Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 19, 2019 | |
Entity Information [Line Items] | ||
Entity Registrant Name | WHIRLPOOL CORP /DE/ | |
Entity Central Index Key | 0000106640 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2019 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Document Transition Report | false | |
Entity File Number | 1-3932 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 38-1490038 | |
Entity Address, Address Line One | 2000 North M-63 | |
Entity Address, City or Town | Benton Harbor, | |
Entity Address, State or Province | MI | |
Entity Address, Postal Zip Code | 49022-2692 | |
City Area Code | 269 | |
Local Phone Number | 923-5000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 63,527,409 | |
New York Stock Exchange | Common Stock | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common stock, par value $1.00 per share | |
Trading Symbol | WHR | |
Security Exchange Name | NYSE | |
New York Stock Exchange | Senior Notes | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | 0.625% Senior Notes due 2020 | |
Trading Symbol | WHR 20 | |
Security Exchange Name | NYSE | |
Chicago Stock Exchange | Common Stock | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common stock, par value $1.00 per share | |
Trading Symbol | WHR | |
Security Exchange Name | CHX |
Consolidated Condensed Statemen
Consolidated Condensed Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net sales | $ 5,186 | $ 5,140 | $ 9,946 | $ 10,051 |
Expenses | ||||
Cost of products sold | 4,254 | 4,260 | 8,202 | 8,359 |
Gross margin | 932 | 880 | 1,744 | 1,692 |
Selling, general and administrative | 584 | 541 | 1,089 | 1,046 |
Intangible amortization | 18 | 20 | 36 | 40 |
Restructuring costs | 60 | 44 | 86 | 188 |
Impairment of goodwill and other intangibles | 0 | 747 | 0 | 747 |
Loss on disposal of businesses | 79 | 0 | 79 | 0 |
Operating profit (loss) | 191 | (472) | 454 | (329) |
Other (income) expense | ||||
Interest and sundry (income) expense | (63) | 90 | (193) | 82 |
Interest expense | 52 | 47 | 103 | 89 |
Earnings (loss) before income taxes | 202 | (609) | 544 | (500) |
Income tax expense (benefit) | 130 | 30 | (2) | 45 |
Net earnings (loss) | 72 | (639) | 546 | (545) |
Less: Net earnings available to noncontrolling interests | 5 | 18 | 8 | 18 |
Net earnings available to Whirlpool | $ 67 | $ (657) | $ 538 | $ (563) |
Per share of common stock | ||||
Basic net earnings (loss) available to Whirlpool (USD per share) | $ 1.04 | $ (9.50) | $ 8.42 | $ (8.03) |
Diluted net earnings (loss) available to Whirlpool (USD per share) | 1.04 | (9.50) | 8.35 | (8.03) |
Dividends declared (USD per share) | $ 1.20 | $ 1.15 | $ 2.35 | $ 2.25 |
Weighted-average shares outstanding (in millions) | ||||
Basic (in shares) | 63.8 | 69.1 | 63.9 | 70.1 |
Diluted (in shares) | 64.3 | 69.1 | 64.4 | 70.1 |
Comprehensive income (loss) | $ 16 | $ (802) | $ 583 | $ (703) |
Consolidated Condensed Balance
Consolidated Condensed Balance Sheets - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash and cash equivalents | $ 1,178 | $ 1,498 |
Accounts receivable, net of allowance of $145 and $136, respectively | 2,387 | 2,210 |
Inventories | 3,008 | 2,533 |
Prepaid and other current assets | 961 | 839 |
Assets held for sale | 969 | 818 |
Total current assets | 8,503 | 7,898 |
Property, net of accumulated depreciation of $6,361 and $6,190, respectively | 3,318 | 3,414 |
Right of use assets | 788 | 0 |
Goodwill | 2,450 | 2,451 |
Other intangibles, net of accumulated amortization of $565 and $527, respectively | 2,260 | 2,296 |
Deferred income taxes | 2,147 | 1,989 |
Other noncurrent assets | 389 | 299 |
Total assets | 19,855 | 18,347 |
Current liabilities | ||
Accounts payable | 4,270 | 4,487 |
Accrued expenses | 634 | 690 |
Accrued advertising and promotions | 652 | 827 |
Employee compensation | 372 | 393 |
Notes payable | 2,157 | 1,034 |
Current maturities of long-term debt | 573 | 947 |
Other current liabilities | 878 | 811 |
Liabilities held for sale | 558 | 489 |
Total current liabilities | 10,094 | 9,678 |
Noncurrent liabilities | ||
Long-term debt | 4,155 | 4,046 |
Pension benefits | 586 | 637 |
Postretirement benefits | 314 | 318 |
Lease liabilities | 660 | 0 |
Other noncurrent liabilities | 379 | 463 |
Total noncurrent liabilities | 6,094 | 5,464 |
Stockholders' equity | ||
Common stock, $1 par value, 250 million shares authorized, 112 million shares issued, and 63 million and 64 million shares outstanding, respectively | 112 | 112 |
Additional paid-in capital | 2,790 | 2,768 |
Retained earnings | 7,380 | 6,933 |
Accumulated other comprehensive loss | (2,657) | (2,695) |
Treasury stock, 49 million and 48 million shares, respectively | (4,876) | (4,827) |
Total Whirlpool stockholders' equity | 2,749 | 2,291 |
Noncontrolling interests | 918 | 914 |
Total stockholders' equity | 3,667 | 3,205 |
Total liabilities and stockholders' equity | $ 19,855 | $ 18,347 |
Consolidated Condensed Balanc_2
Consolidated Condensed Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 145 | $ 136 |
Accumulated depreciation | 6,361 | 6,190 |
Accumulated amortization | $ 565 | $ 527 |
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) | 63,000,000 | 64,000,000 |
Treasury stock (in shares) | 49,000,000 | 48,000,000 |
Consolidated Condensed Statem_2
Consolidated Condensed Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Operating activities | ||
Net earnings (loss) | $ 546 | $ (545) |
Adjustments to reconcile net earnings to cash provided by (used in) operating activities: | ||
Depreciation and amortization | 302 | 339 |
Impairment of goodwill and other intangibles | 0 | 747 |
Loss on disposal of businesses | 79 | 0 |
Changes in assets and liabilities: | ||
Accounts receivable | (251) | (103) |
Inventories | (574) | (399) |
Accounts payable | (182) | (287) |
Accrued advertising and promotions | (180) | (226) |
Accrued expenses and current liabilities | (41) | 191 |
Taxes deferred and payable, net | (179) | (66) |
Accrued pension and postretirement benefits | (39) | (46) |
Employee compensation | 7 | (31) |
Other | (309) | (158) |
Cash used in operating activities | (821) | (584) |
Investing activities | ||
Capital expenditures | (197) | (194) |
Proceeds from sale of assets and business | 5 | 27 |
Proceeds from held-to-maturity securities | 0 | 60 |
Investment in related businesses | 0 | (2) |
Other | (3) | 0 |
Cash used in investing activities | (195) | (109) |
Financing activities | ||
Net proceeds from borrowings of long-term debt | 697 | 700 |
Repayments of long-term debt | (943) | (376) |
Net proceeds from short-term borrowings | 1,119 | 1,398 |
Dividends paid | (149) | (159) |
Repurchase of common stock | (50) | (1,001) |
Common stock issued | 4 | 7 |
Cash provided by financing activities | 678 | 569 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 9 | (42) |
Decrease in cash, cash equivalents and restricted cash | (329) | (166) |
Cash, cash equivalents and restricted cash at beginning of period | 1,538 | 1,293 |
Cash, cash equivalents and restricted cash at end of period | $ 1,209 | $ 1,127 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2019 | |
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, 2018 . 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. 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, 2019, we adopted Accounting Standards Update (“ASU”) No. 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities." The adoption of this standard did not have a material impact on our Consolidated Condensed Financial Statements, however we have expanded our use of hedge accounting to hedge contractually specified components in commodity contracts designated as cash flow hedges. For additional information on the required disclosures related to the impact of adopting this standard, see Note 10 to the Consolidated Condensed Financial Statements. On January 1, 2019, we adopted ASU No. 2016-02, "Leases (Topic 842)" and as part of that process the Company made the following elections: • The Company did not elect the hindsight practical expedient, for all leases. • The Company elected the package of practical expedients and, as a result, did not reassess prior conclusions related to contracts containing leases, lease classification and initial direct costs for all leases. • In March 2018, the FASB approved an optional transition method that allows companies to use the effective date as the date of initial application on transition. The Company elected this transition method, and as a result, did not adjust its comparative period financial information or make the newly required lease disclosures for periods before the effective date. • The Company elected to make the accounting policy election for short-term leases resulting in lease payments being recorded as an expense on a straight-line basis over the lease term. • The Company elected to not separate lease and non-lease components for all leases. • The Company did not elect the land easement practical expedient. Upon adoption, we recognized the cumulative effect of initially applying this new standard resulting in the addition of approximately $858 million of right of use assets, of which $46 million were classified as held for sale, as well as the corresponding short-term and long-term lease liabilities. Additionally, the Company has sold and leased back a group of properties in our Latin American region and, upon adoption, the Company recorded a cumulative adjustment to retained earnings of approximately $82 million related to deferred gains associated with these transactions. For additional information on the required disclosures related to the impact of adopting this standard, see Note 3 to the Consolidated Condensed Financial Statements. For additional information on held for sale assets, see Note 16 to the Consolidated Condensed Financial Statements. All other newly issued and effective accounting standards during 2019 were not relevant or material to the Company. Accounting Pronouncements Issued But Not Yet Effective In November 2018, the FASB issued ASU 2018-18, "Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606." The new standard clarifies that certain transactions between participants in a collaborative arrangement should be accounted for under Topic 606 when the counterparty is a customer for a good or service that is a distinct unit of account. The amendments also preclude entities from presenting consideration from transactions with a collaborator that is not a customer together with revenue recognized from contracts with customers. The new standard is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted in any interim period for entities that have adopted ASC 606. The standard should be applied retrospectively to the period when initially adopted ASC 606. The Company is currently evaluating the impact of adopting this guidance. 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 2018-13 Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement January 1, 2020 2018-14 Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans January 1, 2021 2018-15 Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred In a Cloud Computing Arrangement That Is a Service Contract January 1, 2020 2018-17 Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities January 1, 2020 All other issued and not yet effective accounting standards are not relevant to the Company. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | REVENUE RECOGNITION 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 geographic regions, see Note 15 to the Consolidated Condensed Financial Statements. Three Months Ended June 30, Six Months Ended June 30, Millions of dollars 2019 2018 2019 2018 Major product categories: Laundry $ 1,492 $ 1,463 $ 2,975 $ 3,025 Refrigeration 1,656 1,606 3,019 2,897 Cooking 1,075 1,089 2,119 2,138 Dishwashing 398 412 762 808 Total major product category net sales $ 4,621 $ 4,570 $ 8,875 $ 8,868 Compressors 323 285 635 581 Spare parts and warranties 180 249 371 522 Other 62 36 65 80 Total net sales $ 5,186 $ 5,140 $ 9,946 $ 10,051 The impact to revenue related to prior period performance obligations was not material for the three and six months ended June 30, 2019 . Bad Debt Expense Bad debt expense was not material for the three and six months ended June 30, 2019 . |
Leases
Leases | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Leases | LEASES Leases We lease certain manufacturing facilities, warehouses/distribution centers, office space, land, vehicles, and equipment. At lease inception, we determine the lease term by assuming the exercise of those renewal options that are reasonably assured. Leases with an initial term of 12 months or less are not recorded in the Consolidated Condensed Balance Sheets and we recognize lease expense for these leases on a straight-line basis over the lease term. The Company has operating lease costs of approximately $104 million for the six months ended June 30, 2019 . As of June 30, 2019 , we have approximately $82 million of non-cancelable operating lease commitments, primarily for warehouses, that have not yet commenced. These operating leases will commence between fiscal year 2019 and fiscal year 2020 with lease terms of up to 15 years . At June 30, 2019 , we have no financing leases and we have approximately $993 million of non-cancelable operating lease commitments, excluding variable consideration. The undiscounted annual future minimum lease payments are summarized by year in the table below: Maturity of Lease Liabilities Operating Leases (in millions) 2019 $ 99 2020 179 2021 148 2022 124 2023 112 After 2023 331 Total lease payments $ 993 Less: interest 144 Present value of lease liabilities (1) $ 849 (1) Present value of lease liabilities includes liabilities held for sale of $36 million . The long-term portion of the lease liabilities included in the amounts above is $ 660 million , excluding held for sale liabilities, and the remainder of our lease liabilities, excluding held for sale liabilities, are included in other current liabilities in the Consolidated Condensed Balance Sheets. At June 30, 2019 , the weighted average remaining lease term and weighted average discount rate for operating leases was 7 years and 5% , respectively. During the six months ended June 30, 2019 the cash paid for amounts included in the measurement of the liabilities and the operating cash flows was $100 million . The right of use assets obtained in exchange for new liabilities was $61 million in the six months ended . As the Company's lease agreements normally do not provide an implicit interest rate, we apply the Company's incremental borrowing rate based on the information available at commencement date in determining the present value of future lease payments. Relevant information used in determining the Company’s incremental borrowing rate includes the duration of the lease, location of the lease, and the Company’s credit risk relative to risk-free market rates. Many of our leases include renewal options that can extend the lease term. The execution of those renewal options is at our sole discretion and reflected in the lease term when they are reasonably certain to be exercised. Certain leases also include options to purchase the underlying asset at fair market value. If leased assets have leasehold improvements, typically the depreciable life of those leasehold improvements are limited by the expected lease term. Additionally, certain lease agreements include lease payment adjustments for inflation. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. We rent or sublease certain real estate to third parties. Our sublease portfolio primarily consists of operating leases within our warehouses, resulting in a nominal amount of sublease income in 2019 . |
Cash, Cash Equivalents and Rest
Cash, Cash Equivalents and Restricted Cash | 6 Months Ended |
Jun. 30, 2019 | |
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: June 30, Millions of dollars 2019 2018 Cash and cash equivalents as presented in our Consolidated Condensed Balance Sheets $ 1,178 $ 1,057 Restricted cash included in prepaid and other current assets (1) 25 47 Restricted cash included in other noncurrent assets (1) — 23 Cash included in assets held for sale 6 — Cash, cash equivalents and restricted cash as presented in our Consolidated Condensed Statements of Cash Flows $ 1,209 $ 1,127 (1) Change in restricted cash reflects realization of foreign currency translation adjustments of $(1) million and $1 million , respectively, for the six months ended June 30, 2019 and 2018 compared to the prior fiscal year end. December 31, Millions of dollars 2018 2017 Cash and cash equivalents as presented in our Consolidated Balance Sheets $ 1,498 $ 1,196 Restricted cash included in prepaid and other current assets 40 48 Restricted cash included in other noncurrent assets — 49 Cash, cash equivalents and restricted cash as presented in our Consolidated Statements of Cash Flows $ 1,538 $ 1,293 |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2019 | |
