
dividend date.
F-10
Whirlpool 401(k) Plan
Notes to Financial Statements (continued)
2. Significant Accounting Policies (continued)
Administrative Expenses
In general, plan expenses, except for broker commissions and portfolio
transaction fees, are paid by Whirlpool.
Use of Estimates
The preparation of financial statements in conformity with generally accepted
accounting principles requires the Trustees to make estimates and assumptions
that affect the amounts reported in the financial statements and accompanying
notes. Actual results could differ from those estimates.
3. Investments
A summary of the investments held at December 31 is as follows:
December 31
1998 1997
----------------------------
Investments, at fair value:
Mutual funds $465,925,453 $363,440,595
Common trust funds 78,881 9,456,615
Common stock of Whirlpool:
(1,296,264 shares at December 31, 1998;
1,052,212 shares at December 31, 1997) 71,780,613 57,871,662
Investments, at contract value:
Guaranteed investment contracts 47,679,822 82,316,595
Investment, at cost:
Participant loans 27,019,516 24,039,994
============================
Total investments $612,484,285 $537,125,461
============================
F-11
Whirlpool 401(k) Plan
Notes to Financial Statements (continued)
3. Investments (continued)
A summary of the guaranteed investment contracts held at December 31, 1998, is
as follows:
Credited
Interest Average Fair
Rate Yield Value
--------------------------------------------
Continental Assurance Company, #GP-24029 5.15% 5.19% $ 3,653,198
John Hancock Mutual Life Insurance Company,
#GAC-8722 6.03 5.86 2,575,427
GE Life & Annuity Assurance Co., #GS-2949 6.40 7.68 1,250,213
GE Life & Annuity Assurance Co., #GS-3056 5.81 5.65 6,464,852
Metropolitan Life Insurance Co., #GAC-24896 6.05 5.99 4,170,921
Monumental Life Insurance Co., #BDA-00720-FR 5.07 4.90 4,256,681
New York Life Insurance Company, #GA-30679 5.15 4.99 4,485,688
New York Life Insurance Company, #GA-30745 5.40 5.96 4,827,573
Pacific Life Insurance Co., #G-26430.01 6.01 5.95 4,119,026
Principal Life Insurance Company, #GA-4-30429 6.25 6.47 3,546,557
Transamerica Occidental Insurance Company,
#GA-51469-00 4.99 4.88 5,822,951
United of Omaha Insurance Company, #SDGA-11566 5.94 5.83 2,506,735
-----------
$47,679,822
===========
The credited interest rate for the United of Omaha Life Insurance Company
guaranteed investment contract is adjusted monthly. All remaining guaranteed
insurance contracts have credited interest rates which are fixed over the lives
of the contracts.
The fair value of individual investments that represent 5% or more of the Plan's
assets is as follows:
December 31
1998 1997
---------------------------
Heartland Value Fund $ - $ 49,910,463
Putnam Asset Allocation: Balanced Portfolio 45,543,044 47,506,461
Putnam New Opportunities Fund 45,692,185 30,452,757
Putnam Voyager Fund 205,018,751 177,906,240
Whirlpool Stock Fund 71,780,612 57,871,662
Morgan Guaranty Trust Company guaranteed
investment contract - 33,752,990
Putnam Stable Value Fund 39,537,198 -
F-12
Whirlpool 401(k) Plan
Notes to Financial Statements (continued)
4. Detail of the Allocation of Plan Assets
Detail of the allocation of Plan assets as of December 31, 1998, follows:
Putnam
Whirlpool New EuroPacific Heartland Putnam Putnam
Stock Opportunities Growth Value Voyager Income
Fund Fund Fund Fund Fund Fund
-----------------------------------------------------------------------------------
Contributions receivable $ - $ - $ - $ - $ - $ -
Interest and dividends receivable - - - - - -
Investments:
Mutual Funds - 45,682,185 19,309,815 29,670,134 205,018,751 14,923,611
Common trust funds - - - - - -
Common stock of Whirlpool 71,780,613 - - - - -
Guaranteed investment contract - - - - - -
Participant loans - - - - - -
-----------------------------------------------------------------------------------
Total investments 71,780,613 45,682,185 19,309,815 29,670,134 205,018,751 14,923,611
-----------------------------------------------------------------------------------
Assets available for benefits $71,780,613 $45,682,185 $19,309,815 $29,670,134 $205,018,751 $14,923,611
===================================================================================
Putnam Putnam Putnam
Putnam Putnam Asset Asset Asset
Stable Vanguard S&P 500 Allocation Allocation Allocation
Value Windsor II Index Growth Balanced Conservative
Fund Fund Fund Portfolio Portfolio Portfolio
-----------------------------------------------------------------------------------------
