Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 24, 2020 | |
Entity Information [Line Items] | ||
Entity Registrant Name | WHIRLPOOL CORP /DE/ | |
Entity Central Index Key | 0000106640 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
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) | 62,163,066 | |
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 | |
Chicago Stock Exchange | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common stock, par value $1.00 per share | |
Trading Symbol | WHR | |
Security Exchange Name | CHX |
Consolidated Condensed Statemen
Consolidated Condensed Statements of Comprehensive Income (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net sales | $ 4,325 | $ 4,760 |
Expenses | ||
Cost of products sold | 3,625 | 3,948 |
Gross margin | 700 | 812 |
Selling, general and administrative | 420 | 505 |
Intangible amortization | 15 | 18 |
Restructuring costs | 5 | 26 |
Operating profit | 260 | 263 |
Other (income) expense | ||
Interest and sundry (income) expense | (1) | (130) |
Interest expense | 42 | 51 |
Earnings before income taxes | 219 | 342 |
Income tax expense (benefit) | 72 | (132) |
Net earnings | 147 | 474 |
Less: Net earnings (loss) available to noncontrolling interests | (5) | 3 |
Net earnings available to Whirlpool | $ 152 | $ 471 |
Per share of common stock | ||
Basic net earnings (loss) available to Whirlpool (USD per share) | $ 2.42 | $ 7.36 |
Diluted net earnings (loss) available to Whirlpool (USD per share) | 2.41 | 7.31 |
Dividends declared (USD per share) | $ 1.20 | $ 1.15 |
Weighted-average shares outstanding (in millions) | ||
Basic (in shares) | 62.8 | 64 |
Diluted (in shares) | 63.3 | 64.5 |
Comprehensive income | $ 52 | $ 567 |
Consolidated Condensed Balance
Consolidated Condensed Balance Sheets - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 2,837 | $ 1,952 |
Accounts receivable, net of allowance of $124 and $132, respectively | 1,931 | 2,198 |
Inventories | 2,543 | 2,438 |
Prepaid and other current assets | 851 | 810 |
Total current assets | 8,162 | 7,398 |
Property, net of accumulated depreciation of $6,388 and $6,444, respectively | 3,156 | 3,301 |
Right of use assets | 886 | 921 |
Goodwill | 2,424 | 2,440 |
Other intangibles, net of accumulated amortization of $600 and $593, respectively | 2,185 | 2,225 |
Deferred income taxes | 2,132 | 2,238 |
Other noncurrent assets | 450 | 358 |
Total assets | 19,395 | 18,881 |
Current liabilities | ||
Accounts payable | 4,065 | 4,547 |
Accrued expenses | 527 | 652 |
Accrued advertising and promotions | 505 | 949 |
Employee compensation | 285 | 450 |
Notes payable | 2,392 | 294 |
Current maturities of long-term debt | 0 | 559 |
Other current liabilities | 802 | 918 |
Total current liabilities | 8,576 | 8,369 |
Noncurrent liabilities | ||
Long-term debt | 4,662 | 4,140 |
Pension benefits | 501 | 542 |
Postretirement benefits | 315 | 322 |
Lease liabilities | 720 | 778 |
Other noncurrent liabilities | 641 | 612 |
Total noncurrent liabilities | 6,839 | 6,394 |
Stockholders' equity | ||
Common stock, $1 par value, 250 million shares authorized, 112 million shares issued, and 62 million and 63 million shares outstanding, respectively | 112 | 112 |
Additional paid-in capital | 2,811 | 2,806 |
Retained earnings | 7,947 | 7,870 |
Accumulated other comprehensive loss | (2,715) | (2,618) |
Treasury stock, 50 million and 49 million shares, respectively | (5,095) | (4,975) |
Total Whirlpool stockholders' equity | 3,060 | 3,195 |
Noncontrolling interests | 920 | 923 |
Total stockholders' equity | 3,980 | 4,118 |
Total liabilities and stockholders' equity | $ 19,395 | $ 18,881 |
Consolidated Condensed Balanc_2
Consolidated Condensed Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 124 | $ 132 |
Accumulated depreciation | (6,388) | (6,444) |
Accumulated amortization | $ 600 | $ 593 |
Common stock, par value (USD per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 250,000,000 | 250,000,000 |
Common stock, shares issued (in shares) | 112,000,000 | 112,000,000 |
Common stock, shares outstanding (in shares) | 62,000,000 | 63,000,000 |
Treasury stock (in shares) | 50,000,000 | 49,000,000 |
Consolidated Condensed Statem_2
Consolidated Condensed Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Operating activities | ||
Net earnings | $ 147 | $ 474 |
Adjustments to reconcile net earnings to cash provided by (used in) operating activities: | ||
Depreciation and amortization | 135 | 142 |
Changes in assets and liabilities: | ||
Accounts receivable | 125 | (39) |
Inventories | (203) | (475) |
Accounts payable | (244) | (182) |
Accrued advertising and promotions | (415) | (271) |
Accrued expenses and current liabilities | (193) | 29 |
Taxes deferred and payable, net | 40 | (190) |
Accrued pension and postretirement benefits | (11) | (23) |
Employee compensation | (145) | (44) |
Other | (50) | (316) |
Cash provided by (used in) operating activities | (814) | (895) |
Investing activities | ||
Capital expenditures | (82) | (85) |
Proceeds from sale of assets and business | 26 | 2 |
Other | 0 | (3) |
Cash provided by (used in) investing activities | (56) | (86) |
Financing activities | ||
Net proceeds from borrowings of long-term debt | 541 | 695 |
Repayments of long-term debt | (566) | (939) |
Net proceeds (repayments) from short-term borrowings | 2,111 | 991 |
Dividends paid | (75) | (73) |
Repurchase of common stock | (121) | (50) |
Common stock issued | 3 | 3 |
Cash provided by (used in) financing activities | 1,893 | 627 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (138) | 11 |
Increase (decrease) in cash, cash equivalents and restricted cash | 885 | (343) |
Cash, cash equivalents and restricted cash at beginning of year | 1,952 | 1,538 |
Cash, cash equivalents and restricted cash at end of year | $ 2,837 | $ 1,195 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2020 | |
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, 2019 . 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. 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 spread throughout the United States and other countries across the world, and the duration and severity of the effects are currently unknown. It is possible the pandemic could materially impact our financial results in future periods. The Consolidated Condensed Financial Statements presented herein reflect estimates and assumptions made by management at March 31, 2020 and for the three-months ended March 31, 2020. 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 May 1, 2020, 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-life 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, 2019. We continue to monitor the significant global economic uncertainty as a result of COVID-19 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* and Maytag trademarks continue to be at risk at March 31, 2020. The goodwill in our other reporting units or indefinite-lived intangible assets is not at risk for future impairment. The potential impact of COVID-19 related demand disruptions and related production impacts on our operating results for the EMEA reporting unit in the short-term is uncertain, but we remain committed to the strategic actions necessary to realize the long-term forecasted EBIT margins and expect that the macroeconomic environment will recover in the medium to long-term. The potential negative demand effect on revenues for the Indesit and Hotpoint* trademarks and the Maytag trademark is also uncertain given the volatile environment, but we expect that demand and production levels will also recover. 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 first quarter of 2020. *Whirlpool ownership of the Hotpoint brand in EMEA and Asia Pacific regions is not affiliated with the Hotpoint brand sold in the Americas. 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* and Maytag trademarks or a lack of recovery or further decline in the Company’s market capitalization, among other factors, as a result of the COVID-19 pandemic 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. The changing and volatile macro-economic conditions connected with the COVID-19 pandemic may 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. Other Accounting Matters Synthetic lease arrangements In the first quarter of 2020, we entered into a synthetic lease arrangement with a financial institution for non-core properties in the North America region. The term of these leases commenced in the first quarter of 2020 and will expire five years after commencement. The leases contain provisions for options to purchase, extend the original term for additional periods or return the property. These arrangements include a residual value guarantee that could potentially come due in future periods. The current obligation residual value guarantee is not material as of March 31, 2020. We have assessed the reasonable certainty of these provisions to determine the appropriate lease term. We assessed the lease classification of the agreements and determined they were operating leases. These 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 for a nominal amount. Rental payments are calculated at the applicable LIBOR rate plus a margin and the annual lease payments are nominal Adoption of New Accounting Standards On January 1, 2020 we adopted Accounting Standards Update ("ASU") No. 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments." The guidance in ASU 2016-13 creates a new impairment standard replacing the current "incurred loss" model. The incurred loss model required that for a loss to be impaired and recognized on the financial statements it must be probable that it has been incurred at the measurement date. The new standard utilizes an "expected credit loss" model also referred to as "the current expected credit loss" (CECL) model. Under CECL, there is no threshold for impairment loss recognition, but it instead reflects a current estimate of all expected credit losses. The adoption of this standard did not have a material impact to the Consolidated Condensed Financial Statements. For additional information on the required disclosures related to the impact of adopting this standard, see Note 2 to the Consolidated Condensed Financial Statements. We adopted the following standards, none of which have a material impact on our Consolidated Condensed Financial Statements: Standard Effective Date 2018-13 Fair Value Measurement (Topic 820) Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement January 1, 2020 2018-15 Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40) Customer's Accounting for Implementation Costs Incurred In a Cloud Computing Arrangement That Is a Service Contract January 1, 2020 2018-18 Collaborative Arrangements (Topic 808) - Clarifying the Interaction between Topic 808 and Topic 606 January 1, 2020 All other newly issued and effective accounting standards during 2020 were not relevant or material to the Company. *Whirlpool ownership of the Hotpoint brand in EMEA and Asia Pacific regions is not affiliated with the Hotpoint brand sold in the Americas. 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. The amendments are effective for all entities from the beginning of an interim period that includes the issuance date of the ASU. An entity may elect to apply the amendments prospectively through December 31, 2022. The Company is currently evaluating the impact of adopting this guidance. In December 2019, the FASB issued Update 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes". The amendments in this Update affect entities within the scope of Topic 740, Income Taxes. The amendments in this Update simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. For public business entities, the amendments in this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The Company is currently evaluating the impact of adopting this guidance. The FASB has issued the following relevant standards, which are not expected to have a material impact on our Consolidated Condensed Financial Statements: Standard Effective Date 2018-14 Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans January 1, 2021 All other issued and not yet effective accounting standards are not relevant or material to the Company. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, Millions of dollars 2020 2019 Major product categories: Laundry $ 1,330 $ 1,483 Refrigeration 1,362 1,363 Cooking 943 1,044 Dishwashing 371 364 Total major product category net sales $ 4,006 $ 4,254 Compressors (1) — 312 Spare parts and warranties 228 191 Other 90 3 Total net sales $ 4,325 $ 4,760 (1) Change in compressors compared to the prior year is due to the divestiture of the Embraco compressor business. The impact to revenue related to prior period performance obligations was not material for the three months ended March 31, 2020 . Allowance for Expected Credit Losses and Bad Debt Expense 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 adoption of the new credit loss standard did not have a material impact on the Consolidated Condensed Financial Statements as of March 31, 2020 . The following table summarizes our allowance for doubtful accounts by operating segment for the three months ended March 31, 2020 . Millions of dollars December 31, 2019 Charged to Earnings Write-offs Foreign Currency March 31, 2020 North America $ 4 $ 1 $ — $ — $ 5 EMEA 83 1 (9 ) (4 ) 71 Latin America 33 6 — (6 ) 33 Asia 12 4 — (1 ) 15 Consolidated $ 132 $ 12 $ (9 ) $ (11 ) $ 124 We also have an allowance on certain financing receivables that are recorded in prepaid and other current assets and other noncurrent assets on our Consolidated Condensed Balance Sheets. The allowance at March 31, 2020 and December 31, 2019 was approximately $41 million and $48 million , respectively. The amount charged to earnings and write-offs for the three months ended March 31, 2020 was immaterial. |