Inventory, Net [Abstract] | |
Inventories | INVENTORIES The following table summarizes our inventory at June 30, 2019 and December 31, 2018 : Millions of dollars June 30, 2019 December 31, 2018 Finished products $ 2,547 $ 2,076 Raw materials and work in process 618 617 3,165 2,693 Less: excess of FIFO cost over LIFO cost (157 ) (160 ) Total inventories $ 3,008 $ 2,533 LIFO inventories represented 46% and 41% of total inventories at June 30, 2019 and December 31, 2018 , respectively. |
Property, Plant & Equipment
Property, Plant & Equipment | 6 Months Ended |
Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant & Equipment | PROPERTY, PLANT & EQUIPMENT The following table summarizes our property, plant and equipment at June 30, 2019 and December 31, 2018 : Millions of dollars June 30, 2019 December 31, 2018 Land $ 101 $ 102 Buildings 1,607 1,593 Machinery and equipment 7,971 7,909 Accumulated depreciation (6,361 ) (6,190 ) Property, plant and equipment, net $ 3,318 $ 3,414 During the six months ended June 30, 2019 , we disposed of buildings, machinery and equipment no longer in use with a net book value of $6 million and the loss on the disposal was not material. |
Financing Arrangements
Financing Arrangements | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Financing Arrangements | FINANCING ARRANGEMENTS Debt Offering On February 26, 2019, Whirlpool Corporation, completed a bond offering of $700 million principal amount of 4.75% Senior Notes due in 2029. 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.333-224381) previously filed with the Securities and Exchange Commission. Debt Repayment On February 27, 2019, we repaid €600 million (approximately $673 million ) pursuant to our June 5, 2018 term loan agreement with Wells Fargo Bank, National Association, as Administrative Agent, and certain other financial institutions (the "Whirlpool EMEA Finance Term Loan"), representing full repayment of amounts borrowed under the Whirlpool EMEA Finance Term Loan. On March 1, 2019, $250 million of 2.40% senior notes matured and were repaid. On April 26, 2018, $363 million of 4.50% senior notes matured and were repaid. Term Loan Agreements On April 23, 2018 the Company entered into, and on May 14, 2018 and August 30, 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 in our Consolidated Condensed Balance Sheets. The Term Loan Agreement had a maturity date of April 22, 2019. On March 27, 2019 the Company extended the Termination Date of the Term Loan Agreement for an additional six months to October 23, 2019. The Company also has agreed to repay the outstanding term loan amounts with the net cash proceeds received from the closing of the Embraco sale transaction which will occur in the third quarter of 2019. The Embraco sale transaction closed on July 1, 2019. 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, as amended, contains customary covenants and warranties including, among other things, a debt to capitalization ratio of less than or equal to 0.65 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 or with or between subsidiaries; (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. On March 28, 2019, the Amended Long-Term Facility was amended to add one of the Company's U.K. subsidiaries as an additional borrower. 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, as amended, contains customary covenants and warranties including, among other things, a debt to capitalization ratio of less than or equal to 0.65 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 or with or between subsidiaries; (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 $284 million at June 30, 2019 and $286 million at December 31, 2018 ), maturing on September 26, 2019. The committed credit facilities in Brazil provide borrowings up to 1.0 billion Brazilian reais (approximately $261 million at June 30, 2019 and $258 million at December 31, 2018 ), maturing through 2022. We had no borrowings outstanding under the committed credit facilities at June 30, 2019 or December 31, 2018 . Notes Payable Notes payable, which consist of short-term borrowings payable to banks or commercial paper, are generally used to fund working capital requirements. The fair value of our notes payable approximates the carrying amount due to the short maturity of these obligations. The following table summarizes the carrying value of notes payable at June 30, 2019 and December 31, 2018 : Millions of dollars June 30, 2019 December 31, 2018 Commercial paper $ 947 $ — Short-term borrowings due to banks 1,210 1,034 Total notes payable $ 2,157 $ 1,034 Transfers and Servicing of Financial Assets In an effort to manage economic and geographic trade customer risk, from time to time, the Company will transfer, primarily without recourse, accounts receivable balances of certain customers to financial institutions resulting in a nominal impact recorded in interest and sundry (income) expense. These transactions are accounted for as sales of the receivables resulting in the receivables being de-recognized from the Consolidated Condensed Balance Sheets. These transfers primarily do not require continuing involvement from the Company, however certain arrangements include servicing of transferred receivables by Whirlpool. Outstanding accounts receivable transferred under arrangements where the Company continues to service the transferred asset were $255 million and $161 million as of June 30, 2019 and December 31, 2018 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
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 and related claims in various jurisdictions and certain other claims remain pending. Whirlpool has agreed to retain potential liabilities related to this matter following closing of the Embraco sale transaction. We continue to defend these actions. 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 in any particular reporting period. BEFIEX Credits and Other Brazil Tax Matters In previous years, our Brazilian operations earned tax credits under the Brazilian government's export incentive program (BEFIEX). These credits reduced Brazilian federal excise taxes on domestic sales. 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 were reflected in interest and sundry (income) expense as they were monetized in 2017 and 2018. 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 ruling has been appealed by the Brazilian government. Based on this ruling, we were entitled to recognize $72 million in additional credits, which were recognized in prior periods. As of June 30, 2019, 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 believe these tax assessments are without merit and are vigorously defending 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, 2019 . 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 $499 million as of June 30, 2019 ). 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 ("IPI Amnesty") which provided extended payment terms and reduced penalties and interest to encourage tax payers to resolve this and certain other disputed tax credit amounts. As permitted by the program, we elected to settle certain debts through the use of other existing tax credits and recorded charges of approximately $34 million in 2009 associated with these matters. In July 2012, the Brazilian revenue authority notified us that a portion of our proposed settlement was rejected and we received tax assessments of 251 million Brazilian reais (approximately $66 million as of June 30, 2019 ), reflecting interest and penalties to date. We believe these tax assessments are without merit and we are vigorously defending our position. 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. Because the IPI Amnesty case is moving faster than the BEFIEX taxability case, we could be required to pay the IPI Amnesty assessment before obtaining a final decision in the BEFIEX taxability case. 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 remanded 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, 2019 , 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 210 million Brazilian reais (approximately $55 million as of June 30, 2019 ). We believe these tax assessments are without merit and are vigorously defending our positions. 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, 2019 . In addition to the IPI tax credit and CFC Tax matters noted above, other assessments issued to us by the Brazilian tax authorities related to non-income and income tax matters, and other matters, 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. Litigation is inherently unpredictable and the conclusion of these matters may take many years to ultimately resolve. Amounts at issue in potential future litigation could increase as a result of interest and penalties in future periods. 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. ICMS Credits We also filed legal actions in Brazil 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 at December 31, 2017). In the first quarter of 2019, we received a favorable decision in the largest of these ICMS legal actions. This decision is final and not subject to appeals. Based on the opinion of our tax and legal advisors, we recognized a gain of approximately $84 million , after related taxes and fees, during the first quarter in connection with this decision. This amount reflects approximately $142 million in indirect tax credits ("credits") that we are entitled to monetize in future periods, offset by approximately $43 million and $15 million in taxes and fees, respectively, that we anticipate will be paid in 2019. In the second quarter of 2019, we received favorable final, non-appealable decisions in two smaller ICMS legal actions. Based on the opinion of our tax and legal advisors, we recognized a gain of approximately $35 million , after related taxes and fees, during the second quarter in connection with this decision. This amount reflects approximately $54 million in credits that we are entitled to monetize in future periods, offset by approximately $18 million and $1 million in taxes and fees, respectively, that we anticipate will be paid in 2019. The ICMS credits and related fees are recorded in interest and sundry (income) expense in our Consolidated Condensed Statements of Comprehensive Income. The Brazilian tax authorities have sought clarification before the Brazilian Supreme Court of certain matters, including the amount of these credits (i.e., the gross rate or net credit amount), and certain other matters that could affect the rights of Brazilian taxpayers regarding these credits. If the Brazilian tax authorities challenge our rights to these credits, we may become subject to new litigation related to credits already monetized and/or disallowance of further credit monetization. Based on the opinions of our tax and legal advisors, we have not accrued any amounts related to potential future litigation regarding these credits. The Company has similar cases with other Brazilian subsidiaries related to approximately $15 million in potential ICMS credits for which we have yet to receive a ruling. There is substantial uncertainty about both the amount and timing of any recovery, and as such, no amounts have been recognized. 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. On June 26, 2018, Whirlpool France SAS, a subsidiary of the Company, 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. In the third quarter of 2018, we accrued €95 million after entering into a preliminary settlement agreement with the FCA. On December 6, 2018, the FCA's college issued its final decision, setting the final amount of the fine at €102 million , with €56 million attributable to Whirlpool's France business and €46 million attributable to Indesit's France business. Payment of the Indesit portion of the FCA fine ( €46 million , or approximately $52 million at March 31, 2019) was made in the first quarter of 2019 and payment of the Whirlpool portion of the FCA fine ( €56 million , or approximately $63 million ) was made in April 2019. Under the terms of a settlement with Indesit's former owners, the former owners paid €17 million out of escrow to the Company in the second quarter of 2019. The second part of the FCA investigation, which is expected to focus primarily on manufacturer interactions with retailers, is ongoing. 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. Trade Customer Insolvency In 2017, Alno AG and certain affiliated companies filed for insolvency protection in Germany. Bauknecht Hausgeräte GmbH, a subsidiary of the Company, was a long-standing supplier to Alno and certain of its affiliated companies. The Company was also a former indirect minority shareholder of Alno. In August 2018, the insolvency trustee asserted €174.5 million in clawback and related claims against Bauknecht. We are reviewing the claims made by the insolvency trustee. Based on our preliminary understanding of the facts and the applicable law, we expect to vigorously defend against the claims. Although it is currently not possible to assess the impact this matter may have on our Consolidated Condensed Financial Statements, the resolution of this matter could have a material adverse effect on our financial statements in any particular reporting period. Other Litigation We are currently defending against two lawsuits that have been certified for class action treatment in U.S. federal court, relating to two top-load washing machine models. We believe the lawsuits are without merit and are vigorously defending them. Given the preliminary stage of the proceedings, we cannot reasonably estimate a range of loss, if any, at this time. The resolution of this matter could have a material adverse effect on our financial statements in any particular reporting period. We are currently vigorously defending a number of other lawsuits related to the manufacture and sale of our products which include class action allegations, and may become involved in similar actions. 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 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 liability reserves for the periods presented: Product Warranty Millions of dollars 2019 2018 Balance at January 1 $ 268 $ 277 Issuances/accruals during the period 128 145 Settlements made during the period/other (143 ) (147 ) Balance at June 30 $ 253 $ 275 Current portion $ 178 $ 200 Non-current portion 75 75 Total $ 253 $ 275 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 certain 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. In the second quarter of 2019, we incurred approximately $12 million of additional product warranty expense related to our previously disclosed legacy Indesit dryer corrective action campaign in the UK. We continue to cooperate with the UK regulator, which continues to review the overall effectiveness of the modification program. Guarantees We have guarantee arrangements in a Brazilian subsidiary. For certain credit worthy customers, 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 assume the line of credit and satisfy the obligation with the bank. At June 30, 2019 and December 31, 2018 , the guaranteed amounts totaled $107 million and $146 million , respectively. The fair value of these guarantees were nominal at June 30, 2019 and December 31, 2018 . 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 $2.6 billion and $3.5 billion at June 30, 2019 and December 31, 2018 , respectively. Our total short-term outstanding bank indebtedness under guarantees was nominal at June 30, 2019 and $21 million at December 31, 2018 . |
Pension and Other Postretiremen
Pension and Other Postretirement Benefit Plans | 6 Months Ended |
Jun. 30, 2019 | |