Contributions receivable $ - $ - $ - $ - $ - $ -
Interest and dividends receivable 53,158 - - - - -
Investments:
Mutual Funds 39,368,302 22,075,459 25,851,281 10,962,810 45,543,044 7,520,141
Common trust funds 78,881 - - - - -
Common stock of Whirlpool - - - - - -
Guaranteed investment contract 47,679,822 - - - - -
Participant loans - - - - - -
----------------------------------------------------------------------------------------
Total investments 87,127,005 22,075,459 25,851,281 10,962,810 45,543,044 7,520,141
----------------------------------------------------------------------------------------
Assets available for benefits $87,180,163 22,075,459 25,851,281 $10,962,810 45,543,044 $7,520,141
========================================================================================
Contributions
Pending Participant
Allocation Loans Total
------------------------------------------
Contributions receivable $15,944,722 $ - $15,944,722
Interest and dividends receivable - - 53,158
Investments:
Mutual Funds - - 465,925,453
Common trust funds - - 78,881
Common stock of Whirlpool - - 71,780,613
Guaranteed investment contract - - 47,679,822
Participant loans - 27,019,516 27,019,516
------------------------------------------
Total investments 15,944,722 27,019,516 612,484,285
------------------------------------------
Assets available for benefits $15,944,722 27,019,516 $628,482,165
==========================================
Detail of the allocation of Plan assets as of December 31, 1997, follows:
Putnam
Whirlpool New EuroPacific Heartland Putnam Putnam
Stock Opportunities Growth Value Voyager Income
Fund Fund Fund Fund Fund Fund
--------------------------------------------------------------------------------------
Contributions receivable $ - $ - $ - $ - $ - $ -
Interest and dividends receivable - - - - - -
Investments:
Mutual Funds - 30,452,757 18,565,883 49,910,463 177,906,240 12,183,207
Common trust funds - - - - - -
Common stock of Whirlpool 57,871,662 - - - - -
Guaranteed investment contract - - - - - -
Participant loans - - - - - -
--------------------------------------------------------------------------------------
Total investments 57,871,662 30,452,757 18,565,883 49,910,463 177,906,240 12,183,207
--------------------------------------------------------------------------------------
Assets available for benefits $57,871,662 $30,452,757 $18,565,883 $49,910,463 $177,906,240 $12,183,207
=======================================================================================
Putnam Putnam Putnam
Putnam Putnam Asset Asset Asset
Stable Vanguard S&P 500 Allocation Allocation Allocation
Value Windsor II Index Growth Balanced Conservative
Fund Fund Fund Portfolio Portfolio Portfolio
---------------------------------------------------------------------------------
Contributions receivable $ - $ - $ - $ - $ - $ -
Interest and dividends receivable 206,929 - - - - -
Investments:
Mutual Funds - 3,972,761 2,739,557 12,775,860 47,506,461 7,427,406
Common trust funds 9,456,615 - - - - -
Common stock of Whirlpool - - - - - -
Guaranteed investment contract 82,316,595 - - - - -
Participant loans - - - - - -
---------------------------------------------------------------------------------
Total investments 91,773,210 3,972,761 2,739,557 12,775,860 47,506,461 7,427,406
---------------------------------------------------------------------------------
Assets available for benefits $91,980,139 $3,972,761 $2,739,557 $12,775,860 $47,506,461 $7,427,406
=================================================================================
Contributions
Pending Participant
Allocation Loans Total
-----------------------------------------
Contributions receivable $13,449,333 $ $ 13,449,333
Interest and dividends receivable - - 206,929
Investments:
Mutual Funds - - 363,440,595
Common trust funds - - 9,456,615
Common stock of Whirlpool - - 57,871,662
Guaranteed investment contract - - 82,316,595
Participant loans - - 24,039,994
-----------------------------------------
Total investments - 24,039,994 537,125,461
-----------------------------------------
Assets available for benefits $13,449,333 $24,039,994 $550,781,723
=========================================
F-13
Whirlpool 401(k) Plan
Notes to Financial Statements (continued)
5. Detail of Statement of Changes in Assets Available for Benefits
Detail of statement of changes in assets available for benefits for the year
ended December 31, 1998.