Cash, Cash Equivalents and Rest
Cash, Cash Equivalents and Restricted Cash | 3 Months Ended |
Mar. 31, 2020 | |
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: March 31, Millions of dollars 2020 2019 Cash and cash equivalents as presented in our Consolidated Condensed Balance Sheets $ 2,837 $ 1,163 Restricted cash included in prepaid and other current assets (1) — 32 Cash, cash equivalents and restricted cash as presented in our Consolidated Condensed Statements of Cash Flows $ 2,837 $ 1,195 (1) Change in restricted cash reflects realization of foreign currency translation adjustments of $(2) million for the three months ended March 31, 2019 compared to the prior fiscal year end. December 31, Millions of dollars 2019 2018 Cash and cash equivalents as presented in our Consolidated Balance Sheets $ 1,952 $ 1,498 Restricted cash included in prepaid and other current assets — 40 Cash, cash equivalents and restricted cash as presented in our Consolidated Statements of Cash Flows $ 1,952 $ 1,538 Restricted cash was used to fund capital expenditures and technical resources to enhance Whirlpool China's research and development and working capital, as required by the terms of the Whirlpool China (formerly Hefei Sanyo) acquisition. In 2019, we spent the remaining amount for these purposes resulting in restricted cash of $0 at December 31, 2019. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2020 | |
Inventory, Net [Abstract] | |
Inventories | INVENTORIES The following table summarizes our inventories at March 31, 2020 and December 31, 2019 : Millions of dollars March 31, 2020 December 31, 2019 Finished products $ 2,063 $ 1,979 Raw materials and work in process 619 602 2,682 2,581 Less: excess of FIFO cost over LIFO cost (139 ) (143 ) Total inventories $ 2,543 $ 2,438 LIFO inventories represented 42% and 43% of total inventories at March 31, 2020 and December 31, 2019 , respectively. |
Property, Plant & Equipment
Property, Plant & Equipment | 3 Months Ended |
Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant & Equipment | PROPERTY, PLANT AND EQUIPMENT The following table summarizes our property, plant and equipment at March 31, 2020 and December 31, 2019 : Millions of dollars March 31, 2020 December 31, 2019 Land $ 88 $ 97 Buildings 1,503 1,540 Machinery and equipment 7,953 8,108 Accumulated depreciation (6,388 ) (6,444 ) Property, plant and equipment, net $ 3,156 $ 3,301 During the three months ended March 31, 2020 , we disposed of buildings, machinery and equipment with a net book value of $18 million |
Financing Arrangements
Financing Arrangements | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Financing Arrangements | FINANCING ARRANGEMENTS Debt Offering 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 ) in principal amount of 0.50% Senior Notes due in 2028 (the "Notes") in a public offering pursuant to a registration statement on Form S-3 (File No. 333-224381). The Notes were issued under an indenture, dated February 21, 2020, among Whirlpool EMEA Finance S.à r.l, as issuer, Whirlpool Corporation, 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 Notes contain covenants that limit Whirlpool Corporation's ability to incur certain liens or enter into certain sale and lease-back transactions. In addition, if we experience a specific kind of change of control, we are required to make an offer to purchase all of the Notes at a purchase price of 101% of the principal amount thereof, plus accrued and unpaid interest. On February 26, 2019, Whirlpool Corporation completed a bond offering consisting of $700 million in principal amount of 4.75% Senior Notes due in 2029. The notes contain covenants that limit Whirlpool Corporation's ability to incur certain liens or enter into certain sale and lease-back transactions. In addition, if we experience a specific kind of change of control, we are required to make an offer to purchase all of the notes at a purchase price of 101% of the principal amount thereof, plus accrued and unpaid interest. The notes are registered under the Securities Act of 1933, as amended, pursuant to our Registration Statement on Form S-3 (File No.333-224381) previously filed with the Securities and Exchange Commission. Debt Repayment On March 12, 2020, €500 million (approximately $566 million ) of 0.625% senior notes matured and were repaid. On August 9, 2019, we repaid $1.0 billion pursuant to our April 23, 2018 Term Loan Agreement with Citibank, N.A., as Administrative Agent, and certain other financial institutions, representing full repayment of amounts borrowed under the term loan. As previously disclosed, we agreed to repay this term loan amount with the net cash proceeds received from the sale of our Embraco business unit to Nidec Corporation, which closed on July 1, 2019. On March 1, 2019, $250 million of 2.40% senior notes matured and were repaid. On February 27, 2019, we repaid €600 million (approximately $673 million ) pursuant to our June 5, 2018 Term Loan Agreement with Wells Fargo Bank, National Association, as Administrative Agent, and certain other financial institutions (the "Whirlpool EMEA Finance Term Loan"), representing full repayment of amounts borrowed under the Whirlpool EMEA Finance Term Loan. Credit Facilities 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 provides aggregate borrowing capacity of $500 million , and has a termination date of April 26, 2021. The interest and fee rates payable with respect to the 364-Day Facility based on the Company’s current debt rating are as follows: (1) the Eurodollar Margin is 1.625% ; (2) the spread over prime is 0.625% ; and (3) the unused commitment fee is 0.400% , as of April 27, 2020. The 364-Day Facility contains customary covenants and warranties which are consistent with the Company’s $3.5 billion revolving credit facility, 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 the Company’s ability to (or to permit any subsidiaries to), subject to various exceptions and limitations: (i) merge with other companies; (ii) create liens on its property; and (iii) incur debt at the subsidiary level. 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 , an increase of $500 million from the Company's prior amended and restated credit agreement. The Amended Long-Term Facility has a maturity date of August 6, 2024, unless earlier terminated. On March 13, 2020 we initiated a borrowing of approximately $2.2 billion under this agreement and for which a portion of the proceeds from the borrowing were used to fund commercial paper repayment. 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 EURIBOR is 1.125% ; (2) the spread over prime is 0.125% ; and (3) the ticking 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 March 31, 2020. At March 31, 2020, we had $2.2 billion outstanding and $1.3 billion of remaining availability under the Amended Long-Term Facility. We had no borrowings outstanding under the Amended Long-Term Facility at December 31, 2019 . In addition to the committed $3.5 billion Amended Long-Term Facility, we have committed credit facilities in Brazil and India. The committed credit facilities in Brazil and India provide borrowings up to 1 billion Brazilian reais and 1 billion Indian rupees (approximately $206 million at March 31, 2020 and $262 million at December 31, 2019 ), maturing through 2022. On August 5, 2019 we terminated a €250 million European revolving credit facility that we entered into in July 2015. The termination of this facility did not have a material impact on our Consolidated Condensed Financial Statements. 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 March 31, 2020 and December 31, 2019 : Millions of dollars March 31, 2020 December 31, 2019 Commercial paper $ 197 $ 274 Short-term borrowings due to banks 2,195 20 Total notes payable $ 2,392 $ 294 Short-term borrowings due to banks include the current portion of the outstanding amount under the Amended Long-Term Facility which is expected to be repaid in the next twelve months. Transfers and Servicing of Financial Assets In an effort to manage economic and geographic trade customer risk, from time to time, the Company will transfer, primarily without recourse, accounts receivable balances of certain customers to financial institutions resulting in a nominal impact recorded in interest and sundry (income) expense. These transactions are accounted for as sales of the receivables resulting in the receivables being de-recognized from the Consolidated Condensed Balance Sheets. These transfers primarily do not require continuing involvement from the Company, however certain arrangements include servicing of transferred receivables by Whirlpool. Outstanding accounts receivable transferred under arrangements where the Company continues to service the transferred asset were $241 million and $348 million as of March 31, 2020 and December 31, 2019 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
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 has agreed to retain potential liabilities related to this matter following closing of the Embraco sale transaction. We continue to defend these actions. While it is currently not possible to reasonably estimate the aggregate amount of costs which we may incur in connection with these matters, such costs could have a material adverse effect on our financial statements in any particular reporting period. BEFIEX Credits and Other Brazil Tax Matters In previous years, our Brazilian operations earned tax credits under the Brazilian government's export incentive program (BEFIEX). These credits reduced Brazilian federal excise taxes on domestic sales. In December 2013, the Brazilian government reinstituted the monetary adjustment index applicable to BEFIEX credits that existed prior to July 2009, when the Brazilian government required companies to apply a different monetary adjustment index to BEFIEX credits. Whether use of the reinstituted index should be given retroactive effect for the July 2009 to December 2013 period was subject to review by the Brazilian courts. In the third quarter of 2017, the Brazilian Supreme Court ruled that the reinstituted index should be given retroactive effect for the July 2009 to December 2013 period, which ruling was subsequently affirmed by the Brazilian Supreme Court, and is now final. Based on this ruling, we were entitled to recognize $72 million in additional credits, which were recognized in prior periods. At March 31, 2020 , no BEFIEX credits remain to be monetized. Our Brazilian operations have received tax assessments for income and social contribution taxes associated with certain monetized BEFIEX credits. We do not believe BEFIEX credits are subject to income or social contribution taxes. We believe these tax assessments are without merit and are vigorously defending our positions. We have not provided for income or social contribution taxes on these BEFIEX credits, and based on the opinions of tax and legal advisors, we have not accrued any amount related to these assessments at March 31, 2020 . 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 $377 million at March 31, 2020 ). 