FORM 11-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
[X] ANNUAL REPORT PURSUANT TO SECTION 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934 [FEE REQUIRED]
For the fiscal year ended December 31, 1997
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: 0-7574
WAUSAU-MOSINEE PAPER CORPORATION HOURLY
SAVINGS AND INVESTMENT PLAN
(Full title of the plan and the address of the plan, if different from
the issuer named below)
WAUSAU-MOSINEE PAPER CORPORATION
1244 KRONENWETTER DRIVE
MOSINEE, WI 54455-9099
(Name of issuer of the securities held pursuant to the plan
and the address of its principal executive office)
<PAGE>
WAUSAU-MOSINEE PAPER CORPORATION
HOURLY SAVINGS AND INVESTMENT PLAN
Mosinee, Wisconsin
FINANCIAL STATEMENTS
AND SUPPLEMENTAL SCHEDULES
Year Ended December 31, 1997
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<PAGE>
WAUSAU-MOSINEE PAPER CORPORATION
HOURLY SAVINGS AND INVESTMENT PLAN
FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULES
Year Ended December 31, 1997
TABLE OF CONTENTS
PAGE
Independent Auditor's Report 4
Financial Statements:
Statements of Net Assets Available for Benefits 5 - 7
Statement of Changes in Net Assets Available for Benefits 8 - 12
Notes to Financial Statements 13 - 19
Supplemental Schedules:
Schedule 1 - Item 27a - Schedule of Assets Held for Investment
Purposes 21
Schedule 2 - Item 27d - Schedule of Reportable (5%) Transactions 22
-3-
<PAGE>
INDEPENDENT AUDITOR'S REPORT
Employee Benefits Committee of the
Wausau-Mosinee Paper Corporation
Mosinee, Wisconsin
We have audited the accompanying statements of net assets available for
benefits of the WAUSAU-MOSINEE PAPER CORPORATION HOURLY SAVINGS AND INVESTMENT
PLAN (the "Plan") as of December 31, 1997 and 1996, and the related statement
of changes in net assets available for benefits for the year ended December
31, 1997. 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 net assets available for benefits of the WAUSAU-
MOSINEE PAPER CORPORATION HOURLY SAVINGS AND INVESTMENT PLAN as of December
31, 1997 and 1996, and changes in net assets available for benefits for the
year ended December 31, 1997 in conformity with generally accepted accounting
principles.
Our audits were conducted for the purpose of forming an opinion on the
financial statements taken as a whole. The supplemental schedules of assets
held for investment purposes and reportable transactions as of and for the
year ended December 31, 1997 are presented for the purpose of additional
analysis and are not a required part of the basic financial statements but are
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 schedules have been subjected to the
auditing procedures applied in the audit of the basic financial statements for
the year ended December 31, 1997, and, in our opinion, are fairly stated in
all material respects in relation to the basic financial statements taken as a
whole.
