☒ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 38-1490038 | ||||||||||
(State of Incorporation) | (I.R.S. Employer Identification No.) | ||||||||||
2000 North M-63 | |||||||||||
Benton Harbor, | Michigan | 49022-2692 | |||||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading symbol(s) | Name of each exchange on which registered | ||||||||||||||||||
Common stock, par value $1 per share | WHR | Chicago Stock Exchange | and | New York Stock Exchange | ||||||||||||||||
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. | Yes | ☒ | No | ☐ | ||||||||||
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act. | Yes | ☐ | No | ☒ | ||||||||||
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. | Yes | ☒ | No | ☐ | ||||||||||
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). | Yes | ☒ | No | ☐ |
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act. | |||||||||||
(Check one) | |||||||||||
Large accelerated filer | ☒ | Accelerated filer | ☐ | ||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | ||||||||
Emerging growth company | ☐ |
Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. | Yes | ☒ | No | ☐ | ||||||||||
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). | Yes | ☐ | No | ☒ |
Document | Part of Form 10-K into which incorporated | ||||
The registrant's proxy statement for the | Part III |
PAGE | |||||||||
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Item 16. | |||||||||
PART I |
ITEM 1. | BUSINESS |
Our Company Improving life at home has been at the heart of our business for 111 years |
Profitable Growth | Margin Expansion | Cash Conversion | ||||||||||||||||||||||||||||||
Innovation-fueled growth at or above the market | Drive cost and price/mix to grow profitability | Asset efficiency converts profitable growth to cash | ||||||||||||||||||||||||||||||
5-6% | 11-12% | 7-8% | ||||||||||||||||||||||||||||||
Annual Organic Net Sales Growth | Ongoing EBIT Margin | FCF(1) as % of Net Sales | ||||||||||||||||||||||||||||||
North America | • In the United States, we market and distribute major home appliances and •We also market Yummly, a recipe app in the United States, through the Yummly brand website and phone application stores. • In Canada, we market and distribute major home appliances primarily under the• We sell some products to other manufacturers, distributors, and retailers for resale in North America under those manufacturers' and retailers' respective brand names. | ||||
Europe, Middle East and Africa (EMEA) | • In Europe, we market and distribute our major • We market and distribute products under the Whirlpool, Bauknecht, Maytag, Indesit, Amana and Ignis brand names to distributors and dealers in Africa and the Middle | ||||
Latin America | • In Latin America, we produce, market and distribute our major home appliances, • We• In | ||||
Asia | • In Asia, we • We market and distribute our products in Asia primarily under the Whirlpool, Maytag, KitchenAid, Ariston, Indesit, Bauknecht•In May 2021, we sold our •In 2022, we opened a new manufacturing line in India which will produce front load washing machines primarily for India. | ||||
Name | Office | First Became an Executive Officer | Age | Name | Office | First Became an Executive Officer | Age | |||||||||||||||||||
Marc R. Bitzer | Chairman of the Board, President and Chief Executive Officer | 2006 | 55 | Marc R. Bitzer | Chairman of the Board and Chief Executive Officer | 2006 | 58 | |||||||||||||||||||
James W. Peters | Executive Vice President and Chief Financial Officer | 2016 | 50 | James W. Peters | Executive Vice President and Chief Financial Officer and President, Whirlpool Asia | 2016 | 53 | |||||||||||||||||||
João C. Brega | Executive Vice President and President, Whirlpool Latin America | 2012 | 56 | João C. Brega | Executive Vice President and President, Whirlpool Latin America | 2012 | 59 | |||||||||||||||||||
Joseph T. Liotine | Executive Vice President and President, Whirlpool North America | 2014 | 47 | |||||||||||||||||||||||
Gilles Morel | Executive Vice President and President, Whirlpool Europe, Middle East & Africa | 2019 | 54 | Gilles Morel | Executive Vice President and President, Whirlpool Europe, Middle East & Africa | 2019 | 57 | |||||||||||||||||||
Shengpo (Samuel) Wu | Executive Vice President and President, Whirlpool Asia | 2019 | 53 |
ITEM 1A. | RISK FACTORS |
ITEM 1B. | UNRESOLVED STAFF COMMENTS |
ITEM 2. | PROPERTIES |
Operating Segment | North America | Europe, Middle East and Africa | Latin America | Asia | ||||||||||
Manufacturing Locations | 12 | 9 | 8 | 6 |
Operating Segment | North America | Europe, Middle East and Africa | Latin America | Asia |
Manufacturing Locations | 10 | 12 | 9 | 5 |
ITEM 3. | LEGAL PROCEEDINGS |
MINE SAFETY DISCLOSURES |
PART II |
ITEM 5. | MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES |
Period (Millions of dollars, except number and price per share) | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans | |||||||||||||
October 1, 2022 through October 31, 2022 | — | $ | — | — | $ | 2,587 | |||||||||||
November 1, 2022 through November 30, 2022 | — | — | — | 2,587 | |||||||||||||
December 1, 2022 through December 31, 2022 | — | — | — | $ | 2,587 | ||||||||||||
Total | — | $ | — |
ITEM 6. | [RESERVED] |
Period (Millions of dollars, except number and price per share) | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans | |||||
October 1, 2019 through October 31, 2019 | 35,000 | $ | 158.53 | 35,000 | $ | 694 | |||
November 1, 2019 through November 30, 2019 | 184,000 | 149.61 | 184,000 | 667 | |||||
December 1, 2019 through December 31, 2019 | 105,700 | 145.38 | 105,700 | $ | 652 | ||||
Total | 324,700 | $ | 149.19 | 324,700 |
(Millions of dollars, except share and employee data) | 2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||
CONSOLIDATED OPERATIONS | ||||||||||||||||||||
Net sales | $ | 20,419 | $ | 21,037 | $ | 21,253 | $ | 20,718 | $ | 20,891 | ||||||||||
Restructuring costs | 188 | 247 | 275 | 173 | 201 | |||||||||||||||
Impairment of goodwill and other intangibles | — | 747 | — | — | — | |||||||||||||||
(Gain) loss on sale and disposal of businesses | (437 | ) | — | — | — | — | ||||||||||||||
Depreciation and amortization | 587 | 645 | 654 | 655 | 668 | |||||||||||||||
Operating profit | 1,571 | 279 | 1,136 | 1,368 | 1,242 | |||||||||||||||
Earnings (loss) before income taxes | 1,552 | (21 | ) | 887 | 1,114 | 1,031 | ||||||||||||||
Net earnings (loss) | 1,198 | (159 | ) | 337 | 928 | 822 | ||||||||||||||
Net earnings (loss) available to Whirlpool | 1,184 | (183 | ) | 350 | 888 | 783 | ||||||||||||||
Capital expenditures | 532 | 590 | 684 | 660 | 689 | |||||||||||||||
Dividends paid | 305 | 306 | 312 | 294 | 269 | |||||||||||||||
Repurchase of common stock | 148 | 1,153 | 750 | 525 | 250 | |||||||||||||||
CONSOLIDATED FINANCIAL POSITION | ||||||||||||||||||||
Current assets | $ | 7,398 | $ | 7,898 | $ | 7,930 | $ | 7,339 | $ | 7,325 | ||||||||||
Current liabilities | 8,369 | 9,678 | 8,505 | 7,662 | 7,744 | |||||||||||||||
Accounts receivable, inventories and accounts payable, net | 89 | 256 | 856 | 918 | 746 | |||||||||||||||
Property, net | 3,301 | 3,414 | 4,033 | 3,810 | 3,774 | |||||||||||||||
Total assets(1) | 18,881 | 18,347 | 20,038 | 19,153 | 19,010 | |||||||||||||||
Long-term debt | 4,140 | 4,046 | 4,392 | 3,876 | 3,470 | |||||||||||||||
Total debt(2) | 4,993 | 6,027 | 5,218 | 4,470 | 3,998 | |||||||||||||||
Whirlpool stockholders' equity | 3,195 | 2,291 | 4,198 | 4,773 | 4,743 | |||||||||||||||
PER SHARE DATA | ||||||||||||||||||||
Basic net earnings (loss) available to Whirlpool | $ | 18.60 | $ | (2.72 | ) | $ | 4.78 | $ | 11.67 | $ | 9.95 | |||||||||
Diluted net earnings (loss) available to Whirlpool | 18.45 | (2.72 | ) | 4.70 | 11.50 | 9.83 | ||||||||||||||
Dividends | 4.75 | 4.55 | 4.30 | 3.90 | 3.45 | |||||||||||||||
Book value(3) | 49.77 | 34.08 | 56.42 | 61.82 | 59.54 | |||||||||||||||
Closing Stock Price—NYSE | 147.53 | 106.87 | 168.64 | 181.77 | 146.87 | |||||||||||||||
KEY RATIOS | ||||||||||||||||||||
Operating profit margin | 7.7 | % | 1.3 | % | 5.3 | % | 6.6 | % | 5.9 | % | ||||||||||
Pre-tax margin(4) | 7.6 | % | (0.1 | )% | 4.2 | % | 5.4 | % | 4.9 | % | ||||||||||
Net margin(5) | 5.8 | % | (0.9 | )% | 1.6 | % | 4.3 | % | 3.7 | % | ||||||||||
Return on average Whirlpool stockholders' equity(6) | 43.2 | % | (5.6 | )% | 7.8 | % | 18.7 | % | 16.3 | % | ||||||||||
Return on average total assets(7) | 6.4 | % | (1.0 | )% | 1.8 | % | 4.7 | % | 4.0 | % | ||||||||||
Current assets to current liabilities | 0.9 | 0.8 | 0.9 | 1.0 | 0.9 | |||||||||||||||
Total debt as a percent of invested capital(8) | 54.8 | % | 65.3 | % | 50.4 | % | 43.8 | % | 41.2 | % | ||||||||||
Price earnings ratio(9) | 8.0 | (39.3 | ) | 35.9 | 15.8 | 14.9 | ||||||||||||||
OTHER DATA | ||||||||||||||||||||
Common shares outstanding (in thousands): | ||||||||||||||||||||
Average number - on a diluted basis | 64,199 | 67,225 | 74,400 | 77,211 | 79,667 | |||||||||||||||
Year-end common shares outstanding | 62,894 | 63,528 | 70,646 | 74,465 | 77,221 | |||||||||||||||
Year-end number of stockholders | 8,804 | 9,248 | 9,960 | 10,528 | 10,663 | |||||||||||||||
Year-end number of employees | 77,000 | 92,000 | 92,000 | 93,000 | 97,000 | |||||||||||||||
Five-year annualized total return to stockholders(10) | (2.7 | )% | (5.1 | )% | 13.0 | % | 33.6 | % | 13.0 | % |
ITEM 7. | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
December 31, | December 31, | |||||||||||||||||||||||||||||||||||||||||||||||
Consolidated - In Millions (except per share data) | 2019 | Better/(Worse) | 2018 | Better/(Worse) | 2017 | Consolidated - In Millions (except per share data) | 2022 | Better/(Worse) % | 2021 | Better/(Worse) % | 2020 | |||||||||||||||||||||||||||||||||||||
Units (in thousands) | 67,405 | (1.5)% | 68,440 | (4.6)% | 71,704 | |||||||||||||||||||||||||||||||||||||||||||
Net sales | $ | 20,419 | (2.9) | $ | 21,037 | (1.0) | $ | 21,253 | Net sales | $ | 19,724 | (10.3)% | $ | 21,985 | 13.0% | $ | 19,456 | |||||||||||||||||||||||||||||||
Gross margin | 3,533 | (0.1) | 3,537 | (1.8) | 3,602 | Gross margin | 3,073 | (30.3) | 4,409 | 14.8 | 3,842 | |||||||||||||||||||||||||||||||||||||
Selling, general and administrative | 2,142 | 2.1 | 2,189 | (3.6) | 2,112 | Selling, general and administrative | 1,820 | 12.5 | 2,081 | (10.9) | 1,877 | |||||||||||||||||||||||||||||||||||||
Restructuring costs | 188 | 23.9 | 247 | 10.0 | 275 | Restructuring costs | 21 | 44.7 | 38 | 86.8 | 288 | |||||||||||||||||||||||||||||||||||||
Impairment of goodwill and other intangibles | — | nm | 747 | nm | — | Impairment of goodwill and other intangibles | 384 | nm | — | nm | 7 | |||||||||||||||||||||||||||||||||||||
(Gain) loss on sale and disposal of businesses | (437 | ) | nm | — | nm | — | (Gain) loss on sale and disposal of businesses | 1,869 | nm | (105) | nm | (7) | ||||||||||||||||||||||||||||||||||||
Interest and sundry (income) expense | (168 | ) | nm | 108 | (24.3) | 87 | Interest and sundry (income) expense | (19) | (88.1) | (159) | nm | (21) | ||||||||||||||||||||||||||||||||||||
Interest expense | 187 | 2.6 | 192 | (18.2) | 162 | Interest expense | 190 | (8.6) | 175 | 7.4 | 189 | |||||||||||||||||||||||||||||||||||||
Income tax expense | 354 | nm | 138 | 74.7 | 550 | Income tax expense | 265 | 48.8 | 518 | (35.6) | 382 | |||||||||||||||||||||||||||||||||||||
Net earnings (loss) available to Whirlpool | 1,184 | nm | (183 | ) | nm | 350 | ||||||||||||||||||||||||||||||||||||||||||
Diluted net earnings (loss) available to Whirlpool per share | $ | 18.45 | nm | $ | (2.72 | ) | nm | $ | 4.70 | |||||||||||||||||||||||||||||||||||||||
Net earnings available to Whirlpool | Net earnings available to Whirlpool | (1,519) | nm | 1,783 | 65.9 | 1,075 | ||||||||||||||||||||||||||||||||||||||||||
Diluted net earnings available to Whirlpool per share | Diluted net earnings available to Whirlpool per share | $ | (27.18) | nm | $ | 28.36 | 67.0% | $ | 16.98 |
December 31, | |||||||||||||||||||||||||||||||||||||||||||||||
Millions of dollars | 2022 | As a % of Net Sales | 2021 | As a % of Net Sales | 2020 | As a % of Net Sales | |||||||||||||||||||||||||||||||||||||||||
North America | $ | 837 | 7.3 | % | $ | 860 | 6.9 | % | $ | 733 | 6.5 | % | |||||||||||||||||||||||||||||||||||
EMEA | 366 | 9.1 | 502 | 9.9 | 472 | 10.8 | |||||||||||||||||||||||||||||||||||||||||
Latin America | 272 | 8.7 | 261 | 8.3 | 233 | 9.0 | |||||||||||||||||||||||||||||||||||||||||
Asia | 124 | 11.3 | 151 | 12.2 | 218 | 17.2 | |||||||||||||||||||||||||||||||||||||||||
Corporate/other | 221 | — | 307 | — | 221 | — | |||||||||||||||||||||||||||||||||||||||||
Consolidated | $ | 1,820 | 9.2 | % | $ | 2,081 | 9.5 | % | $ | 1,877 | 9.6 | % |
December 31, | |||||||||||||||||||||
Millions of dollars | 2019 | As a % of Net Sales | 2018 | As a % of Net Sales | 2017 | As a % of Net Sales | |||||||||||||||
North America | $ | 826 | 7.2 | % | $ | 787 | 6.9 | % | $ | 751 | 6.8 | % | |||||||||
EMEA | 497 | 11.6 | 564 | 12.4 | 557 | 11.4 | |||||||||||||||
Latin America | 306 | 9.6 | 369 | 10.2 | 356 | 9.0 | |||||||||||||||
Asia | 253 | 16.7 | 244 | 15.4 | 258 | 16.8 | |||||||||||||||
Corporate/other | 260 | — | 225 | — | 190 | — | |||||||||||||||
Consolidated | $ | 2,142 | 10.5 | % | $ | 2,189 | 10.4 | % | $ | 2,112 | 9.9 | % |
2020 | |||
Current Outlook | |||
Estimated earnings per diluted share, for the year ending December 31, 2020 | $14.80 | — | $15.80 |
Including: | |||
Restructuring Expense | $(1.56) | ||
Income Tax Impact | $0.36 | ||
Industry demand | |||
North America | (1)% | — | 1% |
EMEA | 1% | — | 2% |
Latin America | 3% | — | 4% |
Asia | (1)% | — | 1% |
2023 | |||||||||||
Current Outlook | |||||||||||
Estimated GAAP earnings per diluted share, for the year ending December 31 | $16.00 | — | $18.00 | ||||||||
Industry demand | |||||||||||
North America | (6)% | — | (4)% | ||||||||
EMEA | (6)% | — | (4)% | ||||||||
Latin America | (3)% | — | (1)% | ||||||||
Asia | 2% | — | 4% |
2020 | |||||||
Millions of dollars | Current Outlook | ||||||
Cash provided by operating activities(1) | $ | 1,350 | — | $ | 1,450 | ||
Capital expenditures and proceeds from sale of assets/businesses | (550) | ||||||
Free cash flow | $ | 800 | — | $ | 900 |
2023 | |||||||||||
Millions of dollars | Current Outlook | ||||||||||
Cash provided by (used in) operating activities(1) | ~$1,400 | ||||||||||
Capital expenditures | ~(600) | ||||||||||
Free cash flow | ~$800 |
Total Whirlpool Organic Net Sales Reconciliation: in millions | Twelve Months Ended December 31, | |||||||
2019 | 2018 | Change | ||||||
Net sales | $ | 20,419 | $ | 21,037 | (2.9 | )% | ||
Less: Embraco net sales | (635 | ) | (1,135 | ) | ||||
Add-Back: currency | 430 | — | ||||||
Organic net sales | $ | 20,214 | $ | 19,902 | 1.6 | % |
Latin America Organic Net Sales Reconciliation: in millions | Twelve Months Ended December 31, | |||||||
2019 | 2018 | Change | ||||||
Net sales | $ | 3,177 | $ | 3,618 | (12.2 | )% | ||
Less: Embraco net sales | (635 | ) | (1,135 | ) | ||||
Add-Back: currency | 171 | — | ||||||
Organic net sales | $ | 2,713 | $ | 2,483 | 9.3 | % |
Ongoing Earnings Before Interest & Taxes (EBIT) Reconciliation: in millions | Twelve Months Ended December 31, | ||||||||
2019 | 2018 | 2017 | |||||||
Net earnings (loss) available to Whirlpool (1) | $ | 1,184 | $ | (183 | ) | $ | 350 | ||
Net earnings (loss) available to noncontrolling interests | 14 | 24 | (13 | ) | |||||
Income tax expense | 354 | 138 | 550 | ||||||
Interest expense | 187 | 192 | 162 | ||||||
Earnings before interest & taxes | $ | 1,739 | $ | 171 | $ | 1,049 | |||
Restructuring expense | 188 | 247 | 275 | ||||||
Brazil indirect tax credit | (180 | ) | — | — | |||||
Product warranty and liability expense | 131 | — | — | ||||||
(Gain) loss on sale and disposal of businesses | (437 | ) | — | — | |||||
Sale leaseback, real estate and receivable adjustments | (86 | ) | — | — | |||||
Trade customer insolvency claim settlement | 59 | — | — | ||||||
Impairment of goodwill and intangibles | — | 747 | — | ||||||
France antitrust settlement | — | 103 | — | ||||||
Trade customer insolvency | — | 30 | — | ||||||
Divestiture related transition costs | — | 21 | — | ||||||
Out-of-period adjustment | — | — | 40 | ||||||
Ongoing EBIT | $ | 1,414 | $ | 1,319 | $ | 1,364 |
Ongoing Earnings Before Interest & Taxes (EBIT) Reconciliation: in millions | Twelve Months Ended December 31, | ||||||||||
2022 | 2021 | 2020 | |||||||||
Net earnings (loss) available to Whirlpool (1) | $ | (1,519) | $ | 1,783 | $ | 1,075 | |||||
Net earnings (loss) available to noncontrolling interests | 8 | 23 | (10) | ||||||||