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 tax payers to resolve this and certain other disputed tax credit amounts. As permitted by the program, we elected to settle certain debts through the use of other existing tax credits and recorded charges of approximately $34 million in 2009 associated with these matters. In July 2012, the Brazilian revenue authority notified us that a portion of our proposed settlement was rejected and we received tax assessments of 255 million Brazilian reais (approximately $49 million at March 31, 2020 ), 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 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. We estimate the possible losses related to these assessments to be approximately 293 million Brazilian reais (approximately $56 million at March 31, 2020 ). We believe these tax assessments are without merit and are vigorously defending our positions. Based on the opinion of our tax and legal advisors, we have no t accrued any amount related to these assessments. In addition to the 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 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, which have been paid, and $1 million in fees that we anticipate will be paid in 2020. The ICMS credits and related fees are recorded in interest and sundry (income) expense in our Consolidated Statements of Comprehensive Income (Loss). The Brazilian tax authorities have 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 certain other matters that could affect the rights of Brazilian taxpayers regarding these credits, and a scheduled hearing has been delayed and it is not known when such hearing will be rescheduled. If the Brazilian tax authorities challenge our rights to these credits, we may become subject to new litigation related to credits already monetized and/or disallowance of further credit monetization. Based on the opinions of our tax and legal advisors, we have not accrued any amounts related to potential future litigation regarding these credits. 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 settlement with the FCA on the first part for a total fine of €102 million , with €56 million attributable to Whirlpool's France business and €46 million attributable to Indesit's France business. Payment of final amounts were made in 2019, including payment by Indesit's previous owners of €17 million out of escrow to the Company. 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 In 2017, Alno AG and certain affiliated companies filed for insolvency protection in Germany. Bauknecht Hausgeräte GmbH, a subsidiary of the Company, was a long-standing supplier to Alno and certain of its affiliated companies. The Company was also a former indirect minority shareholder of Alno. In August 2018, the insolvency trustee asserted €174.5 million in clawback and related claims against Bauknecht. In January 2020, we entered into an agreement to settle all potential claims that the insolvency trustee may have related to this matter, resulting in a one-time charge of €52.75 million (approximately $59 million as of December 31, 2019), which was recorded in interest and sundry (income) expense in the Consolidated Statements of Income for the year ended December 31, 2019. Other Litigation 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 2020 2019 Balance at January 1 $ 383 $ 268 Issuances/accruals during the period 47 67 Settlements made during the period/other (124 ) (80 ) Balance at March 31 $ 306 $ 255 Current portion $ 179 $ 182 Non-current portion 127 73 Total $ 306 $ 255 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. 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 months ended March 31, 2020, settlements of approximately $38 million have been incurred related to this product recall. 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 months ended March 31, 2020, we incurred no additional product warranty expense related to this campaign. We continue to cooperate with the UK regulator, which continues to review the overall effectiveness of the modification program. Guarantees We have guarantee arrangements in a Brazilian subsidiary. For certain credit worthy customers, the subsidiary guarantees customer lines of credit at commercial banks to support purchases following its normal credit policies. If a customer were to default on its line of credit with the bank, our subsidiary would be required to assume the line of credit and satisfy the obligation with the bank. At March 31, 2020 and December 31, 2019 , the guaranteed amounts totaled 544 million Brazilian reais (approximately $105 million at March 31, 2020 ) and 577 million Brazilian reais (approximately $143 million at December 31, 2019 ), respectively. The fair value of these guarantees were nominal at March 31, 2020 and December 31, 2019 . Our subsidiary insures against a significant portion of this credit risk for these guarantees, under normal operating conditions, through policies purchased from high-quality underwriters. We provide guarantees of indebtedness and lines of credit for various consolidated subsidiaries. The maximum contractual amount of indebtedness and credit facilities available under these lines for consolidated subsidiaries totaled $3.3 billion at March 31, 2020 and $2.6 billion at December 31, 2019 . Our total short-term outstanding bank indebtedness under guarantees was nominal at both March 31, 2020 and December 31, 2019 . |
Pension and Other Postretiremen
Pension and Other Postretirement Benefit Plans | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, United States Foreign Other Postretirement Millions of dollars 2020 2019 2020 2019 2020 2019 Service cost $ 1 $ 1 $ 2 $ 1 $ 2 $ 2 Interest cost 25 31 4 6 3 4 Expected return on plan assets (41 ) (44 ) (8 ) (7 ) — — Amortization: Actuarial loss 15 12 3 2 — — Prior service credit — (1 ) — — (2 ) (2 ) Settlement and curtailment (gain) loss — — — 1 — (7 ) Net periodic benefit cost (credit) $ — $ (1 ) $ 1 $ 3 $ 3 $ (3 ) 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 March 31, United States Foreign Other Postretirement Millions of dollars 2020 2019 2020 2019 2020 2019 Operating profit (loss) $ 1 $ 1 $ 2 $ 1 $ 2 $ 2 Interest and sundry (income) expense (1 ) (2 ) (1 ) 2 1 (5 ) Net periodic benefit cost $ — $ (1 ) $ 1 $ 3 $ 3 $ (3 ) 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 will be contributed in company stock starting from May 2020. |
Hedges and Derivative Financial
Hedges and Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2020 | |
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 present 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 of materials used in our manufacturing process. The objective of these hedges is to reduce the variability of cash flows associated with the forecasted purchase of commodities. 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. Notional amount of outstanding cross-currency interest rate swap agreements was $1,275 million at March 31, 2020 and December 31, 2019 . We may enter into interest rate swap agreements to manage interest rate risk exposure. Our interest rate swap agreements, if any, effectively modify our exposure to interest rate risk, primarily through converting certain floating rate debt to a fixed rate basis, and certain fixed rate debt to a floating rate basis. These agreements involve either the receipt or payment of floating rate amounts in exchange for fixed rate interest payments or receipts, respectively, over the life of the agreements without an exchange of the underlying principal amounts. We 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. There was a notional amount of $300 million of outstanding interest rate swap agreements at March 31, 2020 and December 31, 2019 . Net Investment Hedging The following table summarizes our foreign currency denominated debt and foreign exchange forwards/options designated as net investment hedges at March 31, 2020 and December 31, 2019 : Notional (Local) Notional (USD) Current Maturity Instrument 2020 2019 2020 2019 Senior note - 0.625% € — € 500 $ — $ 561 March 2020 Foreign exchange forwards/options MXN 7,200 MXN 7,200 $ 307 $ 382 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 March 31, 2020 and December 31, 2019 , there was no ineffectiveness on hedges designated as net investment hedges. Due to the volatility in the macroeconomic environment caused by COVID-19 pandemic, we have evaluated and dedesignated a nominal amount of certain foreign exchange cash flow hedges during the three months ended March 31, 2020. The following table summarizes our outstanding derivative contracts and their effects in our Consolidated Condensed Balance Sheets at March 31, 2020 and December 31, 2019 : Fair Value of Notional Amount Hedge Assets Hedge Liabilities Maximum Term (Months) Millions of dollars 2020 2019 2020 2019 2020 2019 2020 2019 Derivatives accounted for as hedges (1) Commodity swaps/options $ 237 $ 174 $ — $ 4 $ 55 $ 10 (CF) 36 21 Foreign exchange forwards/options 2,923 3,177 183 94 17 84 (CF/NI) 143 32 Cross-currency swaps 1,275 1,275 115 25 — 23 (CF) 107 110 Interest rate derivatives 300 300 — 6 64 — (CF) 62 65 Total derivatives accounted for as hedges $ 298 $ 129 $ 136 $ 117 Derivatives not accounted for as hedges Commodity swaps/options 1 1 — — — — N/A 4 7 Foreign exchange forwards/options $ 2,511 $ 3,182 $ 48 $ 15 $ 30 $ 22 N/A 9 12 Total derivatives not accounted for as hedges 48 15 30 22 Total derivatives $ 346 $ 144 $ 166 $ 139 Current $ 167 $ 55 $ 77 $ 61 Noncurrent 179 89 89 78 Total derivatives $ 346 $ 144 $ 166 $ 139 (1) Derivatives accounted for as hedges are considered either cash flow (CF) or net investment (NI) hedges. The following tables summarize the effects of derivative instruments and foreign currency debt designated as net investment hedges in our Consolidated Condensed Statements of Comprehensive Income for the periods presented: Three Months Ended March 31, Gain (Loss) (2) Cash Flow Hedges - Millions of dollars 2020 2019 Commodity swaps/options $ (55 ) $ 22 Foreign exchange forwards/options 105 28 Cross-currency swaps 120 (17 ) Interest rate derivatives (71 ) — Net Investment Hedges Foreign currency 67 1 166 34 Three Months Ended March 31, Location of Gain (Loss) Reclassified from OCI into Earnings (Effective Portion) Gain (Loss) Reclassified from OCI into Earnings (Effective Portion) Cash Flow Hedges - Millions of dollars 2020 2019 Commodity swaps/options (3) Cost of products sold $ (7 ) $ (3 ) Foreign exchange forwards/options Net sales — (1 ) Foreign exchange forwards/options Cost of products sold — 5 Foreign exchange forwards/options Interest and sundry (income) expense (32 ) 37 Cross-currency swaps Interest and sundry (income) expense 27 8 Interest rate derivatives Interest expense — 1 (12 ) 47 Three Months Ended March 31, Location of Gain (Loss) Recognized on Derivatives not Gain (Loss) Recognized on Derivatives not Accounted for as Hedges Derivatives not Accounted for as Hedges - Millions of dollars 2020 2019 Foreign exchange forwards/options Interest and sundry (income) expense $ 42 $ 29 (2) Change in gain (loss) recognized in OCI (effective portion) for the three months ended March 31, 2020 is primarily driven by currency fluctuations and declines in commodity prices and interest rates compared to the prior year. The tax impact of the cash flow hedges was $(23) million and $5 million for the three months ended March 31, 2020 and 2019 , respectively. The tax impact of the net investment hedges was $(24) million and $1 million for the three months ended March 31, 2020 and 2019 , respectively. (3) Cost for commodity swaps/options are recognized in cost of sales as products are sold. For cash flow hedges, the amount of ineffectiveness recognized in interest and sundry (income) expense was nominal for the periods ended March 31, 2020 , and 2019 . There were no hedges designated as fair value for the periods ended March 31, 2020 , and 2019 . 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 $78 million at March 31, 2020 . |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2020 and December 31, 2019 are as follows: Fair Value Millions of dollars Total Cost Basis Level 1 (2) Level 2 Total Measured at fair value on a recurring basis: 2020 2019 2020 2019 2020 2019 2020 2019 Short-term investments (1) $ 1,967 $ 1,308 $ 1,210 $ 398 $ 757 $ 910 $ 1,967 $ 1,308 Net derivative contracts — — — — 180 5 180 5 (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) Increase in level 1 investments reflect invested proceeds from the borrowings due to banks, including the current portion outstanding under the Amended Long-Term Facility. Other Fair Value Measurements The fair value of long-term debt (including current maturities) was $4.65 billion and $5.00 billion at March 31, 2020 and December 31, 2019 , 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 | 3 Months Ended |
