Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Jul. 20, 2018 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | WHIRLPOOL CORP /DE/ | |
Entity Central Index Key | 106,640 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding (in shares) | 64,563,249 |
Consolidated Condensed Statemen
Consolidated Condensed Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net sales | $ 5,140 | $ 5,347 | $ 10,051 | $ 10,133 |
Expenses | ||||
Cost of products sold | 4,260 | 4,471 | 8,359 | 8,431 |
Gross margin | 880 | 876 | 1,692 | 1,702 |
Selling, general and administrative | 541 | 526 | 1,046 | 1,025 |
Intangible amortization | 20 | 17 | 40 | 34 |
Restructuring costs | 44 | 59 | 188 | 105 |
Impairment of goodwill and other intangibles | 747 | 0 | 747 | 0 |
Operating profit (loss) | (472) | 274 | (329) | 538 |
Other (income) expense | ||||
Interest and sundry (income) expense | 90 | 23 | 82 | 48 |
Interest expense | 47 | 39 | 89 | 80 |
Earnings (loss) before income taxes | (609) | 212 | (500) | 410 |
Income tax expense | 30 | 33 | 45 | 73 |
Net earnings (loss) | (639) | 179 | (545) | 337 |
Less: Net earnings (loss) available to noncontrolling interests | 18 | (10) | 18 | (5) |
Net earnings (loss) available to Whirlpool | $ (657) | $ 189 | $ (563) | $ 342 |
Per share of common stock | ||||
Basic net earnings (loss) available to Whirlpool (USD per share) | $ (9.50) | $ 2.55 | $ (8.03) | $ 4.60 |
Diluted net earnings (loss) available to Whirlpool (USD per share) | (9.50) | 2.52 | (8.03) | 4.53 |
Dividends declared (USD per share) | $ 1.15 | $ 1.1 | $ 2.25 | $ 2.1 |
Weighted-average shares outstanding (in millions) | ||||
Basic (in shares) | 69.1 | 74 | 70.1 | 74.4 |
Diluted (in shares) | 69.1 | 75.1 | 70.1 | 75.6 |
Comprehensive income (loss) | $ (802) | $ 170 | $ (703) | $ 408 |
Consolidated Condensed Balance
Consolidated Condensed Balance Sheets - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Current assets | ||
Cash and cash equivalents | $ 1,057 | $ 1,196 |
Accounts receivable, net of allowance of $143 and $157, respectively | 2,464 | 2,665 |
Inventories | 3,032 | 2,988 |
Prepaid and other current assets | 946 | 1,081 |
Assets held for sale | 884 | 0 |
Total current assets | 8,383 | 7,930 |
Property, net of accumulated depreciation of $6,095 and $6,825, respectively | 3,427 | 4,033 |
Goodwill | 2,499 | 3,118 |
Other intangibles, net of accumulated amortization of $498 and $476, respectively | 2,354 | 2,591 |
Deferred income taxes | 2,072 | 2,013 |
Other noncurrent assets | 335 | 353 |
Total assets | 19,070 | 20,038 |
Current liabilities | ||
Accounts payable | 4,051 | 4,797 |
Accrued expenses | 785 | 674 |
Accrued advertising and promotions | 597 | 853 |
Employee compensation | 314 | 414 |
Notes payable | 1,796 | 450 |
Current maturities of long-term debt | 262 | 376 |
Other current liabilities | 815 | 941 |
Liabilities held for sale | 525 | 0 |
Total current liabilities | 9,145 | 8,505 |
Noncurrent liabilities | ||
Long-term debt | 4,781 | 4,392 |
Pension benefits | 931 | 1,029 |
Postretirement benefits | 336 | 352 |
Other noncurrent liabilities | 533 | 632 |
Total noncurrent liabilities | 6,581 | 6,405 |
Stockholders' equity | ||
Common stock, $1 par value, 250 million shares authorized, 112 million shares issued, and 65 million and 71 million shares outstanding, respectively | 112 | 112 |
Additional paid-in capital | 2,766 | 2,739 |
Retained earnings | 6,701 | 7,352 |
Accumulated other comprehensive loss | (2,506) | (2,331) |
Treasury stock, 47 million and 41 million shares, respectively | (4,675) | (3,674) |
Total Whirlpool stockholders' equity | 2,398 | 4,198 |
Noncontrolling interests | 946 | 930 |
Total stockholders' equity | 3,344 | 5,128 |
Total liabilities and stockholders' equity | $ 19,070 | $ 20,038 |
Consolidated Condensed Balance4
Consolidated Condensed Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 143 | $ 157 |
Accumulated depreciation | 6,095 | 6,825 |
Accumulated amortization | $ 498 | $ 476 |
Common stock, par value (USD per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 250,000,000 | 250,000,000 |
Common stock, shares issued (in shares) | 112,000,000 | 112,000,000 |
Common stock, shares outstanding (in shares) | 65,000,000 | 71,000,000 |
Treasury stock (in shares) | 47,000,000 | 41,000,000 |
Consolidated Condensed Stateme5
Consolidated Condensed Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Operating activities | ||
Net earnings (loss) | $ (545) | $ 337 |
Adjustments to reconcile net earnings to cash provided by (used in) operating activities: | ||
Depreciation and amortization | 339 | 319 |
Impairment of goodwill and other intangibles | 747 | 0 |
Changes in assets and liabilities: | ||
Accounts receivable | (103) | (179) |
Inventories | (399) | (522) |
Accounts payable | (287) | 175 |
Accrued advertising and promotions | (226) | (108) |
Accrued expenses and current liabilities | 191 | (78) |
Taxes deferred and payable, net | (66) | (84) |
Accrued pension and postretirement benefits | (46) | (35) |
Employee compensation | (31) | (2) |
Other | (158) | (14) |
Cash used in operating activities | (584) | (191) |
Investing activities | ||
Capital expenditures | (194) | (210) |
Proceeds from sale of assets and business | 27 | 4 |
Proceeds from held-to-maturity securities | 60 | 0 |
Investment in related businesses | (2) | (32) |
Other | 0 | (5) |
Cash used in investing activities | (109) | (243) |
Financing activities | ||
Proceeds from borrowings of long-term debt | 700 | 0 |
Repayments of long-term debt | (376) | (260) |
Net proceeds from short-term borrowings | 1,398 | 1,052 |
Dividends paid | (159) | (155) |
Repurchase of common stock | (1,001) | (350) |
Common stock issued | 7 | 32 |
Other | 0 | (6) |
Cash provided by financing activities | 569 | 313 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (42) | 39 |
Decrease in cash, cash equivalents and restricted cash | (166) | (82) |
Cash, cash equivalents and restricted cash at beginning of period | 1,293 | 1,240 |
Cash, cash equivalents and restricted cash at end of period | $ 1,127 | $ 1,158 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION General Information The accompanying unaudited Consolidated Condensed Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information, and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all information or footnotes required by GAAP for complete financial statements. As a result, this Form 10-Q should be read in conjunction with the Consolidated Financial Statements and accompanying Notes in our Form 10-K for the year ended December 31, 2017 . Management believes that the accompanying Consolidated Condensed Financial Statements reflect all adjustments, including normal recurring items, considered necessary for a fair presentation of the interim periods. We are required to make estimates and assumptions that affect the amounts reported in the Consolidated Condensed Financial Statements and accompanying Notes. Actual results could differ materially from those estimates. Certain prior year amounts in the Consolidated Condensed Financial Statements have been reclassified to conform with current year presentation. Assets and liabilities related to the sale of Embraco which met the held for sale criteria as of June 30, 2018 have been presented separately in the Consolidated Condensed Balance Sheet. See Note 15 to the Consolidated Condensed Financial Statements. We have eliminated all material intercompany transactions in our Consolidated Condensed Financial Statements. We do not consolidate the financial statements of any company in which we have an ownership interest of 50% or less, unless that company is deemed to be a variable interest entity ("VIE") of which we are the primary beneficiary. 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. Adoption of New Accounting Standards On January 1, 2018, we adopted Accounting Standards Update ("ASU") No. 2014-09, "Revenue from Contracts with Customers (Topic 606)" using the modified retrospective method. Under the modified retrospective method, we recognized the cumulative effect of initially applying the new revenue standard as an increase to the opening balance of retained earnings. This adjustment did not have a material impact on our financial statements. For additional information on the required disclosures related to the impact of adopting this standard, see Note 2 to the Consolidated Condensed Financial Statements. In October 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2016-16, "Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory," which requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, and should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings at the beginning of the period of adoption. Early adoption is permitted in the first interim period of an annual reporting period for which financial statements have not been issued. The Company adopted the accounting standard on January 1, 2018 and recognized a $56 million increase to the opening balance of retained earnings. In January 2017, the FASB issued ASU 2017-04, "Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment". The guidance in ASU 2017-04 eliminates the requirement to determine the fair value of individual assets and liabilities of a reporting unit to measure goodwill impairment. Under the amendments in the new standard, goodwill impairment testing will be performed by comparing the fair value of the reporting unit with its carrying amount and recognizing an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value. The new standard is effective for annual and interim goodwill impairment tests in fiscal years beginning after December 15, 2019, and should be applied on a prospective basis. Early adoption is permitted for annual or interim goodwill impairment testing performed after January 1, 2017. The Company elected to early adopt the accounting standard in the second quarter of 2018. For additional information related to the impact of goodwill impairment and related charges, see Note 16 to the Consolidated Condensed Financial Statements. We adopted the following standards, none of which have a material impact on our Consolidated Condensed Financial Statements: Standard Effective Date 2016-01 Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities January 1, 2018 2016-04 Liabilities-Extinguishments of Liabilities (Subtopic 405-20): Recognition of Breakage for Certain Prepaid Stored-Value Products January 1, 2018 2016-15 Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments January 1, 2018 2016-18 Statement of Cash Flows (Topic 230): Restricted Cash January 1, 2018 2017-01 Business Combinations (Topic 805): Clarifying the Definition of a Business January 1, 2018 2017-09 Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting January 1, 2018 All other newly issued and effective accounting standards during 2018 were not relevant or material to the Company. Accounting Pronouncements Issued But Not Yet Effective In February 2018, the FASB issued ASU 2018-02, "Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income". The new standard gives entities the option to reclassify to retained earnings tax effects related to items in accumulated other comprehensive income as a result of the tax reform. The new standard is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted in any interim period after issuance. The Company is currently evaluating the impact of adopting this guidance. In August 2017, the FASB issued ASU 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities". The new standard is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted in any interim period after issuance. All transition requirements and elections should be applied to hedging relationships existing (that is, hedging relationships in which the hedging instrument has not expired, been sold, terminated, or exercised or the entity has not removed the designation of the hedging relationship) on the date of adoption. The effect of adoption should be reflected as of the beginning of the fiscal year of adoption. The Company is currently evaluating the impact of adopting this guidance. In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)". The guidance in ASU 2016-02 supersedes the lease recognition requirements in ASC Topic 840, Leases (FAS 13). The new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. The ASU is required to be applied using a modified retrospective approach at the beginning of the earliest period presented. In connection with the adoption of the new lease accounting standard we have completed scoping reviews and we continue to make progress in updating business process, systems, accounting policies and internal controls and continue to execute our lease data extraction strategy. At this time, the Company is unable to reasonably estimate the expected increase in assets and liabilities on the Consolidated Condensed Balance Sheets upon adoption. The FASB has issued the following relevant standards, which are not expected to have a material impact on our Consolidated Condensed Financial Statements: Standard Effective Date 2016-13 Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments January 1, 2020 2018-07 Compensation - Stock Compensation (Topic 718): Improvements to Non-Employee Share Based Payment Accounting January 1, 2019 All other issued and not yet effective accounting standards are not relevant to the Company. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | REVENUE RECOGNITION Revenue from Contracts with Customers On January 1, 2018, we adopted Topic 606 using the modified retrospective method, as a result, we recognized the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of retained earnings. This adjustment did not have a material impact on our Consolidated Condensed Financial Statements. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting under Revenue Recognition ("Topic 605"). The adoption of Topic 606 did not have a material impact on our Consolidated Condensed Statements of Comprehensive Income (Loss) and Consolidated Condensed Balance Sheets. The adoption of Topic 606 represents a change in accounting principle that will provide financial statement readers with enhanced revenue recognition disclosures. In accordance with Topic 606, revenue is recognized when obligations under the terms of a contract with our customer are satisfied; generally this occurs with the transfer of control of our products or services. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring products or providing services. Certain customers may receive cash and/or non-cash incentives, which are accounted for as variable consideration. To achieve this core principle, the Company applies the following five steps: 1. Identify the contract with a customer A contract with a customer exists when (i) the Company enters into an agreement with a customer that defines each party's rights regarding the products or services to be transferred and identifies the payment terms related to these products or services, (ii) both parties to the contract are committed to perform their respective obligations, (iii) the contract has commercial substance, and (iv) the Company determines that collection of substantially all consideration for products or services that are transferred is probable based on the customer's intent and ability to pay the promised consideration. The Company applies judgment in determining the customer's ability and intention to pay, which is based on a variety of factors including the customer's payment history or, in the case of a new customer, published credit and financial information pertaining to the customer. 2. Identify the performance obligations in the contract Performance obligations promised in a contract are identified based on the products or services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the product or service either on its own or together with other resources that are readily available from third parties or from the Company, and are distinct in the context of the contract, whereby the transfer of the products or services is separately identifiable from other promises in the contract. To the extent a contract includes multiple promised products or services, the Company must apply judgment to determine whether promised products or services are capable of being distinct and distinct in the context of the contract. If these criteria are not met, the promised products or services are accounted for as a combined performance obligation. The Company has elected to account for shipping and handling activities as a fulfillment cost as permitted by the standard. 3. Determine the transaction price The transaction price is determined based on the consideration to which the Company will be entitled in exchange for transferring products or services to the customer. To the extent the transaction price is variable, revenue is recognized at an amount equal the consideration to which the Company expects to be entitled. This estimate includes customer sales incentives which are accounted for as a reduction to revenue and estimated using either the expected value method or the most likely amount method, depending on the nature of the program. Determining the transaction price requires significant judgment, which is discussed by revenue category in further detail below. In practice, we do not offer extended payment terms beyond one year to customers. As such, we do not adjust our consideration for financing arrangements. 4. Allocate the transaction price to performance obligations in the contract If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on a relative standalone selling price basis unless a portion of the variable consideration related to the contract is allocated entirely to a performance obligation. The Company determines standalone selling price based on the price at which the performance obligation is sold separately. 