Income tax expense | 265 | 518 | 382 | ||||||||
Interest expense | 190 | 175 | 189 | ||||||||
Earnings before interest & taxes | $ | (1,056) | $ | 2,499 | $ | 1,636 | |||||
Restructuring expense (a) | — | 38 | 288 | ||||||||
Impairment of goodwill, intangibles and other assets (b) | 396 | — | — | ||||||||
Impact of M&A transactions (c) | 1,936 | (107) | (7) | ||||||||
Substantial liquidation of subsidiary (d) | 84 | — | — | ||||||||
(Gain) loss on previously held equity interest(e) | — | (42) | — | ||||||||
Product warranty and liability (income) expense (f) | — | (9) | (30) | ||||||||
Corrective action recovery(g) | — | — | (14) | ||||||||
Sale-leaseback, real estate and receivable adjustments(h) | — | — | (113) | ||||||||
Ongoing EBIT(2) | $ | 1,360 | $ | 2,379 | $ | 1,760 |
Ongoing Earnings Per Diluted Share Reconciliation: | Twelve Months Ended December 31, | |||||||
2022 | 2021 | |||||||
Earnings per diluted share | $ | (27.18) | $ | 28.36 | ||||
Restructuring expense(a) | — | 0.61 | ||||||
Impairment of goodwill and other intangibles(b) | 7.08 | — | ||||||
Impact of M&A transactions(c) | 34.63 | (1.69) | ||||||
Substantial liquidation of subsidiary(d) | 1.51 | — | ||||||
(Gain) loss on previously held equity interest(e) | — | (0.50) | ||||||
Product warranty and liability (income) expense(f) | — | (0.14) | ||||||
Income tax impact | (1.89) | 0.41 | ||||||
Normalized tax rate adjustment(i) | 5.69 | (0.46) | ||||||
Share count adjustment(j) | (0.20) | — | ||||||
Ongoing earnings per diluted share | $ | 19.64 | $ | 26.59 |
Free Cash Flow (FCF) Reconciliation: in millions | Twelve Months Ended December 31, | ||||||||
2019 | 2018 | 2017 | |||||||
Cash provided by operating activities | $ | 1,230 | $ | 1,229 | $ | 1,264 | |||
Capital expenditures | (532 | ) | (590 | ) | (684 | ) | |||
Proceeds from sale of assets and businesses (3) | 1,174 | 160 | 61 | ||||||
Change in restricted cash (2) | 40 | 54 | 66 | ||||||
Repayment of term loan (3) | (1,000 | ) | — | — | |||||
Free cash flow | $ | 912 | $ | 853 | $ | 707 | |||
Cash provided by (used in) investing activities | $ | 636 | $ | (399 | ) | $ | (721 | ) | |
Cash provided by (used in) financing activities | $ | (1,424 | ) | $ | (518 | ) | $ | (553 | ) |
Free Cash Flow (FCF) Reconciliation: in millions | Twelve Months Ended December 31, | ||||||||||
2022 | 2021 | 2020 | |||||||||
as adjusted | as adjusted | ||||||||||
Cash provided by (used in) operating activities | $ | 1,390 | $ | 2,176 | $ | 1,500 | |||||
Capital expenditures | (570) | (525) | (410) | ||||||||
Free cash flow | $ | 820 | $ | 1,651 | $ | 1,090 | |||||
Cash provided by (used in) investing activities | $ | (3,568) | $ | (660) | $ | (237) | |||||
Cash provided by (used in) financing activities | $ | 1,206 | $ | (1,339) | $ | (253) |
Adjusted Free Cash Flow (FCF) Reconciliation: in millions | Twelve Months Ended December 31, | ||||||||||
2021 | 2020 | ||||||||||
Cash provided by (used in) operating activities | $ | 2,176 | $ | 1,500 | |||||||
Capital Expenditures | (525) | (410) | |||||||||
Proceeds from sale of assets and business | 302 | 166 | |||||||||
Change in restricted cash | 10 | (10) | |||||||||
Adjusted free cash flow | $ | 1,963 | $ | 1,246 | |||||||
Cash provided by (used in) investing activities | $ | (660) | $ | (237) | |||||||
Cash provided by (used in) financings activities | $ | (1,339) | $ | (253) |
Millions of dollars | 2019 | 2018 | 2017 | Millions of dollars | 2022 | 2021 | 2020 | |||||||||||||||||||||||||
Cash provided by (used in): | Cash provided by (used in): | |||||||||||||||||||||||||||||||
Operating activities | $ | 1,230 | $ | 1,229 | $ | 1,264 | Operating activities | $ | 1,390 | $ | 2,176 | $ | 1,500 | |||||||||||||||||||
Investing activities | 636 | (399 | ) | (721 | ) | Investing activities | (3,568) | (660) | (237) | |||||||||||||||||||||||
Financing activities | (1,424 | ) | (518 | ) | (553 | ) | Financing activities | 1,206 | (1,339) | (253) | ||||||||||||||||||||||
Effect of exchange rate changes | (28 | ) | (67 | ) | 63 | Effect of exchange rate changes | (20) | (67) | (28) | |||||||||||||||||||||||
Less: decrease in cash classified as held for sale | Less: decrease in cash classified as held for sale | (94) | — | — | ||||||||||||||||||||||||||||
Net increase in cash, cash equivalents and restricted cash | $ | 414 | $ | 245 | $ | 53 | Net increase in cash, cash equivalents and restricted cash | $ | (1,086) | $ | 110 | $ | 982 |
Payments due by period | ||||||||||||||||||||
Millions of dollars | Total | 2020 | 2021 & 2022 | 2023 & 2024 | Thereafter | |||||||||||||||
Long-term debt obligations(1) | $ | 6,172 | $ | 706 | $ | 856 | $ | 753 | $ | 3,857 | ||||||||||
Operating lease obligations(2) | 1,154 | 203 | 324 | 252 | 375 | |||||||||||||||
Purchase obligations(3) | 672 | 205 | 290 | 120 | 57 | |||||||||||||||
United States and foreign pension plans(4) | 18 | 18 | — | — | — | |||||||||||||||
Other postretirement benefits(5) | 271 | 33 | 65 | 58 | 115 | |||||||||||||||
Legal settlements(6) | 65 | 65 | — | — | — | |||||||||||||||
Total(7) | $ | 8,352 | $ | 1,230 | $ | 1,535 | $ | 1,183 | $ | 4,404 |
Estimated increase (decrease) in | |||
Millions of dollars | Percentage Change | 2020 Expense | PBO/APBO(1) for 2019 |
United States Pension Plans | |||
Discount rate | +/-50bps | $ 1/(1) | $ (161)/177 |
Expected long-term rate of return on plan assets | +/-50bps | (13)/13 | – |
United States Other Postretirement Benefit Plan | |||
Discount rate | +/-50bps | 1/(1) | (13)/14 |
Health care cost trend rate | +/-100bps | – | – |
Estimated increase (decrease) in | |||||||||||
Millions of dollars | Percentage Change | 2023 Expense | PBO/APBO(1) for 2022 | ||||||||
United States Pension Plans | |||||||||||
Discount rate | +/-50bps | 1/(1) | (89)/97 | ||||||||
Expected long-term rate of return on plan assets | +/-50bps | (12)/12 | – | ||||||||
United States Other Postretirement Benefit Plan | |||||||||||
Discount rate | +/-50bps | 0/0 | (3)/4 |
ITEM 7A. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
ITEM 8. | FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA |
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FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA | |||||
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Report of independent Registered Public Accounting Firm (PCAOB ID: 42) |
PAGE | ||
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS | ||
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2019 | 2018 | 2017 | ||||||||||
Net sales | $ | 20,419 | $ | 21,037 | $ | 21,253 | ||||||
Expenses | ||||||||||||
Cost of products sold | 16,886 | 17,500 | 17,651 | |||||||||
Gross margin | 3,533 | 3,537 | 3,602 | |||||||||
Selling, general and administrative | 2,142 | 2,189 | 2,112 | |||||||||
Intangible amortization | 69 | 75 | 79 | |||||||||
Restructuring costs | 188 | 247 | 275 | |||||||||
Impairment of goodwill and other intangibles | — | 747 | — | |||||||||
(Gain) loss on sale and disposal of businesses | (437 | ) | — | — | ||||||||
Operating profit | 1,571 | 279 | 1,136 | |||||||||
Other (income) expense | ||||||||||||
Interest and sundry (income) expense | (168 | ) | 108 | 87 | ||||||||
Interest expense | 187 | 192 | 162 | |||||||||
Earnings (loss) before income taxes | 1,552 | (21 | ) | 887 | ||||||||
Income tax expense | 354 | 138 | 550 | |||||||||
Net earnings (loss) | 1,198 | (159 | ) | 337 | ||||||||
Less: Net earnings (loss) available to noncontrolling interests | 14 | 24 | (13 | ) | ||||||||
Net earnings (loss) available to Whirlpool | $ | 1,184 | $ | (183 | ) | $ | 350 | |||||
Per share of common stock | ||||||||||||
Basic net earnings (loss) available to Whirlpool | $ | 18.60 | $ | (2.72 | ) | $ | 4.78 | |||||
Diluted net earnings (loss) available to Whirlpool | $ | 18.45 | $ | (2.72 | ) | $ | 4.70 | |||||
Weighted-average shares outstanding (in millions) | ||||||||||||
Basic | 63.7 | 67.2 | 73.3 | |||||||||
Diluted | 64.2 | 67.2 | 74.4 |
2022 | 2021 | 2020 | ||||||||||||||||||
Net sales | $ | 19,724 | $ | 21,985 | $ | 19,456 | ||||||||||||||
Expenses | ||||||||||||||||||||
Cost of products sold | 16,651 | 17,576 | 15,614 | |||||||||||||||||
Gross margin | 3,073 | 4,409 | 3,842 | |||||||||||||||||
Selling, general and administrative | 1,820 | 2,081 | 1,877 | |||||||||||||||||
Intangible amortization | 35 | 47 | 62 | |||||||||||||||||
Restructuring costs | 21 | 38 | 288 | |||||||||||||||||
Impairment of goodwill and other intangibles | 384 | — | 7 | |||||||||||||||||
(Gain) loss on sale and disposal of businesses | 1,869 | (105) | (7) | |||||||||||||||||
Operating profit (loss) | (1,056) | 2,348 | 1,615 | |||||||||||||||||
Other (income) expense | ||||||||||||||||||||
Interest and sundry (income) expense | (19) | (159) | (21) | |||||||||||||||||
Interest expense | 190 | 175 | 189 | |||||||||||||||||
Earnings (loss) before income taxes | (1,227) | 2,332 | 1,447 | |||||||||||||||||
Income tax expense (benefit) | 265 | 518 | 382 | |||||||||||||||||
Equity method investment income (loss), net of tax | (19) | (8) | — | |||||||||||||||||
Net earnings (loss) | (1,511) | 1,806 | 1,065 | |||||||||||||||||
Less: Net earnings (loss) available to noncontrolling interests | 8 | 23 | (10) | |||||||||||||||||
Net earnings (loss) available to Whirlpool | $ | (1,519) | $ | 1,783 | $ | 1,075 | ||||||||||||||
Per share of common stock | ||||||||||||||||||||
Basic net earnings available to Whirlpool | $ | (27.18) | $ | 28.73 | $ | 17.15 | ||||||||||||||
Diluted net earnings available to Whirlpool | $ | (27.18) | $ | 28.36 | $ | 16.98 | ||||||||||||||
Weighted-average shares outstanding (in millions) | ||||||||||||||||||||
Basic | 55.9 | 62.1 | 62.7 | |||||||||||||||||
Diluted | 55.9 | 62.9 | 63.3 |
2019 | 2018 | 2017 | |||||||||||
Net earnings (loss) | $ | 1,198 | $ | (159 | ) | $ | 337 | ||||||
Other comprehensive income (loss), before tax: | |||||||||||||
Foreign currency translation adjustments | 54 | (272 | ) | 32 | |||||||||
Derivative instruments: | |||||||||||||
Net gain (loss) arising during period | 71 | 77 | (84 | ) | |||||||||
Less: reclassification adjustment for gain (loss) included in net earnings (loss) | 88 | 107 | (80 | ) | |||||||||
Derivative instruments, net | (17 | ) | (30 | ) | (4 | ) | |||||||
Marketable securities: | |||||||||||||
Net gain (loss) arising during period | — | — | 6 | ||||||||||
Marketable securities, net | — | — | 6 | ||||||||||
Defined benefit pension and postretirement plans: | |||||||||||||
Prior service (cost) credit arising during period | 9 | (5 | ) | (16 | ) | ||||||||
Net gain (loss) arising during period | (6 | ) | (102 | ) | (51 | ) | |||||||
Less: amortization of prior service credit (cost) and actuarial (loss) | (49 | ) | (59 | ) | (52 | ) | |||||||
Defined benefit pension and postretirement plans, net | 52 | (48 | ) | (15 | ) | ||||||||
Other comprehensive income (loss), before tax | 89 | (350 | ) | 19 | |||||||||
Income tax benefit (expense) related to items of other comprehensive income (loss) | (12 | ) | 5 | 50 | |||||||||
Other comprehensive income (loss), net of tax | $ | 77 | $ | (345 | ) | $ | 69 | ||||||
Comprehensive income (loss) | $ | 1,275 | $ | (504 | ) | $ | 406 | ||||||
Less: comprehensive income (loss), available to noncontrolling interests | 14 | 26 | (13 | ) | |||||||||
Comprehensive income (loss) available to Whirlpool | $ | 1,261 | $ | (530 | ) | $ | 419 |
2022 | 2021 | 2020 | |||||||||||||||||||||
Net earnings (loss) | $ | (1,511) | $ | 1,806 | $ | 1,065 | |||||||||||||||||
Other comprehensive income (loss), before tax: | |||||||||||||||||||||||
Foreign currency translation adjustments | 280 | 364 | (385) | ||||||||||||||||||||
Derivative instruments: | |||||||||||||||||||||||
Net gain (loss) arising during period | 119 | 282 | (43) | ||||||||||||||||||||
Less: reclassification adjustment for gain (loss) included in net earnings (loss) | 93 | 255 | (126) | ||||||||||||||||||||
Derivative instruments, net | 26 | 27 | 83 | ||||||||||||||||||||
Defined benefit pension and postretirement plans: | |||||||||||||||||||||||
Prior service (cost) credit arising during period | 5 | — | 156 | ||||||||||||||||||||
Net gain (loss) arising during period | (54) | 56 | (78) | ||||||||||||||||||||
Less: amortization of prior service credit (cost) and actuarial (loss) | (22) | (48) | (93) | ||||||||||||||||||||
Defined benefit pension and postretirement plans, net | (27) | 104 | 171 | ||||||||||||||||||||
Other comprehensive income (loss), before tax | 279 | 495 | (131) | ||||||||||||||||||||
Income tax benefit (expense) related to items of other comprehensive income (loss) | (12) | (41) | (60) | ||||||||||||||||||||
Other comprehensive income (loss), net of tax | $ | 267 | $ | 454 | $ | (191) | |||||||||||||||||
Comprehensive income (loss) | $ | (1,244) | $ | 2,260 | $ | 874 | |||||||||||||||||
Less: comprehensive income (loss), available to noncontrolling interests | 8 | 23 | (8) | ||||||||||||||||||||
Comprehensive income (loss) available to Whirlpool | $ | (1,252) | $ | 2,237 | $ | 882 |
2019 | 2018 | ||||||
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 1,952 | $ | 1,498 | |||
Accounts receivable, net of allowance of $132 and $136, respectively | 2,198 | 2,210 | |||||
Inventories | 2,438 | 2,533 | |||||
Prepaid and other current assets | 810 | 839 | |||||
Assets held for sale | — | 818 | |||||
Total current assets | 7,398 | 7,898 | |||||
Property, net of accumulated depreciation of $6,444 and $6,190, respectively | 3,301 | 3,414 | |||||
Right of use assets | 921 | — | |||||
Goodwill | 2,440 | 2,451 | |||||
Other intangibles, net of accumulated amortization of $593 and $527, respectively | 2,225 | 2,296 | |||||
Deferred income taxes | 2,238 | 1,989 | |||||
Other noncurrent assets | 358 | 299 | |||||
Total assets | $ | 18,881 | $ | 18,347 | |||
Liabilities and stockholders' equity | |||||||
Current liabilities | |||||||
Accounts payable | $ | 4,547 | $ | 4,487 | |||
Accrued expenses | 652 | 690 | |||||
Accrued advertising and promotions | 949 | 827 | |||||
Employee compensation | 450 | 393 | |||||
Notes payable | 294 | 1,034 | |||||
Current maturities of long-term debt | 559 | 947 | |||||
Other current liabilities | 918 | 811 | |||||
Liabilities held for sale | — | 489 | |||||
Total current liabilities | 8,369 | 9,678 | |||||
Noncurrent liabilities | |||||||
Long-term debt | 4,140 | 4,046 | |||||
Pension benefits | 542 | 637 | |||||
Postretirement benefits | 322 | 318 | |||||
Lease liabilities | 778 | — | |||||
Other noncurrent liabilities | 612 | 463 | |||||
Total noncurrent liabilities | 6,394 | 5,464 | |||||
Stockholders' equity | |||||||
Common stock, $1 par value, 250 million shares authorized, 112 million shares issued, and 63 million and 64 million shares outstanding, respectively | 112 | 112 | |||||
Additional paid-in capital | 2,806 | 2,768 | |||||
Retained earnings | 7,870 | 6,933 | |||||
Accumulated other comprehensive loss | (2,618 | ) | (2,695 | ) | |||
Treasury stock, 49 million and 48 million shares, respectively | (4,975 | ) | (4,827 | ) | |||
Total Whirlpool stockholders' equity | 3,195 | 2,291 | |||||
Noncontrolling interests | 923 | 914 | |||||
Total stockholders' equity | 4,118 | 3,205 | |||||
Total liabilities and stockholders' equity | $ | 18,881 | $ | 18,347 |
2022 | 2021 | ||||||||||
Assets | |||||||||||
Current assets | |||||||||||
Cash and cash equivalents | $ | 1,958 | $ | 3,044 | |||||||
Accounts receivable, net of allowance of $49 and $98, respectively | 1,555 | 3,100 | |||||||||
Inventories | 2,089 | 2,717 | |||||||||
Prepaid and other current assets | 653 | 834 | |||||||||
Assets held for sale | 139 | — | |||||||||
Total current assets | 6,394 | 9,695 | |||||||||
Property, net of accumulated depreciation of $4,808 and $6,619, respectively | 2,102 | 2,805 | |||||||||
Right of use assets | 691 | 946 | |||||||||
Goodwill | 3,314 | 2,485 | |||||||||
Other intangibles, net of accumulated amortization of $400 and $522, respectively | 3,164 | 1,981 | |||||||||
Deferred income taxes | 1,063 | 1,920 | |||||||||
Other noncurrent assets | 396 | 453 | |||||||||
Total assets | $ | 17,124 | $ | 20,285 | |||||||
Liabilities and stockholders' equity | |||||||||||
Current liabilities | |||||||||||
Accounts payable | $ | 3,376 | $ | 5,413 | |||||||
Accrued expenses | 481 | 609 | |||||||||
Accrued advertising and promotions | 623 | 854 | |||||||||
Employee compensation | 159 | 576 | |||||||||
Notes payable | 4 | 10 | |||||||||
Current maturities of long-term debt | 248 | 298 | |||||||||
Other current liabilities | 550 | 750 | |||||||||
Liabilities held for sale | 490 | — | |||||||||
