Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2021 | Oct. 15, 2021 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
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) | 60,743,084 | |
Entity Registrant Name | WHIRLPOOL CORP /DE/ | |
Entity Central Index Key | 0000106640 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Chicago Stock Exchange | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common stock, par value $1.00 per share | |
Trading Symbol | WHR | |
Security Exchange Name | CHX | |
New York Stock Exchange | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common stock, par value $1.00 per share | |
Trading Symbol | WHR | |
Security Exchange Name | NYSE |
Consolidated Condensed Statemen
Consolidated Condensed Statements of Comprehensive Income (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net sales | $ 5,488 | $ 5,291 | $ 16,170 | $ 13,658 |
Expenses | ||||
Cost of products sold | 4,380 | 4,143 | 12,823 | 11,182 |
Gross margin | 1,108 | 1,148 | 3,347 | 2,476 |
Selling, general and administrative | 524 | 513 | 1,526 | 1,354 |
Intangible amortization | 10 | 16 | 37 | 46 |
Restructuring costs | 7 | 63 | 35 | 186 |
(Gain) loss on sale and disposal of businesses | 15 | (7) | (105) | (7) |
Operating profit | 552 | 563 | 1,854 | 897 |
Other (income) expense | ||||
Interest and sundry (income) expense | (78) | (22) | (139) | (38) |
Interest expense | 44 | 51 | 134 | 142 |
Earnings before income taxes | 586 | 534 | 1,859 | 793 |
Income tax expense (benefit) | 100 | 141 | 353 | 231 |
Net earnings | 486 | 393 | 1,506 | 562 |
Less: Net earnings (loss) available to noncontrolling interests | 15 | 1 | 21 | (14) |
Net earnings available to Whirlpool | $ 471 | $ 392 | $ 1,485 | $ 576 |
Per share of common stock | ||||
Basic net earnings available to Whirlpool (in USD per share) | $ 7.56 | $ 6.27 | $ 23.67 | $ 9.21 |
Diluted net earnings available to Whirlpool (in USD per share) | 7.51 | 6.19 | 23.47 | 9.14 |
Dividends declared (in USD per share) | $ 1.40 | $ 1.20 | $ 4.05 | $ 3.60 |
Weighted-average shares outstanding (in millions) | ||||
Basic (in shares) | 62.2 | 62.6 | 62.7 | 62.6 |
Diluted (in shares) | 62.7 | 63.3 | 63.2 | 63.1 |
Comprehensive income | $ 532 | $ 370 | $ 1,905 | $ 428 |
Consolidated Condensed Balance
Consolidated Condensed Balance Sheets - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash and cash equivalents | $ 2,875 | $ 2,924 |
Accounts receivable, net of allowance of $103 and $132, respectively | 3,187 | 3,109 |
Inventories | 2,876 | 2,301 |
Prepaid and other current assets | 788 | 795 |
Total current assets | 9,726 | 9,129 |
Property, net of accumulated depreciation of $6,627 and $6,780, respectively | 2,713 | 3,199 |
Right of use assets | 973 | 989 |
Goodwill | 2,492 | 2,496 |
Other intangibles, net of accumulated amortization of $519 and $673, respectively | 1,993 | 2,194 |
Deferred income taxes | 2,061 | 2,189 |
Other noncurrent assets | 436 | 240 |
Total assets | 20,394 | 20,436 |
Current liabilities | ||
Accounts payable | 5,127 | 4,834 |
Accrued expenses | 696 | 637 |
Accrued advertising and promotions | 810 | 831 |
Employee compensation | 587 | 648 |
Notes payable | 12 | 12 |
Current maturities of long-term debt | 298 | 298 |
Other current liabilities | 761 | 1,070 |
Total current liabilities | 8,291 | 8,330 |
Noncurrent liabilities | ||
Long-term debt | 4,961 | 5,059 |
Pension benefits | 441 | 516 |
Postretirement benefits | 153 | 166 |
Lease liabilities | 813 | 838 |
Other noncurrent liabilities | 606 | 732 |
Total noncurrent liabilities | 6,974 | 7,311 |
Stockholders' equity | ||
Common stock, $1 par value, 250 million shares authorized, 114 million and 113 million shares issued, respectively, and 61 million and 63 million shares outstanding, respectively | 114 | 113 |
Additional paid-in capital | 3,011 | 2,923 |
Retained earnings | 9,957 | 8,725 |
Accumulated other comprehensive loss | (2,412) | (2,811) |
Treasury stock, 53 million and 50 million shares, respectively | (5,706) | (5,065) |
Total Whirlpool stockholders' equity | 4,964 | 3,885 |
Noncontrolling interests | 165 | 910 |
Total stockholders' equity | 5,129 | 4,795 |
Total liabilities and stockholders' equity | $ 20,394 | $ 20,436 |
Consolidated Condensed Balanc_2
Consolidated Condensed Balance Sheets (Parenthetical) - USD ($) shares in Millions, $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 103 | $ 132 |
Accumulated depreciation | 6,627 | 6,780 |
Accumulated amortization | $ 519 | $ 673 |
Common stock, par value (in USD per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 250 | 250 |
Common stock, shares issued (in shares) | 114 | 113 |
Common stock, shares outstanding (in shares) | 61 | 63 |
Treasury stock (in shares) | 53 | 50 |
Consolidated Condensed Statem_2
Consolidated Condensed Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Operating activities | ||
Net earnings | $ 1,506 | $ 562 |
Adjustments to reconcile net earnings to cash provided by (used in) operating activities: | ||
Depreciation and amortization | 378 | 414 |
(Gain) loss on sale and disposal of businesses | (105) | (7) |
(Gain) loss on previously held equity interest | (42) | 0 |
Changes in assets and liabilities: | ||
Accounts receivable | (289) | (663) |
Inventories | (785) | 168 |
Accounts payable | 617 | (162) |
Accrued advertising and promotions | 20 | (179) |
Accrued expenses and current liabilities | 207 | (163) |
Taxes deferred and payable, net | 50 | 88 |
Accrued pension and postretirement benefits | (89) | (55) |
Employee compensation | 10 | 137 |
Other | (184) | 260 |
Cash provided by (used in) operating activities | 1,294 | 407 |
Investing activities | ||
Capital expenditures | (306) | (251) |
Proceeds from sale of assets and businesses | 299 | 27 |
Acquisition of businesses, net of cash acquired | (46) | 0 |
Cash held by divested businesses | (393) | 0 |
Cash provided by (used in) investing activities | (446) | (224) |
Financing activities | ||
Net proceeds from borrowings of long-term debt | 300 | 1,031 |
Net proceeds (repayments) of long-term debt | (300) | (568) |
Net proceeds (repayments) from short-term borrowings | 1 | 1,405 |
Dividends paid | (253) | (232) |
Repurchase of common stock | (641) | (121) |
Common stock issued | 76 | 16 |
Other | (39) | 0 |
Cash provided by (used in) financing activities | (856) | 1,531 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (51) | (125) |
Increase (decrease) in cash, cash equivalents and restricted cash | (59) | 1,589 |
Cash, cash equivalents and restricted cash at beginning of year | 2,934 | 1,952 |
Cash, cash equivalents and restricted cash at end of period | $ 2,875 | $ 3,541 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2021 | |
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 U.S. 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, 2020. 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. Risks and Uncertainties COVID-19 continues to impact countries across the world, and the duration and severity of the effects are currently unknown. The pandemic has impacted the Company and could materially impact our financial results in the future. The Consolidated Condensed Financial Statements presented herein reflect estimates and assumptions made by management at September 30, 2021. Such estimates and assumptions affect, among other things, the Company’s goodwill, long-lived asset and indefinite-lived intangible asset valuation; inventory valuation; assessment of the annual effective tax rate; valuation of deferred income taxes and income tax contingencies; and the allowance for expected credit losses and bad debt. Events and changes in circumstances arising after October 22, 2021, including those resulting from the impacts of COVID-19, will be reflected in management’s estimates for future periods. Goodwill and indefinite-lived intangible assets Our Critical Accounting Policies and Estimates for goodwill and other indefinite-lived intangibles are disclosed in Note 1 to the Consolidated Financial Statements and in Management's Discussion and Analysis of our annual report on Form 10-K for the fiscal year ended December 31, 2020. We continue to monitor the significant global economic uncertainty to assess the outlook for demand for our products and the impact on our business and our overall financial performance. The goodwill in our EMEA reporting unit and our Indesit , Hotpoint*, Maytag and JennAir trademarks continue to be at risk at September 30, 2021. The goodwill in our other reporting units or indefinite-lived intangible assets are not presently at risk for future impairment. The potential impact of demand disruptions, production impacts or supply constraints could negatively effect revenues for the Indesit, Hotpoint *, Maytag and JennAir trademarks and the EMEA reporting unit, but we remain committed to the strategic actions necessary to realize the long-term forecasted EBIT margins. *Whirlpool ownership of the Hotpoint brand in EMEA and Asia Pacific regions is not affiliated with the Hotpoint brand sold in the Americas. As a result of our analysis, and in consideration of the totality of events and circumstances, there were no triggering events of impairment identified during the third quarter of 2021. A lack of recovery or further deterioration in market conditions, a sustained trend of weaker than expected financial performance in EMEA or for our Indesit , Hotpoint*, Maytag or JennAir trademarks or a lack of recovery or a decline in the Company’s market capitalization, among other factors, as a result of the COVID-19 pandemic or other unforeseen events could result in an impairment charge in future periods which could have a material adverse effect on our financial statements. Income taxes Under U.S. GAAP, the Company calculates its quarterly tax provision based on an estimated effective tax rate for the year and then adjusts this amount by certain discrete items each quarter. Potential changing and volatile macro-economic conditions could cause fluctuations in forecasted earnings before income taxes. As such, the Company's effective tax rate could be subject to volatility as forecasted earnings before income taxes are impacted by events which cannot be predicted. In addition, potential future economic deterioration brought on by the pandemic or other factors may negatively impact the realizability of certain deferred tax assets. Other Accounting Matters Synthetic lease arrangements We have a number of synthetic lease arrangements with financial institutions for non-core properties and assets. The leases contain provisions for options to purchase, extend the original term for additional periods or return the property. At September 30, 2021 and December 31, 2020, these arrangements include residual value guarantees of up to $238 million and $220 million, respectively, that could potentially come due in future periods. We do not believe it is probable that any material amounts will be owed under these guarantees. Therefore, no material amounts related to the residual value guarantees are included in the lease payments used to measure the right-of-use assets and lease liabilities. The majority of these leases are classified as operating leases. We have assessed the reasonable certainty of these provisions to determine the appropriate lease term. The leases were measured using our incremental borrowing rate and are included in our right of use assets and lease liabilities in the Consolidated Condensed Balance Sheets. Rental payments are calculated at the applicable LIBOR rate plus a margin. The impact to the Consolidated Condensed Balance Sheets and Consolidated Condensed Statements of Income (Loss) is nominal. Supply Chain Financing Arrangements The Company has ongoing agreements globally with various third-parties to allow certain suppliers the opportunity to sell receivables due from us to participating financial institutions at the sole discretion of both the suppliers and the financial institutions. We have no economic interest in the sale of these receivables and no direct financial relationship with the financial institutions concerning these services. Our obligations to suppliers, including amounts due and scheduled payment terms, are not impacted. All outstanding balances under these programs are recorded in accounts payable on our Consolidated Condensed Balance Sheets, approximately $1.3 billion and $1.2 billion has been issued to participating financial institutions at September 30, 2021 and December 31, 2020, respectively. A downgrade in our credit rating or changes in the financial markets could limit the financial institutions’ willingness to commit funds to, and participate in, the programs. We do not believe such risk would have a material impact on our working capital or cash flows. Due to the completed partial tender offer for Whirlpool China and subsequent deconsolidation of the subsidiary during the second quarter of 2021, we no longer have material supply chain financing arrangements in China. For additional information see Note 15 to the Consolidated Condensed Financial Statements. *Whirlpool ownership of the Hotpoint brand in EMEA and Asia Pacific regions is not affiliated with the Hotpoint brand sold in the Americas. Inventories Effective January 1, 2021, the Company changed its accounting principle for inventory valuation for inventories located in the U.S. from a last-in, first-out ("LIFO") basis to a first-in, first-out ("FIFO") basis. All prior periods presented in the Consolidated Condensed Financial Statements have been retrospectively adjusted to apply the effects of the change in accounting principle. Equity Method Investments After May 6, 2021, Whirlpool holds an equity interest of approximately 20% in Whirlpool China, an entity which was previously controlled by the Company. We account for the remaining interest under equity method accounting and Whirlpool China and its subsidiaries continue to supply the Company in the normal course of business. Whirlpool China was also granted a license to sell Whirlpool-branded products in China. Subsequent to the completion of the partial tender offer for Whirlpool China and deconsolidation of the entity in the second quarter of 2021, we made purchases from Whirlpool China of $86 million and $152 million for the three and nine months ended September 30, 2021, respectively. The outstanding amount due to Whirlpool China and its subsidiaries is $139 million as of September 30, 2021. The licensing revenue and outstanding accounts receivable from Whirlpool China and its subsidiaries are not material for the periods presented. As of September 30, 2021, the value of the equity interest in Whirlpool China is $210 million and is included in Other noncurrent assets in the Consolidated Condensed Balance Sheet. The Company’s share of the results of equity method investments and elimination of intra-entity results are included in Interest and sundry (income) expense in the Consolidated Condensed Income Statement and Other noncurrent assets in the Consolidated Condensed Balance Sheet. The impact of equity method investments is not material for the periods presented. For additional information, see Note 15 to the Consolidated Condensed Financial Statements. Related Party Transactions In 2018, Whirlpool of India Limited (“Whirlpool India”), a majority-owned subsidiary of Whirlpool Corporation, acquired a 49% equity interest in Elica PB India Private Limited (“Elica PB India”) for $22 million. On September 27, 2021, the Company entered into a share purchase agreement to acquire an additional 38% equity interest in Elica PB India for $57 million, which resulted in a controlling equity ownership of 87%. Following the closing of the transaction on September 29, 2021, Elica PB India is consolidated in Whirlpool Corporation's financial statements and is reported within our Asia reportable segment. The transaction resulted in a gain of approximately $42 million on the Company’s previously held equity interest. This gain was recorded within Interest and sundry (income) expense during the third quarter. The Company is in the process of finalizing independent appraisals for the purpose of allocating the purchase price to the individual assets acquired and liabilities assumed in the acquisition. The preliminary allocation of the purchase price included in the Consolidated Condensed Balance Sheet at September 30, 2021 is based on the best estimates of management and is subject to revision of the final determination of asset fair values and useful lives. Any changes to the preliminary estimates of the fair values of the assets and liabilities could potentially impact goodwill as well as future depreciation and amortization expense. On a preliminary basis, goodwill of $100 million, which is not deductible for tax purposes, has been allocated to the Asia reportable segment. The allocation has been made on the basis that the anticipated synergies identified will primarily benefit this reportable segment. Both Whirlpool India and the non-controlling interest shareholders retain an option for Whirlpool India to purchase the remaining equity interest in Elica PB India for fair value, which could be material to the financial statements of the Company, depending on the performance of the business. Adoption of New Accounting Standards We adopted the following standard, which did not have a material impact on our Consolidated Condensed Financial Statements: Standard Effective Date 2019-12 Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes January 1, 2021 All other newly issued and effective accounting standards during 2021 were not relevant or material to the Company. Accounting Pronouncements Issued But Not Yet Effective In March 2020, the FASB issued Update 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting". The amendments in Update 2020-04 are elective and apply to all entities that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform. The new guidance provides the following optional expedients: simplify accounting analyses under current U.S. GAAP for contract modifications, simplify the assessment of hedge effectiveness, allow hedging relationships affected by reference rate reform to continue and allow a one-time election to sell or transfer debt securities classified as held to maturity that reference a rate affected by reference rate reform. In January 2021, the FASB issued Update 2021-01, "Reference Rate Reform (Topic 848): Scope". The update provides additional optional guidance on the transition from LIBOR to include derivative instruments that use an interest rate for margining, discounting or contract price alignment. The standard will ease, if warranted, the requirements for accounting for the future effects of the rate reform. An entity may elect to apply the amendments prospectively through December 31, 2022. We continue to monitor the impact the discontinuance of LIBOR or another reference rate will have on our contracts, hedging relationships and other transactions. All other issued and not yet effective accounting standards are not relevant or material to the Company. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2021 | |