5. Recognize revenue when or as the Company satisfies a performance obligation The Company generally satisfies performance obligations at a point in time. Revenue is recognized based on the transaction price at the time the related performance obligation is satisfied by transferring a promised product or service to a customer. The impact to revenue related to prior period performance obligations in the three and six months ended June 30, 2018 is immaterial. Disaggregation of Revenue The following table presents our disaggregated revenues by revenue source. We sell products within all product categories in each operating segment. Revenues related to compressors are fully reflected in our Latin America segment. For additional information on the disaggregated revenues by geographical regions, see Note 14 to the Consolidated Condensed Financial Statements. Three Months Ended June 30, Six Months Ended June 30, Millions of dollars 2018 2018 Major product categories: Laundry $ 1,463 $ 3,025 Refrigeration 1,606 2,897 Cooking 1,089 2,138 Dishwashing 412 808 Total major product category net sales $ 4,570 $ 8,868 Compressors 285 581 Spare parts and warranties 249 522 Other 36 80 Total net sales $ 5,140 $ 10,051 Major Product Category Sales Whirlpool Corporation manufactures and markets a full line of home appliances and related products and services. Our major product categories include the following: refrigeration, laundry, cooking, and dishwashing. The refrigeration product category includes refrigerators, freezers, ice makers and refrigerator water filters. The laundry product category includes laundry appliances and related laundry accessories. The cooking category includes cooking appliances and other small domestic appliances. The dishwashing product category includes dishwasher appliances and related accessories. In addition, we also produce hermetic compressors for refrigeration systems which is not considered a major product category. For product sales and compressors, we transfer control and recognize a sale when we ship the product from our manufacturing facility to our customer or when the customer receives the product based upon agreed shipping terms. Each unit sold is considered an independent, unbundled performance obligation. We do not have any additional performance obligations other than product sales that are material in the context of the contract. The amount of consideration we receive and revenue we recognize varies due to sales incentives and returns we offer to our customers. When we give our customers the right to return eligible products, we reduce revenue for our estimate of the expected returns which is primarily based on an analysis of historical experience. Spare Parts & Warranties Spare parts are primarily sold to parts distributors and retailers, with a small number of sales to end consumers. For spare part sales, we transfer control and recognize a sale when we ship the product to our customer or when the customer receives product based upon agreed shipping terms. Each unit sold is considered an independent, unbundled performance obligation. We do not have any additional performance obligations other than spare part sales that are material in the context of the contract. The amount of consideration we receive and revenue we recognize varies due to sales incentives and returns we offer to our customers. When we give our customers the right to return eligible products, we reduce revenue for our estimate of the expected returns which is primarily based on an analysis of historical experience. Warranties are classified as either assurance type or service type warranties. A warranty is considered an assurance type warranty if it provides the consumer with assurance that the product will function as intended. A warranty that goes above and beyond ensuring basic functionality is considered a service type warranty. The Company offers certain limited warranties that are assurance type warranties and extended service arrangements that are service type warranties. Assurance type warranties are not accounted for as separate performance obligations under the revenue model. If a service type warranty is sold with a product or separately, revenue is recognized over the life of the warranty. The Company evaluates warranty offerings in comparison to industry standards and market expectations to determine appropriate warranty classification. Industry standards and market expectations are determined by jurisdictional laws, competitor offerings and customer expectations. Market expectations and industry standards can vary based on product type and geography. The Company primarily offers assurance type warranties. Whirlpool sells certain extended service arrangements separately from the sale of products. Whirlpool acts as a sales agent under some of these arrangements whereby the Company receives a fee that is recognized as revenue upon the sale of the extended service arrangement. The Company is also the principal for certain extended service arrangements. Revenue related to these arrangements is recognized ratably over the contract term. Other Revenue Other revenue sources include subscription arrangements and licenses as described below. The Company has a water subscription business in our Latin America segment which provides the customer with a water filtration system that is delivered to the consumer's home. Our water subscription contracts represent a performance obligation that is satisfied over time and revenue is recognized as the performance obligation is completed. The installation and maintenance of the water filtration system are not distinct services in the context of the contract (i.e., the customer views all activities associated with the arrangement as one singular value proposition). The contract term is generally less than one year for these arrangements and revenue is recognized based on the monthly invoiced amount which directly corresponds to the value of our performance completed to date. We license our brands in arrangements that do not include other performance obligations. Whirlpool licensing provides a right of access to the Company's intellectual property throughout the license period. Whirlpool recognizes licensing revenue over the life of the license contract as the underlying sale or usage occurs. As a result, we recognize revenue for these contracts at the amount which directly corresponds to the value provided to the customer. Costs to Obtain or Fulfill a Contract We do not capitalize costs to obtain a contract because a nominal number of contracts have terms that extend beyond one year. The Company does not have a significant amount of capitalized costs related to fulfillment. Sales Tax and Other Non Income Taxes The Company is subject to certain non-income taxes in certain jurisdictions including but not limited to sales tax, value added tax, excise tax and other taxes we collect concurrent with revenue-producing activities that are excluded from the transaction price, and therefore, excluded from revenue. Financial Statement Impact of Adopting Topic 606 On January 1, 2018, we adopted Topic 606 using the modified retrospective method. 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. Prior to the adoption of Topic 606, the excise taxes in our Brazilian operations were reflected in revenue. In accordance with Topic 606, we made a policy election to exclude non-income taxes from the transaction price. As a result, these credits in 2018 are reflected in other income. Based on our evaluation, we determined no significant changes are required to our business processes, systems and controls to effectively report revenue recognition under the new standard. Adoption of the new standard does not materially change the timing or amount of revenue recognized in our Consolidated Condensed Financial Statements. |
Cash, Cash Equivalents and Rest
Cash, Cash Equivalents and Restricted Cash | 6 Months Ended |
Jun. 30, 2018 | |
Cash and Cash Equivalents [Abstract] | |
Cash, Cash Equivalents and Restricted Cash | CASH, CASH EQUIVALENTS AND RESTRICTED CASH The following table provides a reconciliation of cash, cash equivalents and restricted cash as reported within our Consolidated Condensed Statements of Cash Flows: Six Months Ended June 30, Millions of dollars 2018 2017 Cash and cash equivalents as presented in our Consolidated Condensed Balance Sheets 1,057 1,041 Restricted cash included in prepaid and other current assets (1) 47 46 Restricted cash included in other noncurrent assets (1) 23 71 Cash, cash equivalents and restricted cash as presented in our Consolidated Condensed Statements of Cash Flows $ 1,127 $ 1,158 (1) Change in restricted cash resulted in realization of foreign currency translation adjustments of $1 million and ( $3 million ), respectively, for the six months ended June 30, 2018 and 2017. December 31, Millions of dollars 2017 2016 Cash and cash equivalents as presented in our Consolidated Condensed Balance Sheets 1,196 1,085 Restricted cash included in prepaid and other current assets 48 45 Restricted cash included in other noncurrent assets 49 110 Cash, cash equivalents and restricted cash as presented in our Consolidated Condensed Statements of Cash Flows $ 1,293 $ 1,240 Restricted cash can only be used to fund capital expenditures and technical resources to enhance Whirlpool China's research and development and working capital, as required by the terms of the Whirlpool China (formerly Hefei Sanyo) acquisition completed in October 2014. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2018 | |
Inventory, Net [Abstract] | |
Inventories | INVENTORIES The following table summarizes our inventory for the periods presented: Millions of dollars June 30, 2018 December 31, 2017 Finished products $ 2,524 $ 2,374 Raw materials and work in process 634 725 3,158 3,099 Less: excess of FIFO cost over LIFO cost (126 ) (111 ) Total inventories $ 3,032 $ 2,988 LIFO inventories represented 43% and 38% of total inventories at June 30, 2018 and December 31, 2017 , respectively. |
Property, Plant & Equipment
Property, Plant & Equipment | 6 Months Ended |
Jun. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant & Equipment | PROPERTY, PLANT & EQUIPMENT The following table summarizes our property, plant and equipment as of June 30, 2018 and December 31, 2017 : Millions of dollars June 30, 2018 December 31, 2017 Land $ 117 $ 123 Buildings 1,655 1,789 Machinery and equipment 7,750 8,946 Accumulated depreciation (6,095 ) (6,825 ) Property, plant and equipment, net $ 3,427 $ 4,033 During the six months ended June 30, 2018 , we disposed of buildings, machinery and equipment no longer in use with a net book value of $14 million and certain land use rights were transferred to the China government resulting in a $27 million gain recorded in cost of products sold. |
Financing Arrangements
Financing Arrangements | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Financing Arrangements | FINANCING ARRANGEMENTS Debt Offering On November 9, 2017, Whirlpool Finance Luxembourg S.à. r.l., an indirect, wholly-owned finance subsidiary of Whirlpool Corporation, completed a debt offering of €600 million (approximately $699 million as of the date of issuance) principal amount of 1.100% notes due in 2027. The Company has fully and unconditionally guaranteed these notes. The notes contain covenants that limit Whirlpool Corporation's 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.333-203704-1) filed with the Securities and Exchange Commission on October 25, 2016. Debt Repayment On April 26, 2018, $363 million of 4.50% senior notes matured and were repaid. On November 1, 2017, $300 million of 1.65% senior notes matured and were repaid. On March 1, 2017, $250 million of 1.35% senior notes matured and were repaid. Term Loan Agreements On June 5, 2018, the Company and its indirect wholly-owned subsidiary, Whirlpool EMEA Finance S.à. r.l., entered into a Term Loan Agreement (the "Whirlpool EMEA Finance Term Loan") with Wells Fargo Bank, National Association, as Administrative Agent, and certain other financial institutions. Wells Fargo Securities, LLC acted as Sole Lead Arranger and Sole Bookrunner for the Whirlpool EMEA Finance Term Loan. The Whirlpool EMEA Finance Term Loan Agreement provides for an aggregate lender commitment of €600 million (approximately $703 million as of June 5, 2018) and is recorded in long-term debt of our Consolidated Condensed Balance Sheets. The Whirlpool EMEA Finance Term Loan has a maturity date of December 1, 2019, and contains an unconditional Company guarantee for repayment of amounts borrowed by Whirlpool EMEA Finance S.à. r.l. under the term loan facility. The Company and Whirlpool EMEA Finance S.à. r.l. also agree to repay outstanding loan amounts with the proceeds received from any future capital markets transaction involving Whirlpool EMEA Finance S.à. r.l. as issuer or the Company as issuer or guarantor. The interest and fee rates payable with respect to the term loan facility based on the Company's current debt rating are as follows: (1) the spread over EURIBOR is 1.00% ; (2) the spread over prime is 0.125% ; and (3) the ticking fee is 0.125% , as of the date hereof. The Term Loan Agreement contains customary covenants and warranties including, among other things, a Company debt to capitalization ratio of less than or equal to 0.60 to 1.00 as of the last day of each fiscal quarter, and a Company 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 the Company's 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 to the Company or other subsidiaries; and (vi) enter into agreements restricting the creation of liens on its assets. The covenants also provide that Whirlpool EMEA Finance S.à. r.l must at all times remain a wholly-owned subsidiary of the Company. On April 23, 2018 the Company entered into, and on May 14, 2018 the Company amended, a Term Loan Agreement (the "Term Loan Agreement") by and among the Company, Citibank, N.A., as Administrative Agent, JPMorgan Chase Bank, N.A. as Syndication Agent, and certain other financial institutions. Citibank, N.A., JPMorgan Chase Bank, N.A., BNP Paribas Securities Corp., Mizuho Bank, Ltd., and Wells Fargo Securities, LLC acted as Joint Lead Arrangers and Joint Bookrunners for the Term Loan Agreement. The Term Loan Agreement provides for an aggregate lender commitment of $1.0 billion and is recorded in notes payable of our Consolidated Condensed Balance Sheets. The Term Loan Agreement has a maturity date of April 22, 2019, which date may be extended by the Company, in its discretion, prior to the maturity date for an additional six months. The proceeds of the Term Loan Agreement were used to fund accelerated share repurchases through a modified Dutch auction tender offer. The interest and fee rates payable with respect to the term loan facility based on the Company's current debt rating are as follows: (1) the spread over LIBOR is 1.125% ; (2) the spread over prime is 0.125% ; and (3) the ticking fee is 0.125% , as of the date hereof. The Term Loan Agreement contains customary covenants and warranties including, among other things, a debt to capitalization ratio of less than or equal to 0.60 to 1.00 as of the last day of 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 the Company's 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 to the Company or other subsidiaries; and (vi) enter into agreements restricting the creation of liens on its assets. Credit Facilities On September 27, 2017, Whirlpool Corporation exercised its commitment increase and term extension rights under the Third Amended and Restated Long-Term Credit Agreement (the "Amended Long-Term Facility") by and among the Company, certain other borrowers, the lenders referred to therein, JPMorgan Chase Bank, N.A. as Administrative Agent, and Citibank, N.A., as Syndication Agent. In connection with this exercise, the Company entered into a Consent to Commitment Increase agreement with the Administrative Agent , which increases aggregate borrowing capacity under the Amended Long-Term Facility from $2.5 billion to $3.0 billion , and the Administrative Agent received extension request consents from a majority of lenders, which extends the termination date of the Amended Long-Term Facility by one year, to May 17, 2022. All other terms of the Amended Long-Term Facility remain unchanged. The interest and fee rates payable with respect to the Amended Long-Term Facility based on our current debt rating are as follows: (1) the spread over LIBOR is 1.125% ; (2) the spread over prime is 0.125% ; and (3) the unused commitment fee is 0.125% . The Amended Long-Term Facility contains customary covenants and warranties including, among other things, a debt to capitalization ratio of less than or equal to 0.60 to 1.00 as of the last day of 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 our 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 to the Company or other subsidiaries; and (vi) enter into agreements restricting the creation of liens on our assets. In addition to the committed $3.0 billion Amended Long-Term Facility, we have a committed European facility and committed credit facilities in Brazil. The European facility provides borrowings up to €250 million (approximately $292 million at June 30, 2018 and $300 million at December 31, 2017 ), maturing in 2019. The committed credit facilities in Brazil provide borrowings up to 1.0 billion Brazilian reais (approximately $259 million at June 30, 2018 and $302 million at December 31, 2017 ) , maturing through 2019. We had no borrowings outstanding under the committed credit facilities at June 30, 2018 or December 31, 2017 . Notes Payable Notes payable, which consist of short-term borrowings payable to banks or commercial paper, are generally used to fund working capital requirements. Additionally, the proceeds of the Term Loan Agreement were used to fund accelerated share repurchases through a modified Dutch auction tender offer. 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 June 30, 2018 and December 31, 2017 . Millions of dollars June 30, 2018 December 31, 2017 Commercial paper $ 537 $ 401 Short-term borrowings due to banks 1,259 49 Total notes payable $ 1,796 $ 450 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Embraco Antitrust Matters Beginning in February 2009, our compressor business headquartered in Brazil ("Embraco") was notified of antitrust investigations of the global compressor industry by government authorities in various jurisdictions. Embraco has resolved government investigations in various jurisdictions as well as all related civil lawsuits in the United States and all agreed payments relating to such resolutions have been made. Embraco also has resolved certain other claims and certain claims remain pending. At June 30, 2018 , a nominal amount remains accrued. We continue to defend these actions and take other steps to minimize our potential exposure. The final outcome and impact of these matters are subject to many variables, and cannot be predicted. 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 statements. 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. Prior to the adoption of Topic 606, the excise taxes in our Brazilian operations were reflected in revenue. In accordance with Topic 606, we made a policy election to exclude non-income taxes from the transaction price. As a result, these credits in 2018 are reflected in other income. For additional information, see Note 2 of the Consolidated Condensed Financial Statements. 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. 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. In the third quarter of 2017, the Brazilian Supreme Court ruled that the reinstituted index should be given retroactive effect for the July 2009 to December 2013 period, which decision has been appealed by the Brazilian government. Based on this ruling, we are entitled to recognize $72 million in additional credits. We monetized $42 million of BEFIEX credits during the twelve months ended December 31, 2017 and $30 million during the six months ended June 30, 2018. As of June 30, 2018, no BEFIEX credits remain to be monetized. Our Brazilian operations have received tax assessments for income and social contribution taxes associated with certain monetized BEFIEX credits. We do not believe BEFIEX credits are subject to income or social contribution taxes. We are disputing these tax assessment matters in various courts and intend to vigorously defend our positions. We have not provided for income or social contribution taxes on these BEFIEX credits and, based on the opinions of tax and legal advisors, we have not accrued any amount related to these assessments as of June 30, 2018 . 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 1.9 billion Brazilian reais (approximately $493 million as of June 30, 2018 ). 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 taxpayers 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 245 million Brazilian reais (approximately $64 million as of June 30, 2018 ), reflecting interest and penalties to date. We are disputing these assessments and we intend to vigorously defend our position. Among other arguments, the government's assessment in this case relies heavily on its arguments regarding taxability of BEFIEX credits for certain years, which we are disputing in one of the BEFIEX government assessment cases cited in the prior paragraph. 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 June 30, 2018 , 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 193 million Brazilian reais (approximately $50 million as of June 30, 2018 ). 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 no t accrued any amount related to these assessments as of June 30, 2018 . 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, and other matters, which are at various stages of review in numerous administrative and judicial proceedings. 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. We also filed legal actions to recover certain social integration and social contribution taxes paid over gross sales including ICMS receipts, which is a form of Value Added Tax in Brazil. During 2017, we sold the rights to certain portions of this litigation to a third party for 90 million Brazilian reais (approximately $27 million as of December 31, 2017). Approximately $230 million in face value of credits related to this litigation remain. While the Company's recovery with respect to the remaining litigation may be material, there is substantial uncertainty about both the amount and timing of any recovery. No amounts have been recorded related to these items. 