Putnam Putnam
Whirlpool New EuroPacific Heartland Putnam Putnam Stable
Stock Opportunities Growth Value Voyager Income Value
Fund Fund Fund Fund Fund Fund Fund
--------------------------------------------------------------------------------------------------
Assets available for benefits
at beginning of year $57,871,662 $30,452,757 $18,565,883 $ 49,910,463 $177,906,240 $12,183,207 $91,980,139
Dividends on Whirlpool common
stock 1,508,477 -- -- -- -- -- --
Other dividends -- 1,428,301 1,083,350 722,157 13,530,773 999,249 --
Interest -- -- -- -- -- -- 4,572,988
--------------------------------------------------------------------------------------------------
1,508,477 1,428,301 1,083,350 722,157 13,530,773 999,249 4,572,988
Net realized and unrealized
appreciation (depreciation)
in fair value of investments:
Whirlpool common stock 1,261,652 -- -- -- -- -- --
Investments other than
Whirlpool common stock -- 6,389,974 1,539,823 (4,931,447) 27,235,529 (511,426) --
--------------------------------------------------------------------------------------------------
1,261,652 6,389,974 1,539,823 (4,931,447) 27,235,529 (511,426) --
Employer contributions -- -- -- -- -- -- --
Participant contributions 4,720,573 4,635,574 1,940,400 3,691,993 13,279,190 811,455 5,593,719
--------------------------------------------------------------------------------------------------
4,720,573 4,635,574 1,940,400 3,691,993 13,279,190 811,455 5,593,719
Participant withdrawals (3,284,958) (2,492,192) (1,635,392) (3,257,643) (10,670,693) (2,537,522) (18,723,639)
Loans issued (2,737,620) (1,195,622) (429,590) (827,358) (4,657,629) (219,525) (2,218,654)
Loan repayments 1,655,007 1,114,178 480,740 904,214 4,033,166 229,783 2,017,013
Administrative expenses (24,135) (7,030) (1,124) (5,561) (28,820) (1,610) (18,889)
Interfund transfers 10,809,955 5,356,245 (2,234,275) (16,536,684) (15,609,005) 3,970,000 3,977,486
--------------------------------------------------------------------------------------------------
Assets available for benefits
at end of year $71,780,613 $45,682,185 $19,309,815 $ 29,670,134 $205,018,751 $14,923,611 $ 87,180,163
==================================================================================================
Putnam Putnam Putnam
Putnam Asset Asset Asset
Vanguard S&P 500 Allocation Alloction Allocation Contributions
Windsor II Index Growth Balanced Conservative Pending Participant
Fund Fund Portfolio Portfolio Portfolio Allocation Loans Total
----------------------------------------------------------------------------------------------------------
Assets available for
benefits at beginning
of year $ 3,972,761 $ 2,379,557 $12,775,860 $47,506,461 $ 7,427,406 $13,449,333 $ 24,039,994 $550,782,723
Dividends on Whirlpool
common stock -- -- -- -- -- -- -- 1,508,477
Other dividends 2,222,132 4,478 320,382 1,638,237 360,982 -- -- 22,310,041
Interest -- -- -- -- -- -- 2,200,066 6,773,054
----------------------------------------------------------------------------------------------------------
2,222,132 4,478 320,382 1,638,237 360,982 -- 2,200,066 30,591,572
Net realized and
unrealized appreciation
(depreciation) in fair
value of investments:
Whirlpool common stock -- -- -- -- -- -- -- 1,261,652
Investments other than
Whirlpool common stock (384,810) 3,841,193 1,123,031 3,424,367 315,675 -- -- 38,041,909
----------------------------------------------------------------------------------------------------------
(384,810) 3,841,193 1,123,031 3,424,367 315,675 -- -- 39,303,561
Employer contributions -- -- -- -- -- 9,114,652 -- 9,114,652
Participant contributions 1,515,153 1,686,134 1,620,676 4,502,055 485,158 6,830,260 -- 51,312,339
----------------------------------------------------------------------------------------------------------
1,515,153 1,686,134 1,620,676 4,502,055 485,158 15,944,912 -- 60,426,991
Participant withdrawals (1,067,032) (965,903) (1,013,115) (4,953,657) (980,601) -- (938,490) (52,520,837)
Loans issued (278,305) (369,312) (266,538) (973,639) (80,688) -- 14,254,480 --
Loan repayments 378,417 364,019 308,214 947,439 104,344 -- (12,536,534) --
Administrative expenses (1,760) (2,045) (1,847) (7,431) (593) -- -- (100,845)
Interfund transfers 15,718,903 18,553,080 (3,903,853) (6,540,788) (111,542) (13,449,523) -- --
----------------------------------------------------------------------------------------------------------
Assets available for
benefits at end of year $22,075,459 $25,851,201 $10,962,810 $45,543,044 $ 7,520,141 $ 15,944,722 $ 27,019,516 $628,482,165
==========================================================================================================
F-14
Whirlpool 401(k) Plan
Notes to Financial Statements (continued)
5. Detail of Statement of Changes in Assets Available for Benefits (continued)
Detail of statement of changes in assets available for benefits for the year
ended December 31, 1997.