WIPFLI ULLRICH BERTELSON LLP
Wipfli Ullrich Bertelson LLP
June 19, 1998
Wausau, Wisconsin
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<PAGE>
WAUSAU-MOSINEE PAPER CORPORATION
HOURLY SAVINGS AND INVESTMENT PLAN
<TABLE>
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
December 31, 1997
<CAPTION>
WAUSAU-MOSINEE
TEMPLETON FIDELITY PAPER CORP NATIONWIDE NEUBERGER &
FOREIGN MAGELLAN COMMON STOCK INDEXED BERMAN LIM
FUND I FUND FUND FIXED OPTION MAT BOND TRST
<S> <C> <C> <C> <C> <C>
Participant
contribution
receivable $ 9,286 $ 37,077 $ 4,287 $ 5,469 $ 850
Investments 351,081 1,913,209 284,895 266,682 15,414
Total assets 360,367 1,950,286 289,182 272,151 16,264
Net assets available
for benefits $360,367 $1,950,286 $289,182 $272,151 $16,264
</TABLE>
<TABLE>
<CAPTION>
FIDELTY PHOENIX NEUBERGER & DREFUS JANUS
DREYFUS A PURITAN BALANCED BERMAN S & P 500 TWENTY
BONDS PLUS FUND FUND GUARDIAN TRST INDEX FUND FUND
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
Participant
contribution
receivable $ 280 $ 4,158 $ 209 $ 22,254 $ 6,199 $ 9,393
Investments 8,536 159,477 5,664 887,780 146,702 22,0773
Total assets 8,836 163,635 5,873 910,034 152,901 232,466
Net assets
available
for benefits $8,836 $163,635 $5,873 $910,034 $152,901 $232,466
</TABLE>
<TABLE>
<CAPTION>
JANUS NSAT SMALL WARBURG-PINCUS
WORLDWIDE COMPANY EMERGING PERSONAL PERSONAL
FUND FUND GROWTH FUND PORTFOLIO 1 PORTFOLIO 2
<S> <C> <C> <C> <C> <C>
ASSETS:
Participant
contribution
receivable $ 6,818 $ 311 $ 798 $ 4 $ 60
Investments 169,090 9,953 22,598 213 1,677
Total assets 175,908 10,264 23,396 217 1,737
Net assets
available
for benefits $175,908 $10,264 $23,396 $217 $1,737
</TABLE>
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<PAGE>
<TABLE>
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
DECEMBER 31, 1997
(CONTINUED)
<CAPTION>
PERSONAL PERSONAL PERSONAL PERSONAL PARTICIPANT
PORTFOLIO 3 PORTFOLIO 4 PORTFOLIO 5 PORTFOLIO 6 LOANS TOTALS
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
Participant
contribution
receivable $ 314 $ 466 $ 2,190 $ 1,779 $ $ 112,202
Investments 11,796 2,277 27,103 42,739 25,977 4,575,956
Total assets 12,110 2,743 29,293 44,518 25,977 4,688,158
Net assets
available
for benefits $12,110 $2,743 $29,293 $44,518 $25,977 $4,688,158
<FN>
See accompanying notes to financial statements
</TABLE>
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<PAGE>
WAUSAU-MOSINEE PAPER CORPORATION
HOURLY SAVINGS AND INVESTMENT PLAN
<TABLE>
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
December 31, 1996
<CAPTION>
TEMPLETON NEUBERGER MARSHALL FIDELITY
FOREIGN & BERMAN & ILSLEY GENERAL MAGELLAN
FUND I GUARDIAN FUND BALANCED FUND ACCOUNT FUND
<S> <C> <C> <C> <C> <C>
ASSETS:
Participant
contribution
receivable $ - $ - $ - $ - $ -
Investments 185,874 611,261 126,289 261,391 1,278,245
Total assets 185,874 611,261 126,289 261,391 1,278,245
Net assets
available
for benefits $185,874 $611,261 $126,289 $261,391 $1,278,245
</TABLE>
<TABLE>
<CAPTION>
WAUSAU-MOSINEE
PAPER CORP
COMMON STOCK PARTICIPANT
FUND LOANS TOTALS
<S> <C> <C> <C>
ASSETS:
Participant
contribution
receivable $ - $ - $ -
Investments 197,925 9,163 2,670,148
Total assets 197,925 9,163 2,670,148
Net assets available
for benefits 197,925 9,163 2,670,148
<FN>
See accompanying notes to financial statements
</TABLE>
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<PAGE>
WAUSAU-MOSINEE PAPER CORPORATION
HOURLY SAVINGS AND INVESTMENT PLAN
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
Year Ended December 31, 1997
<CAPTION>
TEMPLETON NEUBERGER MARSHALL FIDELITY
FOREIGN & BERMAN & ILSLEY GENERAL MAGELLAN
FUND I GUARDIAN FUND BALANCED FUND ACCOUNT FUND
<S> <C> <C> <C> <C> <C>
ADDITIONS:
Participant deferral