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 statements in any particular reporting period. Competition Investigation In 2013, the French Competition Authority ("FCA") commenced an investigation of appliance manufacturers and retailers in France. The investigation includes a number of manufacturers, including the Whirlpool and Indesit operations in France. The Company is cooperating with this investigation. On June 26, 2018, Whirlpool France SAS, a subsidiary of Whirlpool, reached an agreement with the staff of the FCA to settle the first part of its investigation, which relates to a 14 -month period during parts of 2006-07 and 2008-09. The agreement establishes a settlement range between €95 million to €115 million for Indesit and Whirlpool legacy operations in France. The settlement must be approved by the FCA's college of commissioners, which also determines the final settlement amount within the agreed range. As no amount within the range of settlement was determined to be more likely than any other, a reserve of €95 million (approximately $111 million ) was recorded in interest and sundry (income) expense as of June 30, 2018 . The Company expects to pay the final settlement amount in 2019, following final approval by the FCA's college of commissioners. The second part of the FCA investigation, which is expected to focus primarily on manufacturer interactions with retailers, is ongoing but at a less advanced stage. The Company is cooperating with this investigation. Although it is currently not possible to assess the impact, if any, this matter may have on our financial statements, the resolution of the second part of the FCA investigation could have a material adverse effect on our financial statements in any particular reporting period. Other Litigation We are currently vigorously defending a number of lawsuits in federal and state courts in the U.S. related to the manufacture and sale of our products which include class action allegations, and have 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, false advertising, fraud, and violation of federal and state regulations, including consumer protection laws. In general, we do not have insurance coverage for class action lawsuits. We are also involved in various other legal actions in the U.S. 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 statements. Product Warranty and Legacy Product Corrective Action Reserves Product warranty reserves are included in other current and other noncurrent liabilities in our Consolidated Condensed Balance Sheets. The following table summarizes the changes in total product warranty and legacy product warranty liability reserves for the periods presented: Product Warranty Legacy Product Warranty Total Millions of dollars 2018 2017 2018 2017 2018 2017 Balance at January 1 $ 277 $ 251 $ — $ 69 $ 277 $ 320 Issuances/accruals during the period 145 158 — 1 145 159 Settlements made during the period/other (147 ) (154 ) — (47 ) (147 ) (201 ) Balance at June 30 $ 275 $ 255 $ — $ 23 $ 275 $ 278 Current portion $ 200 $ 189 $ — $ 23 $ 200 $ 212 Non-current portion 75 66 — — 75 66 Total $ 275 $ 255 $ — $ 23 $ 275 $ 278 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. These dryer production platforms were developed prior to Whirlpool's acquisition of Indesit in October 2014. During 2017, the corrective action was substantially complete and any remaining charges related to the action were recorded under product warranty for 2018. 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 June 30, 2018 and December 31, 2017 , the guaranteed amounts totaled $88 million and $284 million , respectively. Our subsidiary insures against a significant portion of this credit risk for these guarantees, under normal operating conditions, through policies purchased from high-quality underwriters. We provide guarantees of indebtedness and lines of credit for various consolidated subsidiaries. The maximum contractual amount of indebtedness and credit facilities available under these lines for consolidated subsidiaries totaled $3.7 billion and $2.8 billion as of June 30, 2018 and December 31, 2017 , respectively. Our total outstanding bank indebtedness under guarantees was $53 million at June 30, 2018 and $49 million at December 31, 2017 . |
Pension and Other Postretiremen
Pension and Other Postretirement Benefit Plans | 6 Months Ended |
Jun. 30, 2018 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Benefit Plans | PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS The following table summarizes the components of net periodic pension cost and the cost of other postretirement benefits for the periods presented: Three Months Ended June 30, United States Foreign Other Postretirement Millions of dollars 2018 2017 2018 2017 2018 2017 Service cost $ — $ — $ 2 $ 2 $ 1 $ 2 Interest cost 29 33 6 6 3 4 Expected return on plan assets (42 ) (44 ) (9 ) (8 ) — — Amortization: Actuarial loss 13 13 2 1 — — Prior service credit — — — — (2 ) (3 ) Settlement and curtailment (gain) loss — — (3 ) 1 — — Net periodic benefit cost (credit) $ — $ 2 $ (2 ) $ 2 $ 2 $ 3 Six Months Ended June 30, United States Foreign Other Postretirement Millions of dollars 2018 2017 2018 2017 2018 2017 Service cost $ 1 $ 1 $ 3 $ 3 $ 3 $ 4 Interest cost 59 67 12 11 7 8 Expected return on plan assets (85 ) (88 ) (17 ) (15 ) — — Amortization: Actuarial loss 26 25 5 3 — — Prior service credit (1 ) (1 ) — — 1 (7 ) Settlement and curtailment (gain) loss — — (3 ) 1 — — Net periodic cost $ — $ 4 $ — $ 3 $ 11 $ 5 The following table summarizes the net periodic cost recognized in operating profit and interest and sundry (income) expense for the periods presented: Three Months Ended June 30, United States Foreign Other Postretirement Millions of dollars 2018 2017 2018 2017 2018 2017 Operating profit (loss) $ — $ — $ 2 $ 2 $ 1 $ 2 Interest and sundry (income) expense — 2 (4 ) — 1 1 Net periodic benefit cost (credit) $ — $ 2 $ (2 ) $ 2 $ 2 $ 3 Six Months Ended June 30, United States Foreign Other Postretirement Millions of dollars 2018 2017 2018 2017 2018 2017 Operating profit (loss) $ 1 $ 1 $ 3 $ 3 $ 3 $ 4 Interest and sundry (income) expense (1 ) 3 (3 ) — 8 1 Net periodic benefit cost (credit) $ — $ 4 $ — $ 3 $ 11 $ 5 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 approximately $87 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 and changes to the plan are not permitted. We disagree with plaintiffs' assertion and are continuing to vigorously defend our position, including through any necessary appeal process. However, an unfavorable final result 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. |
Hedges and Derivative Financial
Hedges and Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [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, fair value or net investment 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 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 this 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 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 June 30, 2018 and December 31, 2017 , there were no outstanding interest rate 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. Net Investment Hedging The following table summarizes our foreign currency denominated debt and foreign exchange forwards/options designated as net investment hedges at June 30, 2018 and December 31, 2017 : Notional (Local) Notional (USD) Current Maturity Instrument 2018 2017 2018 2017 Senior note - 0.625% € 500 € 500 $ 583 $ 600 March 2020 Commercial Paper € 150 € 150 $ 175 $ 180 July 2018 Foreign exchange forwards/options MXN 7,200 MXN 7,200 $ 366 $ 366 August 2022 For instruments that are designated and qualify as a net investment hedge, the effective portion of the instruments' gain or loss is reported as a component of other comprehensive income (OCI) and recorded in accumulated other comprehensive loss. The gain or loss will be subsequently reclassified into net earnings when the hedged net investment is either sold or substantially liquidated. The remaining change in fair value of the hedge instruments represents the ineffective portion, which is immediately recognized in interest and sundry (income) expense on our consolidated statements of income. As of June 30, 2018 and December 31, 2017 , there was no ineffectiveness on hedges designated as net investment hedges. The following table summarizes our outstanding derivative contracts and their effects on our Consolidated Condensed Balance Sheets at June 30, 2018 and December 31, 2017 : Fair Value of Type (1) Notional Amount Hedge Assets Hedge Liabilities Maximum Term (Months) Millions of dollars 2018 2017 2018 2017 2018 2017 2018 2017 Derivatives accounted for as hedges Foreign exchange forwards/options $ 3,135 $ 3,113 $ 57 $ 55 $ 83 $ 157 (CF/NI) 50 56 Commodity swaps/options 274 269 12 29 9 1 (CF) 30 36 Total derivatives accounted for as hedges $ 69 $ 84 $ 92 $ 158 Derivatives not accounted for as hedges Foreign exchange forwards/options $ 3,810 $ 3,390 $ 33 $ 58 $ 55 $ 50 N/A 27 33 Commodity swaps/options 1 1 — — — — N/A 0 5 Total derivatives not accounted for as hedges 33 58 55 50 Total derivatives $ 102 $ 142 $ 147 $ 208 Current $ 72 $ 89 $ 66 $ 81 Noncurrent 30 53 81 127 Total derivatives $ 102 $ 142 $ 147 $ 208 (1) Derivatives accounted for as hedges are considered either cash flow (CF) or net investment (NI) hedges. The following tables summarize the effects of derivative instruments on our Consolidated Condensed Statements of Comprehensive Income for the three and six months ended as follows: Three Months Ended June 30, Gain (Loss) Gain (Loss) Reclassified from OCI into Earnings (Effective Portion) (1) Cash Flow Hedges - Millions of dollars 2018 2017 2018 2017 Foreign exchange forwards/options $ 76 $ (50 ) $ 44 $ (37 ) (a) Commodity swaps/options (5 ) 2 10 8 (a) Interest rate derivatives — — (1 ) — (b) Net Investment Hedges Foreign currency 57 (40 ) — — $ 128 $ (88 ) $ 53 $ (29 ) Three Months Ended June 30, Gain (Loss) Recognized on Derivatives not Accounted for as Hedges (2) Derivatives not Accounted for as Hedges - Millions of dollars 2018 2017 Foreign exchange forwards/options $ 123 $ (41 ) Six Months Ended June 30, Gain (Loss) Gain (Loss) Reclassified from OCI into Earnings (Effective Portion) (1) Cash Flow Hedges - Millions of dollars 2018 2017 2018 2017 Foreign exchange $ 76 $ (60 ) $ 42 $ (42 ) (a) Commodity swaps/options (15 ) 17 23 18 (a) Interest rate derivatives — (1 ) — (b) Net Investment Hedges Foreign currency 5 (40 ) — — $ 66 $ (83 ) $ 64 $ (24 ) Six Months Ended June 30, Gain (Loss) Recognized on Derivatives not Accounted for as Hedges (2) Derivatives not Accounted for as Hedges - Millions of dollars 2018 2017 Foreign exchange forwards/options $ 63 $ (79 ) (1) Gains and losses reclassified from accumulated OCI and recognized in income are recorded in (a) cost of products sold or (b) interest expense. (2) Mark to market gains and losses recognized in income are recorded in interest and sundry (income) expense. For cash flow hedges, the amount of ineffectiveness recognized in interest and sundry (income) expense was nominal for the periods ended June 30 , 2018 and 2017 . There were no hedges designated as fair value for the periods ended June 30 , 2018 and 2017 . 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 $45 million at June 30, 2018 . |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS Fair value is measured based on an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions market participants would use in pricing an asset or liability. Assets and liabilities measured at fair value are based on a market valuation approach using prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. As a basis for considering such assumptions, a three-tiered fair value hierarchy is established, which prioritizes the inputs used in measuring fair value as follows: (Level 1) observable inputs such as quoted prices in active markets; (Level 2) inputs, other than the quoted prices in active markets that are observable, either directly or indirectly; and (Level 3) unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. The non-recurring fair values represent only those assets whose carrying values were adjusted to fair value during the reporting period. See Note 16 to the Consolidated Condensed Financial Statements for additional information on the goodwill and other intangibles impairment. The following tables summarize the valuation of our assets and liabilities measured at fair value on a recurring and non-recurring basis at June 30, 2018 and December 31, 2017 are as follows: Fair Value Millions of dollars Total Cost Basis Level 1 Level 2 Total Measured at fair value on a recurring basis: 2018 2017 2018 2017 2018 2017 2018 2017 Money market funds (1) $ 396 $ 255 $ 8 $ 2 $ 388 $ 253 $ 396 $ 255 Net derivative contracts — — — — (45 ) (66 ) (45 ) (66 ) Available for sale investments 7 6 20 22 — — 20 22 Held-to-maturity investments (2) — 60 — — — 60 — 60 (1) Money market funds are comprised primarily of government obligations or time deposits with banks and other first tier obligations. (2) Held-to-maturity investments are primarily comprised of certificates of deposit with an approximate maturity term of less than six months. Fair Value Millions of dollars Level 3 Measured at fair value on a non-recurring basis: 2018 2017 Assets: Goodwill (3) $ 315 $ — Indefinite-lived intangible assets (4) 384 — Definite-lived intangible assets (5) — — Total level 3 assets $ 699 $ — (3) Goodwill with a carrying amount of $894 million was written down to a fair value of $315 million resulting in a goodwill impairment charge of $579 million . (4) Indefinite-lived intangible assets with a carrying amount of approximately $492 million were written down to a fair value of $384 million resulting in an impairment charge of $108 million . (5) A definite-lived intangible asset with a carrying amount of approximately $60 million was written down to a fair value of $0 million resulting in an impairment charge of $60 million . Goodwill We have four reporting units for which we assess for impairment. We use a discounted cash flow analysis to determine fair value and consistent projected financial information in our analysis of goodwill and intangible assets. The discounted cash flow analysis for the quantitative impairment assessment for the EMEA reporting unit utilized a discount rate of 12% . Based on the quantitative assessment performed, the carrying value of the EMEA reporting unit exceeded its fair value resulting in a goodwill impairment charge of $579 million during the second quarter of 2018. Other Intangible Assets The relief-from-royalty method for the quantitative impairment assessment for other intangible assets in the EMEA reporting unit utilized discount rates ranging from 11.5% - 16% and royalty rates ranging from 1.5% - 3.5% . Based on the quantitative impairment assessment performed, the carrying value of certain other intangible assets, primarily the Indesit and Hotpoint* brands, exceeded their fair value, resulting in an impairment charge of $168 million during the second quarter of 2018. See Note 16 to the Consolidated Condensed Financial Statements for additional information. *Whirlpool ownership of the Hotpoint brand in the EMEA and Asia Pacific regions is not affiliated with the Hotpoint brand sold in the Americas. Other Fair Value Measurements The fair value of long-term debt (including current maturities) was $5.04 billion and $4.95 billion at June 30, 2018 and December 31, 2017 , respectively, and was estimated using discounted cash flow analysis based on incremental borrowing rates for similar types of borrowing arrangements (Level 2 input). |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2018 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | STOCKHOLDERS' EQUITY Other Comprehensive Income (Loss) The following table summarizes our other comprehensive income (loss) and related tax effects for the periods presented: Three Months Ended June 30, 2018 2017 Millions of dollars Pre-tax Tax Effect Net Pre-tax Tax Effect Net Currency translation adjustments $ (196 ) $ (7 ) $ (203 ) $ 2 $ — $ 2 Cash flow and net investment hedges 42 (11 ) 31 (28 ) 10 (18 ) Pension and other postretirement benefits plans 13 (4 ) 9 11 (6 ) 5 Available for sale securities — — — 2 — 2 Other comprehensive income (loss) (141 ) (22 ) (163 ) (13 ) 4 (9 ) Less: Other comprehensive income (loss) available to noncontrolling interests — — — — — — Other comprehensive income (loss) available to Whirlpool $ (141 ) $ (22 ) $ (163 ) $ (13 ) $ 4 $ (9 ) Six Months Ended June 30, 2018 2017 Millions of dollars Pre-tax Tax Effect Net Pre-tax Tax Effect Net Currency translation adjustments $ (170 ) $ (6 ) $ (176 ) $ 76 $ — $ 76 Cash flow and net investment hedges (22 ) 5 (17 ) (25 ) 7 (18 ) Pension and other postretirement benefits plans 50 (15 ) 35 20 (7 ) 13 Available for sale securities — — — — — — Other comprehensive income (loss) (142 ) (16 ) (158 ) 71 — 71 Less: Other comprehensive income (loss) available to noncontrolling interests 1 — 1 (1 ) — (1 ) Other comprehensive income (loss) available to Whirlpool $ (143 ) $ (16 ) $ (159 ) $ 72 $ — $ 72 Reclassifications Out of Accumulated Other Comprehensive Income (Loss) The following table provides the reclassification adjustments out of accumulated other comprehensive income (loss), by component, which was included in net earnings for the three and six months ended June 30, 2018 : Three Months Ended Six Months Ended Millions of dollars (Gain) Loss Reclassified (Gain) Loss Reclassified Classification in Earnings Cash flow hedges, pre-tax $ (14 ) $ (19 ) Cost of products sold Cash flow hedges, pre-tax (39 ) (45 ) Interest and sundry (income) expense Pension and postretirement benefits, pre-tax 10 28 Interest and sundry (income) expense The following table summarizes the changes in stockholders' equity for the period presented: Millions of dollars Total Whirlpool Common Stockholders Noncontrolling Interests Stockholders' equity, December 31, 2017 $ 5,128 $ 4,198 $ 930 Net earnings (loss) (545 ) (563 ) 18 Other comprehensive income (loss) (158 ) (159 ) 1 Comprehensive income (loss) (703 ) (722 ) 19 Adjustment to beginning retained earnings (1) 72 72 — Adjustment to beginning accumulated other comprehensive loss (17 ) (17 ) — Common stock — — — Treasury stock (1,001 ) (1,001 ) — Additional paid-in capital 27 27 — Dividends declared on common stock (162 ) (159 ) (3 ) Stockholders' equity, June 30, 2018 $ 3,344 $ 2,398 $ 946 (1) Increase to beginning retained earnings is due to the following accounting standard adoptions: ASU 2014-09 [increase of approximately $0.4 million ], ASU 2016-01 [increase of approximately $17 million ] and ASU 2016-16 [increase of approximately $56 million ]. For additional information regarding the adoption of these accounting standards, see Note 1 of the Consolidated Condensed Financial Statements. Net Earnings per Share Diluted net earnings per share of common stock include the dilutive effect of stock options and other share-based compensation plans. Basic and diluted net earnings per share of common stock for the periods presented were calculated as follows: Three Months Ended June 30, Six Months Ended June 30, Millions of dollars and shares 2018 2017 2018 2017 Numerator for basic and diluted earnings per share - Net earnings (loss) available to Whirlpool $ (657 ) $ 189 $ (563 ) $ 342 Denominator for basic earnings per share - weighted-average shares 69.1 74.0 70.1 74.4 Effect of dilutive securities – share-based compensation — 1.1 — 1.2 Denominator for diluted earnings per share – adjusted weighted-average shares 69.1 75.1 70.1 75.6 Anti-dilutive stock options/awards excluded from earnings per share 2.0 0.5 1.9 0.6 Share Repurchase Program On July 25, 2017, our Board of Directors authorized a share repurchase program of up to $2 billion . During the six months ended June 30, 2018 , we repurchased 6,269,591 shares under this share repurchase program at an aggregate price of approximately $1 billion . As of June 30, 2018 , there were approximately $950 million in remaining funds authorized under this program. Share repurchases are made from time to time on the open market as conditions warrant. These programs do not obligate us to repurchase any of our shares and they have no expiration date. |