Total current liabilities | 5,931 | 8,510 | |||||||||
Noncurrent liabilities | |||||||||||
Long-term debt | 7,363 | 4,929 | |||||||||
Pension benefits | 184 | 378 | |||||||||
Postretirement benefits | 96 | 142 | |||||||||
Lease liabilities | 584 | 794 | |||||||||
Other noncurrent liabilities | 460 | 519 | |||||||||
Total noncurrent liabilities | 8,687 | 6,762 | |||||||||
Stockholders' equity | |||||||||||
Common stock, $1 par value, 250 million shares authorized, 114 million and 114 million shares issued, respectively, and 54 million and 59 million shares outstanding, respectively | 114 | 114 | |||||||||
Additional paid-in capital | 3,061 | 3,025 | |||||||||
Retained earnings | 8,261 | 10,170 | |||||||||
Accumulated other comprehensive loss | (2,090) | (2,357) | |||||||||
Treasury stock, 60 million and 55 million shares, respectively | (7,010) | (6,106) | |||||||||
Total Whirlpool stockholders' equity | 2,336 | 4,846 | |||||||||
Noncontrolling interests | 170 | 167 | |||||||||
Total stockholders' equity | 2,506 | 5,013 | |||||||||
Total liabilities and stockholders' equity | $ | 17,124 | $ | 20,285 |
2019 | 2018 | 2017 | |||||||||
Operating activities | |||||||||||
Net earnings (loss) | $ | 1,198 | $ | (159 | ) | $ | 337 | ||||
Adjustments to reconcile net earnings (loss) to cash provided by (used in) operating activities: | |||||||||||
Depreciation and amortization | 587 | 645 | 654 | ||||||||
Impairment of goodwill and other intangibles | — | 747 | — | ||||||||
(Gain) loss on sale and disposal of businesses | (437 | ) | — | — | |||||||
Changes in assets and liabilities: | |||||||||||
Accounts receivable | (87 | ) | 79 | 160 | |||||||
Inventories | (39 | ) | 73 | (229 | ) | ||||||
Accounts payable | 140 | 210 | 180 | ||||||||
Accrued advertising and promotions | 118 | 12 | 76 | ||||||||
Accrued expenses and current liabilities | 22 | 162 | (230 | ) | |||||||
Taxes deferred and payable, net | (116 | ) | (67 | ) | 239 | ||||||
Accrued pension and postretirement benefits | (81 | ) | (434 | ) | (58 | ) | |||||
Employee compensation | 106 | 44 | 36 | ||||||||
Other | (181 | ) | (83 | ) | 99 | ||||||
Cash provided by operating activities | 1,230 | 1,229 | 1,264 | ||||||||
Investing activities | |||||||||||
Capital expenditures | (532 | ) | (590 | ) | (684 | ) | |||||
Proceeds from sale of assets and business | 1,174 | 160 | 61 | ||||||||
Purchase of held-to-maturity securities | — | — | (173 | ) | |||||||
Proceeds from held-to-maturity securities | — | 60 | 113 | ||||||||
Investment in related businesses | — | (25 | ) | (35 | ) | ||||||
Other | (6 | ) | (4 | ) | (3 | ) | |||||
Cash provided by (used in) investing activities | 636 | (399 | ) | (721 | ) | ||||||
Financing activities | |||||||||||
Net proceeds from borrowings of long-term debt | 700 | 705 | 691 | ||||||||
Repayments of long-term debt | (949 | ) | (386 | ) | (564 | ) | |||||
Net proceeds (repayments) from short-term borrowings | (723 | ) | 653 | 367 | |||||||
Dividends paid | (305 | ) | (306 | ) | (312 | ) | |||||
Repurchase of common stock | (148 | ) | (1,153 | ) | (750 | ) | |||||
Purchase of noncontrolling interest shares | — | (41 | ) | (5 | ) | ||||||
Common stock issued | 8 | 17 | 34 | ||||||||
Other | (7 | ) | (7 | ) | (14 | ) | |||||
Cash used in financing activities | (1,424 | ) | (518 | ) | (553 | ) | |||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (28 | ) | (67 | ) | 63 | ||||||
Increase in cash, cash equivalents and restricted cash | 414 | 245 | 53 | ||||||||
Cash, cash equivalents and restricted cash at beginning of year | 1,538 | 1,293 | 1,240 | ||||||||
Cash, cash equivalents and restricted cash at end of year | $ | 1,952 | $ | 1,538 | $ | 1,293 | |||||
Supplemental disclosure of cash flow information | |||||||||||
Cash paid for interest | $ | 194 | $ | 183 | $ | 181 | |||||
Cash paid for income taxes | $ | 469 | $ | 206 | $ | 311 |
2022 | 2021 | 2020 | |||||||||||||||
Operating activities | |||||||||||||||||
Net earnings (loss) | $ | (1,511) | $ | 1,806 | $ | 1,065 | |||||||||||
Adjustments to reconcile net earnings to cash provided by (used in) operating activities: | |||||||||||||||||
Depreciation and amortization | 475 | 494 | 568 | ||||||||||||||
Impairment of goodwill and other intangibles | 384 | — | 7 | ||||||||||||||
(Gain) loss on sale and disposal of businesses | 1,869 | (105) | (7) | ||||||||||||||
(Gain) loss on previously held equity interest | — | (42) | — | ||||||||||||||
Changes in assets and liabilities: | |||||||||||||||||
Accounts receivable | 854 | (232) | (940) | ||||||||||||||
Inventories | (49) | (648) | 249 | ||||||||||||||
Accounts payable | (612) | 949 | 341 | ||||||||||||||
Accrued advertising and promotions | (51) | 70 | (123) | ||||||||||||||
Accrued expenses and current liabilities | 113 | 125 | (287) | ||||||||||||||
Taxes deferred and payable, net | 18 | 130 | 154 | ||||||||||||||
Accrued pension and postretirement benefits | (105) | (116) | (30) | ||||||||||||||
Employee compensation | (288) | 16 | 303 | ||||||||||||||
Other | 293 | (271) | 200 | ||||||||||||||
Cash provided by (used in) operating activities | 1,390 | 2,176 | 1,500 | ||||||||||||||
Investing activities | |||||||||||||||||
Capital expenditures | (570) | (525) | (410) | ||||||||||||||
Proceeds from sale of assets and businesses | 77 | 302 | 166 | ||||||||||||||
Acquisition of businesses, net of cash acquired | (3,000) | (46) | — | ||||||||||||||
Cash held by divested businesses | (75) | (393) | — | ||||||||||||||
Other | — | 2 | 7 | ||||||||||||||
Cash provided by (used in) investing activities | (3,568) | (660) | (237) | ||||||||||||||
Financing activities | |||||||||||||||||
Net proceeds from borrowings of long-term debt | 2,800 | 300 | 1,033 | ||||||||||||||
Net proceeds (repayments) of long-term debt | (300) | (300) | (569) | ||||||||||||||
Net proceeds (repayments) from short-term borrowings | (4) | (1) | (330) | ||||||||||||||
Dividends paid | (390) | (338) | (311) | ||||||||||||||
Repurchase of common stock | (903) | (1,041) | (121) | ||||||||||||||
Common stock issued | 3 | 76 | 44 | ||||||||||||||
Other | — | (35) | 1 | ||||||||||||||
Cash provided by (used in) financing activities | 1,206 | (1,339) | (253) | ||||||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (20) | (67) | (28) | ||||||||||||||
Less: decrease in cash classified as held for sale | (94) | — | — | ||||||||||||||
Increase (decrease) in cash, cash equivalents and restricted cash | (1,086) | 110 | 982 | ||||||||||||||
Cash, cash equivalents and restricted cash at beginning of year | 3,044 | 2,934 | 1,952 | ||||||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 1,958 | $ | 3,044 | $ | 2,934 | |||||||||||
Supplemental disclosure of cash flow information | |||||||||||||||||
Cash paid for interest | $ | 161 | $ | 169 | $ | 193 | |||||||||||
Cash paid for income taxes | $ | 247 | $ | 388 | $ | 229 |
Whirlpool Stockholders' Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Whirlpool Stockholders' Equity | Total | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock/ Additional Paid-In-Capital | Common Stock | Non- Controlling Interests | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock/ Additional Paid- in-Capital | Common Stock | Non- Controlling Interests | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances, December 31, 2016 | $ | 5,728 | $ | 7,314 | $ | (2,400 | ) | $ | (252 | ) | $ | 111 | $ | 955 | ||||||||||||||||||||||||||||||||||||||||||||||||
Balances, December 31, 2019 | Balances, December 31, 2019 | $ | 4,210 | $ | 7,962 | $ | (2,618) | $ | (2,169) | $ | 112 | $ | 923 | |||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income | Comprehensive income | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net earnings (loss) | 337 | 350 | — | — | — | (13 | ) | Net earnings (loss) | 1,065 | 1,075 | — | — | — | (10) | ||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | 69 | — | 69 | — | — | — | Other comprehensive income (loss) | (191) | — | (193) | — | — | 2 | |||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income | 406 | 350 | 69 | — | — | (13 | ) | Comprehensive income | 874 | 1,075 | (193) | — | — | (8) | ||||||||||||||||||||||||||||||||||||||||||||||||
Stock issued (repurchased) | (682 | ) | — | — | (683 | ) | 1 | — | Stock issued (repurchased) | 28 | — | — | 27 | 1 | — | |||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared | (324 | ) | (312 | ) | — | — | — | (12 | ) | Dividends declared | (317) | (312) | — | — | — | (5) | ||||||||||||||||||||||||||||||||||||||||||||||
Balances, December 31, 2017 | 5,128 | 7,352 | (2,331 | ) | (935 | ) | 112 | 930 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances, December 31, 2020 | Balances, December 31, 2020 | 4,795 | 8,725 | (2,811) | (2,142) | 113 | 910 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income | Comprehensive income | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net earnings (loss) | (159 | ) | (183 | ) | — | — | — | 24 | Net earnings (loss) | 1,806 | 1,783 | — | — | — | 23 | |||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | (345 | ) | — | (347 | ) | — | — | 2 | Other comprehensive income (loss) | 454 | — | 454 | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income | (504 | ) | (183 | ) | (347 | ) | — | — | 26 | Comprehensive income | 2,260 | 1,783 | 454 | — | — | 23 | ||||||||||||||||||||||||||||||||||||||||||||||
Adjustment to beginning retained earnings | 72 | 72 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjustment to beginning accumulated other comprehensive loss | (17 | ) | — | (17 | ) | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock issued (repurchased) | (1,160 | ) | — | — | (1,124 | ) | — | (36 | ) | Stock issued (repurchased) | (938) | — | — | (939) | 1 | — | ||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared | (314 | ) | (308 | ) | — | — | — | (6 | ) | Dividends declared | (340) | (338) | — | — | — | (2) | ||||||||||||||||||||||||||||||||||||||||||||||
Balances, December 31, 2018 | 3,205 | 6,933 | (2,695 | ) | (2,059 | ) | 112 | 914 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions and Divestitures | Acquisitions and Divestitures | (764) | — | — | — | — | (764) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances, December 31, 2021 | Balances, December 31, 2021 | 5,013 | 10,170 | (2,357) | (3,081) | 114 | 167 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income | Comprehensive income | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net earnings | 1,198 | 1,184 | — | — | — | 14 | Net earnings | (1,511) | (1,519) | — | — | — | 8 | |||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | 77 | — | 77 | — | — | — | Other comprehensive income (loss) | 267 | — | 267 | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income | 1,275 | 1,184 | 77 | — | — | 14 | Comprehensive income | (1,244) | (1,519) | 267 | — | — | 8 | |||||||||||||||||||||||||||||||||||||||||||||||||
Adjustment to beginning retained earnings | 61 | 61 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock issued (repurchased) | (110 | ) | — | — | (110 | ) | — | — | Stock issued (repurchased) | (868) | — | — | (868) | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared | (313 | ) | (308 | ) | — | — | — | (5 | ) | Dividends declared | (395) | (390) | — | — | — | (5) | ||||||||||||||||||||||||||||||||||||||||||||||
Balances, December 31, 2019 | $ | 4,118 | $ | 7,870 | $ | (2,618 | ) | $ | (2,169 | ) | $ | 112 | $ | 923 | ||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions and divestitures | Acquisitions and divestitures | — | —�� | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances, December 31, 2022 | Balances, December 31, 2022 | $ | 2,506 | $ | 8,261 | $ | (2,090) | $ | (3,949) | $ | 114 | $ | 170 |
Millions of dollars | 2019 | 2018 | Estimated Useful Life | |||||||
Land | $ | 97 | $ | 102 | n/a | |||||
Buildings | 1,540 | 1,593 | 10 to 50 years | |||||||
Machinery and equipment | 8,108 | 7,909 | 3 to 20 years | |||||||
Accumulated depreciation | (6,444 | ) | (6,190 | ) | ||||||
Property plant and equipment, net | $ | 3,301 | $ | 3,414 |
Millions of dollars | 2022 | 2021 | Estimated Useful Life | |||||||||||||||||
Land | $ | 32 | $ | 84 | n/a | |||||||||||||||
Buildings | 862 | 1,249 | 10 to 50 years | |||||||||||||||||
Machinery and equipment | 6,016 | 8,091 | 3 to 20 years | |||||||||||||||||
Accumulated depreciation | (4,808) | (6,619) | ||||||||||||||||||
Property plant and equipment, net | $ | 2,102 | $ | 2,805 |
Millions of dollars | December 31, 2022 | December 31, 2021 | |||||||||||||||
Other noncurrent assets | Carrying value of equity interest | $ | 201 | $ | 206 | ||||||||||||
Accounts payable | Outstanding amounts due | $ | 75 | $ | 137 |
Twelve Months Ended December 31, | ||||||||||||||
Millions of dollars | 2022 | 2021 | ||||||||||||
Purchases from Whirlpool China | $ | 376 | $ | 290 |
Standard | Effective Date | ||||||||
March 12, 2020 to | |||||||||
2021-01 | Reference Rate Reform (Topic 848) - Scope | January 7, 2021 to December 31, 2022 | |||||||
2021-10 | Government Assistance (Topic 832) - Disclosures by Business Entities about Government Assistance | January 1, | |||||||
December 21, 2022 to | |||||||||
Twelve months ended | ||||||||
Millions of dollars | 2019 | 2018 | ||||||
Major product categories: | ||||||||
Laundry | $ | 6,193 | $ | 6,200 | ||||
Refrigeration | 6,229 | 6,051 | ||||||
Cooking | 4,670 | 4,821 | ||||||
Dishwashing | 1,598 | 1,645 | ||||||
Total major product category net sales | $ | 18,690 | $ | 18,717 | ||||
Compressors | 557 | 1,135 | ||||||
Spare parts and warranties | 979 | 1,030 | ||||||
Other | 193 | 155 | ||||||
Total net sales | $ | 20,419 | $ | 21,037 |
Twelve Months Ended | ||||||||||||||||||||
Millions of dollars | 2022 | 2021 | 2020 | |||||||||||||||||
Major product categories: | ||||||||||||||||||||
Laundry | $ | 5,133 | $ | 6,122 | $ | 5,675 | ||||||||||||||
Refrigeration | 6,248 | 6,677 | 6,058 | |||||||||||||||||
Cooking | 5,056 | 5,639 | 4,782 | |||||||||||||||||
Dishwashing | 1,822 | 1,890 | 1,605 | |||||||||||||||||
Total major product category net sales | $ | 18,259 | $ | 20,327 | $ | 18,120 | ||||||||||||||
Spare parts and warranties | 923 | 1,187 | 913 | |||||||||||||||||
Other | 542 | 470 | 423 | |||||||||||||||||
Total net sales | $ | 19,724 | $ | 21,985 | $ | 19,456 |
Millions of dollars | December 31, 2021 | Charged to Earnings | Write-offs | Foreign Currency | Other (1) | December 31, 2022 | ||||||||||||||||||||||||||||||||
Accounts receivable allowance | ||||||||||||||||||||||||||||||||||||||
North America | $ | 7 | $ | (1) | $ | — | $ | — | $ | — | $ | 6 | ||||||||||||||||||||||||||
EMEA | 45 | 5 | (1) | — | (47) | 2 | ||||||||||||||||||||||||||||||||
Latin America | 43 | 2 | (8) | 1 | — | 38 | ||||||||||||||||||||||||||||||||
Asia | 3 | 1 | — | (1) | — | 3 | ||||||||||||||||||||||||||||||||
$ | 98 | $ | 7 | $ | (9) | $ | — | $ | (47) | $ | 49 | |||||||||||||||||||||||||||
Financing receivable allowance | ||||||||||||||||||||||||||||||||||||||
Latin America | $ | 25 | $ | — | $ | — | $ | 2 | $ | — | $ | 27 | ||||||||||||||||||||||||||
$ | 25 | $ | — | $ | — | $ | 2 | $ | — | $ | 27 | |||||||||||||||||||||||||||
Consolidated | $ | 123 | $ | 7 | $ | (9) | $ | 2 | $ | (47) | $ | 76 |
Maturity of Lease Liabilities | Operating Leases (in millions) | ||
2020 | $ | 203 | |
2021 | 172 | ||
2022 | 146 | ||
2023 | 132 | ||
2024 | 110 | ||
After 2024 | 342 | ||
Total lease payments | $ | 1,105 | |
Less: interest | 161 | ||
Present value of lease liabilities | $ | 944 |
Maturity of Lease Liabilities | Operating Leases (in millions) | ||||
2023 | $ | 201 | |||
2024 | 139 | ||||
2025 | 107 | ||||
2026 | 98 | ||||
2027 | 84 | ||||
Thereafter | 260 | ||||
Total lease payments | $ | 889 | |||
Less: interest | 137 | ||||
Present value of lease liabilities | 752 |
December 31, | |||||||||||||||||
Millions of dollars | 2022 | 2021 | 2020 | ||||||||||||||
Cash and cash equivalents as presented in our Consolidated Balance Sheets | $ | 1,958 | $ | 3,044 | $ | 2,924 | |||||||||||
Restricted cash included in prepaid and other current assets | — | — | 10 | ||||||||||||||
Cash, cash equivalents and restricted cash as presented in our Consolidated Statements of Cash Flows | $ | 1,958 | $ | 3,044 | $ | 2,934 |
December 31, | |||||||||||
Millions of dollars | 2019 | 2018 | 2017 | ||||||||
Cash and cash equivalents as presented in our Consolidated Balance Sheets | $ | 1,952 | $ | 1,498 | $ | 1,196 | |||||
Restricted cash included in prepaid and other current assets (1) | — | 40 | 48 | ||||||||
Restricted cash included in other noncurrent assets (1) | — | — | 49 | ||||||||
