<PAGE>
CONFORMED COPY
--------------
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 (No Fee Required)
For the plan year ended December 31, 1997
OR
[_] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 (No Fee Required)
Commission file number I-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 28 pages
The Exhibit Index appears on page 27
1
<PAGE>
Reference is hereby made to the Financial Statements attached hereto which begin
on page F-1.
2
<PAGE>
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
Date: June 25, 1998
By: /s/ Kenneth W. Kaminski
----------------------------------
Name: Kenneth W. Kaminski
Title: Trustee and Chairman of the
Individual Trustees
3
<PAGE>
ANNUAL REPORT ON FORM 11-K
--------------------------
FINANCIAL STATEMENTS
--------------------
PLAN YEAR ENDED DECEMBER 31, 1997
WHIRLPOOL 401(k) PLAN
WHIRLPOOL CORPORATION
BENTON HARBOR, MICHIGAN
4
F-1
<PAGE>
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, 1997 and 1996 F-4
Statements of Changes in Assets Available
for Benefits -- Two-Years Ended
December 31, 1997 F-5
Notes to Financial Statements F-6
Lines 27a -- Schedule of Assets Held for
Investment Purposes F-21
Lines 27d -- Schedule of Reportable
Transactions F-23
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.
5
F-2
<PAGE>
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, 1997 and 1996, 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, 1997 and 1996, 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, 1997, 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 18, 1998
6
F-3
<PAGE>
Whirlpool 401(k) Plan
Statements of Assets Available for Benefits
<TABLE>
<CAPTION>
December 31
1997 1996
----------------------------
<S> <C> <C>
Contributions receivable $ 13,449,333 $ 13,747,271
Interest and dividends receivable 206,929 160,165
Investments:
At fair value:
Mutual funds 363,440,595 281,588,580
Common trust funds 9,456,615 41,793,526
Common stock of Whirlpool Corporation 57,871,662 55,930,639
At contract value:
Guaranteed investment contracts 82,316,595 68,938,488
At cost:
Participant loans 24,039,994 19,838,946
----------------------------
537,125,461 468,090,179
----------------------------
Assets available for benefits $550,781,723 $481,997,615
============================
</TABLE>
See accompanying notes.
7
F-4
<PAGE>
Whirlpool 401(k) Plan
Statements of Changes in Assets Available for Benefits
<TABLE>
<CAPTION>
Year ended December 31
1997 1996
----------------------------
<S> <C> <C>
Additions
Dividends on Whirlpool Corporation common
stock $ 1,592,075 $ 1,698,883
Other dividends 25,869,730 18,191,366
Interest 7,117,702 6,348,961
----------------------------
34,579,507 26,239,210
Net realized and unrealized appreciation
(depreciation) in fair value of
investments:
Whirlpool Corporation common stock 12,092,758 (7,832,687)
Investments other than Whirlpool
Corporation common stock 37,648,389 12,029,779
----------------------------
49,741,147 4,197,092
Employer contributions 7,155,734 7,358,765
Employee contributions 54,828,328 53,907,401
----------------------------
61,984,062 61,266,166
----------------------------
Total additions 146,304,716 91,702,468
Deductions
Participant withdrawals 77,445,369 43,351,317
Administrative expenses 75,239 103,328
----------------------------
Total deductions 77,520,608 43,454,645
----------------------------
Net increase 68,784,108 48,247,823
Assets available for benefits at beginning of year 481,997,615 433,749,792
----------------------------
Assets available for benefits at end of year $550,781,723 $481,997,615
============================
</TABLE>
See accompanying notes.
8
F-5
<PAGE>
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 or
Whirlpool). The following description of the Plan provides only general
information. Participants should refer to the Whirlpool Savings 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. 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 that consist of five
levels of performance for the Employer. 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, as follows:
(i) no matching contribution if Employer performance compared to goals is below
level 1 performance; (ii) a $.25 per dollar match for level 1 performance;
(iii) a $.40 per dollar match for level 2 performance; (iv) a $.50 per dollar
match for level 3 performance; (v) a $.60 per dollar match for level 4
performance; and (vi) a $.75 per dollar match for level 5 performance. Employer
matching contributions and tax-deferred contributions are 100% vested at all
times. Exempt employees are not eligible for Employer matching contributions.