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 2019 2018 2019 2018 2019 2018 Service cost $ — $ — $ 2 $ 2 $ 1 $ 1 Interest cost 31 29 6 6 4 3 Expected return on plan assets (45 ) (42 ) (8 ) (9 ) — — Amortization: Actuarial loss 12 13 2 2 — — Prior service credit — — — — (3 ) (2 ) Settlement and curtailment (gain) loss — — — (3 ) — — Net periodic benefit cost (credit) $ (2 ) $ — $ 2 $ (2 ) $ 2 $ 2 Six Months Ended June 30, United States Foreign Other Postretirement Millions of dollars 2019 2018 2019 2018 2019 2018 Service cost $ 1 $ 1 $ 3 $ 3 $ 3 $ 3 Interest cost 62 59 12 12 8 7 Expected return on plan assets (89 ) (85 ) (15 ) (17 ) — — Amortization: Actuarial loss 24 26 4 5 — — Prior service credit (1 ) (1 ) — — (5 ) 1 Settlement and curtailment (gain) loss — — 1 (3 ) (7 ) — Net periodic benefit cost (credit) $ (3 ) $ — $ 5 $ — $ (1 ) $ 11 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 2019 2018 2019 2018 2019 2018 Operating profit (loss) $ — $ — $ 2 $ 2 $ 1 $ 1 Interest and sundry (income) expense (2 ) — — (4 ) 1 1 Net periodic benefit cost $ (2 ) $ — $ 2 $ (2 ) $ 2 $ 2 Six Months Ended June 30, United States Foreign Other Postretirement Millions of dollars 2019 2018 2019 2018 2019 2018 Operating profit (loss) $ 1 $ 1 $ 3 $ 3 $ 3 $ 3 Interest and sundry (income) expense (4 ) (1 ) 2 (3 ) (4 ) 8 Net periodic benefit cost $ (3 ) $ — $ 5 $ — $ (1 ) $ 11 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 $89 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. On February 15, 2019, we received a favorable decision from the United States Court of Appeals for the Sixth Circuit, which held that the benefits at issue are not vested for life and may be altered. On April 4, 2019, the Sixth Circuit Court issued a mandate to the district court, requiring it to take steps to implement this decision. The impact to the financial statements in 2019 related to this decision was not material and we do not expect a material financial impact in future periods. |
Hedges and Derivative Financial
Hedges and Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2019 | |
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. The fair value of the hedge asset or liability is presented in either other current assets/liabilities or other noncurrent assets/liabilities in the Consolidated Condensed Balance Sheets and in other within cash used in operating activities in the Consolidated Condensed Statements of Cash Flows. 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 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, 2019 there was $700 million notional amount of outstanding interest rate swap agreements. At December 31, 2018 there were no outstanding interest rate swap agreements. We enter into swap 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, 2019 and December 31, 2018 : Notional (Local) Notional (USD) Current Maturity Instrument 2019 2018 2019 2018 Senior note - 0.625% € 500 € 500 $ 569 $ 573 March 2020 Commercial Paper € 296 € — $ 337 $ — July 2019 Foreign exchange forwards/options MXN 7,200 MXN 7,200 $ 375 $ 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 in our Consolidated Condensed Statements of Comprehensive Income. As of June 30, 2019 and December 31, 2018 , there was no ineffectiveness on hedges designated as net investment hedges. The following table summarizes our outstanding derivative contracts and their effects in our Consolidated Condensed Balance Sheets at June 30, 2019 and December 31, 2018 : Fair Value of Type (1) Notional Amount Hedge Assets Hedge Liabilities Maximum Term (Months) Millions of dollars 2019 2018 2019 2018 2019 2018 2019 2018 Derivatives accounted for as hedges Foreign exchange forwards/options $ 3,108 $ 3,126 $ 43 $ 49 $ 44 $ 48 (CF/NI) 38 44 Commodity swaps/options 235 216 4 1 21 27 (CF) 24 30 Interest rate derivatives 700 — 14 — 36 — (CF) 116 0 Total derivatives accounted for as hedges $ 61 $ 50 $ 101 $ 75 Derivatives not accounted for as hedges Foreign exchange forwards/options $ 2,804 $ 4,382 $ 20 $ 27 $ 23 $ 69 N/A 15 21 Commodity swaps/options 4 3 — — — — N/A 24 0 Total derivatives not accounted for as hedges 20 27 23 69 Total derivatives $ 81 $ 77 $ 124 $ 144 Current $ 40 $ 60 $ 52 $ 95 Noncurrent 41 17 72 49 Total derivatives $ 81 $ 77 $ 124 $ 144 (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 and foreign currency debt designated as net investment hedges in our Consolidated Condensed Statements of Comprehensive Income for the periods presented: Three Months Ended June 30, Gain (Loss) (2) Cash Flow Hedges - Millions of dollars 2019 2018 Foreign exchange forwards/options $ (4 ) $ 76 Commodity swaps/options (22 ) — Interest rate derivatives (5 ) — Net Investment Hedges Foreign currency (20 ) 69 $ (51 ) $ 145 Three Months Ended June 30, Location of Gain (Loss) Reclassified from OCI into Earnings (Effective Portion) Gain (Loss) Reclassified from OCI into Earnings (Effective Portion) Cash Flow Hedges - Millions of dollars 2019 2018 Foreign exchange forwards/options Net sales $ (1 ) $ — Foreign exchange forwards/options Cost of products sold 6 (6 ) Foreign exchange forwards/options Interest and sundry (income) expense (4 ) 50 Commodity swaps/options (3) Cost of products sold $ (6 ) $ 10 Interest rate derivatives Interest expense $ 3 $ (1 ) Interest rate derivatives Interest and sundry (income) expense (8 ) — $ (10 ) $ 53 Three Months Ended June 30, Location of Gain (Loss) Recognized on Derivatives not Gain (Loss) Recognized on Derivatives not Accounted for as Hedges Derivatives not Accounted for as Hedges - Millions of dollars 2019 2018 Foreign exchange forwards/options Interest and sundry (income) expense $ (35 ) $ 134 (2) The tax impact of the cash flow hedges was $5 million and $(5) million for the three months ended June 30, 2019 and 2018. The tax impact of the net investment hedges was $5 million and $(13) million for the three months ended June 30, 2019 and 2018, respectively. (3) Cost for commodity swaps/options are recognized in cost of sales as products are sold. Six Months Ended June 30, Gain (Loss) (4) Cash Flow Hedges - Millions of dollars 2019 2018 Foreign exchange $ 24 $ 76 Commodity swaps/options — (15 ) Interest rate derivatives (22 ) Net Investment Hedges Foreign currency (19 ) 6 $ (17 ) $ 67 Six Months Ended June 30, Location of Gain (Loss) Reclassified from OCI into Earnings (Effective Portion) Gain (Loss) Reclassified from OCI into Earnings (Effective Portion) Cash Flow Hedges - Millions of dollars 2019 2018 Foreign exchange forwards/options Net sales $ (2 ) $ (2 ) Foreign exchange forwards/options Cost of products sold 11 (12 ) Foreign exchange forwards/options Interest and sundry (income) expense 33 56 Commodity swaps/options (3) Cost of products sold (9 ) 23 Interest rate derivatives Interest expense 4 (1 ) Interest rate derivatives Interest and sundry (income) expense — $ 37 $ 64 Six Months Ended June 30, Location of Gain (Loss) Recognized on Derivatives not Gain (Loss) Recognized on Derivatives not Accounted for as Hedges (2) Derivatives not Accounted for as Hedges - Millions of dollars 2019 2018 Foreign exchange forwards/options Interest and sundry (income) expense $ (6 ) $ 63 (4) The tax impact of the cash flow hedges was $10 million and $0 million for the six months ended June 30, 2019 and 2018. The tax impact of the net investment hedges was $6 million and $(1) million for the six months ended June 30, 2019 and 2018, respectively. For cash flow hedges, the amount of ineffectiveness recognized in interest and sundry (income) expense was nominal for the periods ended June 30 , 2019 and 2018 . There were no hedges designated as fair value for the periods ended June 30 , 2019 and 2018 . The net amount of unrealized gain or loss on derivative instruments included in accumulated OCI related to contracts maturing and expected to be realized during the next twelve months is nominal. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2019 | |
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 17 to the Consolidated Condensed Financial Statements for additional information on the goodwill and other intangible impairment during the second quarter of 2018. The following table summarizes the valuation of our assets and liabilities measured at fair value on a recurring basis at June 30, 2019 and December 31, 2018 are as follows: Fair Value Millions of dollars Total Cost Basis Level 1 Level 2 Total Measured at fair value on a recurring basis: 2019 2018 2019 2018 2019 2018 2019 2018 Money market funds (1) $ 634 $ 511 $ 3 $ 5 $ 631 $ 506 $ 634 $ 511 Net derivative contracts — — — — (43 ) (67 ) (43 ) (67 ) Available for sale investments 7 7 18 12 — — 18 12 (1) Money market funds are comprised primarily of government obligations or time deposits with banks and other first tier obligations. The following table summarizes the valuation of our assets measured at fair value on a non-recurring basis as of June 30, 2018: Fair Value Millions of dollars Level 3 Measured at fair value on a non-recurring basis: 2018 Assets: Goodwill (2) $ 315 Indefinite-lived intangible assets (3) 384 Definite-lived intangible assets (4) — Total level 3 assets $ 699 (2) 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 during the second quarter of 2018. (3) 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 during the second quarter of 2018. (4) 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 during the second quarter of 2018. 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 during the second quarter of 2018 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 during the second quarter of 2018 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 17 to the Consolidated Condensed Financial Statements for additional information. South Africa Disposal Group During the second quarter of 2019, we entered into an agreement to sell our South Africa business. We classified this disposal group as held for sale and recorded it at fair value because it was lower than the carrying amount. Fair value was estimated based on the cash purchase price (Level 2 input) and we recorded an impairment charge of $35 million for the write-down of the assets to the fair value of $5 million . *Whirlpool ownership of the Hotpoint brand in the EMEA and Asia Pacific regions is not affiliated with the Hotpoint brand sold in the Americas. See Note 16 to the Consolidated Condensed Financial Statements for additional information. Other Fair Value Measurements The fair value of long-term debt (including current maturities) was $4.92 billion and $4.17 billion at June 30, 2019 and December 31, 2018 , 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, 2019 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | STOCKHOLDERS' EQUITY The following table summarizes the changes in stockholders' equity for the periods presented: Whirlpool Stockholders' Equity Total Retained Earnings Accumulated Other Comprehensive Income (Loss) Treasury Stock/ Additional Paid- in-Capital Common Stock Non- Controlling Interests Balances, December 31, 2018 $ 3,205 $ 6,933 $ (2,695 ) $ (2,059 ) $ 112 $ 914 Comprehensive income Net earnings 474 471 — — — 3 Other comprehensive income 93 — 93 — — — Comprehensive income 567 471 93 — — 3 Adjustment to beginning retained earnings (1) 61 61 — — — — Stock issued (repurchased) (40 ) — — (40 ) — — Dividends declared (74 ) (74 ) — — — — Balances, March 31, 2019 3,719 7,391 (2,602 ) (2,099 ) 112 917 Comprehensive income Net earnings 72 67 — — — 5 Other comprehensive income (56 ) — (55 ) — — (1 ) Comprehensive income 16 67 (55 ) — — 4 Stock issued (repurchased) 13 — — 13 — — Dividends declared (81 ) (78 ) — — — (3 ) Balances, June 30, 2019 3,667 7,380 (2,657 ) (2,086 ) 112 918 (1) Increase to beginning retained earnings is due to the adoption of ASU 2016-02 [increase of approximately $61 million (net of tax)]. For additional information regarding the adoption of this accounting standard, see Notes 1 and 3 to the Consolidated Condensed Financial Statements. Whirlpool Stockholders' Equity Total Retained Earnings Accumulated Other Comprehensive Income (Loss) Treasury Stock/ Additional Paid- in-Capital Common Stock Non- Controlling Interests Balances, December 31, 2017 $ 5,128 $ 7,352 $ (2,331 ) $ (935 ) $ 112 $ 930 Comprehensive income Net earnings 94 94 — — — — Other comprehensive income 5 — 4 — — 1 Comprehensive income 99 94 4 — — 1 Adjustment to beginning retained earnings (2) 72 72 — — — — Adjustment to beginning accumulated other comprehensive loss (17 ) — (17 ) — — — Stock issued (repurchased) 16 — — 16 — — Dividends declared (78 ) (78 ) — — — — Balances, March 31, 2018 5,220 7,440 (2,344 ) (919 ) 112 931 Comprehensive income Net earnings (639 ) (657 ) — — — 18 Other comprehensive income (163 ) $ — (162 ) $ — $ — $ (1 ) Comprehensive income (802 ) (657 ) (162 ) — — 17 Stock issued (repurchased) (990 ) $ — — $ (990 ) $ — $ — Dividends declared (84 ) (82 ) — — — (2 ) Balances, June 30, 2018 3,344 6,701 (2,506 ) (1,909 ) 112 946 (2) 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 ]. 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, 2019 2018 Millions of dollars Pre-tax Tax Effect Net Pre-tax Tax Effect Net Currency translation adjustments (3) $ (54 ) $ 5 $ (49 ) $ (177 ) $ (13 ) $ (190 ) Cash flow hedges (21 ) 5 (16 ) 23 (5 ) 18 Pension and other postretirement benefits plans 11 (2 ) 9 13 (4 ) 9 Other comprehensive income (loss) (64 ) 8 (56 ) (141 ) (22 ) (163 ) Less: Other comprehensive income (loss) available to noncontrolling interests (1 ) — (1 ) (1 ) — (1 ) Other comprehensive income (loss) available to Whirlpool $ (63 ) $ 8 $ (55 ) $ (140 ) $ (22 ) $ (162 ) Six Months Ended June 30, 2019 2018 Millions of dollars Pre-tax Tax Effect Net Pre-tax Tax Effect Net Currency translation adjustments (3) $ 38 $ 6 $ 44 $ (189 ) $ (1 ) $ (190 ) Cash flow (35 ) 10 (25 ) (3 ) — (3 ) Pension and other postretirement benefits plans 22 (4 ) 18 50 (15 ) 35 Other comprehensive income (loss) 25 12 37 (142 ) (16 ) (158 ) Less: Other comprehensive income (loss) available to noncontrolling interests (1 ) (1 ) — — — Other comprehensive income (loss) available to Whirlpool $ 26 $ 12 $ 38 $ (142 ) $ (16 ) $ (158 ) `(3) Currency translation adjustments includes net investment hedges. 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, 2019 : Three Months Ended Six Months Ended Millions of dollars (Gain) Loss Reclassified (Gain) Loss Reclassified Classification in Earnings Pension and postretirement benefits, pre-tax 11 22 Interest and sundry (income) expense 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 2019 2018 2019 2018 Numerator for basic and diluted earnings per share - Net earnings (loss) available to Whirlpool $ 67 $ (657 ) $ 538 $ (563 ) Denominator for basic earnings per share - weighted-average shares 63.8 69.1 63.9 70.1 Effect of dilutive securities - share-based compensation 0.5 — 0.5 — Denominator for diluted earnings per share - adjusted weighted-average shares 64.3 69.1 64.4 70.1 Anti-dilutive stock options/awards excluded from earnings per share 1.5 2.0 1.5 1.9 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, 2019 , we repurchased 360,326 shares under this share repurchase program at an aggregate price of approximately $50 million . At June 30, 2019 , there were approximately $750 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, 2019 | |