Cash, cash equivalents and restricted cash as presented in our Consolidated Statements of Cash Flows | $ | 1,952 | $ | 1,538 | $ | 1,293 |
Millions of dollars | 2022 | 2021 | ||||||||||||
Finished products | $ | 1,580 | $ | 1,958 | ||||||||||
Raw materials and work in process | 509 | 759 | ||||||||||||
Total inventories (1) | $ | 2,089 | $ | 2,717 |
Millions of dollars | 2019 | 2018 | ||||||
Finished products | $ | 1,979 | $ | 2,076 | ||||
Raw materials and work in process | 602 | 617 | ||||||
2,581 | 2,693 | |||||||
Less: excess of FIFO cost over LIFO cost | (143 | ) | (160 | ) | ||||
Total inventories | $ | 2,438 | $ | 2,533 |
Millions of dollars | North America | EMEA | Latin America | Asia | Total Whirlpool | ||||||||||||||
Ending balance December 31, 2017 | $ | 1,755 | $ | 920 | $ | 5 | $ | 438 | $ | 3,118 | |||||||||
Reassignment of goodwill (1) | (54 | ) | — | 53 | 1 | — | |||||||||||||
Impairment (2) | — | (579 | ) | — | — | (579 | ) | ||||||||||||
Reclassification to asset held for sale | — | — | (23 | ) | — | (23 | ) | ||||||||||||
Currency translation adjustment | (8 | ) | (32 | ) | (2 | ) | (23 | ) | (65 | ) | |||||||||
Ending balance December 31, 2018 | $ | 1,693 | $ | 309 | $ | 33 | $ | 416 | $ | 2,451 | |||||||||
Currency translation adjustment | 2 | (7 | ) | — | (6 | ) | (11 | ) | |||||||||||
Ending balance December 31, 2019 | $ | 1,695 | $ | 302 | $ | 33 | $ | 410 | $ | 2,440 |
Millions of dollars | North America | EMEA | Latin America | Asia | Total Whirlpool | ||||||||||||||||||||||||
Ending balance December 31, 2020 | $ | 1,695 | $ | 329 | $ | 34 | $ | 438 | $ | 2,496 | |||||||||||||||||||
Currency translation adjustment | — | (22) | (1) | 3 | (20) | ||||||||||||||||||||||||
Divestitures and acquisitions (1) | $ | — | $ | (11) | $ | — | $ | 20 | $ | 9 | |||||||||||||||||||
Ending balance December 31, 2021 | $ | 1,695 | $ | 296 | $ | 33 | $ | 461 | $ | 2,485 | |||||||||||||||||||
Currency translation adjustment | (3) | (18) | — | (9) | (30) | ||||||||||||||||||||||||
Divestitures and acquisitions (2) | 1,137 | — | — | — | 1,137 | ||||||||||||||||||||||||
Impairment (3) | $ | — | $ | (278) | $ | — | $ | — | $ | (278) | |||||||||||||||||||
Ending balance December 31, 2022 | $ | 2,829 | $ | — | $ | 33 | $ | 452 | $ | 3,314 |
December 31, 2019 | December 31, 2018 | December 31, 2022 | December 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Millions of dollars | Gross Carrying Amount | Accumulated Amortization | Net | Gross Carrying Amount | Accumulated Amortization | Net | Millions of dollars | Gross Carrying Amount | Accumulated Amortization | Net | Gross Carrying Amount | Accumulated Amortization | Net | ||||||||||||||||||||||||||||||||||||||||||||||
Other intangible assets, finite lives: | Other intangible assets, finite lives: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Customer relationships (1) | $ | 624 | $ | (377 | ) | $ | 247 | $ | 622 | $ | (330 | ) | $ | 292 | Customer relationships (1) | $ | 668 | $ | (287) | $ | 381 | $ | 443 | $ | (334) | $ | 109 | ||||||||||||||||||||||||||||||||
Patents and other (2) | 324 | (216 | ) | 108 | 328 | (197 | ) | 131 | Patents and other (2) | 116 | (113) | 3 | 191 | (188) | 3 | ||||||||||||||||||||||||||||||||||||||||||||
Total other intangible assets, finite lives | $ | 948 | $ | (593 | ) | $ | 355 | $ | 950 | $ | (527 | ) | $ | 423 | Total other intangible assets, finite lives | $ | 784 | $ | (400) | $ | 384 | $ | 634 | $ | (522) | $ | 112 | ||||||||||||||||||||||||||||||||
Trademarks, indefinite lives (3) | 1,870 | — | 1,870 | 1,873 | — | 1,873 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Trademarks, indefinite lives (3)(4)(5) | Trademarks, indefinite lives (3)(4)(5) | 2,780 | — | 2,780 | 1,869 | — | 1,869 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total other intangible assets | $ | 2,818 | $ | (593 | ) | $ | 2,225 | $ | 2,823 | $ | (527 | ) | $ | 2,296 | Total other intangible assets | $ | 3,564 | $ | (400) | $ | 3,164 | $ | 2,503 | $ | (522) | $ | 1,981 |
Millions of dollars | |||
2020 | $ | 58 | |
2021 | 56 | ||
2022 | 49 | ||
2023 | 42 | ||
2024 | 30 |
Millions of dollars | |||||
2023 | 43 | ||||
2024 | 27 | ||||
2025 | 24 | ||||
2026 | 24 | ||||
2027 | 24 | ||||
Millions of dollars | 2022 | 2021 | ||||||
Senior Note - 4.70%, maturing 2022 | $ | — | $ | 300 | ||||
Senior Note - 3.70%, maturing 2023 | 250 | 250 | ||||||
Senior Note - 4.00%, maturing 2024 | 300 | 300 | ||||||
Term Loan - SOFR + 85bps, maturing 2024 | 1,000 | — | ||||||
Term Loan - SOFR +110bps, maturing 2025 | 1,500 | — | ||||||
Senior Note - 3.70%, maturing 2025 | 350 | 350 | ||||||
Senior Note - 1.25%, maturing 2026(1) | 532 | 566 | ||||||
Senior Note - 1.10%, maturing 2027(1) | 638 | 679 | ||||||
Senior Note - 0.50%, maturing 2028(1) | 533 | 566 | ||||||
Senior Note - 4.75%, maturing 2029 | 695 | 694 | ||||||
Senior Note - 2.40%, maturing 2031 | 300 | 300 | ||||||
Senior Note - 4.70%, maturing 2032 | 297 | — | ||||||
Senior Note - 5.15%, maturing 2043 | 249 | 249 | ||||||
Senior Note - 4.50%, maturing 2046 | 497 | 497 | ||||||
Senior Note - 4.60%, maturing 2050 | 493 | 493 | ||||||
Other, net | (23) | (17) | ||||||
$ | 7,611 | $ | 5,227 | |||||
Less current maturities | 248 | 298 | ||||||
Total long-term debt | $ | 7,363 | $ | 4,929 |
Millions of dollars | 2019 | 2018 | ||||
Senior Note - 2.40%, maturing 2019 | $ | — | $ | 250 | ||
Term Loan - 1.00%, maturing 2019 | — | 687 | ||||
Senior Note - 0.625%, maturing 2020 | 561 | 572 | ||||
Senior Note - 4.85%, maturing 2021 | 300 | 300 | ||||
Senior Note - 4.70%, maturing 2022 | 300 | 300 | ||||
Senior Note - 3.70%, maturing 2023 | 250 | 250 | ||||
Senior Note - 4.00%, maturing 2024 | 300 | 300 | ||||
Senior Note - 3.70%, maturing 2025 | 350 | 350 | ||||
Senior Note - 1.25%, maturing 2026 | 556 | 567 | ||||
Senior Note - 1.10%, maturing 2027 | 667 | 681 | ||||
Senior Note - 4.75%, maturing 2029 | 692 | — | ||||
Senior Note - 5.15%, maturing 2043 | 249 | 250 | ||||
Senior Note - 4.50%, maturing 2046 | 496 | 496 | ||||
Other, net | (22 | ) | (10 | ) | ||
$ | 4,699 | $ | 4,993 | |||
Less current maturities | 559 | 947 | ||||
Total long-term debt | $ | 4,140 | $ | 4,046 |
Millions of dollars | |||||
2023 | 248 | ||||
2024 | 1,297 | ||||
2025 | 1,847 | ||||
2026 | 529 | ||||
2027 | 636 | ||||
Thereafter | 3,054 | ||||
Long-term debt, including current maturities | 7,611 |
Millions of dollars | |||
2020 | $ | 559 | |
2021 | 297 | ||
2022 | 298 | ||
2023 | 247 | ||
2024 | 298 | ||
Thereafter | 3,000 | ||
Long-term debt, including current maturities | $ | 4,699 |
Millions of dollars | 2019 | 2018 | ||||||
Commercial paper | $ | 274 | $ | — | ||||
Short-term borrowings to banks | 20 | 1,034 | ||||||
Total notes payable | $ | 294 | $ | 1,034 |
Millions of dollars | 2022 | 2021 | ||||||||||||
Short-term borrowings to banks | 4 | 10 | ||||||||||||
Total notes payable | $ | 4 | $ | 10 |
Product Warranty | ||||||||||||||
Millions of dollars | 2022 | 2021 | ||||||||||||
Balance at January 1 | $ | 286 | $ | 273 | ||||||||||
Issuances/accruals during the period | 267 | 307 | ||||||||||||
Settlements made during the period/other(1) | (304) | (294) | ||||||||||||
Liabilities classified to held for sale(2) | (59) | — | ||||||||||||
Balance at December 31 | $ | 190 | $ | 286 | ||||||||||
Current portion | $ | 131 | $ | 194 | ||||||||||
Non-current portion | 59 | 92 | ||||||||||||
Total | $ | 190 | $ | 286 |
Product Warranty | ||||||||
Millions of dollars | 2019 | 2018 | ||||||
Balance at January 1 | $ | 268 | $ | 277 | ||||
Issuances/accruals during the period | 350 | 289 | ||||||
Settlements made during the period/other | (235 | ) | (294 | ) | ||||
Reclassification of product warranty to held for sale | — | (4 | ) | |||||
Balance at December 31 | $ | 383 | $ | 268 | ||||
Current portion | $ | 254 | $ | 194 | ||||
Non-current portion | 129 | 74 | ||||||
Total | $ | 383 | $ | 268 |
Millions of dollars | |||
2020 | $ | 205 | |
2021 | 171 | ||
2022 | 119 | ||
2023 | 81 | ||
2024 | 39 | ||
Thereafter | 57 | ||
Total purchase obligations | $ | 672 |
Millions of dollars | |||||
2023 | $ | 365 | |||
2024 | 158 | ||||
2025 | 68 | ||||
2026 | 28 | ||||
2027 | 12 | ||||
Thereafter | 51 | ||||
Total purchase obligations | $ | 682 |
United States Pension Benefits | Foreign Pension Benefits | Other Postretirement Benefits | ||||||||||||||||||||||
Millions of dollars | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||
Funded status | ||||||||||||||||||||||||
Fair value of plan assets | $ | 2,934 | $ | 2,676 | $ | 593 | $ | 518 | $ | — | $ | — | ||||||||||||
Benefit obligations | 3,141 | 3,033 | 941 | 834 | 355 | 356 | ||||||||||||||||||
Funded status | $ | (207 | ) | $ | (357 | ) | $ | (348 | ) | $ | (316 | ) | $ | (355 | ) | $ | (356 | ) | ||||||
Amounts recognized in the consolidated balance sheets | ||||||||||||||||||||||||
Noncurrent asset | $ | — | $ | — | $ | 11 | $ | 12 | $ | — | $ | — | ||||||||||||
Current liability | (6 | ) | (38 | ) | (17 | ) | (10 | ) | (33 | ) | (38 | ) | ||||||||||||
Noncurrent liability | (201 | ) | (319 | ) | (342 | ) | (318 | ) | (322 | ) | (318 | ) | ||||||||||||
Amount recognized | $ | (207 | ) | $ | (357 | ) | $ | (348 | ) | $ | (316 | ) | $ | (355 | ) | $ | (356 | ) | ||||||
Amounts recognized in accumulated other comprehensive loss (pre-tax) | ||||||||||||||||||||||||
Net actuarial loss | $ | 1,329 | $ | 1,445 | $ | 234 | $ | 192 | $ | 15 | $ | 1 | ||||||||||||
Prior service (credit) cost | 1 | (1 | ) | 4 | (2 | ) | (16 | ) | (16 | ) | ||||||||||||||
Amount recognized | $ | 1,330 | $ | 1,444 | $ | 238 | $ | 190 | $ | (1 | ) | $ | (15 | ) |
United States Pension Benefits | Foreign Pension Benefits | Other Postretirement Benefits | ||||||||||||||||||||||||||||||||||||
Millions of dollars | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||||
Funded status | ||||||||||||||||||||||||||||||||||||||
Fair value of plan assets | $ | 2,072 | $ | 2,904 | $ | 30 | $ | 665 | $ | — | $ | — | ||||||||||||||||||||||||||
Benefit obligations | 2,211 | 2,968 | 60 | 924 | 121 | 166 | ||||||||||||||||||||||||||||||||
Funded status | $ | (139) | $ | (64) | $ | (30) | $ | (259) | $ | (121) | $ | (166) | ||||||||||||||||||||||||||
Amounts recognized in the consolidated balance sheets | ||||||||||||||||||||||||||||||||||||||
Noncurrent asset | $ | 21 | $ | 56 | $ | 7 | $ | 20 | $ | — | $ | — | ||||||||||||||||||||||||||
Current liability | (9) | (9) | (4) | (12) | (25) | (24) | ||||||||||||||||||||||||||||||||
Noncurrent liability | (151) | (111) | (33) | (267) | (96) | (142) | ||||||||||||||||||||||||||||||||
Amount recognized | $ | (139) | $ | (64) | $ | (30) | $ | (259) | $ | (121) | $ | (166) | ||||||||||||||||||||||||||
Amounts recognized in accumulated other comprehensive loss (pre-tax) | ||||||||||||||||||||||||||||||||||||||
Net actuarial loss | $ | 1,266 | $ | 1,180 | $ | 111 | $ | 184 | $ | (15) | $ | 14 | ||||||||||||||||||||||||||
Prior service (credit) cost | 1 | 1 | 3 | 3 | (52) | (93) | ||||||||||||||||||||||||||||||||
Amount recognized | $ | 1,267 | $ | 1,181 | $ | 114 | $ | 187 | $ | (67) | $ | (79) |
United States Pension Benefits | Foreign Pension Benefits | Other Postretirement Benefits | ||||||||||||||||||||||||||||||||||||
Millions of dollars | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||||
Benefit obligation, beginning of year | $ | 2,968 | $ | 3,237 | $ | 924 | $ | 1,029 | $ | 166 | $ | 191 | ||||||||||||||||||||||||||
Service cost | 3 | 3 | 4 | 5 | — | — | ||||||||||||||||||||||||||||||||
Interest cost | 82 | 77 | 15 | 14 | 5 | 5 | ||||||||||||||||||||||||||||||||
Plan participants' contributions | — | — | — | 1 | — | — | ||||||||||||||||||||||||||||||||
Actuarial (gain) loss | (606) | (99) | (262) | (45) | (28) | (8) | ||||||||||||||||||||||||||||||||
Benefits paid | (230) | (234) | (28) | (29) | (18) | (21) | ||||||||||||||||||||||||||||||||
Plan amendments | — | — | — | — | (5) | — | ||||||||||||||||||||||||||||||||
Transfer of liabilities | — | — | — | (23) | — | — | ||||||||||||||||||||||||||||||||
Other adjustments | — | — | 11 | — | — | — | ||||||||||||||||||||||||||||||||
Settlements / curtailment (gain) | (6) | (16) | (7) | (18) | — | — | ||||||||||||||||||||||||||||||||
Foreign currency exchange rates | — | — | (82) | (10) | 1 | (1) | ||||||||||||||||||||||||||||||||
Reclassification of obligation to held for sale | — | — | (515) | — | — | — | ||||||||||||||||||||||||||||||||
Benefit obligation, end of year | $ | 2,211 | $ | 2,968 | $ | 60 | $ | 924 | $ | 121 | $ | 166 | ||||||||||||||||||||||||||
Accumulated benefit obligation, end of year | $ | 2,205 | $ | 2,955 | $ | 52 | $ | 891 | N/A | N/A |
United States Pension Benefits | Foreign Pension Benefits | Other Postretirement Benefits | ||||||||||||||||||||||
Millions of dollars | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||
Benefit obligation, beginning of year | $ | 3,033 | $ | 3,415 | $ | 834 | $ | 952 | $ | 356 | $ | 394 | ||||||||||||
Service cost | 2 | 2 | 6 | 5 | 6 | 7 | ||||||||||||||||||
Interest cost | 123 | 118 | 23 | 23 | 16 | 15 | ||||||||||||||||||
Plan participants' contributions | — | — | 1 | 1 | — | — | ||||||||||||||||||
Actuarial loss (gain) | 279 | (197 | ) | 85 | (33 | ) | 14 | (16 | ) | |||||||||||||||
Benefits paid | (263 | ) | (305 | ) | (30 | ) | (31 | ) | (28 | ) | (36 | ) | ||||||||||||
Plan amendments | — | — | 6 | 1 | (15 | ) | 4 | |||||||||||||||||
Transfer of liabilities | — | — | (2 | ) | — | — | — | |||||||||||||||||
Other adjustments | — | — | 11 | — | 7 | — | ||||||||||||||||||
Special termination benefit | — | — | — | (5 | ) | — | — | |||||||||||||||||
Settlements / curtailment (gain) | (33 | ) | — | (13 | ) | (22 | ) | — | — | |||||||||||||||
Foreign currency exchange rates | — | — | 20 | (53 | ) | (1 | ) | (5 | ) | |||||||||||||||
Reclassification of obligation to held for sale | — | — | — | (4 | ) | — | (7 | ) | ||||||||||||||||
Benefit obligation, end of year | $ | 3,141 | $ | 3,033 | $ | 941 | $ | 834 | $ | 355 | $ | 356 | ||||||||||||
Accumulated benefit obligation, end of year | $ | 3,128 | $ | 3,022 | $ | 902 | $ | 804 | N/A | N/A |
United States Pension Benefits | Foreign Pension Benefits | Other Postretirement Benefits | ||||||||||||||||||||||||||||||||||||
Millions of dollars | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||||
Fair value of plan assets, beginning of year | $ | 2,904 | $ | 3,103 | $ | 665 | $ | 632 | $ | — | $ | — | ||||||||||||||||||||||||||
Actual return on plan assets | (605) | 31 | (181) | 56 | — | — | ||||||||||||||||||||||||||||||||
Employer contribution | 9 | 20 | 30 | 30 | 18 | 21 | ||||||||||||||||||||||||||||||||
Plan participants' contributions | — | — | — | 1 | — | — | ||||||||||||||||||||||||||||||||
Benefits paid | (230) | (234) | (28) | (29) | (18) | (21) | ||||||||||||||||||||||||||||||||
Transfer of plan assets | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Settlements | (6) | (16) | (7) | (17) | — | — | ||||||||||||||||||||||||||||||||
Foreign currency exchange rates | — | — | (70) | (8) | — | — | ||||||||||||||||||||||||||||||||
Reclassification of plan assets to held for sale | — | — | (379) | — | — | — | ||||||||||||||||||||||||||||||||
Fair value of plan assets, end of year (1) | $ | 2,072 | $ | 2,904 | $ | 30 | $ | 665 | $ | — | $ | — |
United States Pension Benefits | Foreign Pension Benefits | Other Postretirement Benefits | ||||||||||||||||||||||
Millions of dollars | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||
Fair value of plan assets, beginning of year | $ | 2,676 | $ | 2,746 | $ | 518 | $ | 571 | $ | — | $ | — | ||||||||||||
Actual return on plan assets | 517 | (145 | ) | 61 | (7 | ) | — | — | ||||||||||||||||
Employer contribution | 37 | 380 | 33 | 39 | 28 | 36 | ||||||||||||||||||
Plan participants' contributions | — | — | 1 | 1 | — | — | ||||||||||||||||||
Benefits paid | (263 | ) | (305 | ) | (30 | ) | (31 | ) | (28 | ) | (36 | ) | ||||||||||||
Transfer of plan assets | — | — | (2 | ) | — | — | — | |||||||||||||||||
Other adjustments | — | — | 5 | — | — | — | ||||||||||||||||||
Settlements | (33 | ) | — | (13 | ) | (22 | ) | — | — | |||||||||||||||
Foreign currency exchange rates | — | — | 20 | (31 | ) | — | — | |||||||||||||||||
Reclassification of plan assets to held for sale | — | — | — | (2 | ) | — | — | |||||||||||||||||
Fair value of plan assets, end of year | $ | 2,934 | $ | 2,676 | $ | 593 | $ | 518 | $ | — | $ | — |
United States Pension Benefits | Foreign Pension Benefits | Other Postretirement Benefits | ||||||||||||||||||||||||||||||||||
Millions of dollars | 2019 | 2018 | 2017 | 2019 | 2018 | 2017 | 2019 | 2018 | 2017 | |||||||||||||||||||||||||||