Putnam
Whirlpool New EuroPacific Heartland Putnam Putnam
Stock Opportunities Growth Value Voyager Income
Fund Fund Fund Fund Fund Fund
-----------------------------------------------------------------------------------
Assets available for benefits at
beginning of year $ 55,930,639 $21,133,369 $13,688,148 $28,148,188 $166,479,169 $ 4,758,430
Dividends on Whirlpool common stock 1,592,075 - - - - -
Other dividends - 655,809 1,669,327 6,467,690 10,503,219 554,685
Interest - 22,455 143 1,407 35 46
-----------------------------------------------------------------------------------
1,592,075 678,264 1,669,470 6,469,097 10,503,254 554,731
Net realized and unrealized
appreciation (depreciation) in
fair value of investments:
Whirlpool common stock 12,092,758 - - - - -
Investments other than Whirlpool
common stock - 4,161,405 (118,116) 1,419,428 28,738,316 139,538
-----------------------------------------------------------------------------------
12,092,758 4,161,405 (118,116) 1,419,428 28,738,316 139,538
Employer contributions - - - - - -
Participant contributions 4,889,528 4,222,729 2,556,960 3,935,298 15,078,165 856,928
-----------------------------------------------------------------------------------
4,889,528 4,222,729 2,556,960 3,935,298 15,078,165 856,928
Participant withdrawals (3,801,153) (1,892,915) (3,348,637) (4,662,902) (16,663,197) (2,187,826)
Loans issued (3,167,146) (879,562) (499,227) (940,981) (5,224,988) (100,912)
Loan repayments 1,707,551 894,319 492,989 960,057 4,162,145 148,907
Administrative expenses (17,158) (3,926) (2,118) (4,053) (24,562) (572)
Interfund transfers (11,355,432) 2,139,074 4,126,414 14,586,331 (25,142,062) 8,013,983
-----------------------------------------------------------------------------------
Assets available for benefits at
end of year $ 57,871,662 $30,452,757 $18,565,883 $49,910,463 $177,906,240 $12,183,207
===================================================================================
Putnam Putnam Putnam
Putnam Putnam Asset Asset Asset
Stable Vanguard S&P 500 Allocation Allocation Allocation
Value Windsor II Index Growth Balanced Conservative
Fund Fund Fund Portfolio Portfolio Portfolio
-----------------------------------------------------------------------------------
Assets available for benefits at
beginning of year $110,892,179 $ - $ - $ 5,029,055 $38,313,040 $ 4,039,181
Dividends on Whirlpool common stock - - - - - -
Other dividends - 185,797 - 957,639 4,344,227 531,337
Interest 5,178,501 - - - 2,533 281
----------------------------------------------------------------------------------
5,178,501 185,797 - 957,639 4,346,760 531,618
Net realized and unrealized
appreciation (depreciation) in
fair value of investments:
Whirlpool common stock - - - - - -
Investments other than Whirlpool
common stock - (156,412) 13,604 743,796 2,517,421 189,409
----------------------------------------------------------------------------------
- (156,412) 13,604 743,796 2,517,421 189,409
Employer contributions - - - - - -
Participant contributions 9,151,794 11,774 6,886 1,387,524 4,819,574 1,569,591
----------------------------------------------------------------------------------
9,151,794 11,774 6,886 1,387,524 4,819,574 1,569,591
Participant withdrawals (34,660,377) (3,157) (1,816) (1,299,647) (6,759,802) (1,484,236)
Loans issued (2,673,508) (203) (2,445) (211,998) (1,270,629) (96,190)
Loan repayments 2,288,777 5,782 5,179 293,410 1,051,815 88,407
Administrative expenses (15,179) (9) (21) (1,144) (6,198) (299)
Interfund transfers 1,817,952 3,929,189 2,718,170 5,877,225 4,494,480 2,589,925
----------------------------------------------------------------------------------
Assets available for benefits at
end of year $ 91,980,139 $3,972,761 $2,739,557 $12,775,860 $47,506,461 $ 7,427,406
===================================================================================
Contributions
Pending Participant