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. For additional information on the disaggregated revenues by geographic regions, see Note 14 to the Consolidated Condensed Financial Statements. Three Months Ended September 30, Nine Months Ended September 30, Millions of dollars 2021 2020 2021 2020 Major product categories: Laundry $ 1,498 $ 1,588 $ 4,447 $ 3,989 Refrigeration 1,762 1,701 5,016 4,368 Cooking 1,348 1,159 4,097 3,011 Dishwashing 479 509 1,403 1,320 Total major product category net sales $ 5,087 $ 4,957 $ 14,963 $ 12,688 Spare parts and warranties 302 247 860 681 Other 99 87 347 289 Total net sales $ 5,488 $ 5,291 $ 16,170 $ 13,658 The impact to revenue related to prior period performance obligations is less than 1% of global consolidated revenues for the three and nine months ended September 30, 2021. Allowance for Expected Credit Losses We estimate our expected credit losses primarily by using an aging methodology and establish customer-specific reserves for higher risk trade customers. Our expected credit losses are evaluated and controlled within each geographic region considering the unique credit risk specific to the country, marketplace and economic environment. We take into account past events, current conditions and reasonable and supportable forecasts in developing the reserve. The following table summarizes our allowance for expected credit losses by operating segment for the nine months ended September 30, 2021: Millions of dollars December 31, 2020 Charged to Earnings Write-offs Foreign Currency Other (1) September 30, 2021 Accounts receivable allowance North America $ 7 $ 4 (3) — $ — $ 8 EMEA 67 1 (15) (6) — $ 47 Latin America 44 4 (2) (1) — $ 45 Asia 14 — — — (11) $ 3 Consolidated $ 132 $ 9 $ (20) $ (7) $ (11) $ 103 Financing receivable allowance Latin America $ 27 $ — $ — $ (1) $ — $ 26 Asia 21 — — — (21) — $ 48 $ — $ — $ (1) $ (21) $ 26 Consolidated $ 180 $ 9 $ (20) $ (8) $ (32) $ 129 (1) Accounts receivable and financing receivable allowance of Whirlpool China which were previously classified under accounts receivable and noncurrent assets, respectively, have been removed as part of the deconsolidation of Whirlpool China. For additional information, see Note 15 to the Consolidated Condensed Financial Statements. |
Cash, Cash Equivalents and Rest
Cash, Cash Equivalents and Restricted Cash | 9 Months Ended |
Sep. 30, 2021 | |
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: September 30, Millions of dollars 2021 2020 Cash and cash equivalents as presented in our Consolidated Condensed Balance Sheets $ 2,875 $ 3,528 Restricted cash included in prepaid and other current assets (1) — 13 Cash, cash equivalents and restricted cash as presented in our Consolidated Condensed Statements of Cash Flows $ 2,875 $ 3,541 December 31, Millions of dollars 2020 2019 Cash and cash equivalents as presented in our Consolidated Balance Sheets $ 2,924 $ 1,952 Restricted cash included in prepaid and other current assets (1) 10 — Cash, cash equivalents and restricted cash as presented in our Consolidated Statements of Cash Flows $ 2,934 $ 1,952 |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2021 | |
Inventory, Net [Abstract] | |
Inventories | INVENTORIES The following table summarizes our inventories at September 30, 2021 and December 31, 2020: Millions of dollars September 30, 2021 December 31, 2020 Finished products $ 2,134 $ 1,635 Raw materials and work in process 742 666 Total Inventories $ 2,876 $ 2,301 |
Property, Plant and Equipment
Property, Plant and Equipment | 9 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | PROPERTY, PLANT AND EQUIPMENT The following table summarizes our property, plant and equipment at September 30, 2021 and December 31, 2020: Millions of dollars September 30, 2021 December 31, 2020 Land $ 83 $ 92 Buildings 1,289 1,517 Machinery and equipment 7,968 8,370 Accumulated depreciation (6,627) (6,780) Property, plant and equipment, net (1) $ 2,713 $ 3,199 (1) Decrease of $379 million in property, plant and equipment is due to the deconsolidation of Whirlpool China and divestment of Turkey subsidiary entity. For additional information, see Note 15 to the Consolidated Condensed Financial Statements. |
Financing Arrangements
Financing Arrangements | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Financing Arrangements | FINANCING ARRANGEMENTS Debt Offering On April 29, 2021, Whirlpool Corporation (the “Company”), completed its offering of $300 million in principal amount of 2.400% Senior Notes due 2031 (the “2031 Notes”), in a public offering pursuant to a registration statement on Form S-3 (File No. 333-255372). The 2031 Notes were issued under an indenture (the “Indenture”), dated March 20, 2000, between the Company, as issuer, and U.S. Bank National Association (as successor to Citibank, N.A.), as trustee. The sale of the 2031 Notes was made pursuant to the terms of an Underwriting Agreement, dated April 26, 2021 (the “Underwriting Agreement”), among the Company, as issuer, and BNP Paribas Securities Corp., BofA Securities, Inc., J.P. Morgan Securities LLC, and Wells Fargo Securities, LLC, as representatives of the several underwriters in connection with the offering and sales of the 2031 Notes. The 2031 Notes contain covenants that limit the Company'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 Company used the net proceeds from the sale of the 2031 Notes to redeem $300 million aggregate principal amount of 4.850% senior notes which was paid June 15, 2021. Consistent with the Company’s Sustainability Bond Framework, the Company intends to allocate an amount equal to the net proceeds from the sale of the 2031 Notes to fund one or more new or existing environmental and social Eligible Projects, as defined in the Company’s prospectus supplement dated April 26, 2021. On May 7, 2020, the Company completed its offering of $500 million in principal amount of 4.60% Senior Notes due 2050 (the “2050 Notes”), in a public offering pursuant to a registration statement on Form S-3 (File No. 333-224381). The 2050 Notes were issued under the Indenture. The 2050 Notes contain covenants that limit the Company'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 Company used the net proceeds from the sale of the 2050 Notes to repay a portion of the outstanding borrowings under the Company’s revolving credit facility, as amended and restated, dated as of August 6, 2019, 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. On February 21, 2020, Whirlpool EMEA Finance S.à r.l., an indirect, wholly-owned finance subsidiary of Whirlpool Corporation, completed a bond offering consisting of €500 million (approximately $540 million at closing) in principal amount of 0.50% Senior Notes due in 2028 (the "2028 Notes") in a public offering pursuant to a registration statement on Form S-3 (File No. 333-224381). The 2028 Notes were issued under an indenture, dated February 21, 2020, among Whirlpool EMEA Finance S.à r.l, as issuer, the Company, as parent guarantor, and U.S. Bank National Association, as trustee. Whirlpool Corporation has fully and unconditionally guaranteed the Notes on a senior unsecured basis. The 2028 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 2028 Notes at a purchase price of 101% of the principal amount thereof, plus accrued and unpaid interest. Credit Facilities On August 6, 2019, Whirlpool Corporation entered into a Fourth Amended and Restated Long-Term Credit Agreement (the "Amended Long-Term Facility", or "revolving credit 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. The Amended Long-Term Facility provides aggregate borrowing capacity of $3.5 billion. The Amended Long-Term Facility has a maturity date of August 6, 2024, unless earlier terminated. 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 Eurocurrency Rate is 1.125%; (2) the spread over prime is 0.125%; and (3) the unused commitment fee is 0.100%. The Amended Long-Term Facility contains customary covenants and warranties including, among other things, a debt to capitalization ratio of less than or equal to 0.65 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 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 at the subsidiary level. We are in compliance with both our debt to capitalization ratio and interest coverage ratio under the revolving credit facility as of September 30, 2021. On April 27, 2020, Whirlpool Corporation entered into a revolving 364-Day Credit Agreement (the “364-Day Facility”) by and among the Company, the lenders referred to therein, and Citibank, N.A. as Administrative Agent. The 364-Day Facility provided aggregate borrowing capacity of $500 million, and expired on its termination date of April 26, 2021 with no outstanding borrowings. In addition to the committed $3.5 billion Amended Long-Term Facility, we have committed credit facilities in Brazil and India. These committed credit facilities provide borrowings up to approximately $197 million at September 30, 2021 and $206 million at December 31, 2020, based on exchange rates then in effect, respectively. Committed credit facilities are maturing through 2023. Facility Borrowings On March 13, 2020, the Company initiated a borrowing of approximately $2.2 billion under the Amended Long-Term Facility, for which a portion of the proceeds from the borrowing were used to fund commercial paper repayment. The Company repaid $500 million of this Amended Long-Term Facility borrowing with the proceeds from its May 2020 Notes offering. The Company repaid an additional $500 million of this Amended Long-Term Facility borrowing by drawing on the full amount of the 364-Day Facility. All facility borrowing were repaid as of December 31, 2020 and no amounts were borrowed on the facility during the nine months ended September 30, 2021. 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 September 30, 2021 and December 31, 2020: Millions of dollars September 30, 2021 December 31, 2020 Short-term borrowings due to banks 12 12 Total notes payable $ 12 $ 12 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 do not require continuing involvement from the Company. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Embraco Antitrust Matters Beginning in February 2009, our former Embraco compressor business headquartered in Brazil ("Embraco") was notified of antitrust investigations of the global compressor industry by government authorities in various jurisdictions. Embraco resolved the government investigations and related claims in various jurisdictions and certain other claims remain pending. Whirlpool 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. 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 at September 30, 2021. 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 2.0 billion Brazilian reais (approximately $368 million at September 30, 2021). 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 such 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 taxpayers to resolve this and certain other disputed tax credit amounts. As permitted by the program, we elected to settle certain debts through the use of other existing tax credits and recorded charges of approximately $34 million in 2009 associated with these matters. In July 2012, the Brazilian revenue authority notified us that a portion of our proposed settlement was rejected and we received tax assessments of 259 million Brazilian reais (approximately $48 million at September 30, 2021), 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. We have received tax assessments from the Brazilian federal tax authorities relating to amounts allegedly due regarding unemployment/social security insurance taxes (PIS/COFINS) for tax credits recognized since 2007. These credits were recognized for inputs to certain manufacturing and other business processes. These assessments are being challenged at the administrative and judicial levels in Brazil. The total amount of outstanding tax assessments received for credits recognized for PIS/COFINS inputs is approximately 305 million Brazilian reais (approximately $56 million at September 30, 2021). 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 not accrued any amount related to these assessments. In addition to the BEFIEX, IPI tax credit and PIS/COFINS inputs matters noted above, other assessments issued by the Brazilian tax authorities related to indirect 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. We may experience additional delays in resolving these matters as a result of COVID-19-related administrative and judicial system temporary delays and closures in Brazil. 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 and based on exchange rates then in effect, during the first quarter of 2019 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 $58 million in taxes and fees, which have been paid. 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 and based on exchange rates then in effect, during the second quarter of 2019 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 in taxes and fees, which have been paid. The ICMS credits and related fees were recorded in interest and sundry (income) expense in our Consolidated Statements of Comprehensive Income (Loss). The Brazilian tax authorities sought clarification before the Brazilian Supreme Court (in a leading case involving another taxpayer) of certain matters, including the amount of these credits (i.e., the gross rate or net credit amount), and other matters that could have affected the rights of Brazilian taxpayers regarding these credits. In May 2021, the Supreme Court ruled that the gross rate, which is the rate Whirlpool applied, is the appropriate rate, and that taxpayers that filed legal actions prior to the Supreme Court's original decision in 2017, such as Whirlpool, were entitled to credits for amounts paid prior to the original decision. The Supreme Court's ruling is final, and a formal written opinion has been issued. This favorable ruling affirms the position we have taken with respect to the credits at issue in our ICMS legal actions noted above, and our actions in recognizing and monetizing these credits. Competition Investigation In 2013, the French Competition Authority ("FCA") commenced an investigation of appliance manufacturers and retailers in France, including Whirlpool and Indesit. The FCA investigation was split into two parts, and in December 2018, we finalized a settlement with the FCA on the first part of the investigation. 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, that matters related to the FCA investigation may have on our financial statements, matters related to the FCA investigation could have a material adverse effect on our financial statements in any particular reporting period. Trade Customer Insolvency The Company was a former indirect minority shareholder of Alno AG, a longstanding trade customer that filed for insolvency protection in Germany. In 2020, we paid a settlement of €52.75 million (approximately $59 million) to resolve any potential claims the insolvency trustee might have against the Company. We are also defending third-party claims related to Alno's insolvency that we believe are without merit, and believe the ultimate resolution of these claims will not have a material adverse effect on our financial statements. Grenfell Tower On June 23, 2017, London's Metropolitan Police Service released a statement that it had identified a Hotpoint–branded refrigerator as the initial source of the Grenfell Tower fire in West London. U.K. authorities are conducting investigations, including regarding the cause and spread of the fire. The model in question was manufactured by Indesit Company between 2006 and 2009, prior to Whirlpool's acquisition of Indesit in 2014. We are fully cooperating with the investigating authorities. Whirlpool was named as a defendant in a product liability suit in Pennsylvania federal court related to this matter. The federal court dismissed the case with prejudice in September 2020. The dismissal is being appealed. In December 2020, lawsuits related to Grenfell Tower were filed in the U.K. against approximately 20 defendants, including Whirlpool Corporation and certain Whirlpool subsidiaries. Given the preliminary stage of the proceedings, we cannot speculate on their eventual outcomes or potential impact on our financial statements; accordingly, we have not recorded any significant charges as of September 30, 2021. Additional claims may be filed related to this incident. Other Litigation See Note 13 for information on certain U.S. income tax litigation. In addition, we are currently defending against two lawsuits that have been certified for treatment as class actions in U.S. federal court, relating to two top-load washing machine models. In December 2019, the court in one of these lawsuits entered summary judgment in Whirlpool's favor. That ruling remains subject to appeal, and the other lawsuit is ongoing. 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 these matters 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. We may experience additional delays in resolving these and other pending litigation matters as a result of COVID-19-related temporary court and administrative body closures and postponements. 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 2021 2020 Balance at January 1 $ 273 $ 383 Issuances/accruals during the period 258 178 Settlements made during the period/other (220) (272) Balance at September 30 $ 311 $ 289 Current portion $ 211 $ 186 Non-current portion 100 104 Total $ 311 $ 289 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. As part of this process, we investigated incident reports associated with a particular component in certain Indesit-designed horizontal axis washers produced in EMEA. In January 2020, we commenced a product recall in the UK and Ireland for these EMEA-produced washers, for which the recall is ongoing. In the third quarter of 2019, we accrued approximately $105 million in estimated product warranty expense related to this matter. Reserve assumptions were updated in the fourth quarter of 2020 based on the latest available data including take rate assumptions and unit population resulting in a $30 million release to the reserve. This estimate is based on several assumptions which are inherently unpredictable and which we may need to materially revise in the future. For the three and nine months ended September 30, 2021, settlements of approximately $1 million and $4 million have been incurred related to this product recall, respectively. The total settlements since the beginning of this campaign are approximately $60 million. For the twelve months ended December 31, 2019, we incurred approximately $26 million of additional product warranty expense related to our previously disclosed legacy Indesit dryer corrective action campaign in the UK. For the three and nine months ended September 30, 2021, or for the year ended December 31, 2020, we incurred no additional material product warranty expense related to this campaign. We continue to voluntarily cooperate with the UK regulator with respect to the washer and dryer actions. Guarantees We have guarantee arrangements in a Brazilian subsidiary. For certain creditworthy 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 September 30, 2021 and December 31, 2020, the guaranteed amounts totaled 1,096 million Brazilian reais (approximately $202 million at September 30, 2021) and 297 million Brazilian reais (approximately $57 million at December 31, 2020), respectively. The fair value of these guarantees were nominal at September 30, 2021 and December 31, 2020. 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 lines of credit available under these lines for consolidated subsidiaries totaled approximately $3.4 billion at September 30, 2021 and $3.5 billion at December 31, 2020. Our total short-term outstanding bank indebtedness under guarantees was nominal at both September 30, 2021 and December 31, 2020. |
