Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 16, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | WHIRLPOOL CORP /DE/ | |
Entity Central Index Key | 106,640 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 78,194,437 |
Consolidated Condensed Statemen
Consolidated Condensed Statements of Comprehensive Income (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net sales | $ 5,277 | $ 4,824 | $ 15,331 | $ 13,869 |
Expenses | ||||
Cost of products sold | 4,347 | 3,997 | 12,643 | 11,500 |
Gross margin | 930 | 827 | 2,688 | 2,369 |
Selling, general and administrative | 529 | 448 | 1,583 | 1,344 |
Intangible amortization | 18 | 6 | 55 | 17 |
Restructuring costs | 54 | 38 | 145 | 101 |
Operating profit | 329 | 335 | 905 | 907 |
Other income (expense) | ||||
Interest and sundry income (expense) | (21) | (39) | (32) | (78) |
Interest expense | (41) | (35) | (124) | (119) |
Earnings before income taxes | 267 | 261 | 749 | 710 |
Income tax expense | 17 | 26 | 116 | 126 |
Net earnings | 250 | 235 | 633 | 584 |
Less: Net earnings available to noncontrolling interests | 15 | 5 | 30 | 15 |
Net earnings available to Whirlpool | $ 235 | $ 230 | $ 603 | $ 569 |
Per share of common stock | ||||
Basic net earnings available to Whirlpool (USD per share) | $ 2.98 | $ 2.92 | $ 7.64 | $ 7.26 |
Diluted net earnings available to Whirlpool (USD per share) | 2.95 | 2.88 | 7.54 | 7.16 |
Dividends declared (USD per share) | $ 0.90 | $ 0.75 | $ 2.55 | $ 2.125 |
Weighted-average shares outstanding (in millions) | ||||
Basic (shares) | 78.8 | 78.4 | 78.9 | 78.3 |
Diluted (shares) | 79.7 | 79.6 | 79.9 | 79.4 |
Comprehensive income | $ 45 | $ 39 | $ 254 | $ 429 |
Consolidated Condensed Balance
Consolidated Condensed Balance Sheets - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Current assets | ||
Cash and equivalents | $ 698 | $ 1,026 |
Accounts receivable, net of allowance of $165 and $154, respectively | 2,914 | 2,768 |
Inventories | 2,943 | 2,740 |
Deferred income taxes | 341 | 417 |
Prepaid and other current assets | 983 | 1,147 |
Total current assets | 7,879 | 8,098 |
Property, net of accumulated depreciation of $5,964 and $5,959, respectively | 3,684 | 3,981 |
Goodwill | 3,039 | 2,807 |
Other intangibles, net of accumulated amortization of $309 and $267, respectively | 2,705 | 2,803 |
Deferred income taxes | 1,917 | 1,900 |
Other noncurrent assets | 399 | 413 |
Total assets | 19,623 | 20,002 |
Current liabilities | ||
Accounts payable | 4,162 | 4,730 |
Accrued expenses | 693 | 852 |
Accrued advertising and promotions | 614 | 673 |
Employee compensation | 426 | 499 |
Notes payable | 803 | 569 |
Current maturities of long-term debt | 507 | 234 |
Other current liabilities | 1,006 | 846 |
Total current liabilities | 8,211 | 8,403 |
Noncurrent liabilities | ||
Long-term debt | 3,502 | 3,544 |
Pension benefits | 976 | 1,123 |
Postretirement benefits | 405 | 446 |
Other noncurrent liabilities | 740 | 690 |
Total noncurrent liabilities | 5,623 | 5,803 |
Stockholders’ equity | ||
Common stock, $1 par value, 250 million shares authorized, 110 million shares issued, and 78 million shares outstanding | 110 | 110 |
Additional paid-in capital | 2,597 | 2,555 |
Retained earnings | 6,611 | 6,209 |
Accumulated other comprehensive loss | (2,211) | (1,840) |
Treasury stock, 32 million shares | (2,244) | (2,149) |
Total Whirlpool stockholders’ equity | 4,863 | 4,885 |
Noncontrolling interests | 926 | 911 |
Total stockholders’ equity | 5,789 | 5,796 |
Total liabilities and stockholders’ equity | $ 19,623 | $ 20,002 |
Consolidated Condensed Balance4
Consolidated Condensed Balance Sheets (Parentheticals) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 165 | $ 154 |
Accumulated depreciation | 5,964 | 5,959 |
Accumulated amortization | $ 309 | $ 267 |
Common stock, par value (USD per share) | $ 1 | $ 1 |
Common stock, shares authorized (shares) | 250,000,000 | 250,000,000 |
Common stock, shares issued (shares) | 110,000,000 | 110,000,000 |
Common stock, shares outstanding (shares) | 78,000,000 | 78,000,000 |
Treasury stock (shares) | 32,000,000 | 32,000,000 |
Consolidated Condensed Stateme5
Consolidated Condensed Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Operating activities | ||
Net earnings | $ 633 | $ 584 |
Adjustments to reconcile net earnings to cash used in operating activities: | ||
Depreciation and amortization | 496 | 397 |
Curtailment gain | (63) | 0 |
Changes in assets and liabilities: | ||
Accounts receivable | (405) | (302) |
Inventories | (397) | (399) |
Accounts payable | (288) | 44 |
Accrued advertising and promotions | (34) | (18) |
Accrued expenses and current liabilities | (26) | (161) |
Taxes deferred and payable, net | (44) | 40 |
Accrued pension and postretirement benefits | (109) | (165) |
Employee compensation | (31) | (55) |
Other | 111 | (93) |
Cash used in operating activities | (157) | (128) |
Investing activities | ||
Capital expenditures | (391) | (422) |
Proceeds from sale of assets and business | 35 | 18 |
Change in restricted cash | 21 | 0 |
Acquisition of Indesit Company S.p.A. | 0 | (75) |
Acquisition of Hefei Rongshida Sanyo Electric Co., Ltd. | 0 | (250) |
Investment in related businesses | (72) | (16) |
Other | 0 | (3) |
Cash used in investing activities | (407) | (748) |
Financing activities | ||
Proceeds from borrowings of long-term debt | 531 | 818 |
Repayments of long-term debt | (278) | (606) |
Dividends paid | (200) | (165) |
Net proceeds from short-term borrowings | 307 | 476 |
Common stock issued | 36 | 31 |
Repurchase of common stock | (95) | (25) |
Purchase of noncontrolling interest shares | 0 | (5) |
Other | (5) | (13) |
Cash provided by financing activities | 296 | 511 |
Effect of exchange rate changes on cash and equivalents | (60) | (28) |
Decrease in cash and cash equivalents | (328) | (393) |
Cash and equivalents at beginning of period | 1,026 | 1,380 |
Cash and equivalents at end of period | $ 698 | $ 987 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION General Information The accompanying unaudited Consolidated Condensed Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information, and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all information or footnotes required by GAAP for complete financial statements. As a result, this Form 10-Q should be read in conjunction with the Consolidated Financial Statements and accompanying Notes in our Form 10-K for the year ended December 31, 2014 . Management believes that the accompanying Consolidated Condensed Financial Statements reflect all adjustments, including normal recurring items, considered necessary for a fair presentation of the interim periods. We have eliminated all material intercompany transactions in our Consolidated Condensed Financial Statements. We do not consolidate the financial statements of any company in which we have an ownership interest of 50% or less unless that company is deemed to be a variable interest entity ("VIE") of which we are the primary beneficiary. Certain VIEs are consolidated when the company is the primary beneficiary of these entities and has the ability to directly impact the activities of these entities. We are required to make estimates and assumptions that affect the amounts reported in the Consolidated Condensed Financial Statements and accompanying Notes. Actual results could differ materially from those estimates. Certain prior year amounts in the Consolidated Condensed Financial Statements have been reclassified to conform with current year presentation. New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, "Revenue from Contracts with Customers (Topic 606)", which supersedes the revenue recognition requirements in ASC 605, Revenue Recognition. This ASU is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. The FASB has approved a one year deferral of this standard, and this pronouncement is now effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period and is to be applied using one of two retrospective application methods, with early application not permitted. We have not yet determined the potential effects from this pronouncement on our Consolidated Financial Statements. In April 2015, FASB issued ASU No. 2015-03, Interest - "Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs". The guidance requires debt issuance costs related to a recognized debt liability be presented on the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with the presentation for debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this ASU. In August 2015, the FASB issued ASU No. 2015-15, Interest-Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements - Amendments to SEC Paragraphs Pursuant to Staff Announcements at the June 2015 EITF Meeting. ASU 2015-15 amends Subtopic 835-30 to include that the SEC would not object to the deferral and presentation of debt issuance costs as an asset and subsequent amortization of debt issuance costs over the term of the line-of-credit arrangement, whether or not there are any outstanding borrowings on the line-of-credit arrangement. This guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2015, and must be applied on a retrospective basis with early adoption permitted. The adoption is not expected to have a material impact on our Consolidated Financial Statements. In July 2015, the FASB issued ASU No. 2015-12, "Plan Accounting—Defined Benefit Pension Plans (Topic 960), Defined Contribution Pension Plans (Topic 962) Health and Welfare Benefit Plans (Topic 965)". There are three parts to the ASU that aim to simplify the accounting and presentation of plan accounting. Part I of this ASU requires fully benefit-responsive investment contracts to be measured at contract value instead of the current fair value measurement. Part II of this ASU requires investments (both participant-directed and nonparticipant-directed investments) of employee benefit plans be grouped only by general type, eliminating the need to disaggregate the investments in multiple ways. Part III of this ASU provides a similar measurement date practical expedient for employee benefit plans as available in ASU No. 2015-04, which allows employers to measure defined benefit plan assets on a month-end date that is nearest to the year’s fiscal year-end when the fiscal period does not coincide with a month-end. Parts I and II of the new guidance should be applied on a retrospective basis. Part III of the new guidance should be applied on a prospective basis. This ASU is effective for fiscal years beginning after December 15, 2015, and for interim periods within those fiscal years. The adoption is not expected to have a material impact on our Consolidated Financial Statements. In July 2015, the FASB issued ASU No. 2015-11, "Simplifying the Measurement of Inventory", which amends ASC 330, Inventory. This ASU simplifies the subsequent measurement of inventory by using only the lower of cost and net realizable value. The ASU does not apply to inventory measured using last-in, first-out method. This guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2016, and must be applied on a retrospective basis with early adoption permitted. The adoption is not expected to have a material impact on our Consolidated Financial Statements. In September 2015, the FASB issued ASU No. 2015-16, Business Combinations (Topic 805): "Simplifying the Accounting for Measurement-Period Adjustments", which eliminates the requirement for an acquirer in a business combination to account for measurement-period adjustments retrospectively. Under this ASU, acquirers must recognize measurement-period adjustments in the period in which they determine the amounts, including the effect on earnings of any amounts they would have recorded in previous periods if the accounting had been completed at the acquisition date. This guidance is effective for fiscal years beginning after December 15, 2016, with early adoption permitted. The Company elected to early adopt this ASU in the third quarter of 2015. As a result, we have not retrospectively accounted for the measurement-period adjustments determined in the third quarter of 2015 related to the corrective action described in Note 2 in our Consolidated Financial Statements. All other issued but not yet effective accounting pronouncements are not expected to have a material impact on our Consolidated Financial Statements. |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2015 | |
Business Combinations [Abstract] | |
Acquisitions | ACQUISITIONS Whirlpool China On October 24, 2014 , Whirlpool's wholly-owned subsidiary, Whirlpool (China) Investment Co., Ltd., completed its acquisition of a 51% equity stake in Hefei Rongshida Sanyo Electric Co., Ltd. ("Hefei Sanyo"), a joint stock company whose shares are listed and traded on the Shanghai Stock Exchange, which we have since renamed Whirlpool (China) Co., Ltd (" Whirlpool China "). The aggregate purchase price for the transaction was RMB 3.4 billion (approximately $551 million at the dates of purchase for each step of the transaction). The Company funded the total consideration for the shares with cash on hand. The cash paid for the private placement step of the transaction is considered restricted cash, which will be used to fund capital and technical resources to enhance Whirlpool China ’s research and development and working capital. Whirlpool China results are included in our Asia operating segment. Indesit Company S.p.A. On December 3, 2014 , Whirlpool completed the final step in its acquisition of Indesit Company S.p.A. (“Indesit”) and, on the same day, Indesit delisted from the Electronic Stock Market organized and managed by Borsa Italiana S.p.A. Total consideration paid for Indesit was € 1.1 billion (approximately $1.4 billion at the dates of purchase of each step in the transaction) in aggregate net of cash acquired. The Company funded the aggregate purchase price for Indesit through borrowings under its credit facility and commercial paper programs, and repaid a portion of such borrowings through the issuance of an aggregate principal amount of $650 million in senior notes on November 4, 2014 and an aggregate principal amount of € 500 million (approximately $525 million as of the date of issuance) in senior notes on March 12, 2015 . Additional information about our 2015 financing arrangements can be found in Note 6 . Indesit results are included in our EMEA operating segment. Purchase Price Allocations The Company has finalized independent appraisals for the purpose of allocating the purchase price to the individual assets acquired and liabilities assumed in the Whirlpool China and Indesit acquisitions. This resulted in adjustments to the carrying values of recorded assets and liabilities, and the determination of residual amounts allocated