Allocation Loans Total
-------------------------------------------
Assets available for benefits at
beginning of year $13,747,271 $ 19,838,946 $481,997,615
Dividends on Whirlpool common stock - - 1,592,075
Other dividends - - 25,869,730
Interest - 1,912,301 7,117,702
-------------------------------------------
- 1,912,301 34,579,507
Net realized and unrealized
appreciation (depreciation) in
fair value of investments:
Whirlpool common stock - - 12,092,758
Investments other than Whirlpool
common stock - - 37,648,389
-------------------------------------------
- - 49,741,147
Employer contributions 7,155,734 - 7,155,734
Participant contributions 6,341,577 - 54,828,328
-------------------------------------------
13,497,311 - 61,984,062
Participant withdrawals - (679,704) (77,445,369)
Loans issued - 15,067,789 -
Loan repayments - (12,099,338) -
Administrative expenses - - (75,239)
Interfund transfers (13,795,249) - -
-------------------------------------------
Assets available for benefits at
end of year $ 13,449,333 $ 24,039,994 $550,781,723
===========================================
F-15
Whirlpool 401(k) Plan
Notes to Financial Statements (continued)
6. Income Tax Status
The Internal Revenue Service ruled on March 27, 1995, that the Plan qualified
under section 401(a) of the IRC and that the related trust is tax-exempt under
section 501(a) of the IRC. The Plan has been amended since receiving the
determination letter. In addition, in order to maintain its qualified status,
the Plan must be operated in accordance with the terms of the Plan document and
the requirements of the IRC. The Plan Administrator believes that the Plan is
designed and is currently being operated in compliance with the applicable
requirements of the IRC.
7. Year 2000 Issue (Unaudited)
The Plan Sponsor has developed a plan to modify its internal information
technology to be ready for the year 2000 and has begun converting critical data
processing systems. The project also includes determining whether third-party
service providers have reasonable plans in place to become Year 2000 compliant.
The custodian and recordkeeper are Year 2000 compliant.
F-16
Supplemental Schedules
F-17
EIN 38-1490038
Plan #001
Whirlpool 401(k) Plan
Line 27a Schedule of Assets Held for Investment Purposes
December 31, 1998
Number of Contract/
Shares Current
Description of Investment or Units Cost Value
- --------------------------------------------------------------------------------------------------------------------------
Mutual funds:
Putnam* New Opportunities Fund 772,441 units $ 36,904,992 $ 45,682,185
EuroPacific Growth Fund* 679,923 units 17,975,381 19,309,815
Heartland Value Fund* 1,012,978 units 32,930,426 29,670,134
Putnam* Voyager Fund 9,201,919 units 166,806,384 205,018,751
Putnam* Income Fund 2,153,479 units 15,164,030 14,923,611
Putnam* Stable Value Fund 39,537,198 units 39,537,198 39,368,302
Vanguard Windsor II Fund* 739,546 units 22,533,623 22,075,459
Putnam* S&P 500 Index Fund 893,578 units 22,546,735 25,851,201
Putnam* Asset Allocation Growth Portfolio 800,790 units 9,947,930 10,962,810
Putnam* Asset Allocation Balanced Portfolio 3,792,094 units 41,389,125 45,543,044
Putnam* Asset Allocation Conservative Portfolio 723,786 units 7,342,221 7,520,141
----------------------------
413,078,045 465,925,453
Boston Safe Deposit & Trust Company
Short-Term Investment Fund 78,881 units 78,881 78,881
Whirlpool Corporation* common stock 1,296,264 shares 68,111,953 71,780,613
Insurance contracts:
Continental Assurance Company* guaranteed investment
contract, #GP-24029, 5.15% 3,653,198 3,653,198
GE Life & Annuity Assurance Co.* guaranteed investment
contract, #GS-2949, 6.40% 1,250,213 1,250,213
GE Life & Annuity Assurance Co.* guaranteed investment
contract, #GS-3056, 5.81% 6,464,852 6,464,852
F-18
EIN 38-1490038
Plan #001
Whirlpool 401(k) Plan