Furthermore, 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.
9
F-6
<PAGE>
Whirlpool 401(k) Plan
Notes to Financial Statements (continued)
1. Description of Plan (continued)
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.
10
F-7
<PAGE>
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.
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, as well as investments
previously negotiated by Whirlpool Corporation.
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.
11
F-8
<PAGE>
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 Assets 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.
Prior to June 30, 1996, participants could direct their aggregate deposits in
the following funds in addition to the Whirlpool Stock Fund, the EuroPacific
Growth Fund, and the Heartland Value Fund:
Index Fund
The objective of the Index Fund was to closely match the performance of the
Standard and Poor's 500 Index. This fund was 100% invested in the Woodward
Equity Index Fund. Because the fund was a broadly diversified fund, it
could have invested in securities of Whirlpool or its subsidiaries.
Equity Growth Fund
The objective of the Equity Growth Fund was to achieve long-term capital
appreciation from common stocks. This fund was 100% invested in the IDS
New Dimensions Fund, Inc. Because the fund was a broadly diversified fund,
it could have invested in securities of Whirlpool or its subsidiaries.
Income Fund
The objective of the Income Fund was to earn a consistent return with
stability of principal. The fund was invested in guaranteed investment
contracts and a common trust fund. The underlying securities of the
common trust fund included U.S. government bonds, Treasury notes, and
corporate bonds.
12
F-9
<PAGE>
Whirlpool 401(k) Plan
Notes to Financial Statements (continued)
1. Description of Plan (continued)
Balanced Fund
The objective of the Balanced Fund was to allow the investor to benefit
from periods of strength in both the stock and bond markets while helping
to reduce the risk of investing in a single market. It allowed the
participant to utilize the expertise of a professional to make the critical
asset mix decision.
This fund was 100% invested in IDS Investment Series, Inc. Because the
fund was a broadly diversified fund, it could have invested in securities
of Whirlpool or its subsidiaries.
Money Market Fund
The objective of the Money Market Fund was to earn a good return for
investments concurrent with preservation of capital and liquidity. The
Money Market Fund invested in obligations issued or guaranteed by the U.S.
government or its agencies, high quality certificates of deposit, time
deposits, bankers' acceptances, variable rate master notes, commercial
paper, and repurchase agreements.
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.
13
F-10
<PAGE>
Whirlpool 401(k) Plan
Notes to Financial Statements (continued)
1. Description of Plan (continued)
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.
2. Significant Accounting Policies
Investments Held by the Trust
All the investments of the Plan are held by the Trust. For the period January
1, 1996 to June 30, 1996, NBD Bank was the custodian of the Trust's assets.
Effective July 1, 1996, custodianship was transferred to Putnam Investment
Company. 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
14
F-11
<PAGE>
Whirlpool 401(k) Plan
Notes to Financial Statements (continued)
2. Significant Accounting Policies (continued)
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.
Plan 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:
<TABLE>
<CAPTION>
December 31
1997 1996
--------------------------
<S> <C> <C>
Investments, at fair value:
Mutual funds $363,440,595 $281,588,580
Common trust funds 9,456,615 41,793,526
Common stock of Whirlpool:
(1,052,212 shares at December 31, 1997;
1,199,586 shares at December 31, 1996) 57,871,662 55,930,639
Investments, at contract value:
Guaranteed investment contracts 82,316,595 68,938,488
Investment, at cost:
Participant loans 24,039,994 19,838,946
==========================
Total investments $537,125,461 $468,090,179
==========================
</TABLE>
15
F-12
<PAGE>
Whirlpool 401(k) Plan
Notes to Financial Statements (continued)
3. Investments (continued)
A summary of the guaranteed investment contracts held at December 31, 1997, is
as follows:
<TABLE>
<CAPTION>
Credited
Interest Average Fair
Rate Yield Value
----------------------------------------------
<S> <C> <C> <C>
Continental Assurance Company, #GP-24029 5.15% 5.08% $ 5,211,409
John Hancock Mutual Life Insurance Company,
#8722-GAC 6.04 7.76 2,650,453
Life Insurance Company of Virginia, #GS-2949 6.40 6.26 5,000,850
Life Insurance Company of Virginia, #GS-3056 5.81 5.49 6,109,869
New York Life Insurance Company, #GA30745 5.40 5.14 6,102,887
New York Life Insurance Company, #GA30679 5.16 5.09 5,211,818
Peoples Security Life Insurance Company,
#BDA00720FR 5.07 4.99 5,208,139
The Principal Financial Group, #GA430429-01 6.26 5.62 504,680
Security Life of Denver, #FA-0627 6.25 6.74 2,003,325
TransAmerica Occidental Life Insurance Company,
#GA51469 5.00 4.62 5,545,667
United of Omaha Life Insurance Company,
#SDGA11498 6.23 5.98 2,507,254
United of Omaha Life Insurance Company,
#SDGA111566 6.23 5.98 2,507,254
Morgan Guaranty Trust Company, #WHIR9705A 5.62 5.54 33,752,990
---------------
$82,316,595
===============
</TABLE>
The credited interest rates for the United of Omaha Life Insurance Company
guaranteed investment contracts are adjusted monthly, and the credited interest
rate for the Morgan Guaranty Trust Company guaranteed investment contract is
adjusted quarterly. All remaining guaranteed insurance contracts have credited
interest rates which are fixed over the lives of the contracts.