contributions $176,951 $ 259,047 $ 50,664 $100,497 $ 563,548
Participant rollover
contributions 6,491 12,116
Investment income 10,566 199,715 18,304 18,517 382,273
Transfers from
other funds
Total additions 194,008 470,878 68,968 119,014 945,821
DEDUCTIONS:
Employee benefits
and withdrawals 1,811 909 1,734 1,721 10,955
Investment loss
Administrative
expenses 25 51 131 213 330
Transfers to
other funds 17,679 1,081,179 193,392 378,471 262,495
Total deductions 19,515 1,082,139 195,257 380,405 273,780
Net additions
(deductions) 174,493 (611,261) (126,289) (261,391) 672,041
Net assets available
for benefits at
beginning 185,874 611,261 126,289 261,391 1,278,245
Net assets available
for benefits at end $360,367 $ - $ - $ - $1,950,286
</TABLE>
-8-
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
Year Ended December 31, 1997
(continued)
<TABLE>
<CAPTION>
WAUSAU-MOSINEE
PAPER CORP NATIONWIDE NEUBERGER & FIDELITY
COMMON STOCK INDEXED BERMAN LIM DREYFUS A PURITAN
FUND FIXED OPTION MAT BOND TRST BONDS PLUS FUND
<S> <C> <C> <C> <C> <C>
ADDITIONS:
Participant deferral
contributions $ 95,422 $ 19,784 $ 3,134 $ 838 $ 14,847
Participant rollover
contributions 1,430 477
Investment income 23,780 3,160 150 248 2,708
Transfers from
other funds 249,251 11,550 7,750 145,603
Total additions 119,202 272,195 16,264 8,836 163,635
DEDUCTIONS:
Employee benefits
and withdrawals 1,503 44
Investment loss
Administrative
expenses
Transfers to
other funds 26,442
Total deductions 27,945 44 - - -
Net additions
(deductions) 91,257 272,151 16,264 8,836 163,635
Net assets available for
benefits at beginning 197,925
Net assets available for
benefits at end $289,182 $272,151 $16,264 $8,836 $163,635
</TABLE>
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<PAGE>
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
Year Ended December 31, 1997
(Continued)
<TABLE>
<CAPTION>
PHOENIX NEUBERGER & DREYFUS
BALANCED BERMAN S & P 500
FUND GUARDIAN TRST INDEX FUND
<S> <C> <C> <C>
ADDITIONS:
Participant deferral
contributions $ 717 $ 77,839 $ 20,460
Participant rollover
contributions
Investment income 1,149
Transfers from
other funds 5,197 924,697 131,292
Total additions 5,914 1,002,536 152,901
DEDUCTIONS:
Employee benefits
and withdrawals 274
Investment loss 41 92,228
Administrative
expenses
Transfers to
other funds
Total deductions 41 92,502 -
Net additions
(deductions) 5,873 910,034 152,901
Net assets available for
benefits at beginning
Net assets available for
benefits at end 5,873 910,034 152,901
</TABLE>
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<PAGE>
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
Year Ended December 31, 1997
(Continued)
<TABLE>
<CAPTION>
JANUS JANUS NSAT SMALL WARBURG-PINCUS
TWENTY WORLDWIDE COMPANY EMERGING PERSONAL PERSONAL
FUND FUND FUND GROWTH FUND PORTFOLIO 1 PORTFOLIO 2
<S> <C> <C> <C> <C> <C> <C>
ADDITIONS:
Participant deferral
contributions $ 30,528 $ 24,124 $ 961 $ 2,444 $ 15 $ 199
Participant rollover
contributions
Investment income 2 13
Transfers from
other funds 210,257 159,450 10,082 22,184 200 1,525
Total additions 240,785 183,574 11,043 24,628 217 1,737
DEDUCTIONS:
Employee benefits
and withdrawals
Investment loss 8,319 7,666 779 1,232
Administrative
expenses
Transfers to
other funds
Total deductions 8,319 7,666 779 1,232 - -
Net additions
(deductions) 232,466 175,908 10,264 23,396 217 1,737
Net assets available for
benefits at beginning
Net assets available for
benefits at end $232,466 $175,908 $10,264 $23,396 $ 217 $1,737
</TABLE>
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<PAGE>
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
Year Ended December 31, 1997
(Continued)
<TABLE>
<CAPTION>
PERSONAL PERSONAL PERSONAL PERSONAL PARTICIPANT
PORTFOLIO 3 PORTFOLIO 4 PORTFOLIO 5 PORTFOLIO 6 LOANS TOTALS