Service cost | $ | 2 | $ | 2 | $ | 2 | $ | 6 | $ | 5 | $ | 5 | $ | 6 | $ | 7 | $ | 7 | ||||||||||||||||||
Interest cost | 123 | 118 | 134 | 23 | 23 | 23 | 16 | 15 | 16 | |||||||||||||||||||||||||||
Expected return on plan assets | (177 | ) | (170 | ) | (175 | ) | (29 | ) | (32 | ) | (30 | ) | — | — | — | |||||||||||||||||||||
Amortization: | ||||||||||||||||||||||||||||||||||||
Actuarial loss | 47 | 53 | 50 | 8 | 9 | 6 | 1 | — | — | |||||||||||||||||||||||||||
Prior service cost (credit) | (2 | ) | (3 | ) | (3 | ) | — | — | — | (16 | ) | — | (4 | ) | ||||||||||||||||||||||
Special termination benefit | — | — | — | — | — | — | — | — | 4 | |||||||||||||||||||||||||||
Curtailment (gain) / loss | — | — | — | — | (4 | ) | — | — | — | — | ||||||||||||||||||||||||||
Settlement loss | 9 | — | — | 2 | 3 | 2 | — | — | — | |||||||||||||||||||||||||||
Net periodic benefit cost | $ | 2 | $ | — | $ | 8 | $ | 10 | $ | 4 | $ | 6 | $ | 7 | $ | 22 | $ | 23 |
United States Pension Benefits | Foreign Pension Benefits | Other Postretirement Benefits | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Millions of dollars | 2022 | 2021 | 2020 | 2022 | 2021 | 2020 | 2022 | 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
Service cost | $ | 3 | $ | 3 | $ | 3 | $ | 4 | $ | 5 | $ | 6 | $ | — | $ | — | $ | 4 | ||||||||||||||||||||||||||||||||||||||
Interest cost | 82 | 77 | 94 | 15 | 14 | 17 | 5 | 5 | 8 | |||||||||||||||||||||||||||||||||||||||||||||||
Expected return on plan assets | (144) | (158) | (165) | (31) | (34) | (30) | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Amortization: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Actuarial loss | 57 | 69 | 62 | 9 | 19 | 12 | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Prior service cost (credit) | — | — | — | — | — | — | (46) | (46) | (28) | |||||||||||||||||||||||||||||||||||||||||||||||
Curtailment (gain) / loss | — | — | — | (1) | — | — | — | — | (3) | |||||||||||||||||||||||||||||||||||||||||||||||
Settlement loss | 1 | 5 | 39 | 2 | 2 | 11 | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Net periodic benefit cost | $ | (1) | $ | (4) | $ | 33 | $ | (2) | $ | 6 | $ | 16 | $ | (41) | $ | (41) | $ | (19) |
United States Pension Benefits | Foreign Pension Benefits | Other Postretirement Benefits | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Millions of dollars | 2022 | 2021 | 2020 | 2022 | 2021 | 2020 | 2022 | 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
Operating profit (loss) | $ | 3 | $ | 3 | $ | 3 | $ | 4 | $ | 5 | $ | 6 | $ | — | $ | — | $ | 4 | ||||||||||||||||||||||||||||||||||||||
Interest and sundry (income) expense | (4) | (7) | 30 | (6) | 1 | 10 | (41) | (41) | (23) | |||||||||||||||||||||||||||||||||||||||||||||||
Net periodic benefit cost | $ | (1) | $ | (4) | $ | 33 | $ | (2) | $ | 6 | $ | 16 | $ | (41) | $ | (41) | $ | (19) |
United States Pension Benefits | Foreign Pension Benefits | Other Postretirement Benefits | ||||||||||||||||||||||||||||||||||
Millions of dollars | 2019 | 2018 | 2017 | 2019 | 2018 | 2017 | 2019 | 2018 | 2017 | |||||||||||||||||||||||||||
Operating profit (loss) | $ | 2 | $ | 2 | $ | 2 | $ | 6 | $ | 5 | $ | 5 | $ | 6 | $ | 7 | $ | 7 | ||||||||||||||||||
Interest and sundry (income) expense | — | (2 | ) | 6 | 4 | (1 | ) | 1 | 1 | 15 | 16 | |||||||||||||||||||||||||
Net periodic benefit cost | $ | 2 | $ | — | $ | 8 | $ | 10 | $ | 4 | $ | 6 | $ | 7 | $ | 22 | $ | 23 |
Millions of dollars | United States Pension Benefits | Foreign Pension Benefits | Other Postretirement Benefits | |||||||||
Current year actuarial loss / (gain) | $ | (60 | ) | $ | 52 | $ | 14 | |||||
Actuarial (loss) recognized during the year | (56 | ) | (10 | ) | (1 | ) | ||||||
Current year prior service cost (credit) | — | 6 | (15 | ) | ||||||||
Prior service credit (cost) recognized during the year | 2 | — | 16 | |||||||||
Total recognized in other comprehensive income (loss) (pre-tax) | $ | (114 | ) | $ | 48 | $ | 14 | |||||
Total recognized in net periodic benefit costs and other comprehensive income (loss) (pre-tax) | $ | (112 | ) | $ | 58 | $ | 21 |
Millions of dollars | United States Pension Benefits | Foreign Pension Benefits | Other Postretirement Benefits | |||||||||
Actuarial loss | $ | 62 | $ | 12 | $ | 1 | ||||||
Prior service (credit) | — | — | (8 | ) | ||||||||
Total | $ | 62 | $ | 12 | $ | (7 | ) |
Millions of dollars | United States Pension Benefits | Foreign Pension Benefits | Other Postretirement Benefits | |||||||||||||||||
Current year actuarial loss / (gain) | $ | 145 | $ | (63) | $ | (28) | ||||||||||||||
Actuarial (loss) recognized during the year | (58) | (10) | — | |||||||||||||||||
Current year prior service cost (credit) | — | — | (5) | |||||||||||||||||
Prior service credit (cost) recognized during the year | — | — | 46 | |||||||||||||||||
Total recognized in other comprehensive income (loss) (pre-tax) | $ | 87 | $ | (73) | $ | 13 | ||||||||||||||
Total recognized in net periodic benefit costs and other comprehensive income (loss) (pre-tax) | $ | 86 | $ | (75) | $ | (27) |
United States Pension Benefits | Foreign Pension Benefits (1) | Other Postretirement Benefits | ||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||||
Discount rate | 5.55 | % | 2.85 | % | 4.72 | % | 1.89 | % | 6.05 | % | 3.41 | % | ||||||||||||||||||||||||||
Rate of compensation increase | 4.50 | % | 4.50 | % | 3.52 | % | 3.59 | % | N/A | N/A | ||||||||||||||||||||||||||||
Interest crediting rate for cash balance plans | 4.30 | % | 1.60 | % | 2.85 | % | 2.36 | % | N/A | N/A |
United States Pension Benefits | Foreign Pension Benefits | Other Postretirement Benefits | ||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||
Discount rate | 3.30 | % | 4.30 | % | 2.04 | % | 2.90 | % | 3.45 | % | 4.64 | % | ||||||
Rate of compensation increase | 4.50 | % | 4.50 | % | 3.10 | % | 3.29 | % | N/A | N/A |
United States Pension Benefits | Foreign Pension Benefits (1) | Other Postretirement Benefits | |||||||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2020 | 2022 | 2021 | 2020 | 2022 | 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||||
Discount rate | 2.85% | 2.50% | 3.13% | 1.89% | 1.55% | 2.04% | 4.27% | 3.66% | 3.35% | ||||||||||||||||||||||||||||||||||||||||||||
Expected long-term rate of return on plan assets | 5.50% | 6.00% | 6.25% | 5.23% | 5.48% | 5.39% | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||
Rate of compensation increase | 4.50% | 4.50% | 4.50% | 3.59% | 3.47% | 3.10% | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||
Interest crediting rate for cash balance plans | 1.60% | 1.25% | 2.05% | 2.36% | 1.99% | 1.80% | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||||||||||||||
Health care cost trend rate | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Initial rate | N/A | N/A | N/A | N/A | N/A | N/A | 5.75% | 6.00% | 6.25% | ||||||||||||||||||||||||||||||||||||||||||||
Ultimate rate | N/A | N/A | N/A | N/A | N/A | N/A | 5.00% | 5.00% | 5.00% | ||||||||||||||||||||||||||||||||||||||||||||
Year that ultimate rate will be reached | N/A | N/A | N/A | N/A | N/A | N/A | 2025 | 2025 | 2025 |
United States Pension Benefits | Foreign Pension Benefits | Other Postretirement Benefits | |||||||||||||||||||||||||
2019 | 2018 | 2017 | 2019 | 2018 | 2017 | 2019 | 2018 | 2017 | |||||||||||||||||||
Discount rate | 4.30 | % | 3.65 | % | 4.15 | % | 2.90 | % | 2.57 | % | 2.64 | % | 4.80 | % | 4.35 | % | 4.73 | % | |||||||||
Expected long-term rate of return on plan assets | 6.50 | % | 6.75 | % | 6.75 | % | 5.56 | % | 5.81 | % | 5.78 | % | N/A | N/A | N/A | ||||||||||||
Rate of compensation increase | 4.50 | % | 4.50 | % | 4.50 | % | 3.29 | % | 3.20 | % | 3.08 | % | N/A | N/A | N/A | ||||||||||||
Health care cost trend rate | |||||||||||||||||||||||||||
Initial rate | N/A | N/A | N/A | N/A | N/A | N/A | 6.50 | % | 6.50 | % | 6.75 | % | |||||||||||||||
Ultimate rate | N/A | N/A | N/A | N/A | N/A | N/A | 5.00 | % | 5.00 | % | 5.00 | % | |||||||||||||||
Year that ultimate rate will be reached | N/A | N/A | N/A | N/A | N/A | N/A | 2025 | 2025 | 2025 |
Millions of dollars | One Percentage Point Increase | One Percentage Point Decrease | ||||||
Effect on total of service and interest cost | $ | — | $ | — | ||||
Effect on postretirement benefit obligations | 3 | (2 | ) |
Millions of dollars | United States Pension Benefits | Foreign Pension Benefits | ||||||
2020 | $ | — | $ | 18 |
Millions of dollars | United States Pension Benefits | Foreign Pension Benefits | ||||||||||||
2023 | $ | — | $ | 18 |
Millions of dollars | United States Pension Benefits | Foreign Pension Benefits | Other Postretirement Benefits | |||||||||
2020 | $ | 284 | $ | 39 | $ | 33 | ||||||
2021 | 257 | 35 | 33 | |||||||||
2022 | 248 | 38 | 32 | |||||||||
2023 | 238 | 38 | 30 | |||||||||
2024 | 233 | 36 | 28 | |||||||||
2025-2029 | 1,019 | 199 | 115 |
Millions of dollars | United States Pension Benefits | Foreign Pension Benefits | Other Postretirement Benefits | |||||||||||||||||
2023 | $ | 274 | $ | 34 | $ | 25 | ||||||||||||||
2024 | 218 | 6 | 12 | |||||||||||||||||
2025 | 211 | 8 | 11 | |||||||||||||||||
2026 | 206 | 6 | 9 | |||||||||||||||||
2027 | 200 | 9 | 9 | |||||||||||||||||
2028-2032 | $ | 873 | $ | 26 | $ | 40 |
December 31, | |||||||||||||||||||||||||||||||||||||||||||||||
Quoted prices (Level 1) | Other significant observable inputs (Level 2) | Significant unobservable inputs (Level 3) | Net Asset Value | Total | |||||||||||||||||||||||||||||||||||||||||||
Millions of dollars | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | — | $ | 159 | $ | 162 | $ | — | $ | — | $ | — | $ | — | $ | 159 | $ | 162 | |||||||||||||||||||||||||||
Government and government agency securities (1) | |||||||||||||||||||||||||||||||||||||||||||||||
U.S. securities | — | — | 82 | 264 | — | — | — | — | 82 | 264 | |||||||||||||||||||||||||||||||||||||
International securities | — | — | 42 | 92 | — | — | — | — | 42 | 92 | |||||||||||||||||||||||||||||||||||||
Corporate bonds and notes (1) | |||||||||||||||||||||||||||||||||||||||||||||||
U.S. companies | — | — | 1,194 | 1,585 | — | — | — | — | 1,194 | 1,585 | |||||||||||||||||||||||||||||||||||||
International companies | — | — | 187 | 286 | — | — | — | — | 187 | 286 | |||||||||||||||||||||||||||||||||||||
Equity securities (2) | |||||||||||||||||||||||||||||||||||||||||||||||
U.S. companies | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
International companies | 11 | 36 | — | — | — | — | — | — | 11 | 36 | |||||||||||||||||||||||||||||||||||||
Mutual funds (3) | — | — | 73 | 103 | — | — | — | — | 73 | 103 | |||||||||||||||||||||||||||||||||||||
Investments at net asset value | |||||||||||||||||||||||||||||||||||||||||||||||
U.S. equity securities (4) | — | — | — | — | — | — | 166 | 308 | 166 | 308 | |||||||||||||||||||||||||||||||||||||
International equity securities (4) | — | — | — | — | — | — | 123 | 177 | 123 | 177 | |||||||||||||||||||||||||||||||||||||
Short-term investment fund (4) | — | — | — | — | — | — | — | 43 | — | 43 | |||||||||||||||||||||||||||||||||||||
International debt securities (5) | — | — | — | — | — | — | — | 178 | — | 178 | |||||||||||||||||||||||||||||||||||||
International equity securities (5) | — | — | — | — | — | — | — | 62 | — | 62 | |||||||||||||||||||||||||||||||||||||
Real estate (6) | — | — | — | — | — | — | — | 55 | — | 55 | |||||||||||||||||||||||||||||||||||||
Limited partnerships (7) | |||||||||||||||||||||||||||||||||||||||||||||||
U.S. private equity investments | — | — | — | — | 17 | 26 | — | — | 17 | 26 | |||||||||||||||||||||||||||||||||||||
Diversified fund of funds | — | — | — | — | 1 | 3 | — | — | 1 | 3 | |||||||||||||||||||||||||||||||||||||
Emerging growth | — | — | — | — | 2 | 3 | — | — | 2 | 3 | |||||||||||||||||||||||||||||||||||||
All other investments | — | — | 45 | 29 | — | — | — | 157 | 45 | 186 | |||||||||||||||||||||||||||||||||||||
$ | 11 | $ | 36 | $ | 1,782 | $ | 2,521 | $ | 20 | $ | 32 | $ | 289 | $ | 980 | $ | 2,102 | $ | 3,569 |
December 31, | |||||||||||||||||||||||||||||||||||
Quoted prices (Level 1) | Other significant observable inputs (Level 2) | Significant unobservable inputs (Level 3) | Net Asset Value | Total | |||||||||||||||||||||||||||||||
Millions of dollars | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | — | $ | 24 | $ | 10 | $ | — | $ | — | $ | — | $ | — | $ | 24 | $ | 10 | |||||||||||||||
Government and government agency securities (1) | |||||||||||||||||||||||||||||||||||
U.S. securities | — | — | 488 | 761 | — | — | — | — | 488 | 761 | |||||||||||||||||||||||||
International securities | — | — | 97 | 97 | — | — | — | — | 97 | 97 | |||||||||||||||||||||||||
Corporate bonds and notes (1) | |||||||||||||||||||||||||||||||||||
U.S. companies | — | — | 1,389 | 860 | — | — | — | — | 1,389 | 860 | |||||||||||||||||||||||||
International companies | — | — | 277 | 155 | — | — | — | — | 277 | 155 | |||||||||||||||||||||||||
Equity securities (2) | |||||||||||||||||||||||||||||||||||
U.S. companies | — | 18 | — | — | — | — | — | — | — | 18 | |||||||||||||||||||||||||
International companies | 51 | 185 | — | — | — | — | — | — | 51 | 185 | |||||||||||||||||||||||||
Mutual funds (3) | — | 35 | 128 | — | — | — | — | — | 128 | 35 | |||||||||||||||||||||||||
Investments at net asset value | |||||||||||||||||||||||||||||||||||
U.S. equity securities (4) | — | — | — | — | — | — | 367 | 501 | 367 | 501 | |||||||||||||||||||||||||
International equity securities (4) | — | — | — | — | — | — | 215 | 52 | 215 | 52 | |||||||||||||||||||||||||
Short-term investment fund (4) | — | — | — | — | — | — | 15 | 102 | 15 | 102 | |||||||||||||||||||||||||
International debt securities (5) | — | — | — | — | — | — | 251 | 209 | 251 | 209 | |||||||||||||||||||||||||
International equity securities (5) | — | — | — | — | — | — | 59 | 50 | 59 | 50 | |||||||||||||||||||||||||
Real estate (6) | — | — | — | — | — | — | 34 | 36 | 34 | 36 | |||||||||||||||||||||||||
Limited partnerships (7) | |||||||||||||||||||||||||||||||||||
U.S. private equity investments | — | — | — | — | 53 | 68 | — | — | 53 | 68 | |||||||||||||||||||||||||
Diversified fund of funds | — | — | — | — | 5 | 6 | — | — | 5 | 6 | |||||||||||||||||||||||||
Emerging growth | — | — | — | — | 8 | 12 | — | — | 8 | 12 | |||||||||||||||||||||||||
All other investments | — | — | 34 | 18 | — | — | 32 | 19 | 66 | 37 | |||||||||||||||||||||||||
$ | 51 | $ | 238 | $ | 2,437 | $ | 1,901 | $ | 66 | $ | 86 | $ | 973 | $ | 969 | $ | 3,527 | $ | 3,194 |
Millions of dollars | Limited Partnerships | |||
Balance, December 31, 2018 | $ | 86 | ||
Realized gains (net) | 16 | |||
Unrealized losses (net) | (14 | ) | ||
Purchases | — | |||
Settlements | (22 | ) | ||
Balance, December 31, 2019 | $ | 66 |
Millions of dollars | Limited Partnerships | |||||||
Balance, December 31, 2021 | $ | 32 | ||||||
Realized gain / (loss) (net) | 2 | |||||||
Unrealized gain / (loss) (net) | (6) | |||||||
Purchases | — | |||||||
Settlements | (8) | |||||||
Balance, December 31, 2022 | $ | 20 |
United States Pension Benefits | Foreign Pension Benefits | |||||||||||||||
Millions of dollars | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Projected benefit obligation | $ | 2,622 | $ | 3,033 | $ | 844 | $ | 753 | ||||||||
Fair value of plan assets | 2,409 | 2,676 | 491 | 430 |
United States Pension Benefits | Foreign Pension Benefits | |||||||||||||||||||||||||
Millions of dollars | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
Projected benefit obligation | $ | 1,866 | $ | 2,507 | $ | 37 | $ | 851 | ||||||||||||||||||
Fair value of plan assets | $ | 1,706 | $ | 2,386 | $ | (1) | $ | 578 |
United States Pension Benefits | Foreign Pension Benefits | |||||||||||||||||||||||||
Millions of dollars | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
Projected benefit obligation | $ | 1,866 | $ | 2,507 | $ | 37 | $ | 851 | ||||||||||||||||||
Accumulated benefit obligation | 1,860 | 2,494 | 34 | 831 | ||||||||||||||||||||||
Fair value of plan assets | $ | 1,706 | $ | 2,386 | $ | (1) | $ | 578 |
United States Pension Benefits | Foreign Pension Benefits | |||||||||||||||
Millions of dollars | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Projected benefit obligation | $ | 2,622 | $ | 3,033 | $ | 800 | $ | 720 | ||||||||
Accumulated benefit obligation | 2,609 | 3,022 | 776 | 699 | ||||||||||||
Fair value of plan assets | $ | 2,409 | $ | 2,676 | $ | 450 | $ | 396 |
Notional (local) | Notional (USD) | Current Maturity | ||||||||||||||
Instrument | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Senior note - 0.625% | € | 500 | € | 500 | $ | 561 | $ | 573 | March 2020 | |||||||