A guaranteed investment contract with Security Life of Denver Insurance Company
matured in September 1997. The credited interest rate was 5.06%. The contract
had average yields of 5.49% and 5.90% in 1997 and 1996, respectively.
The guaranteed investment contract with Morgan Guaranty Trust Company has
underlying investments with a fair value of $33,313,888. The fair value of the
wrapper contract is $439,102 at December 31, 1997.
16
F-13
<PAGE>
Whirlpool 401(k) Plan
Notes to Financial Statements (continued)
3. Investments (continued)
The fair value of individual investments that represent 5% or more of the Plan's
assets is as follows:
<TABLE>
<CAPTION>
December 31
1997 1996
---------------------------
<S> <C> <C>
Heartland Value Fund $ 49,910,463 $ 28,148,402
Putnam Asset Allocation: Balanced Portfolio 47,506,461 38,313,040
Putnam New Opportunities Fund 30,452,757 -
Putnam Voyager Fund 177,906,240 166,479,169
Whirlpool common stock 57,871,662 55,930,639
Morgan Guaranty Trust Company guaranteed
investment contract 33,752,990 -
Security Life of Denver Insurance Company
guaranteed investment contract - 63,914,848
Boston Safe Deposit & Trust Company Short Term
Investment Fund - 41,793,526
</TABLE>
17
F-14
<PAGE>
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, 1997, follows:
<TABLE>
<CAPTION>
Putnam
Whirlpool New EuroPacific Heartland Putnam Putnam
Stock Opportunities Growth Value Voyager Income
Fund Fund Fund Fund Fund Fund
--------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
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
=================================================================================
</TABLE>
<TABLE>
<CAPTION>
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
----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
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
============================================================================
</TABLE>
<TABLE>
<CAPTION>
Contributions
Pending Participant
Allocation Loans Total
--------------------------------------------
<S> <C> <C> <C>
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 24,039,994
--------------------------------------------
Total investments - 24,039,994 537,125,461
--------------------------------------------
Assets available for benefits $13,449,333 $24,039,994 $550,781,723
============================================
</TABLE>
<PAGE>
Detail of the allocation of Plan assets as of December 31, 1996, follows:
<TABLE>
<CAPTION>
Putnam
Whirlpool New EuroPacific Heartland Putnam Putnam
Stock Opportunities Growth Value Voyager Income
Fund Fund Fund Fund Fund Fund
-------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Contributions receivable $ - $ - $ - $ - $ - $ -
Interest and dividends receivable - - - - - -
Investments:
Mutual Funds - 21,133,369 13,688,148 28,148,188 166,479,169 4,758,430
Common trust fund - - - - - -
Common stock of Whirlpool Corporation 55,930,639 - - - - -
Guaranteed investment contracts - - - - - -
Participant loans - - - - - -
-------------------------------------------------------------------------------
Total investments 55,930,639 21,133,369 13,688,148 28,148,188 166,479,169 4,758,430
-------------------------------------------------------------------------------
Assets available for benefits $55,930,639 $21,133,369 $13,688,148 $28,148,188 $166,479,169 $4,758,430
===============================================================================
</TABLE>
<TABLE>
<CAPTION> Putnam Putnam Putnam
Asset Asset Asset
Stable Allocation: Allocation: Allocation: Contributions
Value Growth Balanced Conservative Pending Participant
Fund Portfolio Portfolio Portfolio Allocation Loans Total
--------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Contributions receivable $ - $ - $ - $ - $13,747,271 $ - $ 13,747,271
Interest and dividends receivable 160,165 - - - - - 160,165