Restructuring Charges
Restructuring Charges | 6 Months Ended |
Jun. 30, 2018 | |
Restructuring Charges [Abstract] | |
Restructuring Charges | RESTRUCTURING CHARGES We periodically take action to improve operating efficiencies, typically in connection with business acquisitions or changes in the economic environment. Our footprint and headcount reductions and organizational integration actions relate to discrete, unique restructuring events, primarily reflected in the following plans: 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 $209 million as of June 30, 2018 ) in employee-related costs, €25 million (approximately $29 million as of June 30, 2018 ) in asset impairment costs, and €37 million (approximately $43 million as of June 30, 2018 ) in other associated costs in connection with these actions. We expect these actions will be complete in 2019. We estimate €209 million (approximately $244 million as of June 30, 2018 ) of the estimated €241 million (approximately $281 million as of June 30, 2018 ) total cost will result in cash expenditures. As of June 30, 2018 , €45 million (approximately $52 million ) remains to be expensed. On January 24, 2017, the Company and certain of its subsidiary companies began consultations with certain works councils and other regulatory agencies in connection with the Company's proposal to restructure its EMEA dryer manufacturing operations. Company management authorized the initiation of such consultations on December 30, 2016. These actions are expected to result in changing the operations at the Company's Yate, U.K. facility to focus on manufacturing for U.K. consumer needs only; production ended in 2018 in Amiens, France; and concentrating the production of dryers for non-U.K. consumer needs in Lodz, Poland. The Company anticipates that approximately 500 positions would be impacted by these actions. The Company expects these actions to be substantially complete in 2018. The Company estimates that it will incur approximately €59 million (approximately $69 million as of June 30, 2018 ) in employee-related costs, approximately €11 million (approximately $13 million as of June 30, 2018 ) in asset impairment costs, and approximately €10 million (approximately $12 million as of June 30, 2018 ) in other associated costs in connection with these actions. The Company estimates that approximately €69 million (approximately $80 million as of June 30, 2018 ) of the estimated €79 million (approximately $92 million as of June 30, 2018 ) total cost will result in future cash expenditures. As of June 30, 2018 , €11 million (approximately $13 million ) remains to be expensed. In the fourth quarter of 2017, the Company announced an initiative to reduce fixed overhead costs by $150 million , which was implemented in the first half of 2018. This initiative primarily impacts our overhead costs, including salary headcount and third-party services. The Company has implemented certain restructuring actions pursuant to this initiative. On January 10, 2018, the Company announced certain restructuring actions related to streamlining operations in our Embraco compressor business. These actions are expected to result in ceasing operations and ending production at Embraco's Riva Presso Chieri, Turin, Italy facility in 2018, and concentrating the assembly and manufacturing of compressors in Embraco's other manufacturing centers. The Company currently anticipates that approximately 500 positions are impacted by these actions. The Company expects these actions to be substantially complete in 2018. The Company estimates that it will incur up to approximately €52 million (approximately $61 million as of June 30, 2018 ) in employee-related costs, approximately €20 million (approximately $23 million as of June 30, 2018 ) in asset impairment costs and approximately €5 million (approximately $6 million as of June 30, 2018 ) in other associated costs in connection with these actions. The Company estimates that approximately €56 million (approximately $65 million as of June 30, 2018 ) of the estimated €77 million (approximately $90 million as of June 30, 2018 ) total cost will result in future cash expenditures. As of June 30, 2018 , €9 million (approximately $11 million as of June 30, 2018 ) remains to be expensed. The following table summarizes the change to our restructuring liability for the period ended June 30, 2018 : Millions of dollars December 31, Charge to Earnings Cash Paid Non-cash and Other June 30, Employee termination costs $ 131 $ 130 $ (110 ) $ — $ 151 Asset impairment costs — 27 — (27 ) — Facility exit costs 2 26 (28 ) — — Other exit costs 29 5 (7 ) (5 ) 22 Total $ 162 $ 188 $ (145 ) $ (32 ) $ 173 The following table summarizes the restructuring charges by operating segment as of June 30, 2018 : Millions of dollars June 30, North America $ 4 EMEA 78 Latin America 90 Asia 1 Corporate / Other 15 Total $ 188 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Income tax expense was $30 million and $45 million for the three and six months ended June 30, 2018 , respectively, compared to income tax expense of $33 million and $73 million in the same periods of 2017. For the three and six months ended June 30, 2018 , changes in the effective tax rate from the prior period include lower level of earnings, the reduction in U.S. tax rate from 35% to 21%, impact of non deductible goodwill impairments and government payment accruals, and valuation allowances. The following table summarizes the difference between income tax expense at the U.S. statutory rate of 21% and 35% , respectively, and the income tax expense at effective worldwide tax rates for the respective periods: Three Months Ended June 30, Six Months Ended June 30, Millions of dollars 2018 2017 2018 2017 Earnings (loss) before income taxes $ (609 ) $ 212 $ (500 ) $ 410 Income tax expense computed at United States statutory tax rate (128 ) 74 (105 ) 143 Valuation allowances 39 6 39 7 Audits and settlements (3 ) (9 ) (3 ) (6 ) U.S. foreign income items, net of credits (34 ) (34 ) (45 ) (53 ) Non deductible impairments 138 — 138 — Non deductible government payments 37 — 37 — Other (19 ) (4 ) (16 ) (18 ) Income tax expense computed at effective worldwide tax rates $ 30 $ 33 $ 45 $ 73 At the end of each interim period, we make our best estimate of the effective tax rate expected to be applicable for the full fiscal year and the impact of discrete items, if any, and adjust the quarterly rate as necessary . United States Government Tax Legislation On December 22, 2017, H.R.1 (the “Tax Cuts and Jobs Act”) was signed into law. Significant provisions include the reduction in the U.S. federal corporate income tax rate from 35% to 21%, the requirement for companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred and the creation of new taxes on certain foreign sourced earnings. We are applying the guidance in SAB 118 when accounting for the enactment-date effects of the Tax Cuts and Jobs Act. At June 30, 2018 , we have not completed our accounting for all of the tax effects of the Tax Cuts and Jobs Act and did not recognize any significant impacts to the provisional amounts recognized as of December 31, 2017. We will continue to make and refine our calculations as additional analysis is completed. Our estimates may also be affected as we gain a more thorough understanding of the tax law and as interpretive guidance is issued by the U.S. government. These changes could have a material impact in future periods. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION Our reportable segments are based upon geographical region and are defined as North America, EMEA, Latin America and Asia. These regions also represent our operating segments. Each segment manufactures home appliances and related components, but serves strategically different marketplaces. The chief operating decision maker evaluates performance based on each segment's earnings before interest and taxes (EBIT), which we define as operating profit less interest and sundry (income) expense and excluding restructuring costs, asset impairment charges and certain other items that management believes are not indicative of the Company's ongoing performance, if any. 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 asset impairment charges, if any. Intersegment sales are eliminated within each region except compressor sales out of Latin America, which are included in Other/Eliminations. Effective January 1, 2018, we realigned the composition of certain segments to align with our new leadership reporting structure. We now report our Mexico business as a part of our Latin America segment, and have shifted certain adjacent business from the North America segment to the Asia segment. The determination of the Company's reportable segments was not affected by these changes. Prior year amounts have been reclassified to conform with current year presentation. The tables below summarize performance by operating segment for the periods presented: Three Months Ended June 30, OPERATING SEGMENTS North EMEA Latin Asia Other/ Total Net sales 2018 $ 2,782 $ 1,096 $ 852 $ 428 $ (18 ) $ 5,140 2017 2,833 1,200 986 373 (45 ) 5,347 Intersegment sales 2018 $ 70 $ 26 $ 341 $ 84 $ (521 ) $ — 2017 53 25 356 77 (511 ) — Depreciation and amortization 2018 $ 47 $ 57 $ 26 $ 16 $ 16 $ 162 2017 54 41 32 15 14 156 EBIT 2018 $ 331 $ (25 ) $ 33 $ 43 $ (944 ) $ (562 ) 2017 336 (2 ) 57 (30 ) (110 ) 251 Total assets June 30, 2018 $ 7,364 $ 7,594 $ 4,652 $ 2,703 $ (3,243 ) $ 19,070 December 31, 2017 6,956 8,781 4,847 2,751 (3,297 ) 20,038 Capital expenditures 2018 $ 41 $ 34 $ 18 $ 16 $ 19 $ 128 2017 32 23 34 24 9 122 Six Months Ended June 30, OPERATING SEGMENTS North EMEA Latin Asia Other/ Total Net sales 2018 $ 5,298 $ 2,164 $ 1,750 $ 876 $ (37 ) $ 10,051 2017 5,279 2,233 1,907 808 (94 ) 10,133 Intersegment sales 2018 $ 137 $ 64 $ 627 $ 159 $ (987 ) $ — 2017 127 44 666 138 (975 ) — Depreciation and amortization 2018 $ 96 $ 114 $ 64 $ 34 $ 31 $ 339 2017 107 89 63 32 28 319 EBIT 2018 $ 619 $ (52 ) $ 90 $ 62 $ (1,130 ) $ (411 ) 2017 611 (25 ) 123 (6 ) (213 ) 490 Total assets June 30, 2018 $ 7,364 $ 7,594 $ 4,652 $ 2,703 $ (3,243 ) $ 19,070 December 31, 2017 6,956 8,781 4,847 2,751 (3,297 ) 20,038 Capital expenditures 2018 $ 64 $ 40 $ 31 $ 27 $ 32 $ 194 2017 67 36 57 33 17 210 A reconciliation of our segment information to the corresponding amounts in the Consolidated Condensed Statements of Comprehensive Income is shown in the table below: Three Months Ended Six Months Ended in millions June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017 Total EBIT $ (562 ) 251 $ (411 ) 490 Less: Interest expense 47 39 89 80 Less: Income tax expense 30 33 45 73 Net earnings (loss) $ (639 ) 179 $ (545 ) 337 |
Assets and Liabilities Held for
Assets and Liabilities Held for Sale | 6 Months Ended |
Jun. 30, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Assets and Liabilities Held for Sale | ASSETS AND LIABILITIES HELD FOR SALE Embraco Sale Transaction On April 23, 2018, our Board of Directors approved the sale of Embraco and we subsequently entered into an agreement to sell the compressor business for a cash purchase price of $1.08 billion , subject to customary adjustments including for indebtedness, cash and working capital at closing. Embraco is reported within our Latin America reportable segment and met the criteria for held for sale accounting during the second quarter of 2018. The operations of Embraco did not meet the criteria to be presented as discontinued operations. The carrying amounts of the major classes of Embraco's assets and liabilities as of June 30, 2018 and December 31, 2017 include the following: Millions of dollars June 30, 2018 December 31, 2017 Accounts receivable, net of allowance of $8 and $7, respectively 225 202 Inventories 199 215 Prepaid and other current assets 47 61 Property, net of accumulated depreciation of $699 and $740, respectively 354 390 Other noncurrent assets 59 36 Total assets $ 884 $ 904 Accounts payable $ 352 $ 392 Accrued expenses 25 25 Accrued advertising and promotion 15 24 Other current liabilities 96 42 Other noncurrent liabilities 37 45 Total liabilities $ 525 $ 528 The following table summarizes Embraco's earnings before income taxes for the three and six months ended June 30, 2018 and 2017: Three Months Ended Six Months Ended Millions of dollars 2018 2017 2018 2017 Earnings before income taxes 9 25 16 65 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles Goodwill and Other Intangibles | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangibles | GOODWILL AND OTHER INTANGIBLES Goodwill The following table summarizes goodwill attributable to our reporting units for the periods presented: Millions of dollars North EMEA Latin Asia Total Beginning balance December 31, 2017 $ 1,755 $ 920 $ 5 $ 438 $ 3,118 Reassignment of goodwill (1) (54 ) — 53 1 — Impairment — (579 ) — — (579 ) Reclassification of asset held for sale — — (4 ) — (4 ) Currency translation adjustment (2 ) (26 ) (1 ) (7 ) (36 ) Ending net balance June 30, 2018 $ 1,699 $ 315 $ 53 $ 432 $ 2,499 (1) Effective January 1, 2018, we realigned the composition of certain segments to align with our new leadership reporting structure. We now report our Mexico business as a part of our Latin America segment. As a result, we reassigned approximately $53 million of goodwill, using a relative fair value approach, from the North America reporting unit to the Latin America reporting unit. In connection with the preparation of our Consolidated Condensed Financial Statements for three months ended June 30, 2018, we identified indicators of goodwill impairment for our EMEA reporting unit based on our qualitative assessment, which required us to complete an interim quantitative impairment assessment. The primary indicator of impairment for our EMEA reporting unit was the segment's continuing negative financial performance in 2018 that did not improve as anticipated, primarily driven by significant volume loss. The actual operating results for the three-months ended June 30, 2018 were significantly lower than forecasted resulting in weak business performance. While the Indesit integration activities are substantially complete, the operating and macro-environment in the EMEA region continues to be very challenging and has not improved as anticipated. While our commercial transformation and supply chain initiatives are progressing, progress on market share recovery is slower than previously anticipated and the business has been impacted by raw material inflation and currency headwinds. In performing our quantitative assessment of goodwill, we estimated the reporting unit's fair value under an income approach using a discounted cash flow model. The income approach used the reporting unit's projections of estimated operating results and cash flows that were discounted using a market participant discount rate based on the weighted-average cost of capital. The main assumptions supporting the cash flow projections include revenue growth, EBIT margins and the discount rate. The financial projections reflect management's best estimate of economic and market conditions over the projected period including forecasted revenue growth, EBIT margins, tax rate, capital expenditures, depreciation and amortization, changes in working capital requirements and the terminal growth rate. Based on our interim quantitative impairment assessment as of June 30, 2018, the carrying value of the EMEA reporting unit exceeded its fair value by $579 million and we recorded a goodwill impairment charge in this amount during the second quarter of 2018. Because the goodwill assigned to the EMEA reporting unit is recorded at fair value as of June 30, 2018, future impairments could result if the reporting unit experiences further deterioration in business performance or if there is a significant change in other qualitative or quantitative factors, including an increase in discount rates or a decrease in forecasted EBIT margin. Other Intangible Assets The following table summarizes other intangible assets for the periods presented: June 30, 2018 December 31, 2017 Millions of dollars Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Other intangible assets, finite lives: Customer relationships (1) $ 635 $ (311 ) $ 324 $ 639 $ (297 ) $ 342 Patents and other (2) 329 (187 ) 142 387 (179 ) 208 Total other intangible assets, finite lives $ 964 $ (498 ) $ 466 $ 1,026 $ (476 ) $ 550 Trademarks, indefinite lives (3) 1,888 — 1,888 2,041 — 2,041 Total other intangible assets $ 2,852 $ (498 ) $ 2,354 $ 3,067 $ (476 ) $ 2,591 (1) Customer relationships have an estimated useful life of 3 to 16 years. (2) Patents and other intangibles have an estimated useful life of 1 to 41 years. Includes impairment charges of $60 million at June 30, 2018. (3) Includes impairment charges of $108 million at June 30, 2018. In connection with the preparation of our Consolidated Condensed Financial Statements for three months ended June 30, 2018, we identified indicators of impairment associated with other intangible assets in our EMEA reporting unit based on our qualitative assessment, which required us to complete an interim quantitative impairment assessment. The primary indicator of impairment was the continuing decline in revenue from weaker volumes through the six-months ended June 30, 2018 that did not improve as anticipated. The actual operating results for the three-months ended June 30, 2018 were significantly lower than forecasted. In performing our quantitative assessment of other intangible assets, primarily brands, we estimate the fair value using the relief-from-royalty method which requires assumptions related to projected revenues from our long-range plans; assumed royalty rates that could be payable if we did not own the brand; and a discount rate using a market-based weighted-average cost of capital. Based on our interim quantitative impairment assessment as of June 30, 2018, the carrying value of certain other intangible assets, including Indesit and Hotpoint* , exceeded their fair value, and we recorded an impairment charge of $168 million during the second quarter of 2018. The estimated undiscounted cash flows for all other long-lived assets, excluding goodwill and indefinite-life intangibles, exceeded their carrying value as of June 30, 2018. See Note 10 to the Consolidated Condensed Financial Statements for additional information on the fair value measurement and disclosure related to the goodwill and other intangibles impairment. The estimates of future cash flows used in determining the fair value of goodwill and intangible assets involve significant management judgment and are based upon assumptions about expected future operating performance, economic conditions, market conditions and cost of capital. Inherent in estimating the future cash flows are uncertainties beyond our control, such as changes in capital markets. The actual cash flows could differ materially from management's estimates due to changes in business conditions, operating performance and economic conditions. *Whirlpool ownership of the Hotpoint brand in the EMEA and Asia Pacific regions is not affiliated with the Hotpoint brand sold in the Americas. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
General Information | General Information The accompanying unaudited Consolidated Condensed Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information, and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all information or footnotes required by GAAP for complete financial statements. As a result, this Form 10-Q should be read in conjunction with the Consolidated Financial Statements and accompanying Notes in our Form 10-K for the year ended December 31, 2017 . Management believes that the accompanying Consolidated Condensed Financial Statements reflect all adjustments, including normal recurring items, considered necessary for a fair presentation of the interim periods. |