Foreign exchange forwards/options | MXN 7,200 | MXN 7,200 | $ | 382 | $ | 366 | August 2022 |
Notional (local) | Notional (USD) | Current Maturity | ||||||||||||||||||||||||
Instrument | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
Foreign exchange forwards/options | MXN | — | MXN | 7,200 | $ | — | $ | 352 | N/A |
Fair Value of | Type of Hedge (1) | |||||||||||||||||||||||||||||
Notional Amount | Hedge Assets | Hedge Liabilities | Maximum Term (Months) | |||||||||||||||||||||||||||
Millions of dollars | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||||
Derivatives accounted for as hedges | ||||||||||||||||||||||||||||||
Commodity swaps/options | $ | 174 | $ | 216 | $ | 4 | $ | 1 | $ | 10 | $ | 27 | (CF) | 21 | 30 | |||||||||||||||
Foreign exchange forwards/options | 3,177 | 3,126 | 94 | 49 | 84 | 48 | (CF/NI) | 32 | 44 | |||||||||||||||||||||
Cross-currency swaps | 1,275 | — | 25 | — | 23 | — | (CF) | 110 | 0 | |||||||||||||||||||||
Interest rate derivatives | 300 | — | 6 | — | — | — | (CF) | 65 | 0 | |||||||||||||||||||||
Total derivatives accounted for as hedges | $ | 129 | $ | 50 | $ | 117 | $ | 75 | ||||||||||||||||||||||
Derivatives not accounted for as hedges | ||||||||||||||||||||||||||||||
Commodity swaps/options | $ | 1 | $ | 3 | $ | — | $ | — | $ | — | $ | — | N/A | 7 | 0 | |||||||||||||||
Foreign exchange forwards/options | 3,182 | 4,382 | 15 | 27 | 22 | 69 | N/A | 12 | 21 | |||||||||||||||||||||
Total derivatives not accounted for as hedges | $ | 15 | $ | 27 | $ | 22 | $ | 69 | ||||||||||||||||||||||
Total derivatives | $ | 144 | $ | 77 | $ | 139 | $ | 144 | ||||||||||||||||||||||
Current | $ | 55 | $ | 60 | $ | 61 | $ | 95 | ||||||||||||||||||||||
Noncurrent | 89 | 17 | 78 | 49 | ||||||||||||||||||||||||||
Total derivatives | $ | 144 | $ | 77 | $ | 139 | $ | 144 |
Fair Value of | Type of Hedge | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notional Amount | Hedge Assets | Hedge Liabilities | Maximum Term (Months) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Millions of dollars | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives accounted for as hedges(1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commodity swaps/options | $ | 170 | $ | 297 | $ | 7 | $ | 40 | $ | 17 | $ | 13 | (CF) | 24 | 21 | |||||||||||||||||||||||||||||||||||||||||
Foreign exchange forwards/options(2) | 998 | 2,872 | 24 | 91 | 20 | 64 | (CF/NI) | 15 | 122 | |||||||||||||||||||||||||||||||||||||||||||||||
Cross-currency swaps | 618 | 1,275 | 5 | 31 | 42 | 7 | (CF) | 74 | 86 | |||||||||||||||||||||||||||||||||||||||||||||||
Interest rate derivatives | — | 300 | — | — | — | 14 | (CF) | 0 | 41 | |||||||||||||||||||||||||||||||||||||||||||||||
Total derivatives accounted for as hedges | $ | 36 | $ | 162 | $ | 79 | $ | 98 | ||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives not accounted for as hedges | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commodity swaps/options | $ | 1 | $ | 2 | $ | — | $ | — | $ | — | $ | — | N/A | 0 | 14 | |||||||||||||||||||||||||||||||||||||||||
Foreign exchange forwards/options(2) | 439 | 2,240 | 5 | 20 | 6 | 18 | N/A | 5 | 12 | |||||||||||||||||||||||||||||||||||||||||||||||
Total derivatives not accounted for as hedges | $ | 5 | $ | 20 | $ | 6 | $ | 18 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total derivatives | $ | 41 | $ | 182 | $ | 85 | $ | 116 | ||||||||||||||||||||||||||||||||||||||||||||||||
Current | $ | 40 | $ | 170 | $ | 41 | $ | 93 | ||||||||||||||||||||||||||||||||||||||||||||||||
Noncurrent | 1 | 12 | 44 | 23 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total derivatives | $ | 41 | $ | 182 | $ | 85 | $ | 116 |
Gain (Loss) Recognized in OCI (Effective Portion) (3) | ||||||||||||||||||||||||||||||
Gain (Loss) Recognized in OCI (Effective Portion) (2) | ||||||||||||||||||||||||||||||
Cash Flow Hedges - Millions of dollars | 2019 | 2018 | ||||||||||||||||||||||||||||
Millions of dollars | Millions of dollars | 2022 | 2021 | |||||||||||||||||||||||||||
Cash flow hedges | Cash flow hedges | |||||||||||||||||||||||||||||
Commodity swaps/options | $ | (4 | ) | $ | (51 | ) | Commodity swaps/options | $ | (3) | $ | 66 | |||||||||||||||||||
Foreign exchange forwards/options | 60 | 131 | Foreign exchange forwards/options | 113 | 92 | |||||||||||||||||||||||||
Cross-currency swaps | 9 | — | Cross-currency swaps | (47) | 110 | |||||||||||||||||||||||||
Interest rate derivatives | 6 | (3 | ) | Interest rate derivatives | 56 | 14 | ||||||||||||||||||||||||
Net Investment Hedges | ||||||||||||||||||||||||||||||
Net investment hedges | Net investment hedges | |||||||||||||||||||||||||||||
Foreign currency | 5 | 23 | Foreign currency | (26) | 1 | |||||||||||||||||||||||||
$ | 76 | $ | 100 | $ | 93 | $ | 283 | |||||||||||||||||||||||
Location of Gain (Loss) Reclassified from OCI into Earnings (Effective Portion) | Gain (Loss) Reclassified from OCI into Earnings (Effective Portion) | Location of Gain (Loss) Reclassified from OCI into Earnings (Effective Portion) | Gain (Loss) Reclassified from OCI into Earnings (Effective Portion)(3),(4),(5) | |||||||||||||||||||||||||||
Cash Flow Hedges - Millions of dollars | 2019 | 2018 | Cash Flow Hedges - Millions of dollars | 2022 | 2021 | |||||||||||||||||||||||||
Commodity swaps/options (3) | Cost of products sold | $ | (22 | ) | $ | 22 | Commodity swaps/options (3) | Cost of products sold | $ | 39 | $ | 68 | ||||||||||||||||||
Foreign exchange forwards/options | Net sales | (4 | ) | (3 | ) | Foreign exchange forwards/options | Net sales | — | 2 | |||||||||||||||||||||
Foreign exchange forwards/options | Cost of products sold | 16 | (5 | ) | Foreign exchange forwards/options | Cost of products sold | (26) | (3) | ||||||||||||||||||||||
Foreign exchange forwards/options | Interest and sundry (income) expense | 73 | 94 | Foreign exchange forwards/options | Interest and sundry (income) expense | 130 | 71 | |||||||||||||||||||||||
Cross-currency swaps | Interest and sundry (income) expense | 26 | — | Interest and sundry (income) expense | (50) | 117 | ||||||||||||||||||||||||
Interest rate derivatives | Interest expense | (1 | ) | (1 | ) | |||||||||||||||||||||||||
$ | 88 | $ | 107 | $ | 93 | $ | 255 | |||||||||||||||||||||||
Location of Gain (Loss) Recognized on Derivatives not Accounted for as Hedges | Gain (Loss) Recognized on Derivatives not Accounted for as Hedges (3) | Location of Gain (Loss) Recognized on Derivatives not Accounted for as Hedges | Gain (Loss) Recognized on Derivatives not Accounted for as Hedges (3) | |||||||||||||||||||||||||||
Derivatives not Accounted for as Hedges - Millions of dollars | 2019 | 2018 | Derivatives not Accounted for as Hedges - Millions of dollars | 2022 | 2021 | |||||||||||||||||||||||||
Foreign exchange forwards/options | Interest and sundry (income) expense | $ | 30 | $ | 19 | Foreign exchange forwards/options | Interest and sundry (income) expense | $ | (24) | $ | 74 |
Total Cost Basis | Quoted Prices In Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Total Fair Value | Total Cost Basis | Quoted Prices In Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Total Fair Value | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Millions of dollars | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | Millions of dollars | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term investments (1) | $ | 1,308 | $ | 578 | $ | 398 | $ | 5 | $ | 910 | $ | 573 | $ | 1,308 | $ | 578 | Short-term investments (1) | $ | 1,209 | $ | 1,905 | $ | 934 | $ | 1,697 | $ | 275 | $ | 208 | $ | 1,209 | $ | 1,905 | |||||||||||||||||||||||||||||||||||||||||||||||||
Net derivative contracts | — | — | — | — | 5 | (67 | ) | 5 | (67 | ) | Net derivative contracts | — | — | — | — | (44) | 66 | (44) | 66 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Available for sale investments | — | 7 | — | 12 | — | — | — | 12 |
Fair Value | |||
Millions of dollars | Level 3 | ||
Measured at fair value on a non-recurring basis: | 2018 | ||
Assets: | |||
Goodwill (2) | $ | 315 | |
Indefinite-lived intangible assets (3) | 384 | ||
Definite-lived intangible assets (4) | — | ||
Total level 3 assets | $ | 699 |
Millions of dollars | Foreign Currency | Derivative Instruments | Pension and Postretirement Liability | Total | |||||||||||||||||||||||||
December 31, 2019 | $ | (1,532) | $ | (46) | $ | (1,040) | $ | (2,618) | |||||||||||||||||||||
Unrealized gain (loss) | (385) | 83 | — | (302) | |||||||||||||||||||||||||
Unrealized actuarial gain(loss) and prior service credit (cost) | — | — | 171 | 171 | |||||||||||||||||||||||||
Tax effect | 1 | (16) | (45) | (60) | |||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | (384) | 67 | 126 | (191) | |||||||||||||||||||||||||
Less: Other comprehensive loss available to noncontrolling interests | 2 | — | — | 2 | |||||||||||||||||||||||||
Other comprehensive income (loss) available to Whirlpool | (386) | 67 | 126 | (193) | |||||||||||||||||||||||||
December 31, 2020 | $ | (1,918) | $ | 21 | $ | (914) | $ | (2,811) | |||||||||||||||||||||
Unrealized gain (loss) | 364 | 27 | — | 391 | |||||||||||||||||||||||||
Unrealized actuarial gain (loss) and prior service credit (cost) | — | — | 104 | 104 | |||||||||||||||||||||||||
Tax effect | (1) | (14) | (26) | (41) | |||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | 363 | 13 | 78 | 454 | |||||||||||||||||||||||||
Less: Other comprehensive loss available to noncontrolling interests | — | — | — | — | |||||||||||||||||||||||||
Other comprehensive income (loss) available to Whirlpool | 363 | 13 | 78 | 454 | |||||||||||||||||||||||||
December 31, 2021 | $ | (1,555) | $ | 34 | $ | (836) | $ | (2,357) | |||||||||||||||||||||
Unrealized gain (loss) | 280 | 26 | — | 306 | |||||||||||||||||||||||||
Unrealized actuarial gain (loss) and prior service credit (cost) | — | — | (27) | (27) | |||||||||||||||||||||||||
Tax effect | — | (2) | (10) | (12) | |||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | 280 | 24 | (37) | 267 | |||||||||||||||||||||||||
Less: Other comprehensive loss available to noncontrolling interests | — | — | — | — | |||||||||||||||||||||||||
Other comprehensive income (loss) available to Whirlpool | 280 | 24 | (37) | 267 | |||||||||||||||||||||||||
December 31, 2022 | $ | (1,275) | $ | 58 | $ | (873) | $ | (2,090) |
Millions of dollars | Foreign Currency | Derivative Instruments | Pension and Postretirement Liability | Marketable Securities | Total | ||||||||||||||
December 31, 2016 | $ | (1,395 | ) | $ | 15 | $ | (1,031 | ) | $ | 11 | (2,400 | ) | |||||||
Unrealized gain (loss) | 32 | (4 | ) | — | 6 | 34 | |||||||||||||
Unrealized actuarial gain(loss) and prior service credit (cost) | — | — | (15 | ) | — | (15 | ) | ||||||||||||
Tax effect | 43 | — | 7 | — | 50 | ||||||||||||||
Other comprehensive income (loss), net of tax | 75 | (4 | ) | (8 | ) | 6 | 69 | ||||||||||||
Less: Other comprehensive loss available to noncontrolling interests | — | — | — | — | — | ||||||||||||||
Other comprehensive income (loss) available to Whirlpool | 75 | (4 | ) | (8 | ) | 6 | 69 | ||||||||||||
December 31, 2017 | $ | (1,320 | ) | $ | 11 | $ | (1,039 | ) | $ | 17 | $ | (2,331 | ) | ||||||
Unrealized gain (loss) | (272 | ) | (30 | ) | — | — | (302 | ) | |||||||||||
Unrealized actuarial gain (loss) and prior service credit (cost) | — | — | (48 | ) | — | (48 | ) | ||||||||||||
Tax effect | (15 | ) | 7 | 13 | — | 5 | |||||||||||||
Other comprehensive income (loss), net of tax | (287 | ) | (23 | ) | (35 | ) | — | (345 | ) | ||||||||||
Less: Other comprehensive loss available to noncontrolling interests | 2 | — | — | — | 2 | ||||||||||||||
Other comprehensive income (loss) available to Whirlpool | (289 | ) | (23 | ) | (35 | ) | — | (347 | ) | ||||||||||
Adjustment to beginning accumulated other comprehensive loss | 21 | (21 | ) | — | (17 | ) | (17 | ) | |||||||||||
December 31, 2018 | $ | (1,588 | ) | $ | (33 | ) | $ | (1,074 | ) | $ | — | $ | (2,695 | ) | |||||
Unrealized gain (loss) | 54 | (17 | ) | — | — | 37 | |||||||||||||
Unrealized actuarial gain (loss) and prior service credit (cost) | — | — | 52 | — | 52 | ||||||||||||||
Tax effect | 2 | 4 | (18 | ) | — | (12 | ) | ||||||||||||
Other comprehensive income (loss), net of tax | 56 | (13 | ) | 34 | — | 77 | |||||||||||||
Less: Other comprehensive loss available to noncontrolling interests | — | — | — | — | — | ||||||||||||||
Other comprehensive income (loss) available to Whirlpool | 56 | (13 | ) | 34 | — | 77 | |||||||||||||
December 31, 2019 | $ | (1,532 | ) | $ | (46 | ) | $ | (1,040 | ) | $ | — | $ | (2,618 | ) |
Millions of dollars and shares | 2019 | 2018 | 2017 | |||||||||
Numerator for basic and diluted earnings per share – net earnings (loss) available to Whirlpool | $ | 1,184 | $ | (183 | ) | $ | 350 | |||||
Denominator for basic earnings per share – weighted-average shares | 63.7 | 67.2 | 73.3 | |||||||||
Effect of dilutive securities – stock-based compensation | 0.5 | — | 1.1 | |||||||||
Denominator for diluted earnings per share – adjusted weighted-average shares | 64.2 | 67.2 | 74.4 | |||||||||
Anti-dilutive stock options/awards excluded from earnings per share | 1.3 | 1.9 | 0.6 |
Millions of dollars and shares | 2022 | 2021 | 2020 | |||||||||||||||||
Numerator for basic and diluted earnings per share – net earnings (loss) available to Whirlpool | $ | (1,519) | $ | 1,783 | $ | 1,075 | ||||||||||||||
Denominator for basic earnings per share – weighted-average shares | 55.9 | 62.1 | 62.7 | |||||||||||||||||
Effect of dilutive securities – stock-based compensation | — | 0.8 | 0.6 | |||||||||||||||||
Denominator for diluted earnings per share – adjusted weighted-average shares | 55.9 | 62.9 | 63.3 | |||||||||||||||||
Anti-dilutive stock options/awards excluded from earnings per share | 0.6 | 0.1 | 1.3 |
Weighted Average Black-Scholes Assumptions | 2019 | 2018 | 2017 | ||||||
Risk-free interest rate | 2.5 | % | 2.6 | % | 1.9 | % | |||
Expected volatility | 28.5 | % | 28.2 | % | 32.0 | % | |||
Expected dividend yield | 3.4 | % | 2.6 | % | 2.3 | % | |||
Expected option life, in years | 5 | 5 | 5 |
Weighted Average Black-Scholes Assumptions | 2022 | 2021 | 2020 | |||||||||||||||||
Risk-free interest rate | 1.9 | % | 0.5 | % | 1.4 | % | ||||||||||||||
Expected volatility | 37.4 | % | 37.7 | % | 29.3 | % | ||||||||||||||
Expected dividend yield | 2.9 | % | 2.5 | % | 3.2 | % | ||||||||||||||
Expected option life, in years | 5 | 5 | 5 |
In thousands, except per share data | Number of Options | Weighted- Average Exercise Price | |||||
Outstanding at January 1 | 2,291 | $ | 144.21 | ||||
Granted | 256 | $ | 139.24 | ||||
Exercised | (85 | ) | $ | 100.84 | |||
Canceled or expired | (75 | ) | $ | 173.22 | |||
Outstanding at December 31 | 2,387 | $ | 144.01 | ||||
Exercisable at December 31 | 1,861 | $ | 140.60 |
In thousands, except per share data | Number of Options | Weighted- Average Exercise Price | ||||||||||||
Outstanding at January 1 | 844 | $ | 173.08 | |||||||||||
Granted | 183 | 196.62 | ||||||||||||
Exercised | (28) | 129.22 | ||||||||||||
Canceled or expired | (16) | 182.63 | ||||||||||||
Outstanding at December 31 | 983 | $ | 178.57 | |||||||||||
Exercisable at December 31 | 629 | $ | 173.21 |
Options in thousands / dollars in millions, except per-share data | Outstanding Net of Expected Forfeitures | Options Exercisable | ||||||
Number of options | 2,274 | 1,861 | ||||||
Weighted-average exercise price per share | $ | 144.32 | $ | 140.60 | ||||
Aggregate intrinsic value | $ | 42 | $ | 42 | ||||
Weighted-average remaining contractual term, in years | 5 | 4 |
Options in thousands / dollars in millions, except per-share data | Outstanding Net of Expected Forfeitures | Options Exercisable | ||||||||||||
Number of options | 976 | 629 | ||||||||||||
Weighted-average exercise price per share | $ | 178.46 | $ | 173.21 | ||||||||||
Aggregate intrinsic value | $ | 1 | $ | 1 | ||||||||||
Weighted-average remaining contractual term, in years | 6 | 4 |
Stock units in thousands, except per-share data | Number of Stock Units | Weighted- Average Grant Date Fair Value | |||||
Non-vested, at January 1 | 728 | $ | 150.63 | ||||
Granted | 394 | $ | 127.26 | ||||
Canceled | (88 | ) | $ | 143.58 | |||
Vested and transferred to unrestricted | (229 | ) | $ | 138.40 | |||
Non-vested, at December 31 | 805 | $ | 144.48 |
Stock units in thousands, except per-share data | Number of Stock Units | Weighted- Average Grant Date Fair Value | ||||||||||||
Non-vested, at January 1 | 1,022 | $ | 155.92 | |||||||||||
Granted | 561 | 158.27 | ||||||||||||
Canceled | (59) | 172.21 | ||||||||||||