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 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 and signed by the Italian government in 2015, provided for the closure or repurposing of certain manufacturing facilities and headcount reductions at other facilities. In addition, the restructuring plan provided for headcount reductions in the salaried employee workforce. These actions are substantially complete. In 2018, we announced actions in EMEA to reduce fixed costs by $50 million . The initiatives primarily include headcount reductions throughout the EMEA region. Additionally, we exited domestic sales operations in Turkey. We expect these actions will be complete in 2019 with approximately $26 million expense remaining. The following table summarizes the restructuring actions above for the six months ended June 30, 2019 and the total costs to date for each plan: Millions of dollars 2019 Total Indesit $ 8 $ 236 EMEA fixed cost actions $ 38 $ 52 The following table summarizes the changes to our restructuring liability during the six months ended June 30, 2019 : Millions of dollars December 31, 2018 Charges to Earnings Cash Paid Non-Cash and Other June 30, 2019 Employee termination costs $ 84 $ 49 $ (80 ) $ — $ 53 Asset impairment costs — 28 (7 ) (12 ) 9 Facility exit costs (9 ) 4 (11 ) — (16 ) Other exit costs 21 5 (3 ) — 23 Total $ 96 $ 86 $ (101 ) $ (12 ) $ 69 The following table summarizes the restructuring charges by operating segment for the period presented: Six Months Ended Millions of dollars June 30, 2019 North America $ — EMEA 77 Latin America 8 Asia 1 Corporate / Other — Total $ 86 On May 31, 2019, we announced our intention to reconvert our Naples, Italy manufacturing plant and potentially sell the plant to a third party. Such actions are subject to continued negotiation and discussion with the Italian government, certain labor unions and potential third-party purchasers, and are subject to regulatory and legal review, as well as final approval of the relevant parties. As of June 30, 2019, the Company has not committed to a specific restructuring plan, therefore no liability has been incurred related to this matter. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Income tax expense (benefit) was $130 million and $(2) million for the three and six months ended June 30, 2019 , respectively, compared to income tax expense of $30 million and $45 million in the same periods of 2018. For the three months ended June 30, 2019 , the increase in the effective tax rate from the prior period is due primarily to a higher level of earnings and related tax expense and impact of changes in enacted tax rates. For the six months ended June 30, 2019, the decrease in the effective tax rate from the prior period is due to valuation allowance releases, partially offset by higher level of earnings and related tax expense, non-deductible impairments and government payments. The following table summarizes the difference between income tax expense (benefit) at the U.S. statutory rate of 21% and the income tax expense (benefit) at effective worldwide tax rates for the respective periods: Three Months Ended June 30, Six Months Ended June 30, Millions of dollars 2019 2018 2019 2018 Earnings (loss) before income taxes $ 202 $ (609 ) $ 544 $ (500 ) Income tax expense (benefit) computed at United States statutory tax rate 42 (128 ) 114 (105 ) Valuation allowances 39 39 (196 ) 39 Audits and settlements (13 ) (3 ) (13 ) (3 ) U.S. foreign income items, net of credits 4 (34 ) 11 (45 ) Changes in enacted tax rates 25 — 25 — Non deductible impairments — 138 — 138 Non deductible government payments — 37 — 37 Other 33 (19 ) 57 (16 ) Income tax expense (benefit) computed at effective worldwide tax rates $ 130 $ 30 $ (2 ) $ 45 At the end of each interim period, we estimate 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 . Valuation Allowances We routinely review the future realization of deferred tax assets based on projected future reversal of taxable temporary differences, available tax planning strategies and projected future taxable income. We have reduced the valuation allowance to reflect the estimated amount of certain deferred tax assets associated with net operating losses and other deferred tax assets we believe are now more-likely-than-not to be realized. During the first quarter of 2019, upon completion of our $700 million bond offering, we used the proceeds to refinance and recapitalize various entities in the EMEA region. Based upon our existing transfer pricing policies, these actions are expected to provide sufficient future taxable income to realize the deferred tax assets. In addition, these actions inject additional internal capital into certain EMEA entities to meet local country capitalization requirements, repay all outstanding borrowings under the Whirlpool EMEA Finance Term Loan and prepare for the Embraco divestiture. Accordingly, we reduced the valuation allowance by $235 million during the first quarter of 2019. During the second quarter of 2019, we increased our total valuation allowance by $39 million |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2019 | |
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 (loss) 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 region'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, asset impairment charges and certain other items that management believes are not indicative of the region's ongoing performance, if any. Intersegment sales are eliminated within each region except compressor sales out of Latin America, which are included in Other/Eliminations. The tables below summarize performance by operating segment for the periods presented: Three Months Ended June 30, OPERATING SEGMENTS North EMEA Latin Asia Other/ Total Net sales 2019 $ 2,858 $ 1,032 $ 888 $ 430 $ (22 ) $ 5,186 2018 2,782 1,096 852 428 (18 ) 5,140 Intersegment sales 2019 $ 45 22 342 87 (496 ) — 2018 70 26 341 84 (521 ) — Depreciation and amortization 2019 $ 55 $ 58 $ 13 $ 17 $ 17 $ 160 2018 47 57 26 16 16 162 EBIT 2019 $ 353 (16 ) 56 15 (154 ) 254 2018 331 (25 ) 33 43 (944 ) (562 ) Total assets June 30, 2019 $ 7,988 $ 9,432 $ 5,119 $ 2,640 $ (5,324 ) $ 19,855 December 31, 2018 7,161 7,299 4,745 2,636 (3,494 ) 18,347 Capital expenditures 2019 $ 43 17 21 19 12 112 2018 41 34 18 16 19 128 Six Months Ended June 30, OPERATING SEGMENTS North EMEA Latin Asia Other/ Total Net sales 2019 $ 5,393 $ 2,036 $ 1,763 $ 801 $ (47 ) $ 9,946 2018 5,298 2,164 1,750 876 (37 ) 10,051 Intersegment sales 2019 $ 111 43 679 171 (1,004 ) — 2018 137 64 627 159 (987 ) — Depreciation and amortization 2019 $ 104 $ 101 $ 31 $ 34 $ 32 $ 302 2018 96 114 64 34 31 339 EBIT 2019 $ 665 (37 ) 101 22 (104 ) 647 2018 619 (52 ) 90 62 (1,130 ) (411 ) Total assets June 30, 2019 $ 7,988 $ 9,432 $ 5,119 $ 2,640 $ (5,324 ) $ 19,855 December 31, 2018 7,161 7,299 4,745 2,636 (3,494 ) 18,347 Capital expenditures 2019 $ 78 27 45 29 18 197 2018 64 40 31 27 32 194 The following table summarizes the reconciling items in the Other/Eliminations column for total EBIT for the periods presented: Three Months Ended June 30, Six Months Ended June 30, in millions 2019 2018 2019 2018 Items not allocated to segments: Restructuring costs $ (60 ) $ (44 ) $ (86 ) $ (188 ) Divestiture related transition costs (11 ) — (17 ) — Brazil indirect tax credit 53 — 180 — French antitrust settlement — (114 ) — (114 ) Impairment of goodwill and intangibles — (747 ) — (747 ) Legacy product warranty and liability expense (12 ) — (12 ) — Loss on disposal of businesses (79 ) — (79 ) — Corporate expenses and other (45 ) (39 ) (90 ) (81 ) Total other/eliminations $ (154 ) $ (944 ) $ (104 ) $ (1,130 ) A reconciliation of our segment information for total EBIT to the corresponding amounts in the Consolidated Condensed Statements of Comprehensive Income is shown in the table below for the periods presented: Three Months Ended June 30, Six Months Ended June 30, in millions 2019 2018 2019 2018 Operating profit $ 191 $ (472 ) $ 454 $ (329 ) Interest and sundry (income) expense (63 ) 90 (193 ) 82 Total EBIT $ 254 $ (562 ) $ 647 $ (411 ) Interest expense 52 47 103 89 Income tax expense (benefit) 130 30 (2 ) 45 Net earnings (loss) $ 72 $ (639 ) $ 546 $ (545 ) Less: Net earnings available to noncontrolling interests 5 18 8 18 Net earnings available to Whirlpool $ 67 $ (657 ) $ 538 $ (563 ) |
Divestitures and Held for Sale
Divestitures and Held for Sale | 6 Months Ended |
Jun. 30, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Divestitures and Held for Sale | DIVESTITURES AND 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. On July 1, 2019, we closed the sale of Embraco. Based on the cash purchase price, we estimate a gain, net of taxes, in the range of approximately $375 to $425 million . With the proceeds from this transaction, we will repay the outstanding term loan amount recorded in notes payable of approximately $1 billion as required under the Term Loan Agreement. The recognition of the gain and repayment of the outstanding term loan will occur in the third quarter of 2019. The estimated gain is subject to change based on the final transaction amounts, including the net book value of held for sale assets at the closing date and the finalization of the amounts for closing costs, taxes and customary adjustments for indebtedness, cash and working capital. Please see "Embraco Sale Transaction" in the Management's Discussion and Analysis section for additional information on the agreement. Embraco is reported within our Latin America reportable segment and meets the criteria for held for sale accounting. The operations of Embraco do not meet the criteria to be presented as discontinued operations. The carrying amounts of the major classes of Embraco's assets and liabilities at June 30, 2019 and December 31, 2018 include the following: Millions of dollars June 30, 2019 December 31, 2018 Accounts receivable, net of allowance of $2 and $8, respectively 232 198 Inventories 234 165 Prepaid and other current assets 30 42 Property, net of accumulated depreciation of $532 and $616, respectively 386 364 Right of use assets 43 — Other noncurrent assets 38 49 Total assets $ 963 $ 818 Accounts payable $ 394 $ 361 Accrued expenses 15 27 Accrued advertising and promotion 8 12 Other current liabilities 56 55 Lease liabilities 36 — Other noncurrent liabilities 15 34 Total liabilities $ 524 $ 489 The following table summarizes Embraco's earnings before income taxes for the periods presented: Three Months Ended June 30, Six Months Ended June 30, Millions of dollars 2019 2018 2019 2018 Earnings before income taxes $ 24 $ 9 $ 47 $ 16 South Africa Sale Transaction On June 28, 2019, we entered into an agreement to sell our South Africa operations for a cash purchase price of $5 million , subject to customary adjustments at closing. The South Africa business is reported within our EMEA reportable segment and meets the criteria for held for sale accounting. The operations of South Africa do not meet the criteria to be presented as discontinued operations. We recorded a charge of $68 million in the Consolidated Condensed Statements of Comprehensive Income during the second quarter of 2019 associated with this transaction. The loss includes a charge of $35 million for the write-down of the assets of the disposal group to fair value and $33 million of cumulative foreign currency translation adjustments included in the carrying amount of the disposal group to calculate the impairment. The carrying amount of held for sale assets and liabilities of South Africa as of June 30, 2019 is $6 million and $34 million , respectively. Held for sale liabilities primarily includes the cumulative foreign currency translation adjustments that will be released upon closing of the transaction which will result in substantial liquidation of this foreign entity. Earnings before income taxes for South Africa were immaterial for the periods presented. For additional information see Note 11 to the Consolidated Condensed Financial Statements. Turkey Divestiture Costs For the six months ended June 30, 2019, we incurred approximately $11 million of divestiture related costs, primarily inventory liquidation costs, related to the exit from our domestic sales operations in Turkey. For additional information see Note 13 to the Consolidated Condensed Financial Statements. |
Goodwill and Other Intangibles
Goodwill and Other Intangibles | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangibles | GOODWILL AND OTHER INTANGIBLES Goodwill 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 were substantially complete, as of the impairment date, the operating and macro-environment in the EMEA region continued to be very challenging and had not improved as anticipated. While our commercial transformation and supply chain initiatives were progressing, as of the impairment determination date, progress on market share recovery was slower than previously anticipated and the business had been impacted by raw material inflation and currency headwinds. In performing our quantitative assessment of goodwill during the second quarter of 2018, 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 included 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 in 2018. Other Intangible Assets 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 market participant discount rate based on a 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 in 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 11 to the Consolidated Condensed Financial Statements for additional information on the fair value measurement and disclosure related to the goodwill and other intangibles impairment. *Whirlpool ownership of the Hotpoint brand in the EMEA and Asia Pacific regions is not affiliated with the Hotpoint brand sold in the Americas. 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. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
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, 2018 . 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, 2019, we adopted Accounting Standards Update (“ASU”) No. 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities." The adoption of this standard did not have a material impact on our Consolidated Condensed Financial Statements, however we have expanded our use of hedge accounting to hedge contractually specified components in commodity contracts designated as cash flow hedges. For additional information on the required disclosures related to the impact of adopting this standard, see Note 10 to the Consolidated Condensed Financial Statements. On January 1, 2019, we adopted ASU No. 2016-02, "Leases (Topic 842)" and as part of that process the Company made the following elections: • The Company did not elect the hindsight practical expedient, for all leases. • The Company elected the package of practical expedients and, as a result, did not reassess prior conclusions related to contracts containing leases, lease classification and initial direct costs for all leases. • In March 2018, the FASB approved an optional transition method that allows companies to use the effective date as the date of initial application on transition. The Company elected this transition method, and as a result, did not adjust its comparative period financial information or make the newly required lease disclosures for periods before the effective date. • The Company elected to make the accounting policy election for short-term leases resulting in lease payments being recorded as an expense on a straight-line basis over the lease term. • The Company elected to not separate lease and non-lease components for all leases. • The Company did not elect the land easement practical expedient. Upon adoption, we recognized the cumulative effect of initially applying this new standard resulting in the addition of approximately $858 million of right of use assets, of which $46 million were classified as held for sale, as well as the corresponding short-term and long-term lease liabilities. Additionally, the Company has sold and leased back a group of properties in our Latin American region and, upon adoption, the Company recorded a cumulative adjustment to retained earnings of approximately $82 million related to deferred gains associated with these transactions. For additional information on the required disclosures related to the impact of adopting this standard, see Note 3 to the Consolidated Condensed Financial Statements. For additional information on held for sale assets, see Note 16 to the Consolidated Condensed Financial Statements. All other newly issued and effective accounting standards during 2019 were not relevant or material to the Company. Accounting Pronouncements Issued But Not Yet Effective In November 2018, the FASB issued ASU 2018-18, "Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606." The new standard clarifies that certain transactions between participants in a collaborative arrangement should be accounted for under Topic 606 when the counterparty is a customer for a good or service that is a distinct unit of account. The amendments also preclude entities from presenting consideration from transactions with a collaborator that is not a customer together with revenue recognized from contracts with customers. The new standard is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted in any interim period for entities that have adopted ASC 606. The standard should be applied retrospectively to the period when initially adopted ASC 606. The Company is currently evaluating the impact of adopting this guidance. 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 2018-13 Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement January 1, 2020 2018-14 Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans January 1, 2021 2018-15 Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred In a Cloud Computing Arrangement That Is a Service Contract January 1, 2020 2018-17 Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities January 1, 2020 All other issued and not yet effective accounting standards are not relevant to the Company. |
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. The fair value of the hedge asset or liability is presented in either other current assets/liabilities or other noncurrent assets/liabilities in the Consolidated Condensed Balance Sheets and in other within cash used in operating activities in the Consolidated Condensed Statements of Cash Flows. 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 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 |
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 17 to the Consolidated Condensed Financial Statements for additional information on the goodwill and other intangible impairment during the second quarter of 2018. |