<S> <C> <C> <C> <C> <C> <C>
ADDITIONS:
Participant deferral
contributions $ 1,012 $ 1,690 $ 7,539 $ 6,414 $ $1,458,674
Participant rollover
contributions 7,629 28,143
Investment income 11 1,585 662,181
Transfers from
other funds 11,099 1,042 22,131 31,119 15,229 1,959,658
Total additions 12,111 2,743 29,670 45,162 16,814 4,108,656
DEDUCTIONS:
Employee benefits
and withdrawals 18,951
Investment loss 1 377 644 111,287
Administrative
expenses 750
Transfers to
other funds 1,959,658
Total deductions 1 - 377 644 - 2,090,646
Net additions
(deductions) 12,110 2,743 29,293 44,518 16,814 2,018,010
Net assets available for
benefits at beginning 9,163 2,670,148
Net assets available for
benefits at end $12,110 $2,743 $29,293 $44,518 $25,977 $4,688,158
</TABLE>
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<PAGE>
WAUSAU-MOSINEE PAPER CORPORATION
HOURLY SAVINGS AND INVESTMENT PLAN
NOTES TO FINANCIAL STATEMENTS
NOTE 1 - DESCRIPTION OF PLAN AND FUNDING POLICY
The following description of the Wausau-Mosinee Paper Corporation Hourly
Savings and Investment Plan (the "Plan") provides only general information.
Participants should refer to the Plan Agreement for a more complete
description of the Plan's provisions.
GENERAL
The Plan was established on June 1, 1994. It is a defined contribution plan
covering all regular full-time hourly employees of Wausau-Mosinee Paper
Corporation (the "Company") who are members of the collective bargaining units
represented by United Paperworkers International Union Local 1260 and 1381
AFL-CIO. An employee becomes eligible to participate in the Plan on the first
day of the first month coinciding with or next following the 60th full working
day of employment. The Plan is subject to the provisions of the Employee
Retirement Income Security Act of 1974 (ERISA).
CONTRIBUTIONS
Participants are allowed to contribute up to 16 percent of their gross annual
compensation, as defined in the Plan document. The Company currently does not
match any portion of participant deferral contributions. Contributions are
subject to certain limitations.
The Plan allows participants to roll over distributions from another company's
retirement plan. Participants may deposit any portion of a distribution that
has not been taxed, provided that the deposit is made within 60 days of
distribution. These deposits are not subject to the contribution limitations
under the Internal Revenue Code (IRC). The Company does not match these
contributions.
VESTING
Participants are fully vested in their entire account balance which includes
salary deferral and rollover contributions plus earning/losses thereon.
A participant may withdraw any portion of their account balance for any reason
after they reach age 59 1/2 or at any age if they demonstrate financial
hardship. Financial hardship withdrawals are subject to government regulation
and may be subject to a 10 percent penalty.
INVESTMENT OPTIONS
The Plan allows participants to select their investment options from one or
more of the following choices:
COMPANY STOCK
Funds are invested exclusively in the common stock of Wausau-Mosinee Paper
Corporation and are not considered to be a diversified investment option. The
fund seeks long-term capital growth, with current income and growth of income
as secondary objective.
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<PAGE>
NOTE 1 - DESCRIPTION OF PLAN AND FUNDING POLICY (CONTINUED)
INVESTMENT OPTIONS (CONTINUED)
<bullet> Wausau-Mosinee Paper Corporation Common Stock Fund
INTERNATIONAL/GLOBAL FUNDS
Funds are invested primarily in diversified equity securities and debt
obligations of companies and governments outside the United States. The funds
seek long-term capital appreciation.