Pension and Other Postretiremen
Pension and Other Postretirement Benefit Plans | 9 Months Ended |
Sep. 30, 2021 | |
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 September 30, United States Foreign Other Postretirement Millions of dollars 2021 2020 2021 2020 2021 2020 Service cost $ 1 $ 1 $ 1 $ 1 $ — $ 1 Interest cost 20 25 4 4 1 1 Expected return on plan assets $ (39) $ (42) $ (9) $ (7) $ — $ — Amortization: Actuarial loss $ 17 $ 15 $ 4 $ 3 $ — $ — Prior service credit — — — — (12) (12) Settlement and curtailment (gain) loss 2 — — 1 — — Net periodic benefit cost (credit) $ 1 $ (1) $ — $ 2 $ (11) $ (10) Nine Months Ended September 30, United States Foreign Other Postretirement Millions of dollars 2021 2020 2021 2020 2021 2020 Service cost $ 2 $ 2 $ 4 $ 4 $ — $ 4 Interest cost 58 74 11 13 4 7 Expected return on plan assets (118) (124) (26) (22) — — Amortization: Actuarial loss 52 46 14 9 — — Prior service credit — — — — (35) (16) Settlement and curtailment (gain) loss 5 — — 1 — (4) Net periodic benefit cost (credit) $ (1) $ (2) $ 3 $ 5 $ (31) $ (9) 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 September 30, United States Foreign Other Postretirement Millions of dollars 2021 2020 2021 2020 2021 2020 Operating profit (loss) $ 1 $ 1 $ 1 $ 1 $ — $ 1 Interest and sundry (income) expense — (2) (1) 1 (11) (11) Net periodic benefit cost $ 1 $ (1) $ — $ 2 $ (11) $ (10) Nine Months Ended September 30, United States Foreign Other Postretirement Millions of dollars 2021 2020 2021 2020 2021 2020 Operating profit (loss) $ 2 $ 2 $ 4 $ 4 $ — $ 4 Interest and sundry (income) expense (3) (4) (1) 1 (31) (13) Net periodic benefit cost $ (1) $ (2) $ 3 $ 5 $ (31) $ (9) 401(k) Defined Contribution Plan During March 2020, we announced that the company matching contributions for our 401(k) defined contribution plan, equal to up to 7% of participants' eligible compensation, covering substantially all U.S. employees, would be contributed in company stock starting from May 2020. As of January 1, 2021, we have resumed funding our matching contributions with cash. Other Postretirement Benefit Plans During the third quarter of 2020, the Company announced changes to a postretirement medical benefit program for certain groups of retirees. These plan amendments were effective January 1, 2021 and reduced reimbursement amounts available under certain postretirement medical benefit programs and eliminated these benefits effective January 1, 2024 for these same retiree groups. During the second quarter of 2020, the Company announced changes to a postretirement medical benefit program for certain groups of active employees. These plan amendments were effective July 1, 2020 and reduced medical benefits for these pre-Medicare eligible and Medicare-eligible active employees who retired on or after July 1, 2020 and eliminated certain benefits effective January 1, 2024. These plan amendments resulted in a reduction in the accumulated postretirement benefit obligation of approximately $157 million with a corresponding adjustment of $118 million in other comprehensive income, net of $39 million in deferred taxes for the nine months ended September 30, 2020. This amount is being amortized as a reduction of future net periodic cost over approximately 3.4 years, which represents the future remaining service period of eligible active employees. The interim plan remeasurement associated with these amendments resulted in an actuarial loss of $12 million recorded in the Other Comprehensive Income (Loss) for the nine months ended September 30, 2020. For additional information, see Note 11 to the Consolidated Condensed Financial Statements. |
Hedges and Derivative Financial
Hedges and Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2021 | |
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. If the designated cash flow hedges are highly effective, the gains and losses are recorded in other comprehensive income (loss) and subsequently reclassified to earnings to offset the impact of the hedged items when they occur. In the event it becomes probable the forecasted transaction to which a cash flow hedge relates will not occur, the derivative would be terminated and the amount in accumulated other comprehensive income (loss) would be 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 on the Consolidated Condensed Balance Sheets and in other within cash provided by (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 commodity prices, foreign exchange rates and interest rates. 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. Commodity Price Risk We enter into commodity derivative contracts on various commodities to manage the price risk associated with forecasted purchases and sales of material used in our manufacturing process. The objective of these hedges is to reduce the variability of cash flows associated with the forecasted purchases and sales of commodities. Foreign Currency and Interest 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, intercompany loans and dividends. When we hedge a foreign currency denominated payable or receivable with a derivative, the effect of changes in the foreign exchange rates are reflected currently in interest and sundry (income) expense for both the payable/receivable and the derivative. Therefore, as a result of the economic hedge, we do not elect hedge accounting. We also enter into hedges to mitigate currency risk primarily related to forecasted foreign currency denominated expenditures, intercompany financing agreements and royalty agreements and designate them as cash flow hedges. Gains and losses on derivatives designated as cash flow hedges, to the extent they are included in the assessment of effectiveness, are recorded in other comprehensive income (loss) and subsequently reclassified to earnings to offset the impact of the hedged items when they occur. We may enter into cross-currency interest rate swaps to manage our exposure relating to cross-currency debt. The notional amount of outstanding cross-currency interest rate swap agreements was $1,275 million at September 30, 2021 and December 31, 2020. 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, or 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 may enter into swap rate lock agreements to effectively reduce our exposure to interest rate risk by locking in interest rates on probable long-term debt issuances. Outstanding notional amounts of interest rate swap agreements were $300 million at September 30, 2021 and December 31, 2020, respectively. Net Investment Hedging The following table summarizes our foreign currency denominated debt and foreign exchange forwards/options designated as net investment hedges at September 30, 2021 and December 31, 2020: Notional (Local) Notional (USD) Current Maturity Instrument 2021 2020 2021 2020 Foreign exchange forwards/options MXN 7,200 MXN 7,200 $ 350 $ 362 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 (loss) and recorded in accumulated other comprehensive loss. The gain or loss will be subsequently reclassified into net earnings when the hedged net investment is either sold or substantially liquidated. The remaining change in fair value of the hedge instruments represents the ineffective portion, which is immediately recognized in interest and sundry (income) expense on our Consolidated Condensed Statements of Comprehensive Income. As of September 30, 2021 and December 31, 2020, 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 September 30, 2021 and December 31, 2020: Fair Value of Notional Amount Hedge Assets Hedge Liabilities Maximum Term (Months) Millions of dollars 2021 2020 2021 2020 2021 2020 2021 2020 Derivatives accounted for as hedges (1) Commodity swaps/options $ 268 $ 215 $ 48 $ 39 $ 3 $ 4 (CF) 21 30 Foreign exchange forwards/options 2,871 3,028 107 58 62 110 (CF/NI) 125 134 Cross-currency swaps 1,275 1,275 25 23 27 86 (CF) 89 98 Interest rate derivatives 300 300 — — 7 28 (CF) 44 53 Total derivatives accounted for as hedges $ 180 $ 120 $ 99 $ 228 Derivatives not accounted for as hedges Commodity swaps/options $ 1 $ 1 $ — $ — $ — $ — N/A 0 0 Foreign exchange forwards/options 2,970 4,161 33 25 17 96 N/A 11 12 Total derivatives not accounted for as hedges 33 25 17 96 Total derivatives $ 213 $ 145 $ 116 $ 324 Current $ 205 $ 103 $ 80 $ 152 Noncurrent 8 42 36 172 Total derivatives $ 213 $ 145 $ 116 $ 324 (1) Derivatives accounted for as hedges are considered either cash flow (CF) or net investment (NI) hedges. The following tables summarize the effects of derivative instruments on our Consolidated Condensed Statements of Comprehensive Income for the periods presented: Three Months Ended September 30, Gain (Loss) (2) Millions of dollars 2021 2020 Cash flow hedges Commodity swaps/options $ 9 $ 23 Foreign exchange forwards/options 62 (37) Cross-currency swaps 40 (62) Interest rate derivatives 1 13 Net Investment hedges Foreign currency 7 (14) 119 (77) Three Months Ended September 30, Location of Gain (Loss) Reclassified from Gain (Loss) Reclassified from OCI into Earnings (Effective Portion) (3) Cash Flow Hedges - Millions of dollars 2021 2020 Commodity swaps/options Cost of products sold $ 21 $ (4) Foreign exchange forwards/options Net sales (2) 2 Foreign exchange forwards/options Cost of products sold (9) 11 Foreign exchange forwards/options Interest and sundry (income) expense 14 (21) Cross-currency swaps Interest and sundry (income) expense 37 (51) 61 (63) Three Months Ended September 30, Location of Gain (Loss) Recognized on Derivatives not Gain (Loss) Recognized on Derivatives not Derivatives not Accounted for as Hedges - Millions of dollars 2021 2020 Foreign exchange forwards/options Interest and sundry (income) expense $ 38 $ (18) (2) Change in gain (loss) recognized in OCI (effective portion) for the three months ended September 30, 2021 is primarily driven by fluctuations in currency and commodity prices and interest rates compared to prior year. The tax impact of the cash flow hedges was $(14) million and $2 million for the three months ended September 30, 2021 and 2020, respectively. The tax impact of the net investment hedges was $(2) million and $5 million for the three months ended September 30, 2021 and 2020, respectively. (3) Change in gain (loss) reclassified from OCI into earnings (effective portion) for the three months ended September 30, 2021 was primarily driven by fluctuations in currency and commodity prices and interest rates compared to prior year. Nine Months Ended September 30, Gain (Loss) (4) Millions of dollars 2021 2020 Cash flow hedges Commodity swaps/options $ 63 $ (8) Foreign exchange 69 58 Cross-currency swaps 84 33 Interest rate derivatives 21 (53) Net investment hedges Foreign currency 4 39 $ 241 $ 69 Nine Months Ended September 30, Location of Gain (Loss) Reclassified from Gain (Loss) Reclassified from OCI into Earnings (Effective Portion) (5) Cash Flow Hedges - Millions of dollars 2021 2020 Commodity swaps/options Cost of products sold $ 50 $ (21) Foreign exchange forwards/options Net sales — 5 Foreign exchange forwards/options Cost of products sold (3) 20 Foreign exchange forwards/options Interest and sundry (income) expense 43 (52) Cross-currency swaps Interest and sundry (income) expense 88 (40) $ 178 $ (88) Nine Months Ended September 30, Location of Gain (Loss) Recognized on Derivatives not Gain (Loss) Recognized on Derivatives not Derivatives not Accounted for as Hedges - Millions of dollars 2021 2020 Foreign exchange forwards/options Interest and sundry (income) expense $ 70 $ (1) (4) Change in gain (loss) recognized in OCI (effective portion) for the nine months ended September 30, 2021 is primarily driven by fluctuations in currency and commodity prices and interest rates compared to prior year. The tax impact of the cash flow hedges was $(20) million and $(25) million for the nine months ended September 30, 2021 and 2020, respectively. The tax impact of the net investment hedges was $(1) million and $(12) million for the nine months ended September 30, 2021 and 2020, respectively. (5) Change in gain (loss) reclassified from OCI into earnings (effective portion) for the nine months ended September 30, 2021 was primarily driven by fluctuations in currency and commodity prices and interest rates compared to prior year. For cash flow hedges, the amount of ineffectiveness recognized in interest and sundry (income) expense was nominal for the periods ended September 30, 2021, and 2020. There were no hedges designated as fair value for the periods ended September 30, 2021, and 2020. The net amount of unrealized gain or loss on derivative instruments included in accumulated OCI related to contracts maturing and expected to be realized during the next twelve months is a gain of $54 million at September 30, 2021. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2021 | |
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 following table summarizes the valuation of our assets and liabilities measured at fair value on a recurring basis at September 30, 2021 and December 31, 2020 are as follows: Fair Value Millions of dollars Total Cost Basis Level 1 Level 2 (2) Total Measured at fair value on a recurring basis: 2021 2020 2021 2020 2021 2020 2021 2020 Short-term investments (1) $ 2,105 $ 2,164 $ 1,926 $ 1,603 $ 179 $ 561 $ 2,105 $ 2,164 Net derivative contracts — — — — 97 (179) 97 (179) (1) Short-term investments are primarily comprised of money market funds and highly liquid, low risk investments with initial maturities less than 90 days. (2) Change in level 2 short-term investments is primarily driven by the deconsolidation of Whirlpool China. For additional information, see Note 15 to the Consolidated Condensed Financial Statements. Elica PB India Acquisition As of September 30, 2021, the Company consolidates Elica PB India. As a result, the previously held equity interest of 49% was remeasured at a fair value of $74 million (Level 2 input) on the acquisition date, resulting in an implied fair value of approximately $150 million. For additional information, see Note 1 to the Consolidated Condensed Financial Statements. Whirlpool China Equity Method Investment During the second quarter of 2021, the partial tender offer for Whirlpool China was completed and the entity was deconsolidated. Subsequent to the share transfer, which was completed on May 6, 2021, the Company holds an equity interest of approximately 20% in Whirlpool China. The fair value of the retained investment in Whirlpool China at the date of deconsolidation was calculated based on the Whirlpool China stock price (Level 1 input), the portion of interest retained and the shares outstanding, resulting in a fair value of $214 million. For additional information see Note 15 to the Consolidated Condensed Financial Statements. Turkey Subsidiary Divestment During the second quarter of 2021, we entered into a share transfer agreement to sell our Turkish subsidiary and the sale was completed on June 30, 2021. Fair value was calculated based on the cash purchase price, subject to customary adjustments at closing (Level 2 input), and we recorded a loss on sale and disposal of businesses of $40 million for the write-down of the assets to the fair value of $111 million. An immaterial adjustment to the loss on sale and disposal of business was recorded in the third quarter of 2021. For additional information see Note 15 to the Consolidated Condensed Financial Statements. Other Fair Value Measurements The fair value of long-term debt (including current maturities) was $5.86 billion and $6.13 billion at September 30, 2021 and December 31, 2020, 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 | 9 Months Ended |
Sep. 30, 2021 | |
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 Accumulated Other Comprehensive Income (Loss) Treasury Stock / Additional Paid-In-Capital Common Non-Controlling Interest (1) Balances, December 31, 2020 $ 4,795 $ 8,725 $ (2,811) $ (2,142) $ 113 $ 910 Comprehensive income Net earnings 440 433 — — — 7 Other comprehensive income 124 — 124 — — — Comprehensive income 564 433 124 — — 7 Stock issued (repurchased) (141) — — (141) — — Dividends declared (79) (79) — — — — Balances, March 31, 2021 5,139 9,079 (2,687) (2,283) 113 917 Comprehensive income Net earnings 580 581 — — — (1) Other comprehensive income 229 — 228 — — 1 Comprehensive income 809 581 228 — — — Stock issued (repurchased) 8 — — 7 1 — Dividends declared (88) (88) — — — — Divestitures (783) — — — — (783) Balances, June 30, 2021 5,085 9,572 (2,459) (2,276) 114 134 Comprehensive income Net earnings 486 471 — — — 15 Other comprehensive income 46 — 47 — — (1) Comprehensive income 532 471 47 — — 14 Stock issued (repurchased) (419) — — (419) — — Dividends declared (88) (86) — — — (2) Acquisitions (2) 19 — — — — 19 Balances, September 30, 2021 $ 5,129 $ 9,957 $ (2,412) $ (2,695) $ 114 $ 165 (1) Decrease of $783 million in noncontrolling interest is mainly due to the deconsolidation of Whirlpool China. For additional information, see Note 15 to the Consolidated Condensed Financial Statements. (2) Amount reflects the fair value of Elica PB India non-controlling interest. Whirlpool Stockholders' Equity Total Retained Accumulated Other Comprehensive Income (Loss) Treasury Stock / Additional Paid-In-Capital Common Non-Controlling Interest Balances, December 31, 2019 $ 4,210 $ 7,962 $ (2,618) $ (2,169) $ 112 $ 923 Comprehensive income Net earnings 149 154 — — — (5) Other comprehensive income (95) — (97) — — 2 Comprehensive income 54 154 (97) — — (3) Stock issued (repurchased) (115) — — (115) — — Dividends declared (75) (75) — — — — Balances, March 31, 2020 $ 4,074 $ 8,041 $ (2,715) $ (2,284) $ 112 $ 920 Comprehensive income Net earnings 20 30 — — — (10) Other comprehensive income (16) — (16) — — — Comprehensive income 4 30 (16) — — (10) Stock issued (repurchased) 19 — — 19 — — Dividends declared (83) (80) — — — (3) Balances, June 30, 2020 4,014 7,991 (2,731) (2,265) 112 907 Comprehensive income Net earnings 393 392 — — — 1 Other comprehensive income (23) — (23) — — — Comprehensive income 370 392 (23) — — 1 Stock issued (repurchased) 55 — — 54 1 — Dividends declared (77) (76) — — — (1) Balances, September 30, 2020 $ 4,362 $ 8,307 $ (2,754) $ (2,211) $ 113 $ 907 Other Comprehensive Income (Loss) The following table summarizes our other comprehensive income (loss) and related tax effects for the periods presented: Three Months Ended September 30, 2021 2020 Millions of dollars Pre-tax Tax Effect Net Pre-tax Tax Effect Net Currency translation adjustments (2) $ 8 (2) $ 6 $ (117) 5 $ (112) Cash flow hedges 50 (14) 36 — — — Pension and other postretirement benefits plans 9 (5) 4 118 (29) 89 Other comprehensive income (loss) 67 (21) 46 1 (24) (23) Less: Other comprehensive income (loss) available to noncontrolling interests (1) — (1) — — — Other comprehensive income (loss) available to Whirlpool $ 68 $ (21) $ 47 $ 1 $ (24) $ (23) Nine Months Ended September 30, 2021 2020 Millions of dollars Pre-tax Tax Effect Net Pre-tax Tax Effect Net Currency translation adjustments (2) $ 334 $ (1) $ 333 $ (350) $ (12) $ (362) Cash flow hedges 58 (21) 37 118 (25) 93 Pension and other postretirement benefits plans 42 (13) 29 180 (44) 136 Other comprehensive income (loss) 434 (35) 399 (52) (81) (133) Less: Other comprehensive income (loss) available to noncontrolling interests — — — 2 — 2 Other comprehensive income (loss) available to Whirlpool $ 434 $ (35) $ 399 $ (54) $ (81) $ (135) (2) 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 nine months ended September 30, 2021: Three Months Ended Nine Months Ended Millions of dollars (Gain) Loss Reclassified (Gain) Loss Reclassified Classification in Earnings Pension and postretirement benefits, pre-tax $ 9 $ 34 Interest and sundry (income) expense Currency translation related to divestitures $ — $ (198) (Gain) loss on sale and disposal of businesses Total $ 9 $ (164) Net Earnings per Share Diluted net earnings per share of common stock include the dilutive effect of stock options and other share-based compensation plans. Basic and diluted net earnings per share of common stock for the periods presented were calculated as follows: Three Months Ended September 30, Nine Months Ended September 30, Millions of dollars and shares 2021 2020 2021 2020 Numerator for basic and diluted earnings per share - Net earnings (loss) available to Whirlpool $ 471 $ 392 $ 1,485 $ 576 Denominator for basic earnings per share - weighted-average shares 62.2 62.6 62.7 62.6 Effect of dilutive securities - share-based compensation 0.5 0.7 0.5 0.5 Denominator for diluted earnings per share - adjusted weighted-average shares 62.7 63.3 63.2 63.1 Anti-dilutive stock options/awards excluded from earnings per share 0.1 1.1 0.1 1.7 Share Repurchase Program On July 25, 2017, our Board of Directors authorized a share repurchase program of up to $2 billion. As of September 30, 2021, there were no remaining funds available under this program. On April 19, 2021, our Board of Directors authorized an additional share repurchase program of up to $2 billion, which has no expiration date. At September 30, 2021, there were approximately $1.9 billion in remaining funds authorized under this program. During the nine months ended September 30, 2021, we repurchased approximately 3.0 million shares under these share repurchase programs at an aggregate price of approximately $641 million |
