Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 12, 2016 | Jun. 30, 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-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding (shares) | 77,233,402 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 13,245,777,309 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement [Abstract] | |||
Net sales | $ 20,891 | $ 19,872 | $ 18,769 |
Expenses | |||
Cost of products sold | 17,201 | 16,477 | 15,471 |
Gross margin | 3,690 | 3,395 | 3,298 |
Selling, general and administrative | 2,130 | 2,038 | 1,828 |
Intangible amortization | 74 | 33 | 25 |
Restructuring costs | 201 | 136 | 196 |
Operating profit | 1,285 | 1,188 | 1,249 |
Other income (expense) | |||
Interest and sundry income (expense) | (89) | (142) | (155) |
Interest expense | (165) | (165) | (177) |
Earnings before income taxes | 1,031 | 881 | 917 |
Income tax expense | 209 | 189 | 68 |
Net earnings | 822 | 692 | 849 |
Less: Net earnings available to noncontrolling interests | 39 | 42 | 22 |
Net earnings available to Whirlpool | $ 783 | $ 650 | $ 827 |
Per share of common stock | |||
Basic net earnings available to Whirlpool (USD per share) | $ 9.95 | $ 8.30 | $ 10.42 |
Diluted net earnings available to Whirlpool (USD per share) | $ 9.83 | $ 8.17 | $ 10.24 |
Weighted-average shares outstanding (in millions) | |||
Basic (shares) | 78.7 | 78.3 | 79.3 |
Diluted (shares) | 79.7 | 79.6 | 80.8 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Net earnings | $ 822 | $ 692 | $ 849 |
Other comprehensive income (loss), before tax: | |||
Foreign currency translation adjustments | (432) | (392) | (122) |
Derivative instruments: | |||
Net gain (loss) arising during period | (25) | 10 | (9) |
Less: reclassification adjustment for gain (loss) included in net earnings | (2) | 11 | (11) |
Derivative instruments, net | (23) | (1) | 2 |
Marketable securities: | |||
Net gain arising during period | 3 | 0 | 7 |
Marketable securities, net | 3 | 0 | 7 |
Defined benefit pension and postretirement plans: | |||
Prior service (cost) credit arising during period | (5) | (11) | (2) |
Net gain (loss) arising during period | (55) | (242) | 475 |
Less: amortization of prior service credit (cost) and actuarial (loss) | 19 | (20) | (35) |
Defined benefit pension and postretirement plans, net: | (79) | (233) | 508 |
Other comprehensive income (loss), before tax | (531) | (626) | 395 |
Income tax benefit (expense) related to items of other comprehensive income (loss) | 30 | 80 | (165) |
Other comprehensive income (loss), net of tax | (501) | (546) | 230 |
Comprehensive income | 321 | 146 | 1,079 |
Less: comprehensive income, available to noncontrolling interests | 30 | 38 | 19 |
Comprehensive income available to Whirlpool | $ 291 | $ 108 | $ 1,060 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets | ||
Cash and cash equivalents | $ 772 | $ 1,026 |
Accounts receivable, net of allowance of $160 and $154, respectively | 2,530 | 2,768 |
Inventories | 2,619 | 2,740 |
Deferred income taxes | 451 | 417 |
Prepaid and other current assets | 953 | 1,147 |
Total current assets | 7,325 | 8,098 |
Property, net of accumulated depreciation of $5,953 and $5,959, respectively | 3,774 | 3,981 |
Goodwill | 3,006 | 2,807 |
Other intangibles, net of accumulated amortization of $327 and $267, respectively | 2,678 | 2,803 |
Deferred income taxes | 1,850 | 1,900 |
Other noncurrent assets | 377 | 413 |
Total assets | 19,010 | 20,002 |
Current liabilities | ||
Accounts payable | 4,403 | 4,730 |
Accrued expenses | 675 | 852 |
Accrued advertising and promotions | 706 | 673 |
Employee compensation | 452 | 499 |
Notes payable | 20 | 569 |
Current maturities of long-term debt | 508 | 234 |
Other current liabilities | 980 | 846 |
Total current liabilities | 7,744 | 8,403 |
Noncurrent liabilities | ||
Long-term debt | 3,470 | 3,544 |
Pension benefits | 1,025 | 1,123 |
Postretirement benefits | 390 | 446 |
Other noncurrent liabilities | 707 | 690 |
Total noncurrent liabilities | 5,592 | 5,803 |
Stockholders’ equity | ||
Common stock, $1 par value, 250 million shares authorized, 111 million and 110 million shares issued, and 77 million and 78 million shares outstanding, respectively | 111 | 110 |
Additional paid-in capital | 2,641 | 2,555 |
Retained earnings | 6,722 | 6,209 |
Accumulated other comprehensive loss | (2,332) | (1,840) |
Treasury stock, 33 million and 32 million shares, respectively | (2,399) | (2,149) |
Total Whirlpool stockholders’ equity | 4,743 | 4,885 |
Noncontrolling interests | 931 | 911 |
Total stockholders’ equity | 5,674 | 5,796 |
Total liabilities and stockholders’ equity | $ 19,010 | $ 20,002 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 160 | $ 154 |
Accumulated depreciation | 5,953 | 5,959 |
Finite-lived intangible assets, accumulated amortization | $ 327 | $ 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) | 111,000,000 | 110,000,000 |
Common stock, shares outstanding (shares) | 77,000,000 | 78,000,000 |
Treasury stock shares (shares) | 33,000,000 | 32,000,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating activities | |||
Net earnings | $ 822 | $ 692 | $ 849 |
Adjustments to reconcile net earnings to cash provided by (used in) operating activities: | |||
Depreciation and amortization | 668 | 560 | 540 |
Curtailment gain | (63) | 0 | 0 |
Changes in assets and liabilities (net of effects of acquisitions): | |||
Accounts receivable | (89) | (90) | (65) |
Inventories | (141) | 49 | (112) |
Accounts payable | 14 | 359 | 275 |
Accrued advertising and promotions | 74 | 121 | 28 |
Accrued expenses and current liabilities | (43) | (232) | 82 |
Taxes deferred and payable, net | (42) | 49 | (105) |
Accrued pension and postretirement benefits | (129) | (181) | (184) |
Employee compensation | 8 | (17) | (23) |
Other | 146 | 169 | (23) |
Cash provided by operating activities | 1,225 | 1,479 | 1,262 |
Investing activities | |||
Capital expenditures | (689) | (720) | (578) |
Proceeds from sale of assets and business | 37 | 21 | 6 |
Change in restricted cash | 47 | 74 | 0 |
Acquisition of Indesit Company S.p.A. | 0 | (1,356) | 0 |
Acquisition of Hefei Rongshida Sanyo Electric Co., Ltd. | 0 | (453) | 0 |
Investment in related businesses | (70) | (16) | (6) |
Other | (6) | (6) | (4) |
Cash used in investing activities | (681) | (2,456) | (582) |
Financing activities | |||
Proceeds from borrowings of long-term debt | 531 | 1,483 | 518 |
Repayments of long-term debt | (283) | (606) | (513) |
Net proceeds from short-term borrowings | (465) | 63 | 5 |
Dividends paid | (269) | (224) | (187) |
Repurchase of common stock | (250) | (25) | (350) |
Purchase of noncontrolling interest shares | 0 | (5) | 0 |
Common stock issued | 38 | 38 | 95 |
Other | (9) | (19) | (2) |
Cash provided by (used in) financing activities | (707) | 705 | (434) |
Effect of exchange rate changes on cash and cash equivalents | (91) | (82) | (34) |
Increase (decrease) in cash and cash equivalents | (254) | (354) | 212 |
Cash and cash equivalents at beginning of year | 1,026 | 1,380 | 1,168 |
Cash and cash equivalents at end of year | 772 | 1,026 | 1,380 |
Supplemental disclosure of cash flow information | |||
Cash paid for interest | 178 | 172 | 179 |
Cash paid for income taxes | $ 251 | $ 140 | $ 158 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Millions | Total | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock/ Additional Paid- in-Capital | Common Stock | Non- Controlling Interests |
Beginning balance at Dec. 31, 2012 | $ 4,367 | $ 5,147 | $ (1,531) | $ 536 | $ 108 | $ 107 |
Comprehensive income | ||||||
Net earnings | 849 | 827 | 22 | |||
Other comprehensive income (loss) | 230 | 233 | (3) | |||
Comprehensive income | 1,079 | 827 | 233 | 19 | ||
Stock repurchased | (206) | (207) | 1 | |||
Dividends declared | (206) | (190) | (16) | |||
Ending balance at Dec. 31, 2013 | 5,034 | 5,784 | (1,298) | 329 | 109 | 110 |
Comprehensive income | ||||||
Net earnings | 692 | 650 | 42 | |||
Other comprehensive income (loss) | (546) | (542) | (4) | |||
Comprehensive income | 146 | 650 | (542) | 38 | ||
Stock issued | 59 | 58 | 1 | |||
Dividends declared | (244) | (225) | (19) | |||
Acquisitions | 801 | 19 | 782 | |||
Ending balance at Dec. 31, 2014 | 5,796 | 6,209 | (1,840) | 406 | 110 | 911 |
Comprehensive income | ||||||
Net earnings | 822 | 783 | 39 | |||
Other comprehensive income (loss) | (501) | (492) | (9) | |||
Comprehensive income | 321 | 783 | (492) | 30 | ||
Stock repurchased | (163) | (164) | 1 | |||
Dividends declared | (280) | (270) | (10) | |||
Ending balance at Dec. 31, 2015 | $ 5,674 | $ 6,722 | $ (2,332) | $ 242 | $ 111 | $ 931 |
Summary of Principal Accounting
Summary of Principal Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Principal Accounting Policies | SUMMARY OF PRINCIPAL ACCOUNTING POLICIES General Information Whirlpool Corporation, a Delaware corporation, is the world's leading manufacturer and marketer of major home appliances. Whirlpool manufactures products in 14 countries and markets products in nearly every country around the world under brand names such as Whirlpool , KitchenAid , Maytag , Consul , Brastemp , Amana , Bauknecht , Jenn-Air and Indesit . Whirlpool’s reportable segments consist of North America, EMEA (Europe, Middle East and Africa), Latin America and Asia. Principles of Consolidation Our Consolidated Financial Statements include all majority-owned subsidiaries. All material intercompany transactions have been eliminated upon consolidation. 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 We reclassified certain prior period amounts in our Consolidated Financial Statements to be consistent with current period presentation. The effect of these reclassifications is not material. Use of Estimates We are required to make estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and accompanying notes. Actual results could differ materially from those estimates. Revenue Recognition Sales are recorded when title passes to the customer as determined by the shipping terms. For the majority of our sales, title is transferred to the customer as soon as products are shipped. For a portion of our sales, title is transferred to the customer upon receipt of products at the customer’s location. Allowances for estimated returns are made on sales of certain products based on historical return rates for the products involved. Accounts Receivable and Allowance for Doubtful Accounts We carry accounts receivable at sales value less an allowance for doubtful accounts. We periodically evaluate accounts receivable and establish an allowance for doubtful accounts based on a combination of specific customer circumstances, credit conditions and the history of write-offs and collections. We evaluate items on an individual basis when determining accounts receivable write-offs. In general, our policy is to not charge interest on trade receivables after the invoice becomes past due. A receivable is considered past due if payment has not been received within agreed upon invoice terms. Freight and Warehousing Costs We classify freight and warehousing costs within cost of products sold in our Consolidated Statements of Income. Cash and Cash Equivalents All highly liquid debt instruments purchased with an initial maturity of three months or less are considered cash equivalents. Restricted Cash Restricted cash relates to the private placement funds paid by Whirlpool to purchase a portion of the shares needed to acquire majority control of Hefei Sanyo in October 2014. The restricted cash is used to fund capital and technical resources to enhance Whirlpool China’s research and development and working capital. As of December 31, 2015 and 2014 , restricted cash was approximately $191 million and $237 million , respectively. Approximately $48 million and $50 million is recorded in other current assets as of December 31, 2015 and 2014 , respectively, with the remaining portion recorded in other non-current assets. Fair Value Measurements We measure fair value 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 that market participants would use in pricing an asset or liability. 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 December 31, 2015 and 2014 , with the exception of those disclosed in Note 13 . We measured fair value for money market funds and available for sale investments using quoted market prices in active markets for identical or comparable assets. We measured fair value for derivative contracts, all of which have counterparties with high credit ratings, based on model driven valuations using significant inputs derived from observable market data. Inventories Inventories are stated at first-in, first-out (“FIFO”) cost, except United States production inventories, which are stated at last-in, first-out (“LIFO”) cost, and Latin America and Asia and EMEA inventories, which are stated at average cost. Costs do not exceed net realizable values. See Note 5 for additional information about inventories. Property Property is stated at cost, net of accumulated depreciation. For production machinery and equipment, we record depreciation based on units produced, unless units produced drop below a minimum threshold at which point depreciation is recorded using the straight-line method, excluding property acquired from the Hefei Sanyo and Indesit acquisitions. For non-production assets and assets acquired from Hefei Sanyo and Indesit , as of December 31, 2015 we depreciate costs based on the straight-line method. Depreciation expense for property, including accelerated depreciation classified as restructuring expense in our Consolidated Statements of Income, was $594 million , $527 million and $515 million in 2015 , 2014 and 2013 , respectively. The following table summarizes our property as of December 31, 2015 and 2014 : Millions of dollars 2015 2014 Estimated Useful Life Land $ 131 $ 142 n/a Buildings 1,614 1,616 10 to 50 years Machinery and equipment 7,982 8,182 3 to 25 years Accumulated depreciation (5,953 ) (5,959 ) Property, net $ 3,774 $ 3,981 We classify gains and losses associated with asset dispositions in the same line item as the underlying depreciation of the disposed asset in the Consolidated Statements of Income. During 2015 we retired approximately $221 million of machinery and equipment no longer in use. During 2014 we retired approximately $503 million of property, of which $450 million was machinery and equipment. Net gains and losses recognized in cost of products sold were not material for 2015 , 2014 and 2013 . We record impairment losses on long-lived assets, excluding goodwill and intangibles, when events and circumstances indicate the assets may be impaired and the estimated future cash flows generated by those assets are less than their carrying amounts. There were no significant impairments recorded during 2015 , 2014 and 2013 . Goodwill and Other Intangibles In 2015, the Company elected to perform a quantitative analysis using a discounted cash flow model and other valuation techniques, to evaluate goodwill and other indefinite-life intangible assets. Based on the results of our quantitative assessment conducted on October 1, 2015, the fair values of Whirlpool's operating segments continue to exceed their respective carrying values. We evaluate certain indefinite-lived intangibles using a qualitative assessment to determine whether it is more likely than not that the fair value of the indefinite lived intangible asset is less than its carrying amount. If we determine that the fair value may be less than its carrying amount, the fair value of the trademark is estimated and compared to its carrying value to determine if an impairment exists. Otherwise, we conclude that no impairment is indicated and we do not perform the quantitative test. When the qualitative assessment is not utilized and a quantitative test is performed, we estimate the fair value of these intangible assets using the relief-from-royalty method, which requires assumptions related to projected revenues from our annual long-range plan; assumed royalty rates that could be payable if we did not own the trademark; and a discount rate based on our weighted average cost of capital. We recognize an impairment loss when the estimated fair value of the indefinite-lived intangible asset is less than its carrying value. Definite lived intangible assets are amortized over their estimated useful life. See Note 3 for additional information about goodwill and intangible assets. Accounts Payable Outsourcing We offer our suppliers access to third party payable processors, independent to Whirlpool. The processors allow suppliers to sell their receivables to financial institutions at the sole discretion of both the supplier and the financial institution. In China, as a common practice we pay suppliers with banker’s acceptance drafts. Banker’s acceptance drafts allow suppliers to sell their receivables to financial institutions at the sole discretion of both the supplier and the financial institution. We have no economic interest in the sale of these receivables and no direct financial relationship with the financial institutions concerning these services. All of our obligations, including amounts due, remain to our suppliers as stated in our supplier agreements. As of December 31, 2015 and 2014 , approximately $1.2 billion and $1.6 billion , respectively, have been issued to participating financial institutions. Derivative Financial Instruments We use derivative instruments designated as cash flow and fair value hedges to manage our exposure to the volatility in material costs, foreign currency and interest rates on certain debt instruments. Changes in the fair value of derivative assets or liabilities (i.e., gains or losses) are recognized depending upon the type of hedging relationship and whether a hedge has been designated. For those derivative instruments that qualify for hedge accounting, we designate the hedging instrument, based upon the exposure being hedged, as a cash flow hedge, fair value hedge, or a hedge of a net investment in a foreign operation. For a derivative instrument designated as a fair value hedge, the gain or loss on the derivative is recognized in earnings in the period of change in fair value together with the offsetting gain or loss on the hedged item. For a derivative instrument designated as a cash flow hedge, the effective portion of the derivative’s gain or loss is initially reported as a component of Other Comprehensive Income and is subsequently recognized in earnings when the hedged exposure affects earnings. For a derivative instrument designated as a hedge of a net investment in a foreign operation, the effective portion of the derivative’s gain or loss is reported in Other Comprehensive Income (Loss) as part of the cumulative translation adjustment. Changes in fair value of derivative instruments that do not qualify for hedge accounting are recognized immediately in current net earnings. See Note 8 for additional information about hedges and derivative financial instruments. Foreign Currency Translation and Transactions Foreign currency denominated assets and liabilities are translated into United States dollars at exchange rates existing at the respective balance sheet dates. Translation adjustments resulting from fluctuations in exchange rates are recorded as a separate component of Accumulated Other Comprehensive Income (Loss) within stockholders’ equity. The results of operations of foreign subsidiaries are translated at the average exchange rates during the respective periods. Gains and losses resulting from foreign currency transactions are included in net earnings. Research and Development Costs Research and development costs are charged to expense and totaled $ 579 million , $563 million and $582 million in 2015 , 2014 and 2013 , respectively. Advertising Costs Advertising costs are charged to expense when the advertisement is first communicated and totaled $ 310 million , $269 million and $304 million in 2015 , 2014 and 2013 , respectively. Income Taxes We account for income taxes using the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences of temporary differences between the financial statement and tax basis of assets and liabilities using enacted rates. The effect of a change in tax rates on deferred tax assets is recognized in income in the period of enactment date. We recognize, in other current and noncurrent liabilities, in the Consolidated Balance Sheets, effects of an uncertain income tax position when it is more likely than not, based on technical merits, that the position will be sustained upon examination. We accrue for other tax contingencies when it is probable that a liability to a taxing authority has been incurred and the amount of the contingency can be reasonably estimated. Provision is made for taxes on undistributed earnings of foreign subsidiaries and related companies to the extent that such earnings are not deemed to be permanently invested. See Note 12 for additional information about income taxes. Stock Based Compensation We recognize stock based compensation expense based on the grant date fair value of the award over the period during which an employee is required to provide service in exchange for the award (generally the vesting period). The fair value of stock options is determined using the Black-Scholes option-pricing model, which incorporates assumptions regarding the risk-free interest rate, expected volatility, expected option life, expected forfeitures and dividend yield. Stock options are granted with an exercise price equal to the stock price on the date of grant. The fair value of restricted stock units and performance stock units is generally based on the closing market price of Whirlpool common stock on the grant date. See Note 10 for additional information about stock based compensation. BEFIEX Credits In previous years, our Brazilian operations earned tax credits under the Brazilian government’s export incentive program (BEFIEX). These credits reduce Brazilian federal excise taxes on domestic sales, resulting in an increase in the operations’ recorded net sales. We recognized export credits as they were monetized. See Note 7 and Note 12 for additional information regarding BEFIEX credits. 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 permitted for annual reporting periods beginning after December 15, 2016. While we have not completed our impact analysis, we do not expect the adoption to have a material impact on our Consolidated Financial Statements. We do not anticipate early adoption of the standard. 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 in Note 2 in our Consolidated Financial Statements. In November 2015, FASB issued ASU No. 2015-17, "Income Taxes (Topic 740) - Balance Sheet Classification of Deferred Taxes", which supersedes the guidance in Topic 740, Income Taxes, that requires an entity to separate deferred tax liabilities and assets into a current amount and noncurrent amount in a classified statement of financial position. The amendment requires entities that present a classified balance sheet to classify all deferred tax liabilities and assets as a noncurrent amount. This guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2016, and may be early adopted on a prospective basis or on a retrospective basis to all periods presented. We have not yet determined the potential effects from this pronouncement on 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 | 12 Months Ended |
Dec. 31, 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. The purchase price allocation was finalized as of September 30, 2015 . 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 allocation of the purchase price of the respective acquisitions. The Company's final estimates regarding the fair value of Whirlpool China and Indesit's identifiable intangible assets are presented below. 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 Hefei Sanyo 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 the EMEA and Asia Pacific regions is not affiliated with the Hotpoint brand sold in the Americas), which are indefinite lived intangibles. The Company’s preliminary assessment as to trademarks having an indefinite life was 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 on a straight line basis. Pro Forma Results of Operations The results of Whirlpool China and Indesit’s operations have been included in the Consolidated Financial Statements beginning October 24, 2014 and October 14, 2014 , respectively. The following table provides pro forma results of operations for the twelve months ended December 31, 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. Year Ended December 31, Millions of dollars, except per share data 2014 Net sales $ 23,204 Net earnings available to Whirlpool 700 Diluted net earnings per share $ 8.79 Certain non-recurring acquisition-related costs and investment expenses of $30 million and $60 million were recorded by Whirlpool during 2014 related to the acquisitions of Whirlpool China and Indesit , respectively. Of these costs, $55 million were recorded in interest and sundry income (expense), with the remaining being recorded in selling, general and administrative. |
Goodwill and Other Intangibles