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 (loss) 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 region'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, asset impairment charges and certain other items that management believes are not indicative of the region's ongoing performance, if any. Intersegment sales are eliminated within each region except compressor sales out of Latin America, which are included in Other/Eliminations. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | 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 2018-13 Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement January 1, 2020 2018-14 Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans January 1, 2021 2018-15 Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred In a Cloud Computing Arrangement That Is a Service Contract January 1, 2020 2018-17 Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities January 1, 2020 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
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 geographic regions, see Note 15 to the Consolidated Condensed Financial Statements. Three Months Ended June 30, Six Months Ended June 30, Millions of dollars 2019 2018 2019 2018 Major product categories: Laundry $ 1,492 $ 1,463 $ 2,975 $ 3,025 Refrigeration 1,656 1,606 3,019 2,897 Cooking 1,075 1,089 2,119 2,138 Dishwashing 398 412 762 808 Total major product category net sales $ 4,621 $ 4,570 $ 8,875 $ 8,868 Compressors 323 285 635 581 Spare parts and warranties 180 249 371 522 Other 62 36 65 80 Total net sales $ 5,186 $ 5,140 $ 9,946 $ 10,051 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Undiscounted annual future minimum lease payments | The undiscounted annual future minimum lease payments are summarized by year in the table below: Maturity of Lease Liabilities Operating Leases (in millions) 2019 $ 99 2020 179 2021 148 2022 124 2023 112 After 2023 331 Total lease payments $ 993 Less: interest 144 Present value of lease liabilities (1) $ 849 (1) Present value of lease liabilities includes liabilities held for sale of $36 million . |
Cash, Cash Equivalents and Re_2
Cash, Cash Equivalents and Restricted Cash (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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: June 30, Millions of dollars 2019 2018 Cash and cash equivalents as presented in our Consolidated Condensed Balance Sheets $ 1,178 $ 1,057 Restricted cash included in prepaid and other current assets (1) 25 47 Restricted cash included in other noncurrent assets (1) — 23 Cash included in assets held for sale 6 — Cash, cash equivalents and restricted cash as presented in our Consolidated Condensed Statements of Cash Flows $ 1,209 $ 1,127 (1) Change in restricted cash reflects realization of foreign currency translation adjustments of $(1) million and $1 million , respectively, for the six months ended June 30, 2019 and 2018 compared to the prior fiscal year end. December 31, Millions of dollars 2018 2017 Cash and cash equivalents as presented in our Consolidated Balance Sheets $ 1,498 $ 1,196 Restricted cash included in prepaid and other current assets 40 48 Restricted cash included in other noncurrent assets — 49 Cash, cash equivalents and restricted cash as presented in our Consolidated Statements of Cash Flows $ 1,538 $ 1,293 |
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: June 30, Millions of dollars 2019 2018 Cash and cash equivalents as presented in our Consolidated Condensed Balance Sheets $ 1,178 $ 1,057 Restricted cash included in prepaid and other current assets (1) 25 47 Restricted cash included in other noncurrent assets (1) — 23 Cash included in assets held for sale 6 — Cash, cash equivalents and restricted cash as presented in our Consolidated Condensed Statements of Cash Flows $ 1,209 $ 1,127 (1) Change in restricted cash reflects realization of foreign currency translation adjustments of $(1) million and $1 million , respectively, for the six months ended June 30, 2019 and 2018 compared to the prior fiscal year end. December 31, Millions of dollars 2018 2017 Cash and cash equivalents as presented in our Consolidated Balance Sheets $ 1,498 $ 1,196 Restricted cash included in prepaid and other current assets 40 48 Restricted cash included in other noncurrent assets — 49 Cash, cash equivalents and restricted cash as presented in our Consolidated Statements of Cash Flows $ 1,538 $ 1,293 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Inventory, Net [Abstract] | |
Schedule of Inventory | The following table summarizes our inventory at June 30, 2019 and December 31, 2018 : Millions of dollars June 30, 2019 December 31, 2018 Finished products $ 2,547 $ 2,076 Raw materials and work in process 618 617 3,165 2,693 Less: excess of FIFO cost over LIFO cost (157 ) (160 ) Total inventories $ 3,008 $ 2,533 |
Property, Plant & Equipment (Ta
Property, Plant & Equipment (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property, Plant and Equipment | The following table summarizes our property, plant and equipment at June 30, 2019 and December 31, 2018 : Millions of dollars June 30, 2019 December 31, 2018 Land $ 101 $ 102 Buildings 1,607 1,593 Machinery and equipment 7,971 7,909 Accumulated depreciation (6,361 ) (6,190 ) Property, plant and equipment, net $ 3,318 $ 3,414 |
Financing Arrangements (Tables)
Financing Arrangements (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Notes Payable | The following table summarizes the carrying value of notes payable at June 30, 2019 and December 31, 2018 : Millions of dollars June 30, 2019 December 31, 2018 Commercial paper $ 947 $ — Short-term borrowings due to banks 1,210 1,034 Total notes payable $ 2,157 $ 1,034 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Product Warranty Reserves | The following table summarizes the changes in total product warranty liability reserves for the periods presented: Product Warranty Millions of dollars 2019 2018 Balance at January 1 $ 268 $ 277 Issuances/accruals during the period 128 145 Settlements made during the period/other (143 ) (147 ) Balance at June 30 $ 253 $ 275 Current portion $ 178 $ 200 Non-current portion 75 75 Total $ 253 $ 275 |
Pension and Other Postretirem_2
Pension and Other Postretirement Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 2019 2018 2019 2018 2019 2018 Service cost $ — $ — $ 2 $ 2 $ 1 $ 1 Interest cost 31 29 6 6 4 3 Expected return on plan assets (45 ) (42 ) (8 ) (9 ) — — Amortization: Actuarial loss 12 13 2 2 — — Prior service credit — — — — (3 ) (2 ) Settlement and curtailment (gain) loss — — — (3 ) — — Net periodic benefit cost (credit) $ (2 ) $ — $ 2 $ (2 ) $ 2 $ 2 Six Months Ended June 30, United States Foreign Other Postretirement Millions of dollars 2019 2018 2019 2018 2019 2018 Service cost $ 1 $ 1 $ 3 $ 3 $ 3 $ 3 Interest cost 62 59 12 12 8 7 Expected return on plan assets (89 ) (85 ) (15 ) (17 ) — — Amortization: Actuarial loss 24 26 4 5 — — Prior service credit (1 ) (1 ) — — (5 ) 1 Settlement and curtailment (gain) loss — — 1 (3 ) (7 ) — Net periodic benefit cost (credit) $ (3 ) $ — $ 5 $ — $ (1 ) $ 11 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 2019 2018 2019 2018 2019 2018 Operating profit (loss) $ — $ — $ 2 $ 2 $ 1 $ 1 Interest and sundry (income) expense (2 ) — — (4 ) 1 1 Net periodic benefit cost $ (2 ) $ — $ 2 $ (2 ) $ 2 $ 2 Six Months Ended June 30, United States Foreign Other Postretirement Millions of dollars 2019 2018 2019 2018 2019 2018 Operating profit (loss) $ 1 $ 1 $ 3 $ 3 $ 3 $ 3 Interest and sundry (income) expense (4 ) (1 ) 2 (3 ) (4 ) 8 Net periodic benefit cost $ (3 ) $ — $ 5 $ — $ (1 ) $ 11 |
Hedges and Derivative Financi_2
Hedges and Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | The following table summarizes our foreign currency denominated debt and foreign exchange forwards/options designated as net investment hedges at June 30, 2019 and December 31, 2018 : Notional (Local) Notional (USD) Current Maturity Instrument 2019 2018 2019 2018 Senior note - 0.625% € 500 € 500 $ 569 $ 573 March 2020 Commercial Paper € 296 € — $ 337 $ — July 2019 Foreign exchange forwards/options MXN 7,200 MXN 7,200 $ 375 $ 366 August 2022 The following table summarizes our outstanding derivative contracts and their effects in our Consolidated Condensed Balance Sheets at June 30, 2019 and December 31, 2018 : Fair Value of Type (1) Notional Amount Hedge Assets Hedge Liabilities Maximum Term (Months) Millions of dollars 2019 2018 2019 2018 2019 2018 2019 2018 Derivatives accounted for as hedges Foreign exchange forwards/options $ 3,108 $ 3,126 $ 43 $ 49 $ 44 $ 48 (CF/NI) 38 44 Commodity swaps/options 235 216 4 1 21 27 (CF) 24 30 Interest rate derivatives 700 — 14 — 36 — (CF) 116 0 Total derivatives accounted for as hedges $ 61 $ 50 $ 101 $ 75 Derivatives not accounted for as hedges Foreign exchange forwards/options $ 2,804 $ 4,382 $ 20 $ 27 $ 23 $ 69 N/A 15 21 Commodity swaps/options 4 3 — — — — N/A 24 0 Total derivatives not accounted for as hedges 20 27 23 69 Total derivatives $ 81 $ 77 $ 124 $ 144 Current $ 40 $ 60 $ 52 $ 95 Noncurrent 41 17 72 49 Total derivatives $ 81 $ 77 $ 124 $ 144 (1) |
Schedule of Effects of Derivative Instruments on Consolidated Statements of Income | The following tables summarize the effects of derivative instruments and foreign currency debt designated as net investment hedges in our Consolidated Condensed Statements of Comprehensive Income for the periods presented: Three Months Ended June 30, Gain (Loss) (2) Cash Flow Hedges - Millions of dollars 2019 2018 Foreign exchange forwards/options $ (4 ) $ 76 Commodity swaps/options (22 ) — Interest rate derivatives (5 ) — Net Investment Hedges Foreign currency (20 ) 69 $ (51 ) $ 145 Three Months Ended June 30, Location of Gain (Loss) Reclassified from OCI into Earnings (Effective Portion) Gain (Loss) Reclassified from OCI into Earnings (Effective Portion) Cash Flow Hedges - Millions of dollars 2019 2018 Foreign exchange forwards/options Net sales $ (1 ) $ — Foreign exchange forwards/options Cost of products sold 6 (6 ) Foreign exchange forwards/options Interest and sundry (income) expense (4 ) 50 Commodity swaps/options (3) Cost of products sold $ (6 ) $ 10 Interest rate derivatives Interest expense $ 3 $ (1 ) Interest rate derivatives Interest and sundry (income) expense (8 ) — $ (10 ) $ 53 Three Months Ended June 30, Location of Gain (Loss) Recognized on Derivatives not Gain (Loss) Recognized on Derivatives not Accounted for as Hedges Derivatives not Accounted for as Hedges - Millions of dollars 2019 2018 Foreign exchange forwards/options Interest and sundry (income) expense $ (35 ) $ 134 (2) The tax impact of the cash flow hedges was $5 million and $(5) million for the three months ended June 30, 2019 and 2018. The tax impact of the net investment hedges was $5 million and $(13) million for the three months ended June 30, 2019 and 2018, respectively. (3) Cost for commodity swaps/options are recognized in cost of sales as products are sold. Six Months Ended June 30, Gain (Loss) (4) Cash Flow Hedges - Millions of dollars 2019 2018 Foreign exchange $ 24 $ 76 Commodity swaps/options — (15 ) Interest rate derivatives (22 ) Net Investment Hedges Foreign currency (19 ) 6 $ (17 ) $ 67 Six Months Ended June 30, Location of Gain (Loss) Reclassified from OCI into Earnings (Effective Portion) Gain (Loss) Reclassified from OCI into Earnings (Effective Portion) Cash Flow Hedges - Millions of dollars 2019 2018 Foreign exchange forwards/options Net sales $ (2 ) $ (2 ) Foreign exchange forwards/options Cost of products sold 11 (12 ) Foreign exchange forwards/options Interest and sundry (income) expense 33 56 Commodity swaps/options (3) Cost of products sold (9 ) 23 Interest rate derivatives Interest expense 4 (1 ) Interest rate derivatives Interest and sundry (income) expense — $ 37 $ 64 Six Months Ended June 30, Location of Gain (Loss) Recognized on Derivatives not Gain (Loss) Recognized on Derivatives not Accounted for as Hedges (2) Derivatives not Accounted for as Hedges - Millions of dollars 2019 2018 Foreign exchange forwards/options Interest and sundry (income) expense $ (6 ) $ 63 (4) The tax impact of the cash flow hedges was $10 million and $0 million for the six months ended June 30, 2019 and 2018. The tax impact of the net investment hedges was $6 million and $(1) million for the six months ended June 30, 2019 and 2018, respectively. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets Measured on Recurring Basis | The following table summarizes the valuation of our assets and liabilities measured at fair value on a recurring basis at June 30, 2019 and December 31, 2018 are as follows: Fair Value Millions of dollars Total Cost Basis Level 1 Level 2 Total Measured at fair value on a recurring basis: 2019 2018 2019 2018 2019 2018 2019 2018 Money market funds (1) $ 634 $ 511 $ 3 $ 5 $ 631 $ 506 $ 634 $ 511 Net derivative contracts — — — — (43 ) (67 ) (43 ) (67 ) Available for sale investments 7 7 18 12 — — 18 12 (1) Money market funds are comprised primarily of government obligations or time deposits with banks and other first tier obligations. |
Fair Value Measurements, Nonrecurring | The following table summarizes the valuation of our assets measured at fair value on a non-recurring basis as of June 30, 2018: Fair Value Millions of dollars Level 3 Measured at fair value on a non-recurring basis: 2018 Assets: Goodwill (2) $ 315 Indefinite-lived intangible assets (3) 384 Definite-lived intangible assets (4) — Total level 3 assets $ 699 (2) 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 during the second quarter of 2018. (3) 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 during the second quarter of 2018. (4) 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, 2019 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Stockholders Equity | The following table summarizes the changes in stockholders' equity for the periods presented: Whirlpool Stockholders' Equity Total Retained Earnings Accumulated Other Comprehensive Income (Loss) Treasury Stock/ Additional Paid- in-Capital Common Stock Non- Controlling Interests Balances, December 31, 2018 $ 3,205 $ 6,933 $ (2,695 ) $ (2,059 ) $ 112 $ 914 Comprehensive income Net earnings 474 471 — — — 3 Other comprehensive income 93 — 93 — — — Comprehensive income 567 471 93 — — 3 Adjustment to beginning retained earnings (1) 61 61 — — — — Stock issued (repurchased) (40 ) — — (40 ) — — Dividends declared (74 ) (74 ) — — — — Balances, March 31, 2019 3,719 7,391 (2,602 ) (2,099 ) 112 917 Comprehensive income Net earnings 72 67 — — — 5 Other comprehensive income (56 ) — (55 ) — — (1 ) Comprehensive income 16 67 (55 ) — — 4 Stock issued (repurchased) 13 — — 13 — — Dividends declared (81 ) (78 ) — — — (3 ) Balances, June 30, 2019 3,667 7,380 (2,657 ) (2,086 ) 112 918 (1) Increase to beginning retained earnings is due to the adoption of ASU 2016-02 [increase of approximately $61 million (net of tax)]. For additional information regarding the adoption of this accounting standard, see Notes 1 and 3 to the Consolidated Condensed Financial Statements. Whirlpool Stockholders' Equity Total Retained Earnings Accumulated Other Comprehensive Income (Loss) Treasury Stock/ Additional Paid- in-Capital Common Stock Non- Controlling Interests Balances, December 31, 2017 $ 5,128 $ 7,352 $ (2,331 ) $ (935 ) $ 112 $ 930 Comprehensive income Net earnings 94 94 — — — — Other comprehensive income 5 — 4 — — 1 Comprehensive income 99 94 4 — — 1 Adjustment to beginning retained earnings (2) 72 72 — — — — Adjustment to beginning accumulated other comprehensive loss (17 ) — (17 ) — — — Stock issued (repurchased) 16 — — 16 — — Dividends declared (78 ) (78 ) — — — — Balances, March 31, 2018 5,220 7,440 (2,344 ) (919 ) 112 931 Comprehensive income Net earnings (639 ) (657 ) — — — 18 Other comprehensive income (163 ) $ — (162 ) $ — $ — $ (1 ) Comprehensive income (802 ) (657 ) (162 ) — — 17 Stock issued (repurchased) (990 ) $ — — $ (990 ) $ — $ — Dividends declared (84 ) (82 ) — — — (2 ) Balances, June 30, 2018 3,344 6,701 (2,506 ) (1,909 ) 112 946 (2) 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 ]. |
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, 2019 2018 Millions of dollars Pre-tax Tax Effect Net Pre-tax Tax Effect Net Currency translation adjustments (3) $ (54 ) $ 5 $ (49 ) $ (177 ) $ (13 ) $ (190 ) Cash flow hedges (21 ) 5 (16 ) 23 (5 ) 18 Pension and other postretirement benefits plans 11 (2 ) 9 13 (4 ) 9 Other comprehensive income (loss) (64 ) 8 (56 ) (141 ) (22 ) (163 ) Less: Other comprehensive income (loss) available to noncontrolling interests (1 ) — (1 ) (1 ) — (1 ) Other comprehensive income (loss) available to Whirlpool $ (63 ) $ 8 $ (55 ) $ (140 ) $ (22 ) $ (162 ) Six Months Ended June 30, 2019 2018 Millions of dollars Pre-tax Tax Effect Net Pre-tax Tax Effect Net Currency translation adjustments (3) $ 38 $ 6 $ 44 $ (189 ) $ (1 ) $ (190 ) Cash flow (35 ) 10 (25 ) (3 ) — (3 ) Pension and other postretirement benefits plans 22 (4 ) 18 50 (15 ) 35 Other comprehensive income (loss) 25 12 37 (142 ) (16 ) (158 ) Less: Other comprehensive income (loss) available to noncontrolling interests (1 ) (1 ) — — — Other comprehensive income (loss) available to Whirlpool $ 26 $ 12 $ 38 $ (142 ) $ (16 ) $ (158 ) `(3) Currency translation adjustments includes net investment hedges. |