Line 27a Schedule of Assets Held for Investment Purposes (continued)
December 31, 1998
Number of Contract/
Shares Current
Description of Investment or Units Cost Value
- --------------------------------------------------------------------------------------------------------------------
Insurance contracts (continued):
John Hancock Mutual Life Insurance Company* guaranteed
insurance contract, #GAC-8722, 6.03% $ 2,575,427 $ 2,575,427
Metropolitan Life Insurance Co.* guaranteed investment
contract, #GAC-24896, 6.05% 4,170,921 4,170,921
Monumental Life Insurance Co.* guaranteed investment
contract, #BDA-00720-FR, 5.07% 4,256,681 4,256,681
New York Life* guaranteed investment contract,
#GA-30679, 5.15% 4,485,688 4,485,688
New York Life * guaranteed investment contract,
#GA-30745, 5.40% 4,827,573 4,827,573
Pacific Life Insurance Co.* guaranteed investment
contract, #G-26430.01, 6.02% 4,119,026 4,119,026
Principal Life Insurance Company* guaranteed investment
contract, #GA-4-30429, 6.25% 3,546,557 3,546,557
Transamerica Occidental guaranteed investment contract,
#GA-51469-00, 4.99% 5,822,951 5,822,951
United of Omaha guaranteed investment contract,
#SDGA-11566, 5.94% 2,506,735 2,506,735
--------------------------------
47,679,822 47,679,822
Participant loans (9%) - 27,019,516
--------------------------------
Total investments $528,948,701 $612,484,285
================================
*Party in interest.
F-19
EIN 38-1490038
Plan #001
Whirlpool 401(k) Plan
Line 27d -- Schedule of Reportable Transactions
Year ended December 31, 1998
Current
Value
of Asset on
Identity of Purchase Selling Cost of Transaction Net Gain
Party Involved Description of Assets Price Price Asset Date (Loss)
- -----------------------------------------------------------------------------------------------------------------------------
Category (iii) -- Series of transactions in excess of 5% of plan assets
- -----------------------------------------------------------------------
Putnam Investment Company* Putnam New Opportunities Fund $32,684,742 $ -- $32,684,742 $32,684,742 $ --
-- 23,845,296 22,955,219 23,845,296 890,077
Putnam Voyager Fund 45,374,044 -- 45,374,044 45,374,044 --
-- 45,497,081 39,992,173 45,497,081 5,504,908
Putnam Income Fund 28,067,022 -- 28,067,022 28,067,022 --
-- 24,815,196 24,969,067 24,815,196 (153,871)
Putnam Stable Value Fund 69,509,433 -- 69,509,433 69,509,433 --
-- 74,155,539 74,155,539 74,155,539 --
Putnam S&P 500 Index Fund 31,208,850 -- 31,208,850 31,208,850 --
-- 11,938,400 11,390,043 11,938,400 548,357
Putnam Asset Allocation Balanced
Portfolio 12,646,344 -- 12,646,344 12,646,344 --
-- 18,034,134 17,211,750 18,034,134 822,384
American Funds* Heartland Value Fund 15,182,864 -- 15,182,864 15,182,864 --
-- 30,491,775 30,780,183 30,491,775 (288,408)
The Vanguard Group* Vanguard Windsor II Fund 30,084,367 -- 30,084,367 30,084,367 --
-- 11,596,859 11,659,053 11,596,859 (62,194)
Whirlpool Corporation* Common stock 47,910,850 -- 47,910,850 47,910,850 --
-- 35,263,560 31,474,205 35,263,560 3,789,355
Note: There were no category (i), (ii), or (iv) reportable transactions for the
year ended December 31, 1998.
*Party in interest.
Expenses related to the purchase and sales of investments are included in the
cost of the investment or the proceeds from the sale and are not separately
identified.
F-20
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
trustees of the Plan have duly caused this annual report to be signed by the
undersigned hereunto duly authorized.
WHIRLPOOL 401(k) PLAN
By: /s/ Kenneth W. Kaminski
------------------------
Name: Kenneth W. Kaminski
Title: Trustee and Chairman of the
Individual Trustees
Date: June 23, 1999
Exhibit Index
--------------
Sequential
Exhibit No. Document Page Number*
- ----------- -------- ------------
23 Consent of Ernst & Young
__________________________
* This information appears only in the manually signed original of the Form 11-K