to goodwill. The final allocation of the purchase prices included in the current period balance sheet is based on the final determination of asset fair values. The following table presents the final allocation of purchase price related to the Whirlpool China and Indesit acquisitions, as of their respective dates of acquisition. Adjustments made to the opening balance sheet in the nine months ended September 30, 2015 include an $8 million increase to Whirlpool China 's goodwill resulting primarily from a reassessment of deferred tax assets, a $296 million increase to Indesit's goodwill primarily reflecting the recognition of a corrective action on certain heritage Indesit products, a revaluation of current and deferred tax liabilities, an increase in trade partner incentives, and an increase in environmental liabilities. Additional information about the corrective action can be found in Note 7 in the Company's Consolidated Condensed Financial Statements. In addition, we have performed certain balance sheet reclassifications between notes payable and other current liabilities and between accounts payable and other current liabilities, in order to conform to Whirlpool's financial statement presentation. The effect of these adjustments would not have a material impact to net earnings for the nine months ended September 30, 2015 if they would have been previously recognized as of the acquisition date. Millions of dollars Whirlpool China (1) Indesit Cash $ 98 $ 77 Accounts receivable 78 886 Inventory 135 471 Other current assets 354 288 Property, plant and equipment 169 854 Goodwill 459 963 Identified intangible assets 372 822 Other non-current assets 313 185 Total assets acquired 1,978 4,546 Accounts payable (181 ) (866 ) Short-term notes payable — (557 ) Other current liabilities (307 ) (410 ) Non-current liabilities (142 ) (1,276 ) Total liabilities assumed (630 ) (3,109 ) Net assets acquired $ 1,348 $ 1,437 (1) We purchased a 51% controlling interest in Whirlpool China 's net assets described in the table; the non-controlling interest was valued at $801 million , the market value of the stock price of the shares purchased on the date of acquisition. Goodwill, which is not deductible for tax purposes, has been allocated to the Asia and EMEA operating segments on the basis that the cost efficiencies identified will primarily benefit these segments of the business based on the preliminary allocation of the purchase price of the respective acquisitions. Any changes to the preliminary estimates of the fair values of the assets and liabilities will be allocated to residual goodwill. The Company's final estimates regarding the fair value of Whirlpool China and Indesit's identifiable intangible assets are presented below. These estimates did not change in the nine months ended September 30, 2015 : Whirlpool China Indesit Millions of dollars Estimated Fair Value Estimated Useful Life Estimated Fair Value Estimated Useful Life Trademarks-indefinite lived $ 42 $ 535 Customer relationships 230 13-16 years 134 5-19 years Patents and other intangibles 100 3-10 years 153 6-15 years $ 372 $ 822 The customer relationship intangibles of Whirlpool China were mainly allocated to its traditional trade distributors, which have an estimated useful life of up to 16 years based on low historical and projected customer attrition rates among its retailers. The majority of the intangible asset valuation for Indesit relates to the Indesit and Hotpoint brands (Whirlpool ownership of the Hotpoint brand in EMEA and Asia Pacific regions is not affiliated with the Hotpoint brand sold in the Americas), which are indefinite lived intangibles. The Company determined that its trademarks have an indefinite life which is based on a number of factors, including competitive environment, market share, brand history and product life cycles. The patents and other intangibles have an estimated useful life that varies based on the estimate of the expected life of the technology and the products associated with the technology. The estimated useful lives of the finite-lived intangible assets will be amortized using a straight-line method of amortization. Pro Forma Results of Operations The results of Whirlpool China and Indesit’s operations have been included in the Consolidated Condensed Financial Statements beginning October 24, 2014 and October 14, 2014 , respectively. The following table provides pro forma results of operations for the nine months ended September 30, 2014 , as if Whirlpool China and Indesit had been acquired as of January 1, 2014. The pro forma results include certain purchase accounting adjustments such as the estimated changes in depreciation and amortization expense on acquired tangible and intangible assets as well as interest expense on borrowings used to finance the acquisitions. Additionally, the pro forma results include adjustments to convert Whirlpool China and Indesit’s historical results from local accounting standards to U.S. GAAP. Pro forma results do not include any anticipated cost savings or other effects of the planned integration of these acquisitions. Accordingly, such amounts are not necessarily indicative of the results that would have occurred if the acquisition had occurred on the dates indicated or that may result in the future. Nine Months Ended September 30, Millions of dollars, except per share data 2014 Net sales $ 17,046 Net earnings available to Whirlpool $ 599 Diluted net earnings per share $ 7.53 Certain non-recurring acquisition-related costs and investment expenses of $24 million and $26 million were recorded by Whirlpool in the nine months ended September 30, 2014 related to the acquisitions of Whirlpool China and Indesit, respectively. Of these costs, $29 million of the aggregate amount was recorded in selling, general and administrative, with the remaining costs recorded in interest and sundry income (expense). These costs have been eliminated from the pro forma information presented above. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS Fair value is measured based on an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions market participants would use in pricing an asset or liability. Assets and liabilities measured at fair value are based on a market valuation approach using prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. As a basis for considering such assumptions, a three-tiered fair value hierarchy is established, which prioritizes the inputs used in measuring fair value as follows: (Level 1) observable inputs such as quoted prices in active markets; (Level 2) inputs, other than the quoted prices in active markets that are observable, either directly or indirectly; and (Level 3) unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. We had no Level 3 assets or liabilities at September 30, 2015 and December 31, 2014 . Assets and liabilities measured at fair value on a recurring basis at September 30, 2015 and December 31, 2014 are in the following table: Fair Value Total Cost Basis Level 1 Level 2 Total Millions of dollars 2015 2014 2015 2014 2015 2014 2015 2014 Money market funds (1) $ 15 $ 21 $ 15 $ 21 $ — $ — $ 15 $ 21 Net derivative contracts — — — — (38 ) (1 ) (38 ) (1 ) Available for sale investments 14 16 23 26 — — 23 26 (1) Money market funds are comprised primarily of government obligations and other first tier obligations. Other Fair Value Measurements The fair value of long-term debt (including current maturities) was $4.1 billion and $3.8 billion at September 30, 2015 and December 31, 2014 , respectively, and was estimated using discounted cash flow analyses based on incremental borrowing rates for similar types of borrowing arrangements (Level 2 input). |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2015 | |
Inventory, Net [Abstract] | |
Inventories | INVENTORIES The following table summarizes our inventory for the periods presented: Millions of dollars September 30, December 31, Finished products $ 2,403 $ 2,189 Raw materials and work in process 687 724 3,090 2,913 Less: excess of FIFO cost over LIFO cost (147 ) (173 ) Total inventories $ 2,943 $ 2,740 LIFO inventories represented 37% and 35% of total inventories at September 30, 2015 and December 31, 2014 , respectively. |
Property, Plant & Equipment
Property, Plant & Equipment | 9 Months Ended |
Sep. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant & Equipment | PROPERTY, PLANT & EQUIPMENT The following table summarizes our property, plant and equipment as of September 30, 2015 and December 31, 2014 : Millions of dollars September 30, December 31, Land $ 133 $ 142 Buildings 1,592 1,616 Machinery and equipment 7,923 8,182 Accumulated depreciation (5,964 ) (5,959 ) Property, plant and equipment, net $ 3,684 $ 3,981 During the nine months ended September 30, 2015 , we disposed of $102 million of buildings, machinery and equipment. |
Financing Arrangements
Financing Arrangements | 9 Months Ended |
Sep. 30, 2015 | |
Financing Arrangements [Abstract] | |
Financing Arrangements | FINANCING ARRANGEMENTS Debt In the fourth quarter of 2014, we assumed € 300 million principal amount of 4.5% guaranteed notes due on April 26, 2018 from the Indesit acquisition. During the first quarter of 2015, holders of the notes passed a resolution which amended the terms and conditions of the notes so that they are better aligned to the terms and conditions of notes and bonds issued by Whirlpool Corporation. As a result of the passage of the resolution, Whirlpool has agreed to be a guarantor of the notes. These notes contain covenants that limit our ability to incur certain liens or enter into certain sale and lease-back transactions. In addition, if we experience a specific kind of change of control, we are required to make an offer to purchase all of the notes at a purchase price of 101% of the principal amount thereof, plus accrued and unpaid interest. On May 15, 2015 , $ 200 million of 5.00% notes matured and were repaid. On March 12, 2015 , we completed a debt offering of € 500 million (approximately $525 million as of the date of issuance) principal amount of 0.625% notes due in 2020 . The notes contain covenants that limit our ability to incur certain liens or enter into certain sale and lease-back transactions. In addition, if we experience a specific kind of change of control, we are required to make an offer to purchase all of the notes at a purchase price of 101% of the principal amount thereof, plus accrued and unpaid interest. The notes are registered under the Securities Act of 1933, as amended, pursuant to our Registration Statement on Form S-3 (File No. 333-181339) filed with the Securities and Exchange Commission (the “Commission”) on May 11, 2012. On September 25, 2015, we entered into an Amended and Restated Short-Term Credit Agreement (the “Amended 364-Day Facility”). The Amended 364 -Day Facility has a maturity date of September 23, 2016, aggregate borrowing capacity of $500 million and amends and restates in its entirety the Short-Term Credit Agreement entered into on September 26, 2014 (the “Original 364-Day Facility”). We had no borrowings outstanding under the Amended 364-Day Facility at September 30, 2015 or the Original 364-Day Facility at December 31, 2014 , respectively. The interest and fee rates payable with respect to the Amended 364-Day Facility based on our current debt rating are unchanged from the Original 364-Day Facility and are as follows: (1) the spread over LIBOR is 1.250% ; (2) the spread over prime is 0.250% ; and (3) the unused commitment fee is 0.125% , as of the date hereof. The Amended 364-Day Facility contains customary covenants and warranties including, among other things, a rolling twelve month maximum leverage ratio limited to 3.25 to 1.0 for each fiscal quarter and a rolling twelve month interest coverage ratio required to be greater than or equal to 3.0 to 1.0 for each fiscal quarter. In addition, the covenants limit our ability to (or to permit any subsidiaries to), subject to various exceptions and limitations: (i) merge with other companies; (ii) create liens on its property; (iii) incur debt or off-balance sheet obligations at the subsidiary level; (iv) enter into transactions with affiliates, except on an arms-length basis; (v) enter into agreements restricting the payment of subsidiary dividends or restricting the making of loans or repayment of debt by subsidiaries; and (vi) enter into agreements restricting the creation of liens on its assets. We are in compliance with financial covenant requirements at September 30, 2015 and December 31, 2014 . Notes Payable Notes payable, which consist of short-term borrowings payable to banks, debt securitization or commercial paper, are generally used to fund working capital requirements. The fair value of our notes payable approximates the carrying amount due to the short maturity of these obligations. The following table summarizes the carrying value of notes payable at September 30, 2015 and December 31, 2014 : Millions of dollars September 30, 2015 December 31, 2014 Commercial paper $ 656 $ 387 Debt securitization — 35 Short-term borrowings to banks 147 147 Total notes payable $ 803 $ 569 Indesit, acquired by Whirlpool in the fourth quarter of 2014, had maintained a securitization program since 2010. The securitization involved the without-recourse sale of trade receivables by Indesit. The receivables were acquired by VIEs which were financed by the issuance of securities whose repayment was guaranteed by the cash flows generated by the receivables sold. Whirlpool stopped the sale of receivables related to the securitization beginning in December 2014, and this debt securitization was exited as planned through the first quarter of 2015. There are no outstanding balances as of September 30, 2015 related to the securitization program. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Embraco Antitrust Matters Beginning in February 2009, our compressor business headquartered in Brazil ("Embraco") was notified of antitrust investigations of the global compressor industry by government authorities in various jurisdictions. Embraco has resolved government investigations in various jurisdictions as well as all related civil lawsuits in the United States. Embraco also has resolved certain other claims and certain claims remain pending. Additional lawsuits could be filed. At September 30, 2015 , $23 million remains accrued, with installment payments of $15 million , plus interest, due at various times through 2015. We continue to defend these actions and take other steps to minimize our potential exposure. The final outcome and impact of these matters, and any related claims and investigations that may be brought in the future are subject to many variables, and cannot be predicted. We establish accruals only for those matters where we determine that a loss is probable and the amount of loss can be reasonably estimated. While it is currently not possible to reasonably estimate the aggregate amount of costs which we may incur in connection with these matters, such costs could have a material adverse effect on our financial position, liquidity, or results of operations in any particular reporting period. BEFIEX Credits and Other Brazil Tax Matters In previous years, our Brazilian operations earned tax credits under the Brazilian government’s export incentive program (BEFIEX). These credits reduced Brazilian federal excise taxes on domestic sales, resulting in an increase in the operations’ recorded net sales, as the credits were monetized. We did not monetize any BEFIEX credits during the nine months ended September 30, 2015 . We monetized $14 million of BEFIEX credits during the nine months ended September 30, 2014 . We began recognizing BEFIEX credits in accordance with prior favorable court decisions allowing for the credits to be recognized. We recognized export credits as they were monetized. In December 2013, the Brazilian government reinstituted the monetary adjustment index applicable to BEFIEX credits that existed prior to July 2009, when the Brazilian government required companies to apply a different monetary adjustment index to BEFIEX credits. As of September 30, 2015 , no BEFIEX credits deemed to be available prior to this action remained to be monetized. Whether use of the reinstituted index should be given retroactive effect for the July 2009 to December 2013 period has been subject to review by the Brazilian courts. If the reinstituted index is given retroactive effect, we would be entitled to recognize additional credits. We are awaiting the resolution of additional proceedings on the retroactive effect of the reinstituted index. Our Brazilian operations have received governmental assessments related to claims for income and social contribution taxes associated with BEFIEX credits monetized from 2000 through 2002 and 2007 through 2011. We do not believe BEFIEX export credits are subject to income or social contribution taxes. We are disputing these tax matters in various courts and intend to vigorously defend our positions. We have not provided for income or social contribution taxes on these export credits, and based on the opinions of tax and legal advisors, we have not accrued any amount related to these assessments as of September 30, 2015 . The total amount of outstanding tax assessments received for income and social contribution taxes relating to the BEFIEX credits, including interest and penalties, is approximately 1.5 billion Brazilian reais (approximately $380 million as of September 30, 2015 ). Relying on existing Brazilian legal precedent, in 2003 and 2004, we recognized tax credits in an aggregate amount of $26 million , adjusted for currency, on the purchase of raw materials used in production (“IPI tax credits”). The Brazilian tax authority subsequently challenged the recording of IPI tax credits. No credits have been recognized since 2004. In 2009, we entered into a Brazilian government program which provided extended payment terms and reduced penalties and interest to encourage tax payers to resolve this and certain other disputed tax credit amounts. As permitted by the program, we elected to settle certain debts through the use of other existing tax credits and recorded charges of approximately $34 million in 2009 associated with these matters. In July 2012, the Brazilian revenue authority notified us that a portion of our proposed settlement was rejected and we received tax assessments of 216 million Brazilian reais (approximately $54 million as of September 30, 2015 ), reflecting interest and penalties to date. We are disputing these assessments and we intend to vigorously defend our position. Based on the opinion of our tax and legal advisors, we have not recorded an additional reserve related to these matters. In 2001, Brazil adopted a law making the profits of controlled foreign corporations of Brazilian entities subject to income and social contribution tax regardless of whether the profits were repatriated ("CFC Tax"). Our Brazilian subsidiary, along with other corporations, challenged tax assessments on foreign profits on constitutionality and other grounds. In April 2013, the Brazilian Supreme Court ruled on one of our cases, finding that the law is constitutional, but remanding the case to a lower court for consideration of other arguments raised in our appeal, including the existence of tax treaties with jurisdictions in which controlled foreign corporations are domiciled. As of September 30, 2015 , our potential exposure for income and social contribution taxes relating to profits of controlled foreign corporations, including interest and penalties and net of expected foreign tax credits, is approximately 180 million Brazilian reais (approximately $45 million as of September 30, 2015 ). We believe these assessments are without merit and we intend to continue to vigorously dispute them. Based on the opinion of our tax and legal advisors, we have not accrued any amount related to these assessments as of September 30, 2015 . In December 2013, we entered into a Brazilian government program to settle long standing disputes. Participation in the program removed uncertainty related to 16 assessments that were previously under dispute and significantly reduces potential penalties and interest associated with these matters. Our participation will result in total payments including principal, interest, and penalties of 75 million Brazilian reais, to be paid in 30 monthly installments, which began in December 2013. The outstanding balance of principal, interest, and penalties at September 30, 2015 is 38 million Brazilian reais (approximately $10 million as of September 30, 2015 ). In addition to the IPI tax credit and CFC Tax matters noted above, we are currently disputing other assessments issued by the Brazilian tax authorities related to non-income and income tax matters, including for the monetization of BEFIEX credits and other BEFIEX matters, which are at various stages of review in numerous administrative and judicial proceedings. In accordance with our accounting policies, we routinely assess these matters and, when necessary, record our best estimate of a loss. We believe these tax assessments are without merit and are vigorously defending our positions. Litigation is inherently unpredictable and the conclusion of these matters may take many years to ultimately resolve. Sessions of trial of the Brazilian administrative council of tax appeals, or CARF, are currently suspended for all litigants while changes in CARF procedures and staffing are being implemented, which may increase time and associated expense for our pending cases. The amounts related to these assessments will continue to be increased by monetary adjustments at the Selic rate, which is the benchmark rate set by the Brazilian Central Bank. Accordingly, it is possible that an unfavorable outcome in these proceedings could have a material adverse effect on our financial position, liquidity, or results of operations in any particular reporting period. Other Litigation We are currently defending against numerous lawsuits pending in federal and state courts in the United States relating to certain of our front load washing machines. Some of these lawsuits have been certified for treatment as class actions. The complaints in these lawsuits generally allege violations of state consumer fraud acts, unjust enrichment, product liability claims and breach of warranty. The complaints generally seek compensatory, consequential and punitive damages. We believe these suits are without merit and are vigorously defending them. Given the preliminary stage of many of these proceedings, the Company cannot reasonably estimate a possible range of loss, if any, at this time. The resolution of one or more of these matters could have a material adverse effect on our financial position, liquidity, or results of operations. In addition, we are currently defending a number of other lawsuits in federal and state courts in the United States related to the manufacturing and sale of our products which include class action allegations. These lawsuits allege claims which include breach of contract, breach of warranty, product liability claims, fraud, violation of federal and state consumer protection acts and negligence. We do not have insurance coverage for class action lawsuits. We are also involved in various other legal actions in the United States and other jurisdictions around the world arising in the normal course of business, for which insurance coverage may or may not be available depending on the nature of the action. We dispute the merits of these suits and actions, and intend to vigorously defend them. Management believes, based upon its current knowledge, after taking into consideration legal counsel's evaluation of such suits and actions, and after taking into account current litigation accruals, that the outcome of these matters currently pending against Whirlpool should not have a material adverse effect, if any, on our financial position, liquidity, or results of operations. Other Matters In 2013, the French Competition Authority commenced an investigation of appliance manufacturers and retailers in France. The investigation includes 11 manufacturers, including the Whirlpool and Indesit operations in France. Although it is currently not possible to assess the impact, if any, this matter may have on our Consolidated Condensed Financial Statements, the resolution of this matter could have a material adverse effect on our financial position, liquidity, or results of operations in any particular reporting period. Product Warranty Reserves Product warranty reserves are included in other current and other noncurrent liabilities in our Consolidated Condensed Balance Sheets. The following table summarizes the changes in total product warranty reserves for the periods presented: Nine Months Ended September 30, Millions of dollars 2015 2014 Balance at January 1 $ 235 $ 191 Issuances/accruals during the period 474 194 Settlements made during the period (203 ) (206 ) Balance at September 30 $ 506 $ 179 Current portion $ 326 $ 141 Non-current portion 180 38 Total $ 506 $ 179 In the normal course of business, we engage in investigations of potential quality and safety issues. As part of our ongoing effort to deliver quality products to customers, we are currently investigating a limited number of potential quality and safety issues. As necessary, we undertake to effect repair or replacement of appliances in the event that an investigation leads to the conclusion that such action is warranted. In September 2015, we recorded a liability related to a corrective action affecting certain heritage Indesit products. We estimate the most probable cost of the corrective action is €245 million (approximately $274 million as of September 30, 2015 ). Approximately 90% of the affected units were manufactured by Indesit prior to its acquisition by the Company in October 2014. Accordingly, we increased the warranty liability as a purchase accounting adjustment in the opening balance sheet with a corresponding increase to goodwill of €210 million (approximately $235 million as of September 30, 2015 ). The remainder of the affected units were manufactured after the acquisition of Indesit and the related expense of €35 million (approximately $39 million as of September 30, 2015 ) was recorded in the third quarter of 2015 . Guarantees We have guarantee arrangements in a Brazilian subsidiary. As a standard business practice in Brazil, the subsidiary guarantees customer lines of credit at commercial banks to support purchases following its normal credit policies. If a customer were to default on its line of credit with the bank, our subsidiary would be required to satisfy the obligation with the bank and the receivable would revert back to the subsidiary. At September 30, 2015 and December 31, 2014 , the guaranteed amounts totaled $231 million and $492 million , respectively. Our subsidiary insures against credit risk for these guarantees, under normal operating conditions, through policies purchased from high-quality underwriters. We provide guarantees of indebtedness and lines of credit for various consolidated subsidiaries. The maximum amount of credit facilities available under these lines for consolidated subsidiaries totaled $2.0 billion and $2.6 billion at September 30, 2015 and December 31, 2014 , respectively. Our total outstanding bank indebtedness under guarantees was nominal at September 30, 2015 and December 31, 2014 . We have guaranteed a $45 million five -year revolving credit facility between certain financial institutions and a not-for-profit entity in connection with a community and economic development project (“Harbor Shores”). The credit facility, which originated in 2008, was refinanced in December 2012 and we renewed our guarantee through 2017. It was also amended in 2014 by Harbor Shores and reduced to $45 million . The fair value of the guarantee was nominal. The purpose of Harbor Shores is to stimulate employment and growth in the areas of Benton Harbor and St. Joseph, Michigan. In the event of default, we must satisfy the guarantee of the credit facility up to the amount borrowed at the date of default. |
Hedges and Derivative Financial
Hedges and Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2015 | |
General Discussion of Derivative Instruments and Hedging Activities [Abstract] | |