<bullet> Templeton Foreign Fund I
<bullet> Janus Worldwide Fund
AGGRESSIVE GROWTH FUNDS
Funds are invested in diversified equity securities of small-to-medium sized
companies in the United States with emerging or renewed growth potential. The
funds seek long-term capital appreciation.
<bullet> Nationwide Separate Account Trust (NSAT) Small Company Fund
<bullet> Warburg Pincus Emerging Growth Fund
GROWTH FUNDS
Funds are invested in diversified equity securities of small, medium, and
large companies considered to have better-than-average prospects for
appreciation. The funds seek long-term capital appreciation.
<bullet> Fidelity Magellan Fund
<bullet> Janus Twenty Fund
GROWTH AND INCOME FUNDS
Funds are invested in a portfolio of common stocks, securities convertible to
common stocks, and income-producing equity securities. The funds seek long-
term total return and potential for capital appreciation with current income
provided by dividends as a secondary objective.
<bullet> Dreyfus S & P 500 Index Fund
<bullet> Neuberger & Berman Guardian Fund
<bullet> Neuberger & Berman Guardian Trust
BALANCED/ASSET ALLOCATION FUNDS
Funds are invested in common stocks for growth potential, high-quality
government and corporate bonds to generate income, and short-term money market
instruments to help balance volatility. The funds seek to maximize investment
returns consistent with reasonable safety of principal by investing in a mix
of asset classes noted above.
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<PAGE>
NOTE 1 - DESCRIPTION OF PLAN AND FUNDING POLICY (CONTINUED)
INVESTMENT OPTIONS (CONTINUED)
<bullet> Fidelity Puritan Fund
<bullet> Marshall & Ilsley Balanced Fund
<bullet> Phoenix Balanced Fund
INCOME FUNDS
Funds are invested in a diversified group of high quality debt securities with
varying maturities. The funds seek the maximum amount of current income to
the extent consistent with the preservation of capital and the maintenance of
liquidity.
<bullet> Dreyfus A Bonds Plus
<bullet> Neuberger & Berman Limited Maturity Bond Trust
GUARANTEED RETURN CONTRACT
Funds are invested primarily in investment grade bonds and mortgage backed
securities. The funds guarantee a stated rate of return on a quarterly basis
that is indexed to the Treasury Note yield.
<bullet> General Account
<bullet> Nationwide Indexed Fixed Option
LIFESTYLE FUNDS
Funds are managed by a group of subadvisers who manage a portion of each
fund's portfolio. Each of the six lifestyle funds vary from conservative -
short-term (Personal Portfolio 1) to aggressive - long-term (Personal
Portfolio 6) investment styles.
<bullet> Personal Portfolios 1 - 6
Participants may change their investment elections for current account balance
and future employee deferrals as often as they would like.
PARTICIPANT LOANS
Participants may borrow from their fund accounts. Loan transactions are
treated as a transfer to (from) the investment fund from (to) the participant
loans fund. Loan terms range from one to five years or longer if for the
purchase of a primary residence. Loans may not exceed the lesser of 50
percent of the participant's account balance or $50,000, and are secured by
the balance in the participant's account. The loans bear interest at a rate
commensurate with local prevailing rates as determined from time to time by
the Company's employee benefits committee. Interest rates on existing loans
range from 10.25 percent to 10.75 percent. Principal and interest are paid
ratably through payroll deductions. Upon termination of employment,
outstanding balances become due and payable to the Plan.
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<PAGE>
NOTE 1 - DESCRIPTION OF PLAN AND FUNDING POLICY (CONTINUED)
PAYMENT OF BENEFITS
On termination of service due to death, disability, or retirement, a
participant's account is payable to the participant, or a named beneficiary,
based on the participant's elected payment method. The payment options
available are lump-sum, period payment, or nontransferable annuity.
EXPENSES OF THE PLAN
Administrative expenses charged by Pension Associates of Wausau, Inc., and all
other expenses incurred in conjunction with the Plan are paid by the Company.