Goodwill and Other Intangibles | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangibles | GOODWILL AND OTHER INTANGIBLES We evaluate goodwill and indefinite lived intangibles for impairment annually on October 1. Goodwill The Company performs a quantitative analysis using a discounted cash flow model and other valuation techniques, but may elect to perform a qualitative analysis. In performing a quantitative assessment, we estimate fair value using the best information available to us, including market information and discounted cash flow projections also referred to as the income approach. The income approach uses operating segments projection of estimated operating results and cash flows that are discounted using a weighted-average cost of capital that is determined based on current market conditions. The projection uses management’s best estimates of economic and market conditions over the projected period including growth rates in sales, costs and number of units, estimates of future expected changes in operating margins and cash expenditures. Other estimates and assumptions include terminal value growth rates, future estimates of capital expenditures and changes in future working capital requirements. The estimated fair value of each operating segment is compared to their respective carrying values. Sensitivity analyses were performed around these assumptions in order to assess the reasonableness of the assumptions and the resulting estimated fair values. Additionally we validate our estimates of fair value under the income approach by comparing the values to fair value estimates using a market approach. A market approach estimates fair value by applying cash flow multiples to the reporting unit’s operating performance. The multiples are derived from comparable publicly traded companies with similar operating and investment characteristics of the reporting units. We consider the implied control premium and conclude whether the implied control premium is reasonable based on other recent market transactions. If the estimated fair value of the reporting unit is less than its carrying value, the Company then performs additional analysis to determine if the reporting unit’s goodwill should be impaired. If actual results are not consistent with managements’ estimate and assumptions, goodwill may be overstated and a charge against net income would be required, which would adversely affect the Company’s financial statements. We performed our assessment as of October 1, 2015 , and determined there was no impairment of goodwill. The following table summarizes goodwill attributable to our operating segments at December 31, 2015 and: Millions of dollars 2015 2014 North America $ 1,732 $ 1,715 EMEA 832 639 Latin America 3 4 Asia 439 449 Total $ 3,006 $ 2,807 The change in the carrying value of goodwill was primarily due to purchase price allocations and the impact of foreign currency. Further discussion of purchase price allocations can be found in Note 2 . Other Intangible Assets Based on the results of our annual assessment as of October 1, 2015 , we determined that there were no impairments to our intangibles in 2015 . In 2014 we recognized a $12 million impairment charge within selling, general and administrative expense of our EMEA operating segment related to two European trademarks which had a pre-impairment carrying value of $30 million in 2014 . Amortization expense was $74 million and $33 million for the years ended December 31, 2015 and 2014 , respectively. The following table summarizes other intangible assets at December 31, 2015 and 2014 : 2015 2014 Millions of dollars Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Other intangible assets, finite lives: Customer relationships (1) 632 (200 ) $ 432 665 $ (163 ) $ 502 Patents and other (2) 359 (127 ) 232 348 (104 ) 244 Total other intangible assets, finite lives $ 991 $ (327 ) $ 664 $ 1,013 $ (267 ) $ 746 Trademarks, indefinite lives 2,014 — 2,014 2,057 — 2,057 Total other intangible assets $ 3,005 $ (327 ) $ 2,678 $ 3,070 $ (267 ) $ 2,803 (1) Customer relationships have an estimated useful life of 4 to 18 years. (2) Patents and other intangibles have an estimated useful life of 1 to 15 years. The change in the gross carrying value of other intangible assets was primarily due to the impact of foreign currency. The following table summarizes our future estimated amortization expense by year: Millions of dollars 2016 $ 73 2017 70 2018 68 2019 65 2020 55 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS Assets and liabilities measured at fair value on a recurring basis at December 31, 2015 and 2014 are as follows: Total Cost Basis Quoted Prices In Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Total Fair Value Millions of dollars 2015 2014 2015 2014 2015 2014 2015 2014 Money market funds (1) $ 13 $ 21 $ 13 $ 21 $ — $ — $ 13 $ 21 Net derivative contracts — — — — (42 ) (1 ) (42 ) (1 ) Available for sale investments 11 16 25 26 — — 25 26 (1) Money market funds are comprised primarily of government obligations and other first tier obligations. In 2014, we sold shares held in Alno AG, a long-standing European customer, resulting in the conversion of our investment from the equity method of accounting to an available for sale investment due to our less than 20% overall investment in Alno AG. The company also has an available for sale investment in Elica S.p.A., a long standing supplier. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2015 | |
Inventory, Net [Abstract] | |
Inventories | INVENTORIES The following table summarizes our inventories at December 31, 2015 and 2014 : Millions of dollars 2015 2014 Finished products $ 2,093 $ 2,189 Raw materials and work in process 655 724 2,748 2,913 Less: excess of FIFO cost over LIFO cost (129 ) (173 ) Total inventories $ 2,619 $ 2,740 LIFO inventories represented 37% and 35% of total inventories at December 31, 2015 and 2014 , respectively. |
Financing Arrangements
Financing Arrangements | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Financing Arrangements | FINANCING ARRANGEMENTS Long-Term Debt The following table summarizes our long-term debt at December 31, 2015 and 2014 : Millions of dollars 2015 2014 Maytag medium-term note - 5.0% matured 2015 $ — $ 200 Senior note - 6.5%, maturing 2016 250 250 Debentures - 7.75%, maturing 2016 244 244 Senior note - 1.35%, maturing 2017 250 250 Senior note - 1.65%, maturing 2017 300 300 Indesit guaranteed notes - 4.5%, maturing 2018 345 393 Senior note - 2.4%, maturing 2019 250 250 Senior note - 0.625% maturing 2020 541 — Senior note - 4.85%, maturing 2021 300 300 Senior note - 4.70%, maturing 2022 300 300 Senior note - 3.70%, maturing 2023 250 250 Senior note - 4.0%, maturing 2024 300 300 Senior note - 3.7%, maturing 2025 350 350 Senior note - 5.15% maturing 2043 249 249 Other 49 142 3,978 3,778 Less current maturities 508 234 Total long-term debt $ 3,470 $ 3,544 The following table summarizes the contractual maturities of our long-term debt, including current maturities, at December 31, 2015 : Millions of dollars 2016 $ 508 2017 562 2018 357 2019 262 2020 541 Thereafter 1,748 Long-term debt, including current maturities $ 3,978 The fair value of long-term debt (including current maturities) was $4.0 billion and $3.8 billion at December 31, 2015 and 2014 , respectively, and was estimated using a discounted cash flow analysis based on incremental borrowing rates for similar types of borrowing arrangements. We have committed credit facilities in Brazil, which provide borrowings up to 1.0 billion Brazilian reais (approximately $256 million as of December 31, 2015 ) maturing at various times from 2016 to 2017. The credit facilities contain no financial covenants and we had no borrowings outstanding under these credit facilities at December 31, 2015 and 2014 . 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”). Collectively, the $500 million Amended 364 -Day Facility, a €250 million European facility added in July 2015 and the existing $2.0 billion long-term credit facility provide total committed credit facilities of approximately $2.8 billion (the “Facilities”), which is fundamentally unchanged from the $3.0 billion in committed credit facilities available as of December 31, 2014. The resulting Facilities are sufficient, more geographically diverse, and better reflect our growing global operations. 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 December 31, 2015 and 2014 . On September 26, 2014 , we entered into a Second Amended and Restated Long-Term Credit Agreement (the “Long-Term Facility”). The Long-Term Facility amends, restates and extends the Company's prior five-year credit facility, which was scheduled to mature on June 28, 2016 . The Long-Term Facility increased the prior $1.7 billion facility to an aggregate amount of $2.0 billion , with an option to increase the total amount to up to $2.5 billion by exercise of an accordion feature. The Long-Term Facility has a maturity date of September 26, 2019 . The Long-Term Facility includes a letter of credit sublimit of $200 million . The interest and fee rates payable with respect to the Long-Term Facility based on our debt rating 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 0.15% , as of the effective date of the Long-Term Facility. We had no borrowings outstanding under the Amended 364-Day Facility or the Long-Term Facility at December 31, 2015 or 2014 , respectively. 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 February 25, 2014, we completed a debt offering of $250 million principal amount of 1.35% notes due in 2017, $250 million principal amount of 2.40% notes due in 2019, and $300 million principal amount of 4.00% notes due in 2024. On May 1, 2014, $500 million of 8.60% notes matured and were repaid. On August 15, 2014, $100 million of 6.45% notes matured and were repaid. On November 4, 2014 , we completed a debt offering of $300 million principal amount of 1.65% notes due in 2017 and $350 million principal amount of 3.70% notes due in 2025 . 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. 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. 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 December 31, 2015 and 2014: Millions of dollars 2015 2014 Commercial paper — 387 Debt securitization — 35 Short-term borrowings to banks 20 147 Total notes payable $ 20 $ 569 In 2015, the decrease in commercial paper was funded through cash generated through operations and issuance of long term debt, resulting in a decrease of notes payable at December 31, 2015 . 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 December 31, 2015 related to the securitization program. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES OTHER MATTERS 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 has also resolved certain other claims and certain claims remain pending. Additional lawsuits could be filed. At December 31, 2015 , $10 million remains accrued, with installment payments of $8 million , plus interest, due at various times through 2016 . 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 year ended December 31, 2015. We monetized $14 million and $109 million of BEFIEX credits during the years ended December 31, 2014 and 2013. 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 December 31, 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 December 31, 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 $395 million as of December 31, 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 219 million Brazilian reais (approximately $56 million as of December 31, 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 December 31, 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 161 million Brazilian reais (approximately $41 million as of December 31, 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 December 31, 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 December 31, 2015 is 24 million Brazilian reais (approximately $6 million as of December 31, 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 matters, which are at various stages of review in numerous administrative and judicial proceedings. Sessions of trial of the Brazilian administrative council of tax appeals, or CARF, have resumed after having been suspended for several months while changes in CARF procedures and staffing were being implemented. 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. 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. 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 have vigorously defended against numerous lawsuits pending in the United States relating to certain of our front load washing machines. We have reached preliminary agreement on a settlement that will resolve all such class action lawsuits. The settlement has been accounted for in interest and sundry income (expense) in the fourth quarter of 2015. The settlement requires court approval in order to be finalized, and we are proceeding through the court process to request such approval. In addition, we are currently vigorously 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, and may become involved in similar actions in other jurisdictions. These lawsuits allege claims which include negligence, breach of contract, breach of warranty, product liability and safety claims, fraud, and violation of federal and state regulations, including consumer protection acts. 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 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 and Legacy Product Corrective Action Reserves Product warranty reserves are included in other current and other noncurrent liabilities in our Consolidated Balance Sheets. The following table summarizes the changes in total product warranty and legacy product warranty liability reserves for the periods presented: Product Warranty Legacy Product Warranty Total Millions of dollars 2015 2014 2015 2014 2015 2014 Balance at January 1 $ 235 $ 191 $ — $ — $ 235 $ 191 Issuances/accruals during the period (1) 286 322 274 — 560 322 Settlements made during the period (274 ) (272 ) (11 ) — (285 ) (272 ) Foreign currency/Other changes $ (8 ) $ (6 ) $ (9 ) $ — $ (17 ) $ (6 ) Balance at December 31 $ 239 $ 235 $ 254 $ — $ 493 $ 235 Current portion $ 185 $ 186 $ 155 $ — $ 340 $ 186 Non-current portion 54 49 99 — 153 49 Total $ 239 $ 235 $ 254 $ — $ 493 $ 235 (1) $61 million is related to product warranty included within issuances/accruals during 2014 related to acquisitions. 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 consumers, we are currently investigating a limited number of potential quality and safety issues globally. 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. As part of that process, in 2015, Whirlpool engaged in thorough investigations of incident reports associated with two of its dryer production platforms developed by Indesit, prior to Whirlpool's acquisition of Indesit in October 2014. This led to Indesit reporting the issue to regulatory authorities for consideration. These discussions determined that corrective action of the affected dryers was required. Whirlpool has implemented modifications at the point of manufacture to ensure that dryers produced after October 2015 are not affected by this issue. An outreach and service campaign is underway to modify dryers that have already been sold. Such dryers were manufactured between April 2004 and October 2015 and sold in the UK and other countries in the EMEA region under the Hotpoint (Whirlpool ownership of the Hotpoint brand in EMEA and Asia Pacific regions is not affiliated with the Hotpoint brand sold in the Americas) and Indesit brand names, as well as various other brands owned by other manufacturers, distributors and retailers whose products Indesit produced. In September 2015, we recorded a liability related to this corrective action. 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). During 2015, we recognized expenses of $39 million related to legacy product warranty and liability corrective action on heritage Indesit product in Europe. 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 December 31, 2015 and December 31, 2014 , the guaranteed amounts totaled $260 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 had no losses associated with these guarantees in 2015 or 2014 . 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 at December 31, 2015 and $1.4 billion at December 31, 2014 . Our total outstanding bank indebtedness under guarantees was nominal at December 31, 2015 and December 31, 2014 , respectively. We have guaranteed a $43 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 2015 by Harbor Shores and reduced to $43 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. Operating Lease Commitments At December 31, 2015 , we had noncancelable operating lease commitments totaling $929 million . The annual future minimum lease payments are summarized by year in the table below : Millions of dollars 2016 $ 218 2017 175 2018 142 2019 111 2020 87 Thereafter 196 Total noncancelable operating lease commitments $ 929 Rent expense was $238 million , $228 million and $217 million for 2015 , 2014 and 2013 , respectively. Purchase Obligations Our expected cash outflows resulting from non-cancellable purchase obligations are summarized by year in the table below : Millions of dollars 2016 $ 248 2017 177 2018 149 2019 114 2020 112 Thereafter 186 Total purchase obligations $ 986 |
Hedges and Derivative Financial
Hedges and Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 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 December 31, 2015 and 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 tables summarize our outstanding derivative contracts and their effects on our Consolidated Balance Sheets at December 31, 2015 and 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 $ 886 $ 874 $ 31 $ 27 $ 8 $ 8 (CF) 12 17 Commodity swaps/options 322 375 1 4 66 29 (CF) 33 36 Total derivatives accounted for as hedges $ 32 $ 31 $ 74 $ 37 Derivatives not accounted for as hedges Foreign exchange forwards/options $ 2,886 $ 2,358 $ 22 $ 34 $ 21 $ 29 N/A 11 10 Commodity swaps/options 7 8 — — 1 — N/A 6 4 Total derivatives not accounted for as hedges 22 34 22 29 Total derivatives $ 54 $ 65 $ 96 $ 66 Current $ 54 $ 64 $ 79 $ 59 Noncurrent — 1 17 7 Total derivatives $ 54 $ 65 $ 96 $ 66 (1) Derivatives accounted for as hedges are considered cash flow (CF) hedges. The increase in the notional amount of derivatives is due to derivatives acquired through the acquisition of Indesit. The pre-tax effects of derivative instruments on our Consolidated Statements of Income and Comprehensive Income for OCI in table for the years ended December 31, 2015 and 2014 are as follows: Gain (Loss) Recognized in OCI (Effective Portion) Gain (Loss) (1) Cash Flow Hedges - Millions of dollars 2015 2014 2015 2014 Foreign exchange forwards/options $ 77 $ 40 $ 56 $ 22 (a) Commodity swaps/options (102 ) (30 ) (57 ) (10 ) (a) Interest rate derivatives — — (1 ) (1 ) (b) $ (25 ) $ 10 $ (2 ) $ 11 Gain (Loss) Recognized on Derivatives not Accounted for as Hedges (2) Derivatives not Accounted for as Hedges - Millions of dollars 2015 2014 Foreign exchange forwards/options $ 29 $ 26 (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 during 2015 and 2014 . There were no hedges designated as fair value 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 a loss of $25 million at December 31, 2015 . |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | STOCKHOLDERS’ EQUITY Comprehensive Income Comprehensive income primarily includes (1) our reported net earnings, (2) foreign currency translation, (3) changes in the effective portion of our open derivative contracts designated as cash flow hedges, (4) changes in our unrecognized pension and other postretirement benefits and (5) changes in fair value of our available for sale marketable securities. The following table shows the components of accumulated other comprehensive income (loss) available to Whirlpool at December 31, 2013 , 2014 , and 2015 , and the activity for the years then ended: Millions of dollars Foreign Currency Derivative Instruments Pension and Postretirement Liability Marketable Securities Total December 31, 2012 $ (438 ) $ (8 ) $ (1,088 ) $ 3 $ (1,531 ) Unrealized gain (loss) (122 ) 2 — 7 (113 ) Unrealized actuarial gain(loss) and prior service credit (cost) — — 508 — 508 Tax effect 25 — (190 ) — (165 ) Other comprehensive income (loss), net of tax (97 ) 2 318 7 230 Less: Other comprehensive loss available to noncontrolling interests (3 ) — — — (3 ) Other comprehensive income (loss) available to Whirlpool (94 ) 2 318 7 233 December 31, 2013 $ (532 ) $ (6 ) $ (770 ) $ 10 $ (1,298 ) Unrealized gain (loss) (392 ) (1 ) — — (393 ) Unrealized actuarial gain (loss) and prior service credit (cost) — — (233 ) — (233 ) Tax effect (5 ) — 85 — 80 Other comprehensive income (loss), net of tax (397 ) (1 ) (148 ) — (546 ) Less: Other comprehensive loss available to noncontrolling interests (4 ) — — — (4 ) Other comprehensive income (loss) available to Whirlpool (393 ) (1 ) (148 ) — (542 ) December 31, 2014 $ (925 ) $ (7 ) $ (918 ) $ 10 $ (1,840 ) Unrealized gain (loss) (432 ) (23 ) — 3 (452 ) Unrealized actuarial gain (loss) and prior service credit (cost) — — (79 ) — (79 ) Tax effect — — 30 — 30 Other comprehensive income (loss), net of tax (432 ) (23 ) (49 ) 3 (501 ) Less: Other comprehensive loss available to noncontrolling interests (9 ) — — — (9 ) Other comprehensive income (loss) available to Whirlpool $ (423 ) $ (23 ) $ (49 ) $ 3 $ (492 ) December 31, 2015 $ (1,348 ) $ (30 ) $ (967 ) $ 13 $ (2,332 ) 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 were calculated as follows: Millions of dollars and shares 2015 2014 2013 Numerator for basic and diluted earnings per share – net earnings available to Whirlpool $ 783 $ 650 $ 827 Denominator for basic earnings per share – weighted-average shares 78.7 78.3 79.3 Effect of dilutive securities – stock-based compensation 1.0 1.3 1.5 Denominator for diluted earnings per share – adjusted weighted-average shares 79.7 79.6 80.8 Anti-dilutive stock options/awards excluded from earnings per share 0.2 0.2 — Dividends Dividends per share paid to shareholders were $3.45 , $2.88 and $2.38 during 2015 , 2014 and 2013 , respectively. Repurchase Program On April 14, 2014 , our Board of Directors authorized a new 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. For the years ended December 31, 2015 and 2014 , we repurchased 1,505,299 shares at an aggregate purchase price of approximately $250 million and 165,900 shares at an aggregate purchase price of approximately $25 million . At December 31, 2015 , there were approximately $225 million in remaining funds authorized under this program. |
Share-based Incentive Plans