Hedges and Derivative Financial Instruments | HEDGES AND DERIVATIVE FINANCIAL INSTRUMENTS Derivative instruments are accounted for at fair value based on market rates. Derivatives where we elect hedge accounting are designated as either cash flow or fair value hedges. Derivatives that are not accounted for based on hedge accounting are marked to market through earnings. The accounting for changes in the fair value of a derivative depends on the intended use and designation of the derivative instrument. Hedging ineffectiveness and a net earnings impact occur when the change in the fair value of the hedge does not offset the change in the fair value of the hedged item. The ineffective portion of the gain or loss is recognized in earnings. Using derivative instruments means assuming counterparty credit risk. Counterparty credit risk relates to the loss we could incur if a counterparty were to default on a derivative contract. We generally deal with investment grade counterparties and monitor the overall credit risk and exposure to individual counterparties. We do not anticipate nonperformance by any counterparties. The amount of counterparty credit exposure is limited to the unrealized gains, if any, on such derivative contracts. We do not require nor do we post collateral or security on such contracts. Hedging Strategy In the normal course of business, we manage risks relating to our ongoing business operations including those arising from changes in foreign exchange rates, interest rates and commodity prices. Fluctuations in these rates and prices can affect our operating results and financial condition. We use a variety of strategies, including the use of derivative instruments, to manage these risks. We do not enter into derivative financial instruments for trading or speculative purposes. Foreign Currency Exchange Rate Risk We incur expenses associated with the procurement and production of products in a limited number of countries, while we sell in the local currencies of a large number of countries. Our primary foreign currency exchange exposures result from cross-currency sales of products. As a result, we enter into foreign exchange contracts to hedge certain firm commitments and forecasted transactions to acquire products and services that are denominated in foreign currencies. We enter into certain undesignated non-functional currency asset and liability hedges that relate primarily to short-term payables, receivables and intercompany loans. These forecasted cross-currency cash flows relate primarily to foreign currency denominated expenditures and intercompany financing agreements, royalty agreements and dividends. When we hedge a foreign currency denominated payable or receivable with a derivative, the effect of changes in the foreign exchange rates are reflected currently in interest and sundry income (expense) for both the payable/receivable and the derivative. Therefore, as a result of the economic hedge, we do not elect hedge accounting. Commodity Price Risk We enter into commodity derivative contracts on various commodities to manage the price risk associated with forecasted purchases of materials used in our manufacturing process. The objective of these hedges is to reduce the variability of cash flows associated with the forecasted purchase of commodities. Interest Rate Risk We may enter into interest rate swap agreements to manage interest rate risk exposure. Our interest rate swap agreements, if any, effectively modify our exposure to interest rate risk, primarily through converting certain of our floating rate debt to a fixed rate basis, and certain fixed rate debt to a floating rate basis. These agreements involve either the receipt or payment of floating rate amounts in exchange for fixed rate interest payments or receipts, respectively, over the life of the agreements without an exchange of the underlying principal amounts. We also may utilize a cross-currency interest rate swap agreement to manage our exposure relating to certain intercompany debt denominated in one foreign currency that will be repaid in another foreign currency. At September 30, 2015 and December 31, 2014 , there were no outstanding swap agreements. We may enter into treasury rate lock agreements to effectively modify our exposure to interest rate risk by locking-in interest rates on probable long-term debt issuances. The following table summarizes our outstanding derivative contracts and their effects on our Consolidated Condensed Balance Sheets at September 30, 2015 and December 31, 2014 : Fair Value of Type of Hedge (1) Notional Amount Hedge Assets Hedge Liabilities Maximum Term (Months) Millions of dollars 2015 2014 2015 2014 2015 2014 2015 2014 Derivatives accounted for as hedges Foreign exchange forwards/options $ 943 $ 874 $ 35 $ 27 $ 13 $ 8 (CF) 15 17 Commodity swaps/options 333 375 — 4 64 29 (CF) 35 36 Total derivatives accounted for as hedges $ 35 $ 31 $ 77 $ 37 Derivatives not accounted for as hedges Foreign exchange forwards/options $ 2,410 $ 2,358 $ 26 $ 34 $ 22 $ 29 N/A 8 10 Commodity swaps/options 5 8 — — — — N/A 8 4 Total derivatives not accounted for as hedges 26 34 22 29 Total derivatives $ 61 $ 65 $ 99 $ 66 Current $ 61 $ 64 $ 82 $ 59 Noncurrent — 1 17 7 Total derivatives $ 61 $ 65 $ 99 $ 66 (1) Derivatives accounted for as hedges are considered cash flow (CF) hedges. The following tables summarize the effects of derivative instruments on our Consolidated Condensed Statements of Comprehensive Income for the three and nine months ended as follows: Three Months Ended September 30, Gain (Loss) Gain Reclassified from OCI into Earnings (Effective Portion) (1) Cash Flow Hedges - Millions of dollars 2015 2014 2015 2014 Foreign exchange $ 41 $ 23 $ 18 $ 4 (a) Commodity swaps/options (49 ) (8 ) (16 ) — (a) $ (8 ) $ 15 $ 2 $ 4 Three Months Ended September 30, Gain Recognized on Derivatives not Accounted for as Hedges (2) Derivatives not Accounted for as Hedges - Millions of dollars 2015 2014 Foreign exchange forwards/options $ (13 ) $ (33 ) Nine Months Ended September 30, Gain (Loss) Gain Reclassified from OCI into Earnings (Effective Portion) (1) Cash Flow Hedges - Millions of dollars 2015 2014 2015 2014 Foreign exchange $ 51 $ 27 $ 42 $ 13 (a) Commodity swaps/options (81 ) (2 ) (37 ) (8 ) (a) Interest rate derivatives — — (1 ) (1 ) (b) $ (30 ) $ 25 $ 4 $ 4 Nine Months Ended September 30, Gain Recognized on Derivatives not Accounted for as Hedges (2) Derivatives not Accounted for as Hedges - Millions of dollars 2015 2014 Foreign exchange forwards/options $ 19 $ 2 (1) Gains and losses reclassified from accumulated OCI and recognized in income are recorded in (a) cost of products sold or (b) interest expense. (2) Mark to market gains and losses recognized in income are recorded in interest and sundry income (expense). For cash flow hedges, the amount of ineffectiveness recognized in interest and sundry income (expense) was nominal for the periods ended September 30 , 2015 and 2014 . There were no fair value hedges in 2015 and 2014 . The net amount of unrealized gain or loss on derivative instruments included in accumulated OCI related to contracts maturing and expected to be realized during the next twelve months is nominal at September 30, 2015 . |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2015 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | STOCKHOLDERS’ EQUITY Other Comprehensive Income (Loss) The following table summarizes our other comprehensive income (loss) and related tax effects for the periods presented: Three Months Ended September 30, 2015 2014 Millions of dollars Pre-tax Tax Effect Net Pre-tax Tax Effect Net Currency translation adjustments $ (197 ) $ — $ (197 ) $ (198 ) $ — $ (198 ) Cash flow hedges (10 ) 2 (8 ) 11 (4 ) 7 Pension and other postretirement benefits plans 9 (4 ) 5 3 (2 ) 1 Available for sale securities (5 ) — (5 ) (6 ) — (6 ) Other comprehensive loss (203 ) (2 ) (205 ) (190 ) (6 ) (196 ) Less: Other comprehensive loss available to noncontrolling interests (6 ) — (6 ) (3 ) — (3 ) Other comprehensive loss available to Whirlpool $ (197 ) $ (2 ) $ (199 ) $ (187 ) $ (6 ) $ (193 ) Nine Months Ended September 30, 2015 2014 Millions of dollars Pre-tax Tax Effect Net Pre-tax Tax Effect Net Currency translation adjustments $ (343 ) $ — $ (343 ) $ (164 ) $ — $ (164 ) Cash flow hedges (34 ) 8 (26 ) 21 (8 ) 13 Pension and other postretirement benefits plans (17 ) 8 (9 ) (11 ) 6 (5 ) Available for sale securities (1 ) — (1 ) 1 — 1 Other comprehensive income (loss) (395 ) 16 (379 ) (153 ) (2 ) (155 ) Less: Other comprehensive loss available to noncontrolling interests (8 ) — (8 ) (2 ) — (2 ) Other comprehensive income (loss) available to Whirlpool $ (387 ) $ 16 $ (371 ) $ (151 ) $ (2 ) $ (153 ) Reclassifications Out of Accumulated Other Comprehensive Income (Loss) The following table provides the reclassification adjustments out of accumulated other comprehensive loss, by component, that was included in net earnings for the three and nine months ended September 30, 2015 : Three Months Ended Nine Months Ended Millions of dollars Gain Reclassified Gain Reclassified Classification in Earnings Cash flow hedges, pre-tax $ (2 ) $ (4 ) Cost of products sold Pension and postretirement benefits, pre-tax (6 ) (27 ) Cost of products sold / Selling, general and administrative The following table summarizes the changes in stockholders’ equity for the period presented: Millions of dollars Total Whirlpool Common Stockholders Noncontrolling Interests Stockholders' equity, December 31, 2014 $ 5,796 $ 4,885 $ 911 Net earnings 633 603 30 Other comprehensive loss (379 ) (371 ) (8 ) Comprehensive income 254 232 22 Treasury stock (95 ) (95 ) — Additional paid-in capital 42 42 — Dividends declared on common stock (208 ) (201 ) (7 ) Stockholders' equity, September 30, 2015 $ 5,789 $ 4,863 $ 926 Net Earnings per Share Diluted net earnings per share of common stock include the dilutive effect of stock options and other share-based compensation plans. Basic and diluted net earnings per share of common stock for the periods presented were calculated as follows: Three Months Ended September 30, Nine Months Ended September 30, Millions of dollars and shares 2015 2014 2015 2014 Numerator for basic and diluted earnings per share - Net earnings available to Whirlpool $ 235 $ 230 $ 603 $ 569 Denominator for basic earnings per share – weighted-average shares 78.8 78.4 78.9 78.3 Effect of dilutive securities – share-based compensation 0.9 1.2 1.0 1.1 Denominator for diluted earnings per share – adjusted weighted-average shares 79.7 79.6 79.9 79.4 Anti-dilutive stock options/awards excluded from earnings per share 0.3 0.2 0.2 0.3 Repurchase Program On April 14, 2014, our Board of Directors authorized a share repurchase program of up to $500 million . Share repurchases are made from time to time on the open market as conditions warrant. The program does not obligate us to repurchase any of our shares. During the nine months ended September 30, 2015 , we repurchased 520,600 shares at an aggregate purchase price of approximately $95 million under this program. At September 30, 2015 , there were approximately $380 million in remaining funds authorized under this program. |
Restructuring Charges
Restructuring Charges | 9 Months Ended |
Sep. 30, 2015 | |
Restructuring Charges [Abstract] | |
Restructuring Charges | RESTRUCTURING CHARGES During 2014 and the nine months ended September 30, 2015 , we announced the following restructuring plans: (a) the closure of a microwave oven manufacturing facility and other organizational efficiency actions in EMEA and Latin America, (b) organizational integration activities in China and Europe to support the integration of the acquisitions of Whirlpool China and Indesit, and (c) the closure of a research and development facility in Germany in 2016. In the second quarter of 2015, we committed to a restructuring plan to integrate our Italian legacy operations with those of Indesit. The industrial restructuring plan, which was approved by the relevant labor unions in July 2015 and signed by the Italian government in August 2015, provides for the closure or repurposing of certain manufacturing facilities and headcount reductions at other facilities. In addition, the restructuring plan provides for headcount reductions in the salaried employee workforce. We estimate that we will incur up to €179 million (approximately $200 million as of September 30, 2015 ) in employee-related costs, €25 million (approximately $28 million as of September 30, 2015 ) in asset impairment costs, and €37 million (approximately $41 million as of September 30, 2015 ) in other associated costs in connection with these actions. Completion of these plans is expected by the end of 2018. We estimate €209 million (approximately $233 million as of September 30, 2015 ) of the estimated €241 million total cost will result in future cash expenditures. The following table summarizes the change in our combined restructuring liability for the period ended September 30, 2015 : Millions of dollars December 31, Charge to Earnings Cash Paid Non-cash and Other Revision of Estimate September 30, Employee termination costs $ 58 $ 110 $ (98 ) $ — $ 3 $ 73 Asset impairment costs — 14 — (14 ) — — Facility exit costs 4 7 (6 ) — — 5 Other exit costs 16 14 (15 ) — — 15 Total $ 78 $ 145 $ (119 ) $ (14 ) $ 3 $ 93 The following table summarizes the restructuring charges by operating segment as of September 30, 2015 : Millions of dollars September 30, North America $ 8 Latin America 22 EMEA 108 Corporate / Other 7 Total $ 145 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Income tax expense was $17 million and $116 million for the three and nine months ended September 30, 2015 compared to income tax expense of $26 million and $126 million in the same periods of 2014 . For the three and nine months ended September 30, 2015 , changes in the effective tax rate from the prior period include tax planning strategies made available in 2015 resulting in releases of tax valuation allowances. The following table summarizes the difference between income tax expense at the United States statutory rate of 35% and the income tax expense at effective worldwide tax rates for the respective periods: Three Months Ended September 30, Nine Months Ended September 30, Millions of dollars 2015 2014 2015 2014 Earnings before income taxes $ 267 $ 261 $ 749 $ 710 Income tax expense computed at United States statutory tax rate 93 91 262 249 Valuation allowance release (68 ) (25 ) (126 ) (38 ) U.S. foreign income items, net of credits (18 ) (34 ) (32 ) (59 ) Foreign government tax incentive (including BEFIEX in 2014) — (10 ) (8 ) (20 ) Other 10 4 20 (6 ) Income tax expense computed at effective worldwide tax rates $ 17 $ 26 $ 116 $ 126 At the end of each interim period, we make our best estimate of the effective tax rate expected to be applicable for the full fiscal year and the impact of discrete items, if any, and adjust the quarterly rate as necessary. |
Pension and Other Postretiremen
Pension and Other Postretirement Benefit Plans | 9 Months Ended |
Sep. 30, 2015 | |
General Discussion of Pension and Other Postretirement Benefits [Abstract] | |