Mar. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | STOCKHOLDERS' EQUITY The following table summarizes the changes in stockholders' equity for the periods presented: Whirlpool Stockholders' Equity Total Retained Earnings Accumulated Other Comprehensive Income (Loss) Treasury Stock/ Additional Paid- in-Capital Common Stock Non- Controlling Interests Balances, December 31, 2019 $ 4,118 $ 7,870 $ (2,618 ) $ (2,169 ) $ 112 $ 923 Comprehensive income Net earnings 147 152 — — — (5 ) Other comprehensive income (95 ) — (97 ) — — 2 Comprehensive income 52 152 (97 ) — — (3 ) Stock issued (repurchased) (115 ) — — (115 ) — — Dividends declared (75 ) (75 ) — — — — Balances, March 31, 2020 3,980 7,947 (2,715 ) (2,284 ) 112 920 Whirlpool Stockholders' Equity Total Retained Earnings Accumulated Other Comprehensive Income (Loss) Treasury Stock/ Additional Paid- in-Capital Common Stock Non- Controlling Interests Balances, December 31, 2018 $ 3,205 $ 6,933 $ (2,695 ) $ (2,059 ) $ 112 $ 914 Comprehensive income Net earnings 474 471 — — — 3 Other comprehensive income 93 — 93 — — — Comprehensive income 567 471 93 — — 3 Adjustment to beginning retained earnings (1) 61 61 — — — — Stock issued (repurchased) (40 ) — — (40 ) — — Dividends declared (74 ) (74 ) — — — — Balances, March 31, 2019 $ 3,719 $ 7,391 $ (2,602 ) $ (2,099 ) $ 112 $ 917 (1) Increase to beginning retained earnings is due to the adoption of ASU 2016-02 [increase of approximately $61 million (net of tax)]. Other Comprehensive Income (Loss) The following table summarizes our other comprehensive income (loss) and related tax effects for the periods presented: Three Months Ended March 31, 2020 2019 Millions of dollars Pre-tax Tax Effect Net Pre-tax Tax Effect Net Currency translation adjustments (2) $ (172 ) $ (24 ) $ (196 ) $ 92 1 $ 93 Cash flow hedges 111 (23 ) 88 (14 ) 5 (9 ) Pension and other postretirement benefits plans 16 (3 ) 13 12 (3 ) 9 Other comprehensive income (loss) (45 ) (50 ) (95 ) 90 3 93 Less: Other comprehensive income (loss) available to noncontrolling interests 2 — 2 — — — Other comprehensive income (loss) available to Whirlpool $ (47 ) $ (50 ) $ (97 ) $ 90 $ 3 $ 93 (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 months ended March 31, 2020 : Three Months Ended Millions of dollars (Gain) Loss Reclassified Classification in Earnings Pension and postretirement benefits, pre-tax 16 Interest and sundry (income) expense Net Earnings per Share Diluted net earnings per share of common stock include the dilutive effect of stock options and other share-based compensation plans. Basic and diluted net earnings per share of common stock for the periods presented were calculated as follows: Three Months Ended March 31, Millions of dollars and shares 2020 2019 Numerator for basic and diluted earnings per share - Net earnings (loss) available to Whirlpool $ 152 $ 471 Denominator for basic earnings per share - weighted-average shares 62.8 64.0 Effect of dilutive securities - share-based compensation 0.5 0.5 Denominator for diluted earnings per share - adjusted weighted-average shares 63.3 64.5 Anti-dilutive stock options/awards excluded from earnings per share 2.0 1.8 Share Repurchase Program On July 25, 2017, our Board of Directors authorized a share repurchase program of up to $2 billion . During the three months ended March 31, 2020 , we repurchased 902,000 shares under this share repurchase program at an aggregate price of approximately $121 million . At March 31, 2020 , there were approximately $531 million in remaining funds authorized under this program. Share repurchases are made from time to time on the open market as conditions warrant. Given the current level of uncertainty surrounding the COVID-19 pandemic, we've decided to temporarily suspend our share repurchase program to protect liquidity in the current environment. The program does not obligate us to repurchase any of our shares and it has no expiration date. |
Restructuring Charges
Restructuring Charges | 3 Months Ended |
Mar. 31, 2020 | |
Restructuring Charges [Abstract] | |
Restructuring Charges | RESTRUCTURING CHARGES We periodically take action to improve operating efficiencies, typically in connection with business acquisitions or changes in the economic environment. Our footprint and headcount reductions and organizational integration actions relate to discrete, unique restructuring events, primarily reflected in the following plans: In 2018, we announced actions in EMEA to reduce fixed costs by $50 million . The initiatives primarily include headcount reductions throughout the EMEA region. Additionally, we exited domestic sales operations in Turkey. These actions are substantially complete at March 31, 2020. 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 intend to cease production in the plant and exit the facility in 2020 as previously disclosed. In connection with this action, we have incurred approximately $43 million in asset impairment costs, $8 million in other associated costs and $4 million in employee-related costs through March 31, 2020. As of December 31, 2019, we estimated total costs of $145 million and cash expenditures of $98 million . Due to the termination of the preliminary agreement with a potential third-party purchaser in March 2020, we revised our estimated total costs to approximately $135 million and cash expenditures to $87 million . We estimate that the remaining costs of approximately $80 million , including approximately $48 million in employee-related costs and approximately $32 million in other associated costs, will be substantially incurred in 2020. The Company also believes that substantially all of the $87 million in estimated cash expenditures will occur in 2020. We expect these actions to be substantially complete in 2020. The following table summarizes the restructuring actions above for the three months ended March 31, 2020 and the total costs to date for each plan: Millions of dollars 2020 Total EMEA fixed cost actions $ 2 $ 79 Naples $ 1 $ 55 The following table summarizes the changes to our restructuring liability during the three months ended March 31, 2020 : Millions of dollars December 31, 2019 Charges to Earnings Cash Paid Non-Cash and Other March 31, 2020 Employee termination costs $ 57 $ 3 $ (12 ) $ — $ 48 Asset impairment costs 8 — — — 8 Facility exit costs — 2 (2 ) — — Other exit costs 12 — (3 ) (2 ) 7 Total $ 77 $ 5 $ (17 ) $ (2 ) $ 63 The following table summarizes the restructuring charges by operating segment for the period presented: Three Months Ended Millions of dollars March 31, 2020 North America $ — EMEA 5 Latin America — Asia — Corporate / Other — Total $ 5 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Income tax expense was $72 million for the three months ended March 31, 2020 , compared to income tax benefit of $132 million in the same period of 2019 . For the three months ended March 31, 2020 , the increase in tax expense from the prior period is due primarily to the impact of valuation allowances releases in the prior period, partially offset by overall higher level of earnings and related tax expense. 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 March 31, Millions of dollars 2020 2019 Earnings (loss) before income taxes $ 219 $ 342 Income tax expense (benefit) computed at United States statutory tax rate 46 72 Valuation allowances 1 (235 ) U.S. foreign income items, net of credits 3 7 Other 22 24 Income tax expense (benefit) computed at effective worldwide tax rates $ 72 $ (132 ) At the end of each interim period, we estimate the effective tax rate expected to be applicable for the full fiscal year and the impact of discrete items, if any, and adjust the quarterly rate as necessary. Valuation Allowances We routinely review the future realization of deferred tax assets based on projected future reversal of taxable temporary differences, available tax planning strategies and projected future taxable income. During the first quarter of 2019, we completed a $700 million bond offering for which the proceeds were used to refinance and recapitalize various entities in the EMEA region. Based upon existing transfer pricing policies, these actions are projected to provide sufficient future taxable income to realize the deferred tax assets. These actions injected additional internal capital into certain EMEA entities to meet local country capitalization requirements, as well as repaid all outstanding borrowings under the Whirlpool EMEA Finance Term Loan. As a result, we reduced the valuation allowance by $235 million |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION Our reportable segments are based upon geographical region and are defined as North America, EMEA, Latin America and Asia. These regions also represent our operating segments. Each segment manufactures home appliances and related components, but serves strategically different marketplaces. The chief operating decision maker evaluates performance based on each segment's earnings (loss) before interest and taxes (EBIT), which we define as operating profit less interest and sundry (income) expense and excluding restructuring costs, asset impairment charges and certain other items that management believes are not indicative of the region's ongoing performance, if any. Total assets by segment are those assets directly associated with the respective operating activities. The "Other/Eliminations" column primarily includes corporate expenses, assets and eliminations, as well as restructuring costs, asset impairment charges and certain other items that management believes are not indicative of the region's ongoing performance, if any. Intersegment sales are eliminated within each region except compressor sales out of Latin America through June 30, 2019, which were included in Other/Eliminations. The tables below summarize performance by operating segment for the periods presented: Three Months Ended March 31, OPERATING SEGMENTS North EMEA Latin Asia Other / Eliminations Total Net sales 2020 $ 2,540 $ 879 $ 618 $ 288 $ — $ 4,325 2019 2,535 1,004 875 371 (25 ) 4,760 Intersegment sales 2020 $ 72 $ 20 $ 285 $ 63 $ (440 ) $ — 2019 66 21 337 84 (508 ) — Depreciation and amortization 2020 $ 47 $ 38 $ 16 $ 17 $ 17 $ 135 2019 49 43 18 17 15 142 EBIT 2020 $ 303 $ (15 ) $ 31 $ (16 ) $ (42 ) $ 261 2019 312 (21 ) 45 7 50 393 Total assets March 31, 2020 $ 7,627 $ 10,281 $ 3,777 $ 2,477 $ (4,767 ) $ 19,395 December 31, 2019 7,791 9,450 4,226 2,581 (5,167 ) 18,881 Capital expenditures 2020 $ 28 $ 14 $ 14 $ 14 $ 12 $ 82 2019 35 10 24 10 6 85 The following table summarizes the reconciling items in the Other/Eliminations column for total EBIT for the periods presented: Three Months Ended March 31, in millions 2020 2019 Items not allocated to segments: Restructuring costs $ (5 ) $ (26 ) Divestiture related transition costs — (6 ) Brazil indirect tax credit — 127 Corporate expenses and other (37 ) (45 ) Total other/eliminations $ (42 ) $ 50 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 March 31, in millions 2020 2019 Operating profit $ 260 $ 263 Interest and sundry (income) expense (1 ) (130 ) Total EBIT $ 261 $ 393 Interest expense 42 51 Income tax expense 72 (132 ) Net earnings (loss) $ 147 $ 474 Less: Net earnings available to noncontrolling interests (5 ) 3 Net earnings (loss) available to Whirlpool $ 152 $ 471 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
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, 2019 . 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. |
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. |
Goodwill and Indefinite-lived Intangible Assets | Goodwill and indefinite-lived intangible assets Our Critical Accounting Policies and Estimates for goodwill and other indefinite-life 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, 2019. We continue to monitor the significant global economic uncertainty as a result of COVID-19 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* and Maytag trademarks continue to be at risk at March 31, 2020. The goodwill in our other reporting units or indefinite-lived intangible assets is not at risk for future impairment. |
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. The changing and volatile macro-economic conditions connected with the COVID-19 pandemic may 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. |