Investments:
Mutual Funds - 5,029,055 4,039,181 38,313,040 - - 281,588,580
Common trust fund 41,793,526 - - - - - 41,793,526
Common stock of Whirlpool Corporation - - - - - - 55,930,639
Guaranteed investment contracts 68,938,488 - - - - - 68,938,488
Participant loans - - - - - 19,838,946 19,838,946
--------------------------------------------------------------------------------------------
Total investments 110,732,014 5,029,055 4,039,181 38,313,040 - 19,838,946 468,090,179
--------------------------------------------------------------------------------------------
Assets available for benefits $110,892,179 $5,029,055 $4,039,181 $38,313,040 $13,747,271 $19,838,946 $481,997,615
============================================================================================
</TABLE>
18
F-15
<PAGE>
Whirlpool 401(k) Plan
Notes to Financial Statements (continued)
5. Detail of Statement of Changes in Assets Available for Plan Benefits
Detail of statement of changes in assets available for plan benefits for the
year ended December 31, 1997.
<TABLE>
<CAPTION>
Putnam
Whirlpool New EuroPacific Heartland Putnam Putnam Stable
Stock Opportunities Growth Value Voyager Income Value
Fund Fumd Fumd Fumd Fumd Fumd Fumd
------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
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 $ 110,892,179
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 5,178,501
------------------------------------------------------------------------------------------------
1,592,075 678,264 1,669,470 6,469,097 10,503,254 554,731 5,178,501
Net realized and unrealized
appreciation 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 - - - - - - -
Employee contributions 4,889,528 4,222,729 2,556,960 3,935,298 15,078,165 856,928 9,151,794
------------------------------------------------------------------------------------------------
4,889,528 4,222,729 2,556,960 3,935,298 15,078,165 856,928 9,151,794
Participant withdrawals (3,801,153) (1,892,915) (3,348,637) (4,662,902) (16,663,197) (2,187,826) (34,660,377)
Loans issued (3,167,146) (879,562) (499,227) (940,981) (5,224,988) (100,912) (2,673,508)
Loan repayments 1,707,551 894,319 492,989 960,057 4,162,145 148,907 2,288,777
Administrative expenses (17,158) (3,926) (2,118) (4,053) (24,562) (572) (15,179)
Interfund transfers (11,355,432) 2,139,074 4,126,414 14,586,331 (25,142,062) 8,013,983 1,817,952
-----------------------------------------------------------------------------------------------
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 $91,980,139
================================================================================================
</TABLE>
<TABLE>
<CAPTION>
Putnam Asset Asset Asset
Vanguard S&P 500 Allocation Allocation Allocation Contributions
Windsor II Index Growth Balanced Conservative Pending Participant
Fund Fund Portfolio Portfolio Portfolio Allocation Loans
------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Assets available for benefits at
beginning of year $ - $ - $5,029,055 $38,313,040 $ 4,039,181 $13,747,271 $19,838,946
Dividends on Whirlpool
common stock - - - - - - -
Other dividends 185,797 - 957,639 4,344,227 531,337 - -
Interest - - - 2,533 281 - 1,912,301
-----------------------------------------------------------------------------------------------
185,797 - 957,639 4,346,760 531,618 - 1,912,301
Net realized and unrealized
appreciation 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 - - - - - 7,155,734 -
Employee contributions 11,774 6,886 1,387,524 4,819,574 1,569,591 6,341,577 -
------------------------------------------------------------------------------------------------
11,774 6,886 1,387,524 4,819,574 1,569,591 13,497,311 -
Participant withdrawals [3,157) (1,816) 1,299,647) (6,759,802) (1,484,236) - (679,704)
Loans issued (203) (2,445) (211,998) (1,270,629) (96,190) - 15,067,789