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, 2019 : Three Months Ended Six Months Ended Millions of dollars (Gain) Loss Reclassified (Gain) Loss Reclassified Classification in Earnings Pension and postretirement benefits, pre-tax 11 22 Interest and sundry (income) expense |
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 2019 2018 2019 2018 Numerator for basic and diluted earnings per share - Net earnings (loss) available to Whirlpool $ 67 $ (657 ) $ 538 $ (563 ) Denominator for basic earnings per share - weighted-average shares 63.8 69.1 63.9 70.1 Effect of dilutive securities - share-based compensation 0.5 — 0.5 — Denominator for diluted earnings per share - adjusted weighted-average shares 64.3 69.1 64.4 70.1 Anti-dilutive stock options/awards excluded from earnings per share 1.5 2.0 1.5 1.9 |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Restructuring Charges [Abstract] | |
Schedule of Restructuring Actions | The following table summarizes the restructuring actions above for the six months ended June 30, 2019 and the total costs to date for each plan: Millions of dollars 2019 Total Indesit $ 8 $ 236 EMEA fixed cost actions $ 38 $ 52 |
Schedule of Restructuring Liability and Restructuring Activity | The following table summarizes the changes to our restructuring liability during the six months ended June 30, 2019 : Millions of dollars December 31, 2018 Charges to Earnings Cash Paid Non-Cash and Other June 30, 2019 Employee termination costs $ 84 $ 49 $ (80 ) $ — $ 53 Asset impairment costs — 28 (7 ) (12 ) 9 Facility exit costs (9 ) 4 (11 ) — (16 ) Other exit costs 21 5 (3 ) — 23 Total $ 96 $ 86 $ (101 ) $ (12 ) $ 69 |
Schedule of Restructuring Costs, By Operating Segment | The following table summarizes the restructuring charges by operating segment for the period presented: Six Months Ended Millions of dollars June 30, 2019 North America $ — EMEA 77 Latin America 8 Asia 1 Corporate / Other — Total $ 86 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation | The following table summarizes the difference between income tax expense (benefit) at the U.S. statutory rate of 21% and the income tax expense (benefit) at effective worldwide tax rates for the respective periods: Three Months Ended June 30, Six Months Ended June 30, Millions of dollars 2019 2018 2019 2018 Earnings (loss) before income taxes $ 202 $ (609 ) $ 544 $ (500 ) Income tax expense (benefit) computed at United States statutory tax rate 42 (128 ) 114 (105 ) Valuation allowances 39 39 (196 ) 39 Audits and settlements (13 ) (3 ) (13 ) (3 ) U.S. foreign income items, net of credits 4 (34 ) 11 (45 ) Changes in enacted tax rates 25 — 25 — Non deductible impairments — 138 — 138 Non deductible government payments — 37 — 37 Other 33 (19 ) 57 (16 ) Income tax expense (benefit) computed at effective worldwide tax rates $ 130 $ 30 $ (2 ) $ 45 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 2019 $ 2,858 $ 1,032 $ 888 $ 430 $ (22 ) $ 5,186 2018 2,782 1,096 852 428 (18 ) 5,140 Intersegment sales 2019 $ 45 22 342 87 (496 ) — 2018 70 26 341 84 (521 ) — Depreciation and amortization 2019 $ 55 $ 58 $ 13 $ 17 $ 17 $ 160 2018 47 57 26 16 16 162 EBIT 2019 $ 353 (16 ) 56 15 (154 ) 254 2018 331 (25 ) 33 43 (944 ) (562 ) Total assets June 30, 2019 $ 7,988 $ 9,432 $ 5,119 $ 2,640 $ (5,324 ) $ 19,855 December 31, 2018 7,161 7,299 4,745 2,636 (3,494 ) 18,347 Capital expenditures 2019 $ 43 17 21 19 12 112 2018 41 34 18 16 19 128 Six Months Ended June 30, OPERATING SEGMENTS North EMEA Latin Asia Other/ Total Net sales 2019 $ 5,393 $ 2,036 $ 1,763 $ 801 $ (47 ) $ 9,946 2018 5,298 2,164 1,750 876 (37 ) 10,051 Intersegment sales 2019 $ 111 43 679 171 (1,004 ) — 2018 137 64 627 159 (987 ) — Depreciation and amortization 2019 $ 104 $ 101 $ 31 $ 34 $ 32 $ 302 2018 96 114 64 34 31 339 EBIT 2019 $ 665 (37 ) 101 22 (104 ) 647 2018 619 (52 ) 90 62 (1,130 ) (411 ) Total assets June 30, 2019 $ 7,988 $ 9,432 $ 5,119 $ 2,640 $ (5,324 ) $ 19,855 December 31, 2018 7,161 7,299 4,745 2,636 (3,494 ) 18,347 Capital expenditures 2019 $ 78 27 45 29 18 197 2018 64 40 31 27 32 194 The following table summarizes the reconciling items in the Other/Eliminations column for total EBIT for the periods presented: Three Months Ended June 30, Six Months Ended June 30, in millions 2019 2018 2019 2018 Items not allocated to segments: Restructuring costs $ (60 ) $ (44 ) $ (86 ) $ (188 ) Divestiture related transition costs (11 ) — (17 ) — Brazil indirect tax credit 53 — 180 — French antitrust settlement — (114 ) — (114 ) Impairment of goodwill and intangibles — (747 ) — (747 ) Legacy product warranty and liability expense (12 ) — (12 ) — Loss on disposal of businesses (79 ) — (79 ) — Corporate expenses and other (45 ) (39 ) (90 ) (81 ) Total other/eliminations $ (154 ) $ (944 ) $ (104 ) $ (1,130 ) A reconciliation of our segment information for total EBIT to the corresponding amounts in the Consolidated Condensed Statements of Comprehensive Income is shown in the table below for the periods presented: Three Months Ended June 30, Six Months Ended June 30, in millions 2019 2018 2019 2018 Operating profit $ 191 $ (472 ) $ 454 $ (329 ) Interest and sundry (income) expense (63 ) 90 (193 ) 82 Total EBIT $ 254 $ (562 ) $ 647 $ (411 ) Interest expense 52 47 103 89 Income tax expense (benefit) 130 30 (2 ) 45 Net earnings (loss) $ 72 $ (639 ) $ 546 $ (545 ) Less: Net earnings available to noncontrolling interests 5 18 8 18 Net earnings available to Whirlpool $ 67 $ (657 ) $ 538 $ (563 ) |
Divestitures and Held for Sale
Divestitures and Held for Sale (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations | The carrying amounts of the major classes of Embraco's assets and liabilities at June 30, 2019 and December 31, 2018 include the following: Millions of dollars June 30, 2019 December 31, 2018 Accounts receivable, net of allowance of $2 and $8, respectively 232 198 Inventories 234 165 Prepaid and other current assets 30 42 Property, net of accumulated depreciation of $532 and $616, respectively 386 364 Right of use assets 43 — Other noncurrent assets 38 49 Total assets $ 963 $ 818 Accounts payable $ 394 $ 361 Accrued expenses 15 27 Accrued advertising and promotion 8 12 Other current liabilities 56 55 Lease liabilities 36 — Other noncurrent liabilities 15 34 Total liabilities $ 524 $ 489 The following table summarizes Embraco's earnings before income taxes for the periods presented: Three Months Ended June 30, Six Months Ended June 30, Millions of dollars 2019 2018 2019 2018 Earnings before income taxes $ 24 $ 9 $ 47 $ 16 |
Basis of Presentation (Details)
Basis of Presentation (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Jan. 01, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Right-of-use asset, including amounts held for sale | $ 858 | |
Right-of-use asset, held for sale | $ 36 | 46 |
Retained Earnings | Accounting Standards Update 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cumulative effect of new accounting principle in period of adoption | 61 | |
Retained Earnings | Group of Properties in Latin America | Accounting Standards Update 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cumulative effect of new accounting principle in period of adoption | $ 82 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 5,186 | $ 5,140 | $ 9,946 | $ 10,051 |
Laundry | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,492 | 1,463 | 2,975 | 3,025 |
Refrigeration | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,656 | 1,606 | 3,019 | 2,897 |
Cooking | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,075 | 1,089 | 2,119 | 2,138 |
Dishwashing | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 398 | 412 | 762 | 808 |
Total major product category net sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 4,621 | 4,570 | 8,875 | 8,868 |
Compressors | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 323 | 285 | 635 | 581 |
Spare parts and warranties | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 180 | 249 | 371 | 522 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 62 | $ 36 | $ 65 | $ 80 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Lessee, Lease, Description [Line Items] | ||
Operating lease cost | $ 104,000,000 | |
Operating lease commitments, not yet commenced | 82,000,000 | |
Financing lease commitments | 0 | |
Operating lease commitments | 993,000,000 | |
Lease liabilities, noncurrent | $ 660,000,000 | $ 0 |
Weighted average remaining lease term for operating lease | 7 years | |
Weighted average operating discount rate used to determine the operating lease | 5.00% | |
Operating cash flow payments | $ 100,000,000 | |
Operating lease, right-of-use asset | $ 61,000,000 | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease commitments term, not yet commenced | 15 years |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Jan. 01, 2019 |
Leases [Abstract] | ||
2019 | $ 99 | |
2020 | 179 | |
2021 | 148 | |
2022 | 124 | |
2023 | 112 | |
After 2023 | 331 | |
Total lease payments | 993 | |
Less: interest | 144 | |
Present value of lease liabilities | 849 | |
Right-of-use asset, held for sale | $ 36 | $ 46 |
Cash, Cash Equivalents and Re_3
Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Millions | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash and Cash Equivalents [Abstract] | ||||
Cash and cash equivalents as presented in our Consolidated Condensed Balance Sheets | $ 1,178 | $ 1,057 | $ 1,498 | $ 1,196 |
Restricted cash included in prepaid and other current assets | 25 | 47 | 40 | 48 |
Restricted cash included in other noncurrent assets | 0 | 23 | 0 | 49 |
Cash included in assets held for sale | 6 | 0 | ||
Cash, cash equivalents and restricted cash as presented in our Consolidated Condensed Statements of Cash Flows | 1,209 | 1,127 | $ 1,538 | $ 1,293 |
Foreign currency translation adjustment | $ (1) | $ 1 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Inventory, Net [Abstract] | ||
Finished products | $ 2,547 | $ 2,076 |
Raw materials and work in process | 618 | 617 |
Gross inventories | 3,165 | 2,693 |
Less: excess of FIFO cost over LIFO cost | (157) | (160) |
Total inventories | $ 3,008 | $ 2,533 |
Percentage of LIFO Inventory | 46.00% | 41.00% |
Property, Plant & Equipment (De
Property, Plant & Equipment (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | ||
Accumulated depreciation | $ (6,361) | $ (6,190) |
Property, plant and equipment, net | 3,318 | 3,414 |
Disposed of fully depreciated buildings, machinery and equipment | 6 | |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 101 | 102 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 1,607 | 1,593 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 7,971 | $ 7,909 |
Financing Arrangements - Narrat
Financing Arrangements - Narrative (Details) | Mar. 01, 2019USD ($) | Feb. 27, 2019EUR (€) | Feb. 27, 2019USD ($) | Feb. 26, 2019USD ($) | Apr. 26, 2018USD ($) | Apr. 23, 2018USD ($) | Sep. 27, 2017USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019EUR (€) | Jun. 30, 2019BRL (R$) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | May 17, 2016USD ($) |
Debt Instrument [Line Items] | |||||||||||||||
Repayments of long-term debt | $ 943,000,000 | $ 376,000,000 | |||||||||||||
Letter of Credit Subfacility Maturing 2017 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Line of credit facility, maximum borrowing capacity | R$ 1000000000.0 | $ 261,000,000 | $ 258,000,000 | ||||||||||||
Line of Credit | Revolving Credit Facility | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Line of credit outstanding | 0 | 0 | |||||||||||||
Line of Credit | Foreign Line of Credit | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Line of credit facility, maximum borrowing capacity | € 250,000,000 | 284,000,000 | 286,000,000 | ||||||||||||
101% notes maturing 2029 | Senior Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument, face amount | $ 700,000,000 | $ 700,000,000 | |||||||||||||
Debt instrument, interest rate, stated percentage | 4.75% | ||||||||||||||
Debt instrument, redemption price, percentage | 101.00% | ||||||||||||||
Term Loan Agreement | Secured Debt | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument, face amount | $ 1,000,000,000 | ||||||||||||||
Repayments of long-term debt | € 600,000,000 | $ 673,000,000 | |||||||||||||
Line of credit facility, commitment fee percentage | 0.125% | ||||||||||||||
Ratio of indebtedness to net capital | 0.65 | ||||||||||||||
Debt instrument, covenant, rolling twelve month coverage ratio, minimum | 3 | ||||||||||||||
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% | ||||||||||||||
Senior note - 2.4% maturing 2019 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument, interest rate, stated percentage | 2.40% | ||||||||||||||
Repayments of long-term debt | $ 250,000,000 | ||||||||||||||
Senior note - 4.5% maturing 2018 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument, interest rate, stated percentage | 4.50% | ||||||||||||||
Repayments of long-term debt | $ 363,000,000 | ||||||||||||||
Third Amended and Restated Long-Term Credit Agreement | Line of Credit | Revolving Credit Facility | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Line of credit facility, commitment fee percentage | 0.125% | ||||||||||||||
Ratio of indebtedness to net capital | 0.65 | ||||||||||||||
Debt instrument, covenant, rolling twelve month coverage ratio, minimum | 3 | ||||||||||||||
Line of credit facility, maximum borrowing capacity | $ 3,000,000,000 | 3,000,000,000 | $ 2,500,000,000 | ||||||||||||
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% | ||||||||||||||
Accounts Receivable | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Outstanding accounts receivable transferred under arrangements where the Company continues to service the transferred asset | $ 255,000,000 | $ 161,000,000 |
Financing Arrangements - Notes
Financing Arrangements - Notes Payable (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Short-term Debt [Line Items] | ||
Total notes payable | $ 2,157 | $ 1,034 |
Commercial paper | ||
Short-term Debt [Line Items] | ||
Total notes payable | 947 | 0 |
Short-term borrowings to banks | ||
Short-term Debt [Line Items] | ||
Total notes payable | $ 1,210 | $ 1,034 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) € in Millions, R$ in Millions | Dec. 06, 2018EUR (€) | Jun. 26, 2018 | Apr. 30, 2019EUR (€) | Apr. 30, 2019USD ($) | Aug. 31, 2018EUR (€) | Jun. 30, 2019EUR (€)action | Jun. 30, 2019USD ($)action | Mar. 31, 2019EUR (€) | Mar. 31, 2019USD ($) | Sep. 30, 2018EUR (€) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($) | Dec. 31, 2017BRL (R$) | Dec. 31, 2017USD ($) | Dec. 31, 2009USD ($) | Dec. 31, 2004USD ($) | Jun. 30, 2019BRL (R$) | Jun. 30, 2019USD ($) | Dec. 31, 2018USD ($) |
Commitments and Contingencies [Line Items] | |||||||||||||||||||
BEFIEX tax credits monetized | $ 72,000,000 | ||||||||||||||||||
Outstanding BEFIEX tax assessment | R$ 1900 | $ 499,000,000 | |||||||||||||||||
Product warranty accrual | $ 12,000,000 | ||||||||||||||||||
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 | 251 | 66,000,000 | |||||||||||||||||
BEFIEX tax credits monetized | $ 35,000,000 | $ 84,000,000 | |||||||||||||||||
BEFIEX tax credits, additional amount available to recognize | 142,000,000 | 54,000,000 | |||||||||||||||||
BEFIEX tax credits | 43,000,000 | 18,000,000 | |||||||||||||||||
BEFIEX tax fees | 15,000,000 | 1,000,000 | |||||||||||||||||
Number of legal actions | action | 2 | 2 | |||||||||||||||||
CFC tax | |||||||||||||||||||
Commitments and Contingencies [Line Items] | |||||||||||||||||||
CFC potential exposure | R$ 210 | 55,000,000 | |||||||||||||||||
Loss contingency accrual | 0 | ||||||||||||||||||
Non-income and income tax matters | |||||||||||||||||||
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 | $ 15,000,000 | ||||||||||||||||||
Whirlpool France SAS | |||||||||||||||||||
Commitments and Contingencies [Line Items] | |||||||||||||||||||
Litigation settlement, duration of event | 14 months | ||||||||||||||||||
Payments for legal settlements | € 56 | $ 63,000,000 | |||||||||||||||||
Indesit Company S.p.A. | |||||||||||||||||||
Commitments and Contingencies [Line Items] | |||||||||||||||||||
Payments for legal settlements | € 17 | € 46 | $ 52,000,000 | ||||||||||||||||