Restructuring Charges
Restructuring Charges | 9 Months Ended |
Sep. 30, 2021 | |
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. On June 26, 2020, the Company committed to a workforce reduction plan in the United States, as part of the Company's continued cost reduction efforts. The workforce reduction plan included a voluntary retirement program and involuntary severance actions which were effective as of the end of the second quarter of 2020. These actions were completed in 2020 and the Company incurred $102 million in employee termination costs related to these actions. The remaining cash settlement of $15 million will occur throughout 2021, 2022 and 2023. During the third quarter of 2020, the Company committed to workforce reductions outside of the United States, as part of the Company’s previously announced continued cost reduction efforts. The Company has incurred $93 million of the approximately $148 million total costs and the action will be substantially complete in 2021. Cash settlement of $80 million has been paid to date with the remaining cash settlement expected to be paid primarily over the duration of 2021. On May 31, 2019, we announced our intention to reconvert our Naples, Italy manufacturing plant and potentially sell the plant to a third party. On September 16, 2019, we entered into a preliminary agreement to sell the plant to a third-party purchaser and to support costs associated with the transition. In October 2019, we announced that, based on further discussions with unions and the Italian government, we will continue production at the Naples manufacturing plant in the near-term and resume negotiations with unions and the Italian government related to our exit of the plant. Our preliminary agreement to sell the plant to a third-party purchaser terminated in accordance with its terms in March 2020. We ceased production in the plant and exited the facility in 2020 as previously disclosed. In connection with this action, we have incurred approximately $141 million total costs comprising $43 million in asset impairment costs, $25 million in other associated costs and $73 million in employee-related costs through September 30, 2021. The Company has commenced the collective dismissal process which had been previously postponed in Italy as a result of the COVID-19 pandemic, and expects substantially all of the remaining $59 million cash settlement to occur in 2021, subject to the outcome of current litigation involving the unions, which should be resolved in 2021. Any negative outcome is not currently expected to materially impact cost, but could delay cash settlement into 2022. The following table summarizes the changes to our restructuring liability during the nine months ended September 30, 2021: Millions of dollars December 31, 2020 Charges to Earnings Cash Paid Non-Cash and Other September 30, 2021 Employee termination costs $ 145 $ 32 $ (72) $ — $ 105 Asset impairment costs 8 1 — (1) 8 Facility exit costs — 1 (1) — — Other exit costs 20 1 (16) (6) (1) Total $ 173 $ 35 $ (89) $ (7) $ 112 The following table summarizes the restructuring charges by operating segment for the period presented: Nine Months Ended Millions of dollars September 30, 2021 North America $ — EMEA 32 Latin America — Asia 2 Corporate / Other 1 Total $ 35 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Income tax expense was $100 million and $353 million for the three and nine months ended September 30, 2021, respectively, compared to income tax expense of $141 million and $231 million in the same periods of 2020. For the three months ended September 30, 2021, the decrease in tax expense from the prior period is primarily due to a tax benefit from tax audits and settlements related to the favorable outcome of certain tax litigation in Brazil. Specifically, on September 24, 2021, the Brazilian Supreme Court rendered a favorable decision in a case involving an unrelated taxpayer but applicable to Whirlpool and certain other companies, that exempts interest income received from the Brazilian government from income tax, resulting in a tax benefit of approximately $34 million. For the nine months ended September 30, 2021, the increase in tax expense from the prior period is due to higher overall earnings and related tax expense, partially offset by the tax effect of divestitures, audits and settlements and legal entity restructuring. 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 September 30, Nine Months Ended September 30, Millions of dollars 2021 2020 2021 2020 Earnings before income taxes $ 586 $ 534 $ 1,859 $ 793 Income tax expense computed at United States statutory tax rate 123 112 390 167 State and local taxes, net of federal tax benefit 17 15 49 22 Valuation allowances 3 6 5 12 Audit and settlements (32) 14 (17) 31 U.S. foreign income items, net of credits (1) (2) (1) (1) Changes in enacted tax rates — (6) (14) (6) Divestiture tax impact (1) — (22) — Legal entity restructuring tax impact — — (46) — Other (9) 2 9 6 Income tax expense (benefit) computed at effective worldwide tax rates $ 100 $ 141 $ 353 $ 231 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. Divestiture Tax Impact For the second quarter of 2021, the divestitures detailed in Note 15 generated an overall gain of $120 million, however for tax purposes, a taxable loss was incurred with no tax benefit recognized, resulting in a corresponding impact to tax expense of $21 million. As part of the legal entity restructuring associated with the Whirlpool China divestment, a tax deductible loss was generated in a separate jurisdiction with a related tax benefit in the amount of $46 million. An immaterial adjustment to the loss on sale and disposal of business was recorded in the third quarter of 2021. For additional information see Note 15 to the Consolidated Condensed Financial Statements. Other Income Tax Matters During its examination of Whirlpool’s 2009 U.S. federal income tax return, the IRS asserted that income earned by a Luxembourg subsidiary via its Mexican branch should be recognized as income on its 2009 U.S. federal income tax return. The Company believed the proposed assessment was without merit and contested the matter in United States Tax Court (US Tax Court). Both Whirlpool and the IRS moved for partial summary judgment on this issue. On May 5, 2020, the US Tax Court granted the IRS’s motion for partial summary judgment and denied Whirlpool’s. The Company has appealed the US Tax Court decision to the United States Court of Appeals for the Sixth Circuit, which heard arguments in June 2021. The Company believes that it will be successful and has not recorded any impact of the US Tax Court’s decision in its consolidated financial statements. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2021 | |
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, who is the Company's Chairman and Chief Executive Officer, 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. The tables below summarize performance by operating segment for the periods presented: Three Months Ended September 30, OPERATING SEGMENTS North EMEA Latin Asia (1) Other / Eliminations Total Net sales 2021 $ 3,113 $ 1,256 $ 841 $ 278 $ — $ 5,488 2020 2,961 1,258 719 353 — 5,291 Intersegment sales 2021 $ 89 $ 30 $ 327 $ 47 $ (493) $ — 2020 84 31 344 117 (576) — Depreciation and amortization 2021 $ 43 $ 39 $ 17 $ 4 $ 16 $ 119 2020 53 42 16 19 16 146 EBIT 2021 $ 553 $ 28 $ 73 $ 24 $ (48) $ 630 2020 560 43 77 6 (101) 585 Total assets September 30, 2021 $ 7,990 $ 10,032 $ 4,148 $ 1,646 $ (3,422) $ 20,394 December 31, 2020 7,597 11,296 4,244 2,573 (5,274) 20,436 Capital expenditures 2021 $ 42 $ 31 $ 34 $ 6 $ 9 $ 122 2020 34 29 12 10 11 96 Nine Months Ended September 30, OPERATING SEGMENTS North America EMEA Latin America Asia (1) Other / Eliminations Total Whirlpool Net sales 2021 $ 9,200 $ 3,676 $ 2,336 $ 958 $ — $ 16,170 2020 8,002 2,973 1,771 912 — 13,658 Intersegment sales 2021 $ 244 $ 76 $ 950 $ 239 $ (1,509) $ — 2020 203 70 894 275 (1,442) — Depreciation and amortization 2021 $ 132 $ 129 $ 48 $ 22 $ 47 $ 378 2020 143 123 47 52 49 414 EBIT 2021 $ 1,716 $ 80 $ 209 $ 50 $ (62) $ 1,993 2020 1,176 (38) 119 (28) (294) 935 Total assets September 30, 2021 $ 7,990 $ 10,032 $ 4,148 $ 1,646 $ (3,422) 20,394 December 31, 2020 7,597 11,296 4,244 2,573 (5,274) 20,436 Capital expenditures 2021 $ 107 $ 78 $ 77 $ 18 $ 26 $ 306 2020 87 61 38 33 32 251 (1) Decrease in Total assets of Asia region is mainly due to the deconsolidation of Whirlpool China. For additional information, see Note 15 to the Consolidated Condensed Financial Statements. The following table summarizes the reconciling items in the Other/Eliminations column for total EBIT for the periods presented: Three Months Ended September 30, Nine Months Ended September 30, in millions 2021 2020 2021 2020 Items not allocated to segments: Restructuring costs $ (7) $ (63) $ (35) $ (186) Gain (loss) on previously held equity interest 42 — 42 — Gain (loss) on sale and disposal of businesses (13) 7 107 7 Corrective action recovery — 13 — 13 Corporate expenses and other (70) (58) (176) (128) Total other/eliminations $ (48) $ (101) $ (62) $ (294) A reconciliation of our segment information for total EBIT to the corresponding amounts in the Consolidated Condensed Statements of Comprehensive Income (Loss) is shown in the table below for the periods presented: Three Months Ended September 30, Nine Months Ended September 30, in millions 2021 2020 2021 2020 Operating profit $ 552 $ 563 $ 1,854 $ 897 Interest and sundry (income) expense (78) (22) (139) (38) Total EBIT $ 630 $ 585 $ 1,993 $ 935 Interest expense 44 51 134 142 Income tax expense 100 141 353 231 Net earnings (loss) $ 486 $ 393 $ 1,506 $ 562 Less: Net earnings available to noncontrolling interests 15 1 21 (14) Net earnings (loss) available to Whirlpool $ 471 $ 392 $ 1,485 $ 576 |
Divestitures
Divestitures | 9 Months Ended |
Sep. 30, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Divestitures | DIVESTITURES Whirlpool China Divestment On August 25, 2020, Guangdong Galanz Household Appliances Manufacturing Co., Ltd. (“Galanz”) announced its intention to pursue a tender offer for majority control of Whirlpool China Co. Ltd. (“Whirlpool China”), a majority-owned subsidiary of the Company with shares listed on the Shanghai Stock Exchange. In its announcement, Galanz noted that it expected to offer RMB 5.23 per share (approximately $0.76 per share as of August 25, 2020) to obtain no less than 51% and no more than 61% of Whirlpool China’s outstanding shares. This share price offer was equal to the daily weighted average trading price for Whirlpool China stock over the 30 trading days prior to the announcement. In the first quarter of 2021, our Board of Directors approved the sale of Whirlpool China, which was reported within our Asia reportable segment and met the criteria for held for sale accounting during the first quarter of 2021. The operations of Whirlpool China did not meet the criteria to be presented as discontinued operations. On May 6, 2021, the tender offer was completed and the share transfer was executed for a consideration of RMB 1.25 billion (approximately $193 million on the date of completion). Subsequent to the share transfer, the Company holds an equity interest of approximately 20% in Whirlpool China. In connection with the sale, we recorded a gain, net of transaction and other costs, of $284 million during the second quarter of 2021. The gain on sale is equal to the difference between the total transaction amount and carrying value of Whirlpool China, which includes $74 million of cumulative foreign currency translation adjustments and $80 million of goodwill allocated to the disposal group. The total transaction amount includes $193 million of consideration received from the sale of Whirlpool China shares, $214 million for the fair value of the interest retained and the $783 million carrying value of the equity interest in Whirlpool China. The fair value of the interest retained was based on the ownership amount and the stock price of Whirlpool China as of the closing date of the transaction and we account for the remaining equity interest under the equity method accounting as of June 30, 2021. Earnings before income taxes prior to the share transfer of Whirlpool China were not material to the Company for the period presented. The following table presents the carrying amounts of the major classes of Whirlpool China’s assets and liabilities as of September 30, 2021 and December 31, 2020. Millions of dollars September 30, December 31, 2021 2020 Cash and cash equivalents $ — $ 324 Accounts receivable, net of allowance of $0 and $11, respectively — 85 Inventories — 98 Prepaid and other current assets — 93 Property, net of accumulated depreciation of $0 and $189, respectively — 309 Other noncurrent assets (1) — 283 Total assets $ — $ 1,192 Accounts payable $ — $ 216 Accrued expenses — 53 Other current liabilities — 254 Other noncurrent liabilities — 7 Total liabilities $ — $ 530 (1) Other non current assets include allocated goodwill of $80 million. Turkey Subsidiary Divestment On May 17, 2021, we entered into a share transfer agreement with Arçelik A.Ş. ("Arçelik") to sell our Turkish subsidiary for a cash purchase price of €78 million (approximately $93 million on June, 30 2021), subject to customary adjustments at closing. On June 30, 2021, we completed the sale of the Turkish subsidiary. In connection with the sale, we recorded a loss on disposal of $164 million in the second quarter of 2021. The loss includes a charge of $40 million for the write-down of the assets of the disposal group to fair value and allocated goodwill, and $124 million of cumulative foreign currency translation adjustments included in the carrying amount of the disposal group. During the third quarter of 2021, amounts for working capital and other customary post-closing adjustments were finalized and an additional $13 million loss related to the sale of business was recorded. The Turkish subsidiary, whose primary asset was a manufacturing plant, was reported within our EMEA reportable segment. The operations of Turkey did not meet the criteria to be presented as discontinued operations. Earnings before income taxes for Turkey were not material for the periods presented. For additional information see Note 10 to the Consolidated Condensed Financial Statements. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
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 U.S. 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, 2020. 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. 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. |
Risks and Uncertainties | Risks and Uncertainties COVID-19 continues to impact countries across the world, and the duration and severity of the effects are currently unknown. The pandemic has impacted the Company and could materially impact our financial results in the future. The Consolidated Condensed Financial Statements presented herein reflect estimates and assumptions made by management at September 30, 2021. Such estimates and assumptions affect, among other things, the Company’s goodwill, long-lived asset and indefinite-lived intangible asset valuation; inventory valuation; assessment of the annual effective tax rate; valuation of deferred income taxes and income tax contingencies; and the allowance for expected credit losses and bad debt. Events and changes in circumstances arising after October 22, 2021, including those resulting from the impacts of COVID-19, will be reflected in management’s estimates for future periods. As a result of our analysis, and in consideration of the totality of events and circumstances, there were no triggering events of impairment identified during the third quarter of 2021. A lack of recovery or further deterioration in market conditions, a sustained trend of weaker than expected financial performance in EMEA or for our Indesit , Hotpoint*, Maytag or JennAir trademarks or a lack of recovery or a decline in the Company’s market capitalization, among other factors, as a result of the COVID-19 pandemic or other unforeseen events could result in an impairment charge in future periods which could have a material adverse effect on our financial statements. |