Adoption of New Accounting Standards and Accounting Pronouncements Issued But Not Yet Effective | Adoption of New Accounting Standards On January 1, 2020 we adopted Accounting Standards Update ("ASU") No. 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments." The guidance in ASU 2016-13 creates a new impairment standard replacing the current "incurred loss" model. The incurred loss model required that for a loss to be impaired and recognized on the financial statements it must be probable that it has been incurred at the measurement date. The new standard utilizes an "expected credit loss" model also referred to as "the current expected credit loss" (CECL) model. Under CECL, there is no threshold for impairment loss recognition, but it instead reflects a current estimate of all expected credit losses. The adoption of this standard did not have a material impact to the Consolidated Condensed Financial Statements. For additional information on the required disclosures related to the impact of adopting this standard, see Note 2 to the Consolidated Condensed Financial Statements. We adopted the following standards, none of which have a material impact on our Consolidated Condensed Financial Statements: Standard Effective Date 2018-13 Fair Value Measurement (Topic 820) Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement January 1, 2020 2018-15 Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40) Customer's Accounting for Implementation Costs Incurred In a Cloud Computing Arrangement That Is a Service Contract January 1, 2020 2018-18 Collaborative Arrangements (Topic 808) - Clarifying the Interaction between Topic 808 and Topic 606 January 1, 2020 All other newly issued and effective accounting standards during 2020 were not relevant or material to the Company. *Whirlpool ownership of the Hotpoint brand in EMEA and Asia Pacific regions is not affiliated with the Hotpoint brand sold in the Americas. 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. The amendments are effective for all entities from the beginning of an interim period that includes the issuance date of the ASU. An entity may elect to apply the amendments prospectively through December 31, 2022. The Company is currently evaluating the impact of adopting this guidance. In December 2019, the FASB issued Update 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes". The amendments in this Update affect entities within the scope of Topic 740, Income Taxes. The amendments in this Update simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. For public business entities, the amendments in this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The Company is currently evaluating the impact of adopting this guidance. The FASB has issued the following relevant standards, which are not expected to have a material impact on our Consolidated Condensed Financial Statements: Standard Effective Date 2018-14 Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans January 1, 2021 All other issued and not yet effective accounting standards are not relevant or material to the Company. |
Derivatives | 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 of materials used in our manufacturing process. The objective of these hedges is to reduce the variability of cash flows associated with the forecasted purchase of commodities. 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. Notional amount of outstanding cross-currency interest rate swap agreements was $1,275 million at March 31, 2020 and December 31, 2019 . We may enter into interest rate swap agreements to manage interest rate risk exposure. Our interest rate swap agreements, if any, effectively modify our exposure to interest rate risk, primarily through converting certain floating rate debt to a fixed rate basis, and certain fixed rate debt to a floating rate basis. These agreements involve either the receipt or payment of floating rate amounts in exchange for fixed rate interest payments or receipts, respectively, over the life of the agreements without an exchange of the underlying principal amounts. We 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. There was a notional amount of $300 million of outstanding interest rate swap agreements at March 31, 2020 and December 31, 2019 . |
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 evaluates performance based on each segment's earnings (loss) before interest and taxes (EBIT), which we define as operating profit less interest and sundry (income) expense and excluding restructuring costs, asset impairment charges and certain other items that management believes are not indicative of the region's ongoing performance, if any. Total assets by segment are those assets directly associated with the respective operating activities. The "Other/Eliminations" column primarily includes corporate expenses, assets and eliminations, as well as restructuring costs, asset impairment charges and certain other items that management believes are not indicative of the region's ongoing performance, if any. Intersegment sales are eliminated within each region except compressor sales out of Latin America through June 30, 2019, which were included in Other/Eliminations. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The FASB has issued the following relevant standards, which are not expected to have a material impact on our Consolidated Condensed Financial Statements: Standard Effective Date 2018-14 Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans January 1, 2021 We adopted the following standards, none of which have a material impact on our Consolidated Condensed Financial Statements: Standard Effective Date 2018-13 Fair Value Measurement (Topic 820) Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement January 1, 2020 2018-15 Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40) Customer's Accounting for Implementation Costs Incurred In a Cloud Computing Arrangement That Is a Service Contract January 1, 2020 2018-18 Collaborative Arrangements (Topic 808) - Clarifying the Interaction between Topic 808 and Topic 606 January 1, 2020 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, Millions of dollars 2020 2019 Major product categories: Laundry $ 1,330 $ 1,483 Refrigeration 1,362 1,363 Cooking 943 1,044 Dishwashing 371 364 Total major product category net sales $ 4,006 $ 4,254 Compressors (1) — 312 Spare parts and warranties 228 191 Other 90 3 Total net sales $ 4,325 $ 4,760 (1) Change in compressors compared to the prior year is due to the divestiture of the Embraco compressor business. |
Allowance for Doubtful Accounts by Operating Segment | The following table summarizes our allowance for doubtful accounts by operating segment for the three months ended March 31, 2020 . Millions of dollars December 31, 2019 Charged to Earnings Write-offs Foreign Currency March 31, 2020 North America $ 4 $ 1 $ — $ — $ 5 EMEA 83 1 (9 ) (4 ) 71 Latin America 33 6 — (6 ) 33 Asia 12 4 — (1 ) 15 Consolidated $ 132 $ 12 $ (9 ) $ (11 ) $ 124 |
Cash, Cash Equivalents and Re_2
Cash, Cash Equivalents and Restricted Cash (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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: March 31, Millions of dollars 2020 2019 Cash and cash equivalents as presented in our Consolidated Condensed Balance Sheets $ 2,837 $ 1,163 Restricted cash included in prepaid and other current assets (1) — 32 Cash, cash equivalents and restricted cash as presented in our Consolidated Condensed Statements of Cash Flows $ 2,837 $ 1,195 (1) Change in restricted cash reflects realization of foreign currency translation adjustments of $(2) million for the three months ended March 31, 2019 compared to the prior fiscal year end. December 31, Millions of dollars 2019 2018 Cash and cash equivalents as presented in our Consolidated Balance Sheets $ 1,952 $ 1,498 Restricted cash included in prepaid and other current assets — 40 Cash, cash equivalents and restricted cash as presented in our Consolidated Statements of Cash Flows $ 1,952 $ 1,538 |
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: March 31, Millions of dollars 2020 2019 Cash and cash equivalents as presented in our Consolidated Condensed Balance Sheets $ 2,837 $ 1,163 Restricted cash included in prepaid and other current assets (1) — 32 Cash, cash equivalents and restricted cash as presented in our Consolidated Condensed Statements of Cash Flows $ 2,837 $ 1,195 (1) Change in restricted cash reflects realization of foreign currency translation adjustments of $(2) million for the three months ended March 31, 2019 compared to the prior fiscal year end. December 31, Millions of dollars 2019 2018 Cash and cash equivalents as presented in our Consolidated Balance Sheets $ 1,952 $ 1,498 Restricted cash included in prepaid and other current assets — 40 Cash, cash equivalents and restricted cash as presented in our Consolidated Statements of Cash Flows $ 1,952 $ 1,538 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Inventory, Net [Abstract] | |
Schedule of Inventory | The following table summarizes our inventories at March 31, 2020 and December 31, 2019 : Millions of dollars March 31, 2020 December 31, 2019 Finished products $ 2,063 $ 1,979 Raw materials and work in process 619 602 2,682 2,581 Less: excess of FIFO cost over LIFO cost (139 ) (143 ) Total inventories $ 2,543 $ 2,438 |
Property, Plant & Equipment (Ta
Property, Plant & Equipment (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property, Plant and Equipment | The following table summarizes our property, plant and equipment at March 31, 2020 and December 31, 2019 : Millions of dollars March 31, 2020 December 31, 2019 Land $ 88 $ 97 Buildings 1,503 1,540 Machinery and equipment 7,953 8,108 Accumulated depreciation (6,388 ) (6,444 ) Property, plant and equipment, net $ 3,156 $ 3,301 |
Financing Arrangements (Tables)
Financing Arrangements (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Notes Payable | The following table summarizes the carrying value of notes payable at March 31, 2020 and December 31, 2019 : Millions of dollars March 31, 2020 December 31, 2019 Commercial paper $ 197 $ 274 Short-term borrowings due to banks 2,195 20 Total notes payable $ 2,392 $ 294 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 2020 2019 Balance at January 1 $ 383 $ 268 Issuances/accruals during the period 47 67 Settlements made during the period/other (124 ) (80 ) Balance at March 31 $ 306 $ 255 Current portion $ 179 $ 182 Non-current portion 127 73 Total $ 306 $ 255 |
Pension and Other Postretirem_2
Pension and Other Postretirement Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, United States Foreign Other Postretirement Millions of dollars 2020 2019 2020 2019 2020 2019 Service cost $ 1 $ 1 $ 2 $ 1 $ 2 $ 2 Interest cost 25 31 4 6 3 4 Expected return on plan assets (41 ) (44 ) (8 ) (7 ) — — Amortization: Actuarial loss 15 12 3 2 — — Prior service credit — (1 ) — — (2 ) (2 ) Settlement and curtailment (gain) loss — — — 1 — (7 ) Net periodic benefit cost (credit) $ — $ (1 ) $ 1 $ 3 $ 3 $ (3 ) 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 March 31, United States Foreign Other Postretirement Millions of dollars 2020 2019 2020 2019 2020 2019 Operating profit (loss) $ 1 $ 1 $ 2 $ 1 $ 2 $ 2 Interest and sundry (income) expense (1 ) (2 ) (1 ) 2 1 (5 ) Net periodic benefit cost $ — $ (1 ) $ 1 $ 3 $ 3 $ (3 ) |
Hedges and Derivative Financi_2
Hedges and Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2020 and December 31, 2019 : Notional (Local) Notional (USD) Current Maturity Instrument 2020 2019 2020 2019 Senior note - 0.625% € — € 500 $ — $ 561 March 2020 Foreign exchange forwards/options MXN 7,200 MXN 7,200 $ 307 $ 382 August 2022 The following table summarizes our outstanding derivative contracts and their effects in our Consolidated Condensed Balance Sheets at March 31, 2020 and December 31, 2019 : Fair Value of Notional Amount Hedge Assets Hedge Liabilities Maximum Term (Months) Millions of dollars 2020 2019 2020 2019 2020 2019 2020 2019 Derivatives accounted for as hedges (1) Commodity swaps/options $ 237 $ 174 $ — $ 4 $ 55 $ 10 (CF) 36 21 Foreign exchange forwards/options 2,923 3,177 183 94 17 84 (CF/NI) 143 32 Cross-currency swaps 1,275 1,275 115 25 — 23 (CF) 107 110 Interest rate derivatives 300 300 — 6 64 — (CF) 62 65 Total derivatives accounted for as hedges $ 298 $ 129 $ 136 $ 117 Derivatives not accounted for as hedges Commodity swaps/options 1 1 — — — — N/A 4 7 Foreign exchange forwards/options $ 2,511 $ 3,182 $ 48 $ 15 $ 30 $ 22 N/A 9 12 Total derivatives not accounted for as hedges 48 15 30 22 Total derivatives $ 346 $ 144 $ 166 $ 139 Current $ 167 $ 55 $ 77 $ 61 Noncurrent 179 89 89 78 Total derivatives $ 346 $ 144 $ 166 $ 139 (1) |