Pension and Other Postretirement Benefit Plans | PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS The following table summarizes the components of net periodic pension cost and the cost of other postretirement benefits for the periods presented: Three Months Ended September 30, United States Foreign Pension Benefits Other Postretirement Millions of dollars 2015 2014 2015 2014 2015 2014 Service cost $ 1 $ 1 $ 1 $ 1 $ 1 $ 1 Interest cost 37 42 8 4 4 7 Expected return on plan assets (48 ) (49 ) (8 ) (2 ) — — Amortization: Actuarial loss 13 11 1 1 — — Prior service credit — — — — (5 ) (10 ) Settlement and curtailment (gain) loss — — 1 — (16 ) — Net periodic benefit cost (credit) $ 3 $ 5 $ 3 $ 4 $ (16 ) $ (2 ) Nine Months Ended September 30, United States Foreign Pension Benefits Other Postretirement Millions of dollars 2015 2014 2015 2014 2015 2014 Service cost $ 2 $ 2 $ 4 $ 4 $ 2 $ 2 Interest cost 112 126 23 13 14 19 Expected return on plan assets (143 ) (145 ) (25 ) (8 ) — — Amortization: Actuarial loss 40 32 4 4 — — Prior service credit (2 ) (2 ) — — (19 ) (29 ) Settlement and curtailment (gain) loss — — 13 2 (63 ) — Net periodic benefit cost (credit) $ 9 $ 13 $ 19 $ 15 $ (66 ) $ (8 ) During the first quarter of 2015, we recognized approximately $47 million from a curtailment gain due to the elimination of amounts credited to notional retiree health accounts for certain employees under age 50. The curtailment gain was recognized in our Consolidated Condensed Statement of Comprehensive Income with $43 million recorded in cost of products sold and the remaining balance in selling, general and administrative, with an offset to accumulated other comprehensive loss, net of tax. During the third quarter of 2015, we recognized approximately $16 million from a curtailment gain due to the elimination of retiree medical eligibility for certain employees under age 50. The curtailment gain was recognized in our Consolidated Condensed Statement of Comprehensive Income with $11 million recorded in cost of products sold and the remaining balance in selling, general and administrative, with an offset to accumulated other comprehensive loss, net of tax. |
Operating Segment Information
Operating Segment Information | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Operating Segment Information | OPERATING SEGMENT INFORMATION Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated on a regular basis by the chief operating decision maker, or decision making group, in deciding how to allocate resources to an individual segment and in assessing performance. We identify such segments based upon geographical regions of operations because each operating segment manufactures home appliances and related components, but serves strategically different markets. The chief operating decision maker evaluates performance based upon each segment’s operating income, which is defined as income before interest and sundry income (expense), interest expense, income taxes, noncontrolling interests, intangible asset impairment and restructuring costs. Total assets by segment are those assets directly associated with the respective operating activities. The “Other/Eliminations” column primarily includes corporate expenses, assets and eliminations, as well as restructuring costs and intangible asset impairments, if any. Intersegment sales are eliminated within each region except compressor sales out of Latin America, which are included in Other/Eliminations. The tables below summarize performance by operating segment for the periods presented: Three Months Ended September 30, OPERATING SEGMENTS Millions of dollars North America Latin America EMEA Asia Other/ Eliminations Total Whirlpool Net sales 2015 $ 2,791 $ 751 $ 1,452 $ 346 $ (63 ) $ 5,277 2014 2,792 1,131 785 157 (41 ) 4,824 Intersegment sales 2015 51 55 9 77 (192 ) — 2014 54 43 19 70 (186 ) — Depreciation and amortization 2015 64 13 47 15 26 165 2014 73 22 22 5 14 136 Operating profit (loss) 2015 349 31 32 24 (107 ) 329 2014 304 118 9 (8 ) (88 ) 335 Total assets September 30, 2015 7,945 2,304 7,479 2,743 (848 ) 19,623 December 31, 2014 7,736 2,917 7,597 2,734 (982 ) 20,002 Capital expenditures 2015 52 26 36 (9 ) 18 123 2014 72 40 22 3 20 157 Nine Months Ended September 30, OPERATING SEGMENTS Millions of dollars North America Latin America EMEA Asia Other/ Eliminations Total Whirlpool Net sales 2015 $ 7,819 $ 2,504 $ 4,059 $ 1,105 $ (156 ) $ 15,331 2014 7,798 3,410 2,251 534 (124 ) 13,869 Intersegment sales 2015 170 157 34 205 (566 ) — 2014 169 128 68 201 (566 ) — Depreciation and amortization 2015 195 50 154 46 51 496 2014 194 66 59 16 62 397 Operating profit (loss) 2015 912 126 100 75 (308 ) 905 2014 817 328 18 1 (257 ) 907 Total assets September 30, 2015 7,945 2,304 7,479 2,743 (848 ) 19,623 December 31, 2014 7,736 2,917 7,597 2,734 (982 ) 20,002 Capital expenditures 2015 169 69 108 9 36 391 2014 187 102 70 10 53 422 |
Basis of Presentation Significa
Basis of Presentation Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
General Information | General Information The accompanying unaudited Consolidated Condensed Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information, and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all information or footnotes required by GAAP for complete financial statements. As a result, this Form 10-Q should be read in conjunction with the Consolidated Financial Statements and accompanying Notes in our Form 10-K for the year ended December 31, 2014 . Management believes that the accompanying Consolidated Condensed Financial Statements reflect all adjustments, including normal recurring items, considered necessary for a fair presentation of the interim periods. |
Consolidation | We have eliminated all material intercompany transactions in our Consolidated Condensed Financial Statements. We do not consolidate the financial statements of any company in which we have an ownership interest of 50% or less unless that company is deemed to be a variable interest entity ("VIE") of which we are the primary beneficiary. Certain VIEs are consolidated when the company is the primary beneficiary of these entities and has the ability to directly impact the activities of these entities. |
Reclassifications | Certain prior year amounts in the Consolidated Condensed Financial Statements have been reclassified to conform with current year presentation. |
New Accounting Pronouncements | New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, "Revenue from Contracts with Customers (Topic 606)", which supersedes the revenue recognition requirements in ASC 605, Revenue Recognition. This ASU is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. The FASB has approved a one year deferral of this standard, and this pronouncement is now effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period and is to be applied using one of two retrospective application methods, with early application not permitted. We have not yet determined the potential effects from this pronouncement on our Consolidated Financial Statements. In April 2015, FASB issued ASU No. 2015-03, Interest - "Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs". The guidance requires debt issuance costs related to a recognized debt liability be presented on the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with the presentation for debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this ASU. In August 2015, the FASB issued ASU No. 2015-15, Interest-Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements - Amendments to SEC Paragraphs Pursuant to Staff Announcements at the June 2015 EITF Meeting. ASU 2015-15 amends Subtopic 835-30 to include that the SEC would not object to the deferral and presentation of debt issuance costs as an asset and subsequent amortization of debt issuance costs over the term of the line-of-credit arrangement, whether or not there are any outstanding borrowings on the line-of-credit arrangement. This guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2015, and must be applied on a retrospective basis with early adoption permitted. The adoption is not expected to have a material impact on our Consolidated Financial Statements. In July 2015, the FASB issued ASU No. 2015-12, "Plan Accounting—Defined Benefit Pension Plans (Topic 960), Defined Contribution Pension Plans (Topic 962) Health and Welfare Benefit Plans (Topic 965)". There are three parts to the ASU that aim to simplify the accounting and presentation of plan accounting. Part I of this ASU requires fully benefit-responsive investment contracts to be measured at contract value instead of the current fair value measurement. Part II of this ASU requires investments (both participant-directed and nonparticipant-directed investments) of employee benefit plans be grouped only by general type, eliminating the need to disaggregate the investments in multiple ways. Part III of this ASU provides a similar measurement date practical expedient for employee benefit plans as available in ASU No. 2015-04, which allows employers to measure defined benefit plan assets on a month-end date that is nearest to the year’s fiscal year-end when the fiscal period does not coincide with a month-end. Parts I and II of the new guidance should be applied on a retrospective basis. Part III of the new guidance should be applied on a prospective basis. This ASU is effective for fiscal years beginning after December 15, 2015, and for interim periods within those fiscal years. The adoption is not expected to have a material impact on our Consolidated Financial Statements. In July 2015, the FASB issued ASU No. 2015-11, "Simplifying the Measurement of Inventory", which amends ASC 330, Inventory. This ASU simplifies the subsequent measurement of inventory by using only the lower of cost and net realizable value. The ASU does not apply to inventory measured using last-in, first-out method. This guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2016, and must be applied on a retrospective basis with early adoption permitted. The adoption is not expected to have a material impact on our Consolidated Financial Statements. In September 2015, the FASB issued ASU No. 2015-16, Business Combinations (Topic 805): "Simplifying the Accounting for Measurement-Period Adjustments", which eliminates the requirement for an acquirer in a business combination to account for measurement-period adjustments retrospectively. Under this ASU, acquirers must recognize measurement-period adjustments in the period in which they determine the amounts, including the effect on earnings of any amounts they would have recorded in previous periods if the accounting had been completed at the acquisition date. This guidance is effective for fiscal years beginning after December 15, 2016, with early adoption permitted. The Company elected to early adopt this ASU in the third quarter of 2015. As a result, we have not retrospectively accounted for the measurement-period adjustments determined in the third quarter of 2015 related to the corrective action described in Note 2 in our Consolidated Financial Statements. |
Accounting Pronouncements Issued but Not Yet Effective | All other issued but not yet effective accounting pronouncements are not expected to have a material impact on our Consolidated Financial Statements. |
Fair Value of Financial Instruments | Fair value is measured based on an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions market participants would use in pricing an asset or liability. Assets and liabilities measured at fair value are based on a market valuation approach using prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. As a basis for considering such assumptions, a three-tiered fair value hierarchy is established, which prioritizes the inputs used in measuring fair value as follows: (Level 1) observable inputs such as quoted prices in active markets; (Level 2) inputs, other than the quoted prices in active markets that are observable, either directly or indirectly; and (Level 3) unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. |
Derivatives | Derivative instruments are accounted for at fair value based on market rates. Derivatives where we elect hedge accounting are designated as either cash flow or fair value hedges. Derivatives that are not accounted for based on hedge accounting are marked to market through earnings. The accounting for changes in the fair value of a derivative depends on the intended use and designation of the derivative instrument. Hedging ineffectiveness and a net earnings impact occur when the change in the fair value of the hedge does not offset the change in the fair value of the hedged item. The ineffective portion of the gain or loss is recognized in earnings. |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Business Combinations [Abstract] | |
Schedule of Preliminary Allocation of Purchase Price | The following table presents the final allocation of purchase price related to the Whirlpool China and Indesit acquisitions, as of their respective dates of acquisition. Adjustments made to the opening balance sheet in the nine months ended September 30, 2015 include an $8 million increase to Whirlpool China 's goodwill resulting primarily from a reassessment of deferred tax assets, a $296 million increase to Indesit's goodwill primarily reflecting the recognition of a corrective action on certain heritage Indesit products, a revaluation of current and deferred tax liabilities, an increase in trade partner incentives, and an increase in environmental liabilities. Additional information about the corrective action can be found in Note 7 in the Company's Consolidated Condensed Financial Statements. In addition, we have performed certain balance sheet reclassifications between notes payable and other current liabilities and between accounts payable and other current liabilities, in order to conform to Whirlpool's financial statement presentation. The effect of these adjustments would not have a material impact to net earnings for the nine months ended September 30, 2015 if they would have been previously recognized as of the acquisition date. Millions of dollars Whirlpool China (1) Indesit Cash $ 98 $ 77 Accounts receivable 78 886 Inventory 135 471 Other current assets 354 288 Property, plant and equipment 169 854 Goodwill 459 963 Identified intangible assets 372 822 Other non-current assets 313 185 Total assets acquired 1,978 4,546 Accounts payable (181 ) (866 ) Short-term notes payable — (557 ) Other current liabilities (307 ) (410 ) Non-current liabilities (142 ) (1,276 ) Total liabilities assumed (630 ) (3,109 ) Net assets acquired $ 1,348 $ 1,437 (1) We purchased a 51% controlling interest in Whirlpool China 's net assets described in the table; the non-controlling interest was valued at $801 million , the market value of the stock price of the shares purchased on the date of acquisition. |
Summary of Preliminary Estimated Fair Value of Identifiable Intangible Assets Acquired | The Company's final estimates regarding the fair value of Whirlpool China and Indesit's identifiable intangible assets are presented below. These estimates did not change in the nine months ended September 30, 2015 : Whirlpool China Indesit Millions of dollars Estimated Fair Value Estimated Useful Life Estimated Fair Value Estimated Useful Life Trademarks-indefinite lived $ 42 $ 535 Customer relationships 230 13-16 years 134 5-19 years Patents and other intangibles 100 3-10 years 153 6-15 years $ 372 $ 822 |