Investment advisory and management fees are offset against earnings. Loan
fees are charged directly to the participant's account against the investment
option for which the loan was originally charged.
PLAN TERMINATION
The Company intends to continue the Plan indefinitely, but reserves the right
to terminate the Plan at any time. In the event of termination, the account
of each participant is nonforfeitable. The account will be held under the
Plan and continue to accrue investment earnings until all benefits have been
distributed according to the terms of the Plan.
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING
The accompanying financial statements of the Plan are presented on the accrual
basis of accounting in accordance with generally accepted accounting
principles.
USE OF ESTIMATES IN PREPARATION OF FINANCIAL STATEMENTS
The preparation of financial statements in conformity with generally accepted
accounting principles requires the plan administrator to make estimates and
assumptions that affect certain reported amounts and disclosures.
Accordingly, actual results may differ from those estimates.
INVESTMENT VALUATION
The Plan's various mutual fund and company stock investments are carried at
current value which represents the quoted market values of the underlying
investments on the last business day of the plan year including current income
and investment expenses. Investments in the Nationwide Indexed Fixed Option
and General Account are stated at contract amount which approximates fair
value. Loans are stated at estimated fair value and are deemed collectible.
Securities transactions are accounted for on the trade-date basis (the date
the order to buy or sell is executed).
Gains or losses on security transactions are recorded as the difference
between proceeds received and the carrying value of the investments. Interest
income is recognized on the accrual method, and dividend income is recorded on
the ex-dividend date.
-16-
<PAGE>
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Investment income/loss on the statement of changes in net assets available for
benefits includes unrealized appreciation or depreciation, realized gains and
losses, interest, and dividends. Specific detail of investment income/loss is
not available from the trustee.
PAYMENT OF BENEFITS
Benefit payments to participants are recorded upon distribution.
NOTE 3 - INVESTMENTS
<TABLE>
The following represents a summary of the market value of investments at
December 31, 1997 and 1996. Investments that individually represent 5 percent
or more of the Plan's net assets available for benefits are separately
identified.
<CAPTION>
ASSET MARKET VALUE
1997 1996
Investments at Fair Value as
DETERMINED BY QUOTED MARKET PRICE
<S> <C> <C>
Wausau-Mosinee Paper Corporation common stock $ 284,895 $ 197,925
Common/collective trust - Marshall & Ilsley Balanced Fund 126,289
Pooled separate accounts:
Templeton Foreign Fund 351,081 185,874
Fidelity Magellan Fund 1,913,209 1,278,245
Neuberger & Berman Guardian Trust 887,780
Other 846,332
3,998,402 1,464,119
Registered investment company - Neuberger & Berman
Guardian Fund 611,261
INVESTMENTS AT ESTIMATED FAIR VALUE
Participant loans 25,977 9,163
INVESTMENTS AT CONTRACT VALUE
Investment contracts between financial institutions:
Nationwide Indexed Fixed Option 266,682
General Account 261,391
266,682 261,391
Total investments $4,575,956 $2,670,148
</TABLE>
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<PAGE>
NOTE 3 - INVESTMENTS (CONTINUED)
<TABLE>
During 1997 and 1996, the Plan's investments (including investments bought,
sold, and held during the year) appreciated in value as follows:
<CAPTION>
NET CHANGE IN FAIR VALUE
1997 1996
Investments at Fair Value as
DETERMINED BY QUOTED MARKET PRICE
<S> <C> <C>
Wausau-Mosinee Paper Corporation common stock $ 23,780 $ (1,732)
Common/collective trust 18,304 9,043
Pooled separate accounts 285,833 125,686
Registered investment company 199,715 78,884
527,632 211,881
INVESTMENTS AT ESTIMATED FAIR VALUE
Participant loans 1,585 647
INVESTMENTS AT CONTRACT VALUE
Investment contracts between financial institutions 21,677 12,776
Net change in fair value $ 550,894 $ 225,304
</TABLE>
NOTE 4 - RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500
<TABLE>
The following is a reconciliation of net assets available for benefits at
December 31, 1997 to Form 5500. Reconciling differences exist since the
financial statements are prepared on the accrual basis of accounting and the
Form 5500 is prepared on a modified cash basis.