Schedule of Effects of Derivative Instruments on Consolidated Statements of Income | The following tables summarize the effects of derivative instruments and foreign currency debt designated as net investment hedges in our Consolidated Condensed Statements of Comprehensive Income for the periods presented: Three Months Ended March 31, Gain (Loss) (2) Cash Flow Hedges - Millions of dollars 2020 2019 Commodity swaps/options $ (55 ) $ 22 Foreign exchange forwards/options 105 28 Cross-currency swaps 120 (17 ) Interest rate derivatives (71 ) — Net Investment Hedges Foreign currency 67 1 166 34 Three Months Ended March 31, Location of Gain (Loss) Reclassified from OCI into Earnings (Effective Portion) Gain (Loss) Reclassified from OCI into Earnings (Effective Portion) Cash Flow Hedges - Millions of dollars 2020 2019 Commodity swaps/options (3) Cost of products sold $ (7 ) $ (3 ) Foreign exchange forwards/options Net sales — (1 ) Foreign exchange forwards/options Cost of products sold — 5 Foreign exchange forwards/options Interest and sundry (income) expense (32 ) 37 Cross-currency swaps Interest and sundry (income) expense 27 8 Interest rate derivatives Interest expense — 1 (12 ) 47 Three Months Ended March 31, Location of Gain (Loss) Recognized on Derivatives not Gain (Loss) Recognized on Derivatives not Accounted for as Hedges Derivatives not Accounted for as Hedges - Millions of dollars 2020 2019 Foreign exchange forwards/options Interest and sundry (income) expense $ 42 $ 29 (2) Change in gain (loss) recognized in OCI (effective portion) for the three months ended March 31, 2020 is primarily driven by currency fluctuations and declines in commodity prices and interest rates compared to the prior year. The tax impact of the cash flow hedges was $(23) million and $5 million for the three months ended March 31, 2020 and 2019 , respectively. The tax impact of the net investment hedges was $(24) million and $1 million for the three months ended March 31, 2020 and 2019 , respectively. (3) Cost for commodity swaps/options are recognized in cost of sales as products are sold. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2020 and December 31, 2019 are as follows: Fair Value Millions of dollars Total Cost Basis Level 1 (2) Level 2 Total Measured at fair value on a recurring basis: 2020 2019 2020 2019 2020 2019 2020 2019 Short-term investments (1) $ 1,967 $ 1,308 $ 1,210 $ 398 $ 757 $ 910 $ 1,967 $ 1,308 Net derivative contracts — — — — 180 5 180 5 (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) Increase in level 1 investments reflect invested proceeds from the borrowings due to banks, including the current portion outstanding under the Amended Long-Term Facility. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Stockholders Equity | The following table summarizes the changes in stockholders' equity for the periods presented: Whirlpool Stockholders' Equity Total Retained Earnings Accumulated Other Comprehensive Income (Loss) Treasury Stock/ Additional Paid- in-Capital Common Stock Non- Controlling Interests Balances, December 31, 2019 $ 4,118 $ 7,870 $ (2,618 ) $ (2,169 ) $ 112 $ 923 Comprehensive income Net earnings 147 152 — — — (5 ) Other comprehensive income (95 ) — (97 ) — — 2 Comprehensive income 52 152 (97 ) — — (3 ) Stock issued (repurchased) (115 ) — — (115 ) — — Dividends declared (75 ) (75 ) — — — — Balances, March 31, 2020 3,980 7,947 (2,715 ) (2,284 ) 112 920 Whirlpool Stockholders' Equity Total Retained Earnings Accumulated Other Comprehensive Income (Loss) Treasury Stock/ Additional Paid- in-Capital Common Stock Non- Controlling Interests Balances, December 31, 2018 $ 3,205 $ 6,933 $ (2,695 ) $ (2,059 ) $ 112 $ 914 Comprehensive income Net earnings 474 471 — — — 3 Other comprehensive income 93 — 93 — — — Comprehensive income 567 471 93 — — 3 Adjustment to beginning retained earnings (1) 61 61 — — — — Stock issued (repurchased) (40 ) — — (40 ) — — Dividends declared (74 ) (74 ) — — — — Balances, March 31, 2019 $ 3,719 $ 7,391 $ (2,602 ) $ (2,099 ) $ 112 $ 917 (1) Increase to beginning retained earnings is due to the adoption of ASU 2016-02 [increase of approximately $61 million (net of tax)]. |
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 March 31, 2020 2019 Millions of dollars Pre-tax Tax Effect Net Pre-tax Tax Effect Net Currency translation adjustments (2) $ (172 ) $ (24 ) $ (196 ) $ 92 1 $ 93 Cash flow hedges 111 (23 ) 88 (14 ) 5 (9 ) Pension and other postretirement benefits plans 16 (3 ) 13 12 (3 ) 9 Other comprehensive income (loss) (45 ) (50 ) (95 ) 90 3 93 Less: Other comprehensive income (loss) available to noncontrolling interests 2 — 2 — — — Other comprehensive income (loss) available to Whirlpool $ (47 ) $ (50 ) $ (97 ) $ 90 $ 3 $ 93 (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 months ended March 31, 2020 : Three Months Ended Millions of dollars (Gain) Loss Reclassified Classification in Earnings Pension and postretirement benefits, pre-tax 16 Interest and sundry (income) expense |
Schedule of Calculation of Numerator and Denominator in Earnings Per Share | Basic and diluted net earnings per share of common stock for the periods presented were calculated as follows: Three Months Ended March 31, Millions of dollars and shares 2020 2019 Numerator for basic and diluted earnings per share - Net earnings (loss) available to Whirlpool $ 152 $ 471 Denominator for basic earnings per share - weighted-average shares 62.8 64.0 Effect of dilutive securities - share-based compensation 0.5 0.5 Denominator for diluted earnings per share - adjusted weighted-average shares 63.3 64.5 Anti-dilutive stock options/awards excluded from earnings per share 2.0 1.8 |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Restructuring Charges [Abstract] | |
Schedule of Restructuring Actions | The following table summarizes the restructuring actions above for the three months ended March 31, 2020 and the total costs to date for each plan: Millions of dollars 2020 Total EMEA fixed cost actions $ 2 $ 79 Naples $ 1 $ 55 |
Schedule of Restructuring Liability and Restructuring Activity | The following table summarizes the changes to our restructuring liability during the three months ended March 31, 2020 : Millions of dollars December 31, 2019 Charges to Earnings Cash Paid Non-Cash and Other March 31, 2020 Employee termination costs $ 57 $ 3 $ (12 ) $ — $ 48 Asset impairment costs 8 — — — 8 Facility exit costs — 2 (2 ) — — Other exit costs 12 — (3 ) (2 ) 7 Total $ 77 $ 5 $ (17 ) $ (2 ) $ 63 |
Schedule of Restructuring Costs, By Operating Segment | The following table summarizes the restructuring charges by operating segment for the period presented: Three Months Ended Millions of dollars March 31, 2020 North America $ — EMEA 5 Latin America — Asia — Corporate / Other — Total $ 5 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, Millions of dollars 2020 2019 Earnings (loss) before income taxes $ 219 $ 342 Income tax expense (benefit) computed at United States statutory tax rate 46 72 Valuation allowances 1 (235 ) U.S. foreign income items, net of credits 3 7 Other 22 24 Income tax expense (benefit) computed at effective worldwide tax rates $ 72 $ (132 ) |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment Information | The tables below summarize performance by operating segment for the periods presented: Three Months Ended March 31, OPERATING SEGMENTS North EMEA Latin Asia Other / Eliminations Total Net sales 2020 $ 2,540 $ 879 $ 618 $ 288 $ — $ 4,325 2019 2,535 1,004 875 371 (25 ) 4,760 Intersegment sales 2020 $ 72 $ 20 $ 285 $ 63 $ (440 ) $ — 2019 66 21 337 84 (508 ) — Depreciation and amortization 2020 $ 47 $ 38 $ 16 $ 17 $ 17 $ 135 2019 49 43 18 17 15 142 EBIT 2020 $ 303 $ (15 ) $ 31 $ (16 ) $ (42 ) $ 261 2019 312 (21 ) 45 7 50 393 Total assets March 31, 2020 $ 7,627 $ 10,281 $ 3,777 $ 2,477 $ (4,767 ) $ 19,395 December 31, 2019 7,791 9,450 4,226 2,581 (5,167 ) 18,881 Capital expenditures 2020 $ 28 $ 14 $ 14 $ 14 $ 12 $ 82 2019 35 10 24 10 6 85 The following table summarizes the reconciling items in the Other/Eliminations column for total EBIT for the periods presented: Three Months Ended March 31, in millions 2020 2019 Items not allocated to segments: Restructuring costs $ (5 ) $ (26 ) Divestiture related transition costs — (6 ) Brazil indirect tax credit — 127 Corporate expenses and other (37 ) (45 ) Total other/eliminations $ (42 ) $ 50 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 March 31, in millions 2020 2019 Operating profit $ 260 $ 263 Interest and sundry (income) expense (1 ) (130 ) Total EBIT $ 261 $ 393 Interest expense 42 51 Income tax expense 72 (132 ) Net earnings (loss) $ 147 $ 474 Less: Net earnings available to noncontrolling interests (5 ) 3 Net earnings (loss) available to Whirlpool $ 152 $ 471 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 4,325 | $ 4,760 |
Laundry | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 1,330 | 1,483 |
Refrigeration | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 1,362 | 1,363 |
Cooking | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 943 | 1,044 |
Dishwashing | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 371 | 364 |
Total major product category net sales | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 4,006 | 4,254 |
Compressors(1) | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 0 | 312 |
Spare parts and warranties | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 228 | 191 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 90 | $ 3 |
Revenue Recognition - Allowance
Revenue Recognition - Allowance for Doubtful Accounts by Operating Segment (Details) R$ in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2020USD ($) | Dec. 31, 2019BRL (R$) | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at beginning of period | $ 132 | |
Charged to Earnings | 12 | |
Write-offs | (9) | |
Foreign Currency | (11) | |
Balance at end of period | 124 | |
Allowance for credit loss | 124 | R$ 117 |
Prepaid Expenses and Other Assets | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at beginning of period | 48 | |
Balance at end of period | 41 | |
Allowance for credit loss | 48 | |
North America | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at beginning of period | 4 | |
Charged to Earnings | 1 | |
Write-offs | 0 | |
Foreign Currency | 0 | |
Balance at end of period | 5 | |
Allowance for credit loss | 5 | |
EMEA | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at beginning of period | 83 | |
Charged to Earnings | 1 | |
Write-offs | (9) | |
Foreign Currency | (4) | |
Balance at end of period | 71 | |
Allowance for credit loss | 71 | |
Latin America | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at beginning of period | 33 | |
Charged to Earnings | 6 | |
Write-offs | 0 | |
Foreign Currency | (6) | |
Balance at end of period | 33 | |
Allowance for credit loss | 33 | |
Asia | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at beginning of period | 12 | |
Charged to Earnings | 4 | |
Write-offs | 0 | |
Foreign Currency | (1) | |
Balance at end of period | 15 | |
Allowance for credit loss | $ 15 |
Cash, Cash Equivalents and Re_3
Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents as presented in our Consolidated Condensed Balance Sheets | $ 1,163,000,000 | $ 2,837,000,000 | $ 1,952,000,000 | $ 1,498,000,000 |
Restricted cash included in prepaid and other current assets | 32,000,000 | 0 | 0 | 40,000,000 |
Cash, cash equivalents and restricted cash as presented in our Consolidated Condensed Statements of Cash Flows | 1,195,000,000 | $ 2,837,000,000 | 1,952,000,000 | $ 1,538,000,000 |
Foreign currency translation adjustment | $ (2,000,000) | |||
Whirlpool China | ||||
Cash and Cash Equivalents [Line Items] | ||||
Restricted cash | $ 0 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Inventory, Net [Abstract] | ||
Finished products | $ 2,063 | $ 1,979 |
Raw materials and work in process | 619 | 602 |
Gross inventories | 2,682 | 2,581 |
Less: excess of FIFO cost over LIFO cost | (139) | (143) |
Total inventories | $ 2,543 | $ 2,438 |
Percentage of LIFO Inventory | 42.00% | 43.00% |
Property, Plant & Equipment (De
Property, Plant & Equipment (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | ||
Accumulated depreciation | $ (6,388) | $ (6,444) |
Property, plant and equipment, net | 3,156 | 3,301 |
Disposed of fully depreciated buildings, machinery and equipment | 18 | |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 88 | 97 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 1,503 | 1,540 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 7,953 | $ 8,108 |
Financing Arrangements - Narrat
Financing Arrangements - Narrative (Details) | Apr. 27, 2020USD ($) | Feb. 21, 2020EUR (€) | Aug. 09, 2019USD ($) | Mar. 01, 2019USD ($) | Feb. 27, 2019EUR (€) | Feb. 27, 2019USD ($) | Feb. 26, 2019USD ($) | Sep. 27, 2017 | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Aug. 06, 2019USD ($) | Mar. 31, 2020INR (₨) | Mar. 31, 2020BRL (R$) | Mar. 31, 2020USD ($) | Mar. 13, 2020USD ($) | Mar. 12, 2020EUR (€) | Mar. 12, 2020USD ($) | Feb. 21, 2020USD ($) | Dec. 31, 2019USD ($) | Aug. 05, 2019EUR (€) |
Debt Instrument [Line Items] | ||||||||||||||||||||
Repayments of long-term debt | $ 566,000,000 | $ 939,000,000 | ||||||||||||||||||
Letter of Credit Subfacility Maturing 2022 | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Line of credit facility, maximum borrowing capacity | ₨ 1,000,000,000 | R$ 1000000000 | $ 206,000,000 | $ 262,000,000 | ||||||||||||||||
Line of Credit | Revolving Credit Facility | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Line of credit facility, maximum borrowing capacity | $ 3,500,000,000 | |||||||||||||||||||