Goodwill and Indefinite-lived Intangible Assets | Goodwill and indefinite-lived intangible assets Our Critical Accounting Policies and Estimates for goodwill and other indefinite-lived intangibles are disclosed in Note 1 to the Consolidated Financial Statements and in Management's Discussion and Analysis of our annual report on Form 10-K for the fiscal year ended December 31, 2020. We continue to monitor the significant global economic uncertainty to assess the outlook for demand for our products and the impact on our business and our overall financial performance. The goodwill in our EMEA reporting unit and our Indesit , Hotpoint*, Maytag and JennAir trademarks continue to be at risk at September 30, 2021. The goodwill in our other reporting units or indefinite-lived intangible assets are not presently at risk for future impairment. The potential impact of demand disruptions, production impacts or supply constraints could negatively effect revenues for the Indesit, Hotpoint *, Maytag and JennAir trademarks and the EMEA reporting unit, but we remain committed to the strategic actions necessary to realize the long-term forecasted EBIT margins. |
Income Taxes | Income taxes Under U.S. GAAP, the Company calculates its quarterly tax provision based on an estimated effective tax rate for the year and then adjusts this amount by certain discrete items each quarter. Potential changing and volatile macro-economic conditions could cause fluctuations in forecasted earnings before income taxes. As such, the Company's effective tax rate could be subject to volatility as forecasted earnings before income taxes are impacted by events which cannot be predicted. In addition, potential future economic deterioration brought on by the pandemic or other factors may negatively impact the realizability of certain deferred tax assets. |
Supply Chain Financing Arrangements | Supply Chain Financing Arrangements The Company has ongoing agreements globally with various third-parties to allow certain suppliers the opportunity to sell receivables due from us to participating financial institutions at the sole discretion of both the suppliers and the financial institutions. We have no economic interest in the sale of these receivables and no direct financial relationship with the financial institutions concerning these services. Our obligations to suppliers, including amounts due and scheduled payment terms, are not impacted. All outstanding balances under these programs are recorded in accounts payable on our Consolidated Condensed Balance Sheets, approximately $1.3 billion and $1.2 billion has been issued to participating financial institutions at September 30, 2021 and December 31, 2020, respectively. A downgrade in our credit rating or changes in the financial markets could limit the financial institutions’ willingness to commit funds to, and participate in, the programs. We do not believe such risk would have a material impact on our working capital or cash flows. Due to the completed partial tender offer for Whirlpool China and subsequent deconsolidation of the subsidiary during the second quarter of 2021, we no longer have material supply chain financing arrangements in China. For additional information see Note 15 to the Consolidated Condensed Financial Statements. |
Inventories | Inventories Effective January 1, 2021, the Company changed its accounting principle for inventory valuation for inventories located in the U.S. from a last-in, first-out ("LIFO") basis to a first-in, first-out ("FIFO") basis. All prior periods presented in the Consolidated Condensed Financial Statements have been retrospectively adjusted to apply the effects of the change in accounting principle. |
Equity Method Investments | Equity Method Investments After May 6, 2021, Whirlpool holds an equity interest of approximately 20% in Whirlpool China, an entity which was previously controlled by the Company. We account for the remaining interest under equity method accounting and Whirlpool China and its subsidiaries continue to supply the Company in the normal course of business. Whirlpool China was also granted a license to sell Whirlpool-branded products in China. Subsequent to the completion of the partial tender offer for Whirlpool China and deconsolidation of the entity in the second quarter of 2021, we made purchases from Whirlpool China of $86 million and $152 million for the three and nine months ended September 30, 2021, respectively. The outstanding amount due to Whirlpool China and its subsidiaries is $139 million as of September 30, 2021. The licensing revenue and outstanding accounts receivable from Whirlpool China and its subsidiaries are not material for the periods presented. As of September 30, 2021, the value of the equity interest in Whirlpool China is $210 million and is included in Other noncurrent assets in the Consolidated Condensed Balance Sheet. The Company’s share of the results of equity method investments and elimination of intra-entity results are included in Interest and sundry (income) expense in the Consolidated Condensed Income Statement and Other noncurrent assets in the Consolidated Condensed Balance Sheet. The impact of equity method investments is not material for the periods presented. For additional information, see Note 15 to the Consolidated Condensed Financial Statements. Related Party Transactions In 2018, Whirlpool of India Limited (“Whirlpool India”), a majority-owned subsidiary of Whirlpool Corporation, acquired a 49% equity interest in Elica PB India Private Limited (“Elica PB India”) for $22 million. On September 27, 2021, the Company entered into a share purchase agreement to acquire an additional 38% equity interest in Elica PB India for $57 million, which resulted in a controlling equity ownership of 87%. Following the closing of the transaction on September 29, 2021, Elica PB India is consolidated in Whirlpool Corporation's financial statements and is reported within our Asia reportable segment. The transaction resulted in a gain of approximately $42 million on the Company’s previously held equity interest. This gain was recorded within Interest and sundry (income) expense during the third quarter. The Company is in the process of finalizing independent appraisals for the purpose of allocating the purchase price to the individual assets acquired and liabilities assumed in the acquisition. The preliminary allocation of the purchase price included in the Consolidated Condensed Balance Sheet at September 30, 2021 is based on the best estimates of management and is subject to revision of the final determination of asset fair values and useful lives. Any changes to the preliminary estimates of the fair values of the assets and liabilities could potentially impact goodwill as well as future depreciation and amortization expense. On a preliminary basis, goodwill of $100 million, which is not deductible for tax purposes, has been allocated to the Asia reportable segment. The allocation has been made on the basis that the anticipated synergies identified will primarily benefit this reportable segment. Both Whirlpool India and the non-controlling interest shareholders retain an option for Whirlpool India to purchase the remaining equity interest in Elica PB India for fair value, which could be material to the financial statements of the Company, depending on the performance of the business. |
Adoption of New Accounting Standards | Adoption of New Accounting Standards We adopted the following standard, which did not have a material impact on our Consolidated Condensed Financial Statements: Standard Effective Date 2019-12 Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes January 1, 2021 All other newly issued and effective accounting standards during 2021 were not relevant or material to the Company. Accounting Pronouncements Issued But Not Yet Effective In March 2020, the FASB issued Update 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting". The amendments in Update 2020-04 are elective and apply to all entities that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform. The new guidance provides the following optional expedients: simplify accounting analyses under current U.S. GAAP for contract modifications, simplify the assessment of hedge effectiveness, allow hedging relationships affected by reference rate reform to continue and allow a one-time election to sell or transfer debt securities classified as held to maturity that reference a rate affected by reference rate reform. In January 2021, the FASB issued Update 2021-01, "Reference Rate Reform (Topic 848): Scope". The update provides additional optional guidance on the transition from LIBOR to include derivative instruments that use an interest rate for margining, discounting or contract price alignment. The standard will ease, if warranted, the requirements for accounting for the future effects of the rate reform. An entity may elect to apply the amendments prospectively through December 31, 2022. We continue to monitor the impact the discontinuance of LIBOR or another reference rate will have on our contracts, hedging relationships and other transactions. All other issued and not yet effective accounting standards are not relevant or material to the Company. |
Derivatives | Hedging Strategy In the normal course of business, we manage risks relating to our ongoing business operations including those arising from changes in commodity prices, foreign exchange rates and interest rates. 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. Commodity Price Risk We enter into commodity derivative contracts on various commodities to manage the price risk associated with forecasted purchases and sales of material used in our manufacturing process. The objective of these hedges is to reduce the variability of cash flows associated with the forecasted purchases and sales of commodities. Foreign Currency and Interest 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, intercompany loans and dividends. When we hedge a foreign currency denominated payable or receivable with a derivative, the effect of changes in the foreign exchange rates are reflected currently in interest and sundry (income) expense for both the payable/receivable and the derivative. Therefore, as a result of the economic hedge, we do not elect hedge accounting. We also enter into hedges to mitigate currency risk primarily related to forecasted foreign currency denominated expenditures, intercompany financing agreements and royalty agreements and designate them as cash flow hedges. Gains and losses on derivatives designated as cash flow hedges, to the extent they are included in the assessment of effectiveness, are recorded in other comprehensive income (loss) and subsequently reclassified to earnings to offset the impact of the hedged items when they occur. We may enter into cross-currency interest rate swaps to manage our exposure relating to cross-currency debt. The notional amount of outstanding cross-currency interest rate swap agreements was $1,275 million at September 30, 2021 and December 31, 2020. 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, or 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 may enter into swap rate lock agreements to effectively reduce our exposure to interest rate risk by locking in interest rates on probable long-term debt issuances. Outstanding notional amounts of interest rate swap agreements were $300 million at September 30, 2021 and December 31, 2020, respectively. |
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. |
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, who is the Company's Chairman and Chief Executive Officer, 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. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | We adopted the following standard, which did not have a material impact on our Consolidated Condensed Financial Statements: Standard Effective Date 2019-12 Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes January 1, 2021 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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. For additional information on the disaggregated revenues by geographic regions, see Note 14 to the Consolidated Condensed Financial Statements. Three Months Ended September 30, Nine Months Ended September 30, Millions of dollars 2021 2020 2021 2020 Major product categories: Laundry $ 1,498 $ 1,588 $ 4,447 $ 3,989 Refrigeration 1,762 1,701 5,016 4,368 Cooking 1,348 1,159 4,097 3,011 Dishwashing 479 509 1,403 1,320 Total major product category net sales $ 5,087 $ 4,957 $ 14,963 $ 12,688 Spare parts and warranties 302 247 860 681 Other 99 87 347 289 Total net sales $ 5,488 $ 5,291 $ 16,170 $ 13,658 |
Allowance for Doubtful Accounts by Operating Segment | The following table summarizes our allowance for expected credit losses by operating segment for the nine months ended September 30, 2021: Millions of dollars December 31, 2020 Charged to Earnings Write-offs Foreign Currency Other (1) September 30, 2021 Accounts receivable allowance North America $ 7 $ 4 (3) — $ — $ 8 EMEA 67 1 (15) (6) — $ 47 Latin America 44 4 (2) (1) — $ 45 Asia 14 — — — (11) $ 3 Consolidated $ 132 $ 9 $ (20) $ (7) $ (11) $ 103 Financing receivable allowance Latin America $ 27 $ — $ — $ (1) $ — $ 26 Asia 21 — — — (21) — $ 48 $ — $ — $ (1) $ (21) $ 26 Consolidated $ 180 $ 9 $ (20) $ (8) $ (32) $ 129 (1) Accounts receivable and financing receivable allowance of Whirlpool China which were previously classified under accounts receivable and noncurrent assets, respectively, have been removed as part of the deconsolidation of Whirlpool China. For additional information, see Note 15 to the Consolidated Condensed Financial Statements. |
Cash, Cash Equivalents and Re_2
Cash, Cash Equivalents and Restricted Cash (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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: September 30, Millions of dollars 2021 2020 Cash and cash equivalents as presented in our Consolidated Condensed Balance Sheets $ 2,875 $ 3,528 Restricted cash included in prepaid and other current assets (1) — 13 Cash, cash equivalents and restricted cash as presented in our Consolidated Condensed Statements of Cash Flows $ 2,875 $ 3,541 December 31, Millions of dollars 2020 2019 Cash and cash equivalents as presented in our Consolidated Balance Sheets $ 2,924 $ 1,952 Restricted cash included in prepaid and other current assets (1) 10 — Cash, cash equivalents and restricted cash as presented in our Consolidated Statements of Cash Flows $ 2,934 $ 1,952 |
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: September 30, Millions of dollars 2021 2020 Cash and cash equivalents as presented in our Consolidated Condensed Balance Sheets $ 2,875 $ 3,528 Restricted cash included in prepaid and other current assets (1) — 13 Cash, cash equivalents and restricted cash as presented in our Consolidated Condensed Statements of Cash Flows $ 2,875 $ 3,541 December 31, Millions of dollars 2020 2019 Cash and cash equivalents as presented in our Consolidated Balance Sheets $ 2,924 $ 1,952 Restricted cash included in prepaid and other current assets (1) 10 — Cash, cash equivalents and restricted cash as presented in our Consolidated Statements of Cash Flows $ 2,934 $ 1,952 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Inventory, Net [Abstract] | |
Schedule of Inventory | The following table summarizes our inventories at September 30, 2021 and December 31, 2020: Millions of dollars September 30, 2021 December 31, 2020 Finished products $ 2,134 $ 1,635 Raw materials and work in process 742 666 Total Inventories $ 2,876 $ 2,301 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property, Plant and Equipment | The following table summarizes our property, plant and equipment at September 30, 2021 and December 31, 2020: Millions of dollars September 30, 2021 December 31, 2020 Land $ 83 $ 92 Buildings 1,289 1,517 Machinery and equipment 7,968 8,370 Accumulated depreciation (6,627) (6,780) Property, plant and equipment, net (1) $ 2,713 $ 3,199 (1) Decrease of $379 million in property, plant and equipment is due to the deconsolidation of Whirlpool China and divestment of Turkey subsidiary entity. For additional information, see Note 15 to the Consolidated Condensed Financial Statements. |
Financing Arrangements (Tables)
Financing Arrangements (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Notes Payable | The following table summarizes the carrying value of notes payable at September 30, 2021 and December 31, 2020: Millions of dollars September 30, 2021 December 31, 2020 Short-term borrowings due to banks 12 12 Total notes payable $ 12 $ 12 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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 2021 2020 Balance at January 1 $ 273 $ 383 Issuances/accruals during the period 258 178 Settlements made during the period/other (220) (272) Balance at September 30 $ 311 $ 289 Current portion $ 211 $ 186 Non-current portion 100 104 Total $ 311 $ 289 |
Pension and Other Postretirem_2
Pension and Other Postretirement Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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 September 30, United States Foreign Other Postretirement Millions of dollars 2021 2020 2021 2020 2021 2020 Service cost $ 1 $ 1 $ 1 $ 1 $ — $ 1 Interest cost 20 25 4 4 1 1 Expected return on plan assets $ (39) $ (42) $ (9) $ (7) $ — $ — Amortization: Actuarial loss $ 17 $ 15 $ 4 $ 3 $ — $ — Prior service credit — — — — (12) (12) Settlement and curtailment (gain) loss 2 — — 1 — — Net periodic benefit cost (credit) $ 1 $ (1) $ — $ 2 $ (11) $ (10) Nine Months Ended September 30, United States Foreign Other Postretirement Millions of dollars 2021 2020 2021 2020 2021 2020 Service cost $ 2 $ 2 $ 4 $ 4 $ — $ 4 Interest cost 58 74 11 13 4 7 Expected return on plan assets (118) (124) (26) (22) — — Amortization: Actuarial loss 52 46 14 9 — — Prior service credit — — — — (35) (16) Settlement and curtailment (gain) loss 5 — — 1 — (4) Net periodic benefit cost (credit) $ (1) $ (2) $ 3 $ 5 $ (31) $ (9) 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 September 30, United States Foreign Other Postretirement Millions of dollars 2021 2020 2021 2020 2021 2020 Operating profit (loss) $ 1 $ 1 $ 1 $ 1 $ — $ 1 Interest and sundry (income) expense — (2) (1) 1 (11) (11) Net periodic benefit cost $ 1 $ (1) $ — $ 2 $ (11) $ (10) Nine Months Ended September 30, United States Foreign Other Postretirement Millions of dollars 2021 2020 2021 2020 2021 2020 Operating profit (loss) $ 2 $ 2 $ 4 $ 4 $ — $ 4 Interest and sundry (income) expense (3) (4) (1) 1 (31) (13) Net periodic benefit cost $ (1) $ (2) $ 3 $ 5 $ (31) $ (9) |
Hedges and Derivative Financi_2
Hedges and Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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 September 30, 2021 and December 31, 2020: Notional (Local) Notional (USD) Current Maturity Instrument 2021 2020 2021 2020 Foreign exchange forwards/options MXN 7,200 MXN 7,200 $ 350 $ 362 August 2022 The following table summarizes our outstanding derivative contracts and their effects in our Consolidated Condensed Balance Sheets at September 30, 2021 and December 31, 2020: Fair Value of Notional Amount Hedge Assets Hedge Liabilities Maximum Term (Months) Millions of dollars 2021 2020 2021 2020 2021 2020 2021 2020 Derivatives accounted for as hedges (1) Commodity swaps/options $ 268 $ 215 $ 48 $ 39 $ 3 $ 4 (CF) 21 30 Foreign exchange forwards/options 2,871 3,028 107 58 62 110 (CF/NI) 125 134 Cross-currency swaps 1,275 1,275 25 23 27 86 (CF) 89 98 Interest rate derivatives 300 300 — — 7 28 (CF) 44 53 Total derivatives accounted for as hedges $ 180 $ 120 $ 99 $ 228 Derivatives not accounted for as hedges Commodity swaps/options $ 1 $ 1 $ — $ — $ — $ — N/A 0 0 Foreign exchange forwards/options 2,970 4,161 33 25 17 96 N/A 11 12 Total derivatives not accounted for as hedges 33 25 17 96 Total derivatives $ 213 $ 145 $ 116 $ 324 Current $ 205 $ 103 $ 80 $ 152 Noncurrent 8 42 36 172 Total derivatives $ 213 $ 145 $ 116 $ 324 (1) Derivatives accounted for as hedges are considered either cash flow (CF) or net investment (NI) hedges. |