Use of Estimates | We are required to make estimates and assumptions that affect the amounts reported in the Consolidated Condensed Financial Statements and accompanying Notes. Actual results could differ materially from those estimates. |
Reclassifications | Certain prior year amounts in the Consolidated Condensed Financial Statements have been reclassified to conform with current year presentation |
Consolidation | We have eliminated all material intercompany transactions in our Consolidated Condensed Financial Statements. We do not consolidate the financial statements of any company in which we have an ownership interest of 50% or less, unless that company is deemed to be a variable interest entity ("VIE") of which we are the primary beneficiary. 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. |
Adoption of New Accounting Standards and Accounting Pronouncements Issued But Not Yet Effective | Adoption of New Accounting Standards On January 1, 2018, we adopted Accounting Standards Update ("ASU") No. 2014-09, "Revenue from Contracts with Customers (Topic 606)" using the modified retrospective method. Under the modified retrospective method, we recognized the cumulative effect of initially applying the new revenue standard as an increase to the opening balance of retained earnings. This adjustment did not have a material impact on our financial statements. For additional information on the required disclosures related to the impact of adopting this standard, see Note 2 to the Consolidated Condensed Financial Statements. In October 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2016-16, "Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory," which requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, and should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings at the beginning of the period of adoption. Early adoption is permitted in the first interim period of an annual reporting period for which financial statements have not been issued. The Company adopted the accounting standard on January 1, 2018 and recognized a $56 million increase to the opening balance of retained earnings. In January 2017, the FASB issued ASU 2017-04, "Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment". The guidance in ASU 2017-04 eliminates the requirement to determine the fair value of individual assets and liabilities of a reporting unit to measure goodwill impairment. Under the amendments in the new standard, goodwill impairment testing will be performed by comparing the fair value of the reporting unit with its carrying amount and recognizing an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value. The new standard is effective for annual and interim goodwill impairment tests in fiscal years beginning after December 15, 2019, and should be applied on a prospective basis. Early adoption is permitted for annual or interim goodwill impairment testing performed after January 1, 2017. The Company elected to early adopt the accounting standard in the second quarter of 2018. For additional information related to the impact of goodwill impairment and related charges, see Note 16 to the Consolidated Condensed Financial Statements. We adopted the following standards, none of which have a material impact on our Consolidated Condensed Financial Statements: Standard Effective Date 2016-01 Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities January 1, 2018 2016-04 Liabilities-Extinguishments of Liabilities (Subtopic 405-20): Recognition of Breakage for Certain Prepaid Stored-Value Products January 1, 2018 2016-15 Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments January 1, 2018 2016-18 Statement of Cash Flows (Topic 230): Restricted Cash January 1, 2018 2017-01 Business Combinations (Topic 805): Clarifying the Definition of a Business January 1, 2018 2017-09 Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting January 1, 2018 All other newly issued and effective accounting standards during 2018 were not relevant or material to the Company. Accounting Pronouncements Issued But Not Yet Effective In February 2018, the FASB issued ASU 2018-02, "Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income". The new standard gives entities the option to reclassify to retained earnings tax effects related to items in accumulated other comprehensive income as a result of the tax reform. The new standard is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted in any interim period after issuance. The Company is currently evaluating the impact of adopting this guidance. In August 2017, the FASB issued ASU 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities". The new standard is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted in any interim period after issuance. All transition requirements and elections should be applied to hedging relationships existing (that is, hedging relationships in which the hedging instrument has not expired, been sold, terminated, or exercised or the entity has not removed the designation of the hedging relationship) on the date of adoption. The effect of adoption should be reflected as of the beginning of the fiscal year of adoption. The Company is currently evaluating the impact of adopting this guidance. In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)". The guidance in ASU 2016-02 supersedes the lease recognition requirements in ASC Topic 840, Leases (FAS 13). The new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. The ASU is required to be applied using a modified retrospective approach at the beginning of the earliest period presented. In connection with the adoption of the new lease accounting standard we have completed scoping reviews and we continue to make progress in updating business process, systems, accounting policies and internal controls and continue to execute our lease data extraction strategy. At this time, the Company is unable to reasonably estimate the expected increase in assets and liabilities on the Consolidated Condensed Balance Sheets upon adoption. The FASB has issued the following relevant standards, which are not expected to have a material impact on our Consolidated Condensed Financial Statements: Standard Effective Date 2016-13 Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments January 1, 2020 2018-07 Compensation - Stock Compensation (Topic 718): Improvements to Non-Employee Share Based Payment Accounting January 1, 2019 All other issued and not yet effective accounting standards are not relevant to the Company. On January 1, 2018, we adopted Topic 606 using the modified retrospective method, as a result, we recognized the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of retained earnings. This adjustment did not have a material impact on our Consolidated Condensed Financial Statements. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting under Revenue Recognition ("Topic 605"). The adoption of Topic 606 did not have a material impact on our Consolidated Condensed Statements of Comprehensive Income (Loss) and Consolidated Condensed Balance Sheets. The adoption of Topic 606 represents a change in accounting principle that will provide financial statement readers with enhanced revenue recognition disclosures. In accordance with Topic 606, revenue is recognized when obligations under the terms of a contract with our customer are satisfied; generally this occurs with the transfer of control of our products or services. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring products or providing services. Certain customers may receive cash and/or non-cash incentives, which are accounted for as variable consideration. To achieve this core principle, the Company applies the following five steps: 1. Identify the contract with a customer A contract with a customer exists when (i) the Company enters into an agreement with a customer that defines each party's rights regarding the products or services to be transferred and identifies the payment terms related to these products or services, (ii) both parties to the contract are committed to perform their respective obligations, (iii) the contract has commercial substance, and (iv) the Company determines that collection of substantially all consideration for products or services that are transferred is probable based on the customer's intent and ability to pay the promised consideration. The Company applies judgment in determining the customer's ability and intention to pay, which is based on a variety of factors including the customer's payment history or, in the case of a new customer, published credit and financial information pertaining to the customer. 2. Identify the performance obligations in the contract Performance obligations promised in a contract are identified based on the products or services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the product or service either on its own or together with other resources that are readily available from third parties or from the Company, and are distinct in the context of the contract, whereby the transfer of the products or services is separately identifiable from other promises in the contract. To the extent a contract includes multiple promised products or services, the Company must apply judgment to determine whether promised products or services are capable of being distinct and distinct in the context of the contract. If these criteria are not met, the promised products or services are accounted for as a combined performance obligation. The Company has elected to account for shipping and handling activities as a fulfillment cost as permitted by the standard. 3. Determine the transaction price The transaction price is determined based on the consideration to which the Company will be entitled in exchange for transferring products or services to the customer. To the extent the transaction price is variable, revenue is recognized at an amount equal the consideration to which the Company expects to be entitled. This estimate includes customer sales incentives which are accounted for as a reduction to revenue and estimated using either the expected value method or the most likely amount method, depending on the nature of the program. Determining the transaction price requires significant judgment, which is discussed by revenue category in further detail below. In practice, we do not offer extended payment terms beyond one year to customers. As such, we do not adjust our consideration for financing arrangements. 4. Allocate the transaction price to performance obligations in the contract If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on a relative standalone selling price basis unless a portion of the variable consideration related to the contract is allocated entirely to a performance obligation. The Company determines standalone selling price based on the price at which the performance obligation is sold separately. 5. Recognize revenue when or as the Company satisfies a performance obligation The Company generally satisfies performance obligations at a point in time. Revenue is recognized based on the transaction price at the time the related performance obligation is satisfied by transferring a promised product or service to a customer. |
Derivatives | Derivative instruments are accounted for at fair value based on market rates. Derivatives where we elect hedge accounting are designated as either cash flow, fair value or net investment 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 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 this 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 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. |
Fair Value of Financial Instruments | Fair value is measured based on an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions market participants would use in pricing an asset or liability. Assets and liabilities measured at fair value are based on a market valuation approach using prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. As a basis for considering such assumptions, a three-tiered fair value hierarchy is established, which prioritizes the inputs used in measuring fair value as follows: (Level 1) observable inputs such as quoted prices in active markets; (Level 2) inputs, other than the quoted prices in active markets that are observable, either directly or indirectly; and (Level 3) unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. The non-recurring fair values represent only those assets whose carrying values were adjusted to fair value during the reporting period. See Note 16 to the Consolidated Condensed Financial Statements for additional information on the goodwill and other intangibles impairment. |
Segment Information | Our reportable segments are based upon geographical region and are defined as North America, EMEA, Latin America and Asia. These regions also represent our operating segments. Each segment manufactures home appliances and related components, but serves strategically different marketplaces. The chief operating decision maker evaluates performance based on each segment's earnings before interest and taxes (EBIT), which we define as operating profit less interest and sundry (income) expense and excluding restructuring costs, asset impairment charges and certain other items that management believes are not indicative of the Company's ongoing performance, if any. 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 asset impairment charges, if any. Intersegment sales are eliminated within each region except compressor sales out of Latin America, which are included in Other/Eliminations. Effective January 1, 2018, we realigned the composition of certain segments to align with our new leadership reporting structure. We now report our Mexico business as a part of our Latin America segment, and have shifted certain adjacent business from the North America segment to the Asia segment. The determination of the Company's reportable segments was not affected by these changes. Prior year amounts have been reclassified to conform with current year presentation. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | We adopted the following standards, none of which have a material impact on our Consolidated Condensed Financial Statements: Standard Effective Date 2016-01 Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities January 1, 2018 2016-04 Liabilities-Extinguishments of Liabilities (Subtopic 405-20): Recognition of Breakage for Certain Prepaid Stored-Value Products January 1, 2018 2016-15 Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments January 1, 2018 2016-18 Statement of Cash Flows (Topic 230): Restricted Cash January 1, 2018 2017-01 Business Combinations (Topic 805): Clarifying the Definition of a Business January 1, 2018 2017-09 Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting January 1, 2018 The FASB has issued the following relevant standards, which are not expected to have a material impact on our Consolidated Condensed Financial Statements: Standard Effective Date 2016-13 Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments January 1, 2020 2018-07 Compensation - Stock Compensation (Topic 718): Improvements to Non-Employee Share Based Payment Accounting January 1, 2019 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Three Months Ended June 30, Six Months Ended June 30, Millions of dollars 2018 2018 Major product categories: Laundry $ 1,463 $ 3,025 Refrigeration 1,606 2,897 Cooking 1,089 2,138 Dishwashing 412 808 Total major product category net sales $ 4,570 $ 8,868 Compressors 285 581 Spare parts and warranties 249 522 Other 36 80 Total net sales $ 5,140 $ 10,051 |
Cash, Cash Equivalents and Re25
Cash, Cash Equivalents and Restricted Cash (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Cash and Cash Equivalents [Abstract] | |
Restrictions on Cash and Cash Equivalents | The following table provides a reconciliation of cash, cash equivalents and restricted cash as reported within our Consolidated Condensed Statements of Cash Flows: Six Months Ended June 30, Millions of dollars 2018 2017 Cash and cash equivalents as presented in our Consolidated Condensed Balance Sheets 1,057 1,041 Restricted cash included in prepaid and other current assets (1) 47 46 Restricted cash included in other noncurrent assets (1) 23 71 Cash, cash equivalents and restricted cash as presented in our Consolidated Condensed Statements of Cash Flows $ 1,127 $ 1,158 (1) Change in restricted cash resulted in realization of foreign currency translation adjustments of $1 million and ( $3 million ), respectively, for the six months ended June 30, 2018 and 2017. December 31, Millions of dollars 2017 2016 Cash and cash equivalents as presented in our Consolidated Condensed Balance Sheets 1,196 1,085 Restricted cash included in prepaid and other current assets 48 45 Restricted cash included in other noncurrent assets 49 110 Cash, cash equivalents and restricted cash as presented in our Consolidated Condensed Statements of Cash Flows $ 1,293 $ 1,240 |
Schedule of Cash and Cash Equivalents | The following table provides a reconciliation of cash, cash equivalents and restricted cash as reported within our Consolidated Condensed Statements of Cash Flows: Six Months Ended June 30, Millions of dollars 2018 2017 Cash and cash equivalents as presented in our Consolidated Condensed Balance Sheets 1,057 1,041 Restricted cash included in prepaid and other current assets (1) 47 46 Restricted cash included in other noncurrent assets (1) 23 71 Cash, cash equivalents and restricted cash as presented in our Consolidated Condensed Statements of Cash Flows $ 1,127 $ 1,158 (1) Change in restricted cash resulted in realization of foreign currency translation adjustments of $1 million and ( $3 million ), respectively, for the six months ended June 30, 2018 and 2017. December 31, Millions of dollars 2017 2016 Cash and cash equivalents as presented in our Consolidated Condensed Balance Sheets 1,196 1,085 Restricted cash included in prepaid and other current assets 48 45 Restricted cash included in other noncurrent assets 49 110 Cash, cash equivalents and restricted cash as presented in our Consolidated Condensed Statements of Cash Flows $ 1,293 $ 1,240 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Inventory, Net [Abstract] | |
Schedule of Inventory | The following table summarizes our inventory for the periods presented: Millions of dollars June 30, 2018 December 31, 2017 Finished products $ 2,524 $ 2,374 Raw materials and work in process 634 725 3,158 3,099 Less: excess of FIFO cost over LIFO cost (126 ) (111 ) Total inventories $ 3,032 $ 2,988 |
Property, Plant & Equipment (Ta
Property, Plant & Equipment (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property, Plant and Equipment | The following table summarizes our property, plant and equipment as of June 30, 2018 and December 31, 2017 : Millions of dollars June 30, 2018 December 31, 2017 Land $ 117 $ 123 Buildings 1,655 1,789 Machinery and equipment 7,750 8,946 Accumulated depreciation (6,095 ) (6,825 ) Property, plant and equipment, net $ 3,427 $ 4,033 |
Financing Arrangements (Tables)
Financing Arrangements (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Notes Payable | The following table summarizes the carrying value of notes payable at June 30, 2018 and December 31, 2017 . Millions of dollars June 30, 2018 December 31, 2017 Commercial paper $ 537 $ 401 Short-term borrowings due to banks 1,259 49 Total notes payable $ 1,796 $ 450 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Product Warranty 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 2018 2017 2018 2017 2018 2017 Balance at January 1 $ 277 $ 251 $ — $ 69 $ 277 $ 320 Issuances/accruals during the period 145 158 — 1 145 159 Settlements made during the period/other (147 ) (154 ) — (47 ) (147 ) (201 ) Balance at June 30 $ 275 $ 255 $ — $ 23 $ 275 $ 278 Current portion $ 200 $ 189 $ — $ 23 $ 200 $ 212 Non-current portion 75 66 — — 75 66 Total $ 275 $ 255 $ — $ 23 $ 275 $ 278 |