Alno AG Insolvency Trustee v Bauknecht | Insolvency trustee claim | |||||||||||||||||||
Commitments and Contingencies [Line Items] | |||||||||||||||||||
Value of clawback and other claims asserted | € | € 174.5 | ||||||||||||||||||
Pending Litigation | June 2018 agreement with FCA | Whirlpool France SAS | |||||||||||||||||||
Commitments and Contingencies [Line Items] | |||||||||||||||||||
Litigation settlement, amount awarded to other party | € | € 95 | ||||||||||||||||||
Settled Litigation | June 2018 agreement with FCA | |||||||||||||||||||
Commitments and Contingencies [Line Items] | |||||||||||||||||||
Litigation settlement, amount awarded to other party | € | € 102 | ||||||||||||||||||
Settled Litigation | June 2018 agreement with FCA | Whirlpool France SAS | |||||||||||||||||||
Commitments and Contingencies [Line Items] | |||||||||||||||||||
Litigation settlement, amount awarded to other party | € | 56 | ||||||||||||||||||
Settled Litigation | June 2018 agreement with FCA | Indesit Company S.p.A. | |||||||||||||||||||
Commitments and Contingencies [Line Items] | |||||||||||||||||||
Litigation settlement, amount awarded to other party | € | € 46 | ||||||||||||||||||
Customer Lines of Credit for Brazilian Subsidiary | |||||||||||||||||||
Commitments and Contingencies [Line Items] | |||||||||||||||||||
Guarantor obligations, maximum exposure, undiscounted | 107,000,000 | $ 146,000,000 | |||||||||||||||||
Guarantee of Indebtedness of Others | |||||||||||||||||||
Commitments and Contingencies [Line Items] | |||||||||||||||||||
Guarantor obligations, maximum exposure, undiscounted | $ 2,600,000,000 | 3,500,000,000 | |||||||||||||||||
Line of Credit | |||||||||||||||||||
Commitments and Contingencies [Line Items] | |||||||||||||||||||
Guarantor obligations, current carrying value | $ 21,000,000 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Product Warranty Reserves (Details) - Product Warranty - USD ($) $ in Millions | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward] | ||||
Balance at January 1 | $ 268 | $ 277 | ||
Issuances/accruals during the period | 128 | 145 | ||
Settlements made during the period/other | (143) | (147) | ||
Balance at June 30 | 253 | 275 | ||
Current portion | $ 178 | $ 200 | ||
Non-current portion | 75 | 75 | ||
Total | $ 268 | $ 277 | $ 253 | $ 275 |
Pension and Other Postretirem_3
Pension and Other Postretirement Benefit Plans - Summary of Components of Net Periodic Pension Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 99 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | |
Other Postretirement Benefits | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | $ 1 | $ 1 | $ 3 | $ 3 | |
Interest cost | 4 | 3 | 8 | 7 | |
Expected return on plan assets | 0 | 0 | 0 | 0 | |
Amortization: | |||||
Actuarial loss | 0 | 0 | 0 | 0 | |
Prior service credit | (3) | (2) | (5) | 1 | |
Settlement and curtailment (gain) loss | 0 | 0 | (7) | 0 | |
Net periodic benefit cost (credit) | 2 | 2 | (1) | 11 | $ (89) |
United States Pension Benefits | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | 0 | 0 | 1 | 1 | |
Interest cost | 31 | 29 | 62 | 59 | |
Expected return on plan assets | (45) | (42) | (89) | (85) | |
Amortization: | |||||
Actuarial loss | 12 | 13 | 24 | 26 | |
Prior service credit | 0 | 0 | (1) | (1) | |
Settlement and curtailment (gain) loss | 0 | 0 | 0 | 0 | |
Net periodic benefit cost (credit) | (2) | 0 | (3) | 0 | |
Foreign Pension Benefits | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | 2 | 2 | 3 | 3 | |
Interest cost | 6 | 6 | 12 | 12 | |
Expected return on plan assets | (8) | (9) | (15) | (17) | |
Amortization: | |||||
Actuarial loss | 2 | 2 | 4 | 5 | |
Prior service credit | 0 | 0 | 0 | 0 | |
Settlement and curtailment (gain) loss | 0 | (3) | 1 | (3) | |
Net periodic benefit cost (credit) | $ 2 | $ (2) | $ 5 | $ 0 |
Pension and Other Postretirem_4
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 | 99 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | |
Other Postretirement Benefits | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Net periodic cost | $ 2 | $ 2 | $ (1) | $ 11 | $ (89) |
Operating profit | Other Postretirement Benefits | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Net periodic cost | 1 | 1 | 3 | 3 | |
Interest and sundry (income) expense | Other Postretirement Benefits | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Net periodic cost | 1 | 1 | (4) | 8 | |
United States Pension Benefits | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Net periodic cost | (2) | 0 | (3) | 0 | |
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 | (2) | 0 | (4) | (1) | |
Foreign Pension Benefits | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Net periodic cost | 2 | (2) | 5 | 0 | |
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 | $ 0 | $ (4) | $ 2 | $ (3) |
Pension and Other Postretirem_5
Pension and Other Postretirement Benefit Plans - Narrative (Details) - Other Postretirement Benefits - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 99 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2011 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Reduction in postretirement benefit obligation | $ 138 | |||||
Net periodic cost | $ (2) | $ (2) | $ 1 | $ (11) | $ 89 |
Hedges and Derivative Financi_3
Hedges and Derivative Financial Instruments - Narrative (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Derivative [Line Items] | ||
Net hedge ineffectiveness gain (loss) | $ 0 | $ 0 |
Derivatives accounted for as hedges | Interest rate derivatives | ||
Derivative [Line Items] | ||
Notional amount | $ 700,000,000 | $ 0 |
Hedges and Derivative Financi_4
Hedges and Derivative Financial Instruments - Schedule of Net Investment Hedging (Details) € in Millions, $ in Millions, $ in Millions | Jun. 30, 2019MXN ($) | Jun. 30, 2019EUR (€) | Jun. 30, 2019USD ($) | Dec. 31, 2018MXN ($) | Dec. 31, 2018EUR (€) | Dec. 31, 2018USD ($) |
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 | $ 569 | € 500 | $ 573 | ||
Commercial paper | Net Investment Hedges | ||||||
Derivative [Line Items] | ||||||
Notional Amount | € 296 | 337 | € 0 | 0 | ||
Foreign exchange forwards/options | Net Investment Hedges | ||||||
Derivative [Line Items] | ||||||
Notional Amount | $ 7,200 | $ 375 | $ 7,200 | $ 366 |
Hedges and Derivative Financi_5
Hedges and Derivative Financial Instruments - Schedule of Outstanding Derivative Contracts (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Derivatives, Fair Value [Line Items] | ||
Fair value of hedged assets | $ 81,000,000 | $ 77,000,000 |
Fair value of hedged liabilities | 124,000,000 | 144,000,000 |
Derivative asset at fair value, current | 40,000,000 | 60,000,000 |
Derivative asset at fair value, noncurrent | 41,000,000 | 17,000,000 |
Total derivatives, hedge assets at fair value | 81,000,000 | 77,000,000 |
Derivative liability at fair value, current | 52,000,000 | 95,000,000 |
Derivative liability at fair value, noncurrent | 72,000,000 | 49,000,000 |
Total derivatives, hedge liabilities at fair value | 124,000,000 | 144,000,000 |
Derivatives accounted for as hedges | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of hedged assets | 61,000,000 | 50,000,000 |
Fair value of hedged liabilities | 101,000,000 | 75,000,000 |
Derivatives accounted for as hedges | Foreign exchange forwards/options | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 3,108,000,000 | 3,126,000,000 |
Fair value of hedged assets | 43,000,000 | 49,000,000 |
Fair value of hedged liabilities | $ 44,000,000 | $ 48,000,000 |
Maximum term of foreign exchange forwards/options | 38 months | 44 months |
Derivatives accounted for as hedges | Commodity swaps/options | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 235,000,000 | $ 216,000,000 |
Fair value of hedged assets | 4,000,000 | 1,000,000 |
Fair value of hedged liabilities | $ 21,000,000 | $ 27,000,000 |
Maximum term of commodity swaps/options | 24 months | 30 months |
Derivatives accounted for as hedges | Interest rate derivatives | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 700,000,000 | $ 0 |
Fair value of hedged assets | 14,000,000 | 0 |
Fair value of hedged liabilities | $ 36,000,000 | $ 0 |
Maximum term of commodity swaps/options | 116 months | 0 months |
Derivatives not accounted for as hedges | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of hedged assets | $ 20,000,000 | $ 27,000,000 |
Fair value of hedged liabilities | 23,000,000 | 69,000,000 |
Derivatives not accounted for as hedges | Foreign exchange forwards/options | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 2,804,000,000 | 4,382,000,000 |
Fair value of hedged assets | 20,000,000 | 27,000,000 |
Fair value of hedged liabilities | $ 23,000,000 | $ 69,000,000 |
Maximum term of foreign exchange forwards/options | 15 months | 21 months |
Derivatives not accounted for as hedges | Commodity swaps/options | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 4,000,000 | $ 3,000,000 |
Fair value of hedged assets | 0 | 0 |
Fair value of hedged liabilities | $ 0 | $ 0 |
Maximum term of commodity swaps/options | 24 months | 0 months |
Hedges and Derivative Financi_6
Hedges and Derivative Financial Instruments - Schedule of Effects of Derivative Instruments on Consolidated Condensed Statements of Income (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Hedges, gain (loss) recognized in OCI | $ (51,000,000) | $ 145,000,000 | $ (17,000,000) | $ 67,000,000 |
Cash flow hedges, gain (loss) reclassified from OCI into earnings | (10,000,000) | 53,000,000 | 37,000,000 | 64,000,000 |
Foreign exchange | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivatives not accounted for as hedges, gain (loss) recognized | (35,000,000) | 134,000,000 | (6,000,000) | 63,000,000 |
Cash Flow Hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Tax impact of cash flow hedges | 5,000,000 | (5,000,000) | 10,000,000 | 0 |
Cash Flow Hedges | Foreign exchange | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Cash flow hedges, gain (loss) recognized in OCI | (4,000,000) | 76,000,000 | 24,000,000 | 76,000,000 |
Cash Flow Hedges | Commodity swaps/options | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Cash flow hedges, gain (loss) recognized in OCI | (22,000,000) | 0 | 0 | (15,000,000) |
Cash Flow Hedges | Interest rate derivatives | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Cash flow hedges, gain (loss) recognized in OCI | (5,000,000) | 0 | (22,000,000) | |
Net Investment Hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Tax impact of net investment hedges | 5,000,000 | (13,000,000) | 6,000,000 | (1,000,000) |
Net Investment Hedges | Foreign exchange | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net investment hedges, gain (loss) recognized in OCI | (20,000,000) | 69,000,000 | (19,000,000) | 6,000,000 |
Net Sales | Cash Flow Hedges | Foreign exchange | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Cash flow hedges, gain (loss) reclassified from OCI into earnings | (1,000,000) | 0 | (2,000,000) | (2,000,000) |
Cost of Products Sold | Cash Flow Hedges | Foreign exchange | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Cash flow hedges, gain (loss) reclassified from OCI into earnings | 6,000,000 | (6,000,000) | 11,000,000 | (12,000,000) |
Cost of Products Sold | Cash Flow Hedges | Commodity swaps/options | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Cash flow hedges, gain (loss) reclassified from OCI into earnings | (6,000,000) | 10,000,000 | (9,000,000) | 23,000,000 |
Interest and Sundry (Income) Expense | Cash Flow Hedges | Foreign exchange | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Cash flow hedges, gain (loss) reclassified from OCI into earnings | (4,000,000) | 50,000,000 | 33,000,000 | 56,000,000 |
Interest and Sundry (Income) Expense | Cash Flow Hedges | Interest rate derivatives | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Cash flow hedges, gain (loss) reclassified from OCI into earnings | (8,000,000) | 0 | 0 | |
Interest Expense | Cash Flow Hedges | Interest rate derivatives | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Cash flow hedges, gain (loss) reclassified from OCI into earnings | $ 3,000,000 | $ (1,000,000) | $ 4,000,000 | $ (1,000,000) |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)reporting_unit | Dec. 31, 2018USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Number of reporting units | reporting_unit | 4 | |||
Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Long-term debt, fair value | $ 4,920 | $ 4,920 | $ 4,170 | |
EMEA | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Goodwill, impairment loss | 579 | $ 579 | ||
Impairment of intangible assets (excluding goodwill) | $ (168) | $ 168 | ||
Goodwill | Discounted Cash Flow Analysis | EMEA | Measurement Input, Discount Rate | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Goodwill, measurement input | 0.12 | 0.12 | ||
Minimum | Other Intangible Assets | Relief-From-Royalty Method | EMEA | Measurement Input, Discount Rate | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Intangible assets (excluding goodwill), measurement input | 0.115 | 0.115 | ||
Minimum | Other Intangible Assets | Relief-From-Royalty Method | EMEA | Measurement Input, Royalty Rate | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Intangible assets (excluding goodwill), measurement input | 0.015 | 0.015 | ||
Maximum | Other Intangible Assets | Relief-From-Royalty Method | EMEA | Measurement Input, Discount Rate | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Intangible assets (excluding goodwill), measurement input | 0.16 | 0.16 | ||
Maximum | Other Intangible Assets | Relief-From-Royalty Method | EMEA | Measurement Input, Royalty Rate | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Intangible assets (excluding goodwill), measurement input | 0.035 | 0.035 | ||
South Africa Operations | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Impairment of assets held-for-sale | $ 35 | |||
Assets held-for-sale, fair value | $ 5 | $ 5 |
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, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | $ 634 | $ 511 |
Net derivative contracts | (43) | (67) |
Available for sale investments | 18 | 12 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 3 | 5 |
Net derivative contracts | 0 | 0 |
Available for sale investments | 18 | 12 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 631 | 506 |
Net derivative contracts | (43) | (67) |
Available for sale investments | 0 | 0 |
Total Cost Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 634 | 511 |
Net derivative contracts | 0 | 0 |
Available for sale investments | $ 7 | $ 7 |
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 | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impairment of intangible assets, indefinite-lived (excluding goodwill) | $ 108 | |
Impairment of intangible assets, finite-lived | 60 | |
Fair Value, Measurements, Nonrecurring | 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 | |
Total level 3 assets | 699 | |
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 | |
EMEA | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Goodwill, impairment loss | $ 579 | $ 579 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Changes in Stockholders' Equity (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jan. 01, 2019 | Jan. 01, 2018 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance | $ 3,719 | $ 3,205 | $ 5,220 | $ 5,128 | $ 3,205 | $ 5,128 | ||
Comprehensive income | ||||||||
Net earnings (loss) | 72 | 474 | (639) | 94 | 546 | (545) | ||
Other comprehensive loss | (56) | 93 | (163) | 5 | 37 | (158) | ||
Comprehensive income | 16 | 567 | (802) | 99 | 583 | (703) | ||
Stock issued (repurchased) | (40) | (990) | ||||||
Stock issued (repurchased) | (13) | 16 | ||||||
Dividends declared | (81) | (74) | (84) | (78) | ||||
Ending balance | 3,667 | 3,719 | 3,344 | 5,220 | 3,667 | 3,344 | ||
Retained Earnings | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance | 7,391 | 6,933 | 7,440 | 7,352 | 6,933 | 7,352 | ||
Comprehensive income | ||||||||
Net earnings (loss) | 67 | 471 | (657) | 94 | ||||
Comprehensive income | 67 | 471 | (657) | 94 | ||||
Dividends declared | (78) | (74) | (82) | (78) | ||||
Ending balance | 7,380 | 7,391 | 6,701 | 7,440 | 7,380 | 6,701 | ||
Accumulated Other Comprehensive Income (Loss) | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance | (2,602) | (2,695) | (2,344) | (2,331) | (2,695) | (2,331) | ||
Comprehensive income | ||||||||
Other comprehensive loss | (55) | 93 | (162) | 4 | 38 | (158) | ||
Comprehensive income | (55) | 93 | (162) | 4 | ||||
Ending balance | (2,657) | (2,602) | (2,506) | (2,344) | (2,657) | (2,506) | ||
Treasury Stock and Additional Paid-in-Capital [Member] | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance | (2,099) | (2,059) | (919) | (935) | (2,059) | (935) | ||