Share-based Incentive Plans | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Incentive Plans | SHARE-BASED INCENTIVE PLANS We sponsor several share-based employee incentive plans. Share-based compensation expense for grants awarded under these plans was $52 million , $47 million and $50 million in 2015 , 2014 , and 2013 , respectively. Related income tax benefits recognized in earnings were $18 million , $16 million and $17 million in 2015 , 2014 , and 2013 , respectively. At December 31, 2015 , unrecognized compensation cost related to non-vested stock option and stock unit awards totaled $47 million . The cost of these non-vested awards is expected to be recognized over a weighted-average remaining vesting period of 28 months. Share-Based Employee Incentive Plans On April 16, 2013, our stockholders approved the Amended and Restated 2010 Omnibus Stock and Incentive Plan (“2010 OSIP”). This plan was previously adopted by our Board of Directors on February 19, 2013 and provides for the issuance of stock options, performance stock units, performance shares, restricted stock and restricted stock units. No new awards may be granted under the 2010 OSIP after the tenth anniversary of the date that the stockholders approved the plan. However, the term and exercise of awards granted before then may extend beyond that date. At December 31, 2015 , approximately 6.6 million shares remain available for issuance under the 2010 OSIP. Stock Options Eligible employees may receive stock options as a portion of their total compensation. Such options generally become exercisable over a 3 -year period, expire 10 years from the date of grant and are subject to forfeiture upon termination of employment, other than by death, disability or retirement. We use the Black-Scholes option-pricing model to measure the fair value of stock options granted to employees. Granted options have exercise prices equal to the market price of Whirlpool common stock on the grant date. The principal assumptions used in valuing options include: (1) risk-free interest rate—an estimate based on the yield of United States zero coupon securities with a maturity equal to the expected life of the option; (2) expected volatility—an estimate based on the historical volatility of Whirlpool common stock for a period equal to the expected life of the option; and (3) expected option life—an estimate based on historical experience. Stock options are expensed on a straight-line basis, net of estimated forfeitures. Based on the results of the model, the weighted-average grant date fair value of stock options granted for 2015 , 2014 , and 2013 were $63.40 , $42.09 and $33.92 , respectively, using the following assumptions: Weighted Average Black-Scholes Assumptions 2015 2014 2013 Risk-free interest rate 1.5 % 1.5 % 0.9 % Expected volatility 35.5 % 38.2 % 40.3 % Expected dividend yield 1.4 % 1.8 % 1.8 % Expected option life, in years 5 5 5 Stock Option Activity The following table summarizes stock option activity during 2015 : In thousands, except per share data Number of Options Weighted- Average Exercise Price Outstanding at January 1 2,115 $ 88.62 Granted 282 213.14 Exercised (417 ) 90.99 Canceled or expired (42 ) 124.33 Outstanding at December 31 1,938 $ 105.46 Exercisable at December 31 1,295 $ 76.25 The total intrinsic value of stock options exercised was $48 million , $36 million , and $53 million for 2015 , 2014 , and 2013 , respectively. The related tax benefits were $18 million , $13 million and $19 million for 2015 , 2014 , and 2013 , respectively. Cash received from the exercise of stock options was $38 million , $38 million , and $95 million for 2015 , 2014 , and 2013 , respectively. The table below summarizes additional information related to stock options outstanding at December 31, 2015 : Options in thousands / dollars in millions, except share data Outstanding Net of Expected Forfeitures Options Exercisable Number of options 1,852 1,295 Weighted-average exercise price per share $ 105.53 $ 76.25 Aggregate intrinsic value $ 94 $ 92 Weighted-average remaining contractual term, in years 6 5 Stock Units Eligible employees may receive restricted stock units or performance stock units as a portion of their total compensation. Restricted stock units are typically granted to selected management employees on an annual basis and vest over three years. Periodically, restricted stock units may be granted to selected executives based on special recognition or retention circumstances and generally vest from three years to seven years. Some previously granted awards accrue dividend equivalents on outstanding units (in the form of additional stock units) based on dividends declared on Whirlpool common stock. These awards convert to unrestricted common stock at the conclusion of the vesting period. Performance stock units are granted to executives on an annual basis and generally vest over a three year period, converting to unrestricted common stock at the conclusion of the vesting period. The final award may equal 0% to 200% of a target based on pre-established Whirlpool financial performance measures. We measure compensation cost for stock units based on the closing market price of Whirlpool common stock at the grant date, with adjustments for performance stock units to reflect the final award granted. The weighted average grant date fair values of awards granted during 2015 , 2014 , and 2013 were $155.37 , $133.31 and $107.85 , respectively. The total fair value of stock units vested during 2015 , 2014 , and 2013 was $41 million , $25 million and $35 million , respectively. The following table summarizes stock unit activity during 2015 : Stock units in thousands, except per-share data Number of Stock Units Weighted- Average Grant Date Fair Value Non-vested, at January 1 1,104 $ 90.34 Granted 341 155.37 Canceled (53 ) 121.42 Vested and transferred to unrestricted (559 ) 74.21 Non-vested, at December 31 833 $ 125.71 Nonemployee Director Equity Awards Each nonemployee director receives an annual grant of Whirlpool common stock, with the number of shares to be issued to the director determined by dividing $125,000 by the closing price of Whirlpool common stock on the date of the annual meeting of our stockholders. Nonemployee directors receive a one-time grant of 1,000 shares of Whirlpool common stock made at the time they first join the Board. |
Restructuring Charges
Restructuring Charges | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring Charges [Abstract] | |
Restructuring Charges | RESTRUCTURING CHARGES During 2014 and the twelve months ended December 31, 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 $194 million as of December 31, 2015 ) in employee-related costs, €25 million (approximately $27 million as of December 31, 2015 ) in asset impairment costs, and €37 million (approximately $40 million as of December 31, 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 $227 million as of December 31, 2015 ) of the estimated €241 million total cost will result in future cash expenditures. The following tables summarize the changes to our restructuring liability for the years ended December 31, 2015 and 2014 : Millions of dollars 12/31/2014 Charges to Earnings Cash Paid Non-Cash and Other Revision of Estimate 12/31/2015 Employee termination costs $ 58 $ 136 $ (168 ) $ 1 $ 3 $ 30 Asset impairment costs — 30 — (30 ) — — Facility exit costs 4 12 (13 ) — — 3 Other exit costs 16 23 (21 ) — — 18 Total $ 78 $ 201 $ (202 ) $ (29 ) $ 3 $ 51 Millions of dollars 12/31/2013 Acquisition - related (1) Charge to Earnings Cash Paid Non-cash and Other 12/31/2014 Employee termination costs $ 74 $ 40 $ 82 $ (128 ) $ (10 ) $ 58 Asset impairment costs — — 26 — (26 ) — Facility exit costs 14 — 16 (26 ) — 4 Other exit costs 18 — 12 (14 ) — 16 Total $ 106 $ 40 $ 136 $ (168 ) $ (36 ) $ 78 (1) A $ 40 million restructuring liability was acquired in the acquisition of Indesit in the fourth quarter of 2014 related to an ongoing plan previously initiated by Indesit management. As of December 31, 2014, the acquired restructuring liability was $17 million . The following table summarizes 2015 restructuring charges by operating segment: Millions of dollars 2015 Charges North America $ 10 EMEA 158 Latin America 26 Asia — Corporate / Other 7 Total $ 201 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The income tax expense was $209 million , $189 million , and $68 million in 2015 , 2014 and 2013 , respectively. 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: Millions of dollars 2015 2014 2013 Earnings before income taxes United States $ 555 $ 325 $ 149 Foreign 476 556 768 Earnings before income taxes 1,031 881 917 Income tax computed at United States statutory rate 361 308 321 U.S. government tax incentives, including Energy Tax Credits (13 ) (10 ) (142 ) Foreign government tax incentives, including BEFIEX (19 ) (46 ) (63 ) Foreign tax rate differential (36 ) (17 ) (17 ) U.S. foreign tax credits (103 ) (148 ) (231 ) Valuation allowances (95 ) 9 16 State and local taxes, net of federal tax benefit 18 5 7 Foreign withholding taxes 16 16 29 U.S. tax on foreign dividends and subpart F income 57 56 195 Settlement of global tax audits 16 (5 ) (54 ) Other items, net 7 21 7 Income tax computed at effective worldwide tax rates $ 209 $ 189 $ 68 Current and Deferred Tax Provision The following table summarizes our income tax (benefit) provision for 2015 , 2014 and 2013 : 2015 2014 2013 Millions of dollars Current Deferred Current Deferred Current Deferred United States $ 98 $ 55 $ 7 $ 8 $ (60 ) $ (57 ) Foreign 181 (143 ) 182 12 187 (9 ) State and local 10 8 (2 ) (18 ) 2 5 $ 289 $ (80 ) $ 187 $ 2 $ 129 $ (61 ) Total income tax expense $ 209 $ 189 $ 68 United States Government Tax Incentives On December 18, 2015, the Protecting Americans from Tax Hikes Act of 2015 (the "Act") was signed into law. The Act makes permanent certain provisions including the Research and Development Credit. The Act extends through 2019 certain provisions including Bonus Depreciation and exempts certain types of income payments between related controlled foreign corporations. On January 2, 2013, The American Taxpayer Relief Act of 2012 (the “Act”) was signed into law. The Act extends certain provisions included in the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 to ensure that conservation and efficiency are a central component to the United States energy strategy. Among the provisions extended are manufacturers’ tax credits for the accelerated U.S. production of super-efficient clothes washers, refrigerators and dishwashers that meet or exceed certain Energy Star thresholds for energy and water conservation levels as set by the U.S. Department of Energy (“Energy Credit”). The tax credits apply to eligible production during the 2012 and 2013 calendar years provided the production of qualifying product in any individual year exceeds a rolling two year baseline of production. We continue to invest in innovation and energy efficient products that meet these standards for our customers. This provision was not extended to include calendar year 2014 and 2015. United States Tax on Foreign Dividends We have historically reinvested all unremitted earnings of our foreign subsidiaries and affiliates. We plan to distribute approximately $11 million of foreign earnings over the next several years. This distribution is forecasted to result in tax benefits which have not been recorded because of their contingent nature. There has been no deferred tax liability provided on the remaining amount of unremitted earnings of $4.2 billion at December 31, 2015 . The Company had cash and cash equivalents of $772 million at December 31, 2015 , of which $726 million was held by subsidiaries in foreign countries. Our intent is to permanently reinvest these funds outside of the United States and our current plans do not demonstrate a need to repatriate these funds to fund our U.S. operations. However, if these funds were repatriated, then we would be required to accrue and pay applicable United States taxes (subject to an adjustment for foreign tax credits) and withholding taxes payable to various countries. The repatriation could result in an adjustment to the tax liability after considering available foreign tax credits and other tax attributes. It is not practicable to estimate the amount of the deferred tax liability associated with these unremitted earnings due to the complexity of its hypothetical calculation. Valuation Allowances At December 31, 2015 , we had net operating loss carryforwards of $3.4 billion , $1.1 billion of which were United States state net operating loss carryforwards. Of the total net operating loss carryforwards, $2.0 billion do not expire, with substantially all of the remaining carryforwards expiring in various years through 2035. As of December 31, 2015 , we had $253 million of foreign tax credit carryforwards and $1.0 billion of United States general business credit carryforwards available to offset future payments of federal income taxes, expiring between 2017 and 2035. We routinely review the future realization of deferred tax assets based on projected future reversal of taxable temporary differences, available tax planning strategies and projected future taxable income. We have recorded a valuation allowance to reflect the net estimated amount of certain deferred tax assets associated with net operating loss and other deferred tax assets we believe will be realized. Our recorded valuation allowance of $286 million at December 31, 2015 consists of $239 million of net operating loss carryforward deferred tax assets and $47 million of other deferred tax assets. We believe that it is more likely than not that we will realize the benefit of existing deferred tax assets, net of valuation allowances mentioned above. Settlement of Global Tax Audits We are in various stages of audits by certain governmental tax authorities. We establish liabilities for the difference between tax return provisions and the benefits recognized in our financial statements. Such amounts represent a reasonable provision for taxes ultimately expected to be paid, and may need to be adjusted over time as more information becomes known. We are no longer subject to any significant United States federal tax examinations for the years before 2008, or any state, local or foreign income tax examinations by tax authorities for years before 2004. Deferred Tax Liabilities and Assets Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities used for financial reporting purposes and the amounts used for income tax purposes. The following table summarizes the significant components of our deferred tax liabilities and assets at December 31, 2015 and 2014 : Millions of dollars 2015 2014 Deferred tax liabilities Intangibles $ 770 $ 800 Property, net 175 156 LIFO inventory 57 45 Other 214 193 Total deferred tax liabilities 1,216 1,194 Deferred tax assets U.S. general business credit carryforwards, including Energy Tax Credits 1,010 1,005 Pensions 315 316 Loss carryforwards 683 650 Postretirement obligations 168 199 Foreign tax credit carryforwards 253 249 Research and development capitalization 306 358 Employee payroll and benefits 164 141 Accrued expenses 133 110 Product warranty accrual 64 62 Receivable and inventory allowances 106 73 Other 353 300 Total deferred tax assets 3,555 3,463 Valuation allowances for deferred tax assets (286 ) (308 ) Deferred tax assets, net of valuation allowances 3,269 3,155 Net deferred tax assets $ 2,053 $ 1,961 Unrecognized Tax Benefits The following table represents a reconciliation of the beginning and ending amount of unrecognized tax benefits that if recognized would impact the effective tax rate, excluding federal benefits of state and local tax positions, and interest and penalties: Millions of dollars 2015 2014 2013 Balance, January 1 $ 141 $ 113 $ 178 Additions for tax positions of the current year 12 17 17 Additions for tax positions of prior years 27 4 6 Reductions for tax positions of prior years (25 ) (23 ) (81 ) Settlements during the period (5 ) (11 ) (3 ) Positions assumed in acquisitions — 42 — Lapses of applicable statute of limitation (7 ) (1 ) (4 ) Balance, December 31 $ 143 $ 141 $ 113 In connection with our acquisitions of Hefei Sanyo and Indesit , the Company assumed $72 million of uncertain tax position liabilities, including $31 million of interest and penalties. The acquisition of Hefei Sanyo resulted in an assumed uncertain tax position of $62 million that was reflected in the opening balance sheet, while the acquisition of Indesit resulted in an assumed uncertain tax position of $10 million . It is reasonably possible that certain unrecognized tax benefits of $30 million could be settled with various related jurisdictions during the next 12 months. Interest and penalties associated with unrecognized tax benefits resulted in a net expense of $5 million as of December 31, 2015 , and a net benefit of $6 million and $12 million in 2014 and 2013 , respectively. We have accrued a total of $63 million at December 31, 2015 and 2014 , respectively. |
Pension and Other Postretiremen
Pension and Other Postretirement Benefit Plans | 12 Months Ended |
Dec. 31, 2015 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |
Pension and Other Postretirement Benefit Plans | PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS We have funded and unfunded defined benefit pension plans that cover certain employees in North America, Europe, Asia and Brazil. The United States plans are frozen for the majority of participants. The formula for United States salaried employees covered under the qualified defined benefit plan was based on years of service and final average salary, while the formula for United States hourly employees covered under the defined benefit plans was based on specific dollar amounts for each year of service. There were multiple formulas for employees covered under the qualified and nonqualified defined benefit plans sponsored by Maytag, including a cash balance formula. In addition, we sponsor an unfunded Supplemental Executive Retirement Plan. This plan is nonqualified and provides certain key employees defined pension benefits that supplement those provided by the company’s other retirement plans. A defined contribution plan is being provided to all United States employees subsequent to the pension plan freezes and is not classified within the net periodic benefit cost. The company provides annual match and automatic company contributions, in cash or company stock, of up to 7% of employees’ eligible pay. Our contributions during 2015 , 2014 and 2013 were $76 million , $71 million and $68 million , respectively. We provide postretirement health care benefits for eligible retired employees in the United States, Canada and Brazil. For our United States plan, which comprises the majority of our obligation, eligible retirees include those who were full-time employees with 10 years of service who attained age 55 while in service with us and those union retirees who met the eligibility requirements of their collective bargaining agreements. In general, the postretirement health and welfare benefit plans include cost-sharing provisions that limit our exposure for recent and future retirees and are contributory, with participants’ contributions adjusted annually. The plans are unfunded. We reserve the right to modify these benefits in the future. Defined Benefit - Pensions and Postretirement Benefit Plans Obligations and Funded Status at End of Year United States Pension Benefits Foreign Pension Benefits Other Postretirement Benefits Millions of dollars 2015 2014 2015 2014 2015 2014 Funded status Fair value of plan assets $ 2,741 $ 3,042 $ 552 $ 640 $ — $ — Benefit obligations 3,470 3,796 865 1,026 441 502 Funded status $ (729 ) $ (754 ) $ (313 ) $ (386 ) $ (441 ) $ (502 ) Amounts recognized in the consolidated balance sheet Noncurrent asset $ — $ — $ 5 $ 8 $ — $ — Current liability (10 ) (9 ) (12 ) (16 ) (51 ) (56 ) Noncurrent liability (719 ) (745 ) (306 ) (378 ) (390 ) (446 ) Amount recognized $ (729 ) $ (754 ) $ (313 ) $ (386 ) $ (441 ) $ (502 ) Amounts recognized in accumulated other comprehensive loss (pre-tax) Net actuarial loss $ 1,404 $ 1,368 $ 99 $ 118 $ 20 $ 53 Prior service (credit) cost (11 ) (14 ) (3 ) — (25 ) (120 ) Amount recognized $ 1,393 $ 1,354 $ 96 $ 118 $ (5 ) $ (67 ) Change in Benefit Obligation United States Pension Benefits Foreign Pension Benefits Other Postretirement Benefits Millions of dollars 2015 2014 2015 2014 2015 2014 Benefit obligation, beginning of year $ 3,796 $ 3,546 $ 1,026 $ 439 $ 502 $ 509 Service cost 3 2 5 5 2 3 Interest cost 150 167 31 22 19 24 Plan participants’ contributions — — 1 1 7 7 Actuarial loss (gain) (164 ) 384 (11 ) 59 (32 ) 9 Benefits paid (315 ) (303 ) (31 ) (24 ) (55 ) (60 ) Plan amendments — — (3 ) (3 ) 8 14 Acquisitions (1) — — — 610 — — Transfer of benefits — — — — — — Settlements / curtailment (gain) — — (66 ) (15 ) — — Foreign currency exchange rates — — (87 ) (68 ) (10 ) (4 ) Benefit obligation, end of year $ 3,470 $ 3,796 $ 865 $ 1,026 $ 441 $ 502 Accumulated benefit obligation, end of year $ 3,459 $ 3,786 $ 806 $ 964 N/A N/A (1) Pension obligation acquired through acquisition of Indesit. During the second quarter 2011, we modified retiree medical benefits for certain retirees to be consistent with those benefits provided by the Whirlpool Corporation Group Benefit Plan. We accounted for these changes as a plan amendment in 2011, resulting in a reduction in the postretirement benefit obligation of $ 138 million of which $106 million of benefit has been recognized in net earnings since 2011, with an offset to accumulated other comprehensive loss, net of tax. In response, a group of retirees initiated legal proceedings against Whirlpool asserting the above benefits are vested. We disagree with plaintiffs' assertion and intend to continue vigorously defending our position, including through any necessary appeal process. However, an unfavorable ruling in any particular reporting period could require us to immediately reverse the benefit we have recognized to that point, and remeasure the associated postretirement benefit obligation, the impact of which will depend on timing and the actuarial assumptions then in effect. Change in Plan Assets United States Pension Benefits Foreign Pension Benefits Other Postretirement Benefits Millions of dollars 2015 2014 2015 2014 2015 2014 Fair value of plan assets, beginning of year $ 3,042 $ 2,835 $ 640 $ 206 $ — $ — Actual return on plan assets (62 ) 381 16 33 — — Employer contribution 76 129 39 30 48 53 Plan participants’ contributions — — 1 1 7 7 Benefits paid (315 ) (303 ) (31 ) (24 ) (55 ) (60 ) Acquisitions (1) — — — 437 — — Other Adjustments — — 4 — — — Settlements — — (73 ) (10 ) — — Foreign currency exchange rates — — (44 ) (33 ) — — Fair value of plan assets, end of year $ 2,741 $ 3,042 $ 552 $ 640 $ — $ — (1) Pension assets acquired through acquisition of Indesit. Components of Net Periodic Benefit Cost United States Pension Benefits Foreign Pension Benefits Other Postretirement Benefits Millions of dollars 2015 2014 2013 2015 2014 2013 2015 2014 2013 Service cost $ 3 $ 2 $ 2 $ 5 $ 5 $ 6 $ 2 $ 3 $ 4 Interest cost 150 167 162 31 22 17 19 24 18 Expected return on plan assets (191 ) (193 ) (191 ) (33 ) (16 ) (10 ) — — — Amortization: Actuarial loss 53 43 62 5 5 6 — — 1 Prior service cost (credit) (3 ) (3 ) (3 ) — 1 1 (23 ) (36 ) (39 ) Curtailment gain — — — — — — (63 ) — — Settlement loss — — 3 12 4 1 — — — Net periodic benefit cost $ 12 $ 16 $ 35 $ 20 $ 21 $ 21 $ (65 ) $ (9 ) $ (16 ) 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 $15 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. Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Loss (Pre-Tax) in 2015 Millions of dollars United States Pension Benefits Foreign Pension Benefits Other Postretirement Benefits Current year actuarial loss $ 89 $ (2 ) $ (32 ) Actuarial (loss) recognized during the year (53 ) (17 ) — Current year prior service cost (credit) — (3 ) 8 Prior service credit (cost) recognized during the year 3 — 86 Total recognized in other comprehensive loss (pre-tax) $ 39 $ (22 ) $ 62 Total recognized in net periodic benefit costs and other comprehensive loss (pre-tax) $ 51 $ (2 ) $ (3 ) Estimated Pre-Tax Amounts that will be amortized from Accumulated Other Comprehensive Loss into Net Periodic Pension Cost in 2016 Millions of dollars United States Pension Benefits Foreign Pension Benefits Other Postretirement Benefits Actuarial loss $ 46 $ 4 $ — Prior service (credit) (3 ) — (10 ) Total $ 43 $ 4 $ (10 ) Assumptions Weighted-Average Assumptions used to Determine Benefit Obligation at End of Year United States Pension Benefits Foreign Pension Benefits Other Postretirement Benefits 2015 2014 2015 2014 2015 2014 Discount rate 4.45 % 4.05 % 3.40 % 3.32 % 4.51 % 4.27 % Rate of compensation increase 4.50 % 4.50 % 3.06 % 3.23 % N/A N/A Weighted-Average Assumptions used to Determine Net Periodic Cost United States Pension Benefits Foreign Pension Benefits Other Postretirement Benefits 2015 2014 2013 2015 2014 2013 2015 2014 2013 Discount rate 4.05 % 4.95 % 4.05 % 3.32 % 3.89 % 3.93 % 4.74 % 5.25 % 4.03 % Expected long-term rate of return on plan assets 7.00 % 7.25 % 7.50 % 5.63 % 5.44 % 5.40 % N/A N/A N/A Rate of compensation increase 4.50 % 4.50 % 4.50 % 3.23 % 3.35 % 3.51 % N/A N/A N/A Health care cost trend rate Initial rate N/A N/A N/A N/A N/A N/A 7.00 % 7.00 % 7.00 % Ultimate rate N/A N/A N/A N/A N/A N/A 5.00 % 5.00 % 5.00 % Year that ultimate rate will be reached N/A N/A N/A N/A N/A N/A 2019 2017 2017 Discount Rate For our United States pension and postretirement benefit plans, the discount rate was selected using a hypothetical portfolio of high quality bonds outstanding at December 31 that would provide the necessary cash flows to match our projected benefit payments. For our foreign pension and postretirement benefit plans, the discount rate was selected using high quality bond yields for the respective country or region covered by the plan. Expected Return on Plan Assets In the United States, the expected rate of return on plan assets was determined by using the historical asset returns for publicly traded equity and fixed income securities tracked since 1926 and the historical returns for private equity. The historical equity returns were adjusted downward to reflect future expectations. The expected returns are weighted by the targeted asset allocations. The resulting weighted-average return was rounded to the nearest quarter of one percent. For foreign pension plans, the expected rate of return on plan assets was primarily determined by observing historical returns in the local fixed income and equity markets and computing the weighted average returns with the weights being the asset allocation of each plan. Estimated Impact of One Percentage-Point Change in Assumed Health Care Cost Trend Rate A one percentage point change in assumed health care cost trend rates would have the following effects on our health care plan: Millions of dollars One Percentage Point Increase One Percentage Point Decrease Effect on total of service and interest cost $ — $ — Effect on postretirement benefit obligations 3 (2 ) Cash Flows Funding Policy Our funding policy is to contribute to our United States pension plans amounts sufficient to meet the minimum funding requirement as defined by employee benefit and tax laws, plus additional amounts which we may determine to be appropriate. In certain countries other than the United States, the funding of pension plans is not common practice. Contributions to our United States pension plans may be made in the form of cash or company stock. We pay for retiree medical benefits as they are incurred. Expected Employer Contributions to Funded Plans Millions of dollars United States Pension Benefits (1) Foreign Pension Benefits 2016 $ — $ 17 . Expected Benefit Payments Millions of dollars United States Pension Benefits Foreign Pension Benefits Other Postretirement Benefits 2016 $ 289 $ 35 $ 52 2017 269 35 52 2018 268 37 44 2019 264 39 42 2020 257 38 37 2021-2025 1,198 200 147 Plan Assets Our overall investment strategy is to achieve an appropriate mix of investments for long-term growth and for near-term benefit payments with a wide diversification of asset types, fund strategies, and investment fund managers. The target allocation for plan assets is generally 41% equity and 59% fixed income, with exceptions for foreign pension plans. For our U.S. plan, the target allocation for equity securities is approximately 51% allocated to United States large-cap, 27% to international equity, 14% to United States mid and small-cap companies and 8% in venture capital. The target allocation for fixed income is allocated with 75% to corporate bonds and 25% to United States treasury and other government securities. The fixed income securities duration is intended to match that of our United States pension liabilities. Plan assets are reported at fair value based on an exit price, representing the amount that would be received to sell an asset in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset. 