Pension and Other Postretirem30
Pension and Other Postretirement Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Retirement Benefits [Abstract] | |
Schedule of Defined Benefit Plans Disclosures | The following table summarizes the components of net periodic pension cost and the cost of other postretirement benefits for the periods presented: Three Months Ended June 30, United States Foreign Other Postretirement Millions of dollars 2018 2017 2018 2017 2018 2017 Service cost $ — $ — $ 2 $ 2 $ 1 $ 2 Interest cost 29 33 6 6 3 4 Expected return on plan assets (42 ) (44 ) (9 ) (8 ) — — Amortization: Actuarial loss 13 13 2 1 — — Prior service credit — — — — (2 ) (3 ) Settlement and curtailment (gain) loss — — (3 ) 1 — — Net periodic benefit cost (credit) $ — $ 2 $ (2 ) $ 2 $ 2 $ 3 Six Months Ended June 30, United States Foreign Other Postretirement Millions of dollars 2018 2017 2018 2017 2018 2017 Service cost $ 1 $ 1 $ 3 $ 3 $ 3 $ 4 Interest cost 59 67 12 11 7 8 Expected return on plan assets (85 ) (88 ) (17 ) (15 ) — — Amortization: Actuarial loss 26 25 5 3 — — Prior service credit (1 ) (1 ) — — 1 (7 ) Settlement and curtailment (gain) loss — — (3 ) 1 — — Net periodic cost $ — $ 4 $ — $ 3 $ 11 $ 5 The following table summarizes the net periodic cost recognized in operating profit and interest and sundry (income) expense for the periods presented: Three Months Ended June 30, United States Foreign Other Postretirement Millions of dollars 2018 2017 2018 2017 2018 2017 Operating profit (loss) $ — $ — $ 2 $ 2 $ 1 $ 2 Interest and sundry (income) expense — 2 (4 ) — 1 1 Net periodic benefit cost (credit) $ — $ 2 $ (2 ) $ 2 $ 2 $ 3 Six Months Ended June 30, United States Foreign Other Postretirement Millions of dollars 2018 2017 2018 2017 2018 2017 Operating profit (loss) $ 1 $ 1 $ 3 $ 3 $ 3 $ 4 Interest and sundry (income) expense (1 ) 3 (3 ) — 8 1 Net periodic benefit cost (credit) $ — $ 4 $ — $ 3 $ 11 $ 5 |
Hedges and Derivative Financi31
Hedges and Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | The following table summarizes our outstanding derivative contracts and their effects on our Consolidated Condensed Balance Sheets at June 30, 2018 and December 31, 2017 : Fair Value of Type (1) Notional Amount Hedge Assets Hedge Liabilities Maximum Term (Months) Millions of dollars 2018 2017 2018 2017 2018 2017 2018 2017 Derivatives accounted for as hedges Foreign exchange forwards/options $ 3,135 $ 3,113 $ 57 $ 55 $ 83 $ 157 (CF/NI) 50 56 Commodity swaps/options 274 269 12 29 9 1 (CF) 30 36 Total derivatives accounted for as hedges $ 69 $ 84 $ 92 $ 158 Derivatives not accounted for as hedges Foreign exchange forwards/options $ 3,810 $ 3,390 $ 33 $ 58 $ 55 $ 50 N/A 27 33 Commodity swaps/options 1 1 — — — — N/A 0 5 Total derivatives not accounted for as hedges 33 58 55 50 Total derivatives $ 102 $ 142 $ 147 $ 208 Current $ 72 $ 89 $ 66 $ 81 Noncurrent 30 53 81 127 Total derivatives $ 102 $ 142 $ 147 $ 208 (1) Derivatives accounted for as hedges are considered either cash flow (CF) or net investment (NI) hedges The following table summarizes our foreign currency denominated debt and foreign exchange forwards/options designated as net investment hedges at June 30, 2018 and December 31, 2017 : Notional (Local) Notional (USD) Current Maturity Instrument 2018 2017 2018 2017 Senior note - 0.625% € 500 € 500 $ 583 $ 600 March 2020 Commercial Paper € 150 € 150 $ 175 $ 180 July 2018 Foreign exchange forwards/options MXN 7,200 MXN 7,200 $ 366 $ 366 August 2022 |
Schedule of Effects of Derivative Instruments on Consolidated Statements of Income | The following tables summarize the effects of derivative instruments on our Consolidated Condensed Statements of Comprehensive Income for the three and six months ended as follows: Three Months Ended June 30, Gain (Loss) Gain (Loss) Reclassified from OCI into Earnings (Effective Portion) (1) Cash Flow Hedges - Millions of dollars 2018 2017 2018 2017 Foreign exchange forwards/options $ 76 $ (50 ) $ 44 $ (37 ) (a) Commodity swaps/options (5 ) 2 10 8 (a) Interest rate derivatives — — (1 ) — (b) Net Investment Hedges Foreign currency 57 (40 ) — — $ 128 $ (88 ) $ 53 $ (29 ) Three Months Ended June 30, Gain (Loss) Recognized on Derivatives not Accounted for as Hedges (2) Derivatives not Accounted for as Hedges - Millions of dollars 2018 2017 Foreign exchange forwards/options $ 123 $ (41 ) Six Months Ended June 30, Gain (Loss) Gain (Loss) Reclassified from OCI into Earnings (Effective Portion) (1) Cash Flow Hedges - Millions of dollars 2018 2017 2018 2017 Foreign exchange $ 76 $ (60 ) $ 42 $ (42 ) (a) Commodity swaps/options (15 ) 17 23 18 (a) Interest rate derivatives — (1 ) — (b) Net Investment Hedges Foreign currency 5 (40 ) — — $ 66 $ (83 ) $ 64 $ (24 ) Six Months Ended June 30, Gain (Loss) Recognized on Derivatives not Accounted for as Hedges (2) Derivatives not Accounted for as Hedges - Millions of dollars 2018 2017 Foreign exchange forwards/options $ 63 $ (79 ) (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. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets Measured on Recurring Basis | The following tables summarize the valuation of our assets and liabilities measured at fair value on a recurring and non-recurring basis at June 30, 2018 and December 31, 2017 are as follows: Fair Value Millions of dollars Total Cost Basis Level 1 Level 2 Total Measured at fair value on a recurring basis: 2018 2017 2018 2017 2018 2017 2018 2017 Money market funds (1) $ 396 $ 255 $ 8 $ 2 $ 388 $ 253 $ 396 $ 255 Net derivative contracts — — — — (45 ) (66 ) (45 ) (66 ) Available for sale investments 7 6 20 22 — — 20 22 Held-to-maturity investments (2) — 60 — — — 60 — 60 (1) Money market funds are comprised primarily of government obligations or time deposits with banks and other first tier obligations. (2) Held-to-maturity investments are primarily comprised of certificates of deposit with an approximate maturity term of less than six months. |
Fair Value Measurements, Nonrecurring | Fair Value Millions of dollars Level 3 Measured at fair value on a non-recurring basis: 2018 2017 Assets: Goodwill (3) $ 315 $ — Indefinite-lived intangible assets (4) 384 — Definite-lived intangible assets (5) — — Total level 3 assets $ 699 $ — (3) Goodwill with a carrying amount of $894 million was written down to a fair value of $315 million resulting in a goodwill impairment charge of $579 million . (4) Indefinite-lived intangible assets with a carrying amount of approximately $492 million were written down to a fair value of $384 million resulting in an impairment charge of $108 million . (5) A definite-lived intangible asset with a carrying amount of approximately $60 million was written down to a fair value of $0 million resulting in an impairment charge of $60 million . |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Other Comprehensive Income | The following table summarizes our other comprehensive income (loss) and related tax effects for the periods presented: Three Months Ended June 30, 2018 2017 Millions of dollars Pre-tax Tax Effect Net Pre-tax Tax Effect Net Currency translation adjustments $ (196 ) $ (7 ) $ (203 ) $ 2 $ — $ 2 Cash flow and net investment hedges 42 (11 ) 31 (28 ) 10 (18 ) Pension and other postretirement benefits plans 13 (4 ) 9 11 (6 ) 5 Available for sale securities — — — 2 — 2 Other comprehensive income (loss) (141 ) (22 ) (163 ) (13 ) 4 (9 ) Less: Other comprehensive income (loss) available to noncontrolling interests — — — — — — Other comprehensive income (loss) available to Whirlpool $ (141 ) $ (22 ) $ (163 ) $ (13 ) $ 4 $ (9 ) Six Months Ended June 30, 2018 2017 Millions of dollars Pre-tax Tax Effect Net Pre-tax Tax Effect Net Currency translation adjustments $ (170 ) $ (6 ) $ (176 ) $ 76 $ — $ 76 Cash flow and net investment hedges (22 ) 5 (17 ) (25 ) 7 (18 ) Pension and other postretirement benefits plans 50 (15 ) 35 20 (7 ) 13 Available for sale securities — — — — — — Other comprehensive income (loss) (142 ) (16 ) (158 ) 71 — 71 Less: Other comprehensive income (loss) available to noncontrolling interests 1 — 1 (1 ) — (1 ) Other comprehensive income (loss) available to Whirlpool $ (143 ) $ (16 ) $ (159 ) $ 72 $ — $ 72 |
Reclassifications Out of Accumulated Other Comprehensive Income | The following table provides the reclassification adjustments out of accumulated other comprehensive income (loss), by component, which was included in net earnings for the three and six months ended June 30, 2018 : Three Months Ended Six Months Ended Millions of dollars (Gain) Loss Reclassified (Gain) Loss Reclassified Classification in Earnings Cash flow hedges, pre-tax $ (14 ) $ (19 ) Cost of products sold Cash flow hedges, pre-tax (39 ) (45 ) Interest and sundry (income) expense Pension and postretirement benefits, pre-tax 10 28 Interest and sundry (income) expense |
Schedule of Stockholders Equity | The following table summarizes the changes in stockholders' equity for the period presented: Millions of dollars Total Whirlpool Common Stockholders Noncontrolling Interests Stockholders' equity, December 31, 2017 $ 5,128 $ 4,198 $ 930 Net earnings (loss) (545 ) (563 ) 18 Other comprehensive income (loss) (158 ) (159 ) 1 Comprehensive income (loss) (703 ) (722 ) 19 Adjustment to beginning retained earnings (1) 72 72 — Adjustment to beginning accumulated other comprehensive loss (17 ) (17 ) — Common stock — — — Treasury stock (1,001 ) (1,001 ) — Additional paid-in capital 27 27 — Dividends declared on common stock (162 ) (159 ) (3 ) Stockholders' equity, June 30, 2018 $ 3,344 $ 2,398 $ 946 (1) Increase to beginning retained earnings is due to the following accounting standard adoptions: ASU 2014-09 [increase of approximately $0.4 million ], ASU 2016-01 [increase of approximately $17 million ] and ASU 2016-16 [increase of approximately $56 million ]. For additional information regarding the adoption of these accounting standards, see Note 1 of the Consolidated Condensed Financial Statements. |
Schedule of Calculation of Numerator and Denominator in Earnings Per Share | Basic and diluted net earnings per share of common stock for the periods presented were calculated as follows: Three Months Ended June 30, Six Months Ended June 30, Millions of dollars and shares 2018 2017 2018 2017 Numerator for basic and diluted earnings per share - Net earnings (loss) available to Whirlpool $ (657 ) $ 189 $ (563 ) $ 342 Denominator for basic earnings per share - weighted-average shares 69.1 74.0 70.1 74.4 Effect of dilutive securities – share-based compensation — 1.1 — 1.2 Denominator for diluted earnings per share – adjusted weighted-average shares 69.1 75.1 70.1 75.6 Anti-dilutive stock options/awards excluded from earnings per share 2.0 0.5 1.9 0.6 |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Restructuring Charges [Abstract] | |
Schedule of Restructuring Liability and Restructuring Activity | The following table summarizes the change to our restructuring liability for the period ended June 30, 2018 : Millions of dollars December 31, Charge to Earnings Cash Paid Non-cash and Other June 30, Employee termination costs $ 131 $ 130 $ (110 ) $ — $ 151 Asset impairment costs — 27 — (27 ) — Facility exit costs 2 26 (28 ) — — Other exit costs 29 5 (7 ) (5 ) 22 Total $ 162 $ 188 $ (145 ) $ (32 ) $ 173 |
Schedule of Restructuring Costs, By Operating Segment | The following table summarizes the restructuring charges by operating segment as of June 30, 2018 : Millions of dollars June 30, North America $ 4 EMEA 78 Latin America 90 Asia 1 Corporate / Other 15 Total $ 188 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation | The following table summarizes the difference between income tax expense at the U.S. statutory rate of 21% and 35% , respectively, and the income tax expense at effective worldwide tax rates for the respective periods: Three Months Ended June 30, Six Months Ended June 30, Millions of dollars 2018 2017 2018 2017 Earnings (loss) before income taxes $ (609 ) $ 212 $ (500 ) $ 410 Income tax expense computed at United States statutory tax rate (128 ) 74 (105 ) 143 Valuation allowances 39 6 39 7 Audits and settlements (3 ) (9 ) (3 ) (6 ) U.S. foreign income items, net of credits (34 ) (34 ) (45 ) (53 ) Non deductible impairments 138 — 138 — Non deductible government payments 37 — 37 — Other (19 ) (4 ) (16 ) (18 ) Income tax expense computed at effective worldwide tax rates $ 30 $ 33 $ 45 $ 73 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Information | The tables below summarize performance by operating segment for the periods presented: Three Months Ended June 30, OPERATING SEGMENTS North EMEA Latin Asia Other/ Total Net sales 2018 $ 2,782 $ 1,096 $ 852 $ 428 $ (18 ) $ 5,140 2017 2,833 1,200 986 373 (45 ) 5,347 Intersegment sales 2018 $ 70 $ 26 $ 341 $ 84 $ (521 ) $ — 2017 53 25 356 77 (511 ) — Depreciation and amortization 2018 $ 47 $ 57 $ 26 $ 16 $ 16 $ 162 2017 54 41 32 15 14 156 EBIT 2018 $ 331 $ (25 ) $ 33 $ 43 $ (944 ) $ (562 ) 2017 336 (2 ) 57 (30 ) (110 ) 251 Total assets June 30, 2018 $ 7,364 $ 7,594 $ 4,652 $ 2,703 $ (3,243 ) $ 19,070 December 31, 2017 6,956 8,781 4,847 2,751 (3,297 ) 20,038 Capital expenditures 2018 $ 41 $ 34 $ 18 $ 16 $ 19 $ 128 2017 32 23 34 24 9 122 Six Months Ended June 30, OPERATING SEGMENTS North EMEA Latin Asia Other/ Total Net sales 2018 $ 5,298 $ 2,164 $ 1,750 $ 876 $ (37 ) $ 10,051 2017 5,279 2,233 1,907 808 (94 ) 10,133 Intersegment sales 2018 $ 137 $ 64 $ 627 $ 159 $ (987 ) $ — 2017 127 44 666 138 (975 ) — Depreciation and amortization 2018 $ 96 $ 114 $ 64 $ 34 $ 31 $ 339 2017 107 89 63 32 28 319 EBIT 2018 $ 619 $ (52 ) $ 90 $ 62 $ (1,130 ) $ (411 ) 2017 611 (25 ) 123 (6 ) (213 ) 490 Total assets June 30, 2018 $ 7,364 $ 7,594 $ 4,652 $ 2,703 $ (3,243 ) $ 19,070 December 31, 2017 6,956 8,781 4,847 2,751 (3,297 ) 20,038 Capital expenditures 2018 $ 64 $ 40 $ 31 $ 27 $ 32 $ 194 2017 67 36 57 33 17 210 A reconciliation of our segment information to the corresponding amounts in the Consolidated Condensed Statements of Comprehensive Income is shown in the table below: Three Months Ended Six Months Ended in millions June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017 Total EBIT $ (562 ) 251 $ (411 ) 490 Less: Interest expense 47 39 89 80 Less: Income tax expense 30 33 45 73 Net earnings (loss) $ (639 ) 179 $ (545 ) 337 |
Assets and Liabilities Held f37
Assets and Liabilities Held for Sale (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations | The carrying amounts of the major classes of Embraco's assets and liabilities as of June 30, 2018 and December 31, 2017 include the following: Millions of dollars June 30, 2018 December 31, 2017 Accounts receivable, net of allowance of $8 and $7, respectively 225 202 Inventories 199 215 Prepaid and other current assets 47 61 Property, net of accumulated depreciation of $699 and $740, respectively 354 390 Other noncurrent assets 59 36 Total assets $ 884 $ 904 Accounts payable $ 352 $ 392 Accrued expenses 25 25 Accrued advertising and promotion 15 24 Other current liabilities 96 42 Other noncurrent liabilities 37 45 Total liabilities $ 525 $ 528 The following table summarizes Embraco's earnings before income taxes for the three and six months ended June 30, 2018 and 2017: Three Months Ended Six Months Ended Millions of dollars 2018 2017 2018 2017 Earnings before income taxes 9 25 16 65 |
Goodwill and Other Intangible38
Goodwill and Other Intangibles (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table summarizes goodwill attributable to our reporting units for the periods presented: Millions of dollars North EMEA Latin Asia Total Beginning balance December 31, 2017 $ 1,755 $ 920 $ 5 $ 438 $ 3,118 Reassignment of goodwill (1) (54 ) — 53 1 — Impairment — (579 ) — — (579 ) Reclassification of asset held for sale — — (4 ) — (4 ) Currency translation adjustment (2 ) (26 ) (1 ) (7 ) (36 ) Ending net balance June 30, 2018 $ 1,699 $ 315 $ 53 $ 432 $ 2,499 (1) Effective January 1, 2018, we realigned the composition of certain segments to align with our new leadership reporting structure. We now report our Mexico business as a part of our Latin America segment. As a result, we reassigned approximately $53 million of goodwill, using a relative fair value approach, from the North America reporting unit to the Latin America reporting unit. |
Schedule of Finite-Lived Intangible Assets | The following table summarizes other intangible assets for the periods presented: June 30, 2018 December 31, 2017 Millions of dollars Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Other intangible assets, finite lives: Customer relationships (1) $ 635 $ (311 ) $ 324 $ 639 $ (297 ) $ 342 Patents and other (2) 329 (187 ) 142 387 (179 ) 208 Total other intangible assets, finite lives $ 964 $ (498 ) $ 466 $ 1,026 $ (476 ) $ 550 Trademarks, indefinite lives (3) 1,888 — 1,888 2,041 — 2,041 Total other intangible assets $ 2,852 $ (498 ) $ 2,354 $ 3,067 $ (476 ) $ 2,591 (1) Customer relationships have an estimated useful life of 3 to 16 years. (2) Patents and other intangibles have an estimated useful life of 1 to 41 years. Includes impairment charges of $60 million at June 30, 2018. (3) Includes impairment charges of $108 million at June 30, 2018. |
Schedule of Indefinite-Lived Intangible Assets | The following table summarizes other intangible assets for the periods presented: June 30, 2018 December 31, 2017 Millions of dollars Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Other intangible assets, finite lives: Customer relationships (1) $ 635 $ (311 ) $ 324 $ 639 $ (297 ) $ 342 Patents and other (2) 329 (187 ) 142 387 (179 ) 208 Total other intangible assets, finite lives $ 964 $ (498 ) $ 466 $ 1,026 $ (476 ) $ 550 Trademarks, indefinite lives (3) 1,888 — 1,888 2,041 — 2,041 Total other intangible assets $ 2,852 $ (498 ) $ 2,354 $ 3,067 $ (476 ) $ 2,591 (1) Customer relationships have an estimated useful life of 3 to 16 years. (2) Patents and other intangibles have an estimated useful life of 1 to 41 years. Includes impairment charges of $60 million at June 30, 2018. (3) Includes impairment charges of $108 million at June 30, 2018. |
Basis of Presentation (Details)
Basis of Presentation (Details) - USD ($) $ in Millions | Jan. 01, 2018 | Dec. 31, 2017 |
Retained Earnings | Accounting Standards Update 2016-16 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cumulative effect of new accounting principle in period of adoption | $ 56 | $ 56 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 5,140 | $ 5,347 | $ 10,051 | $ 10,133 |
Laundry | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,463 | 3,025 | ||
Refrigeration | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,606 | 2,897 | ||
Cooking | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,089 | 2,138 | ||
Dishwashing | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 412 | 808 | ||
Total major product category net sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 4,570 | 8,868 | ||
Compressors | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 285 | 581 | ||
Spare parts and warranties | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 249 | 522 | ||
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 36 | $ 80 | ||
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year | 1 year |
Cash, Cash Equivalents and Re41
Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Millions | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash and Cash Equivalents [Abstract] | ||||
Cash and cash equivalents as presented in our Consolidated Condensed Balance Sheets | $ 1,057 | $ 1,041 | $ 1,196 | $ 1,085 |
Restricted cash included in prepaid and other current assets | 47 | 46 | 48 | 45 |
Restricted cash included in other noncurrent assets | 23 | 71 | 49 | 110 |
Cash, cash equivalents and restricted cash as presented in our Consolidated Condensed Statements of Cash Flows | 1,127 | 1,158 | $ 1,293 | $ 1,240 |
Foreign currency translation adjustment | $ 1 | $ (3) |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Inventory, Net [Abstract] | ||
Finished products | $ 2,524 | $ 2,374 |
Raw materials and work in process | 634 | 725 |
Gross inventories | 3,158 | 3,099 |
Less: excess of FIFO cost over LIFO cost | (126) | (111) |