Summary of Pro Forma Information | The following table provides pro forma results of operations for the nine months ended September 30, 2014 , as if Whirlpool China and Indesit had been acquired as of January 1, 2014. The pro forma results include certain purchase accounting adjustments such as the estimated changes in depreciation and amortization expense on acquired tangible and intangible assets as well as interest expense on borrowings used to finance the acquisitions. Additionally, the pro forma results include adjustments to convert Whirlpool China and Indesit’s historical results from local accounting standards to U.S. GAAP. Pro forma results do not include any anticipated cost savings or other effects of the planned integration of these acquisitions. Accordingly, such amounts are not necessarily indicative of the results that would have occurred if the acquisition had occurred on the dates indicated or that may result in the future. Nine Months Ended September 30, Millions of dollars, except per share data 2014 Net sales $ 17,046 Net earnings available to Whirlpool $ 599 Diluted net earnings per share $ 7.53 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets Measured on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis at September 30, 2015 and December 31, 2014 are in the following table: Fair Value Total Cost Basis Level 1 Level 2 Total Millions of dollars 2015 2014 2015 2014 2015 2014 2015 2014 Money market funds (1) $ 15 $ 21 $ 15 $ 21 $ — $ — $ 15 $ 21 Net derivative contracts — — — — (38 ) (1 ) (38 ) (1 ) Available for sale investments 14 16 23 26 — — 23 26 (1) Money market funds are comprised primarily of government obligations and other first tier obligations. |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Inventory, Net [Abstract] | |
Schedule of Inventory | The following table summarizes our inventory for the periods presented: Millions of dollars September 30, December 31, Finished products $ 2,403 $ 2,189 Raw materials and work in process 687 724 3,090 2,913 Less: excess of FIFO cost over LIFO cost (147 ) (173 ) Total inventories $ 2,943 $ 2,740 |
Property, Plant & Equipment (Ta
Property, Plant & Equipment (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property, Plant and Equipment | The following table summarizes our property, plant and equipment as of September 30, 2015 and December 31, 2014 : Millions of dollars September 30, December 31, Land $ 133 $ 142 Buildings 1,592 1,616 Machinery and equipment 7,923 8,182 Accumulated depreciation (5,964 ) (5,959 ) Property, plant and equipment, net $ 3,684 $ 3,981 |
Financing Arrangements (Tables)
Financing Arrangements (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Financing Arrangements [Abstract] | |
Schedule of Notes Payable | The following table summarizes the carrying value of notes payable at September 30, 2015 and December 31, 2014 : Millions of dollars September 30, 2015 December 31, 2014 Commercial paper $ 656 $ 387 Debt securitization — 35 Short-term borrowings to banks 147 147 Total notes payable $ 803 $ 569 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Product Warranty Reserves | The following table summarizes the changes in total product warranty reserves for the periods presented: Nine Months Ended September 30, Millions of dollars 2015 2014 Balance at January 1 $ 235 $ 191 Issuances/accruals during the period 474 194 Settlements made during the period (203 ) (206 ) Balance at September 30 $ 506 $ 179 Current portion $ 326 $ 141 Non-current portion 180 38 Total $ 506 $ 179 |
Hedges and Derivative Financi26
Hedges and Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
General Discussion of Derivative Instruments and Hedging Activities [Abstract] | |
Schedule of Derivative Instruments | The following table summarizes our outstanding derivative contracts and their effects on our Consolidated Condensed Balance Sheets at September 30, 2015 and December 31, 2014 : Fair Value of Type of Hedge (1) Notional Amount Hedge Assets Hedge Liabilities Maximum Term (Months) Millions of dollars 2015 2014 2015 2014 2015 2014 2015 2014 Derivatives accounted for as hedges Foreign exchange forwards/options $ 943 $ 874 $ 35 $ 27 $ 13 $ 8 (CF) 15 17 Commodity swaps/options 333 375 — 4 64 29 (CF) 35 36 Total derivatives accounted for as hedges $ 35 $ 31 $ 77 $ 37 Derivatives not accounted for as hedges Foreign exchange forwards/options $ 2,410 $ 2,358 $ 26 $ 34 $ 22 $ 29 N/A 8 10 Commodity swaps/options 5 8 — — — — N/A 8 4 Total derivatives not accounted for as hedges 26 34 22 29 Total derivatives $ 61 $ 65 $ 99 $ 66 Current $ 61 $ 64 $ 82 $ 59 Noncurrent — 1 17 7 Total derivatives $ 61 $ 65 $ 99 $ 66 (1) Derivatives accounted for as hedges are considered cash flow (CF) hedges. |
Schedule of Effects of Derivative Instruments on Consolidated Statements of Income | The following tables summarize the effects of derivative instruments on our Consolidated Condensed Statements of Comprehensive Income for the three and nine months ended as follows: Three Months Ended September 30, Gain (Loss) Gain Reclassified from OCI into Earnings (Effective Portion) (1) Cash Flow Hedges - Millions of dollars 2015 2014 2015 2014 Foreign exchange $ 41 $ 23 $ 18 $ 4 (a) Commodity swaps/options (49 ) (8 ) (16 ) — (a) $ (8 ) $ 15 $ 2 $ 4 Three Months Ended September 30, Gain Recognized on Derivatives not Accounted for as Hedges (2) Derivatives not Accounted for as Hedges - Millions of dollars 2015 2014 Foreign exchange forwards/options $ (13 ) $ (33 ) Nine Months Ended September 30, Gain (Loss) Gain Reclassified from OCI into Earnings (Effective Portion) (1) Cash Flow Hedges - Millions of dollars 2015 2014 2015 2014 Foreign exchange $ 51 $ 27 $ 42 $ 13 (a) Commodity swaps/options (81 ) (2 ) (37 ) (8 ) (a) Interest rate derivatives — — (1 ) (1 ) (b) $ (30 ) $ 25 $ 4 $ 4 Nine Months Ended September 30, Gain Recognized on Derivatives not Accounted for as Hedges (2) Derivatives not Accounted for as Hedges - Millions of dollars 2015 2014 Foreign exchange forwards/options $ 19 $ 2 (1) Gains and losses reclassified from accumulated OCI and recognized in income are recorded in (a) cost of products sold or (b) interest expense. (2) Mark to market gains and losses recognized in income are recorded in interest and sundry income (expense). |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Other Comprehensive Income | The following table summarizes our other comprehensive income (loss) and related tax effects for the periods presented: Three Months Ended September 30, 2015 2014 Millions of dollars Pre-tax Tax Effect Net Pre-tax Tax Effect Net Currency translation adjustments $ (197 ) $ — $ (197 ) $ (198 ) $ — $ (198 ) Cash flow hedges (10 ) 2 (8 ) 11 (4 ) 7 Pension and other postretirement benefits plans 9 (4 ) 5 3 (2 ) 1 Available for sale securities (5 ) — (5 ) (6 ) — (6 ) Other comprehensive loss (203 ) (2 ) (205 ) (190 ) (6 ) (196 ) Less: Other comprehensive loss available to noncontrolling interests (6 ) — (6 ) (3 ) — (3 ) Other comprehensive loss available to Whirlpool $ (197 ) $ (2 ) $ (199 ) $ (187 ) $ (6 ) $ (193 ) Nine Months Ended September 30, 2015 2014 Millions of dollars Pre-tax Tax Effect Net Pre-tax Tax Effect Net Currency translation adjustments $ (343 ) $ — $ (343 ) $ (164 ) $ — $ (164 ) Cash flow hedges (34 ) 8 (26 ) 21 (8 ) 13 Pension and other postretirement benefits plans (17 ) 8 (9 ) (11 ) 6 (5 ) Available for sale securities (1 ) — (1 ) 1 — 1 Other comprehensive income (loss) (395 ) 16 (379 ) (153 ) (2 ) (155 ) Less: Other comprehensive loss available to noncontrolling interests (8 ) — (8 ) (2 ) — (2 ) Other comprehensive income (loss) available to Whirlpool $ (387 ) $ 16 $ (371 ) $ (151 ) $ (2 ) $ (153 ) |
Reclassifications Out of Accumulated Other Comprehensive Income | The following table provides the reclassification adjustments out of accumulated other comprehensive loss, by component, that was included in net earnings for the three and nine months ended September 30, 2015 : Three Months Ended Nine Months Ended Millions of dollars Gain Reclassified Gain Reclassified Classification in Earnings Cash flow hedges, pre-tax $ (2 ) $ (4 ) Cost of products sold Pension and postretirement benefits, pre-tax (6 ) (27 ) Cost of products sold / Selling, general and administrative |
Schedule of Stockholders Equity | The following table summarizes the changes in stockholders’ equity for the period presented: Millions of dollars Total Whirlpool Common Stockholders Noncontrolling Interests Stockholders' equity, December 31, 2014 $ 5,796 $ 4,885 $ 911 Net earnings 633 603 30 Other comprehensive loss (379 ) (371 ) (8 ) Comprehensive income 254 232 22 Treasury stock (95 ) (95 ) — Additional paid-in capital 42 42 — Dividends declared on common stock (208 ) (201 ) (7 ) Stockholders' equity, September 30, 2015 $ 5,789 $ 4,863 $ 926 |
Schedule of Calculation of Numerator and Denominator in Earnings Per Share | Basic and diluted net earnings per share of common stock for the periods presented were calculated as follows: Three Months Ended September 30, Nine Months Ended September 30, Millions of dollars and shares 2015 2014 2015 2014 Numerator for basic and diluted earnings per share - Net earnings available to Whirlpool $ 235 $ 230 $ 603 $ 569 Denominator for basic earnings per share – weighted-average shares 78.8 78.4 78.9 78.3 Effect of dilutive securities – share-based compensation 0.9 1.2 1.0 1.1 Denominator for diluted earnings per share – adjusted weighted-average shares 79.7 79.6 79.9 79.4 Anti-dilutive stock options/awards excluded from earnings per share 0.3 0.2 0.2 0.3 |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Restructuring Charges [Abstract] | |
Schedule Of Restructuring Liability And Restructuring Activity | The following table summarizes the change in our combined restructuring liability for the period ended September 30, 2015 : Millions of dollars December 31, Charge to Earnings Cash Paid Non-cash and Other Revision of Estimate September 30, Employee termination costs $ 58 $ 110 $ (98 ) $ — $ 3 $ 73 Asset impairment costs — 14 — (14 ) — — Facility exit costs 4 7 (6 ) — — 5 Other exit costs 16 14 (15 ) — — 15 Total $ 78 $ 145 $ (119 ) $ (14 ) $ 3 $ 93 |
Schedule of Restructuring Costs, by Operating Segment | The following table summarizes the restructuring charges by operating segment as of September 30, 2015 : Millions of dollars September 30, North America $ 8 Latin America 22 EMEA 108 Corporate / Other 7 Total $ 145 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation | The following table summarizes the difference between income tax expense at the United States statutory rate of 35% and the income tax expense at effective worldwide tax rates for the respective periods: Three Months Ended September 30, Nine Months Ended September 30, Millions of dollars 2015 2014 2015 2014 Earnings before income taxes $ 267 $ 261 $ 749 $ 710 Income tax expense computed at United States statutory tax rate 93 91 262 249 Valuation allowance release (68 ) (25 ) (126 ) (38 ) U.S. foreign income items, net of credits (18 ) (34 ) (32 ) (59 ) Foreign government tax incentive (including BEFIEX in 2014) — (10 ) (8 ) (20 ) Other 10 4 20 (6 ) Income tax expense computed at effective worldwide tax rates $ 17 $ 26 $ 116 $ 126 |
Pension and Other Postretirem30
Pension and Other Postretirement Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
General Discussion of Pension and Other Postretirement Benefits [Abstract] | |
Schedule of Defined Benefit Plans Disclosures | The following table summarizes the components of net periodic pension cost and the cost of other postretirement benefits for the periods presented: Three Months Ended September 30, United States Foreign Pension Benefits Other Postretirement Millions of dollars 2015 2014 2015 2014 2015 2014 Service cost $ 1 $ 1 $ 1 $ 1 $ 1 $ 1 Interest cost 37 42 8 4 4 7 Expected return on plan assets (48 ) (49 ) (8 ) (2 ) — — Amortization: Actuarial loss 13 11 1 1 — — Prior service credit — — — — (5 ) (10 ) Settlement and curtailment (gain) loss — — 1 — (16 ) — Net periodic benefit cost (credit) $ 3 $ 5 $ 3 $ 4 $ (16 ) $ (2 ) Nine Months Ended September 30, United States Foreign Pension Benefits Other Postretirement Millions of dollars 2015 2014 2015 2014 2015 2014 Service cost $ 2 $ 2 $ 4 $ 4 $ 2 $ 2 Interest cost 112 126 23 13 14 19 Expected return on plan assets (143 ) (145 ) (25 ) (8 ) — — Amortization: Actuarial loss 40 32 4 4 — — Prior service credit (2 ) (2 ) — — (19 ) (29 ) Settlement and curtailment (gain) loss — — 13 2 (63 ) — Net periodic benefit cost (credit) $ 9 $ 13 $ 19 $ 15 $ (66 ) $ (8 ) |
Operating Segment Information (
Operating Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Operating Segment Information | The tables below summarize performance by operating segment for the periods presented: Three Months Ended September 30, OPERATING SEGMENTS Millions of dollars North America Latin America EMEA Asia Other/ Eliminations Total Whirlpool Net sales 2015 $ 2,791 $ 751 $ 1,452 $ 346 $ (63 ) $ 5,277 2014 2,792 1,131 785 157 (41 ) 4,824 Intersegment sales 2015 51 55 9 77 (192 ) — 2014 54 43 19 70 (186 ) — Depreciation and amortization 2015 64 13 47 15 26 165 2014 73 22 22 5 14 136 Operating profit (loss) 2015 349 31 32 24 (107 ) 329 2014 304 118 9 (8 ) (88 ) 335 Total assets September 30, 2015 7,945 2,304 7,479 2,743 (848 ) 19,623 December 31, 2014 7,736 2,917 7,597 2,734 (982 ) 20,002 Capital expenditures 2015 52 26 36 (9 ) 18 123 2014 72 40 22 3 20 157 Nine Months Ended September 30, OPERATING SEGMENTS Millions of dollars North America Latin America EMEA Asia Other/ Eliminations Total Whirlpool Net sales 2015 $ 7,819 $ 2,504 $ 4,059 $ 1,105 $ (156 ) $ 15,331 2014 7,798 3,410 2,251 534 (124 ) 13,869 Intersegment sales 2015 170 157 34 205 (566 ) — 2014 169 128 68 201 (566 ) — Depreciation and amortization 2015 195 50 154 46 51 496 2014 194 66 59 16 62 397 Operating profit (loss) 2015 912 126 100 75 (308 ) 905 2014 817 328 18 1 (257 ) 907 Total assets September 30, 2015 7,945 2,304 7,479 2,743 (848 ) 19,623 December 31, 2014 7,736 2,917 7,597 2,734 (982 ) 20,002 Capital expenditures 2015 169 69 108 9 36 391 2014 187 102 70 10 53 422 |
Acquisitions Whirlpool China (D
Acquisitions Whirlpool China (Details) $ in Millions, ¥ in Billions | Oct. 24, 2014CNY (¥) | Oct. 24, 2014USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) |
Business Acquisition [Line Items] | ||||
Purchase price | $ 0 | $ 75 | ||
Whirlpool China | ||||
Business Acquisition [Line Items] | ||||
Percentage of voting interest acquired | 51.00% | 51.00% | ||
Purchase price | ¥ 3.4 | $ 551 |
Acquisitions Indesit Company S.