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 manage the process and approve the results of a third party pricing service to value the majority of our securities and to determine the appropriate level in the fair value hierarchy. The fair values of our pension plan assets at December 31, 2015 and 2014 , by asset category were as follows: December 31, Quoted prices (Level 1) Other significant observable inputs (Level 2) Significant unobservable inputs (Level 3) Total Millions of dollars 2015 2014 2015 2014 2015 2014 2015 2014 Cash and cash equivalents $ 26 $ 29 $ — $ — $ — $ — $ 26 $ 29 Government and government agency securities (a) U.S. securities — — 494 579 — — 494 579 International securities — — 212 253 — — 212 253 Corporate bonds and notes (a) U.S. companies — — 909 1,000 — — 909 1,000 International companies — — 160 321 — — 160 321 Equity securities (b) U.S. companies 13 12 — — — — 13 12 International companies 472 427 — — — — 472 427 Mutual funds (c) 59 67 — — — — 59 67 Common and collective funds (d) U.S. equity securities — — 648 651 — — 648 651 International equity securities — — 65 66 — — 65 66 Short-term investment fund — — 55 63 — — 55 63 Limited partnerships (e) U.S. private equity investments — — — — 120 140 120 140 Diversified fund of funds — — — — 21 32 21 32 Emerging growth — — — — 15 23 15 23 Real estate (f) — — 10 10 — — 10 10 All other investments — — 14 9 — — 14 9 $ 570 $ 535 $ 2,567 $ 2,952 $ 156 $ 195 $ 3,293 $ 3,682 (a) Valued using pricing vendors who use proprietary models to estimate the price a dealer would pay to buy a security using significant observable inputs, such as interest rates, yield curves, and credit risk. (b) Valued using the closing stock price on a national securities exchange, which reflects the last reported sales price on the last business day of the year. (c) Valued using the net asset value (NAV) of the fund, which is based on the fair value of underlying securities. The fund primarily invests in a diversified portfolio of equity securities issued by non-U.S. companies. (d) Valued using the NAV of the fund, which is based on the fair value of underlying securities. (e) Valued at estimated fair value based on the proportionate share of the limited partnership's fair value, as determined by the general partner. (f) Valued using the NAV of the fund, which is based on the fair value of underlying assets. Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Millions of dollars Limited Partnerships Balance, December 31, 2014 $ 195 Realized gains (net) 34 Unrealized gains (net) (20 ) Purchases 5 Settlements (58 ) Balance, December 31, 2015 $ 156 Additional Information The projected benefit obligation and fair value of plan assets for pension plans with a projected benefit obligation in excess of plan assets at December 31, 2015 and 2014 were as follows: United States Pension Benefits Foreign Pension Benefits Millions of dollars 2015 2014 2015 2014 Projected benefit obligation $ 3,470 $ 3,796 $ 776 $ 872 Fair value of plan assets 2,741 3,042 469 487 The projected benefit obligation, accumulated benefit obligation and fair value of plan assets for pension plans with an accumulated benefit obligation in excess of plan assets at December 31, 2015 and 2014 were as follows: United States Pension Benefits Foreign Pension Benefits Millions of dollars 2015 2014 2015 2014 Projected benefit obligation $ 3,470 $ 3,796 $ 730 $ 872 Accumulated benefit obligation 3,459 3,786 690 825 Fair value of plan assets 2,741 3,042 424 487 |
Operating Segment Information
Operating Segment Information | 12 Months Ended |
Dec. 31, 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. We conduct business in two countries - the United States and Brazil - which individually comprised over 10% of consolidated net sales or long-lived assets within the last three years. The following table summarizes net sales and long-lived assets by geographic area: Millions of dollars United States Brazil All Other Countries Total 2015: Sales to external customers 9,189 1,915 9,787 20,891 Long-lived assets 4,558 253 4,647 9,458 2014: Sales to external customers $ 9,064 $ 3,204 $ 7,604 $ 19,872 Long-lived assets 4,529 321 4,741 9,591 2013: Sales to external customers $ 8,577 $ 3,295 $ 6,897 $ 18,769 Long-lived assets 4,461 335 1,671 6,467 As described above, our chief operating decision maker reviews each operating segment’s performance based upon operating income which excludes restructuring costs and intangible asset impairment, if any. Intangible asset impairment and restructuring costs are included in operating profit on a consolidated basis and included in the Other/Eliminations column in the table below: OPERATING SEGMENTS Millions of dollars North America EMEA Latin America Asia Other/ Eliminations Total Whirlpool Net sales 2015 10,732 5,601 3,349 1,417 (208 ) 20,891 2014 10,634 3,905 4,686 816 (169 ) 19,872 2013 10,178 3,024 4,928 807 (168 ) 18,769 Intersegment sales 2015 $ 218 $ 271 $ 211 $ 52 $ (752 ) $ — 2014 244 79 180 266 (769 ) — 2013 256 79 174 257 (766 ) — Depreciation and amortization 2015 $ 259 $ 199 $ 67 $ 61 $ 82 $ 668 2014 263 104 86 29 78 560 2013 238 95 91 18 98 540 Operating profit (loss) 2015 $ 1,252 $ 188 $ 184 $ 80 $ (419 ) $ 1,285 2014 1,072 59 475 (21 ) (397 ) 1,188 2013 1,070 (4 ) 557 34 (408 ) 1,249 Total assets 2015 $ 7,683 $ 7,351 $ 2,260 $ 2,738 $ (1,022 ) $ 19,010 2014 7,736 7,597 2,917 2,734 (982 ) 20,002 2013 7,785 2,955 3,380 921 503 15,544 Capital expenditures 2015 $ 243 $ 220 $ 106 $ 47 $ 73 $ 689 2014 271 187 133 29 100 720 2013 254 101 108 25 90 578 |
Quarterly Results of Operations
Quarterly Results of Operations (Unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operations (Unaudited) | QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) Three months ended Dec. 31 Sept. 30 Jun. 30 Mar. 31 Millions of dollars, except per share data 2015 2014 2015 2014 2015 2014 2015 2014 Net sales $ 5,560 $ 6,003 $ 5,277 $ 4,824 $ 5,208 $ 4,682 $ 4,846 $ 4,363 Cost of products sold 4,558 4,977 4,347 3,997 4,303 3,895 3,993 3,608 Operating profit 380 281 329 335 273 291 303 281 Interest and sundry income (expense) (57 ) (64 ) (21 ) (39 ) 42 (16 ) (53 ) (23 ) Net earnings 189 108 250 235 185 185 198 164 Net earnings available to Whirlpool 180 81 235 230 177 179 191 160 Per share of common stock: (1) Basic net earnings $ 2.31 $ 1.04 $ 2.98 $ 2.92 $ 2.24 $ 2.29 $ 2.42 $ 2.06 Diluted net earnings 2.28 1.02 2.95 2.88 2.21 2.25 2.38 2.02 Dividends 0.90 0.75 0.90 0.75 0.90 0.75 0.75 0.625 Market price range of common stock: (2) High $ 167.72 $ 196.71 $ 186.82 $ 156.13 $ 202.50 $ 156.71 $ 217.11 $ 160.01 Low 140.50 139.85 143.75 135.37 172.85 136.64 186.14 124.39 Close 146.87 193.74 147.26 145.65 173.05 139.22 202.06 149.46 (1) The quarterly earnings per share amounts will not necessarily add to the earnings per share computed for the year due to the method used in calculating per share data (2) Composite price as reported by the New York Stock Exchange |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2015 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS WHIRLPOOL CORPORATION AND SUBSIDIARIES Years Ended December 31, 2015 , 2014 and 2013 (Millions of dollars) COL. A COL. B COL. C COL. D COL. E ADDITIONS Description Balance at Beginning (1) Charged to Costs and Expenses (2) (3) Deductions —Describe (A) Balance at End Year Ended December 31, 2015: Allowance for doubtful accounts— accounts receivable 154 5 24 — (23 ) 160 Year Ended December 31, 2014: Allowance for doubtful accounts— accounts receivable 73 76 45 — (40 ) 154 Year Ended December 31, 2013: Allowance for doubtful accounts— accounts receivable 60 21 — — (8 ) 73 Note A—The amounts represent accounts charged off, less translation adjustments and transfers. Recoveries were nominal for 2015 , 2014 and 2013 . |
Summary of Principal Accounti24
Summary of Principal Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation Our Consolidated Financial Statements include all majority-owned subsidiaries. All material intercompany transactions have been eliminated upon consolidation. 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 | Reclassifications We reclassified certain prior period amounts in our Consolidated Financial Statements to be consistent with current period presentation. The effect of these reclassifications is not material. |
Use of Estimates | Use of Estimates We are required to make estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and accompanying notes. Actual results could differ materially from those estimates. |
Revenue Recognition | Revenue Recognition Sales are recorded when title passes to the customer as determined by the shipping terms. For the majority of our sales, title is transferred to the customer as soon as products are shipped. For a portion of our sales, title is transferred to the customer upon receipt of products at the customer’s location. Allowances for estimated returns are made on sales of certain products based on historical return rates for the products involved. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts We carry accounts receivable at sales value less an allowance for doubtful accounts. We periodically evaluate accounts receivable and establish an allowance for doubtful accounts based on a combination of specific customer circumstances, credit conditions and the history of write-offs and collections. We evaluate items on an individual basis when determining accounts receivable write-offs. In general, our policy is to not charge interest on trade receivables after the invoice becomes past due. A receivable is considered past due if payment has not been received within agreed upon invoice terms. |
Freight and Warehousing Costs | Freight and Warehousing Costs We classify freight and warehousing costs within cost of products sold in our Consolidated Statements of Income. |
Cash and Cash Equivalents | Cash and Cash Equivalents All highly liquid debt instruments purchased with an initial maturity of three months or less are considered cash equivalents. |
Restricted Cash | Restricted Cash Restricted cash relates to the private placement funds paid by Whirlpool to purchase a portion of the shares needed to acquire majority control of Hefei Sanyo in October 2014. The restricted cash is used to fund capital and technical resources to enhance Whirlpool China’s research and development and working capital. |
Fair Value Measurements | Fair Value Measurements We measure fair value 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 that market participants would use in pricing an asset or liability. 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 December 31, 2015 and 2014 , with the exception of those disclosed in Note 13 . We measured fair value for money market funds and available for sale investments using quoted market prices in active markets for identical or comparable assets. We measured fair value for derivative contracts, all of which have counterparties with high credit ratings, based on model driven valuations using significant inputs derived from observable market data. |
Inventories | Inventories Inventories are stated at first-in, first-out (“FIFO”) cost, except United States production inventories, which are stated at last-in, first-out (“LIFO”) cost, and Latin America and Asia and EMEA inventories, which are stated at average cost. Costs do not exceed net realizable values. See Note 5 for additional information about inventories. |
Property | Property Property is stated at cost, net of accumulated depreciation. For production machinery and equipment, we record depreciation based on units produced, unless units produced drop below a minimum threshold at which point depreciation is recorded using the straight-line method, excluding property acquired from the Hefei Sanyo and Indesit acquisitions. For non-production assets and assets acquired from Hefei Sanyo and Indesit , as of December 31, 2015 we depreciate costs based on the straight-line method. Depreciation expense for property, including accelerated depreciation classified as restructuring expense in our Consolidated Statements of Income, was $594 million , $527 million and $515 million in 2015 , 2014 and 2013 , respectively. The following table summarizes our property as of December 31, 2015 and 2014 : Millions of dollars 2015 2014 Estimated Useful Life Land $ 131 $ 142 n/a Buildings 1,614 1,616 10 to 50 years Machinery and equipment 7,982 8,182 3 to 25 years Accumulated depreciation (5,953 ) (5,959 ) Property, net $ 3,774 $ 3,981 We classify gains and losses associated with asset dispositions in the same line item as the underlying depreciation of the disposed asset in the Consolidated Statements of Income. During 2015 we retired approximately $221 million of machinery and equipment no longer in use. During 2014 we retired approximately $503 million of property, of which $450 million was machinery and equipment. Net gains and losses recognized in cost of products sold were not material for 2015 , 2014 and 2013 . We record impairment losses on long-lived assets, excluding goodwill and intangibles, when events and circumstances indicate the assets may be impaired and the estimated future cash flows generated by those assets are less than their carrying amounts. |
Goodwill and Other Intangibles | Goodwill and Other Intangibles In 2015, the Company elected to perform a quantitative analysis using a discounted cash flow model and other valuation techniques, to evaluate goodwill and other indefinite-life intangible assets. Based on the results of our quantitative assessment conducted on October 1, 2015, the fair values of Whirlpool's operating segments continue to exceed their respective carrying values. We evaluate certain indefinite-lived intangibles using a qualitative assessment to determine whether it is more likely than not that the fair value of the indefinite lived intangible asset is less than its carrying amount. If we determine that the fair value may be less than its carrying amount, the fair value of the trademark is estimated and compared to its carrying value to determine if an impairment exists. Otherwise, we conclude that no impairment is indicated and we do not perform the quantitative test. When the qualitative assessment is not utilized and a quantitative test is performed, we estimate the fair value of these intangible assets using the relief-from-royalty method, which requires assumptions related to projected revenues from our annual long-range plan; assumed royalty rates that could be payable if we did not own the trademark; and a discount rate based on our weighted average cost of capital. We recognize an impairment loss when the estimated fair value of the indefinite-lived intangible asset is less than its carrying value. Definite lived intangible assets are amortized over their estimated useful life. See Note 3 for additional information about goodwill and intangible assets. |
Accounts Payable Outsourcing | Accounts Payable Outsourcing We offer our suppliers access to third party payable processors, independent to Whirlpool. The processors allow suppliers to sell their receivables to financial institutions at the sole discretion of both the supplier and the financial institution. In China, as a common practice we pay suppliers with banker’s acceptance drafts. Banker’s acceptance drafts allow suppliers to sell their receivables to financial institutions at the sole discretion of both the supplier and the financial institution. We have no economic interest in the sale of these receivables and no direct financial relationship with the financial institutions concerning these services. All of our obligations, including amounts due, remain to our suppliers as stated in our supplier agreements. |
Derivative Financial Instruments | Derivative Financial Instruments We use derivative instruments designated as cash flow and fair value hedges to manage our exposure to the volatility in material costs, foreign currency and interest rates on certain debt instruments. Changes in the fair value of derivative assets or liabilities (i.e., gains or losses) are recognized depending upon the type of hedging relationship and whether a hedge has been designated. For those derivative instruments that qualify for hedge accounting, we designate the hedging instrument, based upon the exposure being hedged, as a cash flow hedge, fair value hedge, or a hedge of a net investment in a foreign operation. For a derivative instrument designated as a fair value hedge, the gain or loss on the derivative is recognized in earnings in the period of change in fair value together with the offsetting gain or loss on the hedged item. For a derivative instrument designated as a cash flow hedge, the effective portion of the derivative’s gain or loss is initially reported as a component of Other Comprehensive Income and is subsequently recognized in earnings when the hedged exposure affects earnings. For a derivative instrument designated as a hedge of a net investment in a foreign operation, the effective portion of the derivative’s gain or loss is reported in Other Comprehensive Income (Loss) as part of the cumulative translation adjustment. Changes in fair value of derivative instruments that do not qualify for hedge accounting are recognized immediately in current net earnings. See Note 8 for additional information about hedges and derivative financial instruments. |
Foreign Currency Translation | Foreign Currency Translation and Transactions Foreign currency denominated assets and liabilities are translated into United States dollars at exchange rates existing at the respective balance sheet dates. Translation adjustments resulting from fluctuations in exchange rates are recorded as a separate component of Accumulated Other Comprehensive Income (Loss) within stockholders’ equity. The results of operations of foreign subsidiaries are translated at the average exchange rates during the respective periods. Gains and losses resulting from foreign currency transactions are included in net earnings. |
Research and Development Costs | Research and Development Costs Research and development costs are charged to expense |
Advertising Costs | Advertising Costs Advertising costs are charged to expense when the advertisement is first communicated |
Income Taxes | Income Taxes We account for income taxes using the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences of temporary differences between the financial statement and tax basis of assets and liabilities using enacted rates. The effect of a change in tax rates on deferred tax assets is recognized in income in the period of enactment date. We recognize, in other current and noncurrent liabilities, in the Consolidated Balance Sheets, effects of an uncertain income tax position when it is more likely than not, based on technical merits, that the position will be sustained upon examination. We accrue for other tax contingencies when it is probable that a liability to a taxing authority has been incurred and the amount of the contingency can be reasonably estimated. Provision is made for taxes on undistributed earnings of foreign subsidiaries and related companies to the extent that such earnings are not deemed to be permanently invested. See Note 12 for additional information about income taxes. |
Stock Based Compensation | Stock Based Compensation We recognize stock based compensation expense based on the grant date fair value of the award over the period during which an employee is required to provide service in exchange for the award (generally the vesting period). The fair value of stock options is determined using the Black-Scholes option-pricing model, which incorporates assumptions regarding the risk-free interest rate, expected volatility, expected option life, expected forfeitures and dividend yield. Stock options are granted with an exercise price equal to the stock price on the date of grant. The fair value of restricted stock units and performance stock units is generally based on the closing market price of Whirlpool common stock on the grant date. See Note 10 for additional information about stock based compensation. |
Befiex Credits | BEFIEX Credits In previous years, our Brazilian operations earned tax credits under the Brazilian government’s export incentive program (BEFIEX). These credits reduce Brazilian federal excise taxes on domestic sales, resulting in an increase in the operations’ recorded net sales. We recognized export credits as they were monetized. See Note 7 and Note 12 for additional information regarding BEFIEX credits. |
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 permitted for annual reporting periods beginning after December 15, 2016. While we have not completed our impact analysis, we do not expect the adoption to have a material impact on our Consolidated Financial Statements. We do not anticipate early adoption of the standard. 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 in Note 2 in our Consolidated Financial Statements. In November 2015, FASB issued ASU No. 2015-17, "Income Taxes (Topic 740) - Balance Sheet Classification of Deferred Taxes", which supersedes the guidance in Topic 740, Income Taxes, that requires an entity to separate deferred tax liabilities and assets into a current amount and noncurrent amount in a classified statement of financial position. The amendment requires entities that present a classified balance sheet to classify all deferred tax liabilities and assets as a noncurrent amount. This guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2016, and may be early adopted on a prospective basis or on a retrospective basis to all periods presented. We have not yet determined the potential effects from this pronouncement on 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. |
Goodwill and Intangible Assets | We evaluate goodwill and indefinite lived intangibles for impairment annually on October 1. Goodwill The Company performs a quantitative analysis using a discounted cash flow model and other valuation techniques, but may elect to perform a qualitative analysis. In performing a quantitative assessment, we estimate fair value using the best information available to us, including market information and discounted cash flow projections also referred to as the income approach. The income approach uses operating segments projection of estimated operating results and cash flows that are discounted using a weighted-average cost of capital that is determined based on current market conditions. The projection uses management’s best estimates of economic and market conditions over the projected period including growth rates in sales, costs and number of units, estimates of future expected changes in operating margins and cash expenditures. Other estimates and assumptions include terminal value growth rates, future estimates of capital expenditures and changes in future working capital requirements. The estimated fair value of each operating segment is compared to their respective carrying values. Sensitivity analyses were performed around these assumptions in order to assess the reasonableness of the assumptions and the resulting estimated fair values. Additionally we validate our estimates of fair value under the income approach by comparing the values to fair value estimates using a market approach. A market approach estimates fair value by applying cash flow multiples to the reporting unit’s operating performance. The multiples are derived from comparable publicly traded companies with similar operating and investment characteristics of the reporting units. We consider the implied control premium and conclude whether the implied control premium is reasonable based on other recent market transactions. If the estimated fair value of the reporting unit is less than its carrying value, the Company then performs additional analysis to determine if the reporting unit’s goodwill should be impaired. If actual results are not consistent with managements’ estimate and assumptions, goodwill may be overstated and a charge against net income would be required, which would adversely affect the Company’s financial statements. |
Summary of Principal Accounti25
Summary of Principal Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Property, Plant and Equipment | The following table summarizes our property as of December 31, 2015 and 2014 : Millions of dollars 2015 2014 Estimated Useful Life Land $ 131 $ 142 n/a Buildings 1,614 1,616 10 to 50 years Machinery and equipment 7,982 8,182 3 to 25 years Accumulated depreciation (5,953 ) (5,959 ) Property, net $ 3,774 $ 3,981 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Schedule of 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. The purchase price allocation was finalized as of September 30, 2015 . 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. 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 twelve months ended December 31, 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. Year Ended December 31, Millions of dollars, except per share data 2014 Net sales $ 23,204 Net earnings available to Whirlpool 700 Diluted net earnings per share $ 8.79 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill by Operating Segment | The following table summarizes goodwill attributable to our operating segments at December 31, 2015 and: Millions of dollars 2015 2014 North America $ 1,732 $ 1,715 EMEA 832 639 Latin America 3 4 Asia 439 449 Total $ 3,006 $ 2,807 |