Line of Credit | Foreign Line of Credit | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Line of credit facility, maximum borrowing capacity | € | € 250,000,000 | |||||||||||||||||||
0.50% notes maturing 2028 | Senior Notes | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Debt instrument, face amount | € 500,000,000 | $ 540,000,000 | ||||||||||||||||||
Debt instrument, interest rate, stated percentage | 0.50% | 0.50% | ||||||||||||||||||
Debt instrument, redemption price, percentage | 101.00% | |||||||||||||||||||
101% notes maturing 2029 | Senior Notes | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Debt instrument, face amount | $ 700,000,000 | $ 700,000,000 | ||||||||||||||||||
Debt instrument, interest rate, stated percentage | 4.75% | |||||||||||||||||||
Debt instrument, redemption price, percentage | 101.00% | |||||||||||||||||||
Senior note - 0.625% | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Debt instrument, interest rate, stated percentage | 0.625% | 0.625% | 0.625% | |||||||||||||||||
Senior note - 0.625% | Senior Notes | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Debt instrument, face amount | € 500,000,000 | $ 566,000,000 | ||||||||||||||||||
Debt instrument, interest rate, stated percentage | 0.625% | 0.625% | ||||||||||||||||||
Term Loan Agreement | Secured Debt | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Repayments of long-term debt | $ 1,000,000,000 | € 600,000,000 | $ 673,000,000 | |||||||||||||||||
Senior note - 2.4% maturing 2019 | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Debt instrument, interest rate, stated percentage | 2.40% | |||||||||||||||||||
Repayments of long-term debt | $ 250,000,000 | |||||||||||||||||||
364-Day Credit Agreement | Line of Credit | Revolving Credit Facility | Subsequent Event | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Line of credit facility, commitment fee percentage | 0.40% | |||||||||||||||||||
Ratio of indebtedness to net capital | 0.65 | |||||||||||||||||||
Debt instrument, covenant, rolling twelve month coverage ratio, minimum | 3 | |||||||||||||||||||
Line of credit facility, maximum borrowing capacity | $ 500,000,000 | |||||||||||||||||||
364-Day Credit Agreement | Line of Credit | London Interbank Offered Rate (LIBOR) | Revolving Credit Facility | Subsequent Event | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Debt instrument, basis spread on variable rate | 1.625% | |||||||||||||||||||
364-Day Credit Agreement | Line of Credit | Prime Rate | Revolving Credit Facility | Subsequent Event | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Debt instrument, basis spread on variable rate | 0.625% | |||||||||||||||||||
Third Amended and Restated Long-Term Credit Agreement | Line of Credit | Revolving Credit Facility | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Line of credit facility, commitment fee percentage | 0.10% | |||||||||||||||||||
Ratio of indebtedness to net capital | 0.65 | |||||||||||||||||||
Debt instrument, covenant, rolling twelve month coverage ratio, minimum | 3 | |||||||||||||||||||
Line of credit facility, maximum borrowing capacity | $ 3,500,000,000 | $ 3,500,000,000 | $ 2,200,000,000 | |||||||||||||||||
Line of credit facility, increase | $ 500,000,000 | |||||||||||||||||||
Line of credit outstanding | 2,200,000,000 | 0 | ||||||||||||||||||
Line of credit remaining availability | 1,300,000,000 | |||||||||||||||||||
Third Amended and Restated Long-Term Credit Agreement | Line of Credit | London Interbank Offered Rate (LIBOR) | Revolving Credit Facility | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Debt instrument, basis spread on variable rate | 1.125% | |||||||||||||||||||
Third Amended and Restated Long-Term Credit Agreement | Line of Credit | Prime Rate | Revolving Credit Facility | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Debt instrument, basis spread on variable rate | 0.125% | |||||||||||||||||||
Accounts Receivable | ||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||
Outstanding accounts receivable transferred under arrangements where the Company continues to service the transferred asset | $ 241,000,000 | $ 348,000,000 |
Financing Arrangements - Notes
Financing Arrangements - Notes Payable (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Short-term Debt [Line Items] | ||
Notes Payable, Current | $ 2,392 | $ 294 |
Commercial paper | ||
Short-term Debt [Line Items] | ||
Short-term debt | 197 | 274 |
Short-term borrowings to banks | ||
Short-term Debt [Line Items] | ||
Short-term debt | $ 2,195 | $ 20 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) € in Thousands, R$ in Millions | Dec. 06, 2018EUR (€) | Aug. 31, 2018EUR (€) | Mar. 31, 2020USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019EUR (€)action | Jun. 30, 2019USD ($)action | Mar. 31, 2019USD ($) | Dec. 31, 2019EUR (€) | Dec. 31, 2019USD ($) | Dec. 31, 2017BRL (R$) | Dec. 31, 2017USD ($) | Dec. 31, 2009USD ($) | Dec. 31, 2004USD ($) | Mar. 31, 2020BRL (R$)lawsuitwashing_machine | Mar. 31, 2020USD ($)lawsuitwashing_machine | Dec. 31, 2019BRL (R$) | Dec. 31, 2019USD ($) |
Commitments and Contingencies [Line Items] | |||||||||||||||||
BEFIEX tax credits monetized | $ 72,000,000 | ||||||||||||||||
BEFIEX tax credit, additional amount available to recognize | $ 0 | ||||||||||||||||
Outstanding BEFIEX tax assessment | R$ 2000 | 377,000,000 | |||||||||||||||
Product warranty accrual | $ 38,000,000 | $ 105,000,000 | |||||||||||||||
Brazil tax matters | |||||||||||||||||
Commitments and Contingencies [Line Items] | |||||||||||||||||
IPI tax credits recognized | $ 26,000,000 | ||||||||||||||||
Special government program settlement | $ 34,000,000 | ||||||||||||||||
Brazil tax assessment | 255 | 49,000,000 | |||||||||||||||
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 | |||||||||||||||
BEFIEX tax fees | $ 1,000,000 | ||||||||||||||||
Number of legal actions | action | 2 | 2 | |||||||||||||||
CFC tax | |||||||||||||||||
Commitments and Contingencies [Line Items] | |||||||||||||||||
CFC potential exposure | R$ 293 | 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 | |||||||||||||||
Indesit Company S.p.A. | |||||||||||||||||
Commitments and Contingencies [Line Items] | |||||||||||||||||
Payments for legal settlements | € | € 17,000 | ||||||||||||||||
Product warranty accrual | $ 26,000,000 | ||||||||||||||||
Alno AG Insolvency Trustee v Bauknecht | Insolvency trustee claim | |||||||||||||||||
Commitments and Contingencies [Line Items] | |||||||||||||||||
Litigation settlement, amount awarded to other party | € 52,750 | $ 59,000,000 | |||||||||||||||
Value of clawback and other claims asserted | € | € 174,500 | ||||||||||||||||
Pending Litigation | |||||||||||||||||
Commitments and Contingencies [Line Items] | |||||||||||||||||
Number of lawsuits | lawsuit | 2 | 2 | |||||||||||||||
Number of washing machines | washing_machine | 2 | 2 | |||||||||||||||
Settled Litigation | June 2018 agreement with FCA | |||||||||||||||||
Commitments and Contingencies [Line Items] | |||||||||||||||||
Litigation settlement, amount awarded to other party | € | € 102,000 | ||||||||||||||||
Settled Litigation | June 2018 agreement with FCA | Whirlpool France SAS | |||||||||||||||||
Commitments and Contingencies [Line Items] | |||||||||||||||||
Litigation settlement, amount awarded to other party | € | 56,000 | ||||||||||||||||
Settled Litigation | June 2018 agreement with FCA | Indesit Company S.p.A. | |||||||||||||||||
Commitments and Contingencies [Line Items] | |||||||||||||||||
Litigation settlement, amount awarded to other party | € | € 46,000 | ||||||||||||||||
Customer Lines of Credit for Brazilian Subsidiary | |||||||||||||||||
Commitments and Contingencies [Line Items] | |||||||||||||||||
Guarantor obligations, maximum exposure, undiscounted | R$ 544 | $ 105,000,000 | R$ 577 | $ 143,000,000 | |||||||||||||
Guarantee of Indebtedness of Others | |||||||||||||||||
Commitments and Contingencies [Line Items] | |||||||||||||||||
Guarantor obligations, maximum exposure, undiscounted | $ 3,300,000,000 | $ 2,600,000,000 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Product Warranty Reserves (Details) - Product Warranty - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward] | ||||
Balance at January 1 | $ 383 | $ 268 | ||
Issuances/accruals during the period | 47 | 67 | ||
Settlements made during the period/other | (124) | (80) | ||
Balance at March 31 | 306 | 255 | ||
Current portion | $ 179 | $ 182 | ||
Non-current portion | 127 | 73 | ||
Total | $ 306 | $ 255 | $ 306 | $ 255 |
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 | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 2 | $ 2 |
Interest cost | 3 | 4 |
Expected return on plan assets | 0 | 0 |
Amortization: | ||
Actuarial loss | 0 | 0 |
Prior service credit | (2) | (2) |
Settlement and curtailment (gain) loss | 0 | (7) |
Net periodic benefit cost (credit) | 3 | (3) |
United States Pension Benefits | Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 1 | 1 |
Interest cost | 25 | 31 |
Expected return on plan assets | (41) | (44) |
Amortization: | ||
Actuarial loss | 15 | 12 |
Prior service credit | 0 | (1) |
Settlement and curtailment (gain) loss | 0 | 0 |
Net periodic benefit cost (credit) | 0 | (1) |
Foreign Pension Benefits | Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 2 | 1 |
Interest cost | 4 | 6 |
Expected return on plan assets | (8) | (7) |
Amortization: | ||
Actuarial loss | 3 | 2 |
Prior service credit | 0 | 0 |
Settlement and curtailment (gain) loss | 0 | 1 |
Net periodic benefit cost (credit) | $ 1 | $ 3 |
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 | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net periodic cost | $ 3 | $ (3) |
Operating profit | Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net periodic cost | 2 | 2 |
Interest and sundry (income) expense | Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net periodic cost | 1 | (5) |
United States Pension Benefits | Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net periodic cost | 0 | (1) |
United States Pension Benefits | Operating profit | Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net periodic cost | 1 | 1 |
United States Pension Benefits | Interest and sundry (income) expense | Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net periodic cost | (1) | (2) |
Foreign Pension Benefits | Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net periodic cost | 1 | 3 |
Foreign Pension Benefits | Operating profit | Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net periodic cost | 2 | 1 |
Foreign Pension Benefits | Interest and sundry (income) expense | Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net periodic cost | $ (1) | $ 2 |
Hedges and Derivative Financi_3
Hedges and Derivative Financial Instruments - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Derivative [Line Items] | ||
Net hedge ineffectiveness gain (loss) | $ 0 | $ 0 |
Gain (loss) on derivative instruments included in AOCI | 78,000,000 | |
Derivatives accounted for as hedges(1) | Cross-currency swaps | ||
Derivative [Line Items] | ||
Notional amount | 1,275,000,000 | 1,275,000,000 |
Derivatives accounted for as hedges(1) | Interest rate derivatives | ||
Derivative [Line Items] | ||
Notional amount | $ 300,000,000 | $ 300,000,000 |
Hedges and Derivative Financi_4
Hedges and Derivative Financial Instruments - Schedule of Net Investment Hedging (Details) - Net Investment Hedges € in Millions, $ in Millions, $ in Millions | Mar. 31, 2020MXN ($) | Mar. 31, 2020EUR (€) | Mar. 31, 2020USD ($) | Dec. 31, 2019MXN ($) | Dec. 31, 2019EUR (€) | Dec. 31, 2019USD ($) |
Senior note - 0.625% | ||||||
Derivative [Line Items] | ||||||
Notional amount | € 0 | $ 0 | € 500 | $ 561 | ||
Foreign exchange forwards/options | ||||||
Derivative [Line Items] | ||||||
Notional amount | $ 7,200 | $ 307 | $ 7,200 | $ 382 |
Hedges and Derivative Financi_5
Hedges and Derivative Financial Instruments - Schedule of Outstanding Derivative Contracts (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Derivatives, Fair Value [Line Items] | ||
Fair value of hedged assets | $ 346 | $ 144 |
Fair value of hedged liabilities | 166 | 139 |
Derivative asset at fair value, current | 167 | 55 |
Derivative asset at fair value, noncurrent | 179 | 89 |
Total derivatives, hedge assets at fair value | 346 | 144 |
Derivative liability at fair value, current | 77 | 61 |
Derivative liability at fair value, noncurrent | 89 | 78 |
Total derivatives, hedge liabilities at fair value | 166 | 139 |
Derivatives accounted for as hedges(1) | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of hedged assets | 298 | 129 |
Fair value of hedged liabilities | 136 | 117 |