<CAPTION>
<S> <C>
Net assets available for benefits $ 4,688,158
Less - Receivables for participant contributions 112,202
Net assets available for benefits - Form 5500 $ 4,575,956
</TABLE>
NOTE 5 - TAX-EXEMPT STATUS OF THE PLAN
The Internal Revenue Service has determined and informed the Company by a
letter dated August 23, 1995, that the Plan is qualified and the trust
established under the Plan is tax-exempt, under the appropriate sections of
the IRC. The Plan has been amended since receiving the determination letter.
However, the plan administrator and Plan's tax counsel believe the Plan is
currently designed and being operated in compliance
-18-
NOTE 5 - TAX-EXEMPT STATUS OF THE PLAN (CONTINUED)
with the applicable requirements of the IRC. Therefore, they believe the
Plan is qualified and the related trust is tax-exempt as of the financial
statement date.
<PAGE>
NOTE 6 - NOTICE OF AVAILABILITY
The complete annual report of the Wausau-Mosinee Paper Corporation Hourly
Savings and Investment Plan is available upon request for a reasonable charge
and is also available for examination at the plan administrator's office
located in Mosinee, Wisconsin during normal business hours.
-19-
<PAGE>
SUPPLEMENTAL SCHEDULES
-20-
<PAGE>
<TABLE>
WAUSAU-MOSINEE PAPER CORPORATION
HOURLY SAVINGS AND INVESTMENT PLAN
PLAN'S EIN #39-0690900 PLAN #004
<CAPTION>
SCHEDULE 1-ITEM 27A-SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 1997
Identity of Issue, Borrower Description of Investment Including Maturity Date, Current
Lessor, or Similar Party Rate of Interest, Collateral, Par or Maturity Value Cost Value
<S> <C> <C> <C>
Nationwide Life Insurance Company Pooled separate account - Templeton Foreign Fund I * $ 351,081
Nationwide Life Insurance Company Pooled separate account - Fidelity Magellan Fund * 1,913,209
Wausau-Mosinee Paper Corporation Common stock-Wausau-Mosinee Paper Corp Common
Stock Fund * 284,895
Nationwide Life Insurance Company Group annuity contract - Nationwide Indexed Fixed
Option 5.57% $266,682 266,682
Nationwide Life Insurance Company Pooled separate account-Neuberger & Berman Lim Mat
Bond Trst * 15,414
Nationwide Life Insurance Company Pooled separate account-Dreyfus A Bonds Plus * 8,556
Nationwide Life Insurance Company Pooled separate account-Fidelity Puritan Fund * 159,477
Nationwide Life Insurance Company Pooled separate account-Phoenix Balanced Fund * 5,664
Nationwide Life Insurance Company Pooled separate account-Neuberger & Berman Guardian
Trust * 887,780
Nationwide Life Insurance Company Pooled separate account-Dreyfus S & P 500 Index Fund * 146,702
Nationwide Life Insurance Company Pooled separate account - Janus Twenty Fund * 223,073
Nationwide Life Insurance Company Pooled separate account-Janus Worldwide Fund * 169,090
Nationwide Life Insurance Company Pooled separate account-NSAT Small Company Fund * 9,953
Nationwide Life Insurance Company Pooled separate account-Warburg-Pincus Emerging Growth Fund * 22,598
Nationwide Life Insurance Company Pooled separate account-Personal Portfolio 1 * 213
Nationwide Life Insurance Company Pooled separate account-Personal Portfolio 2 * 1,677
Nationwide Life Insurance Company Pooled separate account-Personal Portfolio 3 * 11,796
Nationwide Life Insurance Company Pooled separate account-Personal Portfolio 4 * 2,277
Nationwide Life Insurance Company Pooled separate account-Personal Portfolio 5 * 27,103
Nationwide Life Insurance Company Pooled separate account-Personal Portfolio 6 * 42,739
Participant Loans Interest rate during year 10.25%-10.75% 0 25,977
<FN>
* The mutual fund assets consist of pooled funds held by the custodian.