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets | The following table summarizes other intangible assets at December 31, 2015 and 2014 : 2015 2014 Millions of dollars Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Other intangible assets, finite lives: Customer relationships (1) 632 (200 ) $ 432 665 $ (163 ) $ 502 Patents and other (2) 359 (127 ) 232 348 (104 ) 244 Total other intangible assets, finite lives $ 991 $ (327 ) $ 664 $ 1,013 $ (267 ) $ 746 Trademarks, indefinite lives 2,014 — 2,014 2,057 — 2,057 Total other intangible assets $ 3,005 $ (327 ) $ 2,678 $ 3,070 $ (267 ) $ 2,803 (1) Customer relationships have an estimated useful life of 4 to 18 years. (2) Patents and other intangibles have an estimated useful life of 1 to 15 years. |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The following table summarizes our future estimated amortization expense by year: Millions of dollars 2016 $ 73 2017 70 2018 68 2019 65 2020 55 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Assets and liabilities measured at fair value on a recurring basis at December 31, 2015 and 2014 are as follows: Total Cost Basis Quoted Prices In Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Total Fair Value Millions of dollars 2015 2014 2015 2014 2015 2014 2015 2014 Money market funds (1) $ 13 $ 21 $ 13 $ 21 $ — $ — $ 13 $ 21 Net derivative contracts — — — — (42 ) (1 ) (42 ) (1 ) Available for sale investments 11 16 25 26 — — 25 26 (1) Money market funds are comprised primarily of government obligations and other first tier obligations. |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Inventory, Net [Abstract] | |
Summary of Inventories | The following table summarizes our inventories at December 31, 2015 and 2014 : Millions of dollars 2015 2014 Finished products $ 2,093 $ 2,189 Raw materials and work in process 655 724 2,748 2,913 Less: excess of FIFO cost over LIFO cost (129 ) (173 ) Total inventories $ 2,619 $ 2,740 |
Financing Arrangements (Tables)
Financing Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The following table summarizes our long-term debt at December 31, 2015 and 2014 : Millions of dollars 2015 2014 Maytag medium-term note - 5.0% matured 2015 $ — $ 200 Senior note - 6.5%, maturing 2016 250 250 Debentures - 7.75%, maturing 2016 244 244 Senior note - 1.35%, maturing 2017 250 250 Senior note - 1.65%, maturing 2017 300 300 Indesit guaranteed notes - 4.5%, maturing 2018 345 393 Senior note - 2.4%, maturing 2019 250 250 Senior note - 0.625% maturing 2020 541 — Senior note - 4.85%, maturing 2021 300 300 Senior note - 4.70%, maturing 2022 300 300 Senior note - 3.70%, maturing 2023 250 250 Senior note - 4.0%, maturing 2024 300 300 Senior note - 3.7%, maturing 2025 350 350 Senior note - 5.15% maturing 2043 249 249 Other 49 142 3,978 3,778 Less current maturities 508 234 Total long-term debt $ 3,470 $ 3,544 |
Schedule of Maturities of Long-term Debt | The following table summarizes the contractual maturities of our long-term debt, including current maturities, at December 31, 2015 : Millions of dollars 2016 $ 508 2017 562 2018 357 2019 262 2020 541 Thereafter 1,748 Long-term debt, including current maturities $ 3,978 |
Schedule of Notes Payable | The following table summarizes the carrying value of notes payable at December 31, 2015 and 2014: Millions of dollars 2015 2014 Commercial paper — 387 Debt securitization — 35 Short-term borrowings to banks 20 147 Total notes payable $ 20 $ 569 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Product Warranty and Legacy Product Corrective Action Reserves | The following table summarizes the changes in total product warranty and legacy product warranty liability reserves for the periods presented: Product Warranty Legacy Product Warranty Total Millions of dollars 2015 2014 2015 2014 2015 2014 Balance at January 1 $ 235 $ 191 $ — $ — $ 235 $ 191 Issuances/accruals during the period (1) 286 322 274 — 560 322 Settlements made during the period (274 ) (272 ) (11 ) — (285 ) (272 ) Foreign currency/Other changes $ (8 ) $ (6 ) $ (9 ) $ — $ (17 ) $ (6 ) Balance at December 31 $ 239 $ 235 $ 254 $ — $ 493 $ 235 Current portion $ 185 $ 186 $ 155 $ — $ 340 $ 186 Non-current portion 54 49 99 — 153 49 Total $ 239 $ 235 $ 254 $ — $ 493 $ 235 (1) $61 million is related to product warranty included within issuances/accruals during 2014 related to acquisitions. |
Operating Lease Commitments | At December 31, 2015 , we had noncancelable operating lease commitments totaling $929 million . The annual future minimum lease payments are summarized by year in the table below : Millions of dollars 2016 $ 218 2017 175 2018 142 2019 111 2020 87 Thereafter 196 Total noncancelable operating lease commitments $ 929 |
Purchase Obligations | Our expected cash outflows resulting from non-cancellable purchase obligations are summarized by year in the table below : Millions of dollars 2016 $ 248 2017 177 2018 149 2019 114 2020 112 Thereafter 186 Total purchase obligations $ 986 |
Hedges and Derivative Financi32
Hedges and Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
General Discussion of Derivative Instruments and Hedging Activities [Abstract] | |
Schedule of Derivative Instruments | The following tables summarize our outstanding derivative contracts and their effects on our Consolidated Balance Sheets at December 31, 2015 and 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 $ 886 $ 874 $ 31 $ 27 $ 8 $ 8 (CF) 12 17 Commodity swaps/options 322 375 1 4 66 29 (CF) 33 36 Total derivatives accounted for as hedges $ 32 $ 31 $ 74 $ 37 Derivatives not accounted for as hedges Foreign exchange forwards/options $ 2,886 $ 2,358 $ 22 $ 34 $ 21 $ 29 N/A 11 10 Commodity swaps/options 7 8 — — 1 — N/A 6 4 Total derivatives not accounted for as hedges 22 34 22 29 Total derivatives $ 54 $ 65 $ 96 $ 66 Current $ 54 $ 64 $ 79 $ 59 Noncurrent — 1 17 7 Total derivatives $ 54 $ 65 $ 96 $ 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 pre-tax effects of derivative instruments on our Consolidated Statements of Income and Comprehensive Income for OCI in table for the years ended December 31, 2015 and 2014 are as follows: Gain (Loss) Recognized in OCI (Effective Portion) Gain (Loss) (1) Cash Flow Hedges - Millions of dollars 2015 2014 2015 2014 Foreign exchange forwards/options $ 77 $ 40 $ 56 $ 22 (a) Commodity swaps/options (102 ) (30 ) (57 ) (10 ) (a) Interest rate derivatives — — (1 ) (1 ) (b) $ (25 ) $ 10 $ (2 ) $ 11 Gain (Loss) Recognized on Derivatives not Accounted for as Hedges (2) Derivatives not Accounted for as Hedges - Millions of dollars 2015 2014 Foreign exchange forwards/options $ 29 $ 26 (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) | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table shows the components of accumulated other comprehensive income (loss) available to Whirlpool at December 31, 2013 , 2014 , and 2015 , and the activity for the years then ended: Millions of dollars Foreign Currency Derivative Instruments Pension and Postretirement Liability Marketable Securities Total December 31, 2012 $ (438 ) $ (8 ) $ (1,088 ) $ 3 $ (1,531 ) Unrealized gain (loss) (122 ) 2 — 7 (113 ) Unrealized actuarial gain(loss) and prior service credit (cost) — — 508 — 508 Tax effect 25 — (190 ) — (165 ) Other comprehensive income (loss), net of tax (97 ) 2 318 7 230 Less: Other comprehensive loss available to noncontrolling interests (3 ) — — — (3 ) Other comprehensive income (loss) available to Whirlpool (94 ) 2 318 7 233 December 31, 2013 $ (532 ) $ (6 ) $ (770 ) $ 10 $ (1,298 ) Unrealized gain (loss) (392 ) (1 ) — — (393 ) Unrealized actuarial gain (loss) and prior service credit (cost) — — (233 ) — (233 ) Tax effect (5 ) — 85 — 80 Other comprehensive income (loss), net of tax (397 ) (1 ) (148 ) — (546 ) Less: Other comprehensive loss available to noncontrolling interests (4 ) — — — (4 ) Other comprehensive income (loss) available to Whirlpool (393 ) (1 ) (148 ) — (542 ) December 31, 2014 $ (925 ) $ (7 ) $ (918 ) $ 10 $ (1,840 ) Unrealized gain (loss) (432 ) (23 ) — 3 (452 ) Unrealized actuarial gain (loss) and prior service credit (cost) — — (79 ) — (79 ) Tax effect — — 30 — 30 Other comprehensive income (loss), net of tax (432 ) (23 ) (49 ) 3 (501 ) Less: Other comprehensive loss available to noncontrolling interests (9 ) — — — (9 ) Other comprehensive income (loss) available to Whirlpool $ (423 ) $ (23 ) $ (49 ) $ 3 $ (492 ) December 31, 2015 $ (1,348 ) $ (30 ) $ (967 ) $ 13 $ (2,332 ) |
Schedule of Calculation of Numerator and Denominator in Earnings Per Share | Basic and diluted net earnings per share of common stock were calculated as follows: Millions of dollars and shares 2015 2014 2013 Numerator for basic and diluted earnings per share – net earnings available to Whirlpool $ 783 $ 650 $ 827 Denominator for basic earnings per share – weighted-average shares 78.7 78.3 79.3 Effect of dilutive securities – stock-based compensation 1.0 1.3 1.5 Denominator for diluted earnings per share – adjusted weighted-average shares 79.7 79.6 80.8 Anti-dilutive stock options/awards excluded from earnings per share 0.2 0.2 — |
Share-based Incentive Plans (Ta
Share-based Incentive Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Weighted Average Black-Scholes Assumptions | Based on the results of the model, the weighted-average grant date fair value of stock options granted for 2015 , 2014 , and 2013 were $63.40 , $42.09 and $33.92 , respectively, using the following assumptions: Weighted Average Black-Scholes Assumptions 2015 2014 2013 Risk-free interest rate 1.5 % 1.5 % 0.9 % Expected volatility 35.5 % 38.2 % 40.3 % Expected dividend yield 1.4 % 1.8 % 1.8 % Expected option life, in years 5 5 5 |
Summary of Stock Option Activity | The following table summarizes stock option activity during 2015 : In thousands, except per share data Number of Options Weighted- Average Exercise Price Outstanding at January 1 2,115 $ 88.62 Granted 282 213.14 Exercised (417 ) 90.99 Canceled or expired (42 ) 124.33 Outstanding at December 31 1,938 $ 105.46 Exercisable at December 31 1,295 $ 76.25 |
Summary of Additional Information Related to Stock Options Outstanding | The table below summarizes additional information related to stock options outstanding at December 31, 2015 : Options in thousands / dollars in millions, except share data Outstanding Net of Expected Forfeitures Options Exercisable Number of options 1,852 1,295 Weighted-average exercise price per share $ 105.53 $ 76.25 Aggregate intrinsic value $ 94 $ 92 Weighted-average remaining contractual term, in years 6 5 |
Summary of Stock Unity Activity | The following table summarizes stock unit activity during 2015 : Stock units in thousands, except per-share data Number of Stock Units Weighted- Average Grant Date Fair Value Non-vested, at January 1 1,104 $ 90.34 Granted 341 155.37 Canceled (53 ) 121.42 Vested and transferred to unrestricted (559 ) 74.21 Non-vested, at December 31 833 $ 125.71 |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring Charges [Abstract] | |
Schedule of Restructuring Reserve | The following tables summarize the changes to our restructuring liability for the years ended December 31, 2015 and 2014 : Millions of dollars 12/31/2014 Charges to Earnings Cash Paid Non-Cash and Other Revision of Estimate 12/31/2015 Employee termination costs $ 58 $ 136 $ (168 ) $ 1 $ 3 $ 30 Asset impairment costs — 30 — (30 ) — — Facility exit costs 4 12 (13 ) — — 3 Other exit costs 16 23 (21 ) — — 18 Total $ 78 $ 201 $ (202 ) $ (29 ) $ 3 $ 51 Millions of dollars 12/31/2013 Acquisition - related (1) Charge to Earnings Cash Paid Non-cash and Other 12/31/2014 Employee termination costs $ 74 $ 40 $ 82 $ (128 ) $ (10 ) $ 58 Asset impairment costs — — 26 — (26 ) — Facility exit costs 14 — 16 (26 ) — 4 Other exit costs 18 — 12 (14 ) — 16 Total $ 106 $ 40 $ 136 $ (168 ) $ (36 ) $ 78 (1) A $ 40 million restructuring liability was acquired in the acquisition of Indesit in the fourth quarter of 2014 related to an ongoing plan previously initiated by Indesit management. As of December 31, 2014, the acquired restructuring liability was $17 million . |
Restructuring Charges by Segment | The following table summarizes 2015 restructuring charges by operating segment: Millions of dollars 2015 Charges North America $ 10 EMEA 158 Latin America 26 Asia — Corporate / Other 7 Total $ 201 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 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: Millions of dollars 2015 2014 2013 Earnings before income taxes United States $ 555 $ 325 $ 149 Foreign 476 556 768 Earnings before income taxes 1,031 881 917 Income tax computed at United States statutory rate 361 308 321 U.S. government tax incentives, including Energy Tax Credits (13 ) (10 ) (142 ) Foreign government tax incentives, including BEFIEX (19 ) (46 ) (63 ) Foreign tax rate differential (36 ) (17 ) (17 ) U.S. foreign tax credits (103 ) (148 ) (231 ) Valuation allowances (95 ) 9 16 State and local taxes, net of federal tax benefit 18 5 7 Foreign withholding taxes 16 16 29 U.S. tax on foreign dividends and subpart F income 57 56 195 Settlement of global tax audits 16 (5 ) (54 ) Other items, net 7 21 7 Income tax computed at effective worldwide tax rates $ 209 $ 189 $ 68 |
Schedule of Components of Income Tax Expense (Benefit) | The following table summarizes our income tax (benefit) provision for 2015 , 2014 and 2013 : 2015 2014 2013 Millions of dollars Current Deferred Current Deferred Current Deferred United States $ 98 $ 55 $ 7 $ 8 $ (60 ) $ (57 ) Foreign 181 (143 ) 182 12 187 (9 ) State and local 10 8 (2 ) (18 ) 2 5 $ 289 $ (80 ) $ 187 $ 2 $ 129 $ (61 ) Total income tax expense $ 209 $ 189 $ 68 |
Schedule of Deferred Tax Assets and Liabilities | The following table summarizes the significant components of our deferred tax liabilities and assets at December 31, 2015 and 2014 : Millions of dollars 2015 2014 Deferred tax liabilities Intangibles $ 770 $ 800 Property, net 175 156 LIFO inventory 57 45 Other 214 193 Total deferred tax liabilities 1,216 1,194 Deferred tax assets U.S. general business credit carryforwards, including Energy Tax Credits 1,010 1,005 Pensions 315 316 Loss carryforwards 683 650 Postretirement obligations 168 199 Foreign tax credit carryforwards 253 249 Research and development capitalization 306 358 Employee payroll and benefits 164 141 Accrued expenses 133 110 Product warranty accrual 64 62 Receivable and inventory allowances 106 73 Other 353 300 Total deferred tax assets 3,555 3,463 Valuation allowances for deferred tax assets (286 ) (308 ) Deferred tax assets, net of valuation allowances 3,269 3,155 Net deferred tax assets $ 2,053 $ 1,961 |
Reconciliation of Unrecognized Tax Benefits | The following table represents a reconciliation of the beginning and ending amount of unrecognized tax benefits that if recognized would impact the effective tax rate, excluding federal benefits of state and local tax positions, and interest and penalties: Millions of dollars 2015 2014 2013 Balance, January 1 $ 141 $ 113 $ 178 Additions for tax positions of the current year 12 17 17 Additions for tax positions of prior years 27 4 6 Reductions for tax positions of prior years (25 ) (23 ) (81 ) Settlements during the period (5 ) (11 ) (3 ) Positions assumed in acquisitions — 42 — Lapses of applicable statute of limitation (7 ) (1 ) (4 ) Balance, December 31 $ 143 $ 141 $ 113 |
Pension and Other Postretirem37
Pension and Other Postretirement Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |
Obligations and Funded Status at End of Year | Obligations and Funded Status at End of Year United States Pension Benefits Foreign Pension Benefits Other Postretirement Benefits Millions of dollars 2015 2014 2015 2014 2015 2014 Funded status Fair value of plan assets $ 2,741 $ 3,042 $ 552 $ 640 $ — $ — Benefit obligations 3,470 3,796 865 1,026 441 502 Funded status $ (729 ) $ (754 ) $ (313 ) $ (386 ) $ (441 ) $ (502 ) Amounts recognized in the consolidated balance sheet Noncurrent asset $ — $ — $ 5 $ 8 $ — $ — Current liability (10 ) (9 ) (12 ) (16 ) (51 ) (56 ) Noncurrent liability (719 ) (745 ) (306 ) (378 ) (390 ) (446 ) Amount recognized $ (729 ) $ (754 ) $ (313 ) $ (386 ) $ (441 ) $ (502 ) Amounts recognized in accumulated other comprehensive loss (pre-tax) Net actuarial loss $ 1,404 $ 1,368 $ 99 $ 118 $ 20 $ 53 Prior service (credit) cost (11 ) (14 ) (3 ) — (25 ) (120 ) Amount recognized $ 1,393 $ 1,354 $ 96 $ 118 $ (5 ) $ (67 ) |
Change in Benefit Obligation | Change in Benefit Obligation United States Pension Benefits Foreign Pension Benefits Other Postretirement Benefits Millions of dollars 2015 2014 2015 2014 2015 2014 Benefit obligation, beginning of year $ 3,796 $ 3,546 $ 1,026 $ 439 $ 502 $ 509 Service cost 3 2 5 5 2 3 Interest cost 150 167 31 22 19 24 Plan participants’ contributions — — 1 1 7 7 Actuarial loss (gain) (164 ) 384 (11 ) 59 (32 ) 9 Benefits paid (315 ) (303 ) (31 ) (24 ) (55 ) (60 ) Plan amendments — — (3 ) (3 ) 8 14 Acquisitions (1) — — — 610 — — Transfer of benefits — — — — — — Settlements / curtailment (gain) — — (66 ) (15 ) — — Foreign currency exchange rates — — (87 ) (68 ) (10 ) (4 ) Benefit obligation, end of year $ 3,470 $ 3,796 $ 865 $ 1,026 $ 441 $ 502 Accumulated benefit obligation, end of year $ 3,459 $ 3,786 $ 806 $ 964 N/A N/A (1) Pension obligation acquired through acquisition of Indesit |
Change in Plan Assets | Change in Plan Assets United States Pension Benefits Foreign Pension Benefits Other Postretirement Benefits Millions of dollars 2015 2014 2015 2014 2015 2014 Fair value of plan assets, beginning of year $ 3,042 $ 2,835 $ 640 $ 206 $ — $ — Actual return on plan assets (62 ) 381 16 33 — — Employer contribution 76 129 39 30 48 53 Plan participants’ contributions — — 1 1 7 7 Benefits paid (315 ) (303 ) (31 ) (24 ) (55 ) (60 ) Acquisitions (1) — — — 437 — — Other Adjustments — — 4 — — — Settlements — — (73 ) (10 ) — — Foreign currency exchange rates — — (44 ) (33 ) — — Fair value of plan assets, end of year $ 2,741 $ 3,042 $ 552 $ 640 $ — $ — (1) Pension assets acquired through acquisition of Indesit. |
Components of Net Periodic Benefit Cost | Components of Net Periodic Benefit Cost United States Pension Benefits Foreign Pension Benefits Other Postretirement Benefits Millions of dollars 2015 2014 2013 2015 2014 2013 2015 2014 2013 Service cost $ 3 $ 2 $ 2 $ 5 $ 5 $ 6 $ 2 $ 3 $ 4 Interest cost 150 167 162 31 22 17 19 24 18 Expected return on plan assets (191 ) (193 ) (191 ) (33 ) (16 ) (10 ) — — — Amortization: Actuarial loss 53 43 62 5 5 6 — — 1 Prior service cost (credit) (3 ) (3 ) (3 ) — 1 1 (23 ) (36 ) (39 ) Curtailment gain — — — — — — (63 ) — — Settlement loss — — 3 12 4 1 — — — Net periodic benefit cost $ 12 $ 16 $ 35 $ 20 $ 21 $ 21 $ (65 ) $ (9 ) $ (16 ) |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Loss (Pre-Tax) in 2012 | Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Loss (Pre-Tax) in 2015 Millions of dollars United States Pension Benefits Foreign Pension Benefits Other Postretirement Benefits Current year actuarial loss $ 89 $ (2 ) $ (32 ) Actuarial (loss) recognized during the year (53 ) (17 ) — Current year prior service cost (credit) — (3 ) 8 Prior service credit (cost) recognized during the year 3 — 86 Total recognized in other comprehensive loss (pre-tax) $ 39 $ (22 ) $ 62 Total recognized in net periodic benefit costs and other comprehensive loss (pre-tax) $ 51 $ (2 ) $ (3 ) |
Estimated Pre-Tax Amounts that will be amortized from Accumulated Other Comprehensive Loss into Net Periodic Pension Cost in 2013 | Estimated Pre-Tax Amounts that will be amortized from Accumulated Other Comprehensive Loss into Net Periodic Pension Cost in 2016 Millions of dollars United States Pension Benefits Foreign Pension Benefits Other Postretirement Benefits Actuarial loss $ 46 $ 4 $ — Prior service (credit) (3 ) — (10 ) Total $ 43 $ 4 $ (10 ) |
Weighted-average Assumptions Used to Determine Benefit Obligation at the End of the Year and Net Periodic Cost | Weighted-Average Assumptions used to Determine Benefit Obligation at End of Year United States Pension Benefits Foreign Pension Benefits Other Postretirement Benefits 2015 2014 2015 2014 2015 2014 Discount rate 4.45 % 4.05 % 3.40 % 3.32 % 4.51 % 4.27 % Rate of compensation increase 4.50 % 4.50 % 3.06 % 3.23 % N/A N/A Weighted-Average Assumptions used to Determine Net Periodic Cost United States Pension Benefits Foreign Pension Benefits Other Postretirement Benefits 2015 2014 2013 2015 2014 2013 2015 2014 2013 Discount rate 4.05 % 4.95 % 4.05 % 3.32 % 3.89 % 3.93 % 4.74 % 5.25 % 4.03 % Expected long-term rate of return on plan assets 7.00 % 7.25 % 7.50 % 5.63 % 5.44 % 5.40 % N/A N/A N/A Rate of compensation increase 4.50 % 4.50 % 4.50 % 3.23 % 3.35 % 3.51 % N/A N/A N/A Health care cost trend rate Initial rate N/A N/A N/A N/A N/A N/A 7.00 % 7.00 % 7.00 % Ultimate rate N/A N/A N/A N/A N/A N/A 5.00 % 5.00 % 5.00 % Year that ultimate rate will be reached N/A N/A N/A N/A N/A N/A 2019 2017 2017 |
Estimated Impact of One Percentage-Point Change in Assumed Health Care Cost Trend Rate | A one percentage point change in assumed health care cost trend rates would have the following effects on our health care plan: Millions of dollars One Percentage Point Increase One Percentage Point Decrease Effect on total of service and interest cost $ — $ — Effect on postretirement benefit obligations 3 (2 ) |
Expected Employer Contributions to Funded Plans | Expected Employer Contributions to Funded Plans Millions of dollars United States Pension Benefits (1) Foreign Pension Benefits 2016 $ — $ 17 |
Expected Benefit Payments | Expected Benefit Payments Millions of dollars United States Pension Benefits Foreign Pension Benefits Other Postretirement Benefits 2016 $ 289 $ 35 $ 52 2017 269 35 52 2018 268 37 44 2019 264 39 42 2020 257 38 37 2021-2025 1,198 200 147 |
Schedule of Allocation of Plan Assets | The fair values of our pension plan assets at December 31, 2015 and 2014 , by asset category were as follows: December 31, Quoted prices (Level 1) Other significant observable inputs (Level 2) Significant unobservable inputs (Level 3) Total Millions of dollars 2015 2014 2015 2014 2015 2014 2015 2014 Cash and cash equivalents $ 26 $ 29 $ — $ — $ — $ — $ 26 $ 29 Government and government agency securities (a) U.S. securities — — 494 579 — — 494 579 International securities — — 212 253 — — 212 253 Corporate bonds and notes (a) U.S. companies — — 909 1,000 — — 909 1,000 International companies — — 160 321 — — 160 321 Equity securities (b) U.S. companies 13 12 — — — — 13 12 International companies 472 427 — — — — 472 427 Mutual funds (c) 59 67 — — — — 59 67 Common and collective funds (d) U.S. equity securities — — 648 651 — — 648 651 International equity securities — — 65 66 — — 65 66 Short-term investment fund — — 55 63 — — 55 63 Limited partnerships (e) U.S. private equity investments — — — — 120 140 120 140 Diversified fund of funds — — — — 21 32 21 32 Emerging growth — — — — 15 23 15 23 Real estate (f) — — 10 10 — — 10 10 All other investments — — 14 9 — — 14 9 $ 570 $ 535 $ 2,567 $ 2,952 $ 156 $ 195 $ 3,293 $ 3,682 (a) Valued using pricing vendors who use proprietary models to estimate the price a dealer would pay to buy a security using significant observable inputs, such as interest rates, yield curves, and credit risk. (b) Valued using the closing stock price on a national securities exchange, which reflects the last reported sales price on the last business day of the year. (c) Valued using the net asset value (NAV) of the fund, which is based on the fair value of underlying securities. The fund primarily invests in a diversified portfolio of equity securities issued by non-U.S. companies. (d) Valued using the NAV of the fund, which is based on the fair value of underlying securities. (e) Valued at estimated fair value based on the proportionate share of the limited partnership's fair value, as determined by the general partner. (f) Valued using the NAV of the fund, which is based on the fair value of underlying assets. |
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Millions of dollars Limited Partnerships Balance, December 31, 2014 $ 195 Realized gains (net) 34 Unrealized gains (net) (20 ) Purchases 5 Settlements (58 ) Balance, December 31, 2015 $ 156 |
Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets | The projected benefit obligation and fair value of plan assets for pension plans with a projected benefit obligation in excess of plan assets at December 31, 2015 and 2014 were as follows: United States Pension Benefits Foreign Pension Benefits Millions of dollars 2015 2014 2015 2014 Projected benefit obligation $ 3,470 $ 3,796 $ 776 $ 872 Fair value of plan assets 2,741 3,042 469 487 |
Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets | The projected benefit obligation, accumulated benefit obligation and fair value of plan assets for pension plans with an accumulated benefit obligation in excess of plan assets at December 31, 2015 and 2014 were as follows: United States Pension Benefits Foreign Pension Benefits Millions of dollars 2015 2014 2015 2014 Projected benefit obligation $ 3,470 $ 3,796 $ 730 $ 872 Accumulated benefit obligation 3,459 3,786 690 825 Fair value of plan assets 2,741 3,042 424 487 |
Operating Segment Information (
Operating Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | The following table summarizes net sales and long-lived assets by geographic area: Millions of dollars United States Brazil All Other Countries Total 2015: Sales to external customers 9,189 1,915 9,787 20,891 Long-lived assets 4,558 253 4,647 9,458 2014: Sales to external customers $ 9,064 $ 3,204 $ 7,604 $ 19,872 Long-lived assets 4,529 321 4,741 9,591 2013: Sales to external customers $ 8,577 $ 3,295 $ 6,897 $ 18,769 Long-lived assets 4,461 335 1,671 6,467 |
Schedule of Operating Segment Information | Intangible asset impairment and restructuring costs are included in operating profit on a consolidated basis and included in the Other/Eliminations column in the table below: OPERATING SEGMENTS Millions of dollars North America EMEA Latin America Asia Other/ Eliminations Total Whirlpool Net sales 2015 10,732 5,601 3,349 1,417 (208 ) 20,891 2014 10,634 3,905 4,686 816 (169 ) 19,872 2013 10,178 3,024 4,928 807 (168 ) 18,769 Intersegment sales 2015 $ 218 $ 271 $ 211 $ 52 $ (752 ) $ — 2014 244 79 180 266 (769 ) — 2013 256 79 174 257 (766 ) — Depreciation and amortization 2015 $ 259 $ 199 $ 67 $ 61 $ 82 $ 668 2014 263 104 86 29 78 560 2013 238 95 91 18 98 540 Operating profit (loss) 2015 $ 1,252 $ 188 $ 184 $ 80 $ (419 ) $ 1,285 2014 1,072 59 475 (21 ) (397 ) 1,188 2013 1,070 (4 ) 557 34 (408 ) 1,249 Total assets 2015 $ 7,683 $ 7,351 $ 2,260 $ 2,738 $ (1,022 ) $ 19,010 2014 7,736 7,597 2,917 2,734 (982 ) 20,002 2013 7,785 2,955 3,380 921 503 15,544 Capital expenditures 2015 $ 243 $ 220 $ 106 $ 47 $ 73 $ 689 2014 271 187 133 29 100 720 2013 254 101 108 25 90 578 |
Quarterly Results of Operatio39
Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) Three months ended Dec. 31 Sept. 30 Jun. 30 Mar. 31 Millions of dollars, except per share data 2015 2014 2015 2014 2015 2014 2015 2014 Net sales $ 5,560 $ 6,003 $ 5,277 $ 4,824 $ 5,208 $ 4,682 $ 4,846 $ 4,363 Cost of products sold 4,558 4,977 4,347 3,997 4,303 3,895 3,993 3,608 Operating profit 380 281 329 335 273 291 303 281 Interest and sundry income (expense) (57 ) (64 ) (21 ) (39 ) 42 (16 ) (53 ) (23 ) Net earnings 189 108 250 235 185 185 198 164 Net earnings available to Whirlpool 180 81 235 230 177 179 191 160 Per share of common stock: (1) Basic net earnings $ 2.31 $ 1.04 $ 2.98 $ 2.92 $ 2.24 $ 2.29 $ 2.42 $ 2.06 Diluted net earnings 2.28 1.02 2.95 2.88 2.21 2.25 2.38 2.02 Dividends 0.90 0.75 0.90 0.75 0.90 0.75 0.75 0.625 Market price range of common stock: (2) High $ 167.72 $ 196.71 $ 186.82 $ 156.13 $ 202.50 $ 156.71 $ 217.11 $ 160.01 Low 140.50 139.85 143.75 135.37 172.85 136.64 186.14 124.39 Close 146.87 193.74 147.26 145.65 173.05 139.22 202.06 149.46 (1) The quarterly earnings per share amounts will not necessarily add to the earnings per share computed for the year due to the method used in calculating per share data (2) Composite price as reported by the New York Stock Exchange |
Summary of Principal Accounti40
Summary of Principal Accounting Policies (Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2015USD ($)country | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Accounting Policies [Abstract] | |||
Number of countries in which entity operates (country) | country | 14 | ||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Restricted cash | $ 191,000,000 | $ 237,000,000 | |
Level 3 assets and liabilities | 0 | 0 | |
Depreciation | 594,000,000 | 527,000,000 | $ 515,000,000 |
Accounts payable outsourcing | 1,200,000,000 | 1,600,000,000 | |
Research and development expense | 579,000,000 | 563,000,000 | 582,000,000 |
Advertising expense | 310,000,000 | 269,000,000 | $ 304,000,000 |
Machinery and Equipment | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Retirement of machinery | 221,000,000 | 450,000,000 | |
Property | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Retirement of machinery | 503,000,000 | ||
Other Current Assets | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Restricted cash | $ 48,000,000 | $ 50,000,000 |
Summary of Principal Accounti41
Summary of Principal Accounting Policies (Property) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | ||
Land | $ 131 | $ 142 |
Buildings | 1,614 | 1,616 |
Machinery and equipment | 7,982 | 8,182 |
Accumulated depreciation | (5,953) | (5,959) |
Property, net | $ 3,774 | $ 3,981 |
Building | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property, plan, and equipment, useful life | 10 years | 10 years |
Building | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property, plan, and equipment, useful life | 50 years | 50 years |
Machinery and Equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property, plan, and equipment, useful life | 3 years | 3 years |
Machinery and Equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property, plan, and equipment, useful life | 25 years | 25 years |
Acquisitions (Whirlpool China)
Acquisitions (Whirlpool China) (Details) $ in Millions, ÂĄ in Billions | Oct. 24, 2014CNY (ÂĄ) | Oct. 24, 2014USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) |
Business Acquisition [Line Items] | |||||
Purchase price | $ 0 | $ 1,356 | $ 0 | ||
Whirlpool China | |||||
Business Acquisition [Line Items] | |||||
Percentage of voting interests acquired | 51.00% | 51.00% | |||
Purchase price | ÂĄ 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 Company S.p.A. | |||||
Business Acquisition [Line Items] | |||||
Total consideration paid, net of cash acquired | € 1,100,000,000 | $ 1,400,000,000 |
Acquisitions (Purchase Price Al
Acquisitions (Purchase Price Allocation) (Details) - USD ($) $ in Millions | Oct. 24, 2014 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 03, 2014 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 2,807 | $ 3,006 | ||
Non-controlling interest value | $ 801 | |||
Whirlpool China | ||||
Business Acquisition [Line Items] | ||||
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 interests acquired | 51.00% | |||
Non-controlling interest value | $ 801 | |||
Indesit Company S.p.A. | ||||
Business Acquisition [Line Items] | ||||
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 Inta
Acquisitions (Identifiable Intangible Assets Acquired) (Details) - USD ($) $ in Millions | Dec. 03, 2014 | Oct. 24, 2014 | Dec. 31, 2015 |
Customer relationships | Minimum | |||
Business Acquisition [Line Items] | |||
Intangible asset, useful life | 4 years | ||
Customer relationships | Maximum | |||
Business Acquisition [Line Items] | |||
Intangible asset, useful life | 18 years | ||
Whirlpool China | |||
Business Acquisition [Line Items] | |||
Indefinite-lived intangible assets acquired | $ 42 | ||
Identified intangible assets acquired (excluding goodwill) | 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 Company S.p.A. | |||
Business Acquisition [Line Items] | |||
Indefinite-lived intangible assets acquired | $ 535 | ||
Identified intangible assets acquired (excluding goodwill) | 822 | ||
Indesit Company S.p.A. | Customer relationships | |||
Business Acquisition [Line Items] | |||
Finite-lived intangible assets acquired | $ 134 | ||
Indesit Company S.p.A. | Customer relationships | Minimum | |||
Business Acquisition [Line Items] | |||
Intangible asset, useful life | 5 years | ||
Indesit Company S.p.A. | Customer relationships | Maximum | |||
Business Acquisition [Line Items] | |||
Intangible asset, useful life | 19 years | ||
Indesit Company S.p.A. | Patents and other intangibles | |||
Business Acquisition [Line Items] | |||
Finite-lived intangible assets acquired | $ 153 | ||
Indesit Company S.p.A. | Patents and other intangibles | Minimum | |||
Business Acquisition [Line Items] | |||
Intangible asset, useful life | 6 years | ||
Indesit Company S.p.A. | Patents and other intangibles | Maximum | |||
Business Acquisition [Line Items] | |||
Intangible asset, useful life | 15 years |
Acquisitions (Pro Forma) (Detai
Acquisitions (Pro Forma) (Details) - Hefei Sanyo And Indesit $ / shares in Units, $ in Millions | 12 Months Ended |
Dec. 31, 2014USD ($)$ / shares | |
Business Acquisition [Line Items] | |
Net sales | $ 23,204 |
Net earnings available to Whirlpool | $ 700 |
Diluted net earnings per share (USD per share) | $ / shares | $ 8.79 |
Acquisitions (Acquisition Relat
Acquisitions (Acquisition Related Costs) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Nonoperating Income (Expense) | |
Business Acquisition [Line Items] | |
Non-recurring acquisition related costs and investment expenses | $ 55 |
Whirlpool China | |
Business Acquisition [Line Items] | |
Non-recurring acquisition related costs and investment expenses | 30 |
Indesit Company S.p.A. | |
Business Acquisition [Line Items] | |
Non-recurring acquisition related costs and investment expenses | $ 60 |
Goodwill and Other Intangible48
Goodwill and Other Intangibles (Goodwill Narrative) (Details) | Oct. 01, 2015USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill, impairment loss | $ 0 |
Goodwill and Other Intangible49
Goodwill and Other Intangibles (Goodwill by Segment) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Goodwill [Line Items] | ||
Goodwill | $ 3,006 | $ 2,807 |
Operating Segments | North America | ||
Goodwill [Line Items] | ||
Goodwill | 1,732 | 1,715 |
Operating Segments | EMEA | ||
Goodwill [Line Items] | ||
Goodwill | 832 | 639 |
Operating Segments | Latin America | ||
Goodwill [Line Items] | ||
Goodwill | 3 | 4 |
Operating Segments | Asia | ||
Goodwill [Line Items] | ||
Goodwill | $ 439 | $ 449 |
Goodwill and Other Intangible50
Goodwill and Other Intangibles (Other Intangibles Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($)impaired_asset | Dec. 31, 2013USD ($) | |
Indefinite-lived Intangible Assets [Line Items] | |||
Impairment charges | $ 0 | $ 12,000,000 | |
Intangible amortization | 74,000,000 | 33,000,000 | $ 25,000,000 |
Trademarks, indefinite lives | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Pre-impairment carrying value | $ 2,014,000,000 | $ 2,057,000,000 | |
Trademarks, indefinite lives | Europe | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Number of impaired intangible assets (excluding goodwill) (impaired asset) | impaired_asset | 2 | ||
Pre-impairment carrying value | $ 30,000,000 |
Goodwill and Other Intangible51
Goodwill and Other Intangibles (Other Intangible Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | $ 991 | $ 1,013 |
Finite-lived intangible assets, accumulated amortization | (327) | (267) |
Finite-lived intangible assets, net | 664 | 746 |
Intangible assets, gross (excluding goodwill) | 3,005 | 3,070 |
Total intangible assets, net (excluding goodwill) | 2,678 | 2,803 |
Trademarks, indefinite lives | ||
Finite-Lived Intangible Assets [Line Items] | ||
Trademarks, indefinite lives | 2,014 | 2,057 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 632 | 665 |
Finite-lived intangible assets, accumulated amortization | (200) | (163) |
Finite-lived intangible assets, net | $ 432 | 502 |
Customer relationships | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset, useful life | 4 years | |
Customer relationships | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset, useful life | 18 years | |
Patents and non-competes | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | $ 359 | 348 |
Finite-lived intangible assets, accumulated amortization | (127) | (104) |
Finite-lived intangible assets, net | $ 232 | $ 244 |
Patents and non-competes | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset, useful life | 1 year | |
Patents and non-competes | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset, useful life | 15 years |
Goodwill and Other Intangible52
Goodwill and Other Intangibles (Estimated Amortization Expense) (Details) $ in Millions | Dec. 31, 2015USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
2,016 | $ 73 |
2,017 | 70 |
2,018 | 68 |
2,019 | 65 |
2,020 | $ 55 |
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 | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | $ 13 | $ 21 |
Net derivative contracts | (42) | (1) |
Available for sale investments | 25 | 26 |
Quoted Prices In Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 13 | 21 |
Net derivative contracts | 0 | 0 |
Available for sale investments | 25 | 26 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 0 | 0 |
Net derivative contracts | (42) | (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 | 13 | 21 |
Net derivative contracts | 0 | 0 |
Available for sale investments | $ 11 | $ 16 |
Inventories (Schedule of Invent
Inventories (Schedule of Inventory) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Inventory, Net [Abstract] | ||
Finished products | $ 2,093 | $ 2,189 |
Raw materials and work in process | 655 | 724 |
Gross inventories | 2,748 | 2,913 |
Less: excess of FIFO cost over LIFO cost | (129) | (173) |
Total inventories | $ 2,619 | $ 2,740 |
Percent of LIFO inventories to total inventories | 37.00% | 35.00% |
Financing Arrangements (Summary
Financing Arrangements (Summary of Debt) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | May. 15, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | |||
Long-term Debt | $ 3,978 | $ 3,778 | |
Current maturities of long-term debt | 508 | 234 | |
Long-term debt | 3,470 | 3,544 | |
Maytag medium-term note - 5.0% matured 2015 | |||
Debt Instrument [Line Items] | |||
Long-term Debt | $ 0 | $ 200 | |
Stated interest rate | 5.00% | 5.00% | 5.00% |
Senior note - 6.5%, maturing 2016 | |||
Debt Instrument [Line Items] | |||
Long-term Debt | $ 250 | $ 250 | |
Stated interest rate | 6.50% | 6.50% | |
Debentures - 7.75%, maturing 2016 | |||
Debt Instrument [Line Items] | |||
Long-term Debt | $ 244 | $ 244 | |
Stated interest rate | 7.75% | 7.75% | |
Senior note - 1.35%, maturing 2017 | |||
Debt Instrument [Line Items] | |||
Long-term Debt | $ 250 | $ 250 | |
Stated interest rate | 1.35% | 1.35% | |
Senior note - 1.65%, maturing 2017 | |||
Debt Instrument [Line Items] | |||
Long-term Debt | $ 300 | $ 300 | |
Stated interest rate | 1.65% | 1.65% | |
Indesit guaranteed notes - 4.5%, maturing 2018 | |||
Debt Instrument [Line Items] | |||
Long-term Debt | $ 345 | $ 393 | |
Stated interest rate | 4.50% | 4.50% | |
Senior note - 2.4%, maturing 2019 | |||
Debt Instrument [Line Items] | |||
Long-term Debt | $ 250 | $ 250 | |
Stated interest rate | 2.40% | 2.40% | |
Senior note - 0.625% maturing 2020 | |||
Debt Instrument [Line Items] | |||
Long-term Debt | $ 541 | $ 0 | |
Stated interest rate | 0.625% | 0.625% | |
Senior note - 4.85%, maturing 2021 | |||
Debt Instrument [Line Items] | |||
Long-term Debt | $ 300 | $ 300 | |
Stated interest rate | 4.85% | 4.85% | |
Senior note - 4.70%, maturing 2022 | |||
Debt Instrument [Line Items] | |||
Long-term Debt | $ 300 | $ 300 | |
Stated interest rate | 4.70% | 4.70% | |
Senior note - 3.70%, maturing 2023 | |||
Debt Instrument [Line Items] | |||
Long-term Debt | $ 250 | $ 250 | |
Stated interest rate | 3.70% | 3.70% | |
Senior note - 4.0%, maturing 2024 | |||
Debt Instrument [Line Items] | |||
Long-term Debt | $ 300 | $ 300 | |
Stated interest rate | 4.00% | 4.00% | |
Senior note - 3.7%, maturing 2025 | |||
Debt Instrument [Line Items] | |||
Long-term Debt | $ 350 | $ 350 | |
Stated interest rate | 3.70% | 3.70% | |
Senior note - 5.15% maturing 2043 | |||
Debt Instrument [Line Items] | |||
Long-term Debt | $ 249 | $ 249 | |
Stated interest rate | 5.15% | 5.15% | |
Other | |||
Debt Instrument [Line Items] | |||
Long-term Debt | $ 49 | $ 142 |
Financing Arrangements (Summa56
Financing Arrangements (Summary of the Contractual Maturities of Debt Including Current Maturities) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Maturities of Long-term Debt [Abstract] | ||
2,016 | $ 508 | |
2,017 | 562 | |
2,018 | 357 | |
2,019 | 262 | |
2,020 | 541 | |
Thereafter | 1,748 | |
Long-term Debt | $ 3,978 | $ 3,778 |
Financing Arrangements (Narrati
Financing Arrangements (Narrative) (Details) | Sep. 25, 2015EUR (€) | May. 15, 2015USD ($) | Sep. 26, 2014USD ($) | Dec. 31, 2015BRL | Dec. 31, 2015USD ($) | Sep. 25, 2015USD ($) | Mar. 12, 2015EUR (€) | Mar. 12, 2015USD ($) | Dec. 31, 2014EUR (€) | Dec. 31, 2014USD ($) | Nov. 04, 2014USD ($) | Aug. 15, 2014USD ($) | May. 01, 2014USD ($) | Feb. 25, 2014USD ($) |
Debt Instrument [Line Items] | ||||||||||||||
Fair values of long-term debt (including current maturities) | $ 4,000,000,000 | $ 3,800,000,000 | ||||||||||||
Line of credit, maximum borrowing capacity | $ 2,800,000,000 | 3,000,000,000 | ||||||||||||
Change in control, purchase price of all notes, percentage | 101.00% | 101.00% | ||||||||||||
Long-term debt, fair value | $ 3,978,000,000 | $ 3,778,000,000 | ||||||||||||
Senior Notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Stated interest rate | 0.625% | 0.625% | ||||||||||||
Debt instrument, face amount | € 500,000,000 | $ 525,000,000 | $ 650,000,000 | |||||||||||
Senior note - 1.35%, maturing 2017 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Stated interest rate | 1.35% | |||||||||||||
Long-term debt, fair value | $ 250,000,000 | |||||||||||||
Senior note - 2.4%, maturing 2019 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Stated interest rate | 2.40% | |||||||||||||
Long-term debt, fair value | $ 250,000,000 | |||||||||||||
Senior note - 4.0%, maturing 2024 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Stated interest rate | 4.00% | |||||||||||||
Long-term debt, fair value | $ 300,000,000 | |||||||||||||
Senior note - 8.6%, matured 2014 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Stated interest rate | 8.60% | |||||||||||||
Long-term debt, fair value | $ 500,000,000 | |||||||||||||
Senior note - 0.625% maturing 2020 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Stated interest rate | 6.45% | |||||||||||||
Long-term debt, fair value | $ 100,000,000 | |||||||||||||
Senior note - 1.65%, maturing 2017 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Stated interest rate | 1.65% | |||||||||||||
Debt instrument, face amount | $ 300,000,000 | |||||||||||||
Senior note - 3.7%, maturing 2025 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Stated interest rate | 3.70% | |||||||||||||
Debt instrument, face amount | $ 350,000,000 | |||||||||||||
Maytag medium-term note - 5.0% matured 2015 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Repayment of debt | $ 200,000,000 | |||||||||||||
Stated interest rate | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | |||||||||
Long-term debt, fair value | $ 0 | $ 200,000,000 | ||||||||||||
Indesit guaranteed notes - 4.5%, maturing 2018 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Stated interest rate | 4.50% | 4.50% | 4.50% | 4.50% | ||||||||||
Long-term debt, fair value | $ 345,000,000 | $ 393,000,000 | ||||||||||||
Indesit guaranteed notes - 4.5%, maturing 2018 | Guaranteed Notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Principal amount assumed | € | € 300,000,000 | |||||||||||||
Committed Credit Facility Brazil maturing 2014 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Line of credit, maximum borrowing capacity | BRL 1,000,000,000 | 256,000,000 | ||||||||||||
Line of credit, amount outstanding | 0 | 0 | ||||||||||||
Line of Credit | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Line of credit, maximum borrowing capacity | $ 500,000,000 | |||||||||||||
Line of credit, amount outstanding | $ 0 | $ 0 | ||||||||||||
Debt instrument, term | 364 days | |||||||||||||
Line of credit , 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] | ||||||||||||||
Variable rate | 1.25% | 1.25% | ||||||||||||
Line of Credit | Prime Rate | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Variable rate | 0.25% | 0.25% | ||||||||||||
Foreign Line of Credit | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Line of credit, maximum borrowing capacity | € | € 250,000,000 | |||||||||||||
Credit facility Maturing September, 2019 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Line of credit, maximum borrowing capacity | $ 2,000,000,000 | |||||||||||||
Line of credit , unused capacity, commitment fee percentage | 0.15% | |||||||||||||
Line of credit, maximum borrowing capacity through accordion feature | $ 2,500,000,000 | |||||||||||||
Credit facility maturing June,2016 Restated | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Line of credit, maximum borrowing capacity | 1,700,000,000 | |||||||||||||
Letter of credit subfacility | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Line of credit, current borrowing capacity | $ 200,000,000 |
Financing Arrangements (Notes P
Financing Arrangements (Notes Payable) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Short-term Debt [Line Items] | ||
Short-term Debt | $ 20 | $ 569 |
Commercial paper | ||
Short-term Debt [Line Items] | ||
Short-term Debt | 0 | 387 |
Debt securitization | ||
Short-term Debt [Line Items] | ||
Short-term Debt | 0 | 35 |
Short-term borrowings to banks | ||
Short-term Debt [Line Items] | ||
Short-term Debt | $ 20 | $ 147 |
Commitments and Contingencies59
Commitments and Contingencies (Legal Contingencies Narrative) (Details) BRL in Millions | 1 Months Ended | 12 Months Ended | 24 Months Ended | |||||
Dec. 31, 2013BRLassessment | Dec. 31, 2015USD ($)manufacturer | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2009USD ($) | Dec. 31, 2004USD ($) | Dec. 31, 2015BRL | Dec. 31, 2015USD ($) | |
Loss Contingencies [Line Items] | ||||||||
BEFIEX tax credits, effect on net sales | $ 0 | $ 14,000,000 | $ 109,000,000 | |||||
Outstanding BEFIEX tax assessment | BRL 1,500 | $ 395,000,000 | ||||||
Number of manufacturers (manufacturer) | manufacturer | 11 | |||||||
Brazil Tax Matters | ||||||||
Loss Contingencies [Line Items] | ||||||||
IPI tax credits recognized | $ 26,000,000 | |||||||
Special government program settlement | $ 34,000,000 | |||||||
Brazil tax assessment | 219 | 56,000,000 | ||||||
CFC tax | ||||||||
Loss Contingencies [Line Items] | ||||||||
CFC potential exposure | 161 | 41,000,000 | ||||||
Brazilian government program | ||||||||
Loss Contingencies [Line Items] | ||||||||
Uncertainty removed from assessments (assessment) | assessment | 16 | |||||||
Government program total settlement payment | BRL 75 | BRL 24 | 6,000,000 | |||||
Settlement payment terms, period | 30 months | |||||||
Pending Litigation | ||||||||
Loss Contingencies [Line Items] | ||||||||
Embraco antitrust matters remaining accrual | 10,000,000 | |||||||
Installment payments to government authorities | $ 8,000,000 |
Commitments and Contingencies60
Commitments and Contingencies (Schedule of Product Warranty and Recall Reserves) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | ||||
Balance at January 1 | $ 235 | $ 191 | ||
Issuances/ accruals during the period | 560 | 322 | ||
Settlements made during the period | (285) | (272) | ||
Foreign currency/Other changes | (17) | (6) | ||
Balance at December 31 | 493 | 235 | ||
Current portion | $ 340 | $ 186 | ||
Non-current portion | 153 | 49 | ||
Total | 235 | 191 | 493 | 235 |
Issuances in product liability warranty due to acquisitions | 61 | |||
Product Warranty | ||||
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | ||||
Balance at January 1 | 235 | 191 | ||
Issuances/ accruals during the period | 286 | 322 | ||
Settlements made during the period | (274) | (272) | ||
Foreign currency/Other changes | (8) | (6) | ||
Balance at December 31 | 239 | 235 | ||
Current portion | 185 | 186 | ||
Non-current portion | 54 | 49 | ||
Total | 235 | 191 | 239 | 235 |
Legacy Product Warranty | ||||
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | ||||
Balance at January 1 | 0 | 0 | ||
Issuances/ accruals during the period | 274 | 0 | ||
Settlements made during the period | (11) | 0 | ||
Foreign currency/Other changes | (9) | 0 | ||
Balance at December 31 | 254 | 0 | ||
Current portion | 155 | 0 | ||
Non-current portion | 99 | 0 | ||
Total | $ 0 | $ 0 | $ 254 | $ 0 |
Commitments and Contingencies61
Commitments and Contingencies (Product Warranty Narrative) (Details) € in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | ||
Sep. 30, 2015EUR (€) | Sep. 30, 2015USD ($) | Dec. 31, 2015USD ($)dryer_production_platform | Sep. 30, 2015USD ($) | |
Damages from Product Defects | ||||
Product Warranty Liability [Line Items] | ||||
Number of platforms related to Legacy Warranty Reserve (dryer_production_platform) | dryer_production_platform | 2 | |||
Loss contingency, estimate of possible loss | € 245 | $ 274 | ||
Indesit Company S.p.A. | ||||
Product Warranty Liability [Line Items] | ||||
Increase made to goodwill | € 210 | $ 235 | ||
Product warranty expense | $ | $ 39 |
Commitments and Contingencies62
Commitments and Contingencies (Guarantee Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2008 | |
Customer Lines Of Credit For Brazilian Subsidiary | |||
Guarantor Obligations [Line Items] | |||
Guarantor obligations, maximum exposure, undiscounted | $ 260,000,000 | $ 492,000,000 | |
Loss associated with Brazilian subsidiary guarantee | 0 | 0 | |
Indebtedness And Lines of Credit For Various Consolidated Subsidiaries | |||
Guarantor Obligations [Line Items] | |||
Guarantor obligations, maximum exposure, undiscounted | 2,000,000,000 | $ 1,400,000,000 | |
Line of Credit | |||
Guarantor Obligations [Line Items] | |||
Guarantor obligations, maximum exposure, undiscounted | $ 43,000,000 | ||