Comprehensive income | ||||||||
Stock issued (repurchased) | (40) | (990) | ||||||
Stock issued (repurchased) | (13) | 16 | ||||||
Ending balance | (2,086) | (2,099) | (1,909) | (919) | (2,086) | (1,909) | ||
Common Stock | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance | 112 | 112 | 112 | 112 | 112 | 112 | ||
Comprehensive income | ||||||||
Ending balance | 112 | 112 | 112 | 112 | 112 | 112 | ||
Noncontrolling Interests | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance | 917 | 914 | 931 | 930 | 914 | 930 | ||
Comprehensive income | ||||||||
Net earnings (loss) | 5 | 3 | 18 | |||||
Other comprehensive loss | (1) | (1) | 1 | (1) | 0 | |||
Comprehensive income | 4 | 3 | 17 | 1 | ||||
Dividends declared | (3) | (2) | ||||||
Ending balance | $ 918 | $ 917 | $ 946 | $ 931 | $ 918 | $ 946 | ||
Adjustment to beginning retained earnings | ||||||||
Comprehensive income | ||||||||
Cumulative effect of new accounting principle in period of adoption | $ 61 | $ 72 | ||||||
Adjustment to beginning retained earnings | Retained Earnings | ||||||||
Comprehensive income | ||||||||
Cumulative effect of new accounting principle in period of adoption | 61 | 72 | ||||||
Adjustment to beginning accumulated other comprehensive loss | ||||||||
Comprehensive income | ||||||||
Cumulative effect of new accounting principle in period of adoption | (17) | |||||||
Adjustment to beginning accumulated other comprehensive loss | Accumulated Other Comprehensive Income (Loss) | ||||||||
Comprehensive income | ||||||||
Cumulative effect of new accounting principle in period of adoption | (17) | |||||||
Accounting Standards Update 2016-02 | Retained Earnings | ||||||||
Comprehensive income | ||||||||
Cumulative effect of new accounting principle in period of adoption | $ 61 | |||||||
Accounting Standards Update 2014-09 | Retained Earnings | ||||||||
Comprehensive income | ||||||||
Cumulative effect of new accounting principle in period of adoption | 0.4 | |||||||
Accounting Standards Update 2016-01 | Retained Earnings | ||||||||
Comprehensive income | ||||||||
Cumulative effect of new accounting principle in period of adoption | 17 | |||||||
Accounting Standards Update 2016-16 | Retained Earnings | ||||||||
Comprehensive income | ||||||||
Cumulative effect of new accounting principle in period of adoption | $ 56 |
Stockholders' Equity - Other Co
Stockholders' Equity - Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Pre-tax | $ (64) | $ (141) | $ 25 | $ (142) | ||
Tax Effect | 8 | (22) | 12 | (16) | ||
Net | (56) | $ 93 | (163) | $ 5 | 37 | (158) |
Currency translation adjustments(3) | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Pre-tax | (54) | (177) | 38 | (189) | ||
Tax Effect | 5 | (13) | 6 | (1) | ||
Net | (49) | (190) | 44 | (190) | ||
Cash flow | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Pre-tax | (21) | 23 | (35) | (3) | ||
Tax Effect | 5 | (5) | 10 | 0 | ||
Net | (16) | 18 | (25) | (3) | ||
Pension and other postretirement benefits plans | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Pre-tax | 11 | 13 | 22 | 50 | ||
Tax Effect | (2) | (4) | (4) | (15) | ||
Net | 9 | 9 | 18 | 35 | ||
Noncontrolling Interests | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Pre-tax | (1) | (1) | (1) | 0 | ||
Tax Effect | 0 | 0 | 0 | |||
Net | (1) | (1) | 1 | (1) | 0 | |
Other comprehensive income (loss) available to Whirlpool | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Pre-tax | (63) | (140) | 26 | (142) | ||
Tax Effect | 8 | (22) | 12 | (16) | ||
Net | $ (55) | $ 93 | $ (162) | $ 4 | $ 38 | $ (158) |
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, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Reclassifications out of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest and sundry (income) expense | $ (63) | $ 90 | $ (193) | $ 82 |
Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassifications out of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest and sundry (income) expense | $ 22 | |||
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 | $ 11 |
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, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Stockholders' Equity Note [Abstract] | ||||
Numerator for basic and diluted earnings per share - Net earnings (loss) available to Whirlpool | $ 67 | $ (657) | $ 538 | $ (563) |
Denominator for basic earnings per share – weighted-average shares (in shares) | 63.8 | 69.1 | 63.9 | 70.1 |
Effect of dilutive securities – share-based compensation (in shares) | 0.5 | 0 | 0.5 | 0 |
Denominator for diluted earnings per share – adjusted weighted-average shares (in shares) | 64.3 | 69.1 | 64.4 | 70.1 |
Anti-dilutive stock options/awards excluded from earnings per share (in shares) | 1.5 | 2 | 1.5 | 1.9 |
Stockholders' Equity - Share Re
Stockholders' Equity - Share Repurchase Program (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jul. 25, 2017 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Stock repurchased during period, value | $ 40,000,000 | $ 990,000,000 | ||
Common Stock | Share Repurchase Program 2017 | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Stock repurchase program, authorized amount | $ 2,000,000,000 | |||
Stock repurchased during period (in shares) | 360,326 | |||
Stock repurchased during period, value | $ 50,000,000 | |||
Stock repurchase program, remaining authorized repurchase amount | $ 750,000,000 |
Restructuring Charges - Restruc
Restructuring Charges - Restructuring Actions (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Turkey | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and related cost, expected cost remaining | $ 26 | |
Indesit Company S.p.A. | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and related cost, incurred cost | 8 | |
Restructuring and related cost, total costs to date | 236 | |
EMEA | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and related cost, expected reduction in overhead costs | $ 50 | |
Restructuring and related cost, incurred cost | 38 | |
Restructuring and related cost, total costs to date | $ 52 |
Restructuring Charges - Change
Restructuring Charges - Change in Restructuring Liability (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve, beginning balance | $ 96 | |||
Charge to Earnings | $ 60 | $ 44 | 86 | $ 188 |
Cash Paid | (101) | |||
Non-cash and Other | (12) | |||
Restructuring reserve, ending balance | 69 | 69 | ||
Employee termination costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve, beginning balance | 84 | |||
Charge to Earnings | 49 | |||
Cash Paid | (80) | |||
Non-cash and Other | 0 | |||
Restructuring reserve, ending balance | 53 | 53 | ||
Asset impairment costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve, beginning balance | 0 | |||
Charge to Earnings | 28 | |||
Cash Paid | (7) | |||
Non-cash and Other | (12) | |||
Restructuring reserve, ending balance | 9 | 9 | ||
Facility exit costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve, beginning balance | (9) | |||
Charge to Earnings | 4 | |||
Cash Paid | (11) | |||
Non-cash and Other | 0 | |||
Restructuring reserve, ending balance | (16) | (16) | ||
Other exit costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve, beginning balance | 21 | |||
Charge to Earnings | 5 | |||
Cash Paid | (3) | |||
Non-cash and Other | 0 | |||
Restructuring reserve, ending balance | $ 23 | $ 23 |
Restructuring Charges - By Segm
Restructuring Charges - By Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | $ 60 | $ 44 | $ 86 | $ 188 |
Operating Segments | North America | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 0 | |||
Operating Segments | EMEA | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 77 | |||
Operating Segments | Latin America | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 8 | |||
Operating Segments | Asia | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 1 | |||
Corporate / Other | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | $ 0 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Feb. 26, 2019 | |
Income Tax Disclosure [Abstract] | ||||||
Income tax expense (benefit) | $ 130,000,000 | $ 30,000,000 | $ (2,000,000) | $ 45,000,000 | ||
Increase (decrease) in deferred tax asset valuation allowance | $ 39,000,000 | $ (235,000,000) | ||||
Senior Notes | 101% notes maturing 2029 | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, face amount | $ 700,000,000 | $ 700,000,000 |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Earnings (loss) before income taxes | $ 202 | $ (609) | $ 544 | $ (500) |
Income tax expense (benefit) computed at United States statutory tax rate | 42 | (128) | 114 | (105) |
Valuation allowances | 39 | 39 | (196) | 39 |
Audits and settlements | (13) | (3) | (13) | (3) |
U.S. foreign income items, net of credits | 4 | (34) | 11 | (45) |
Changes in enacted tax rates | 25 | 0 | 25 | 0 |
Non deductible impairments | 0 | 138 | 0 | 138 |
Non deductible government payments | 0 | 37 | 0 | 37 |
Other | 33 | (19) | 57 | (16) |
Income tax expense (benefit) computed at effective worldwide tax rates | $ 130 | $ 30 | $ (2) | $ 45 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||||
Net sales | $ 5,186 | $ 5,140 | $ 9,946 | $ 10,051 | |||
Depreciation and amortization | 160 | 162 | 302 | 339 | |||
EBIT | 254 | (562) | 647 | (411) | |||
Total assets | 19,855 | 19,855 | $ 18,347 | ||||
Capital expenditures | 112 | 128 | 197 | 194 | |||
Operating profit | 191 | (472) | 454 | (329) | |||
Interest and sundry (income) expense | (63) | 90 | (193) | 82 | |||
Interest expense | 52 | 47 | 103 | 89 | |||
Income tax expense (benefit) | 130 | 30 | (2) | 45 | |||
Net earnings (loss) | 72 | $ 474 | (639) | $ 94 | 546 | (545) | |
Less: Net earnings available to noncontrolling interests | 5 | 18 | 8 | 18 | |||
Net earnings available to Whirlpool | 67 | (657) | 538 | (563) | |||
North America | |||||||
Segment Reporting Information [Line Items] | |||||||
Net sales | 2,858 | 2,782 | 5,393 | 5,298 | |||
EMEA | |||||||
Segment Reporting Information [Line Items] | |||||||
Net sales | 1,032 | 1,096 | 2,036 | 2,164 | |||
Latin America | |||||||
Segment Reporting Information [Line Items] | |||||||
Net sales | 888 | 852 | 1,763 | 1,750 | |||
Asia | |||||||
Segment Reporting Information [Line Items] | |||||||
Net sales | 430 | 428 | 801 | 876 | |||
Intersegment sales | |||||||
Segment Reporting Information [Line Items] | |||||||
Net sales | (496) | (521) | (1,004) | (987) | |||
Intersegment sales | North America | |||||||
Segment Reporting Information [Line Items] | |||||||
Net sales | (45) | (70) | (111) | (137) | |||
Intersegment sales | EMEA | |||||||
Segment Reporting Information [Line Items] | |||||||
Net sales | (22) | (26) | (43) | (64) | |||
Intersegment sales | Latin America | |||||||
Segment Reporting Information [Line Items] | |||||||
Net sales | (342) | (341) | (679) | (627) | |||
Intersegment sales | Asia | |||||||
Segment Reporting Information [Line Items] | |||||||
Net sales | (87) | (84) | (171) | (159) | |||
Operating Segments | North America | |||||||
Segment Reporting Information [Line Items] | |||||||
Depreciation and amortization | 55 | 47 | 104 | 96 | |||
EBIT | 353 | 331 | 665 | 619 | |||
Total assets | 7,988 | 7,988 | 7,161 | ||||
Capital expenditures | 43 | 41 | 78 | 64 | |||
Operating Segments | EMEA | |||||||
Segment Reporting Information [Line Items] | |||||||
Depreciation and amortization | 58 | 57 | 101 | 114 | |||
EBIT | (16) | (25) | (37) | (52) | |||
Total assets | 9,432 | 9,432 | 7,299 | ||||
Capital expenditures | 17 | 34 | 27 | 40 | |||
Operating Segments | Latin America | |||||||
Segment Reporting Information [Line Items] | |||||||
Depreciation and amortization | 13 | 26 | 31 | 64 | |||
EBIT | 56 | 33 | 101 | 90 | |||
Total assets | 5,119 | 5,119 | 4,745 | ||||
Capital expenditures | 21 | 18 | 45 | 31 | |||
Operating Segments | Asia | |||||||
Segment Reporting Information [Line Items] | |||||||
Depreciation and amortization | 17 | 16 | 34 | 34 | |||
EBIT | 15 | 43 | 22 | 62 | |||
Total assets | 2,640 | 2,640 | 2,636 | ||||
Capital expenditures | 19 | 16 | 29 | 27 | |||
Other/ Eliminations | |||||||
Segment Reporting Information [Line Items] | |||||||
Net sales | (22) | (18) | (47) | (37) | |||
Depreciation and amortization | 17 | 16 | 32 | 31 | |||
EBIT | (154) | (944) | (104) | (1,130) | |||
Total assets | (5,324) | (5,324) | $ (3,494) | ||||
Capital expenditures | 12 | 19 | 18 | 32 | |||
Restructuring costs | Other/ Eliminations | |||||||
Segment Reporting Information [Line Items] | |||||||
EBIT | (60) | (44) | (86) | (188) | |||
Divestiture related transition costs | Other/ Eliminations | |||||||
Segment Reporting Information [Line Items] | |||||||
EBIT | (11) | 0 | (17) | 0 | |||
Brazil indirect tax credit | Other/ Eliminations | |||||||
Segment Reporting Information [Line Items] | |||||||
EBIT | 53 | 0 | 180 | 0 | |||
French antitrust settlement | Other/ Eliminations | |||||||
Segment Reporting Information [Line Items] | |||||||
EBIT | 0 | (114) | 0 | (114) | |||
Impairment of goodwill and intangibles | Other/ Eliminations | |||||||
Segment Reporting Information [Line Items] | |||||||
EBIT | 0 | (747) | 0 | (747) | |||
Legacy product warranty and liability expense | Other/ Eliminations | |||||||
Segment Reporting Information [Line Items] | |||||||
EBIT | (12) | 0 | (12) | 0 | |||
Loss on disposal of businesses | Other/ Eliminations | |||||||
Segment Reporting Information [Line Items] | |||||||
EBIT | (79) | 0 | (79) | 0 | |||
Corporate expenses and other | Other/ Eliminations | |||||||
Segment Reporting Information [Line Items] | |||||||
EBIT | $ (45) | $ (39) | $ (90) | $ (81) |
Divestitures and Held for Sal_2
Divestitures and Held for Sale (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||||
Sep. 30, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 28, 2019 | Dec. 31, 2018 | Apr. 23, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Repayments of long-term debt | $ 943 | $ 376 | ||||||
Earnings before income taxes | $ 202 | $ (609) | 544 | (500) | ||||
Loss on disposal of businesses | 79 | 0 | 79 | 0 | ||||
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 | |||||||
Accounts receivable, net of allowance of $2 and $8, respectively | 232 | 232 | $ 198 | |||||
Inventories | 234 | 234 | 165 | |||||
Prepaid and other current assets | 30 | 30 | 42 | |||||
Property, net of accumulated depreciation of $532 and $616, respectively | 386 | 386 | 364 | |||||
Right of use assets | 43 | 43 | 0 | |||||
Other noncurrent assets | 38 | 38 | 49 | |||||
Total assets | 963 | 963 | 818 | |||||
Accounts payable | 394 | 394 | 361 | |||||
Accrued expenses | 15 | 15 | 27 | |||||
Accrued advertising and promotion | 8 | 8 | 12 | |||||
Other current liabilities | 56 | 56 | 55 | |||||
Lease liabilities | 36 | 36 | 0 | |||||
Other noncurrent liabilities | 15 | 15 | 34 | |||||
Total liabilities | 524 | 524 | 489 | |||||
Allowance for doubtful accounts receivable | 2 | 2 | 8 | |||||
Property, accumulated depreciation | 532 | 532 | 616 | |||||
Earnings before income taxes | 24 | $ 9 | 47 | $ 16 | ||||
Held-for-sale assets | 963 | 963 | 818 | |||||
Held-for-sale liabilities | 524 | 524 | $ 489 | |||||
South Africa Operations | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Impairment of assets held-for-sale | 35 | |||||||
South Africa Operations | 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 | $ 5 | |||||||
Total assets | 6 | 6 | ||||||
Total liabilities | 34 | 34 | ||||||
Loss on disposal of businesses | 68 | |||||||
Impairment of assets held-for-sale | 35 | |||||||
Cumulative foreign currency translation adjustment | 33 | |||||||
Held-for-sale assets | 6 | 6 | ||||||
Held-for-sale liabilities | $ 34 | 34 | ||||||
Turkey | Disposal Group, Held-for-sale, Not Discontinued Operations | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Restructuring and related cost, incurred cost | $ 11 | |||||||
Subsequent Event | 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] | ||||||||
Repayments of long-term debt | $ 1,000 | |||||||
Subsequent Event | Forecast | Minimum | Embraco | Disposal Group, Held-for-sale, Not Discontinued Operations | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Gain on disposal | 375 | |||||||
Subsequent Event | Forecast | Maximum | Embraco | Disposal Group, Held-for-sale, Not Discontinued Operations | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Gain on disposal | $ 425 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (Narrative) (Details) - EMEA - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Jun. 30, 2019 | Dec. 31, 2018 | |
Goodwill [Line Items] | |||
Goodwill, impairment loss | $ 579 | $ 579 | |
Impairment of intangible assets (excluding goodwill) | $ (168) | $ 168 |