Total inventories | $ 3,032 | $ 2,988 |
Percentage of LIFO Inventory | 43.00% | 38.00% |
Property, Plant & Equipment (De
Property, Plant & Equipment (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | ||
Land | $ 117 | $ 123 |
Buildings | 1,655 | 1,789 |
Machinery and equipment | 7,750 | 8,946 |
Accumulated depreciation | (6,095) | (6,825) |
Property, plant and equipment, net | 3,427 | $ 4,033 |
Disposed of fully depreciated buildings, machinery and equipment | 14 | |
Gain on disposition of property plant equipment | $ 27 |
Financing Arrangements - Narrat
Financing Arrangements - Narrative (Details) | Jun. 05, 2018EUR (€) | Apr. 23, 2018USD ($) | Sep. 27, 2017USD ($) | Dec. 31, 2017USD ($) | Jun. 30, 2018EUR (€) | Jun. 30, 2018BRL (R$) | Jun. 30, 2018USD ($) | Jun. 05, 2018USD ($) | Apr. 26, 2018USD ($) | Nov. 09, 2017EUR (€) | Nov. 09, 2017USD ($) | Nov. 01, 2017USD ($) | Mar. 01, 2017USD ($) | Dec. 31, 2016USD ($) |
Letter of Credit Subfacility Maturing 2017 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Line of credit facility, maximum borrowing capacity | $ 302,000,000 | R$ 1000000000 | $ 259,000,000 | |||||||||||
Line of Credit | Revolving Credit Facility | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Line of credit facility, maximum borrowing capacity | 0 | 0 | ||||||||||||
Line of Credit | Foreign Line of Credit | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Line of credit facility, maximum borrowing capacity | $ 300,000,000 | € 250,000,000 | 292,000,000 | |||||||||||
Notes Maturing 2026, 1.250 Percent Interest Rate | Senior Notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument, face amount | € 600,000,000 | $ 699,000,000 | ||||||||||||
Debt instrument, interest rate, stated percentage | 1.10% | 1.10% | ||||||||||||
Debt instrument, redemption price, percentage | 101.00% | |||||||||||||
Notes Matured 2018, 4.50 Percent Interest Rate | Senior Notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument, face amount | $ 363,000,000 | |||||||||||||
Debt instrument, interest rate, stated percentage | 4.50% | |||||||||||||
Notes Matured 2017, 1.65 Percent Interest Rate | Senior Notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument, face amount | $ 300,000,000 | |||||||||||||
Debt instrument, interest rate, stated percentage | 1.65% | |||||||||||||
Notes Matured 2017, 1.35 Percent Interest Rate | Senior Notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument, face amount | $ 250,000,000 | |||||||||||||
Debt instrument, interest rate, stated percentage | 1.35% | |||||||||||||
Term Loan Agreement | Secured Debt | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument, face amount | € 600,000,000 | $ 1,000,000,000 | $ 703,000,000 | |||||||||||
Debt instrument, additional term | 6 months | |||||||||||||
Line of credit facility, commitment fee percentage | 0.125% | 0.125% | ||||||||||||
Ratio of indebtedness to net capital | 0.60 | 0.60 | 0.60 | |||||||||||
Debt instrument, covenant, rolling twelve month coverage ratio, minimum | 3 | 3 | ||||||||||||
Term Loan Agreement | Secured Debt | EURIBOR | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt Instrument, basis spread on variable rate | 1.00% | |||||||||||||
Term Loan Agreement | Secured Debt | London Interbank Offered Rate (LIBOR) | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt Instrument, basis spread on variable rate | 1.125% | |||||||||||||
Term Loan Agreement | Secured Debt | Prime Rate | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt Instrument, basis spread on variable rate | 0.125% | 0.125% | ||||||||||||
Third Amended and Restated Long-Term Credit Agreement | Line of Credit | Revolving Credit Facility | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Line of credit facility, maximum borrowing capacity | $ 3,000,000,000 | $ 3,000,000,000 | $ 2,500,000,000 | |||||||||||
Line of credit facility, commitment fee percentage | 0.125% | |||||||||||||
Ratio of indebtedness to net capital | 0.60 | |||||||||||||
Debt instrument, covenant, rolling twelve month coverage ratio, minimum | 3 | |||||||||||||
Third Amended and Restated Long-Term Credit Agreement | Line of Credit | London Interbank Offered Rate (LIBOR) | Revolving Credit Facility | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt Instrument, basis spread on variable rate | 1.125% | |||||||||||||
Third Amended and Restated Long-Term Credit Agreement | Line of Credit | Prime Rate | Revolving Credit Facility | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt Instrument, basis spread on variable rate | 0.125% |
Financing Arrangements - Notes
Financing Arrangements - Notes Payable (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Short-term Debt [Line Items] | ||
Total notes payable | $ 1,796 | $ 450 |
Commercial paper | ||
Short-term Debt [Line Items] | ||
Total notes payable | 537 | 401 |
Short-term borrowings to banks | ||
Short-term Debt [Line Items] | ||
Total notes payable | $ 1,259 | $ 49 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) € in Millions, R$ in Millions | Jun. 26, 2018EUR (€) | Jun. 30, 2018USD ($) | Dec. 31, 2017BRL (R$) | Dec. 31, 2017USD ($) | Dec. 31, 2009USD ($) | Dec. 31, 2004USD ($) | Jun. 30, 2018EUR (€) | Jun. 30, 2018BRL (R$) | Jun. 30, 2018USD ($) | Sep. 30, 2017USD ($) |
Commitments and Contingencies [Line Items] | ||||||||||
BEFIEX tax credits, additional amount available to recognize | $ 72,000,000 | |||||||||
BEFIEX tax credits monetized | $ 30,000,000 | $ 42,000,000 | ||||||||
BEFIEX tax credits | $ 0 | |||||||||
Outstanding BEFIEX tax assessment | R$ 1900 | 493,000,000 | ||||||||
Brazil tax matters | ||||||||||
Commitments and Contingencies [Line Items] | ||||||||||
IPI tax credits recognized | $ 26,000,000 | |||||||||
Special government program settlement | $ 34,000,000 | |||||||||
Brazil tax assessment | 245 | 64,000,000 | ||||||||
CFC tax | ||||||||||
Commitments and Contingencies [Line Items] | ||||||||||
CFC potential exposure | R$ 193 | 50,000,000 | ||||||||
Loss contingency accrual | 0 | |||||||||
Non-income and Income Tax Matters [Member] | ||||||||||
Commitments and Contingencies [Line Items] | ||||||||||
Loss contingency, proceeds from sell of rights | R$ 90 | 27,000,000 | ||||||||
Loss contingency, damages sought, value of remaining credits | $ 230,000,000 | |||||||||
Proceeds from legal settlements | $ 0 | |||||||||
Whirlpool France SAS | ||||||||||
Commitments and Contingencies [Line Items] | ||||||||||
Loss contingency accrual | € 95 | $ 111,000,000 | ||||||||
Litigation settlement, duration of event | 14 months | |||||||||
Whirlpool France SAS | Minimum | ||||||||||
Commitments and Contingencies [Line Items] | ||||||||||
Litigation settlement, amount awarded to other party | € | € 95 | |||||||||
Whirlpool France SAS | Maximum | ||||||||||
Commitments and Contingencies [Line Items] | ||||||||||
Litigation settlement, amount awarded to other party | € | € 115 |
Commitments and Contingencies47
Commitments and Contingencies - Schedule of Product Warranty Reserves (Details) - USD ($) $ in Millions | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward] | ||||
Balance at January 1 | $ 277 | $ 320 | ||
Issuances/accruals during the period | 145 | 159 | ||
Settlements made during the period/other | (147) | (201) | ||
Balance at June 30 | 275 | 278 | ||
Current portion | $ 200 | $ 212 | ||
Non-current portion | 75 | 66 | ||
Total | 277 | 320 | 275 | 278 |
Product Warranty | ||||
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward] | ||||
Balance at January 1 | 277 | 251 | ||
Issuances/accruals during the period | 145 | 158 | ||
Settlements made during the period/other | (147) | (154) | ||
Balance at June 30 | 275 | 255 | ||
Current portion | 200 | 189 | ||
Non-current portion | 75 | 66 | ||
Total | 277 | 251 | 275 | 255 |
Legacy Product Warranty | ||||
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward] | ||||
Balance at January 1 | 0 | 69 | ||
Issuances/accruals during the period | 0 | 1 | ||
Settlements made during the period/other | 0 | (47) | ||
Balance at June 30 | 0 | 23 | ||
Current portion | 0 | 23 | ||
Non-current portion | 0 | 0 | ||
Total | $ 0 | $ 69 | $ 0 | $ 23 |
Commitments and Contingencies48
Commitments and Contingencies - Guarantees (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Customer Lines Of Credit For Brazilian Subsidiary | ||
Guarantor Obligations [Line Items] | ||
Guarantor obligations, maximum exposure, undiscounted | $ 88,000,000 | $ 284,000,000 |
Guarantee of Indebtedness of Others | ||
Guarantor Obligations [Line Items] | ||
Guarantor obligations, maximum exposure, undiscounted | 3,700,000,000 | 2,800,000,000 |
Line of Credit | ||
Guarantor Obligations [Line Items] | ||
Guarantor obligations, current carrying value | $ 53,000,000 | $ 49,000,000 |
Pension and Other Postretirem49
Pension and Other Postretirement Benefit Plans - Summary of Components of Net Periodic Pension Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 87 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | |
Other Postretirement Benefits | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | $ 1 | $ 2 | $ 3 | $ 4 | |
Interest cost | 3 | 4 | 7 | 8 | |
Expected return on plan assets | 0 | 0 | 0 | 0 | |
Amortization: | |||||
Actuarial loss | 0 | 0 | 0 | 0 | |
Prior service credit | (2) | (3) | 1 | (7) | |
Settlement and curtailment (gain) loss | 0 | 0 | 0 | 0 | |
Net periodic cost | 2 | 3 | 11 | 5 | $ (87) |
United States Pension Benefits | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | 0 | 0 | 1 | 1 | |
Interest cost | 29 | 33 | 59 | 67 | |
Expected return on plan assets | (42) | (44) | (85) | (88) | |
Amortization: | |||||
Actuarial loss | 13 | 13 | 26 | 25 | |
Prior service credit | 0 | 0 | (1) | (1) | |
Settlement and curtailment (gain) loss | 0 | 0 | 0 | 0 | |
Net periodic cost | 0 | 2 | 0 | 4 | |
Foreign Pension Benefits | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | 2 | 2 | 3 | 3 | |
Interest cost | 6 | 6 | 12 | 11 | |
Expected return on plan assets | (9) | (8) | (17) | (15) | |
Amortization: | |||||
Actuarial loss | 2 | 1 | 5 | 3 | |
Prior service credit | 0 | 0 | 0 | 0 | |
Settlement and curtailment (gain) loss | (3) | 1 | (3) | 1 | |
Net periodic cost | $ (2) | $ 2 | $ 0 | $ 3 |
Pension and Other Postretirem50
Pension and Other Postretirement Benefit Plans - Net Periodic Costs Recognized in Operating Profit and Interest and Sundry (Income) Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 87 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | |
Other Postretirement Benefits | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Net periodic cost | $ 2 | $ 3 | $ 11 | $ 5 | $ (87) |
Operating profit | Other Postretirement Benefits | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Net periodic cost | 1 | 2 | 3 | 4 | |
Interest and sundry (income) expense | Other Postretirement Benefits | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Net periodic cost | 1 | 1 | 8 | 1 | |
United States Pension Benefits | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Net periodic cost | 0 | 2 | 0 | 4 | |
United States Pension Benefits | Operating profit | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Net periodic cost | 0 | 0 | 1 | 1 | |
United States Pension Benefits | Interest and sundry (income) expense | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Net periodic cost | 0 | 2 | (1) | 3 | |
Foreign Pension Benefits | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Net periodic cost | (2) | 2 | 0 | 3 | |
Foreign Pension Benefits | Operating profit | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Net periodic cost | 2 | 2 | 3 | 3 | |
Foreign Pension Benefits | Interest and sundry (income) expense | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Net periodic cost | $ (4) | $ 0 | $ (3) | $ 0 |
Pension and Other Postretirem51
Pension and Other Postretirement Benefit Plans - Narrative (Details) - Other Postretirement Benefits - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 87 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2011 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Reduction in postretirement benefit obligation | $ 138 | |||||
Net periodic cost | $ (2) | $ (3) | $ (11) | $ (5) | $ 87 |
Hedges and Derivative Financi52
Hedges and Derivative Financial Instruments - Narrative (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018USD ($)contract | Dec. 31, 2017USD ($)contract | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Number of interest rate derivatives held (in contracts) | contract | 0 | 0 |
Net hedge ineffectiveness gain (loss) | $ 0 | $ 0 |
Interest rate cash flow hedge loss to be reclassified during next 12 months | $ 45,000,000 |
Hedges and Derivative Financi53
Hedges and Derivative Financial Instruments - Schedule of Net Investment Hedging (Details) € in Millions, $ in Millions, $ in Millions | Jun. 30, 2018MXN ($) | Jun. 30, 2018EUR (€) | Jun. 30, 2018USD ($) | Dec. 31, 2017MXN ($) | Dec. 31, 2017EUR (€) | Dec. 31, 2017USD ($) |
Senior note - 0.625% | ||||||
Derivative [Line Items] | ||||||
Debt instrument, interest rate, stated percentage | 0.625% | 0.625% | 0.625% | |||
Senior note - 0.625% | Net Investment Hedges | ||||||
Derivative [Line Items] | ||||||
Notional Amount | € 500 | $ 583 | € 500 | $ 600 | ||
Commercial paper | Net Investment Hedges | ||||||
Derivative [Line Items] | ||||||
Notional Amount | € 150 | 175 | € 150 | 180 | ||
Foreign exchange forwards/options | Net Investment Hedges | ||||||
Derivative [Line Items] | ||||||
Notional Amount | $ 7,200 | $ 366 | $ 7,200 | $ 366 |
Hedges and Derivative Financi54
Hedges and Derivative Financial Instruments - Schedule of Outstanding Derivative Contracts (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Derivatives, Fair Value [Line Items] | ||
Fair value of hedged assets | $ 102 | $ 142 |
Fair value of hedged liabilities | 147 | 208 |
Derivative asset at fair value, current | 72 | 89 |
Derivative asset at fair value, noncurrent | 30 | 53 |
Total derivatives, hedge assets at fair value | 102 | 142 |
Derivative liability at fair value, current | 66 | 81 |
Derivative liability at fair value, noncurrent | 81 | 127 |
Total derivatives, hedge liabilities at fair value | 147 | 208 |
Derivatives accounted for as hedges | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of hedged assets | 69 | 84 |
Fair value of hedged liabilities | 92 | 158 |
Derivatives accounted for as hedges | Foreign exchange forwards/options | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 3,135 | 3,113 |
Fair value of hedged assets | 57 | 55 |
Fair value of hedged liabilities | $ 83 | $ 157 |
Maximum term of foreign exchange forwards/options | 50 months | 56 months |
Derivatives accounted for as hedges | Commodity swaps/options | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 274 | $ 269 |
Fair value of hedged assets | 12 | 29 |
Fair value of hedged liabilities | $ 9 | $ 1 |
Maximum term of commodity swaps/options | 30 months | 36 months |
Derivatives not accounted for as hedges | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of hedged assets | $ 33 | $ 58 |
Fair value of hedged liabilities | 55 | 50 |
Derivatives not accounted for as hedges | Foreign exchange forwards/options | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 3,810 | 3,390 |
Fair value of hedged assets | 33 | 58 |
Fair value of hedged liabilities | $ 55 | $ 50 |
Maximum term of foreign exchange forwards/options | 27 months | 33 months |
Derivatives not accounted for as hedges | Commodity swaps/options | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 1 | $ 1 |
Fair value of hedged assets | 0 | 0 |
Fair value of hedged liabilities | $ 0 | $ 0 |
Maximum term of commodity swaps/options | 0 months | 5 months |
Hedges and Derivative Financi55
Hedges and Derivative Financial Instruments - Schedule of Effects of Derivative Instruments on Consolidated Condensed Statements of Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Recognized in OCI (Effective Portion) | $ 128 | $ (88) | $ 66 | $ (83) |
Gain Reclassified from OCI into Earnings (Effective Portion) (1) | 53 | (29) | 64 | (24) |
Foreign exchange | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Foreign exchange forwards/options | 123 | (41) | 63 | (79) |
Interest rate derivatives | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Recognized in OCI (Effective Portion) | 0 | 0 | ||
Gain Reclassified from OCI into Earnings (Effective Portion) (1) | (1) | 0 | ||
Cash Flow Hedges | Foreign exchange | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Recognized in OCI (Effective Portion) | 76 | (50) | 76 | (60) |
Gain Reclassified from OCI into Earnings (Effective Portion) (1) | 44 | (37) | 42 | (42) |
Cash Flow Hedges | Commodity swaps/options | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Recognized in OCI (Effective Portion) | (5) | 2 | (15) | 17 |
Gain Reclassified from OCI into Earnings (Effective Portion) (1) | 10 | 8 | 23 | 18 |
Cash Flow Hedges | Interest rate derivatives | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Recognized in OCI (Effective Portion) | 0 | |||
Gain Reclassified from OCI into Earnings (Effective Portion) (1) | (1) | 0 | ||
Net Investment Hedges | Foreign exchange | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Recognized in OCI (Effective Portion) | 57 | (40) | 5 | (40) |
Gain Reclassified from OCI into Earnings (Effective Portion) (1) | $ 0 | $ 0 | $ 0 | $ 0 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2018USD ($) | Jun. 30, 2018USD ($)reporting_unit | Dec. 31, 2017USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Number of reporting units | reporting_unit | 4 | ||
Goodwill impairment charge | $ 579 | ||
Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long-term debt, fair value | $ 5,040 | 5,040 | $ 4,950 |
EMEA | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Goodwill impairment charge | 579 | $ 579 | |
Impairment of intangible assets (excluding goodwill) | $ 168 | ||
EMEA | Discounted Cash Flow Analysis | Goodwill | Measurement Input, Discount Rate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Servicing asset, measurement input | 0.12 | 0.12 | |
EMEA | Relief-From-Royalty Method | Minimum | Other Intangible Assets | Measurement Input, Discount Rate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Servicing asset, measurement input | 0.115 | 0.115 | |
EMEA | Relief-From-Royalty Method | Minimum | Other Intangible Assets | Measurement Input, Royalty Rate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Servicing asset, measurement input | 0.015 | 0.015 | |
EMEA | Relief-From-Royalty Method | Maximum | Other Intangible Assets | Measurement Input, Discount Rate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Servicing asset, measurement input | 0.16 | 0.16 | |
EMEA | Relief-From-Royalty Method | Maximum | Other Intangible Assets | Measurement Input, Royalty Rate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Servicing asset, measurement input | 0.035 | 0.035 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | $ 396 | $ 255 |
Net derivative contracts | (45) | (66) |
Available for sale investments | 20 | 22 |
Held-to-maturity investments | 0 | 60 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 8 | 2 |
Net derivative contracts | 0 | 0 |
Available for sale investments | 20 | 22 |
Held-to-maturity investments | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 388 | 253 |
Net derivative contracts | (45) | (66) |
Available for sale investments | 0 | 0 |
Held-to-maturity investments | 0 | 60 |
Total Cost Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 396 | 255 |
Net derivative contracts | 0 | 0 |
Available for sale investments | 7 | 6 |
Held-to-maturity investments | $ 0 | $ 60 |
Fair Value Measurements - Level
Fair Value Measurements - Level 3 Assets Measured at Fair Value on a Nonrecurring Basis (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Goodwill, impairment loss | $ 579 | |
Impairment of intangible assets, indefinite-lived (excluding goodwill) | 108 | |
Impairment of intangible assets, finite-lived | 60 | |
Carrying amount | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Goodwill | 894 | |
Indefinite-lived intangible assets | 492 | |