Guarantor obligations, term | 5 years |
Commitments and Contingencies63
Commitments and Contingencies (Schedule of Future Minimum Rental Payments) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Leases, Operating [Abstract] | |||
2,016 | $ 218 | ||
2,017 | 175 | ||
2,018 | 142 | ||
2,019 | 111 | ||
2,020 | 87 | ||
Thereafter | 196 | ||
Total noncancelable operating lease commitments | 929 | ||
Rent expense | $ 238 | $ 228 | $ 217 |
Commitments and Contingencies64
Commitments and Contingencies (Schedule of Purchase Obligations) (Details) $ in Millions | Dec. 31, 2015USD ($) |
Unrecorded Unconditional Purchase Obligation, Fiscal Year Maturity [Abstract] | |
2,016 | $ 248 |
2,017 | 177 |
2,018 | 149 |
2,019 | 114 |
2,020 | 112 |
Thereafter | 186 |
Total purchase obligations | $ 986 |
Hedges and Derivative Financi65
Hedges and Derivative Financial Instruments (Narrative) (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2015USD ($)contract | Dec. 31, 2014contract | |
General Discussion of Derivative Instruments and Hedging Activities [Abstract] | ||
Number of interest rate derivatives held (contract) | contract | 0 | 0 |
Derivative instruments, loss reclassification from Accumulated OCI to income, estimated net amount to be transferred | $ | $ 25 |
Hedges and Derivative Financi66
Hedges and Derivative Financial Instruments (Schedule of Outstanding Derivative Contracts) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Derivatives, Fair Value [Line Items] | ||
Derivative asset, current | $ 54 | $ 64 |
Derivative asset, noncurrent | 0 | 1 |
Total derivatives, hedge assets at fair value | 54 | 65 |
Derivative liability, current | 79 | 59 |
Derivative liability, noncurrent | 17 | 7 |
Total derivatives, hedge liabilities at fair value | 96 | 66 |
Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of hedge assets | 32 | 31 |
Fair value of hedge liabilities | 74 | 37 |
Designated as Hedging Instrument | Foreign Exchange Contract | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 886 | 874 |
Fair value of hedge assets | 31 | 27 |
Fair value of hedge liabilities | $ 8 | $ 8 |
Maximum term of foreign exchange forwards/options, in months | 12 months | 17 months |
Designated as Hedging Instrument | Commodity Contract | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 322 | $ 375 |
Fair value of hedge assets | 1 | 4 |
Fair value of hedge liabilities | $ 66 | $ 29 |
Maximum term of commodity swaps/options, in months | 33 months | 36 months |
Not Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of hedge assets | $ 22 | $ 34 |
Fair value of hedge liabilities | 22 | 29 |
Not Designated as Hedging Instrument | Foreign Exchange Contract | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 2,886 | 2,358 |
Fair value of hedge assets | 22 | 34 |
Fair value of hedge liabilities | $ 21 | $ 29 |
Maximum term of foreign exchange forwards/options, in months | 11 months | 10 months |
Not Designated as Hedging Instrument | Commodity Contract | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 7 | $ 8 |
Fair value of hedge assets | 0 | 0 |
Fair value of hedge liabilities | $ 1 | $ 0 |
Maximum term of commodity swaps/options, in months | 6 months | 4 months |
Hedges and Derivative Financi67
Hedges and Derivative Financial Instruments (Schedule of Effects of Derivative Instruments on Consolidated Statements of Income) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in OCI (Effective Portion) | $ (25) | $ 10 |
Gain (Loss) Reclassified from OCI into Income (Effective Portion) | (2) | 11 |
Foreign Exchange Contract | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in OCI (Effective Portion) | 77 | 40 |
Gain (Loss) Reclassified from OCI into Income (Effective Portion) | 56 | 22 |
Gain (Loss) Recognized on Derivatives not Accounted for as Hedges | 29 | 26 |
Commodity Contract | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in OCI (Effective Portion) | (102) | (30) |
Gain (Loss) Reclassified from OCI into Income (Effective Portion) | (57) | (10) |
Interest Rate Contract | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in OCI (Effective Portion) | 0 | 0 |
Gain (Loss) Reclassified from OCI into Income (Effective Portion) | $ (1) | $ (1) |
Stockholders' Equity (Other Com
Stockholders' Equity (Other Comprehensive Income) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | $ (1,840) | $ (1,298) | $ (1,531) |
Unrealized gain (loss) | (452) | (393) | (113) |
Unrealized actuarial gain(loss) and prior service credit (cost) | (79) | (233) | 508 |
Tax effect | 30 | 80 | (165) |
Other comprehensive income (loss), net of tax | (501) | (546) | 230 |
Less: Other comprehensive loss available to noncontrolling interests | (9) | (4) | (3) |
Other comprehensive income (loss) available to Whirlpool | (492) | (542) | 233 |
Ending balance | (2,332) | (1,840) | (1,298) |
Foreign Currency | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (925) | (532) | (438) |
Unrealized gain (loss) | (432) | (392) | (122) |
Unrealized actuarial gain(loss) and prior service credit (cost) | 0 | 0 | 0 |
Tax effect | 0 | (5) | 25 |
Other comprehensive income (loss), net of tax | (432) | (397) | (97) |
Less: Other comprehensive loss available to noncontrolling interests | (9) | (4) | (3) |
Other comprehensive income (loss) available to Whirlpool | (423) | (393) | (94) |
Ending balance | (1,348) | (925) | (532) |
Derivative Instruments | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (7) | (6) | (8) |
Unrealized gain (loss) | (23) | (1) | 2 |
Unrealized actuarial gain(loss) and prior service credit (cost) | 0 | 0 | 0 |
Tax effect | 0 | 0 | 0 |
Other comprehensive income (loss), net of tax | (23) | (1) | 2 |
Less: Other comprehensive loss available to noncontrolling interests | 0 | 0 | 0 |
Other comprehensive income (loss) available to Whirlpool | (23) | (1) | 2 |
Ending balance | (30) | (7) | (6) |
Pension and Postretirement Liability | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (918) | (770) | (1,088) |
Unrealized gain (loss) | 0 | 0 | 0 |
Unrealized actuarial gain(loss) and prior service credit (cost) | (79) | (233) | 508 |
Tax effect | 30 | 85 | (190) |
Other comprehensive income (loss), net of tax | (49) | (148) | 318 |
Less: Other comprehensive loss available to noncontrolling interests | 0 | 0 | 0 |
Other comprehensive income (loss) available to Whirlpool | (49) | (148) | 318 |
Ending balance | (967) | (918) | (770) |
Marketable Securities | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | 10 | 10 | 3 |
Unrealized gain (loss) | 3 | 0 | 7 |
Unrealized actuarial gain(loss) and prior service credit (cost) | 0 | 0 | 0 |
Tax effect | 0 | 0 | 0 |
Other comprehensive income (loss), net of tax | 3 | 0 | 7 |
Less: Other comprehensive loss available to noncontrolling interests | 0 | 0 | 0 |
Other comprehensive income (loss) available to Whirlpool | 3 | 0 | 7 |
Ending balance | $ 13 | $ 10 | $ 10 |
Stockholders' Equity (Net Earni
Stockholders' Equity (Net Earnings Per Share) (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Stockholders' Equity Note [Abstract] | |||||||||||
Numerator for basic and diluted earnings per share – net earnings available to Whirlpool | $ 180 | $ 235 | $ 177 | $ 191 | $ 81 | $ 230 | $ 179 | $ 160 | $ 783 | $ 650 | $ 827 |
Denominator for basic earnings per share – weighted-average shares (shares) | 78.7 | 78.3 | 79.3 | ||||||||
Effect of dilutive securities – stock-based compensation (shares) | 1 | 1.3 | 1.5 | ||||||||
Denominator for diluted earnings per share – adjusted weighted-average shares (shares) | 79.7 | 79.6 | 80.8 | ||||||||
Anti-dilutive stock options/awards excluded from earnings per share (shares) | 0.2 | 0.2 | 0 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Apr. 14, 2014 | |
Equity, Class of Treasury Stock [Line Items] | ||||||||||||
Dividends paid, per share (USD per share) | $ 0.90 | $ 0.90 | $ 0.90 | $ 0.75 | $ 0.75 | $ 0.75 | $ 0.75 | $ 0.625 | $ 3.45 | $ 2.88 | $ 2.38 | |
Stock repurchased during period, value | $ 163,000,000 | $ 206,000,000 | ||||||||||
Common Stock | Share Repurchase Program 2014 | ||||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||||
Stock repurchase program, authorized amount (shares) | $ 500,000,000 | |||||||||||
Stock repurchased during period, shares (shares) | 1,505,299 | 165,900 | ||||||||||
Stock repurchased during period, value | $ 250,000,000 | $ 25,000,000 | ||||||||||
Stock repurchase program, remaining authorized repurchase amount | $ 225,000,000 | $ 225,000,000 |
Share-based Incentive Plans Sto
Share-based Incentive Plans Stock Options and Incentive Plans (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share based compensation expense | $ 52,000,000 | $ 47,000,000 | $ 50,000,000 |
Share based compensation related income tax benefits recognized in earnings | 18,000,000 | $ 16,000,000 | $ 17,000,000 |
Compensation cost not yet recognized | $ 47,000,000 | ||
Compensation cost not yet recognized, period for recognition | 28 months | ||
Number of shares available for grant (shares) | 6,600,000 | ||
Grants in period, weighted average grant date fair value (USD per share) | $ 63.40 | $ 42.09 | $ 33.92 |
Weighted average grant date fair value (USD per share) | $ 155.37 | $ 133.31 | $ 107.85 |
Total fair value, options vested in period | $ 41,000,000 | $ 25,000,000 | $ 35,000,000 |
Nonemployee director equity award | $ 125,000 | ||
Nonemployee director one-time shares granted (shares) | 1,000 | ||
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Terms of award | 10 years | ||
Intrinsic Value | $ 48,000,000 | 36,000,000 | 53,000,000 |
Tax benefit from stock options exercised | 18,000,000 | 13,000,000 | 19,000,000 |
Proceeds from stock options exercised | $ 38,000,000 | $ 38,000,000 | $ 95,000,000 |
Restricted Stock Units (RSUs) | Management | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Restricted Stock Units (RSUs) | Executives | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Restricted Stock Units (RSUs) | Executives | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 7 years | ||
Performance Stock Units | Management | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Performance Stock Units | Management | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance measures | 0.00% | ||
Performance Stock Units | Management | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance measures | 200.00% |
Stock Options and Incentive Pla
Stock Options and Incentive Plans (Weighted Average Assumptions) (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Risk-free interest rate | 1.50% | 1.50% | 0.90% |
Expected volatility | 35.50% | 38.20% | 40.30% |
Expected dividend yield | 1.40% | 1.80% | 1.80% |
Expected option life, in years | 5 years | 5 years | 5 years |
Stock Options and Incentive P73
Stock Options and Incentive Plans (Stock Option Activity) (Details) shares in Thousands | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Number of options outstanding at January 1 (shares) | shares | 2,115 |
Number of options granted (shares) | shares | 282 |
Number of options exercised (shares) | shares | (417) |
Number of options canceled or expired (shares) | shares | (42) |
Number of options outstanding at December 31 (shares) | shares | 1,938 |
Number of shares exercisable at December 31 (shares) | shares | 1,295 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |
Weighted-average exercise price outstanding at January 1 (USD per share) | $ / shares | $ 88.62 |
Weighted-average exercise price granted (USD per share) | $ / shares | 213.14 |
Weighted-average exercise price exercised (USD per share) | $ / shares | 90.99 |
Weighted-average exercise price canceled or expired (USD per share) | $ / shares | 124.33 |
Weighted-average exercise price outstanding at December 31 (USD per share) | $ / shares | 105.46 |
Weighted-Average Exercise Price Exercisable at December 31 (USD per share) | $ / shares | $ 76.25 |
Stock Options and Incentive P74
Stock Options and Incentive Plans (Stock Options Outstanding, Additional Info) (Details) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |
Number of options (shares) | shares | 1,852 |
Number of shares exercisable at December 31 (shares) | shares | 1,295 |
Weighted-average exercise price per share | $ / shares | $ 105.53 |
Weighted-Average Exercise Price Exercisable at December 31 (USD per share) | $ / shares | $ 76.25 |
Aggregate intrinsic value | $ | $ 94 |
Exercisable, intrinsic value | $ | $ 92 |
Weighted-average remaining contractual term, in years | 6 years |
Weighted-average remaining contractual term, in years | 5 years |
Stock Options and Incentive P75
Stock Options and Incentive Plans (Stock Units) (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Non-vested, at January 1 (shares) | 1,104 | ||
Granted (shares) | 341 | ||
Canceled (shares) | (53) | ||
Vested and transferred to unrestricted (shares) | (559) | ||
Non-vested, at December 31 (shares) | 833 | 1,104 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Non-vested, at January 1 (USD per share) | $ 90.34 | ||
Granted (USD per share) | 155.37 | $ 133.31 | $ 107.85 |
Canceled (USD per share) | 121.42 | ||
Vested and transferred to unrestricted (USD per share) | 74.21 | ||
Non-vested, at December 31 (USD per share) | $ 125.71 | $ 90.34 |
Restructuring Charges (Narrativ
Restructuring Charges (Narrative) (Details) € in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2015EUR (€) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2015USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||||
Payments for restructuring | $ 202 | $ 168 | ||
Asset impairment costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Payments for restructuring | 0 | 0 | ||
Other exit costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Payments for restructuring | 21 | $ 14 | ||
Italy | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related cost, expected cost | € | € 241 | |||
Payments for restructuring | 209 | $ 227 | ||
Italy | Employee Severance | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related cost, expected cost | 179 | $ 194 | ||
Italy | Asset impairment costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related cost, expected cost | 25 | 27 | ||
Italy | Other exit costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related cost, expected cost | € 37 | $ 40 |
Restructuring Charges (Details)
Restructuring Charges (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve, beginning balance | $ 78 | $ 106 | ||
Charge to Earnings | 201 | 136 | $ 196 | |
Cash Paid | (202) | (168) | ||
Non-Cash and Other | (29) | (36) | ||
Revision of Estimate | 3 | |||
Acquisition-related | 40 | |||
Restructuring reserve, ending balance | $ 78 | 51 | 78 | 106 |
Indesit Company S.p.A. | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve, beginning balance | 17 | |||
Acquisition-related | 40 | |||
Restructuring reserve, ending balance | 17 | 17 | ||
Employee termination costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve, beginning balance | 58 | 74 | ||
Charge to Earnings | 136 | 82 | ||
Cash Paid | (168) | (128) | ||
Non-Cash and Other | 1 | (10) | ||
Revision of Estimate | 3 | |||
Acquisition-related | 40 | |||
Restructuring reserve, ending balance | 58 | 30 | 58 | 74 |
Asset impairment costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve, beginning balance | 0 | 0 | ||
Charge to Earnings | 30 | 26 | ||
Cash Paid | 0 | 0 | ||
Non-Cash and Other | (30) | (26) | ||
Revision of Estimate | 0 | |||
Acquisition-related | 0 | |||
Restructuring reserve, ending balance | 0 | 0 | 0 | 0 |
Facility exit costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve, beginning balance | 4 | 14 | ||
Charge to Earnings | 12 | 16 | ||
Cash Paid | (13) | (26) | ||
Non-Cash and Other | 0 | 0 | ||
Revision of Estimate | 0 | |||
Acquisition-related | 0 | |||
Restructuring reserve, ending balance | 4 | 3 | 4 | 14 |
Other exit costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve, beginning balance | 16 | 18 | ||
Charge to Earnings | 23 | 12 | ||
Cash Paid | (21) | (14) | ||
Non-Cash and Other | 0 | 0 | ||
Revision of Estimate | 0 | |||
Acquisition-related | 0 | |||
Restructuring reserve, ending balance | $ 16 | $ 18 | $ 16 | $ 18 |
Restructuring Charges (By Segme
Restructuring Charges (By Segment) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | $ 201 | $ 136 | $ 196 |
Operating Segments | North America | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 10 | ||
Operating Segments | EMEA | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 158 | ||
Operating Segments | Latin America | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 26 | ||
Operating Segments | Asia | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 0 | ||
Corporate, Non-Segment | Corporate / Other | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | $ 7 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | Oct. 24, 2014 | Oct. 14, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Cash and Cash Equivalents [Line Items] | |||||
Income tax expense | $ 209 | $ 189 | $ 68 | ||
Effective income tax rate | 35.00% | ||||
Distribution of foreign earnings | $ 11 | ||||
Undistributed foreign earnings | 4,200 | ||||
Cash and cash equivalents | 772 | ||||
Operating loss carryforwards | 3,400 | ||||
Operating loss carryforwards, not subject to expiration | 2,000 | ||||
Foreign tax credit carryforwards | 253 | 249 | |||
U.S. general business credit carryforwards, including Energy Tax Credits | 1,010 | 1,005 | |||
Valuation allowance, deferred tax assets | 286 | 308 | |||
Valuation allowance, operating loss carryforward | 239 | ||||
Valuation allowance, other tax carryforwards | 47 | ||||
Positions assumed in acquisitions | 0 | 42 | 0 | ||
Unrecognized tax benefits, income tax penalties and interest expense (benefit) | 5 | (6) | $ (12) | ||
Unrecognized tax Benefits | 30 | ||||
Unrecognized tax benefits, income tax penalties and interest accrued | 63 | 63 | |||
Hefei Sanyo And Indesit | |||||
Cash and Cash Equivalents [Line Items] | |||||
Positions assumed in acquisitions | 72 | ||||
Unrecognized tax benefits, income tax penalties and interest expense (benefit) | $ 31 | ||||
Whirlpool China | |||||
Cash and Cash Equivalents [Line Items] | |||||
Positions assumed in acquisitions | $ 62 | ||||
Indesit Company S.p.A. | |||||
Cash and Cash Equivalents [Line Items] | |||||
Positions assumed in acquisitions | $ 10 | ||||
United States | |||||
Cash and Cash Equivalents [Line Items] | |||||
Operating loss carryforwards | 1,100 | ||||
Geographical, outside the United States | |||||
Cash and Cash Equivalents [Line Items] | |||||
Cash and cash equivalents | $ 726 |
Income Taxes (Schedule of Recon
Income Taxes (Schedule of Reconciliations Between Tax Expense and The Consolidated Effective Income Tax Rate for Earnings Before Income Taxes and Other Items - Tax Rates) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 555 | $ 325 | $ 149 |
Foreign | 476 | 556 | 768 |
Earnings before income taxes | 1,031 | 881 | 917 |
Income tax computed at United States statutory rate | 361 | 308 | 321 |
U.S. government tax incentives, including Energy Tax Credits | (13) | (10) | (142) |
Foreign government tax incentives, including BEFIEX | (19) | (46) | (63) |
Foreign tax rate differential | (36) | (17) | (17) |
U.S. foreign tax credits | (103) | (148) | (231) |
Valuation allowances | (95) | 9 | 16 |
State and local taxes, net of federal tax benefit | 18 | 5 | 7 |
Foreign withholding taxes | 16 | 16 | 29 |
U.S. tax on foreign dividends and subpart F income | 57 | 56 | 195 |
Settlement of global tax audits | 16 | (5) | (54) |
Other items, net | 7 | 21 | 7 |
Total income tax expense | $ 209 | $ 189 | $ 68 |
Incomes Taxes (Income tax (bene
Incomes Taxes (Income tax (benefit) provision) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
United States, current federal tax expense (benefit) | $ 98 | $ 7 | $ (60) |
Current foreign tax expense (benefit) | 181 | 182 | 187 |
Current state and local tax expense (benefit) | 10 | (2) | 2 |
Current income tax expense (benefit) | 289 | 187 | 129 |
United States, deferred federal income tax expense (benefit) | 55 | 8 | (57) |
Deferred foreign income tax expense (benefit) | (143) | 12 | (9) |
Deferred state and local income tax expense (benefit) | 8 | (18) | 5 |
Deferred income tax expense (benefit) | (80) | 2 | (61) |
Total income tax expense | $ 209 | $ 189 | $ 68 |
Incomes Taxes (DTA and DTL) (De
Incomes Taxes (DTA and DTL) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax liabilities | ||
Intangibles | $ 770 | $ 800 |
Property, net | 175 | 156 |
LIFO inventory | 57 | 45 |
Other | 214 | 193 |
Total deferred tax liabilities | 1,216 | 1,194 |
Deferred tax assets | ||
U.S. general business credit carryforwards, including Energy Tax Credits | 1,010 | 1,005 |
Pensions | 315 | 316 |
Loss carryforwards | 683 | 650 |
Postretirement obligations | 168 | 199 |
Foreign tax credit carryforwards | 253 | 249 |
Research and development capitalization | 306 | 358 |
Employee payroll and benefits | 164 | 141 |
Accrued expenses | 133 | 110 |
Product warranty accrual | 64 | 62 |
Receivable and inventory allowances | 106 | 73 |
Other | 353 | 300 |
Total deferred tax assets | 3,555 | 3,463 |
Valuation allowances for deferred tax assets | (286) | (308) |
Deferred tax assets, net of valuation allowances | 3,269 | 3,155 |
Net deferred tax assets | $ 2,053 | $ 1,961 |
Income Taxes (Schedule of Unrec
Income Taxes (Schedule of Unrecognized tax benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance, January 1 | $ 141 | $ 113 | $ 178 |
Additions for tax positions of the current year | 12 | 17 | 17 |
Additions for tax positions of prior years | 27 | 4 | 6 |
Reductions for tax positions of prior years | (25) | (23) | (81) |
Settlements during the period | (5) | (11) | (3) |
Positions assumed in acquisitions | 0 | 42 | 0 |
Lapses of applicable statute of limitation | (7) | (1) | (4) |
Balance, December 31 | $ 143 | $ 141 | $ 113 |
Pension and Other Postretirem84
Pension and Other Postretirement Benefit Plans (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | 54 Months Ended | ||||
Sep. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2011 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||
Company match percentage | 7.00% | ||||||
Contributions | $ 76 | $ 71 | $ 68 | ||||
Curtailment gain | $ 16 | $ 47 | 63 | 0 | 0 | ||
Cost of Sales | |||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||
Curtailment gain | $ 15 | $ 43 | |||||
Other Postretirement Benefits | |||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||
Plan amendments | $ 138 | (8) | (14) | ||||
Net periodic benefit cost | (65) | (9) | (16) | $ 106 | |||
Curtailment gain | $ 63 | 0 | 0 | ||||
United States Pension Benefits | |||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||
Service requirement | 10 years | ||||||
Plan, age requirement | 55 years | ||||||
Plan amendments | $ 0 | 0 | |||||
Net periodic benefit cost | 12 | 16 | 35 | ||||
Curtailment gain | $ 0 | $ 0 | $ 0 | ||||
United States Pension Benefits | Equity Securities | |||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||
Target plan asset allocations | 41.00% | ||||||
United States Pension Benefits | Fixed Income Funds | |||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||
Target plan asset allocations | 59.00% | ||||||
United States Pension Benefits | US Large-Cap Companies | |||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||
Target plan asset allocations | 51.00% | ||||||
United States Pension Benefits | International Equity Securities | |||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||
Target plan asset allocations | 27.00% | ||||||
United States Pension Benefits | US Mid and Small Cap Companies | United States | |||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||
Target plan asset allocations | 14.00% | ||||||
United States Pension Benefits | Venture Capital Funds | |||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||
Target plan asset allocations | 8.00% | ||||||
United States Pension Benefits | Corporate Debt Securities | |||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||
Target plan asset allocations | 75.00% | ||||||
United States Pension Benefits | US Treasury and Government | |||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||
Target plan asset allocations | 25.00% |
Pension and Other Postretirem85
Pension and Other Postretirement Benefit Plans (Obligations and Funded Status at End of Year) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Funded status | |||
Fair value of plan assets | $ 3,293 | $ 3,682 | |
United States Pension Benefits | |||
Funded status | |||
Fair value of plan assets | 2,741 | 3,042 | $ 2,835 |
Benefit obligations | 3,470 | 3,796 | 3,546 |
Funded status | (729) | (754) | |
Amounts recognized in the consolidated balance sheet | |||
Noncurrent asset | 0 | 0 | |
Current liability | (10) | (9) | |
Noncurrent liability | (719) | (745) | |
Amount recognized | (729) | (754) | |
Amounts recognized in accumulated other comprehensive loss (pre-tax) | |||
Net actuarial loss | 1,404 | 1,368 | |
Prior service (credit) cost | (11) | (14) | |
Amount recognized | 1,393 | 1,354 | |
Foreign Pension Benefits | |||
Funded status | |||
Fair value of plan assets | 552 | 640 | 206 |
Benefit obligations | 865 | 1,026 | 439 |
Funded status | (313) | (386) | |
Amounts recognized in the consolidated balance sheet | |||
Noncurrent asset | 5 | 8 | |
Current liability | (12) | (16) | |
Noncurrent liability | (306) | (378) | |
Amount recognized | (313) | (386) | |
