Whirlpool 2001 Annual Report Download - page 61

THE STOCKHOLDERS AND BOARD OF DIRECTORS
WHIRLPOOL CORPORATION
BENTON HARBOR, MICHIGAN
We have audited the accompanying consolidated balance sheets of Whirlpool Corporation as of December 31, 2001 and 2000, and
the related consolidated statements of earnings, stockholders’ equity and cash flows for each of the three years in the period ended
December 31, 2001. These financial statements are the responsibility of the Company’s management. Our responsibility is to
express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted in the United States. 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 our audits provide a reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial
position of Whirlpool Corporation as of December 31, 2001 and 2000, and the consolidated results of its operations and its cash flows
for each of the three years in the period ended December 31, 2001, in conformity with accounting principles generally accepted in the
United States.
As discussed in Note 1 to the consolidated financial statements, in 2001 the Company changed its method of accounting for derivative
instruments and hedging activities.
CHICAGO, ILLINOIS
FEBRUARY 4, 2002
The management of Whirlpool Corporation has prepared the accompanying financial statements. The financial statements have
been audited by Ernst & Young LLP, independent auditors, whose report, based upon their audits, expresses the opinion that these
financial statements present fairly the consolidated financial position, results of operations and cash flows of Whirlpool and its
subsidiaries in accordance with accounting principles generally accepted in the United States. Their audits are conducted in conformity
with auditing standards generally accepted in the United States.
The financial statements were prepared from the company’s accounting records, books and accounts which, in reasonable detail,
accurately and fairly reflect all material transactions. The company maintains a system of internal controls designed to provide
reasonable assurance that the company’s accounting records, books and accounts are accurate and that transactions are properly
recorded in the company’s books and records, and the company’s assets are maintained and accounted for, in accordance with
management’s authorizations. The company’s accounting records, policies and internal controls are regularly reviewed by an internal
audit staff.
The audit committee of the board of directors of the company, which is composed of five directors who are not employed by the
company, considers and makes recommendations to the board of directors as to accounting and auditing matters concerning the
company, including recommending for appointment by the board the firm of independent auditors engaged on an annual basis to
audit the financial statements of Whirlpool and its majority-owned subsidiaries. The audit committee meets with the independent
auditors at least three times each year to review the scope of the audit, the results of the audit and such recommendations as may be
made by said auditors with respect to the company’s accounting methods and system of internal controls.
MARK E. BROWN
EXECUTIVE VICE PRESIDENT AND
CHIEF FINANCIAL OFFICER
Whirlpool Corporation 2001 Annual Report 59
Report of Ernst & Young LLP — Independent Auditors
Report by Management on the Consolidated Financial Statements