Schedule of Effects of Derivative Instruments on Consolidated Statements of Income | The following tables summarize the effects of derivative instruments on our Consolidated Condensed Statements of Comprehensive Income for the periods presented: Three Months Ended September 30, Gain (Loss) (2) Millions of dollars 2021 2020 Cash flow hedges Commodity swaps/options $ 9 $ 23 Foreign exchange forwards/options 62 (37) Cross-currency swaps 40 (62) Interest rate derivatives 1 13 Net Investment hedges Foreign currency 7 (14) 119 (77) Three Months Ended September 30, Location of Gain (Loss) Reclassified from Gain (Loss) Reclassified from OCI into Earnings (Effective Portion) (3) Cash Flow Hedges - Millions of dollars 2021 2020 Commodity swaps/options Cost of products sold $ 21 $ (4) Foreign exchange forwards/options Net sales (2) 2 Foreign exchange forwards/options Cost of products sold (9) 11 Foreign exchange forwards/options Interest and sundry (income) expense 14 (21) Cross-currency swaps Interest and sundry (income) expense 37 (51) 61 (63) Three Months Ended September 30, Location of Gain (Loss) Recognized on Derivatives not Gain (Loss) Recognized on Derivatives not Derivatives not Accounted for as Hedges - Millions of dollars 2021 2020 Foreign exchange forwards/options Interest and sundry (income) expense $ 38 $ (18) (2) Change in gain (loss) recognized in OCI (effective portion) for the three months ended September 30, 2021 is primarily driven by fluctuations in currency and commodity prices and interest rates compared to prior year. The tax impact of the cash flow hedges was $(14) million and $2 million for the three months ended September 30, 2021 and 2020, respectively. The tax impact of the net investment hedges was $(2) million and $5 million for the three months ended September 30, 2021 and 2020, respectively. (3) Change in gain (loss) reclassified from OCI into earnings (effective portion) for the three months ended September 30, 2021 was primarily driven by fluctuations in currency and commodity prices and interest rates compared to prior year. Nine Months Ended September 30, Gain (Loss) (4) Millions of dollars 2021 2020 Cash flow hedges Commodity swaps/options $ 63 $ (8) Foreign exchange 69 58 Cross-currency swaps 84 33 Interest rate derivatives 21 (53) Net investment hedges Foreign currency 4 39 $ 241 $ 69 Nine Months Ended September 30, Location of Gain (Loss) Reclassified from Gain (Loss) Reclassified from OCI into Earnings (Effective Portion) (5) Cash Flow Hedges - Millions of dollars 2021 2020 Commodity swaps/options Cost of products sold $ 50 $ (21) Foreign exchange forwards/options Net sales — 5 Foreign exchange forwards/options Cost of products sold (3) 20 Foreign exchange forwards/options Interest and sundry (income) expense 43 (52) Cross-currency swaps Interest and sundry (income) expense 88 (40) $ 178 $ (88) Nine Months Ended September 30, Location of Gain (Loss) Recognized on Derivatives not Gain (Loss) Recognized on Derivatives not Derivatives not Accounted for as Hedges - Millions of dollars 2021 2020 Foreign exchange forwards/options Interest and sundry (income) expense $ 70 $ (1) (4) Change in gain (loss) recognized in OCI (effective portion) for the nine months ended September 30, 2021 is primarily driven by fluctuations in currency and commodity prices and interest rates compared to prior year. The tax impact of the cash flow hedges was $(20) million and $(25) million for the nine months ended September 30, 2021 and 2020, respectively. The tax impact of the net investment hedges was $(1) million and $(12) million for the nine months ended September 30, 2021 and 2020, respectively. (5) Change in gain (loss) reclassified from OCI into earnings (effective portion) for the nine months ended September 30, 2021 was primarily driven by fluctuations in currency and commodity prices and interest rates compared to prior year. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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 September 30, 2021 and December 31, 2020 are as follows: Fair Value Millions of dollars Total Cost Basis Level 1 Level 2 (2) Total Measured at fair value on a recurring basis: 2021 2020 2021 2020 2021 2020 2021 2020 Short-term investments (1) $ 2,105 $ 2,164 $ 1,926 $ 1,603 $ 179 $ 561 $ 2,105 $ 2,164 Net derivative contracts — — — — 97 (179) 97 (179) (1) Short-term investments are primarily comprised of money market funds and highly liquid, low risk investments with initial maturities less than 90 days. (2) Change in level 2 short-term investments is primarily driven by the deconsolidation of Whirlpool China. For additional information, see Note 15 to the Consolidated Condensed Financial Statements. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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 Accumulated Other Comprehensive Income (Loss) Treasury Stock / Additional Paid-In-Capital Common Non-Controlling Interest (1) Balances, December 31, 2020 $ 4,795 $ 8,725 $ (2,811) $ (2,142) $ 113 $ 910 Comprehensive income Net earnings 440 433 — — — 7 Other comprehensive income 124 — 124 — — — Comprehensive income 564 433 124 — — 7 Stock issued (repurchased) (141) — — (141) — — Dividends declared (79) (79) — — — — Balances, March 31, 2021 5,139 9,079 (2,687) (2,283) 113 917 Comprehensive income Net earnings 580 581 — — — (1) Other comprehensive income 229 — 228 — — 1 Comprehensive income 809 581 228 — — — Stock issued (repurchased) 8 — — 7 1 — Dividends declared (88) (88) — — — — Divestitures (783) — — — — (783) Balances, June 30, 2021 5,085 9,572 (2,459) (2,276) 114 134 Comprehensive income Net earnings 486 471 — — — 15 Other comprehensive income 46 — 47 — — (1) Comprehensive income 532 471 47 — — 14 Stock issued (repurchased) (419) — — (419) — — Dividends declared (88) (86) — — — (2) Acquisitions (2) 19 — — — — 19 Balances, September 30, 2021 $ 5,129 $ 9,957 $ (2,412) $ (2,695) $ 114 $ 165 (1) Decrease of $783 million in noncontrolling interest is mainly due to the deconsolidation of Whirlpool China. For additional information, see Note 15 to the Consolidated Condensed Financial Statements. (2) Amount reflects the fair value of Elica PB India non-controlling interest. Whirlpool Stockholders' Equity Total Retained Accumulated Other Comprehensive Income (Loss) Treasury Stock / Additional Paid-In-Capital Common Non-Controlling Interest Balances, December 31, 2019 $ 4,210 $ 7,962 $ (2,618) $ (2,169) $ 112 $ 923 Comprehensive income Net earnings 149 154 — — — (5) Other comprehensive income (95) — (97) — — 2 Comprehensive income 54 154 (97) — — (3) Stock issued (repurchased) (115) — — (115) — — Dividends declared (75) (75) — — — — Balances, March 31, 2020 $ 4,074 $ 8,041 $ (2,715) $ (2,284) $ 112 $ 920 Comprehensive income Net earnings 20 30 — — — (10) Other comprehensive income (16) — (16) — — — Comprehensive income 4 30 (16) — — (10) Stock issued (repurchased) 19 — — 19 — — Dividends declared (83) (80) — — — (3) Balances, June 30, 2020 4,014 7,991 (2,731) (2,265) 112 907 Comprehensive income Net earnings 393 392 — — — 1 Other comprehensive income (23) — (23) — — — Comprehensive income 370 392 (23) — — 1 Stock issued (repurchased) 55 — — 54 1 — Dividends declared (77) (76) — — — (1) Balances, September 30, 2020 $ 4,362 $ 8,307 $ (2,754) $ (2,211) $ 113 $ 907 |
Schedule of Other Comprehensive Income | The following table summarizes our other comprehensive income (loss) and related tax effects for the periods presented: Three Months Ended September 30, 2021 2020 Millions of dollars Pre-tax Tax Effect Net Pre-tax Tax Effect Net Currency translation adjustments (2) $ 8 (2) $ 6 $ (117) 5 $ (112) Cash flow hedges 50 (14) 36 — — — Pension and other postretirement benefits plans 9 (5) 4 118 (29) 89 Other comprehensive income (loss) 67 (21) 46 1 (24) (23) Less: Other comprehensive income (loss) available to noncontrolling interests (1) — (1) — — — Other comprehensive income (loss) available to Whirlpool $ 68 $ (21) $ 47 $ 1 $ (24) $ (23) Nine Months Ended September 30, 2021 2020 Millions of dollars Pre-tax Tax Effect Net Pre-tax Tax Effect Net Currency translation adjustments (2) $ 334 $ (1) $ 333 $ (350) $ (12) $ (362) Cash flow hedges 58 (21) 37 118 (25) 93 Pension and other postretirement benefits plans 42 (13) 29 180 (44) 136 Other comprehensive income (loss) 434 (35) 399 (52) (81) (133) Less: Other comprehensive income (loss) available to noncontrolling interests — — — 2 — 2 Other comprehensive income (loss) available to Whirlpool $ 434 $ (35) $ 399 $ (54) $ (81) $ (135) (2) 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 nine months ended September 30, 2021: Three Months Ended Nine Months Ended Millions of dollars (Gain) Loss Reclassified (Gain) Loss Reclassified Classification in Earnings Pension and postretirement benefits, pre-tax $ 9 $ 34 Interest and sundry (income) expense Currency translation related to divestitures $ — $ (198) (Gain) loss on sale and disposal of businesses Total $ 9 $ (164) |
Schedule of Calculation of Numerator and Denominator in Earnings Per Share | Basic and diluted net earnings per share of common stock for the periods presented were calculated as follows: Three Months Ended September 30, Nine Months Ended September 30, Millions of dollars and shares 2021 2020 2021 2020 Numerator for basic and diluted earnings per share - Net earnings (loss) available to Whirlpool $ 471 $ 392 $ 1,485 $ 576 Denominator for basic earnings per share - weighted-average shares 62.2 62.6 62.7 62.6 Effect of dilutive securities - share-based compensation 0.5 0.7 0.5 0.5 Denominator for diluted earnings per share - adjusted weighted-average shares 62.7 63.3 63.2 63.1 Anti-dilutive stock options/awards excluded from earnings per share 0.1 1.1 0.1 1.7 |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Restructuring Charges [Abstract] | |
Schedule of Restructuring Liability and Restructuring Activity | The following table summarizes the changes to our restructuring liability during the nine months ended September 30, 2021: Millions of dollars December 31, 2020 Charges to Earnings Cash Paid Non-Cash and Other September 30, 2021 Employee termination costs $ 145 $ 32 $ (72) $ — $ 105 Asset impairment costs 8 1 — (1) 8 Facility exit costs — 1 (1) — — Other exit costs 20 1 (16) (6) (1) Total $ 173 $ 35 $ (89) $ (7) $ 112 |
Schedule of Restructuring Costs, By Operating Segment | The following table summarizes the restructuring charges by operating segment for the period presented: Nine Months Ended Millions of dollars September 30, 2021 North America $ — EMEA 32 Latin America — Asia 2 Corporate / Other 1 Total $ 35 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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 September 30, Nine Months Ended September 30, Millions of dollars 2021 2020 2021 2020 Earnings before income taxes $ 586 $ 534 $ 1,859 $ 793 Income tax expense computed at United States statutory tax rate 123 112 390 167 State and local taxes, net of federal tax benefit 17 15 49 22 Valuation allowances 3 6 5 12 Audit and settlements (32) 14 (17) 31 U.S. foreign income items, net of credits (1) (2) (1) (1) Changes in enacted tax rates — (6) (14) (6) Divestiture tax impact (1) — (22) — Legal entity restructuring tax impact — — (46) — Other (9) 2 9 6 Income tax expense (benefit) computed at effective worldwide tax rates $ 100 $ 141 $ 353 $ 231 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Information | The tables below summarize performance by operating segment for the periods presented: Three Months Ended September 30, OPERATING SEGMENTS North EMEA Latin Asia (1) Other / Eliminations Total Net sales 2021 $ 3,113 $ 1,256 $ 841 $ 278 $ — $ 5,488 2020 2,961 1,258 719 353 — 5,291 Intersegment sales 2021 $ 89 $ 30 $ 327 $ 47 $ (493) $ — 2020 84 31 344 117 (576) — Depreciation and amortization 2021 $ 43 $ 39 $ 17 $ 4 $ 16 $ 119 2020 53 42 16 19 16 146 EBIT 2021 $ 553 $ 28 $ 73 $ 24 $ (48) $ 630 2020 560 43 77 6 (101) 585 Total assets September 30, 2021 $ 7,990 $ 10,032 $ 4,148 $ 1,646 $ (3,422) $ 20,394 December 31, 2020 7,597 11,296 4,244 2,573 (5,274) 20,436 Capital expenditures 2021 $ 42 $ 31 $ 34 $ 6 $ 9 $ 122 2020 34 29 12 10 11 96 Nine Months Ended September 30, OPERATING SEGMENTS North America EMEA Latin America Asia (1) Other / Eliminations Total Whirlpool Net sales 2021 $ 9,200 $ 3,676 $ 2,336 $ 958 $ — $ 16,170 2020 8,002 2,973 1,771 912 — 13,658 Intersegment sales 2021 $ 244 $ 76 $ 950 $ 239 $ (1,509) $ — 2020 203 70 894 275 (1,442) — Depreciation and amortization 2021 $ 132 $ 129 $ 48 $ 22 $ 47 $ 378 2020 143 123 47 52 49 414 EBIT 2021 $ 1,716 $ 80 $ 209 $ 50 $ (62) $ 1,993 2020 1,176 (38) 119 (28) (294) 935 Total assets September 30, 2021 $ 7,990 $ 10,032 $ 4,148 $ 1,646 $ (3,422) 20,394 December 31, 2020 7,597 11,296 4,244 2,573 (5,274) 20,436 Capital expenditures 2021 $ 107 $ 78 $ 77 $ 18 $ 26 $ 306 2020 87 61 38 33 32 251 (1) Decrease in Total assets of Asia region is mainly due to the deconsolidation of Whirlpool China. For additional information, see Note 15 to the Consolidated Condensed Financial Statements. The following table summarizes the reconciling items in the Other/Eliminations column for total EBIT for the periods presented: Three Months Ended September 30, Nine Months Ended September 30, in millions 2021 2020 2021 2020 Items not allocated to segments: Restructuring costs $ (7) $ (63) $ (35) $ (186) Gain (loss) on previously held equity interest 42 — 42 — Gain (loss) on sale and disposal of businesses (13) 7 107 7 Corrective action recovery — 13 — 13 Corporate expenses and other (70) (58) (176) (128) Total other/eliminations $ (48) $ (101) $ (62) $ (294) A reconciliation of our segment information for total EBIT to the corresponding amounts in the Consolidated Condensed Statements of Comprehensive Income (Loss) is shown in the table below for the periods presented: Three Months Ended September 30, Nine Months Ended September 30, in millions 2021 2020 2021 2020 Operating profit $ 552 $ 563 $ 1,854 $ 897 Interest and sundry (income) expense (78) (22) (139) (38) Total EBIT $ 630 $ 585 $ 1,993 $ 935 Interest expense 44 51 134 142 Income tax expense 100 141 353 231 Net earnings (loss) $ 486 $ 393 $ 1,506 $ 562 Less: Net earnings available to noncontrolling interests 15 1 21 (14) Net earnings (loss) available to Whirlpool $ 471 $ 392 $ 1,485 $ 576 |
Divestitures (Tables)
Divestitures (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Whirlpool China's Earnings (Loss) Available to Whirlpool | The following table presents the carrying amounts of the major classes of Whirlpool China’s assets and liabilities as of September 30, 2021 and December 31, 2020. Millions of dollars September 30, December 31, 2021 2020 Cash and cash equivalents $ — $ 324 Accounts receivable, net of allowance of $0 and $11, respectively — 85 Inventories — 98 Prepaid and other current assets — 93 Property, net of accumulated depreciation of $0 and $189, respectively — 309 Other noncurrent assets (1) — 283 Total assets $ — $ 1,192 Accounts payable $ — $ 216 Accrued expenses — 53 Other current liabilities — 254 Other noncurrent liabilities — 7 Total liabilities $ — $ 530 (1) Other non current assets include allocated goodwill of $80 million. |
Basis of Presentation (Details)
Basis of Presentation (Details) - USD ($) $ in Millions | Sep. 27, 2021 | Sep. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2018 | Jun. 30, 2021 | May 06, 2021 | Dec. 31, 2020 |
Schedule of Equity Method Investments [Line Items] | ||||||||
Residual value guarantees | $ 238 | $ 238 | $ 220 | |||||
Accounts payable outsourcing | 1,300 | 1,300 | 1,200 | |||||
Gain (loss) on previously held equity interest | 42 | $ 0 | ||||||
Goodwill | 2,492 | 2,492 | $ 2,496 | |||||
Elica PB India | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Additional equity interest acquired | 38.00% | |||||||
Payment for additional equity interest acquired | $ 57 | |||||||
Total equity ownership percentage | 87.00% | |||||||
Gain (loss) on previously held equity interest | 42 | |||||||
Goodwill | 100 | 100 | ||||||
Whirlpool China | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Equity interest percentage | 20.00% | |||||||
Value of interest retained | 210 | 210 | $ 214 | |||||
Elica PB India | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Equity interest percentage | 49.00% | |||||||
Elica PB India | Whirlpool India | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Equity interest percentage | 49.00% | |||||||
Payments to acquire equity interest | $ 22 | |||||||
Whirlpool China | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Purchases with related party | 86 | 152 | ||||||
Outstanding amount due | $ 139 | $ 139 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 5,488 | $ 5,291 | $ 16,170 | $ 13,658 |
Laundry | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,498 | 1,588 | 4,447 | 3,989 |
Refrigeration | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,762 | 1,701 | 5,016 | 4,368 |
Cooking | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,348 | 1,159 | 4,097 | 3,011 |
Dishwashing | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 479 | 509 | 1,403 | 1,320 |
Total major product category net sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 5,087 | 4,957 | 14,963 | 12,688 |
Spare parts and warranties | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 302 | 247 | 860 | 681 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 99 | $ 87 | $ 347 | $ 289 |
Revenue Recognition - Allowance
Revenue Recognition - Allowance for Doubtful Accounts by Operating Segment (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Accounts receivable allowance | |
Balance at beginning of period | $ 132 |
Charged to Earnings | 9 |
Write-offs | (20) |
Foreign Currency | (7) |
Other | (11) |
Balance at end of period | 103 |
Financing receivable allowance | |
Balance at beginning of period | 48 |
Charged to Earnings | 0 |
Write-offs | 0 |
Foreign Currency | (1) |
Other | (21) |
Balance at end of period | 26 |
Balance at beginning of period | 180 |
Charged to Earnings | 9 |
Write-offs | (20) |
Foreign Currency | (8) |
Other | (32) |
Balance at end of period | 129 |
North America | |
Accounts receivable allowance | |
Balance at beginning of period | 7 |
Charged to Earnings | 4 |
Write-offs | (3) |
Foreign Currency | 0 |
Other | 0 |
Balance at end of period | 8 |
EMEA | |
Accounts receivable allowance | |
Balance at beginning of period | 67 |
Charged to Earnings | 1 |
Write-offs | (15) |
Foreign Currency | (6) |
Other | 0 |
Balance at end of period | 47 |
Latin America | |
Accounts receivable allowance | |
Balance at beginning of period | 44 |
Charged to Earnings | 4 |
Write-offs | (2) |
Foreign Currency | (1) |
Other | 0 |
Balance at end of period | 45 |
Financing receivable allowance | |
Balance at beginning of period | 27 |
