Whirlpool 2001 Annual Report Download - page 57

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The medical cost trend significantly affects the reported postretirement benefit cost and benefit obligations. A one-percentage-point
change in the assumed health care cost trend rate would have the following effects:
One One
Percentage Percentage
Point Point
(millions of dollars) Increase Decrease
Effect on total service cost and interest cost components $ 4 $ (4)
Effect on postretirement benefit obligation 37 (37)
The U.S. pension plans provide that in the event of a plan termination within five years following a change in control of the company,
any assets held by the plans in excess of the amounts needed to fund accrued benefits would be used to provide additional benefits
to plan participants. A change in control generally means either a change in the majority of the incumbent board of directors or
an acquisition of 25% or more of the voting power of the company’s outstanding stock, without the approval of a majority of the
incumbent board.
The company maintains a 401(k) defined contribution plan covering substantially all U.S. employees. Company matching contributions
for domestic hourly and certain other employees under the plan, based on the company’s annual operating results and the level of
individual participant’s contributions, amounted to $12 million, $12 million and $9 million in 2001, 2000 and 1999.
14 CONTINGENCIES
The company is involved in various legal actions arising in the normal course of business. Management, after taking into consideration
legal counsel’s evaluation of such actions, is of the opinion that the outcome of these matters will not have a material adverse effect
on the company’s financial position.
The company is a party to certain financial guarantees and standby letters of credit with risk not reflected on the balance sheet.
The only significant arrangement in place at year-end is in its Brazilian subsidiary. As a standard business practice the subsidiary
guarantees customer lines of credit at commercial banks following its normal credit policies. As of December 31, 2001 and 2000,
these amounts totaled $124 million and $106 million, respectively. The company currently believes the risk of loss to be minimal.
At December 31, 2001, the company had noncancelable operating lease commitments totaling $217 million. The annual future
minimum lease payments are detailed in the table below.
(millions of dollars) Amounts
2002 $ 57
2003 45
2004 32
2005 28
2006 23
Thereafter 32
Total noncancelable operating lease commitments $ 217
The company’s rent expense was $98 million, $93 million and $87 million for the years 2001, 2000 and 1999, respectively.
Whirlpool Corporation 2001 Annual Report 55