Loan repayments 5,782 5,179 293,410 1,051,815 88,407 - 12,099,338
Administrative expenses (9) (21) (1,144) (6,198) (299) - -
Interfund transfers 3,929,189 2,718,170 5,877,225 4,494,480 2,589,925 (13,795,249) -
------------------------------------------------------------------------------------------------
Assets available for benefits
at end of year $3,972,761 $2,739,557 $12,775,860 $47,506,461 $ 7,427,406 $ 13,449,333 $24,039,994
================================================================================================
</TABLE>
<TABLE>
<CAPTION>
Total
------------
<S> <C>
Assets available for benefits at
beginning of year $481,997,615
Dividends on Whirlpool
common stock 1,592,075
Other dividends 25,869,730
Interest 7,117,702
------------
34,579,507
Net realized and unrealized
appreciation 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
Employee contributions 54,828,328
------------
61,984,062
Participant withdrawals (77,445,369)
Loans issued -
Loan repayments -
Administrative expenses (75,239)
Interfund transfers -
------------
Assets available for benefits
at end of year $550,781,723
============
</TABLE>
19
F-16
<PAGE>
Whirlpool 401(k) Plan
Notes to Financial Statements (continued)
5. Detail of Statement of Changes in Assets Available for Plan Benefits
(continued)
Detail of statement of changes in assets available for plan benefits for the
year ended December 31, 1996.
<TABLE>
<CAPTION>
Equity
Index Growth Income
Fund Fund Fund
---------------------------------------------------------
<S> <C> <C> <C>
Assets available for benefits at beginning of year $ 57,091,495 $ 102,259,508 $ 132,807,653
Dividends on Whirlpool common stock - - -
Other dividends 715,000 1,071 881,616
Interest 29,067 10,222 1,491,387
---------------------------------------------------------
744,067 11,293 2,373,003
Net realized and unrealized appreciation in fair
value of investments:
Whirlpool common stock - - -
Investments other than Whirlpool common stock 5,155,581 12,893,183 1,313,227
---------------------------------------------------------
5,155,581 12,893,183 1,313,227
Employer contributions
Employee contributions 3,322,673 5,431,966 4,483,933
---------------------------------------------------------
3,322,673 5,431,966 4,483,933
Participant withdrawals (2,202,830) (2,973,781) (13,611,141)
Loans issued (1,185,230) (1,969,447) (1,594,223)
Loan repayments 747,237 1,258,775 1,197,481
Administrative expenses (33,760) (14,745) (14,770)
Interfund transfers 415,986 2,450,322 (6,156,702)
Transfers to (from) custodians (64,055,219) (119,347,074) (120,798,461)
---------------------------------------------------------
Assets available for benefits at end of year $ - $ - $ -
=========================================================
</TABLE>
20
F-17
<PAGE>
<TABLE>
<CAPTION>
Putnam
Money Whirlpool New EuroPacific Heartland Putnam Putnam
Balanced Market Stock Opportunities Growth Value Voyager Income
Fund Fund Fund Fund Fund Fund Fund Fund
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$31,126,659 $ 2,094,001 $66,828,253 $ - $ 5,517,039 $12,882,721 $ - $ -
- - 1,698,883 - - - - -
647,237 57,233 - 165,755 407,048 1,774,806 10,485,282 94,231
1,666 24 4,119 - 91 208 - -
- --------------------------------------------------------------------------------------------------------------------
648,903 57,257 1,703,002 165,755 407,139 1,775,014 10,485,282 94,231
- - (7,832,687) - - - - -
624,860 - - (520,234) 1,224,825 2,067,252 (10,856,941) 29,479
- --------------------------------------------------------------------------------------------------------------------
624,860 - (7,832,687) (520,234) 1,224,825 2,067,252 (10,856,941) 29,479
- - - - - - -
2,050,565 525,200 6,667,167 2,084,331 1,632,630 3,906,800 8,461,046 1,205,988
- --------------------------------------------------------------------------------------------------------------------