Charged to Earnings | 0 |
Write-offs | 0 |
Foreign Currency | (1) |
Other | 0 |
Balance at end of period | 26 |
Asia | |
Accounts receivable allowance | |
Balance at beginning of period | 14 |
Charged to Earnings | 0 |
Write-offs | 0 |
Foreign Currency | 0 |
Other | (11) |
Balance at end of period | 3 |
Financing receivable allowance | |
Balance at beginning of period | 21 |
Charged to Earnings | 0 |
Write-offs | 0 |
Foreign Currency | 0 |
Other | (21) |
Balance at end of period | $ 0 |
Cash, Cash Equivalents and Re_3
Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 |
Cash and Cash Equivalents [Abstract] | ||||
Cash and cash equivalents as presented in our Consolidated Condensed Balance Sheets | $ 2,875 | $ 2,924 | $ 3,528 | $ 1,952 |
Restricted cash included in prepaid and other current assets | 0 | 10 | 13 | 0 |
Cash, cash equivalents and restricted cash as presented in our Consolidated Condensed Statements of Cash Flows | $ 2,875 | $ 2,934 | $ 3,541 | $ 1,952 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Inventory, Net [Abstract] | ||
Finished products | $ 2,134 | $ 1,635 |
Raw materials and work in process | 742 | 666 |
Total Inventories | $ 2,876 | $ 2,301 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | ||
Accumulated depreciation | $ (6,627) | $ (6,780) |
Property, plant and equipment, net | 2,713 | 3,199 |
Disposed of fully depreciated buildings, machinery and equipment | 10 | |
Whirlpool China And Turkey Subsidiary | Disposed of by Sale | ||
Property, Plant and Equipment [Line Items] | ||
Transfer of property, plant and equipment | 379 | |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 83 | 92 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 1,289 | 1,517 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 7,968 | $ 8,370 |
Financing Arrangements - Narrat
Financing Arrangements - Narrative (Details) | May 07, 2020USD ($) | Mar. 13, 2020USD ($) | Feb. 21, 2020USD ($) | Sep. 27, 2017 | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Apr. 29, 2021USD ($) | Apr. 26, 2021USD ($) | Dec. 31, 2020USD ($) | Apr. 27, 2020USD ($) | Feb. 21, 2020EUR (€) | Aug. 06, 2019USD ($) |
Debt Instrument [Line Items] | ||||||||||||
Outstanding borrowings | $ 4,961,000,000 | $ 5,059,000,000 | ||||||||||
Repayments of long-term debt | 300,000,000 | $ 568,000,000 | ||||||||||
Amounts borrowed under line of credit | 300,000,000 | 1,031,000,000 | ||||||||||
Letter of Credit Subfacility Maturing 2022 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of credit facility, maximum borrowing capacity | 197,000,000 | 206,000,000 | ||||||||||
2.400% notes maturing 2031 | Senior Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, face amount | $ 300,000,000 | |||||||||||
Debt instrument, interest rate, stated percentage | 2.40% | |||||||||||
4.850% notes maturing 2021 | Senior Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, face amount | $ 300,000,000 | |||||||||||
Debt instrument, interest rate, stated percentage | 4.85% | |||||||||||
4.60% notes maturing 2050 | Senior Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, face amount | $ 500,000,000 | |||||||||||
Debt instrument, interest rate, stated percentage | 4.60% | |||||||||||
Debt instrument, redemption price, percentage | 101.00% | |||||||||||
0.50% notes maturing 2028 | Senior Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, face amount | $ 540,000,000 | € 500,000,000 | ||||||||||
Debt instrument, interest rate, stated percentage | 0.50% | 0.50% | ||||||||||
Debt instrument, redemption price, percentage | 101.00% | |||||||||||
Third Amended and Restated Long-Term Credit Agreement | Line of Credit | Revolving Credit Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of credit facility, maximum borrowing capacity | $ 2,200,000,000 | $ 3,500,000,000 | ||||||||||
Line of credit facility, commitment fee percentage | 0.10% | |||||||||||
Ratio of indebtedness to net capital | 0.65 | |||||||||||
Minimum coverage ration for debt covenant | 3 | |||||||||||
Repayments of long-term debt | 500,000,000 | |||||||||||
Amounts borrowed under line of credit | 0 | |||||||||||
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% | |||||||||||
364-Day Credit Agreement | Line of Credit | Revolving Credit Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of credit facility, maximum borrowing capacity | $ 500,000,000 | |||||||||||
Outstanding borrowings | $ 0 | |||||||||||
Repayments of long-term debt | $ 500,000,000 | |||||||||||
Accounts Receivable | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Proceeds from sale of receivables under arrangements | 0 | $ 564,000,000 | ||||||||||
Outstanding receivables transferred under arrangements | $ 0 | $ 30,000,000 |
Financing Arrangements - Notes
Financing Arrangements - Notes Payable (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Short-term Debt [Line Items] | ||
Notes payable | $ 12 | $ 12 |
Short-term borrowings due to banks | ||
Short-term Debt [Line Items] | ||
Notes payable | $ 12 | $ 12 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) € in Thousands, R$ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | 24 Months Ended | |||||||||||||
Sep. 30, 2021USD ($) | Dec. 31, 2020USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($)action | Mar. 31, 2019USD ($) | Sep. 30, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020EUR (€) | Dec. 31, 2019USD ($) | Dec. 31, 2017BRL (R$) | Dec. 31, 2017USD ($) | Dec. 31, 2009USD ($) | Dec. 31, 2004USD ($) | Sep. 30, 2021BRL (R$)washing_machinelawsuit | Sep. 30, 2021USD ($)washing_machinelawsuit | Dec. 31, 2020BRL (R$) | Dec. 31, 2020USD ($) | |
Commitments and Contingencies [Line Items] | |||||||||||||||||
Outstanding BEFIEX tax assessment | R$ 2000 | $ 368,000,000 | |||||||||||||||
Product warranty accrual | $ 1,000,000 | $ 105,000,000 | $ 4,000,000 | ||||||||||||||
Release to product warranty reserve | $ 30,000,000 | ||||||||||||||||
Total warranty settlement | 60,000,000 | ||||||||||||||||
Customer Lines of Credit for Brazilian Subsidiary | |||||||||||||||||
Commitments and Contingencies [Line Items] | |||||||||||||||||
Guarantor obligations, maximum exposure | R$ 1096 | 202,000,000 | R$ 297 | $ 57,000,000 | |||||||||||||
Guarantee of Indebtedness of Others | |||||||||||||||||
Commitments and Contingencies [Line Items] | |||||||||||||||||
Guarantor obligations, maximum exposure | $ 3,400,000,000 | $ 3,500,000,000 | |||||||||||||||
Indesit Company S.p.A. | |||||||||||||||||
Commitments and Contingencies [Line Items] | |||||||||||||||||
Product warranty accrual | $ 0 | $ 0 | $ 0 | $ 26,000,000 | |||||||||||||
Pending Litigation | |||||||||||||||||
Commitments and Contingencies [Line Items] | |||||||||||||||||
Number of lawsuits | lawsuit | 2 | 2 | |||||||||||||||
Number of washing machines | washing_machine | 2 | 2 | |||||||||||||||
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 | R$ 259 | $ 48,000,000 | |||||||||||||||
BEFIEX tax credits monetized | $ 35,000,000 | $ 84,000,000 | |||||||||||||||
BEFIEX tax credits, additional amount available to recognize | 54,000,000 | 142,000,000 | |||||||||||||||
BEFIEX tax credits | $ 18,000,000 | $ 58,000,000 | |||||||||||||||
Number of legal actions | action | 2 | ||||||||||||||||
CFC tax | |||||||||||||||||
Commitments and Contingencies [Line Items] | |||||||||||||||||
CFC potential exposure | R$ 305 | 56,000,000 | |||||||||||||||
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 | |||||||||||||||
Insolvency trustee claim | Alno AG Insolvency Trustee v Bauknecht | |||||||||||||||||
Commitments and Contingencies [Line Items] | |||||||||||||||||
Litigation settlement, amount awarded to other party | $ 59,000,000 | € 52,750 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Product Warranty Reserves (Details) - Product Warranty - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward] | ||
Balance at January 1 | $ 273 | $ 383 |
Issuances/accruals during the period | 258 | 178 |
Settlements made during the period/other | (220) | (272) |
Balance at September 30 | 311 | 289 |
Current portion | 211 | 186 |
Non-current portion | 100 | 104 |
Total | $ 311 | $ 289 |
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 | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Other Postretirement Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 0 | $ 1 | $ 0 | $ 4 |
Interest cost | 1 | 1 | 4 | 7 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization: | ||||
Actuarial loss | 0 | 0 | 0 | 0 |
Prior service credit | (12) | (12) | (35) | (16) |
Settlement and curtailment (gain) loss | 0 | 0 | 0 | (4) |
Net periodic benefit cost (credit) | (11) | (10) | (31) | (9) |
United States Pension Benefits | Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 1 | 1 | 2 | 2 |
Interest cost | 20 | 25 | 58 | 74 |
Expected return on plan assets | (39) | (42) | (118) | (124) |
Amortization: | ||||
Actuarial loss | 17 | 15 | 52 | 46 |
Prior service credit | 0 | 0 | 0 | 0 |
Settlement and curtailment (gain) loss | 2 | 0 | 5 | 0 |
Net periodic benefit cost (credit) | 1 | (1) | (1) | (2) |
Foreign Pension Benefits | Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 1 | 1 | 4 | 4 |
Interest cost | 4 | 4 | 11 | 13 |
Expected return on plan assets | (9) | (7) | (26) | (22) |
Amortization: | ||||
Actuarial loss | 4 | 3 | 14 | 9 |
Prior service credit | 0 | 0 | 0 | 0 |
Settlement and curtailment (gain) loss | 0 | 1 | 0 | 1 |
Net periodic benefit cost (credit) | $ 0 | $ 2 | $ 3 | $ 5 |
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 | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Other Postretirement Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Net periodic benefit cost | $ (11) | $ (10) | $ (31) | $ (9) |
Operating profit (loss) | Other Postretirement Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Net periodic benefit cost | 0 | 1 | 0 | 4 |
Interest and sundry (income) expense | Other Postretirement Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Net periodic benefit cost | (11) | (11) | (31) | (13) |
United States Pension Benefits | Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Net periodic benefit cost | 1 | (1) | (1) | (2) |
United States Pension Benefits | Operating profit (loss) | Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Net periodic benefit cost | 1 | 1 | 2 | 2 |
United States Pension Benefits | Interest and sundry (income) expense | Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Net periodic benefit cost | 0 | (2) | (3) | (4) |
Foreign Pension Benefits | Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Net periodic benefit cost | 0 | 2 | 3 | 5 |
Foreign Pension Benefits | Operating profit (loss) | Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Net periodic benefit cost | 1 | 1 | 4 | 4 |
Foreign Pension Benefits | Interest and sundry (income) expense | Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Net periodic benefit cost | $ (1) | $ 1 | $ (1) | $ 1 |
Pension and Other Postretirem_5
Pension and Other Postretirement Benefit Plans - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 9 Months Ended |
Mar. 31, 2020 | Sep. 30, 2020 | |
Retirement Benefits [Abstract] | ||
Defined contribution plan, employer matching contribution, percent of match | 7.00% | |
Reduction in accumulated postretirement benefit obligation related to plan amendment | $ 157 | |
Adjustment in other comprehensive income related to plan amendment | 118 | |
Deferred income taxes related to plan amendment | $ 39 | |
Amortization period for reduction of future net periodic cost | 3 years 4 months 24 days | |
Actuarial loss related to plan amendment | $ 12 |
Hedges and Derivative Financi_3
Hedges and Derivative Financial Instruments - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Derivative [Line Items] | ||
Gain (loss) on derivative instruments included in AOCI | $ 54 | |
Derivatives accounted for as hedges | Cross-currency swaps | ||
Derivative [Line Items] | ||
Notional Amount | 1,275 | $ 1,275 |
Derivatives accounted for as hedges | Interest rate derivatives | ||
Derivative [Line Items] | ||
Notional Amount | $ 300 | $ 300 |
Hedges and Derivative Financi_4
Hedges and Derivative Financial Instruments - Schedule of Net Investment Hedging (Details) $ in Millions, $ in Millions | Sep. 30, 2021USD ($) | Sep. 30, 2021MXN ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020MXN ($) |
Foreign exchange forwards/options | Foreign currency | ||||
Derivative [Line Items] | ||||
Notional Amount | $ 350 | $ 7,200 | $ 362 | $ 7,200 |
Hedges and Derivative Financi_5
Hedges and Derivative Financial Instruments - Schedule of Outstanding Derivative Contracts (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Derivatives, Fair Value [Line Items] | ||
Hedge Assets | $ 213 | $ 145 |
Hedge Liabilities | 116 | 324 |
Derivative asset at fair value, current | 205 | 103 |
Derivative asset at fair value, noncurrent | 8 | 42 |
Total derivatives, hedge assets at fair value | 213 | 145 |
Derivative liability at fair value, current | 80 | 152 |
Derivative liability at fair value, noncurrent | 36 | 172 |
Total derivatives, hedge liabilities at fair value | 116 | 324 |
Derivatives accounted for as hedges | ||
Derivatives, Fair Value [Line Items] | ||
Hedge Assets | 180 | 120 |
Hedge Liabilities | 99 | 228 |
Derivatives accounted for as hedges | Commodity swaps/options | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 268 | 215 |
Hedge Assets | 48 | 39 |
Hedge Liabilities | $ 3 | $ 4 |
Maximum term of commodity swaps/options (in months) | 21 months | 30 months |
Derivatives accounted for as hedges | Foreign exchange forwards/options | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 2,871 | $ 3,028 |
Hedge Assets | 107 | 58 |
Hedge Liabilities | $ 62 | $ 110 |
Maximum term of foreign exchange forwards/options (in months) | 125 months | 134 months |
Derivatives accounted for as hedges | Cross-currency swaps | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 1,275 | $ 1,275 |
Hedge Assets | 25 | 23 |
Hedge Liabilities | $ 27 | $ 86 |
Maximum term of cross-currency swaps (in months) | 89 months | 98 months |
Derivatives accounted for as hedges | Interest rate derivatives | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 300 | $ 300 |
Hedge Assets | 0 | 0 |
Hedge Liabilities | $ 7 | $ 28 |
Maximum term of interest rate derivatives (in months) | 44 months | 53 months |
Derivatives not accounted for as hedges | ||
Derivatives, Fair Value [Line Items] | ||
Hedge Assets | $ 33 | $ 25 |
Hedge Liabilities | 17 | 96 |
Derivatives not accounted for as hedges | Commodity swaps/options | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 1 | 1 |
Hedge Assets | 0 | 0 |
Hedge Liabilities | $ 0 | $ 0 |
Maximum term of commodity swaps/options (in months) | 0 months | 0 months |
Derivatives not accounted for as hedges | Foreign exchange forwards/options | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 2,970 | $ 4,161 |
Hedge Assets | 33 | 25 |
Hedge Liabilities | $ 17 | $ 96 |
Maximum term of foreign exchange forwards/options (in months) | 11 months | 12 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 ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Hedges, gain (loss) recognized in OCI | $ 119 | $ (77) | $ 241 | $ 69 |
Cash flow hedges, gain (loss) reclassified from OCI into earnings | 61 | (63) | 178 | (88) |
Foreign exchange | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Foreign exchange forwards/options | 38 | (18) | 70 | (1) |
Cash flow hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Tax impact of cash flow hedges | (14) | 2 | (20) | (25) |
Cash flow hedges | Commodity swaps/options | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Cash flow hedges, gain (loss) recognized in OCI | 9 | 23 | 63 | (8) |
Cash flow hedges | Foreign exchange | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Cash flow hedges, gain (loss) recognized in OCI | 62 | (37) | 69 | 58 |
Cash flow hedges | Cross-currency swaps | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Cash flow hedges, gain (loss) recognized in OCI | 40 | (62) | 84 | 33 |
Cash flow hedges | Interest rate derivatives | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Cash flow hedges, gain (loss) recognized in OCI | 1 | 13 | 21 | (53) |
Net Investment hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Tax impact of net investment hedges | (2) | 5 | (1) | (12) |
Net Investment hedges | Foreign exchange | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Foreign currency | 7 | (14) | 4 | 39 |
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 | 21 | (4) | 50 | (21) |
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 | (9) | 11 | (3) | 20 |
Net sales | Cash flow hedges | Foreign exchange | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Cash flow hedges, gain (loss) reclassified from OCI into earnings | (2) | 2 | 0 | 5 |
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 | 14 | (21) | 43 | (52) |
Interest and sundry (income) expense | Cash flow hedges | Cross-currency swaps | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Cash flow hedges, gain (loss) reclassified from OCI into earnings | $ 37 | $ (51) | $ 88 | $ (40) |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021 | Jun. 30, 2021 | Sep. 30, 2021 | May 06, 2021 | Dec. 31, 2020 | Dec. 31, 2018 | |
Elica PB India | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Equity interest percentage | 49.00% | |||||
Remeasured fair value of equity interest | $ 150 | $ 74 | ||||
Whirlpool China | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Equity interest percentage | 20.00% | |||||
Value of interest retained | $ 214 | $ 214 | 210 | |||
Whirlpool China | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Equity interest percentage | 20.00% | |||||
Disposed of by Sale | Turkey Subsidiary | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Loss (gain) on write-down of assets | 40 | 40 | ||||
Level 2 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Long-term debt, fair value | $ 5,860 | $ 6,130 | ||||
Level 2 | Disposed of by Sale | Turkey Subsidiary | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value of divestment | $ 111 | $ 111 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - Fair Value - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | $ 2,105 | $ 2,164 |
Net derivative contracts | 97 | (179) |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 1,926 | 1,603 |
Net derivative contracts | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 179 | 561 |
Net derivative contracts | 97 | (179) |
Total Cost Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 2,105 | 2,164 |
Net derivative contracts | $ 0 | $ 0 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Changes in Stockholders' Equity (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance | $ 5,085 | $ 5,139 | $ 4,795 | $ 4,014 | $ 4,074 | $ 4,210 | $ 4,795 | $ 4,210 |
Comprehensive income | ||||||||
Net earnings | 486 | 580 | 440 | 393 | 20 | 149 | 1,506 | 562 |
Other comprehensive income | 46 | 229 | 124 | (23) | (16) | (95) | 399 | (133) |
Comprehensive income | 532 | 809 | 564 | 370 | 4 | 54 | 1,905 | 428 |
Stock issued (repurchased) | (419) | (141) | (115) | |||||
Stock issued (repurchased) | 8 | 55 | 19 | |||||
Dividends declared | (88) | (88) | (79) | (77) | (83) | (75) | ||
Divestitures | (783) | |||||||
Acquisitions | 19 | |||||||