Vested and transferred to unrestricted | (361) | 133.53 | ||||||||||||
Non-vested, at December 31 | 1,163 | $ | 161.51 |
Millions of dollars | 2019 | Total | ||||
Indesit | $ | 9 | $ | 237 | ||
EMEA fixed cost actions | 63 | 77 | ||||
Naples | 54 | 54 |
Millions of dollars | 12/31/2018 | Charges to Earnings | Cash Paid | Non-Cash and Other | 12/31/2019 | ||||||||||
Employee termination costs | $ | 84 | $ | 84 | $ | (111 | ) | $ | — | $ | 57 | ||||
Asset impairment costs | — | 74 | (7 | ) | (59 | ) | 8 | ||||||||
Facility exit costs | (9 | ) | 22 | (23 | ) | — | (10 | ) | |||||||
Other exit costs | 21 | 8 | (5 | ) | (2 | ) | 22 | ||||||||
Total | $ | 96 | $ | 188 | $ | (146 | ) | $ | (61 | ) | $ | 77 |
Millions of dollars | 12/31/2017 | Charge to Earnings | Cash Paid | Non-cash and Other | 12/31/2018 | ||||||||||
Employee termination costs | $ | 131 | $ | 155 | $ | (202 | ) | $ | — | $ | 84 | ||||
Asset impairment costs | — | 43 | — | (43 | ) | — | |||||||||
Facility exit costs | 2 | 41 | (52 | ) | — | (9 | ) | ||||||||
Other exit costs | 29 | 8 | (11 | ) | (5 | ) | 21 | ||||||||
Total | $ | 162 | $ | 247 | $ | (265 | ) | $ | (48 | ) | $ | 96 |
Millions of dollars | 2019 Charges | ||
North America | $ | — | |
EMEA | 177 | ||
Latin America | 11 | ||
Asia | — | ||
Corporate / Other | — | ||
Total | $ | 188 |
Millions of Dollars | December 31, 2021 | Charge to Earnings | Cash Paid | Non-Cash and Other | December 31, 2022 | ||||||||||||
Employee Termination | $ | 53 | $ | 7 | $ | (34) | $ | — | $ | 26 | |||||||
Asset Impairment | 8 | 9 | — | (12) | $ | 5 | |||||||||||
Facility exit costs | — | 2 | (2) | — | $ | — | |||||||||||
Other exit costs | (4) | 3 | (4) | — | $ | (5) | |||||||||||
Total | $ | 57 | $ | 21 | $ | (40) | $ | (12) | $ | 26 |
Millions of dollars | December 31, 2020 | Charge to Earnings | Cash Paid | Non-cash and Other | December 31, 2021 | ||||||||||||
Employee termination costs | $ | 145 | $ | 30 | $ | (122) | $ | — | $ | 53 | |||||||
Asset impairment costs | 8 | 1 | — | (1) | 8 | ||||||||||||
Facility exit costs | — | 2 | (2) | — | — | ||||||||||||
Other exit costs | 20 | 5 | (22) | (7) | (4) | ||||||||||||
Total | $ | 173 | $ | 38 | $ | (146) | $ | (8) | $ | 57 |
Millions of dollars | 2022 Charges | 2021 Charges | 2020 Charges | ||||||||
North America | $ | — | $ | — | $ | 81 | |||||
EMEA | 23 | 38 | 154 | ||||||||
Latin America | (2) | — | 20 | ||||||||
Asia | — | — | 10 | ||||||||
Corporate / Other | — | — | 23 | ||||||||
Total | $ | 21 | $ | 38 | $ | 288 |
Millions of dollars | 2019 | 2018 | 2017 | |||||||||
Earnings (loss) before income taxes | ||||||||||||
United States | $ | 674 | $ | 729 | $ | 671 | ||||||
Foreign | 878 | (750 | ) | 216 | ||||||||
Earnings (loss) before income taxes | $ | 1,552 | $ | (21 | ) | $ | 887 | |||||
Income tax (benefit) expense computed at United States statutory rate | $ | 326 | $ | (4 | ) | $ | 310 | |||||
U.S. government tax incentives | (21 | ) | (11 | ) | (13 | ) | ||||||
Foreign government tax incentives, including BEFIEX | (13 | ) | (21 | ) | (29 | ) | ||||||
Foreign tax rate differential | 70 | (24 | ) | (14 | ) | |||||||
U.S. foreign tax credits | (86 | ) | (260 | ) | 17 | |||||||
Valuation allowances | (150 | ) | 75 | (68 | ) | |||||||
State and local taxes, net of federal tax benefit | 42 | 23 | 29 | |||||||||
Foreign withholding taxes | 54 | 24 | 41 | |||||||||
U.S. tax on foreign dividends and subpart F income | 67 | 72 | 12 | |||||||||
Settlements and changes in unrecognized tax benefits | 113 | 72 | 48 | |||||||||
U.S. Transition Tax | 26 | 40 | 190 | |||||||||
Changes in enacted tax rates | 42 | (54 | ) | 49 | ||||||||
Nondeductible goodwill | — | 139 | — | |||||||||
Nondeductible fines & penalties | — | 30 | — | |||||||||
Sale of Embraco | 58 | — | — | |||||||||
Legal entity merger tax impact | (147 | ) | — | — | ||||||||
Other items, net | (27 | ) | 37 | (22 | ) | |||||||
Income tax computed at effective worldwide tax rates | $ | 354 | $ | 138 | $ | 550 |
Millions of dollars | 2022 | 2021 | 2020 | |||||||||||||||||
Earnings (loss) before income taxes | ||||||||||||||||||||
United States | $ | (158) | $ | 1,287 | $ | 1,020 | ||||||||||||||
Foreign | (1,069) | 1,045 | 427 | |||||||||||||||||
Earnings (loss) before income taxes | $ | (1,227) | $ | 2,332 | $ | 1,447 | ||||||||||||||
Income tax (benefit) expense computed at United States statutory rate | $ | (258) | $ | 490 | $ | 304 | ||||||||||||||
U.S. government tax incentives | (19) | (19) | (17) | |||||||||||||||||
Foreign government tax incentives | (23) | (23) | (20) | |||||||||||||||||
Foreign tax rate differential | (3) | 66 | 30 | |||||||||||||||||
U.S. foreign tax credits | 11 | (29) | (25) | |||||||||||||||||
Valuation allowances | 222 | 1 | 15 | |||||||||||||||||
State and local taxes, net of federal tax benefit | (21) | 57 | 40 | |||||||||||||||||
Foreign withholding taxes | 52 | 19 | 8 | |||||||||||||||||
U.S. tax on foreign dividends and subpart F income | 22 | 9 | 34 | |||||||||||||||||
Settlements and changes in unrecognized tax benefits | 3 | 100 | 50 | |||||||||||||||||
Changes in enacted tax rates | (2) | (14) | (6) | |||||||||||||||||
Nondeductible loss on sale and disposal of businesses | 421 | — | — | |||||||||||||||||
Nondeductible goodwill impairments | 59 | — | — | |||||||||||||||||
Legal Entity Debt Restructuring | (159) | — | — | |||||||||||||||||
Divestiture tax impact | — | (35) | — | |||||||||||||||||
Legal entity restructuring tax impact | — | (98) | (82) | |||||||||||||||||
Other items, net | (40) | (6) | 51 | |||||||||||||||||
Income tax computed at effective worldwide tax rates | $ | 265 | $ | 518 | $ | 382 |
2019 | 2018 | 2017 | 2022 | 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Millions of dollars | Current | Deferred | Current | Deferred | Current | Deferred | Millions of dollars | Current | Deferred | Current | Deferred | Current | Deferred | |||||||||||||||||||||||||||||||||||||||||||||
United States | $ | 203 | $ | 74 | $ | (70 | ) | $ | 120 | $ | 138 | $ | 386 | United States | $ | (40) | $ | 65 | $ | 132 | $ | 251 | $ | 90 | $ | 81 | ||||||||||||||||||||||||||||||||
Foreign | 432 | (406 | ) | 182 | (119 | ) | 213 | (233 | ) | Foreign | 180 | 85 | 184 | (126) | 182 | (24) | ||||||||||||||||||||||||||||||||||||||||||
State and local | 42 | 9 | 12 | 13 | 12 | 34 | State and local | (9) | (16) | 80 | (3) | 42 | 11 | |||||||||||||||||||||||||||||||||||||||||||||
$ | 677 | $ | (323 | ) | $ | 124 | $ | 14 | $ | 363 | $ | 187 | $ | 131 | $ | 134 | $ | 396 | $ | 122 | $ | 314 | $ | 68 | ||||||||||||||||||||||||||||||||||
Total income tax expense | $ | 354 | $ | 138 | $ | 550 | Total income tax expense | $ | 265 | $ | 518 | $ | 382 |
Millions of dollars | 2022 | 2021 | ||||||||||||
Deferred tax liabilities | ||||||||||||||
Intangibles | $ | 329 | $ | 404 | ||||||||||
Property, net | 185 | 181 | ||||||||||||
Right of use assets | 220 | 245 | ||||||||||||
Inventory Reserves | 20 | 41 | ||||||||||||
Other | 168 | 207 | ||||||||||||
Total deferred tax liabilities | $ | 922 | $ | 1,078 | ||||||||||
Deferred tax assets | ||||||||||||||
U.S. general business credit carryforwards, including Energy Tax Credits | $ | 421 | $ | 386 | ||||||||||
Lease liabilities | 231 | 255 | ||||||||||||
Pensions | 40 | 70 | ||||||||||||
Loss carryforwards | 1,300 | 1,347 | ||||||||||||
Postretirement obligations | 30 | 41 | ||||||||||||
Foreign tax credit carryforwards | 9 | 33 | ||||||||||||
Research and development capitalization | 194 | 130 | ||||||||||||
Employee payroll and benefits | 46 | 104 | ||||||||||||
Accrued expenses | 52 | 80 | ||||||||||||
Product warranty accrual | 48 | 54 | ||||||||||||
Receivable and inventory allowances | 61 | 61 | ||||||||||||
Other | 552 | 597 | ||||||||||||
Total deferred tax assets | 2,984 | 3,158 | ||||||||||||
Valuation allowances for deferred tax assets | (412) | (195) | ||||||||||||
Deferred tax assets, net of valuation allowances | 2,572 | 2,963 | ||||||||||||
Reclassification of net deferred tax assets to held for sale | $ | (602) | $ | — | ||||||||||
Net deferred tax assets | $ | 1,048 | $ | 1,885 |
Millions of dollars | 2019 | 2018 | ||||||
Deferred tax liabilities | ||||||||
Intangibles | $ | 439 | $ | 450 | ||||
Property, net | 175 | 195 | ||||||
Right of use assets | 238 | — | ||||||
LIFO inventory | 89 | 37 | ||||||
Other | 215 | 262 | ||||||
Total deferred tax liabilities | $ | 1,156 | $ | 944 | ||||
Deferred tax assets | ||||||||
U.S. general business credit carryforwards, including Energy Tax Credits | $ | 787 | $ | 875 | ||||
Lease liabilities | 242 | — | ||||||
Pensions | 66 | 144 | ||||||
Loss carryforwards | 1,226 | 1,051 | ||||||
Postretirement obligations | 145 | 99 | ||||||
Foreign tax credit carryforwards | 39 | — | ||||||
Research and development capitalization | 133 | 135 | ||||||
Employee payroll and benefits | 96 | 98 | ||||||
Accrued expenses | 93 | 154 | ||||||
Product warranty accrual | 78 | 55 | ||||||
Receivable and inventory allowances | 72 | 85 | ||||||
Other | 574 | 536 | ||||||
Total deferred tax assets | 3,551 | 3,232 | ||||||
Valuation allowances for deferred tax assets | (192 | ) | (348 | ) | ||||
Deferred tax assets, net of valuation allowances | 3,359 | 2,884 | ||||||
Net deferred tax assets | $ | 2,203 | $ | 1,940 |
Millions of dollars | 2019 | 2018 | 2017 | |||||||||
Balance, January 1 | $ | 278 | $ | 219 | $ | 102 | ||||||
Additions for tax positions of the current year | 20 | 21 | 25 | |||||||||
Additions for tax positions of prior years | 138 | 60 | 110 | |||||||||
Reductions for tax positions of prior years | (26 | ) | (5 | ) | (1 | ) | ||||||
Settlements during the period | (4 | ) | (8 | ) | (10 | ) | ||||||
Lapses of applicable statute of limitation | (12 | ) | (9 | ) | (7 | ) | ||||||
Balance, December 31 | $ | 394 | $ | 278 | $ | 219 |
Millions of dollars | 2022 | 2021 | 2020 | |||||||||||||||||
Balance, January 1 | $ | 580 | $ | 427 | $ | 394 | ||||||||||||||
Additions for tax positions of the current year | 24 | 17 | 17 | |||||||||||||||||
Additions for tax positions of prior years | 32 | 179 | 21 | |||||||||||||||||
Reductions for tax positions of prior years | (45) | (34) | (2) | |||||||||||||||||
Settlements during the period | (1) | (7) | — | |||||||||||||||||
Lapses of applicable statute of limitation | (1) | (2) | (3) | |||||||||||||||||
Balance, December 31 | $ | 589 | $ | 580 | $ | 427 |
Millions of dollars | United States | Mexico | All Other Countries | Total | |||||||||||||||||||||||||
2022 | |||||||||||||||||||||||||||||
Long-lived assets | $1,742 | $389 | $662 | $2,793 | |||||||||||||||||||||||||
Millions of dollars | United States | Italy | Mexico | Poland | All Other Countries | Total | |||||||||||||||||||||||||||||
2021 | |||||||||||||||||||||||||||||||||||
Long-lived assets | $1,758 | $473 | $408 | $389 | $723 | $3,751 | |||||||||||||||||||||||||||||
OPERATING SEGMENTS | ||||||||||||||||||||||||||||||||||||||
Millions of dollars | North America | EMEA | Latin America | Asia | Other/ Eliminations | Total Whirlpool | ||||||||||||||||||||||||||||||||
Net sales | ||||||||||||||||||||||||||||||||||||||
2022 | $ | 11,474 | $ | 4,023 | $ | 3,127 | $ | 1,100 | $ | — | $ | 19,724 | ||||||||||||||||||||||||||
2021 | 12,491 | 5,088 | 3,167 | 1,239 | — | 21,985 | ||||||||||||||||||||||||||||||||
2020 | 11,210 | 4,389 | 2,592 | 1,265 | — | 19,456 | ||||||||||||||||||||||||||||||||
Intersegment sales | ||||||||||||||||||||||||||||||||||||||
2022 | $ | 261 | $ | 85 | $ | 1,494 | $ | 42 | $ | (1,882) | $ | — | ||||||||||||||||||||||||||
2021 | 312 | 102 | 1,277 | 252 | (1,943) | — | ||||||||||||||||||||||||||||||||
2020 | 249 | 93 | 1,227 | 379 | (1,948) | — | ||||||||||||||||||||||||||||||||
Depreciation and amortization | ||||||||||||||||||||||||||||||||||||||
2022 | $ | 198 | $ | 134 | $ | 65 | $ | 20 | $ | 58 | $ | 475 | ||||||||||||||||||||||||||
2021 | 175 | 168 | 63 | 26 | 62 | 494 | ||||||||||||||||||||||||||||||||
2020 | 193 | 177 | 62 | 70 | 66 | 568 | ||||||||||||||||||||||||||||||||
EBIT | ||||||||||||||||||||||||||||||||||||||
2022 | $ | 1,319 | $ | (58) | $ | 200 | $ | 54 | $ | (2,571) | $ | (1,056) | ||||||||||||||||||||||||||
2021 | 2,220 | 100 | 265 | 66 | (152) | 2,499 | ||||||||||||||||||||||||||||||||
2020 | 1,758 | 2 | 219 | (7) | (336) | 1,636 | ||||||||||||||||||||||||||||||||
Total assets | ||||||||||||||||||||||||||||||||||||||
2022 | $ | 10,913 | $ | 5,240 | $ | 4,343 | $ | 1,516 | $ | (4,888) | $ | 17,124 | ||||||||||||||||||||||||||
2021 | 7,980 | 10,210 | 4,716 | 1,565 | (4,186) | 20,285 | ||||||||||||||||||||||||||||||||
2020 | 7,597 | 11,296 | 4,244 | 2,573 | (5,274) | 20,436 | ||||||||||||||||||||||||||||||||
Capital expenditures | ||||||||||||||||||||||||||||||||||||||
2022 | $ | 238 | $ | 132 | $ | 121 | $ | 27 | $ | 52 | $ | 570 | ||||||||||||||||||||||||||
2021 | 169 | 152 | 133 | 30 | 41 | 525 | ||||||||||||||||||||||||||||||||
2020 | 137 | 116 | 64 | 50 | 43 | 410 |
Millions of dollars | United States | Mexico | Italy | Poland | All Other Countries | Total | |||||||||||||||||
2019 | |||||||||||||||||||||||
Long-lived assets | $ | 1,816 | $ | 431 | $ | 505 | $ | 422 | $ | 1,048 | $ | 4,222 | |||||||||||
2018 | |||||||||||||||||||||||
Long-lived assets | $ | 1,335 | $ | 265 | $ | 533 | $ | 410 | $ | 871 | $ | 3,414 |
OPERATING SEGMENTS | ||||||||||||||||||||||||
Millions of dollars | North America | EMEA | Latin America | Asia | Other/ Eliminations | Total Whirlpool | ||||||||||||||||||
Net sales | ||||||||||||||||||||||||
2019 | $ | 11,477 | $ | 4,296 | $ | 3,177 | $ | 1,515 | $ | (46 | ) | $ | 20,419 | |||||||||||
2018 | 11,374 | 4,536 | 3,618 | 1,587 | (78 | ) | 21,037 | |||||||||||||||||
2017 | 11,065 | 4,881 | 3,946 | 1,539 | (178 | ) | 21,253 | |||||||||||||||||
Intersegment sales | ||||||||||||||||||||||||
2019 | $ | 238 | $ | 83 | $ | 1,321 | $ | 334 | $ | (1,976 | ) | $ | — | |||||||||||
2018 | 267 | 101 | 1,313 | 358 | (2,039 | ) | — | |||||||||||||||||
2017 | 271 | 118 | 1,273 | 289 | (1,951 | ) | — | |||||||||||||||||
Depreciation and amortization | ||||||||||||||||||||||||
2019 | $ | 195 | $ | 187 | $ | 65 | $ | 67 | $ | 73 | $ | 587 | ||||||||||||
2018 | 196 | 204 | 111 | 72 | 62 | 645 | ||||||||||||||||||
2017 | 210 | 197 | 126 | 63 | 58 | 654 | ||||||||||||||||||
EBIT | ||||||||||||||||||||||||
2019 | $ | 1,462 | $ | (30 | ) | $ | 172 | $ | 33 | $ | 102 | $ | 1,739 | |||||||||||
2018 | 1,342 | (106 | ) | 210 | 83 | (1,358 | ) | 171 | ||||||||||||||||
2017 | 1,282 | (19 | ) | 248 | 54 | (516 | ) | 1,049 | ||||||||||||||||
Total assets | ||||||||||||||||||||||||
2019 | $ | 7,791 | $ | 9,450 | $ | 4,226 | $ | 2,581 | $ | (5,167 | ) | $ | 18,881 | |||||||||||
2018 | 7,161 | 7,299 | 4,745 | 2,636 | (3,494 | ) | 18,347 | |||||||||||||||||
2017 | 6,956 | 8,781 | 4,847 | 2,745 | (3,291 | ) | 20,038 | |||||||||||||||||
Capital expenditures | ||||||||||||||||||||||||
2019 | $ | 179 | $ | 124 | $ | 97 | $ | 80 | $ | 52 | $ | 532 | ||||||||||||
2018 | 180 | 154 | 110 | 71 | 75 | 590 | ||||||||||||||||||
2017 | 172 | 219 | 137 | 106 | 50 | 684 |
Twelve Months Ended December 31, | |||||||||
in millions | 2019 | 2018 | 2017 | ||||||
Items not allocated to segments: | |||||||||
Restructuring costs | $ | (188 | ) | $ | (247 | ) | $ | (275 | ) |
Brazil indirect tax credit | 180 | — | — | ||||||
Product warranty and liability expense | (131 | ) | — | — | |||||
(Gain) loss on sale and disposal of businesses | 437 | — | — | ||||||
Sale leaseback, real estate and receivable adjustment | 86 | — | — | ||||||
Trade customer insolvency claim settlement | (59 | ) | — | — | |||||
Impairment of goodwill and intangibles | — | (747 | ) | — | |||||
French antitrust settlement | — | (103 | ) | — | |||||
Trade customer insolvency | — | (30 | ) | — | |||||
Out-of-period adjustment | — | — | (40 | ) | |||||
Divestiture related transition costs | — | (21 | ) | — | |||||
Corporate expenses and other | (223 | ) | (210 | ) | (201 | ) | |||
Total other/eliminations | $ | 102 | $ | (1,358 | ) | $ | (516 | ) |
Twelve Months Ended December 31, | |||||||||||
in millions | 2022 | 2021 | 2020 | ||||||||
Items not allocated to segments: | |||||||||||
Restructuring costs | $ | (21) | $ | (38) | $ | (288) | |||||
Gain (loss) on previously held equity interest | — | 42 | — | ||||||||
Gain (loss) on sale and disposal of businesses | (1,869) | 107 | 7 | ||||||||
Impairment of goodwill, intangibles and other assets | (396) | — | — | ||||||||
Product warranty and liability income (expense) | — | 9 | 30 | ||||||||
Corrective action recovery | — | — | 14 | ||||||||
Sale-leaseback, real estate and receivable adjustment | — | — | 113 | ||||||||