Acquisitions Indesit Company S.p.A. (Details) | Dec. 03, 2014EUR (€) | Dec. 03, 2014USD ($) | Mar. 12, 2015EUR (€) | Mar. 12, 2015USD ($) | Nov. 04, 2014USD ($) |
Senior Notes | |||||
Business Acquisition [Line Items] | |||||
Debt instrument, face amount | € 500,000,000 | $ 525,000,000 | $ 650,000,000 | ||
Indesit | |||||
Business Acquisition [Line Items] | |||||
Payments to acquire business, net of cash acquired | € 1,100,000,000 | $ 1,400,000,000 |
Acquisitions Purchase Price All
Acquisitions Purchase Price Allocation (Details) € in Millions, $ in Millions | Oct. 24, 2014USD ($) | Sep. 30, 2015EUR (€) | Sep. 30, 2015USD ($) | Sep. 30, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 03, 2014USD ($) |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 3,039 | $ 3,039 | $ 2,807 | |||
Whirlpool China | ||||||
Business Acquisition [Line Items] | ||||||
Increase made to goodwill | 8 | |||||
Cash | $ 98 | |||||
Accounts receivable | 78 | |||||
Inventory | 135 | |||||
Other current assets | 354 | |||||
Property, plant and equipment | 169 | |||||
Goodwill | 459 | |||||
Identified intangible assets | 372 | |||||
Other non-current assets | 313 | |||||
Total assets acquired | 1,978 | |||||
Accounts payable | (181) | |||||
Short-term notes payable | 0 | |||||
Other current liabilities | (307) | |||||
Non-current liabilities | (142) | |||||
Total liabilities assumed | (630) | |||||
Net assets acquired | $ 1,348 | |||||
Percentage of voting interest acquired | 51.00% | |||||
Non-controlling interest, value | $ 801 | |||||
Indesit | ||||||
Business Acquisition [Line Items] | ||||||
Increase made to goodwill | € 210 | $ 235 | $ 296 | |||
Cash | $ 77 | |||||
Accounts receivable | 886 | |||||
Inventory | 471 | |||||
Other current assets | 288 | |||||
Property, plant and equipment | 854 | |||||
Goodwill | 963 | |||||
Identified intangible assets | 822 | |||||
Other non-current assets | 185 | |||||
Total assets acquired | 4,546 | |||||
Accounts payable | (866) | |||||
Short-term notes payable | (557) | |||||
Other current liabilities | (410) | |||||
Non-current liabilities | (1,276) | |||||
Total liabilities assumed | (3,109) | |||||
Net assets acquired | $ 1,437 |
Acquisitions Identifiable Intan
Acquisitions Identifiable Intangible Assets Acquired (Details) - USD ($) $ in Millions | Dec. 03, 2014 | Oct. 24, 2014 |
Whirlpool China | ||
Business Acquisition [Line Items] | ||
Indefinite-lived intangible assets acquired | $ 42 | |
Identified intangible assets | 372 | |
Whirlpool China | Customer relationships | ||
Business Acquisition [Line Items] | ||
Finite-lived intangible assets acquired | $ 230 | |
Whirlpool China | Customer relationships | Minimum | ||
Business Acquisition [Line Items] | ||
Intangible asset, useful life | 13 years | |
Whirlpool China | Customer relationships | Maximum | ||
Business Acquisition [Line Items] | ||
Intangible asset, useful life | 16 years | |
Whirlpool China | Patents and other intangibles | ||
Business Acquisition [Line Items] | ||
Finite-lived intangible assets acquired | $ 100 | |
Whirlpool China | Patents and other intangibles | Minimum | ||
Business Acquisition [Line Items] | ||
Intangible asset, useful life | 3 years | |
Whirlpool China | Patents and other intangibles | Maximum | ||
Business Acquisition [Line Items] | ||
Intangible asset, useful life | 10 years | |
Indesit | ||
Business Acquisition [Line Items] | ||
Indefinite-lived intangible assets acquired | $ 535 | |
Identified intangible assets | 822 | |
Indesit | Customer relationships | ||
Business Acquisition [Line Items] | ||
Finite-lived intangible assets acquired | $ 134 | |
Indesit | Customer relationships | Minimum | ||
Business Acquisition [Line Items] | ||
Intangible asset, useful life | 5 years | |
Indesit | Customer relationships | Maximum | ||
Business Acquisition [Line Items] | ||
Intangible asset, useful life | 19 years | |
Indesit | Patents and other intangibles | ||
Business Acquisition [Line Items] | ||
Finite-lived intangible assets acquired | $ 153 | |
Indesit | Patents and other intangibles | Minimum | ||
Business Acquisition [Line Items] | ||
Intangible asset, useful life | 6 years | |
Indesit | Patents and other intangibles | Maximum | ||
Business Acquisition [Line Items] | ||
Intangible asset, useful life | 15 years |
Acquisitions Pro Forma (Details
Acquisitions Pro Forma (Details) - Hefei Sanyo and Indesit $ / shares in Units, $ in Millions | 9 Months Ended |
Sep. 30, 2014USD ($)$ / shares | |
Business Acquisition [Line Items] | |
Net sales | $ 17,046 |
Net earnings available to Whirlpool | $ 599 |
Diluted net earnings per share (USD per share) | $ / shares | $ 7.53 |
Acquisitions Acquisition Relate
Acquisitions Acquisition Related Costs (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2014USD ($) | |
Selling, General and Administrative Expenses | |
Business Acquisition [Line Items] | |
Non-recurring acquisition-related costs and investment expenses | $ 29 |
Whirlpool China | |
Business Acquisition [Line Items] | |
Non-recurring acquisition-related costs and investment expenses | 24 |
Indesit | |
Business Acquisition [Line Items] | |
Non-recurring acquisition-related costs and investment expenses | $ 26 |
Fair Value Measurements Assets
Fair Value Measurements Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | $ 15 | $ 21 |
Net derivative contracts | (38) | (1) |
Available for sale investments | 23 | 26 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 15 | 21 |
Net derivative contracts | 0 | 0 |
Available for sale investments | 23 | 26 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 0 | 0 |
Net derivative contracts | (38) | (1) |
Available for sale investments | 0 | 0 |
Total Cost Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 15 | 21 |
Net derivative contracts | 0 | 0 |
Available for sale investments | $ 14 | $ 16 |
Fair Value Measurements Narrati
Fair Value Measurements Narrative (Details) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, fair value | $ 4,100,000,000 | $ 3,800,000,000 |
Fair Value, Measurements, Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value, net asset (liability) | $ 0 | $ 0 |
Inventories (Schedule of Invent
Inventories (Schedule of Inventory) (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Inventory, Net [Abstract] | ||
Finished products | $ 2,403 | $ 2,189 |
Raw materials and work in process | 687 | 724 |
Gross inventories | 3,090 | 2,913 |
Less: excess of FIFO cost over LIFO cost | (147) | (173) |
Total inventories | $ 2,943 | $ 2,740 |
Percentage of LIFO Inventory | 37.00% | 35.00% |
Property, Plant & Equipment (De
Property, Plant & Equipment (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Abstract] | ||
Land | $ 133 | $ 142 |
Buildings | 1,592 | 1,616 |
Machinery and equipment | 7,923 | 8,182 |
Accumulated depreciation | (5,964) | (5,959) |
Property, plant and equipment, net | 3,684 | $ 3,981 |
Disposed of fully depreciated buildings, machinery and equipment | $ 102 |
Financing Arrangements Narrativ
Financing Arrangements Narrative (Details) | Sep. 25, 2015USD ($) | May. 15, 2015USD ($) | Sep. 30, 2015USD ($) | Mar. 12, 2015EUR (€) | Mar. 12, 2015USD ($) | Dec. 31, 2014EUR (€) | Dec. 31, 2014USD ($) | Nov. 04, 2014USD ($) |
Debt Instrument [Line Items] | ||||||||
Repurchase of notes, purchase price percentage of principle amount | 101.00% | 101.00% | ||||||
Borrowings under credit facility | $ 0 | |||||||
Line of Credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, term | 364 days | |||||||
Line of credit facility, maximum borrowing capacity | $ 500,000,000 | |||||||
Borrowings under credit facility | $ 0 | |||||||
Line of credit facility, unused capacity, commitment fee percentage | 0.125% | |||||||
Maximum rolling twelve month leverage ratio, percent | 325.00% | |||||||
Rolling twelve month interest coverage ratio | 300.00% | |||||||
Line of Credit | London Interbank Offered Rate (LIBOR) | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, basis spread on variable rate | 1.25% | |||||||
Line of Credit | Prime Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, basis spread on variable rate | 0.25% | |||||||
Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 0.625% | 0.625% | ||||||
Debt instrument, face amount | € 500,000,000 | $ 525,000,000 | $ 650,000,000 | |||||
Maytag medium-term note - 5.0%, maturing 2015 | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 5.00% | |||||||
Repayments of debt | $ 200,000,000 | |||||||
Indesit Euro Bonds 4.5% Maturing 2018 | Guaranteed Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal amount assumed | € | € 300,000,000 | |||||||
Interest rate | 4.50% | 4.50% |
Financing Arrangements Notes Pa
Financing Arrangements Notes Payable (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Short-term Debt [Line Items] | ||
Total notes payable | $ 803 | $ 569 |
Commercial paper | ||
Short-term Debt [Line Items] | ||
Total notes payable | 656 | 387 |
Debt securitization | ||
Short-term Debt [Line Items] | ||
Total notes payable | 0 | 35 |
Short-term borrowings to banks | ||
Short-term Debt [Line Items] | ||
Total notes payable | $ 147 | $ 147 |
Commitments and Contingencies44
Commitments and Contingencies (Narrative) (Details) € in Millions, BRL in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 24 Months Ended | ||||||
Sep. 30, 2015EUR (€) | Sep. 30, 2015USD ($) | Sep. 30, 2015EUR (€) | Sep. 30, 2015USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Dec. 31, 2009USD ($) | Dec. 31, 2004USD ($) | Sep. 30, 2015BRL | Sep. 30, 2015USD ($) | Dec. 31, 2013BRL | |
Commitments and Contingencies [Line Items] | |||||||||||
BEFIEX tax credits monetized | $ 0 | $ 14,000,000 | |||||||||
Outstanding BEFIEX tax assessment | BRL 1,500 | $ 380,000,000 | |||||||||
Indesit | |||||||||||
Commitments and Contingencies [Line Items] | |||||||||||
Increase made to goodwill | € 210 | $ 235,000,000 | $ 296,000,000 | ||||||||
Loss contingency, loss in period | € 35 | $ 39,000,000 | |||||||||
Brazil tax matters | |||||||||||
Commitments and Contingencies [Line Items] | |||||||||||
IPI tax credits recognized | $ 26,000,000 | ||||||||||
Special government program settlement | $ 34,000,000 | ||||||||||
Brazil Tax Assessment | 216 | 54,000,000 | |||||||||
CFC tax | |||||||||||
Commitments and Contingencies [Line Items] | |||||||||||
CFC potential exposure | 180 | 45,000,000 | |||||||||
Brazilian government program | |||||||||||
Commitments and Contingencies [Line Items] | |||||||||||
Government program total settlement payment | BRL 38 | 10,000,000 | BRL 75 | ||||||||
Damages from Product Defects | |||||||||||
Commitments and Contingencies [Line Items] | |||||||||||
Loss contingency, estimate of possible loss | € 245 | € 245 | 274,000,000 | ||||||||
Pending Litigation | |||||||||||
Commitments and Contingencies [Line Items] | |||||||||||
Estimate of probable loss, remaining accrued | 23,000,000 | ||||||||||
Installment Payments to be paid through 2015 | $ 15,000,000 |
Commitments and Contingencies45
Commitments and Contingencies (Schedule of Product Warranty Reserves) (Details) - USD ($) $ in Millions | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | ||||
Balance at January 1 | $ 235 | $ 191 | ||
Issuances/accruals during the period | 474 | 194 | ||
Settlements made during the period | (203) | (206) | ||
Balance at September 30 | 506 | 179 | ||
Current portion | $ 326 | $ 141 | ||
Non-current portion | 180 | 38 | ||
Total | $ 235 | $ 191 | $ 506 | $ 179 |
Commitments and Contingencies G
Commitments and Contingencies Guarantees (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Customer Lines Of Credit For Brazilian Subsidiary | ||
Guarantor Obligations [Line Items] | ||
Guarantor obligations, maximum exposure, undiscounted | $ 231,000,000 | $ 492,000,000 |
Guarantee of Indebtedness of Others | ||
Guarantor Obligations [Line Items] | ||
Guarantor obligations, maximum exposure, undiscounted | 2,000,000,000 | $ 2,600,000,000 |
Line of Credit | ||
Guarantor Obligations [Line Items] | ||
Guarantor obligations, maximum exposure, undiscounted | $ 45,000,000 | |
Guarantor obligations, term | 5 years |
Hedges and Derivative Financi47
Hedges and Derivative Financial Instruments (Details) - contract | Sep. 30, 2015 | Dec. 31, 2014 |
General Discussion of Derivative Instruments and Hedging Activities [Abstract] | ||
Number of Interest Rate Derivatives Held | 0 | 0 |
Hedges and Derivative Financi48
Hedges and Derivative Financial Instruments (Schedule of Outstanding Derivative Contracts) (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Derivatives, Fair Value [Line Items] | ||
Fair value of hedged assets | $ 61 | $ 65 |
Fair value of hedged liabilities | 99 | 66 |
Derivative asset at fair value, current | 61 | 64 |
Derivative asset at fair value, noncurrent | 0 | 1 |
Total derivatives, hedge assets at fair value | 61 | 65 |
Derivative liability at fair value, current | 82 | 59 |
Derivative liability at fair value, noncurrent | 17 | 7 |
Total derivatives, hedge liabilities at fair value | 99 | 66 |
Derivatives accounted for as hedges | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of hedged assets | 35 | 31 |
Fair value of hedged liabilities | 77 | 37 |
Derivatives accounted for as hedges | Foreign exchange forwards/options | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 943 | 874 |
Fair value of hedged assets | 35 | 27 |
Fair value of hedged liabilities | $ 13 | $ 8 |
Maximum term of foreign exchange forwards/options | 15 months | 17 months |
Derivatives accounted for as hedges | Commodity swaps/options | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 333 | $ 375 |
Fair value of hedged assets | 0 | 4 |
Fair value of hedged liabilities | $ 64 | $ 29 |
Maximum term of commodity swaps/options | 35 months | 36 months |
Derivatives not accounted for as hedges | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of hedged assets | $ 26 | $ 34 |
Fair value of hedged liabilities | 22 | 29 |
Derivatives not accounted for as hedges | Foreign exchange forwards/options | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 2,410 | 2,358 |
Fair value of hedged assets | 26 | 34 |
Fair value of hedged liabilities | $ 22 | $ 29 |
Maximum term of foreign exchange forwards/options | 8 months | 10 months |
Derivatives not accounted for as hedges | Commodity swaps/options | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 5 | $ 8 |