Ending balance | 5,129 | 5,085 | 5,139 | 4,362 | 4,014 | 4,074 | 5,129 | 4,362 |
Disposed of by Sale | Whirlpool China | ||||||||
Comprehensive income | ||||||||
Disposal group, noncontrolling interest | 783 | |||||||
Retained Earnings | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance | 9,572 | 9,079 | 8,725 | 7,991 | 8,041 | 7,962 | 8,725 | 7,962 |
Comprehensive income | ||||||||
Net earnings | 471 | 581 | 433 | 392 | 30 | 154 | ||
Comprehensive income | 471 | 581 | 433 | 392 | 30 | 154 | ||
Dividends declared | (86) | (88) | (79) | (76) | (80) | (75) | ||
Ending balance | 9,957 | 9,572 | 9,079 | 8,307 | 7,991 | 8,041 | 9,957 | 8,307 |
Accumulated Other Comprehensive Income (Loss) | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance | (2,459) | (2,687) | (2,811) | (2,731) | (2,715) | (2,618) | (2,811) | (2,618) |
Comprehensive income | ||||||||
Other comprehensive income | 47 | 228 | 124 | (23) | (16) | (97) | 399 | (135) |
Comprehensive income | 47 | 228 | 124 | (23) | (16) | (97) | ||
Ending balance | (2,412) | (2,459) | (2,687) | (2,754) | (2,731) | (2,715) | (2,412) | (2,754) |
Treasury Stock / Additional Paid-In-Capital | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance | (2,276) | (2,283) | (2,142) | (2,265) | (2,284) | (2,169) | (2,142) | (2,169) |
Comprehensive income | ||||||||
Stock issued (repurchased) | (419) | (141) | (115) | |||||
Stock issued (repurchased) | 7 | 54 | 19 | |||||
Ending balance | (2,695) | (2,276) | (2,283) | (2,211) | (2,265) | (2,284) | (2,695) | (2,211) |
Common Stock | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance | 114 | 113 | 113 | 112 | 112 | 112 | 113 | 112 |
Comprehensive income | ||||||||
Stock issued (repurchased) | 1 | 1 | ||||||
Ending balance | 114 | 114 | 113 | 113 | 112 | 112 | 114 | 113 |
Non-Controlling Interest | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance | 134 | 917 | 910 | 907 | 920 | 923 | 910 | 923 |
Comprehensive income | ||||||||
Net earnings | 15 | (1) | 7 | 1 | (10) | (5) | ||
Other comprehensive income | (1) | 1 | 0 | 2 | 0 | 2 | ||
Comprehensive income | 14 | 0 | 7 | 1 | (10) | (3) | ||
Dividends declared | (2) | (1) | (3) | |||||
Divestitures | (783) | |||||||
Acquisitions | 19 | |||||||
Ending balance | 165 | $ 134 | $ 917 | $ 907 | $ 907 | $ 920 | 165 | $ 907 |
Non-Controlling Interest | Disposed of by Sale | Whirlpool China | ||||||||
Comprehensive income | ||||||||
Disposal group, noncontrolling interest | $ 783 | $ 783 |
Stockholders' Equity - Other Co
Stockholders' Equity - Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Pre-tax | $ 67 | $ 1 | $ 434 | $ (52) | ||||
Tax Effect | (21) | (24) | (35) | (81) | ||||
Net | 46 | $ 229 | $ 124 | (23) | $ (16) | $ (95) | 399 | (133) |
Currency translation adjustments | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Pre-tax | 8 | (117) | 334 | (350) | ||||
Tax Effect | (2) | 5 | (1) | (12) | ||||
Net | 6 | (112) | 333 | (362) | ||||
Cash flow hedges | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Pre-tax | 50 | 0 | 58 | 118 | ||||
Tax Effect | (14) | 0 | (21) | (25) | ||||
Net | 36 | 0 | 37 | 93 | ||||
Pension and other postretirement benefits plans | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Pre-tax | 9 | 118 | 42 | 180 | ||||
Tax Effect | (5) | (29) | (13) | (44) | ||||
Net | 4 | 89 | 29 | 136 | ||||
Less: Other comprehensive income (loss) available to noncontrolling interests | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Pre-tax | (1) | 0 | 0 | 2 | ||||
Tax Effect | 0 | 0 | 0 | 0 | ||||
Net | (1) | 1 | 0 | 2 | 0 | 2 | ||
Other comprehensive income (loss) available to Whirlpool | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Pre-tax | 68 | 1 | 434 | (54) | ||||
Tax Effect | (21) | (24) | (35) | (81) | ||||
Net | $ 47 | $ 228 | $ 124 | $ (23) | $ (16) | $ (97) | $ 399 | $ (135) |
Stockholders' Equity - Reclassi
Stockholders' Equity - Reclassifications out of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Jun. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Reclassifications out of Accumulated Other Comprehensive Income [Line Items] | |||||
Interest and sundry (income) expense | $ 78 | $ 22 | $ 139 | $ 38 | |
(Gain) loss on sale and disposal of businesses | (15) | $ 120 | 7 | 105 | 7 |
Total reclassification adjustments | 471 | $ 392 | 1,485 | $ 576 | |
Reclassification out of Accumulated Other Comprehensive Income | |||||
Reclassifications out of Accumulated Other Comprehensive Income [Line Items] | |||||
Total reclassification adjustments | 9 | (164) | |||
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 | 9 | 34 | |||
Reclassification out of Accumulated Other Comprehensive Income | Currency translation related to divestitures | |||||
Reclassifications out of Accumulated Other Comprehensive Income [Line Items] | |||||
(Gain) loss on sale and disposal of businesses | $ 0 | $ (198) |
Stockholders' Equity - Net Earn
Stockholders' Equity - Net Earnings Per Share (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Stockholders' Equity Note [Abstract] | ||||
Numerator for basic and diluted earnings per share - Net earnings (loss) available to Whirlpool | $ 471 | $ 392 | $ 1,485 | $ 576 |
Denominator for basic earnings per share – weighted-average shares (in shares) | 62.2 | 62.6 | 62.7 | 62.6 |
Effect of dilutive securities – share-based compensation (in shares) | 0.5 | 0.7 | 0.5 | 0.5 |
Denominator for diluted earnings per share – adjusted weighted-average shares (in shares) | 62.7 | 63.3 | 63.2 | 63.1 |
Anti-dilutive stock options/awards excluded from earnings per share (in shares) | 0.1 | 1.1 | 0.1 | 1.7 |
Stockholders' Equity - Share Re
Stockholders' Equity - Share Repurchase Program (Details) - USD ($) shares in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2021 | Mar. 31, 2021 | Mar. 31, 2020 | Sep. 30, 2021 | Apr. 19, 2021 | Jul. 25, 2017 | |
Equity, Class of Treasury Stock [Line Items] | ||||||
Stock repurchased during period, value | $ 419,000,000 | $ 141,000,000 | $ 115,000,000 | |||
Common Stock | Share Repurchase Program 2017 | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Stock repurchase program, authorized amount | $ 2,000,000,000 | |||||
Stock repurchase program, remaining authorized amount | 0 | $ 0 | ||||
Common Stock | Share Repurchase Program 2021 | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Stock repurchase program, authorized amount | $ 2,000,000,000 | |||||
Stock repurchase program, remaining authorized amount | $ 1,900,000,000 | $ 1,900,000,000 | ||||
Common Stock | Share Repurchase Program 2017 and 2021 | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Stock repurchased during period (in shares) | 3 | |||||
Stock repurchased during period, value | $ 641,000,000 |
Restructuring Charges - Restruc
Restructuring Charges - Restructuring Actions (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Jun. 26, 2020 | |
Workforce Reduction Plan | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and related cost, total costs to date | $ 93 | |
Restructuring and related cost, expected cost | 148 | |
Restructuring and related cost, incurred cost | 80 | |
Naples, Italy Manufacturing Plant | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and related cost, expected cost remaining | 59 | |
Restructuring and related cost, incurred cost | 141 | |
Employee-related Costs | Naples, Italy Manufacturing Plant | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and related cost, incurred cost | 73 | |
Other exit costs | Naples, Italy Manufacturing Plant | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and related cost, incurred cost | 25 | |
Asset Impairment Charges | Naples, Italy Manufacturing Plant | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and related cost, incurred cost | $ 43 | |
Employee termination costs | Workforce Reduction Plan | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and related cost, total costs to date | $ 102 | |
Restructuring and related cost, expected cost remaining | $ 15 |
Restructuring Charges - Change
Restructuring Charges - Change in Restructuring Liability (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve, balance at beginning of period | $ 173 | |||
Charges to Earnings | $ 7 | $ 63 | 35 | $ 186 |
Cash Paid | (89) | |||
Non-Cash and Other | (7) | |||
Restructuring reserve, balance at end of period | 112 | 112 | ||
Employee termination costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve, balance at beginning of period | 145 | |||
Charges to Earnings | 32 | |||
Cash Paid | (72) | |||
Non-Cash and Other | 0 | |||
Restructuring reserve, balance at end of period | 105 | 105 | ||
Asset impairment costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve, balance at beginning of period | 8 | |||
Charges to Earnings | 1 | |||
Cash Paid | 0 | |||
Non-Cash and Other | (1) | |||
Restructuring reserve, balance at end of period | 8 | 8 | ||
Facility exit costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve, balance at beginning of period | 0 | |||
Charges to Earnings | 1 | |||
Cash Paid | (1) | |||
Non-Cash and Other | 0 | |||
Restructuring reserve, balance at end of period | 0 | 0 | ||
Other exit costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve, balance at beginning of period | 20 | |||
Charges to Earnings | 1 | |||
Cash Paid | (16) | |||
Non-Cash and Other | (6) | |||
Restructuring reserve, balance at end of period | $ (1) | $ (1) |
Restructuring Charges - By Segm
Restructuring Charges - By Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | $ 7 | $ 63 | $ 35 | $ 186 |
Operating Segments | North America | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 0 | |||
Operating Segments | EMEA | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 32 | |||
Operating Segments | Latin America | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 0 | |||
Operating Segments | Asia | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 2 | |||
Corporate / Other | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | $ 1 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | Sep. 24, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Income tax expense (benefit) | $ 100 | $ 141 | $ 353 | $ 231 | ||
Tax benefit derived from foreign interest income | $ 34 | |||||
(Gain) loss on sale and disposal of businesses | (15) | $ 120 | 7 | 105 | 7 | |
Divestiture tax impact | 1 | 21 | 0 | 22 | 0 | |
Legal entity restructuring tax impact | $ 0 | $ 0 | $ 46 | $ 0 | ||
Disposed of by Sale | Whirlpool China | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
(Gain) loss on sale and disposal of businesses | 284 | |||||
Legal entity restructuring tax impact | $ 46 |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Jun. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |||||
Earnings before income taxes | $ 586 | $ 534 | $ 1,859 | $ 793 | |
Income tax expense computed at United States statutory tax rate | 123 | 112 | 390 | 167 | |
State and local taxes, net of federal tax benefit | 17 | 15 | 49 | 22 | |
Valuation allowances | 3 | 6 | 5 | 12 | |
Audit and settlements | (32) | 14 | (17) | 31 | |
U.S. foreign income items, net of credits | (1) | (2) | (1) | (1) | |
Changes in enacted tax rates | 0 | (6) | (14) | (6) | |
Divestiture tax impact | (1) | $ (21) | 0 | (22) | 0 |
Legal entity restructuring tax impact | 0 | 0 | (46) | 0 | |
Other | (9) | 2 | 9 | 6 | |
Income tax expense (benefit) computed at effective worldwide tax rates | $ 100 | $ 141 | $ 353 | $ 231 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||||||||
Net sales | $ 5,488 | $ 5,291 | $ 16,170 | $ 13,658 | |||||
Depreciation and amortization | 119 | 146 | 378 | 414 | |||||
EBIT | 630 | 585 | 1,993 | 935 | |||||
Total assets | 20,394 | 20,394 | $ 20,436 | ||||||
Capital expenditures | 122 | 96 | 306 | 251 | |||||
Restructuring costs | (7) | (63) | (35) | (186) | |||||
Gain (loss) on previously held equity interest | 42 | 0 | |||||||
Gain (loss) on sale and disposal of businesses | (15) | $ 120 | 7 | 105 | 7 | ||||
Total other/eliminations | 630 | 585 | 1,993 | 935 | |||||
Operating profit | 552 | 563 | 1,854 | 897 | |||||
Interest and sundry (income) expense | (78) | (22) | (139) | (38) | |||||
Interest expense | 44 | 51 | 134 | 142 | |||||
Income tax expense (benefit) | 100 | 141 | 353 | 231 | |||||
Net earnings | 486 | $ 580 | $ 440 | 393 | $ 20 | $ 149 | 1,506 | 562 | |
Less: Net earnings (loss) available to noncontrolling interests | 15 | 1 | 21 | (14) | |||||
Net earnings available to Whirlpool | 471 | 392 | 1,485 | 576 | |||||
North America | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Net sales | 3,113 | 2,961 | 9,200 | 8,002 | |||||
EMEA | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Net sales | 1,256 | 1,258 | 3,676 | 2,973 | |||||
Latin America | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Net sales | 841 | 719 | 2,336 | 1,771 | |||||
Asia | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Net sales | 278 | 353 | 958 | 912 | |||||
Intersegment sales | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Net sales | (493) | (576) | (1,509) | (1,442) | |||||
Intersegment sales | North America | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Net sales | (89) | (84) | (244) | (203) | |||||
Intersegment sales | EMEA | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Net sales | (30) | (31) | (76) | (70) | |||||
Intersegment sales | Latin America | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Net sales | (327) | (344) | (950) | (894) | |||||
Intersegment sales | Asia | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Net sales | (47) | (117) | (239) | (275) | |||||
Operating Segments | North America | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Depreciation and amortization | 43 | 53 | 132 | 143 | |||||
EBIT | 553 | 560 | 1,716 | 1,176 | |||||
Total assets | 7,990 | 7,990 | 7,597 | ||||||
Capital expenditures | 42 | 34 | 107 | 87 | |||||
Restructuring costs | 0 | ||||||||
Total other/eliminations | 553 | 560 | 1,716 | 1,176 | |||||
Operating Segments | EMEA | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Depreciation and amortization | 39 | 42 | 129 | 123 | |||||
EBIT | 28 | 43 | 80 | (38) | |||||
Total assets | 10,032 | 10,032 | 11,296 | ||||||
Capital expenditures | 31 | 29 | 78 | 61 | |||||
Restructuring costs | (32) | ||||||||
Total other/eliminations | 28 | 43 | 80 | (38) | |||||
Operating Segments | Latin America | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Depreciation and amortization | 17 | 16 | 48 | 47 | |||||
EBIT | 73 | 77 | 209 | 119 | |||||
Total assets | 4,148 | 4,148 | 4,244 | ||||||
Capital expenditures | 34 | 12 | 77 | 38 | |||||
Restructuring costs | 0 | ||||||||
Total other/eliminations | 73 | 77 | 209 | 119 | |||||
Operating Segments | Asia | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Depreciation and amortization | 4 | 19 | 22 | 52 | |||||
EBIT | 24 | 6 | 50 | (28) | |||||
Total assets | 1,646 | 1,646 | 2,573 | ||||||
Capital expenditures | 6 | 10 | 18 | 33 | |||||
Restructuring costs | (2) | ||||||||
Total other/eliminations | 24 | 6 | 50 | (28) | |||||
Other / Eliminations | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Net sales | 0 | 0 | 0 | 0 | |||||
Depreciation and amortization | 16 | 16 | 47 | 49 | |||||
EBIT | (48) | (101) | (62) | (294) | |||||
Total assets | (3,422) | (3,422) | $ (5,274) | ||||||
Capital expenditures | 9 | 11 | 26 | 32 | |||||
Restructuring costs | (7) | (63) | (35) | (186) | |||||
Gain (loss) on previously held equity interest | 42 | 0 | 42 | 0 | |||||
Gain (loss) on sale and disposal of businesses | 13 | (7) | (107) | (7) | |||||
Corrective action recovery | 0 | 13 | 0 | 13 | |||||
Corporate expenses and other | (70) | (58) | (176) | (128) | |||||
Total other/eliminations | $ (48) | $ (101) | $ (62) | $ (294) |
Divestitures - Whirlpool China
Divestitures - Whirlpool China Divestiture (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Millions, $ in Millions | Aug. 25, 2020¥ / shares | Sep. 30, 2021USD ($) | Jun. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | May 06, 2021USD ($) | May 06, 2021CNY (¥) | Dec. 31, 2020USD ($) | Aug. 25, 2020$ / shares |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
(Gain) loss on sale and disposal of businesses | $ (15) | $ 120 | $ 7 | $ 105 | $ 7 | |||||
Goodwill | 2,492 | 2,492 | $ 2,496 | |||||||
Whirlpool China | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Equity interest percentage | 20.00% | 20.00% | ||||||||
Value of interest retained | 210 | 214 | 210 | |||||||
Whirlpool China | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Equity interest percentage | 20.00% | 20.00% | ||||||||
Disposed of by Sale | Whirlpool China | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Disposal group, consideration | $ 193 | ¥ 1,250 | ||||||||
(Gain) loss on sale and disposal of businesses | 284 | |||||||||
Foreign currency translation adjustments | 74 | |||||||||
Goodwill | $ 80 | 80 | $ 80 | |||||||
Consideration received for shares | 193 | |||||||||
Carrying value of equity interest | $ 783 | |||||||||
Galanz | Whirlpool China | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Tender offer price (in price per share) | (per share) | ¥ 5.23 | $ 0.76 | ||||||||
Trading days prior to tender offer announcement | 30 days | |||||||||
Minimum | Galanz | Whirlpool China | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Tender offer expected ownership percentage | 51.00% | 51.00% | ||||||||
Maximum | Galanz | Whirlpool China | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Tender offer expected ownership percentage | 61.00% | 61.00% |
Divestitures - Schedule of Whir
Divestitures - Schedule of Whirlpool China's Assets and Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Allowance for doubtful accounts | $ (103) | $ (132) | |
Accumulated depreciation | 6,627 | 6,780 | |
Goodwill | 2,492 | 2,496 | |
Whirlpool China | Disposed of by Sale | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Cash and cash equivalents | 0 | 324 | |
Accounts receivable, net of allowance of $0 and $11, respectively | 0 | 85 | |
Allowance for doubtful accounts | (11) | ||
Inventories | 0 | 98 | |
Prepaid and other current assets | 0 | 93 | |
Property, net of accumulated depreciation of $0 and $189, respectively | 0 | 309 | |
Accumulated depreciation | 0 | 189 | |
Other noncurrent assets | 0 | 283 | |
Total assets | 0 | 1,192 | |
Accounts payable | 0 | 216 | |
Accrued expenses | 0 | 53 | |
Other current liabilities | 0 | 254 | |
Other noncurrent liabilities | 0 | 7 | |
Total liabilities | 0 | $ 530 | |
Goodwill | $ 80 | $ 80 |
Divestitures - Turkey Subsidiar
Divestitures - Turkey Subsidiary Divestment (Details) € in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||||
Sep. 30, 2021USD ($) | Jun. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2021USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | May 17, 2021EUR (€) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
(Gain) loss on sale and disposal of businesses | $ (15) | $ 120 | $ 7 | $ 105 | $ 7 | ||
Disposed of by Sale | Turkey Subsidiary | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Disposal group, consideration | 93 | $ 93 | € 78 | ||||
(Gain) loss on sale and disposal of businesses | $ (13) | (164) | |||||
Loss (gain) on write-down of assets | 40 | $ 40 | |||||
Gain (loss) of cumulative foreign currency translation adjustments | $ (124) |