Definite-lived intangible assets | 60 | |
Fair Value | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Goodwill | 315 | |
Indefinite-lived intangible assets | 384 | |
Definite-lived intangible assets | 0 | |
Fair Value, Measurements, Nonrecurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Goodwill | 315 | $ 0 |
Indefinite-lived intangible assets | 384 | 0 |
Definite-lived intangible assets | 0 | 0 |
Total level 3 assets | $ 699 | $ 0 |
Stockholders' Equity - Other Co
Stockholders' Equity - Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Pre-tax | $ (141) | $ (13) | $ (142) | $ 71 |
Tax Effect | (22) | 4 | (16) | 0 |
Net | (163) | (9) | (158) | 71 |
Currency translation adjustments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Pre-tax | (196) | 2 | (170) | 76 |
Tax Effect | (7) | 0 | (6) | 0 |
Net | (203) | 2 | (176) | 76 |
Cash flow and net investment hedges | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Pre-tax | 42 | (28) | (22) | (25) |
Tax Effect | (11) | 10 | 5 | 7 |
Net | 31 | (18) | (17) | (18) |
Pension and other postretirement benefits plans | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Pre-tax | 13 | 11 | 50 | 20 |
Tax Effect | (4) | (6) | (15) | (7) |
Net | 9 | 5 | 35 | 13 |
Available for sale securities | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Pre-tax | 0 | 2 | 0 | 0 |
Tax Effect | 0 | 0 | 0 | 0 |
Net | 0 | 2 | 0 | 0 |
Noncontrolling Interests | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Pre-tax | 0 | 0 | 1 | (1) |
Tax Effect | 0 | 0 | 0 | 0 |
Net | 0 | 0 | 1 | (1) |
Other comprehensive income (loss) available to Whirlpool | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Pre-tax | (141) | (13) | (143) | 72 |
Tax Effect | (22) | 4 | (16) | 0 |
Net | $ (163) | $ (9) | $ (159) | $ 72 |
Stockholders' Equity - Reclassi
Stockholders' Equity - Reclassifications out of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Reclassifications out of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of products sold | $ 4,260 | $ 4,471 | $ 8,359 | $ 8,431 |
Interest and sundry (income) expense | 90 | $ 23 | 82 | $ 48 |
Reclassification out of Accumulated Other Comprehensive Income | Cash flow hedges, pre-tax | ||||
Reclassifications out of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of products sold | (14) | (19) | ||
Interest and sundry (income) expense | (39) | (45) | ||
Reclassification out of Accumulated Other Comprehensive Income | Pension and postretirement benefits, pre-tax | ||||
Reclassifications out of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest and sundry (income) expense | $ 10 | $ 28 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Changes in Stockholders' Equity (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jan. 01, 2018 | Dec. 31, 2017 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stockholders' equity, December 31, 2017 | $ 5,128 | |||||
Net earnings (loss) | $ (639) | $ 179 | (545) | $ 337 | ||
Other comprehensive income (loss) | (163) | (9) | (158) | 71 | ||
Comprehensive income (loss) | (802) | 170 | (703) | 408 | ||
Common stock | 0 | |||||
Treasury stock | (1,001) | |||||
Additional paid-in capital | 27 | |||||
Dividends declared on common stock | (162) | |||||
Stockholders' equity, June 30, 2018 | 3,344 | 3,344 | ||||
Whirlpool Common Stockholders | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stockholders' equity, December 31, 2017 | 4,198 | |||||
Net earnings (loss) | (563) | |||||
Other comprehensive income (loss) | (159) | |||||
Comprehensive income (loss) | (722) | |||||
Common stock | 0 | |||||
Treasury stock | (1,001) | |||||
Additional paid-in capital | 27 | |||||
Dividends declared on common stock | (159) | |||||
Stockholders' equity, June 30, 2018 | 2,398 | 2,398 | ||||
Noncontrolling Interests | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stockholders' equity, December 31, 2017 | 930 | |||||
Net earnings (loss) | 18 | |||||
Other comprehensive income (loss) | 0 | $ 0 | 1 | $ (1) | ||
Comprehensive income (loss) | 19 | |||||
Common stock | 0 | |||||
Treasury stock | 0 | |||||
Additional paid-in capital | 0 | |||||
Dividends declared on common stock | (3) | |||||
Stockholders' equity, June 30, 2018 | 946 | 946 | ||||
Adjustment to beginning retained earnings | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cumulative effect of new accounting principle in period of adoption | $ 72 | |||||
Adjustment to beginning retained earnings | Whirlpool Common Stockholders | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cumulative effect of new accounting principle in period of adoption | 72 | |||||
Adjustment to beginning retained earnings | Noncontrolling Interests | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cumulative effect of new accounting principle in period of adoption | 0 | |||||
Adjustment to beginning accumulated other comprehensive loss | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cumulative effect of new accounting principle in period of adoption | (17) | |||||
Adjustment to beginning accumulated other comprehensive loss | Whirlpool Common Stockholders | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cumulative effect of new accounting principle in period of adoption | (17) | |||||
Adjustment to beginning accumulated other comprehensive loss | Noncontrolling Interests | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cumulative effect of new accounting principle in period of adoption | 0 | |||||
Accounting Standards Update 2014-09 | Retained Earnings | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cumulative effect of new accounting principle in period of adoption | $ 0.4 | $ 0.4 | ||||
Accounting Standards Update 2016-01 | Retained Earnings | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cumulative effect of new accounting principle in period of adoption | 17 | |||||
Accounting Standards Update 2016-16 | Retained Earnings | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cumulative effect of new accounting principle in period of adoption | $ 56 | $ 56 |
Stockholders' Equity - Net Earn
Stockholders' Equity - Net Earnings Per Share (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Stockholders' Equity Note [Abstract] | ||||
Numerator for basic and diluted earnings per share - Net earnings (loss) available to Whirlpool | $ (657) | $ 189 | $ (563) | $ 342 |
Denominator for basic earnings per share – weighted-average shares (in shares) | 69.1 | 74 | 70.1 | 74.4 |
Effect of dilutive securities – share-based compensation (in shares) | 0 | 1.1 | 0 | 1.2 |
Denominator for diluted earnings per share – adjusted weighted-average shares (in shares) | 69.1 | 75.1 | 70.1 | 75.6 |
Anti-dilutive stock options/awards excluded from earnings per share (in shares) | 2 | 0.5 | 1.9 | 0.6 |
Stockholders' Equity - Share Re
Stockholders' Equity - Share Repurchase Program (Details) - Common Stock - Share Repurchase Program 2017 - USD ($) | 6 Months Ended | |
Jun. 30, 2018 | Jul. 25, 2017 | |
Equity, Class of Treasury Stock [Line Items] | ||
Stock repurchase program, authorized amount | $ 2,000,000,000 | |
Stock repurchased during period (in shares) | 6,269,591 | |
Stock repurchased during period, value | $ 1,000,000,000 | |
Stock repurchase program, remaining authorized repurchase amount | $ 950,000,000 |
Restructuring Charges - Narrati
Restructuring Charges - Narrative (Details) € in Millions, $ in Millions | Jan. 10, 2018position | Jan. 24, 2017position | Jun. 30, 2018EUR (€) | Jun. 30, 2018USD ($) | Dec. 31, 2017EUR (€) | Jun. 30, 2018USD ($) | Dec. 31, 2017USD ($) |
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and related cost, expected reduction in overhead costs | $ | $ 150 | ||||||
Italy | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and related cost, expected cost | € 241 | $ 281 | |||||
Estimated payments for restructuring | 209 | $ 244 | |||||
Restructuring and related cost, expected cost remaining | 45 | 52 | |||||
United Kingdom | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and related cost, expected cost | 79 | 92 | |||||
Estimated payments for restructuring | 69 | 80 | |||||
Restructuring and related cost, expected cost remaining | 11 | 13 | |||||
Restructuring and related cost, expected number of positions eliminated | 500 | ||||||
Employee-related costs | Italy | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and related cost, expected cost | 179 | 209 | |||||
Employee-related costs | United Kingdom | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and related cost, expected cost | 59 | 69 | |||||
Asset impairment costs | Italy | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and related cost, expected cost | 25 | 29 | |||||
Asset impairment costs | United Kingdom | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and related cost, expected cost | 11 | 13 | |||||
Other exit costs | Italy | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and related cost, expected cost | 37 | 43 | |||||
Other exit costs | United Kingdom | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and related cost, expected cost | 10 | 12 | |||||
Embraco’s Riva Presso Chieri (Turin) | Italy | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and related cost, expected cost | 77 | 90 | |||||
Estimated payments for restructuring | $ 65 | € 56 | |||||
Restructuring and related cost, expected cost remaining | 9 | 11 | |||||
Restructuring and related cost, expected number of positions eliminated | 500 | ||||||
Embraco’s Riva Presso Chieri (Turin) | Employee-related costs | Italy | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and related cost, expected cost | 52 | 61 | |||||
Embraco’s Riva Presso Chieri (Turin) | Asset impairment costs | Italy | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and related cost, expected cost | 20 | 23 | |||||
Embraco’s Riva Presso Chieri (Turin) | Other exit costs | Italy | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and related cost, expected cost | € 5 | $ 6 |
Restructuring Charges - Change
Restructuring Charges - Change in Restructuring Liability (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Restructuring Reserve [Roll Forward] | ||||
December 31, 2017 | $ 162 | |||
Charge to Earnings | $ 44 | $ 59 | 188 | $ 105 |
Cash Paid | (145) | |||
Non-cash and Other | (32) | |||
June 30, 2018 | 173 | 173 | ||
Employee termination costs | ||||
Restructuring Reserve [Roll Forward] | ||||
December 31, 2017 | 131 | |||
Charge to Earnings | 130 | |||
Cash Paid | (110) | |||
Non-cash and Other | 0 | |||
June 30, 2018 | 151 | 151 | ||
Asset impairment costs | ||||
Restructuring Reserve [Roll Forward] | ||||
December 31, 2017 | 0 | |||
Charge to Earnings | 27 | |||
Cash Paid | 0 | |||
Non-cash and Other | (27) | |||
June 30, 2018 | 0 | 0 | ||
Facility exit costs | ||||
Restructuring Reserve [Roll Forward] | ||||
December 31, 2017 | 2 | |||
Charge to Earnings | 26 | |||
Cash Paid | (28) | |||
Non-cash and Other | 0 | |||
June 30, 2018 | 0 | 0 | ||
Other exit costs | ||||
Restructuring Reserve [Roll Forward] | ||||
December 31, 2017 | 29 | |||
Charge to Earnings | 5 | |||
Cash Paid | (7) | |||
Non-cash and Other | (5) | |||
June 30, 2018 | $ 22 | $ 22 |
Restructuring Charges - By Segm
Restructuring Charges - By Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | $ 44 | $ 59 | $ 188 | $ 105 |
Operating Segments | North America | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 4 | |||
Operating Segments | EMEA | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 78 | |||
Operating Segments | Latin America | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 90 | |||
Operating Segments | Asia | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 1 | |||
Corporate / Other | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | $ 15 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense | $ 30 | $ 33 | $ 45 | $ 73 |
Effective income tax rate reconciliation, at federal statutory income tax rate, percent | 21.00% | 35.00% |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | ||||
Earnings (loss) before income taxes | $ (609) | $ 212 | $ (500) | $ 410 |
Income tax expense computed at United States statutory tax rate | (128) | 74 | (105) | 143 |
Valuation allowances | 39 | 6 | 39 | 7 |
Audits and settlements | (3) | (9) | (3) | (6) |
U.S. foreign income items, net of credits | (34) | (34) | (45) | (53) |
Non deductible impairments | 138 | 0 | 138 | 0 |
Non deductible government payments | 37 | 0 | 37 | 0 |
Other | (19) | (4) | (16) | (18) |
Income tax expense computed at effective worldwide tax rates | $ 30 | $ 33 | $ 45 | $ 73 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||
Net sales | $ 5,140 | $ 5,347 | $ 10,051 | $ 10,133 | |
Depreciation and amortization | 162 | 156 | 339 | 319 | |
EBIT | (562) | 251 | (411) | 490 | |
Total assets | 19,070 | 19,070 | $ 20,038 | ||
Capital expenditures | 128 | 122 | 194 | 210 | |
Interest expense | 47 | 39 | 89 | 80 | |
Income tax expense | 30 | 33 | 45 | 73 | |
Net earnings (loss) | (639) | 179 | (545) | 337 | |
North America | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 2,782 | 2,833 | 5,298 | 5,279 | |
EMEA | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 1,096 | 1,200 | 2,164 | 2,233 | |
Latin America | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 852 | 986 | 1,750 | 1,907 | |
Asia | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 428 | 373 | 876 | 808 | |
Intersegment sales | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | (521) | (511) | (987) | (975) | |
Intersegment sales | North America | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | (70) | (53) | (137) | (127) | |
Intersegment sales | EMEA | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | (26) | (25) | (64) | (44) | |
Intersegment sales | Latin America | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | (341) | (356) | (627) | (666) | |
Intersegment sales | Asia | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | (84) | (77) | (159) | (138) | |
Operating Segments | North America | |||||
Segment Reporting Information [Line Items] | |||||
Depreciation and amortization | 47 | 54 | 96 | 107 | |
EBIT | 331 | 336 | 619 | 611 | |
Total assets | 7,364 | 7,364 | 6,956 | ||
Capital expenditures | 41 | 32 | 64 | 67 | |
Operating Segments | EMEA | |||||
Segment Reporting Information [Line Items] | |||||
Depreciation and amortization | 57 | 41 | 114 | 89 | |
EBIT | (25) | (2) | (52) | (25) | |
Total assets | 7,594 | 7,594 | 8,781 | ||
Capital expenditures | 34 | 23 | 40 | 36 | |
Operating Segments | Latin America | |||||
Segment Reporting Information [Line Items] | |||||
Depreciation and amortization | 26 | 32 | 64 | 63 | |
EBIT | 33 | 57 | 90 | 123 | |
Total assets | 4,652 | 4,652 | 4,847 | ||
Capital expenditures | 18 | 34 | 31 | 57 | |
Operating Segments | Asia | |||||
Segment Reporting Information [Line Items] | |||||
Depreciation and amortization | 16 | 15 | 34 | 32 | |
EBIT | 43 | (30) | 62 | (6) | |
Total assets | 2,703 | 2,703 | 2,751 | ||
Capital expenditures | 16 | 24 | 27 | 33 | |
Other/ Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | (18) | (45) | (37) | (94) | |
Depreciation and amortization | 16 | 14 | 31 | 28 | |
EBIT | (944) | (110) | (1,130) | (213) | |
Total assets | (3,243) | (3,243) | $ (3,297) | ||
Capital expenditures | $ 19 | $ 9 | $ 32 | $ 17 |
Assets and Liabilities Held f70
Assets and Liabilities Held for Sale (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Earnings before income taxes | $ (609) | $ 212 | $ (500) | $ 410 | ||
Embraco | Disposal Group, Held-for-sale, Not Discontinued Operations | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Accounts receivable, net of allowance of $8 and $7, respectively | 225 | 225 | $ 202 | |||
Inventories | 199 | 199 | 215 | |||
Prepaid and other current assets | 47 | 47 | 61 | |||
Property, net of accumulated depreciation of $699 and $740, respectively | 354 | 354 | 390 | |||
Other noncurrent assets | 59 | 59 | 36 | |||
Total assets | 884 | 884 | 904 | |||
Accounts payable | 352 | 352 | 392 | |||
Accrued expenses | 25 | 25 | 25 | |||
Accrued advertising and promotion | 15 | 15 | 24 | |||
Other current liabilities | 96 | 96 | 42 | |||
Other noncurrent liabilities | 37 | 37 | 45 | |||
Total liabilities | 525 | 525 | 528 | |||
Allowance for doubtful accounts receivable | 8 | 8 | 7 | |||
Depreciation and amortization | 699 | $ 740 | ||||
Earnings before income taxes | $ 9 | $ 25 | $ 16 | $ 65 | ||
Scenario, Forecast | Embraco | Disposal Group, Held-for-sale, Not Discontinued Operations | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Disposal group, consideration | $ 1,080 |
Goodwill and Other Intangible71
Goodwill and Other Intangibles - Schedule of Goodwill (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2018 | Jun. 30, 2018 | |
Goodwill [Roll Forward] | ||
Beginning balance December 31, 2017 | $ 3,118 | |
Reassignment of goodwill | 0 | |
Impairment | (579) | |
Reclassification of asset held for sale | (4) | |
Currency translation adjustment | (36) | |
Ending net balance June 30, 2018 | $ 2,499 | 2,499 |
North America | ||
Goodwill [Roll Forward] | ||
Beginning balance December 31, 2017 | 1,755 | |
Reassignment of goodwill | (54) | |
Impairment | 0 | |
Reclassification of asset held for sale | 0 | |
Currency translation adjustment | (2) | |
Ending net balance June 30, 2018 | 1,699 | 1,699 |
EMEA | ||
Goodwill [Roll Forward] | ||
Beginning balance December 31, 2017 | 920 | |
Reassignment of goodwill | 0 | |
Impairment | (579) | (579) |
Reclassification of asset held for sale | 0 | |
Currency translation adjustment | (26) | |
Ending net balance June 30, 2018 | 315 | 315 |
Latin America | ||
Goodwill [Roll Forward] | ||
Beginning balance December 31, 2017 | 5 | |
Reassignment of goodwill | 53 | |
Impairment | 0 | |
Reclassification of asset held for sale | (4) | |
Currency translation adjustment | (1) | |
Ending net balance June 30, 2018 | 53 | 53 |
Asia | ||
Goodwill [Roll Forward] | ||
Beginning balance December 31, 2017 | 438 | |
Reassignment of goodwill | 1 | |
Impairment | 0 | |
Reclassification of asset held for sale | 0 | |
Currency translation adjustment | (7) | |
Ending net balance June 30, 2018 | $ 432 | $ 432 |
Goodwill and Other Intangible72
Goodwill and Other Intangibles - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2018 | Jun. 30, 2018 | |
Goodwill [Line Items] | ||
Goodwill, impairment loss | $ 579 | |
EMEA | ||
Goodwill [Line Items] | ||
Goodwill, impairment loss | $ 579 | $ 579 |
Impairment of intangible assets (excluding goodwill) | $ 168 |
Goodwill and Other Intangible73
Goodwill and Other Intangibles - Schedule of Other Intangible Assets (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Gross Carrying Amount | ||
Total other intangible assets, finite lives | $ 964 | $ 1,026 |
Total other intangible assets | 2,852 | 3,067 |
Accumulated Amortization | (498) | (476) |
Net | ||
Total other intangible assets, finite lives | 466 | 550 |
Total other intangible assets | 2,354 | 2,591 |
Impairment of intangible assets, finite-lived | 60 | |
Impairment of intangible assets, indefinite-lived (excluding goodwill) | 108 | |
Trademarks | ||
Gross Carrying Amount | ||
Trademarks, indefinite lives | 1,888 | 2,041 |
Net | ||
Impairment of intangible assets, indefinite-lived (excluding goodwill) | 108 | |
Customer relationships | ||
Gross Carrying Amount | ||
Total other intangible assets, finite lives | 635 | 639 |
Accumulated Amortization | (311) | (297) |
Net | ||
Total other intangible assets, finite lives | $ 324 | 342 |
Customer relationships | Minimum | ||
Net | ||
Finite-lived intangible asset, useful life | 3 years | |
Customer relationships | Maximum | ||
Net | ||
Finite-lived intangible asset, useful life | 16 years | |
Patents and other | ||
Gross Carrying Amount | ||
Total other intangible assets, finite lives | $ 329 | 387 |
Accumulated Amortization | (187) | (179) |
Net | ||
Total other intangible assets, finite lives | 142 | $ 208 |
Impairment of intangible assets, finite-lived | $ 60 | |
Patents and other | Minimum | ||
Net | ||
Finite-lived intangible asset, useful life | 1 year | |
Patents and other | Maximum | ||
Net | ||
Finite-lived intangible asset, useful life | 41 years |