Fair value of hedged assets | 0 | 0 |
Fair value of hedged liabilities | $ 0 | $ 0 |
Maximum term of commodity swaps/options | 8 months | 4 months |
Hedges and Derivative Financi49
Hedges and Derivative Financial Instruments (Schedule of Effects of Derivative Instruments on Consolidated Condensed Statements of Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Recognized in OCI (Effective Portion) | $ (8) | $ 15 | $ (30) | $ 25 |
Gain Reclassified from OCI into Earnings (Effective Portion) (1) | 2 | 4 | 4 | 4 |
Foreign exchange | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Recognized in OCI (Effective Portion) | 41 | 23 | 51 | 27 |
Gain Reclassified from OCI into Earnings (Effective Portion) (1) | 18 | 4 | 42 | 13 |
Foreign exchange forwards/options | (13) | (33) | 19 | 2 |
Commodity swaps/options | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Recognized in OCI (Effective Portion) | (49) | (8) | (81) | (2) |
Gain Reclassified from OCI into Earnings (Effective Portion) (1) | $ (16) | $ 0 | (37) | (8) |
Interest rate derivatives | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Recognized in OCI (Effective Portion) | 0 | 0 | ||
Gain Reclassified from OCI into Earnings (Effective Portion) (1) | $ (1) | $ (1) |
Stockholders' Equity (Other Com
Stockholders' Equity (Other Comprehensive Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Stockholders' Equity Note [Abstract] | ||||
Currency translation adjustments, Pre-tax | $ (197) | $ (198) | $ (343) | $ (164) |
Currency translation adjustments, Tax effect | 0 | 0 | 0 | 0 |
Currency translation adjustments, Net | (197) | (198) | (343) | (164) |
Cash flow hedges, Pre-tax | (10) | 11 | (34) | 21 |
Cash flow hedges, Tax effect | 2 | (4) | 8 | (8) |
Cash flow hedges, Net | (8) | 7 | (26) | 13 |
Pension and other postretirement benefit plans, Pre-tax | 9 | 3 | (17) | (11) |
Pension and other postretirement plans, Tax effect | (4) | (2) | 8 | 6 |
Pension and other postretirement plans, Net | 5 | 1 | (9) | (5) |
Available for sale securities, Pre-tax | (5) | (6) | (1) | 1 |
Available for sale securities, Tax effect | 0 | 0 | 0 | 0 |
Available for sale securities, Net | (5) | (6) | (1) | 1 |
Other comprehensive income (loss), Pre-tax | (203) | (190) | (395) | (153) |
Other comprehensive income (loss), Tax effect | (2) | (6) | 16 | (2) |
Other comprehensive income (loss), Net | (205) | (196) | (379) | (155) |
Less: Other comprehensive income (loss) available to noncontrolling interests, Pre-tax | (6) | (3) | (8) | (2) |
Less: Other comprehensive income (loss) available to noncontrolling interests, Tax effect | 0 | 0 | 0 | 0 |
Less: Other comprehensive income (loss) available to noncontrolling interests, Net | (6) | (3) | (8) | (2) |
Other comprehensive income (loss) available to Whirlpool, Pre-tax | (197) | (187) | (387) | (151) |
Other comprehensive income (loss) available to Whirlpool, Tax | (2) | (6) | 16 | (2) |
Other comprehensive income (loss) available to Whirlpool, Net | $ (199) | $ (193) | $ (371) | $ (153) |
Reclassifications out of Accumu
Reclassifications out of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Reclassifications out of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of products sold | $ 4,347 | $ 3,997 | $ 12,643 | $ 11,500 |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges | ||||
Reclassifications out of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of products sold | (2) | (4) | ||
Accumulated Pension and Postretirement Benefits Adjustment | ||||
Reclassifications out of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of products sold / Selling, general and administrative | $ (6) | $ (27) |
Stockholders' Equity (Schedule
Stockholders' Equity (Schedule of Changes in Stockholders' Equity) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Stockholders' equity, December 31, 2014 | $ 5,796 | |||
Net earnings | $ 250 | $ 235 | 633 | $ 584 |
Other comprehensive income | (205) | (196) | (379) | (155) |
Comprehensive income | 45 | $ 39 | 254 | $ 429 |
Treasury Stock | (95) | |||
Additional paid-in capital | 42 | |||
Dividends declared on common stock | (208) | |||
Stockholders' equity, September 30, 2015 | 5,789 | 5,789 | ||
Whirlpool Common Stockholders | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Stockholders' equity, December 31, 2014 | 4,885 | |||
Net earnings | 603 | |||
Other comprehensive income | (371) | |||
Comprehensive income | 232 | |||
Treasury Stock | (95) | |||
Additional paid-in capital | 42 | |||
Dividends declared on common stock | (201) | |||
Stockholders' equity, September 30, 2015 | 4,863 | 4,863 | ||
Noncontrolling Interests | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Stockholders' equity, December 31, 2014 | 911 | |||
Net earnings | 30 | |||
Other comprehensive income | (8) | |||
Comprehensive income | 22 | |||
Treasury Stock | 0 | |||
Additional paid-in capital | 0 | |||
Dividends declared on common stock | (7) | |||
Stockholders' equity, September 30, 2015 | $ 926 | $ 926 |
Stockholders' Equity (Net Earni
Stockholders' Equity (Net Earnings Per Share) (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Stockholders' Equity Note [Abstract] | ||||
Numerator for basic and diluted earnings per share - Net earnings available to Whirlpool | $ 235 | $ 230 | $ 603 | $ 569 |
Denominator for basic earnings per share – weighted-average shares (shares) | 78.8 | 78.4 | 78.9 | 78.3 |
Effect of dilutive securities – share-based compensation (shares) | 0.9 | 1.2 | 1 | 1.1 |
Denominator for diluted earnings per share – adjusted weighted-average shares (shares) | 79.7 | 79.6 | 79.9 | 79.4 |
Anti-dilutive stock options/awards excluded from earnings per share (shares) | 0.3 | 0.2 | 0.2 | 0.3 |
Stockholders' Equity Repurchase
Stockholders' Equity Repurchase Program (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2015 | Apr. 14, 2014 | |
Stockholders' Equity Note [Abstract] | ||
Stock repurchase program, authorized amount | $ 500,000,000 | |
Stock repurchased during period, shares | 520,600 | |
Stock repurchased during period | $ 95,000,000 | |
Stock repurchase program, remaining authorized repurchase amount | $ 380,000,000 |
Restructuring Charges Narrative
Restructuring Charges Narrative (Details) € in Millions, $ in Millions | 9 Months Ended | |||
Sep. 30, 2015EUR (€) | Sep. 30, 2015USD ($) | Sep. 30, 2015USD ($) | Apr. 15, 2015USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||||
Payments for restructuring | $ 119 | |||
ITALY | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related cost, expected cost | € | € 241 | |||
Payments for restructuring | 209 | 233 | ||
Employee-related costs | ITALY | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related cost, expected cost | 179 | $ 200 | ||
Asset impairment costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Payments for restructuring | 0 | |||
Asset impairment costs | ITALY | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related cost, expected cost | 25 | $ 28 | ||
Other exit costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Payments for restructuring | $ 15 | |||
Other exit costs | ITALY | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related cost, expected cost | € 37 | $ 41 |
Restructuring Charges (Details)
Restructuring Charges (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Restructuring Reserve [Roll Forward] | ||||
December 31, 2014 | $ 78 | |||
Charge to Earnings | $ 54 | $ 38 | 145 | $ 101 |
Cash Paid | (119) | |||
Non-cash and Other | (14) | |||
Revision of Estimate | 3 | |||
September 30, 2015 | 93 | 93 | ||
Employee termination costs | ||||
Restructuring Reserve [Roll Forward] | ||||
December 31, 2014 | 58 | |||
Charge to Earnings | 110 | |||
Cash Paid | (98) | |||
Non-cash and Other | 0 | |||
Revision of Estimate | 3 | |||
September 30, 2015 | 73 | 73 | ||
Asset impairment costs | ||||
Restructuring Reserve [Roll Forward] | ||||
December 31, 2014 | 0 | |||
Charge to Earnings | 14 | |||
Cash Paid | 0 | |||
Non-cash and Other | (14) | |||
Revision of Estimate | 0 | |||
September 30, 2015 | 0 | 0 | ||
Facility exit costs | ||||
Restructuring Reserve [Roll Forward] | ||||
December 31, 2014 | 4 | |||
Charge to Earnings | 7 | |||
Cash Paid | (6) | |||
Non-cash and Other | 0 | |||
Revision of Estimate | 0 | |||
September 30, 2015 | 5 | 5 | ||
Other exit costs | ||||
Restructuring Reserve [Roll Forward] | ||||
December 31, 2014 | 16 | |||
Charge to Earnings | 14 | |||
Cash Paid | (15) | |||
Non-cash and Other | 0 | |||
Revision of Estimate | 0 | |||
September 30, 2015 | $ 15 | $ 15 |
Restructuring Charges By Segmen
Restructuring Charges By Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | $ 54 | $ 38 | $ 145 | $ 101 |
Operating Segments | North America | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 8 | |||
Operating Segments | Latin America | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 22 | |||
Operating Segments | EMEA | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 108 | |||
Corporate / Other | Corporate / Other | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | $ 7 |
Income Taxes Narrative (Details
Income Taxes Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense | $ 17 | $ 26 | $ 116 | $ 126 |
Effective income tax rate reconciliation, at federal statutory income tax rate, percent | 35.00% | 35.00% | 35.00% | 35.00% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | ||||
Earnings before income taxes | $ 267 | $ 261 | $ 749 | $ 710 |
Income tax expense computed at United States statutory tax rate | 93 | 91 | 262 | 249 |
Valuation allowance release | (68) | (25) | (126) | (38) |
U.S. foreign income items, net of credits | (18) | (34) | (32) | (59) |
Foreign government tax incentive (including BEFIEX in 2014) | 0 | (10) | (8) | (20) |
Other | 10 | 4 | 20 | (6) |
Income tax expense computed at effective worldwide tax rates | $ 17 | $ 26 | $ 116 | $ 126 |
Pension and Other Postretirem60
Pension and Other Postretirement Benefit Plans (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
United States Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 1 | $ 1 | $ 2 | $ 2 |
Interest cost | 37 | 42 | 112 | 126 |
Expected return on plan assets | (48) | (49) | (143) | (145) |
Amortization: | ||||
Actuarial loss | 13 | 11 | 40 | 32 |
Prior service credit | 0 | 0 | (2) | (2) |
Settlement and curtailment (gain) loss | 0 | 0 | 0 | 0 |
Net periodic benefit cost (credit) | 3 | 5 | 9 | 13 |
Foreign Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 1 | 1 | 4 | 4 |
Interest cost | 8 | 4 | 23 | 13 |
Expected return on plan assets | (8) | (2) | (25) | (8) |
Amortization: | ||||
Actuarial loss | 1 | 1 | 4 | 4 |
Prior service credit | 0 | 0 | 0 | 0 |
Settlement and curtailment (gain) loss | 1 | 0 | 13 | 2 |
Net periodic benefit cost (credit) | 3 | 4 | 19 | 15 |
Other Postretirement Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 1 | 1 | 2 | 2 |
Interest cost | 4 | 7 | 14 | 19 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization: | ||||
Actuarial loss | 0 | 0 | 0 | 0 |
Prior service credit | (5) | (10) | (19) | (29) |
Settlement and curtailment (gain) loss | (16) | 0 | (63) | 0 |
Net periodic benefit cost (credit) | $ (16) | $ (2) | $ (66) | $ (8) |
Pension and Other Postretirem61
Pension and Other Postretirement Benefit Plans Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Curtailment gain | $ 16 | $ 47 | $ 63 | $ 0 |
Cost of Goods Sold | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Curtailment gain | $ 11 | $ 43 |
Operating Segment Information62
Operating Segment Information (Schedule of Operating Segment Information) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||||
Operating profit (loss) | $ 329 | $ 335 | $ 905 | $ 907 | |
Total assets | 19,623 | 19,623 | $ 20,002 | ||
Capital expenditures | 391 | 422 | |||
Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 5,277 | 4,824 | 15,331 | 13,869 | |
Depreciation and amortization | 165 | 136 | 496 | 397 | |
Operating profit (loss) | 329 | 335 | 905 | 907 | |
Total assets | 19,623 | 19,623 | 20,002 | ||
Capital expenditures | 123 | 157 | 391 | 422 | |
Operating Segments | North America | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 2,791 | 2,792 | 7,819 | 7,798 | |
Depreciation and amortization | 64 | 73 | 195 | 194 | |
Operating profit (loss) | 349 | 304 | 912 | 817 | |
Total assets | 7,945 | 7,945 | 7,736 | ||
Capital expenditures | 52 | 72 | 169 | 187 | |
Operating Segments | Latin America | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 751 | 1,131 | 2,504 | 3,410 | |
Depreciation and amortization | 13 | 22 | 50 | 66 | |
Operating profit (loss) | 31 | 118 | 126 | 328 | |
Total assets | 2,304 | 2,304 | 2,917 | ||
Capital expenditures | 26 | 40 | 69 | 102 | |
Operating Segments | EMEA | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 1,452 | 785 | 4,059 | 2,251 | |
Depreciation and amortization | 47 | 22 | 154 | 59 | |
Operating profit (loss) | 32 | 9 | 100 | 18 | |
Total assets | 7,479 | 7,479 | 7,597 | ||
Capital expenditures | 36 | 22 | 108 | 70 | |
Operating Segments | Asia | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 346 | 157 | 1,105 | 534 | |
Depreciation and amortization | 15 | 5 | 46 | 16 | |
Operating profit (loss) | 24 | (8) | 75 | 1 | |
Total assets | 2,743 | 2,743 | 2,734 | ||
Capital expenditures | (9) | 3 | 9 | 10 | |
Operating Segments | Other/ Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | (63) | (41) | (156) | (124) | |
Depreciation and amortization | 26 | 14 | 51 | 62 | |
Operating profit (loss) | (107) | (88) | (308) | (257) | |
Total assets | (848) | (848) | $ (982) | ||
Capital expenditures | 18 | 20 | 36 | 53 | |
Other/Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 0 | 0 | 0 | 0 | |
Other/Eliminations | North America | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 51 | 54 | 170 | 169 | |
Other/Eliminations | Latin America | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 55 | 43 | 157 | 128 | |
Other/Eliminations | EMEA | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 9 | 19 | 34 | 68 | |
Other/Eliminations | Asia | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 77 | 70 | 205 | 201 | |
Other/Eliminations | Other/ Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | $ (192) | $ (186) | $ (566) | $ (566) |