The custodian has stated that they cannot provide information regarding
the cost of the investments. There were no investment assets
reportable as acquired and disposed of during the year.
See Independent Auditor's Report
</TABLE>
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<PAGE>
<TABLE>
WAUSAU-MOSINEE PAPER CORPORATION
HOURLY SAVINGS AND INVESTMENT PLAN
PLAN'S EIN #39-0690900 PLAN #004
<CAPTION>
SCHEDULE 2-ITEM 27D-SCHEDULE OF REPORTABLE (5%) TRANSACTIONS
DECEMBER 31, 1997
Expense
In- Current
curred Value of Net
With Asset on Gain
Identity of Purchase Selling Lease Trans- Cost of Transaction or
Party Involved Description of Asset Price Price Rental action Asset Date (Loss)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Nationwide Life Group Annuity contract -
Insurance Company General Account $249,251 $ N/A $ N/A $ N/A $249,251 $249,251 $ N/A
Nationwide Life Pooled separate account -
Insurance Company Fidelity Puritan Fund 145,603 N/A N/A N/A N/A 145,603 N/A
Nationwide Life Pooled separate account -
Insurance Company Neuberger & Berman
Guardian Trust 924,696 N/A N/A N/A N/A 924,696 N/A
Nationwide Life Pooled separate account -
Insurance Company Fidelity Magellan Fund 563,548 262,496 N/A N/A N/A 826,044 N/A
Nationwide Life Pooled separate account -
Insurance Company Janus Twenty Fund 210,257 N/A N/A N/A N/A 210,257 N/A
Nationwide Life Pooled separate account -
Insurance Company Templeton Foreign Fund I 183,442 N/A N/A N/A N/A 183,442 N/A
Nationwide Life Pooled separate account -
Insurance Company Janus Worldwide Fund 159,450 N/A N/A N/A N/A 159,450 N/A
Neuberger & Berman Registered investment
Management, Inc. Company - Neuberger &
Berman Guardian Fund 271,163 1,081,179 N/A N/A N/A 1,352,342 N/A
Marshall & Ilsley Common/collective trust -
Corporation Marshall & Ilsley
Balanced Fund N/A 193,392 N/A N/A N/A 193,392 N/A
Employers Life Group annuity contract -
Insurance General account
Company of Wausau N/A 378,471 N/A N/A 378,471 378,471 N/A
<FN>
See Independent Auditor's Report
</TABLE>
-22-
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
trustee has duly caused this annual report to be signed on its behalf by
the undersigned hereunto duly authorized.
WAUSAU-MOSINEE PAPER CORPORATION
HOURLY SAVINGS AND INVESTMENT PLAN
DATE: June 29, 1998 LARRY A. BAKER
Larry A. Baker
Trustee
-23-
<PAGE>
EXHIBIT INDEX
TO
FORM 11-K
OF
WAUSAU-MOSINEE PAPER CORPORATION HOURLY
SAVINGS AND INVESTMENT PLAN
FOR THE YEAR ENDED DECEMBER 31, 1997
Pursuant to Section 102(d) of Regulation S-T
(17 C.F.R. <section>232.102(d))
EXHIBIT 23 - Consents of Experts and Counsel
Consent of Independent Accountants
-24-
EXHIBIT (23)
CONSENT OF INDEPENDENT ACCOUNTANTS
We consent to the incorporation by reference in the Registration
Statement on Form S-8 of Wausau-Mosinee Paper Corporation relating to the
registration of 25,000 shares of its common stock, no par value, in
connection with the Wausau-Mosinee Paper Corporation Hourly Savings and
Investment Plan (the "Plan") of our report dated June 19, 1998 appearing
in Plan's annual report on Form 11-K for the year ended December 31, 1997.
WIPFLI ULLRICH BERTELSON LLP
WIPFLI ULLRICH BERTELSON LLP
June 29, 1998
Wausau, Wisconsin