2,050,565 525,200 6,667,167 2,084,331 1,632,630 3,906,800 8,461,046 1,205,988
(1,443,877) (757,942) (3,593,706) (379,201) (603,692) (1,022,913) (4,259,199) (166,106)
(552,960) (43,126) (3,265,875) (234,550) (257,253) (563,599) (2,403,798) (24,651)
414,138 20,781 1,821,173 235,561 219,985 525,431 2,273,710 14,872
(4,888) (384) (21,384) 1,111 (419) (2,162) (7,755) (65)
(262,096) 928,326 (6,375,304) 19,780,596 5,547,894 8,579,644 (20,706,471) 3,604,682
(32,601,304) (2,824,113) - - - - 183,493,295 -
- --------------------------------------------------------------------------------------------------------------------
$ - $ - $55,930,639 $21,133,369 $13,688,148 $28,148,188 $166,479,169 $4,758,430
====================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
Putnam Putnam Putnam
Asset Asset Asset
Stable Allocation: Allocation: Allocation: Contributions
Value Growth Conservative Balanced Pending Participant
Fund Portfolio Portfolio Portfolio Allocation Loans Total
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ - $ - $ - $ - $ 7,830,382 $ 15,312,081 $433,749,792
- - - - - - 1,698,883
- 229,863 2,536,951 195,273 - - 18,191,366
3,240,495 - - - - 1,571,682 6,348,961
- ------------------------------------------------------------------------------------------------------------
3,240,495 229,863 2,536,951 195,273 - 1,571,682 26,239,210
- - - - - - (7,832,687)
- (28,564) 198,282 (71,171) - - 12,029,779
- ------------------------------------------------------------------------------------------------------------
(28,564) 198,282 (71,171) - - 4,197,092
- - - - 7,358,765 - 7,358,765
4,990,194 603,076 2,606,658 349,146 5,586,028 - 53,907,401
- ------------------------------------------------------------------------------------------------------------
4,900,194 603,076 2,606,658 349,146 12,944,793 - 61,266,166
(10,003,439) (148,217) (1,624,765) (59,485) - (501,023) (43,351,317)
(1,142,132) (24,965) (478,217) (16,612) - 13,756,638 -
1,084,389 32,867 431,041 14,816 - (10,292,257) -
4,702 (126) (486) (22) - (8,175) (103,328)
(10,813,602) 4,365,121 2,042,272 3,627,236 (7,027,904) - -
123,531,572 - 32,601,304 - - - -
- ------------------------------------------------------------------------------------------------------------
$110,892,179 $5,029,055 $38,313,040 $4,039,181 $13,747,271 $ 19,838,946 $481,997,615
============================================================================================================
</TABLE>
21
F-18
<PAGE>
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 Internal Revenue Code (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.
22
F-19
<PAGE>
Supplemental Schedules
F-20 23
<PAGE>
Whirlpool 401(k) Plan
Line 27a -- Schedule of Assets Held for Investment Purposes
December 31, 1997
<TABLE>
<CAPTION>
Number of Contract/
Shares Current
Description of Investment or Units Cost Value
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Mutual funds:
EuroPacific Growth Fund* 713,524 units $ 18,343,766 $ 18,565,883
Heartland Value Fund* 1,473,589 units 48,527,745 49,910,463
Putnam* Asset Allocation: Growth Portfolio 1,031,143 units 12,554,842 12,775,860
Putnam* Asset Allocation: Balanced Portfolio 4,264,494 units 45,954,531 47,506,461
Putnam* Asset Allocation: Conservative Portfolio 744,976 units 7,493,482 7,427,406
Putnam* Income Fund 1,711,125 units 12,066,075 12,183,207
Putnam* New Opportunities Fund 620,219 units 27,175,469 30,452,757
Putnam* Voyager Fund 9,222,719 units 161,424,513 177,906,240
Putnam* S&P 500 Index Fund 121,380 units 2,727,928 2,739,557
Vanguard Windsor II Fund* 138,811 units 4,108,309 3,972,761
---------------------------
340,376,660 363,440,595
Boston Safe Deposit & Trust Company
Short-Term Investment Fund 9,456,615 units 9,456,615 9,456,615
Whirlpool Corporation* common stock 1,052,212 shares 51,675,308 57,871,662