Corporate expenses and other | (285) | (272) | (212) | ||||||||
Total other/eliminations | $ | (2,571) | $ | (152) | $ | (336) |
Twelve Months Ended December 31, | ||||||||||||||
in millions | 2022 | 2021 | 2020 | |||||||||||
Operating profit | $ | (1,056) | $ | 2,348 | $ | 1,615 | ||||||||
Interest and sundry (income) expense | (19) | (159) | (21) | |||||||||||
Equity method investment income (loss), net of tax | (19) | (8) | — | |||||||||||
Total EBIT | $ | (1,056) | $ | 2,499 | $ | 1,636 | ||||||||
Interest expense | 190 | 175 | 189 | |||||||||||
Income tax expense | 265 | 518 | 382 | |||||||||||
Net earnings (loss) | $ | (1,511) | $ | 1,806 | $ | 1,065 | ||||||||
Less: Net earnings (loss) available to noncontrolling interests | 8 | 23 | (10) | |||||||||||
Net earnings (loss) available to Whirlpool | $ | (1,519) | $ | 1,783 | $ | 1,075 |
Twelve Months Ended December 31, | ||||||||||
in millions | 2019 | 2018 | 2017 | |||||||
Operating profit | $ | 1,571 | $ | 279 | $ | 1,136 | ||||
Interest and sundry (income) expense | (168 | ) | 108 | 87 | ||||||
Total EBIT | $ | 1,739 | $ | 171 | $ | 1,049 | ||||
Interest expense | 187 | 192 | 162 | |||||||
Income tax expense | 354 | 138 | 550 | |||||||
Net earnings (loss) | $ | 1,198 | $ | (159 | ) | $ | 337 | |||
Less: Net earnings (loss) available to noncontrolling interests | 14 | 24 | (13 | ) | ||||||
Net earnings (loss) available to Whirlpool | $ | 1,184 | $ | (183 | ) | $ | 350 |
December 31, | ||||||||||||||||||||||||||
Millions of dollars | 2022 | 2021 | ||||||||||||||||||||||||
Carrying amounts of major classes of assets | ||||||||||||||||||||||||||
Current Assets | ||||||||||||||||||||||||||
Cash and cash equivalents | $ | 94 | $ | 507 | ||||||||||||||||||||||
Accounts receivable, net of allowance of $32 and $32, respectively | 667 | 835 | ||||||||||||||||||||||||
Inventories | 650 | 739 | ||||||||||||||||||||||||
Prepaid and other current assets | 145 | 231 | ||||||||||||||||||||||||
Total current assets | 1,556 | 2,312 | ||||||||||||||||||||||||
Property, net of accumulated depreciation of $1,648 and $1,842, respectively | 822 | 895 | ||||||||||||||||||||||||
Right of use assets | 163 | 173 | ||||||||||||||||||||||||
Goodwill | — | 296 | ||||||||||||||||||||||||
Other intangibles, net of accumulated amortization of $141 and $145, respectively | 279 | 420 | ||||||||||||||||||||||||
Deferred income taxes | 610 | 559 | ||||||||||||||||||||||||
Other noncurrent assets | 17 | 29 | ||||||||||||||||||||||||
Total noncurrent assets | 1,891 | 2,372 | ||||||||||||||||||||||||
Total assets | $ | 3,447 | $ | 4,684 | ||||||||||||||||||||||
Carrying amounts of major classes of liabilities | ||||||||||||||||||||||||||
Current liabilities | ||||||||||||||||||||||||||
Accounts payable | $ | 1,394 | $ | 1,769 | ||||||||||||||||||||||
Accrued expenses | 152 | 163 | ||||||||||||||||||||||||
Accrued advertising and promotions | 172 | 248 | ||||||||||||||||||||||||
Employee compensation | 107 | 158 | ||||||||||||||||||||||||
Notes payable | 3 | 4 | ||||||||||||||||||||||||
Other current liabilities | 125 | 140 | ||||||||||||||||||||||||
Total current liabilities | 1,953 | 2,482 | ||||||||||||||||||||||||
Noncurrent liabilities | ||||||||||||||||||||||||||
Long-term debt | 2 | 4 | ||||||||||||||||||||||||
Pension benefits | 122 | 229 | ||||||||||||||||||||||||
Lease liabilities | 131 | 137 | ||||||||||||||||||||||||
Other noncurrent liabilities | 88 | 73 | ||||||||||||||||||||||||
Total noncurrent liabilities | 343 | 443 | ||||||||||||||||||||||||
Total liabilities | $ | 2,296 | $ | 2,925 | ||||||||||||||||||||||
Total net assets of the disposal group classified as held for sale | $ | 1,151 |
Assets held for sale | Fair value of interest retained | $ | 139 | ||||||||||||||
Liabilities held for sale | Cumulative currency translation adjustment and Other comprehensive loss on pension | $ | 490 |
Millions of dollars | |||
Accounts receivable, net of allowance of $8 | $ | 198 | |
Inventories | 165 | ||
Prepaid and other current assets | 42 | ||
Property, net of accumulated depreciation of $616 | 364 | ||
Other noncurrent assets | 49 | ||
Total assets | $ | 818 | |
Accounts payable | $ | 361 | |
Accrued expenses | 27 | ||
Accrued advertising and promotion | 12 | ||
Other current liabilities | 55 | ||
Other noncurrent liabilities | 34 | ||
Total liabilities | $ | 489 |
Twelve Months Ended December 31, | |||||||||||||||||||||||
in millions | 2022 | 2021 | 2020 | ||||||||||||||||||||
Earnings (loss) before income taxes | $(106) | $(46) | $(111) |
Millions of dollars | 2019 | 2018 | 2017 | ||||||||
Earnings before income taxes | $ | 47 | $ | 53 | $ | 90 |
(in millions) | Amount | ||||
Cash and cash equivalents | $ | 7 | |||
Receivables, net | 74 | ||||
Inventories | 93 | ||||
Other current assets | 1 | ||||
Property, plant and equipment, net | 174 | ||||
Goodwill | 1,137 | ||||
Other intangible assets | 1,630 | ||||
Other assets | 11 | ||||
Accounts payable | 49 | ||||
Accrued expenses | 26 | ||||
Other current liabilities | 34 | ||||
Deferred income taxes | 1 | ||||
Other long-term liabilities | 10 | ||||
Total Estimated Purchase Consideration | $ | 3,007 |
Millions of dollars | Preliminary Fair Value | Estimated Useful Life | Valuation Methodology | ||||||||
Preliminary fair value of intangible assets acquired: | |||||||||||
Trademarks | $ | 1,300 | Indefinite | Relief-from-royalty | |||||||
Customer relationships | 330 | 16 years | Multi-period excess earnings / with and without method | ||||||||
Intangible assets acquired | $ | 1,630 |
Two months ended, | |||||
Millions of dollars | December 31, 2022 | ||||
Net Sales | $ | 93 | |||
Earnings before income taxes | 4 | ||||
Net Earnings | $ | 3 |
Year ended December 31, | ||||||||||||||
Millions of dollars | 2022 | 2021 | ||||||||||||
Net Sales | $ | 20,246 | $ | 22,565 | ||||||||||
Net earnings available to Whirlpool | $ | (1,493) | $ | 1,716 |
Three months ended | |||||||||||||||||||||||||||
Dec. 31 | Sept. 30 | Jun. 30 | Mar. 31 | ||||||||||||||||||||||||
Millions of dollars, except per share data | 2019(4) | 2018 | 2019(3) | 2018 | 2019 | 2018(2) | 2019 | 2018 | |||||||||||||||||||
Net sales | $ | 5,382 | $ | 5,660 | $ | 5,091 | $ | 5,326 | $ | 5,186 | $ | 5,140 | $ | 4,760 | $ | 4,911 | |||||||||||
Cost of products sold | 4,334 | 4,710 | 4,350 | 4,431 | 4,254 | 4,260 | 3,948 | 4,099 | |||||||||||||||||||
Gross margin | 1,048 | 950 | 741 | 895 | 932 | 880 | 812 | 812 | |||||||||||||||||||
Operating profit (loss) | 424 | 309 | 693 | 299 | 191 | (472 | ) | 263 | 143 | ||||||||||||||||||
Interest and sundry (income) expense | 54 | 2 | (29 | ) | 24 | (63 | ) | 90 | (130 | ) | (8 | ) | |||||||||||||||
Net earnings (loss) | 288 | 170 | 364 | 216 | 72 | (639 | ) | 474 | 94 | ||||||||||||||||||
Net earnings (loss) available to Whirlpool | 288 | 170 | 358 | 210 | 67 | (657 | ) | 471 | 94 | ||||||||||||||||||
Per share of common stock:(1) | |||||||||||||||||||||||||||
Basic net earnings (loss) | $ | 4.56 | $ | 2.66 | $ | 5.62 | $ | 3.25 | $ | 1.04 | $ | (9.50 | ) | $ | 7.36 | $ | 1.31 | ||||||||||
Diluted net earnings (loss) | 4.52 | 2.64 | 5.57 | 3.22 | 1.04 | (9.50 | ) | 7.31 | 1.30 | ||||||||||||||||||
Dividends | 1.20 | 1.15 | 1.20 | 1.15 | 1.20 | 1.15 | 1.15 | 1.10 |
ITEM 9. | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE |
ITEM 9A. | CONTROLS AND PROCEDURES |
OTHER INFORMATION |
ITEM 9C. | DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS |
PART III |
ITEM 10. | DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE |
ITEM 11. | EXECUTIVE COMPENSATION |
ITEM 12. | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS |
ITEM 13. | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE |
ITEM 14. | PRINCIPAL |
PART IV |
ITEM 15. | EXHIBITS, FINANCIAL STATEMENT SCHEDULES |
PAGE | |||||
ITEM 16. | Form 10-K Summary |
Number and Description of Exhibit | |||||
2(i)** | |||||
2(ii)** | |||||
Asset and Stock Purchase Agreement between Emerson Electric Co. and Whirlpool Corporation, dated August 7, 2022 [Incorporated by reference from Exhibit 2.1 to the Company's Form 8-K (Commission file number 1-3932) filed August 10, 2022] | |||||
2(iv)** | |||||
3(i) | |||||
3(ii) | |||||
4(i) | The registrant hereby agrees to furnish to the Securities and Exchange Commission, upon request, a copy of instruments defining the rights of holders of each issue of long-term debt of the registrant and its subsidiaries. | ||||
4(ii) | Indenture dated as of April 15, 1990 between Whirlpool Corporation and Citibank, N.A. [Incorporated by reference from Exhibit 4(a) to the Company's Registration Statement on Form S-3 (Commission file number 33-40249) filed on May 6, 1991] | ||||
4(iii) | |||||
4(iv) | Indenture dated as of June 15, 1987 between Maytag Corporation and The First National Bank of Chicago [Incorporated by reference from Maytag Corporation's Quarterly Report on Form 10-Q (Commission file number 1-00655) for the quarter ended June 30, 1987] | ||||
4(v) | |||||
4(vi) | |||||
4(vii) | |||||
4(viii) | |||||
10(i) | |||||
10(i)(b) | |||||
10(iii)(a) | |||||
10(iii)(b) | Whirlpool Corporation Charitable Award Contribution and Additional Life Insurance Plan for Directors (effective April 20, 1993) (Z) [Incorporated by reference from Exhibit 10(iii)(p) to the Company's Annual Report on Form 10-K (Commission file number 1-3932) for the fiscal year ended December 31, 1994] | ||||
10(iii)(c) | Whirlpool Corporation Deferred Compensation Plan for Directors (as amended effective January 1, 1992 and April 20, 1993) (Z) [Incorporated by reference from Exhibit 10(iii)(f) to the Company's Annual Report on Form 10-K (Commission file number 1-3932) for the fiscal year ended December 31, 1993] | ||||
10(iii)(e) | |||||
10(iii)(f) | |||||
10(iii)(g) | |||||
10(iii)(h) | |||||
10(iii)(i) | |||||
10(iii)(j) | |||||
10(iii)(k) |
10(iii)(l) | |||||
10(iii)(m) | Form of Agreement for the Whirlpool Corporation Career Stock Grant Program (pursuant to one or more of Whirlpool's Omnibus Stock and Incentive Plans) (Z) [Incorporated by reference from Exhibit 10(iii)(q) to the Company's Annual Report on Form 10-K (Commission file number 1-3932) for the fiscal year ended December 31, 1995] | ||||
10(iii)(n) | |||||
10(iii)(o) | |||||
10(iii)(p) | |||||
10(iii)(q) | |||||
10(iii)(r) | |||||
10(iii)(s) | |||||
10(iii)(t) | |||||
10(iii)(u) | |||||
10(iii)(v) | |||||
10(iii)(w) | |||||
10(iii)(x) | |||||
10(iii)(y) | |||||
10(iii)(z) | Whirlpool Corporation Executive Deferred Savings Plan (as amended effective January 1, 1992) (Z) [Incorporated by reference from Exhibit 10(iii)(n) to the Company's Annual Report on Form 10-K (Commission file number 1-3932) for the fiscal year ended December 31, 1993] | ||||
10(iii)(aa) | |||||
10(iii)(bb) | |||||
10(iii)(cc) | |||||
10(iii)(dd) | |||||
10(iii)(ee) |
10(iii)(ff) | |||||
10(iii)(gg) | |||||
10(iii)(hh) | |||||
10(iii)(ii) | |||||
10(iii)(jj) | |||||
10(iii)(kk) | |||||
10(iii)(ll) | |||||
10(iii)(mm) | |||||
10(iii)(oo) | |||||
10(iii)(pp) | |||||
10(iii)(qq) | |||||
10(iii)(rr) | |||||
10(iii)(ss) | |||||
10(iii)(tt)* | |||||
18.1 | |||||
21* | |||||
23* | |||||
24* | |||||
31.1* | |||||
31.2* | |||||
32* | |||||
101.INS* | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | ||||
101.SCH* | Inline XBRL Taxonomy Extension Schema Document | ||||
101.CAL* | Inline XBRL Taxonomy Extension Calculation Linkbase Document | ||||
101.DEF* | Inline XBRL Taxonomy Extension Definition Linkbase Document | ||||
101.LAB* | Inline XBRL Taxonomy Extension Label Linkbase Document | ||||
101.PRE* | Inline XBRL Taxonomy Extension Presentation Linkbase Document | ||||
Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
WHIRLPOOL CORPORATION (Registrant) | |||||||||||
By: | /s/ JAMES W. PETERS | February | |||||||||
James W. Peters Executive Vice President and Chief Financial Officer |
Signature | Title | |||||||
/s/ MARC R. BITZER | Chairman of the Board, President and Chief Executive Officer (Principal Executive Officer) | |||||||
Marc R. Bitzer | ||||||||
/s/ JAMES W. PETERS | Executive Vice President and Chief Financial Officer (Principal Financial Officer) | |||||||
James W. Peters | ||||||||
/s/ CHRISTOPHER S. CONLEY | Vice President and Corporate Controller (Principal Accounting Officer) | |||||||
Christopher S. Conley | ||||||||
SAMUEL R. ALLEN* | Director | |||||||
Samuel R. Allen | ||||||||
GREG CREED* | Director | |||||||
Greg Creed | ||||||||
GARY T. DICAMILLO* | Director | |||||||
Gary T. DiCamillo | ||||||||
DIANE M. DIETZ* | Director | |||||||
Diane M. Dietz | ||||||||
GERRI T. ELLIOTT* | Director | |||||||
Gerri T. Elliott | ||||||||
Director | ||||||||
JOHN D. LIU* | Director | |||||||
John D. Liu | ||||||||
JAMES M. LOREE* | Director | |||||||
James M. Loree | ||||||||
HARISH MANWANI* | Director | |||||||
Harish Manwani | ||||||||
PATRICIA K. POPPE* | Director | |||||||
Patricia K. Poppe | ||||||||
LARRY O. SPENCER* | Director | |||||||
Larry O. Spencer | ||||||||
MICHAEL D. WHITE* | Director | |||||||
Michael D. White |
*By: | /s/ JAMES W. PETERS | Attorney-in-Fact | February | |||||||||||||||||
James W. Peters |
/s/ JAMES W. PETERS | ||
James W. Peters | ||
Executive Vice President and Chief Financial Officer | ||
February |
/s/ MARC R. BITZER | /s/ JAMES W. PETERS | |||||||
Marc R. Bitzer | James W. Peters | |||||||
Chairman of the Board, President and Chief Executive Officer | Executive Vice President and Chief Financial Officer | |||||||
February | February |
Description of the Matter | At December 31, Auditing |
How We Addressed the Matter in Our Audit | We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the To test the estimated fair value of We involved valuation specialists to assist in evaluating the |
Description of the Matter | As of December 31, Auditing |
How We Addressed the Matter in Our Audit | We identified and tested controls that address the risk of material misstatement relating to the valuation of these income tax With the assistance of our income tax professionals, |
Description of the Matter | Auditing the accrued promotions liability was complex and subjective due to the large volume of activity, the manual nature of adjustments made to the liability in certain countries, and the inherent estimation uncertainty in the process performed to estimate the reduction to revenue and corresponding promotional liability. In addition, assessing the completeness of the accrual required significant auditor | |||||||
How We Addressed the Matter in Our Audit | We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the completeness and valuation of the reduction to revenue and corresponding promotional liability. For example, we tested controls over Our audit procedures over completeness and valuation included, among others, testing a sample of key inputs to the promotional liability, including reviewing key customer contractual agreements and third-party sales data. We performed testing over activity subsequent to the balance sheet date to determine the impact, if any, these items have on the We also performed analytical procedures on a disaggregated level and performed inquiries of sales personnel and key finance management personnel. |
COL. A | COL. B | COL. C | COL. D | COL. E | ||||||||||||
Description | Balance at Beginning of Period | Charged to Costs and Expenses | Deductions(1) | Balance at End of Period | ||||||||||||
Allowance for doubtful accounts | ||||||||||||||||
Year Ended December 31, 2019: | $ | 136 | $ | 16 | $ | (20 | ) | $ | 132 | |||||||
Year Ended December 31, 2018: | 157 | 54 | (75 | ) | 136 | |||||||||||
Year Ended December 31, 2017: | 185 | 73 | (101 | ) | 157 | |||||||||||
Deferred tax valuation allowance (2) | ||||||||||||||||
Year Ended December 31, 2019: | $ | 348 | $ | (150 | ) | $ | (6 | ) | $ | 192 | ||||||
Year Ended December 31, 2018: | 178 | 75 | 95 | 348 | ||||||||||||
Year Ended December 31, 2017: | 150 | (64 | ) | 92 | 178 |
Description | Balance at Beginning of Period | Charged to Cost and and Expenses | Deductions(1) | Balance at End of Period | ||||||||||||||||||||||
Allowance for doubtful accounts | ||||||||||||||||||||||||||
Year Ended December 31, 2022: | $ | 97 | $ | 7 | $ | (55) | $ | 49 | ||||||||||||||||||
Year Ended December 31, 2021: | 132 | 6 | (41) | 97 | ||||||||||||||||||||||
Year Ended December 31, 2020: | 132 | 42 | (42) | 132 | ||||||||||||||||||||||
Deferred tax valuation allowance (2) | ||||||||||||||||||||||||||
Year Ended December 31, 2022: | $ | 195 | $ | 222 | $ | (5) | $ | 412 | ||||||||||||||||||
Year Ended December 31, 2021: | 214 | (20) | 1 | 195 | ||||||||||||||||||||||
Year Ended December 31, 2020: | 192 | 12 | 10 | 214 |