Amounts recognized in accumulated other comprehensive loss (pre-tax) | |||
Net actuarial loss | 99 | 118 | |
Prior service (credit) cost | (3) | 0 | |
Amount recognized | 96 | 118 | |
Other Postretirement Benefits | |||
Funded status | |||
Fair value of plan assets | 0 | 0 | 0 |
Benefit obligations | 441 | 502 | $ 509 |
Funded status | (441) | (502) | |
Amounts recognized in the consolidated balance sheet | |||
Noncurrent asset | 0 | 0 | |
Current liability | (51) | (56) | |
Noncurrent liability | (390) | (446) | |
Amount recognized | (441) | (502) | |
Amounts recognized in accumulated other comprehensive loss (pre-tax) | |||
Net actuarial loss | 20 | 53 | |
Prior service (credit) cost | (25) | (120) | |
Amount recognized | $ (5) | $ (67) |
Pension and Other Postretirem86
Pension and Other Postretirement Benefit Plans (Change in Benefit Obligation) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2011 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
United States Pension Benefits | ||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||||
Benefit obligation, beginning of year | $ 3,796 | $ 3,546 | ||
Service cost | 3 | 2 | $ 2 | |
Interest cost | 150 | 167 | 162 | |
Plan participants’ contributions | 0 | 0 | ||
Actuarial loss (gain) | (164) | 384 | ||
Benefits paid | (315) | (303) | ||
Plan amendments | 0 | 0 | ||
Acquisitions | 0 | 0 | ||
Transfer of benefits | 0 | 0 | ||
Settlements / curtailment (gain) | 0 | 0 | ||
Foreign currency exchange rates | 0 | 0 | ||
Benefit obligation, end of year | 3,470 | 3,796 | 3,546 | |
Accumulated benefit obligation, end of year | 3,459 | 3,786 | ||
Foreign Pension Benefits | ||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||||
Benefit obligation, beginning of year | 1,026 | 439 | ||
Service cost | 5 | 5 | 6 | |
Interest cost | 31 | 22 | 17 | |
Plan participants’ contributions | 1 | 1 | ||
Actuarial loss (gain) | (11) | 59 | ||
Benefits paid | (31) | (24) | ||
Plan amendments | (3) | (3) | ||
Acquisitions | 0 | 610 | ||
Transfer of benefits | 0 | 0 | ||
Settlements / curtailment (gain) | (66) | (15) | ||
Foreign currency exchange rates | (87) | (68) | ||
Benefit obligation, end of year | 865 | 1,026 | 439 | |
Accumulated benefit obligation, end of year | 806 | 964 | ||
Other Postretirement Benefits | ||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||||
Benefit obligation, beginning of year | 502 | 509 | ||
Service cost | 2 | 3 | 4 | |
Interest cost | 19 | 24 | 18 | |
Plan participants’ contributions | 7 | 7 | ||
Actuarial loss (gain) | (32) | 9 | ||
Benefits paid | (55) | (60) | ||
Plan amendments | $ (138) | 8 | 14 | |
Acquisitions | 0 | 0 | ||
Transfer of benefits | 0 | 0 | ||
Settlements / curtailment (gain) | 0 | 0 | ||
Foreign currency exchange rates | (10) | (4) | ||
Benefit obligation, end of year | $ 441 | $ 502 | $ 509 |
Pension and Other Postretirem87
Pension and Other Postretirement Benefit Plans (Change in Plan Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets, beginning of year | $ 3,682 | |
Fair value of plan assets, end of year | 3,293 | $ 3,682 |
United States Pension Benefits | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets, beginning of year | 3,042 | 2,835 |
Actual return on plan assets | (62) | 381 |
Employer contribution | 76 | 129 |
Plan participants’ contributions | 0 | 0 |
Benefits paid | (315) | (303) |
Acquisitions | 0 | 0 |
Other Adjustments | 0 | 0 |
Settlements | 0 | 0 |
Foreign currency exchange rates | 0 | 0 |
Fair value of plan assets, end of year | 2,741 | 3,042 |
Foreign Pension Benefits | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets, beginning of year | 640 | 206 |
Actual return on plan assets | 16 | 33 |
Employer contribution | 39 | 30 |
Plan participants’ contributions | 1 | 1 |
Benefits paid | (31) | (24) |
Acquisitions | 0 | 437 |
Other Adjustments | 4 | 0 |
Settlements | (73) | (10) |
Foreign currency exchange rates | (44) | (33) |
Fair value of plan assets, end of year | 552 | 640 |
Other Postretirement Benefits | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets, beginning of year | 0 | 0 |
Actual return on plan assets | 0 | 0 |
Employer contribution | 48 | 53 |
Plan participants’ contributions | 7 | 7 |
Benefits paid | (55) | (60) |
Acquisitions | 0 | 0 |
Other Adjustments | 0 | 0 |
Settlements | 0 | 0 |
Foreign currency exchange rates | 0 | 0 |
Fair value of plan assets, end of year | $ 0 | $ 0 |
Pension and Other Postretirem88
Pension and Other Postretirement Benefit Plans (Components of Net Periodic Benefit Cost) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | 54 Months Ended | |||
Sep. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | |
Amortization: | ||||||
Curtailment gain | $ (16) | $ (47) | $ (63) | $ 0 | $ 0 | |
United States Pension Benefits | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Service cost | 3 | 2 | 2 | |||
Interest cost | 150 | 167 | 162 | |||
Expected return on plan assets | (191) | (193) | (191) | |||
Amortization: | ||||||
Actuarial loss | 53 | 43 | 62 | |||
Prior service cost (credit) | (3) | (3) | (3) | |||
Curtailment gain | 0 | 0 | 0 | |||
Settlement loss | 0 | 0 | 3 | |||
Net periodic benefit cost | 12 | 16 | 35 | |||
Foreign Pension Benefits | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Service cost | 5 | 5 | 6 | |||
Interest cost | 31 | 22 | 17 | |||
Expected return on plan assets | (33) | (16) | (10) | |||
Amortization: | ||||||
Actuarial loss | 5 | 5 | 6 | |||
Prior service cost (credit) | 0 | 1 | 1 | |||
Curtailment gain | 0 | 0 | 0 | |||
Settlement loss | 12 | 4 | 1 | |||
Net periodic benefit cost | 20 | 21 | 21 | |||
Other Postretirement Benefits | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Service cost | 2 | 3 | 4 | |||
Interest cost | 19 | 24 | 18 | |||
Expected return on plan assets | 0 | 0 | 0 | |||
Amortization: | ||||||
Actuarial loss | 0 | 0 | 1 | |||
Prior service cost (credit) | (23) | (36) | (39) | |||
Curtailment gain | (63) | 0 | 0 | |||
Settlement loss | 0 | 0 | 0 | |||
Net periodic benefit cost | $ (65) | $ (9) | $ (16) | $ 106 |
Pension and Other Postretirem89
Pension and Other Postretirement Benefit Plans (Other Changes in Plan Assets and Benefit Obligations Recognized in OCI (Pre-Tax) in 2011) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Current year actuarial loss | $ 55 | $ 242 | $ (475) |
Total recognized in other comprehensive loss (pre-tax) | 79 | $ 233 | $ (508) |
United States Pension Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Current year actuarial loss | 89 | ||
Actuarial (loss) recognized during the year | (53) | ||
Current year prior service cost (credit) | 0 | ||
Prior service credit (cost) recognized during the year | 3 | ||
Total recognized in other comprehensive loss (pre-tax) | 39 | ||
Total recognized in net periodic benefit costs and other comprehensive loss (pre-tax) | 51 | ||
Foreign Pension Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Current year actuarial loss | (2) | ||
Actuarial (loss) recognized during the year | (17) | ||
Current year prior service cost (credit) | (3) | ||
Prior service credit (cost) recognized during the year | 0 | ||
Total recognized in other comprehensive loss (pre-tax) | (22) | ||
Total recognized in net periodic benefit costs and other comprehensive loss (pre-tax) | (2) | ||
Other Postretirement Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Current year actuarial loss | (32) | ||
Actuarial (loss) recognized during the year | 0 | ||
Current year prior service cost (credit) | 8 | ||
Prior service credit (cost) recognized during the year | 86 | ||
Total recognized in other comprehensive loss (pre-tax) | 62 | ||
Total recognized in net periodic benefit costs and other comprehensive loss (pre-tax) | $ (3) |
Pension and Other Postretirem90
Pension and Other Postretirement Benefit Plans (Estimated Pre-Tax Amounts That Will Be Amortized from Accumulated OCI) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
United States Pension Benefits | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Actuarial loss | $ 46 |
Prior service (credit) | (3) |
Total | 43 |
Foreign Pension Benefits | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Actuarial loss | 4 |
Prior service (credit) | 0 |
Total | 4 |
Other Postretirement Benefits | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Actuarial loss | 0 |
Prior service (credit) | (10) |
Total | $ (10) |
Pension and Other Postretirem91
Pension and Other Postretirement Benefit Plans (Weighted-average assumptions used to determine benefit obligation at end of year and net periodic cost) (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
United States Pension Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate | 4.45% | 4.05% | |
Rate of compensation increase | 4.50% | 4.50% | |
Discount rate used calculating net periodic benefit cost | 4.05% | 4.95% | 4.05% |
Expected long-term rate of return on plan assets | 7.00% | 7.25% | 7.50% |
Rate of compensation increase used calculating net periodic benefit cost | 4.50% | 4.50% | 4.50% |
Foreign Pension Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate | 3.40% | 3.32% | |
Rate of compensation increase | 3.06% | 3.23% | |
Discount rate used calculating net periodic benefit cost | 3.32% | 3.89% | 3.93% |
Expected long-term rate of return on plan assets | 5.63% | 5.44% | 5.40% |
Rate of compensation increase used calculating net periodic benefit cost | 3.23% | 3.35% | 3.51% |
Other Postretirement Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate | 4.51% | 4.27% | |
Discount rate used calculating net periodic benefit cost | 4.74% | 5.25% | 4.03% |
Health care cost trend rate | |||
Initial rate | 7.00% | 7.00% | 7.00% |
Ultimate rate | 5.00% | 5.00% | 5.00% |
Pension and Other Postretirem92
Pension and Other Postretirement Benefit Plans (Estimated impact of one percentage-point change in assumed health care cost trend rate) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |
Effect on total of service and interest cost | $ 0 |
Effect on total of service and interest cost | 0 |
Effect on postretirement benefit obligations | 3 |
Effect on postretirement benefit obligations | $ (2) |
Pension and Other Postretirem93
Pension and Other Postretirement Benefit Plans (Expected Employer Contributions to Funded Plans) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
United States Pension Benefits | |
2016 expected contributions | $ 0 |
Foreign Pension Benefits | |
2016 expected contributions | $ 17 |
Pension and Other Postretirem94
Pension and Other Postretirement Benefit Plans (Expected Benefit Payments) (Details) $ in Millions | Dec. 31, 2015USD ($) |
United States Pension Benefits | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2,016 | $ 289 |
2,017 | 269 |
2,018 | 268 |
2,019 | 264 |
2,020 | 257 |
2021-2025 | 1,198 |
Foreign Pension Benefits | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2,016 | 35 |
2,017 | 35 |
2,018 | 37 |
2,019 | 39 |
2,020 | 38 |
2021-2025 | 200 |
Other Postretirement Benefits | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2,016 | 52 |
2,017 | 52 |
2,018 | 44 |
2,019 | 42 |
2,020 | 37 |
2021-2025 | $ 147 |
Pension and Other Postretirem95
Pension and Other Postretirement Benefit Plans (Fair Value of Plan Assets by Category) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 3,293 | $ 3,682 |
Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 26 | 29 |
US Government Debt Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 494 | 579 |
Foreign Government Debt Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 212 | 253 |
Domestic Corporate Debt Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 909 | 1,000 |
Foreign Corporate Debt Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 160 | 321 |
U.S. Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 13 | 12 |
Foreign Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 472 | 427 |
Money Market Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 59 | 67 |
Common and Collective Funds, U.S. equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 648 | 651 |
Common and Collective Funds, International equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 65 | 66 |
Common and Collective Funds, Short-term investment fund | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 55 | 63 |
Limited Partnership, U.S. Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 120 | 140 |
Limited Partnerships, Diversified fund of funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 21 | 32 |
Limited Partnerships, Emerging growth | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 15 | 23 |
Real Estate | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 10 | 10 |
All other investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 14 | 9 |
Fair Value, Inputs, Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 570 | 535 |
Fair Value, Inputs, Level 1 | Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 26 | 29 |
Fair Value, Inputs, Level 1 | US Government Debt Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Fair Value, Inputs, Level 1 | Foreign Government Debt Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Fair Value, Inputs, Level 1 | Domestic Corporate Debt Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Fair Value, Inputs, Level 1 | Foreign Corporate Debt Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Fair Value, Inputs, Level 1 | U.S. Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 13 | 12 |
Fair Value, Inputs, Level 1 | Foreign Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 472 | 427 |
Fair Value, Inputs, Level 1 | Money Market Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 59 | 67 |
Fair Value, Inputs, Level 1 | Common and Collective Funds, U.S. equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Fair Value, Inputs, Level 1 | Common and Collective Funds, International equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Fair Value, Inputs, Level 1 | Common and Collective Funds, Short-term investment fund | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Fair Value, Inputs, Level 1 | Limited Partnership, U.S. Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Fair Value, Inputs, Level 1 | Limited Partnerships, Diversified fund of funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Fair Value, Inputs, Level 1 | Limited Partnerships, Emerging growth | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Fair Value, Inputs, Level 1 | Real Estate | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Fair Value, Inputs, Level 1 | All other investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Fair Value, Inputs, Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 2,567 | 2,952 |
Fair Value, Inputs, Level 2 | Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Fair Value, Inputs, Level 2 | US Government Debt Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 494 | 579 |
Fair Value, Inputs, Level 2 | Foreign Government Debt Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 212 | 253 |
Fair Value, Inputs, Level 2 | Domestic Corporate Debt Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 909 | 1,000 |
Fair Value, Inputs, Level 2 | Foreign Corporate Debt Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 160 | 321 |
Fair Value, Inputs, Level 2 | U.S. Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Fair Value, Inputs, Level 2 | Foreign Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Fair Value, Inputs, Level 2 | Money Market Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Fair Value, Inputs, Level 2 | Common and Collective Funds, U.S. equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 648 | 651 |
Fair Value, Inputs, Level 2 | Common and Collective Funds, International equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 65 | 66 |
Fair Value, Inputs, Level 2 | Common and Collective Funds, Short-term investment fund | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 55 | 63 |
Fair Value, Inputs, Level 2 | Limited Partnership, U.S. Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Fair Value, Inputs, Level 2 | Limited Partnerships, Diversified fund of funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Fair Value, Inputs, Level 2 | Limited Partnerships, Emerging growth | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Fair Value, Inputs, Level 2 | Real Estate | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 10 | 10 |
Fair Value, Inputs, Level 2 | All other investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 14 | 9 |
Fair Value, Inputs, Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 156 | 195 |
Fair Value, Inputs, Level 3 | Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Fair Value, Inputs, Level 3 | US Government Debt Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Fair Value, Inputs, Level 3 | Foreign Government Debt Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Fair Value, Inputs, Level 3 | Domestic Corporate Debt Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Fair Value, Inputs, Level 3 | Foreign Corporate Debt Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Fair Value, Inputs, Level 3 | U.S. Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Fair Value, Inputs, Level 3 | Foreign Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Fair Value, Inputs, Level 3 | Money Market Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Fair Value, Inputs, Level 3 | Common and Collective Funds, U.S. equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Fair Value, Inputs, Level 3 | Common and Collective Funds, International equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Fair Value, Inputs, Level 3 | Common and Collective Funds, Short-term investment fund | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Fair Value, Inputs, Level 3 | Limited Partnership, U.S. Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 120 | 140 |
Fair Value, Inputs, Level 3 | Limited Partnerships, Diversified fund of funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 21 | 32 |
Fair Value, Inputs, Level 3 | Limited Partnerships, Emerging growth | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 15 | 23 |
Fair Value, Inputs, Level 3 | Real Estate | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Fair Value, Inputs, Level 3 | All other investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 0 | $ 0 |
Pension and Other Postretirem96
Pension and Other Postretirement Benefit Plans (Effect of Significant Unobservable Inputs (Level 3)) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | |
Fair value of plan assets, beginning of year | $ 3,682 |
Fair value of plan assets, end of year | 3,293 |
Fair Value, Inputs, Level 3 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | |
Fair value of plan assets, beginning of year | 195 |
Realized gains (net) | 34 |
Unrealized gains (net) | (20) |
Purchases | 5 |
Settlements | (58) |
Fair value of plan assets, end of year | $ 156 |
Pension and Other Postretirem97
Pension and Other Postretirement Benefit Plans (PBO and Fair Value of Plan Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
United States Pension Benefits | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Projected benefit obligation | $ 3,470 | $ 3,796 |
Fair value of plan assets | 2,741 | 3,042 |
Foreign Pension Benefits | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Projected benefit obligation | 776 | 872 |
Fair value of plan assets | $ 469 | $ 487 |
Pension and Other Postretirem98
Pension and Other Postretirement Benefit Plans (Accumulated Benefit Obligation in Excess of Plan Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
United States Pension Benefits | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Projected benefit obligation | $ 3,470 | $ 3,796 |
Accumulated benefit obligation | 3,459 | 3,786 |
Fair value of plan assets | 2,741 | 3,042 |
Foreign Pension Benefits | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Projected benefit obligation | 730 | 872 |
Accumulated benefit obligation | 690 | 825 |
Fair value of plan assets | $ 424 | $ 487 |
Operating Segment Information99
Operating Segment Information (Net Sales and Long-Lived Assets by Country) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | $ 5,560 | $ 5,277 | $ 5,208 | $ 4,846 | $ 6,003 | $ 4,824 | $ 4,682 | $ 4,363 | $ 20,891 | $ 19,872 | $ 18,769 |
Long-Lived Assets | 9,458 | 9,591 | 9,458 | 9,591 | 6,467 | ||||||
United States | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 9,189 | 9,064 | 8,577 | ||||||||
Long-Lived Assets | 4,558 | 4,529 | 4,558 | 4,529 | 4,461 | ||||||
Brazil | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 1,915 | 3,204 | 3,295 | ||||||||
Long-Lived Assets | 253 | 321 | 253 | 321 | 335 | ||||||
All Other Countries | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 9,787 | 7,604 | 6,897 | ||||||||
Long-Lived Assets | $ 4,647 | $ 4,741 | $ 4,647 | $ 4,741 | $ 1,671 |
Operating Segment Informatio100
Operating Segment Information (Schedule of Operating Segment Information) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 20,891 | $ 19,872 | $ 18,769 | ||||||||
Depreciation and amortization | 668 | 560 | 540 | ||||||||
Operating profit (loss) | $ 380 | $ 329 | $ 273 | $ 303 | $ 281 | $ 335 | $ 291 | $ 281 | 1,285 | 1,188 | 1,249 |
Total assets | 19,010 | 20,002 | 19,010 | 20,002 | 15,544 | ||||||
Capital expenditures | 689 | 720 | 578 | ||||||||
Operating Segments | North America | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 10,732 | 10,634 | 10,178 | ||||||||
Depreciation and amortization | 259 | 263 | 238 | ||||||||
Operating profit (loss) | 1,252 | 1,072 | 1,070 | ||||||||
Total assets | 7,683 | 7,736 | 7,683 | 7,736 | 7,785 | ||||||
Capital expenditures | 243 | 271 | 254 | ||||||||
Operating Segments | EMEA | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 5,601 | 3,905 | 3,024 | ||||||||
Depreciation and amortization | 199 | 104 | 95 | ||||||||
Operating profit (loss) | 188 | 59 | (4) | ||||||||
Total assets | 7,351 | 7,597 | 7,351 | 7,597 | 2,955 | ||||||
Capital expenditures | 220 | 187 | 101 | ||||||||
Operating Segments | Latin America | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 3,349 | 4,686 | 4,928 | ||||||||
Depreciation and amortization | 67 | 86 | 91 | ||||||||
Operating profit (loss) | 184 | 475 | 557 | ||||||||
Total assets | 2,260 | 2,917 | 2,260 | 2,917 | 3,380 | ||||||
Capital expenditures | 106 | 133 | 108 | ||||||||
Operating Segments | Asia | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 1,417 | 816 | 807 | ||||||||
Depreciation and amortization | 61 | 29 | 18 | ||||||||
Operating profit (loss) | 80 | (21) | 34 | ||||||||
Total assets | 2,738 | 2,734 | 2,738 | 2,734 | 921 | ||||||
Capital expenditures | 47 | 29 | 25 | ||||||||
Operating Segments | Other/ Eliminations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | (208) | (169) | (168) | ||||||||
Depreciation and amortization | 82 | 78 | 98 | ||||||||
Operating profit (loss) | (419) | (397) | (408) | ||||||||
Total assets | $ (1,022) | $ (982) | (1,022) | (982) | 503 | ||||||
Capital expenditures | 73 | 100 | 90 | ||||||||
Other Eliminations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 0 | 0 | 0 | ||||||||
Other Eliminations | North America | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 218 | 244 | 256 | ||||||||
Other Eliminations | EMEA | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 271 | 79 | 79 | ||||||||
Other Eliminations | Latin America | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 211 | 180 | 174 | ||||||||
Other Eliminations | Asia | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 52 | 266 | 257 | ||||||||
Other Eliminations | Other/ Eliminations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ (752) | $ (769) | $ (766) |
Quarterly Results of Operati101
Quarterly Results of Operations (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $ 5,560 | $ 5,277 | $ 5,208 | $ 4,846 | $ 6,003 | $ 4,824 | $ 4,682 | $ 4,363 | $ 20,891 | $ 19,872 | $ 18,769 |
Cost of products sold | 4,558 | 4,347 | 4,303 | 3,993 | 4,977 | 3,997 | 3,895 | 3,608 | 17,201 | 16,477 | 15,471 |
Operating profit | 380 | 329 | 273 | 303 | 281 | 335 | 291 | 281 | 1,285 | 1,188 | 1,249 |
Interest and sundry income (expense) | (57) | (21) | 42 | (53) | (64) | (39) | (16) | (23) | (89) | (142) | (155) |
Net earnings | 189 | 250 | 185 | 198 | 108 | 235 | 185 | 164 | 822 | 692 | 849 |
Net earnings available to Whirlpool | $ 180 | $ 235 | $ 177 | $ 191 | $ 81 | $ 230 | $ 179 | $ 160 | $ 783 | $ 650 | $ 827 |
Per share of common stock: | |||||||||||
Basic net earnings (USD per share) | $ 2.31 | $ 2.98 | $ 2.24 | $ 2.42 | $ 1.04 | $ 2.92 | $ 2.29 | $ 2.06 | $ 9.95 | $ 8.30 | $ 10.42 |
Diluted net earnings (USD per share) | 2.28 | 2.95 | 2.21 | 2.38 | 1.02 | 2.88 | 2.25 | 2.02 | 9.83 | 8.17 | 10.24 |
Dividends paid, per share (USD per share) | 0.90 | 0.90 | 0.90 | 0.75 | 0.75 | 0.75 | 0.75 | 0.625 | $ 3.45 | $ 2.88 | $ 2.38 |
Market price range of common stock | |||||||||||
Stock price, high (USD per share) | 167.72 | 186.82 | 202.50 | 217.11 | 196.71 | 156.13 | 156.71 | 160.01 | |||
Stock price, low (USD per share) | 140.50 | 143.75 | 172.85 | 186.14 | 139.85 | 135.37 | 136.64 | 124.39 | |||
Stock price, closing price (USD per share) | $ 146.87 | $ 147.26 | $ 173.05 | $ 202.06 | $ 193.74 | $ 145.65 | $ 139.22 | $ 149.46 |
Schedule II - Valuation and 102
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 154 | $ 73 | $ 60 |
Charged to Costs and Expenses | 5 | 76 | 21 |
Acquisition Impact | 24 | 45 | 0 |
Charged to Other Accounts/Other | 0 | 0 | 0 |
Deductions | (23) | (40) | (8) |
Balance at End of Period | $ 160 | $ 154 | $ 73 |