Insurance contracts:
Continental Assurance Company* guaranteed investment
contract, #GP-24029, 5.15% 5,211,409 5,211,409
John Hancock Mutual Life Insurance Company* guaranteed
insurance contract, #8722-GAC, 6.04% 2,650,453 2,650,453
Life Insurance Company of Virginia* guaranteed
investment contract, #GS-2949, 6.40% 5,000,850 5,000,850
Life Insurance Company of Virginia* guaranteed
investment contract, #GS-3056, 5.81% 6,109,869 6,109,869
</TABLE>
24
F-21
<PAGE>
Whirlpool 401(k) Plan
Line 27a -- Schedule of Assets Held for Investment Purposes (continued)
December 31, 1997
<TABLE>
<CAPTION>
Number of Contract/
Shares Current
Description of Investment or Units Cost Value
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Insurance contracts (continued):
New York Life Insurance Company* guaranteed investment
contract, #GA30745, 5.40% $ 6,102,887 $ 6,102,887
New York Life Insurance Company* guaranteed investment
contract, #GA30679, 5.16% 5,211,818 5,211,818
Peoples Security Life Insurance Company* guaranteed
investment contract, #BDA00720FR, 5.07% 5,208,139 5,208,139
The Principal Financial Group* guaranteed investment
contract, #GA430429-01, 6.26% 504,680 504,680
Security Life of Denver Insurance Company* guaranteed
investment contract, #FA-0627, 6.25% 2,003,325 2,003,325
TransAmerica Occidental Life Insurance Company*
guaranteed investment contract, #GA51469, 5.00% 5,545,667 5,545,667
United of Omaha Life Insurance Company* guaranteed
investment contract, #SDGA11498, 6.23% 2,507,254 2,507,254
United of Omaha Life Insurance Company* guaranteed
investment contract, #SDGA111566, 6.23% 2,507,254 2,507,254
Morgan Guaranty Trust Company* guaranteed investment
contract, #WHIR9705A, 5.62% 33,752,990 33,752,990
----------------------------
82,316,595 82,316,595
Participant loans - 24,039,994
----------------------------
Total investments $483,825,178 $537,125,461
============================
</TABLE>
*Party in interest.
25
F-22
<PAGE>
Whirlpool 401(k) Plan
Line 27d -- Schedule of Reportable Transactions
Year ended December 31, 1997
<TABLE>
<CAPTION>
Current
Value
of Asset on
Identity of Purchase Selling Cost of Transaction Net Gain
Party Involved Description of Assets Price Price Asset Date (Loss)
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Category (iii) -- Series of transactions in excess of 5% of plan assets
- -----------------------------------------------------------------------
Putnam Investment Company*
Asset Allocation: Balanced
Portfolio $26,402,931 $ - $ - $26,403,123 $ -
- 19,726,921 18,722,204 19,726,921 1,004,717
Income Fund 18,932,511 - - 18,932,438 -
- 11,647,273 11,617,999 11,647,273 29,274
New Opportunities Fund 24,994,856 - - 24,971,064 -
- 19,835,906 19,481,363 19,835,906 354,543
Voyager Fund 47,128,513 - - 47,128,821 -
- 64,439,762 62,571,386 64,439,762 1,868,376
American Funds* Heartland Value Fund 45,047,808 - - 45,046,111 -
- 24,704,961 22,788,752 24,704,961 1,916,209
EuroPacific Growth Fund 20,240,399 - - 20,240,127 -
- 15,244,669 14,491,732 15,244,669 752,937
Whirlpool Corporation* Common stock 28,532,250 - - 28,531,857 -
- 38,683,899 34,251,458 38,683,899 4,432,441
</TABLE>
Note: There were no category (i), (ii), or (iv) reportable transactions for the
year ended December 31, 1997.
*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.
26
F-23
<PAGE>
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
27
<PAGE>
Exhibit 23
CONSENT OF INDEPENDENT AUDITORS
We consent to the incorporation by reference in the Registration Statements
(Form F-8 Nos. 33-26680 and 33-53196) pertaining to the Whirlpool 401(k) Plan
of Whirlpool Corporation of our report dated May 18, 1998, with respect to the
financial statements and schedules of the Whirlpool 401(k) Plan included in this
Annual Report (Form 11-K) for the year ended December 31, 1997.
Chicago, Illinois
June 25, 1998
28