Derivatives accounted for as hedges(1) | Commodity swaps/options | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 237 | 174 |
Fair value of hedged assets | 0 | 4 |
Fair value of hedged liabilities | $ 55 | $ 10 |
Maximum term of commodity swaps/options (in months) | 36 months | 21 months |
Derivatives accounted for as hedges(1) | Foreign exchange forwards/options | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | $ 2,923 | $ 3,177 |
Fair value of hedged assets | 183 | 94 |
Fair value of hedged liabilities | $ 17 | $ 84 |
Maximum term of foreign exchange forwards/options (in months) | 143 months | 32 months |
Derivatives accounted for as hedges(1) | Cross-currency swaps | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | $ 1,275 | $ 1,275 |
Fair value of hedged assets | 115 | 25 |
Fair value of hedged liabilities | $ 0 | $ 23 |
Maximum term of cross-currency swaps (in months) | 107 months | 110 months |
Derivatives accounted for as hedges(1) | Interest rate derivatives | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | $ 300 | $ 300 |
Fair value of hedged assets | 0 | 6 |
Fair value of hedged liabilities | $ 64 | $ 0 |
Maximum term of interest rate derivatives (in months) | 62 months | 65 months |
Derivatives not accounted for as hedges | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of hedged assets | $ 48 | $ 15 |
Fair value of hedged liabilities | 30 | 22 |
Derivatives not accounted for as hedges | Commodity swaps/options | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 1 | 1 |
Fair value of hedged assets | 0 | 0 |
Fair value of hedged liabilities | $ 0 | $ 0 |
Maximum term of commodity swaps/options (in months) | 4 months | 7 months |
Derivatives not accounted for as hedges | Foreign exchange forwards/options | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | $ 2,511 | $ 3,182 |
Fair value of hedged assets | 48 | 15 |
Fair value of hedged liabilities | $ 30 | $ 22 |
Maximum term of foreign exchange forwards/options (in months) | 9 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 | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Hedges, gain (loss) recognized in OCI | $ 166 | $ 34 |
Cash flow hedges, gain (loss) reclassified from OCI into earnings | (12) | 47 |
Foreign exchange | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivatives not accounted for as hedges, gain (loss) recognized | 42 | 29 |
Cash Flow Hedges | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Tax impact of cash flow hedges | (23) | 5 |
Cash Flow Hedges | Commodity swaps/options | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Cash flow hedges, gain (loss) recognized in OCI | (55) | 22 |
Cash Flow Hedges | Foreign exchange | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Cash flow hedges, gain (loss) recognized in OCI | 105 | 28 |
Cash Flow Hedges | Cross-currency swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Cash flow hedges, gain (loss) recognized in OCI | 120 | (17) |
Cash Flow Hedges | Interest rate derivatives | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Cash flow hedges, gain (loss) recognized in OCI | (71) | 0 |
Net Investment Hedges | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Tax impact of net investment hedges | (24) | 1 |
Net Investment Hedges | Foreign exchange | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net investment hedges, gain (loss) recognized in OCI | 67 | 1 |
Net Sales | Cash Flow Hedges | Foreign exchange | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Cash flow hedges, gain (loss) reclassified from OCI into earnings | 0 | (1) |
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 | (7) | (3) |
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 | 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 | (32) | 37 |
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 | 27 | 8 |
Interest Expense | Cash Flow Hedges | Interest rate derivatives | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Cash flow hedges, gain (loss) reclassified from OCI into earnings | $ 0 | $ 1 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, fair value | $ 4,650 | $ 5,000 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | $ 1,967 | $ 1,308 |
Net derivative contracts | 180 | 5 |
Level 1(2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 1,210 | 398 |
Net derivative contracts | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 757 | 910 |
Net derivative contracts | 180 | 5 |
Total Cost Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 1,967 | 1,308 |
Net derivative contracts | $ 0 | $ 0 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Changes in Stockholders' Equity (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Jan. 01, 2019 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance | $ 4,118 | $ 3,205 | |
Comprehensive income | |||
Net earnings | 147 | 474 | |
Other comprehensive loss | (95) | 93 | |
Comprehensive income | 52 | 567 | |
Stock issued (repurchased) | (115) | (40) | |
Dividends declared | (75) | (74) | |
Ending balance | 3,980 | 3,719 | |
Retained Earnings | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance | 7,870 | 6,933 | |
Comprehensive income | |||
Net earnings | 152 | 471 | |
Comprehensive income | 152 | 471 | |
Dividends declared | (75) | (74) | |
Ending balance | 7,947 | 7,391 | |
Accumulated Other Comprehensive Income (Loss) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance | (2,618) | (2,695) | |
Comprehensive income | |||
Other comprehensive loss | (97) | 93 | |
Comprehensive income | (97) | 93 | |
Ending balance | (2,715) | (2,602) | |
Treasury Stock/ Additional Paid- in-Capital | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance | (2,169) | (2,059) | |
Comprehensive income | |||
Stock issued (repurchased) | (115) | (40) | |
Ending balance | (2,284) | (2,099) | |
Common Stock | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance | 112 | 112 | |
Comprehensive income | |||
Ending balance | 112 | 112 | |
Noncontrolling Interests | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance | 923 | 914 | |
Comprehensive income | |||
Net earnings | (5) | 3 | |
Other comprehensive loss | 2 | 0 | |
Comprehensive income | (3) | 3 | |
Ending balance | $ 920 | $ 917 | |
Accounting Standards Update 2016-02 | |||
Comprehensive income | |||
Cumulative effect of new accounting principle in period of adoption | $ 61 | ||
Accounting Standards Update 2016-02 | Retained Earnings | |||
Comprehensive income | |||
Cumulative effect of new accounting principle in period of adoption | $ 61 |
Stockholders' Equity - Other Co
Stockholders' Equity - Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Pre-tax | $ (45) | $ 90 |
Tax Effect | (50) | 3 |
Net | (95) | 93 |
Currency translation adjustments | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Pre-tax | (172) | 92 |
Tax Effect | (24) | 1 |
Net | (196) | 93 |
Cash flow hedges | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Pre-tax | 111 | (14) |
Tax Effect | (23) | 5 |
Net | 88 | (9) |
Pension and other postretirement benefits plans | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Pre-tax | 16 | 12 |
Tax Effect | (3) | (3) |
Net | 13 | 9 |
Noncontrolling Interests | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Pre-tax | 2 | 0 |
Tax Effect | 0 | 0 |
Net | 2 | 0 |
Other comprehensive income (loss) available to Whirlpool | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Pre-tax | (47) | 90 |
Tax Effect | (50) | 3 |
Net | $ (97) | $ 93 |
Stockholders' Equity - Reclassi
Stockholders' Equity - Reclassifications out of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Reclassifications out of Accumulated Other Comprehensive Income [Line Items] | ||
Interest and sundry (income) expense | $ (1) | $ (130) |
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 | $ 16 |
Stockholders' Equity - Net Earn
Stockholders' Equity - Net Earnings Per Share (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Stockholders' Equity Note [Abstract] | ||
Numerator for basic and diluted earnings per share - Net earnings (loss) available to Whirlpool | $ 152 | $ 471 |
Denominator for basic earnings per share – weighted-average shares (in shares) | 62.8 | 64 |
Effect of dilutive securities – share-based compensation (in shares) | 0.5 | 0.5 |
Denominator for diluted earnings per share – adjusted weighted-average shares (in shares) | 63.3 | 64.5 |
Anti-dilutive stock options/awards excluded from earnings per share (in shares) | 2 | 1.8 |
Stockholders' Equity - Share Re
Stockholders' Equity - Share Repurchase Program (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Jul. 25, 2017 | |
Equity, Class of Treasury Stock [Line Items] | |||
Stock repurchased during period, value | $ 115,000,000 | $ 40,000,000 | |
Common Stock | Share Repurchase Program 2017 | |||
Equity, Class of Treasury Stock [Line Items] | |||
Stock repurchase program, authorized amount | $ 2,000,000,000 | ||
Stock repurchased during period (in shares) | 902,000 | ||
Stock repurchased during period, value | $ 121,000,000 | ||
Stock repurchase program, remaining authorized repurchase amount | $ 531,000,000 |
Restructuring Charges - Restruc
Restructuring Charges - Restructuring Actions (Details) - USD ($) $ in Millions | Sep. 16, 2019 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Naples, Italy Manufacturing Plant | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and related cost, incurred cost | $ 1 | ||||
Restructuring and related cost, expected cost | 135 | $ 145 | |||
Restructuring and related cost, expected cash payments | 87 | $ 98 | |||
Restructuring and related cost, total costs to date | 55 | ||||
EMEA | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and related cost, expected reduction in overhead costs | $ 50 | ||||
Restructuring and related cost, incurred cost | 2 | ||||
Restructuring and related cost, total costs to date | 79 | ||||
Asset Impairment Charges | Naples, Italy Manufacturing Plant | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and related cost, incurred cost | $ 43 | ||||
Other Asset Impairment Charges | Naples, Italy Manufacturing Plant | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and related cost, incurred cost | $ 8 | ||||
Employee-related Charges | Naples, Italy Manufacturing Plant | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and related cost, expected cost | $ 4 | ||||
Forecast | Naples, Italy Manufacturing Plant | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and related cost, expected cash payments | $ 80 | ||||
Forecast | Other Asset Impairment Charges | Naples, Italy Manufacturing Plant | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and related cost, expected cash payments | 32 | ||||
Forecast | Employee-related Charges | Naples, Italy Manufacturing Plant | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and related cost, expected cash payments | $ 48 |
Restructuring Charges - Change
Restructuring Charges - Change in Restructuring Liability (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning balance | $ 77 | |
Charge to Earnings | 5 | $ 26 |
Cash Paid | (17) | |
Non-cash and Other | (2) | |
Restructuring reserve, ending balance | 63 | |
Employee termination costs | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning balance | 57 | |
Charge to Earnings | 3 | |
Cash Paid | (12) | |
Non-cash and Other | 0 | |
Restructuring reserve, ending balance | 48 | |
Asset impairment costs | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning balance | 8 | |
Charge to Earnings | 0 | |
Cash Paid | 0 | |
Non-cash and Other | 0 | |
Restructuring reserve, ending balance | 8 | |
Facility exit costs | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning balance | 0 | |
Charge to Earnings | 2 | |
Cash Paid | (2) | |
Non-cash and Other | 0 | |
Restructuring reserve, ending balance | 0 | |
Other exit costs | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning balance | 12 | |
Charge to Earnings | 0 | |
Cash Paid | (3) | |
Non-cash and Other | 2 | |
Restructuring reserve, ending balance | $ 7 |
Restructuring Charges - By Segm
Restructuring Charges - By Segment (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | $ 5 | $ 26 |
Operating Segments | North America | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 0 | |
Operating Segments | EMEA | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 5 | |
Operating Segments | Latin America | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 0 | |
Operating Segments | Asia | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 0 | |
Corporate / Other | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | $ 0 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Feb. 26, 2019 | |
Debt Instrument [Line Items] | |||
Income tax expense (benefit) | $ 72,000,000 | $ (132,000,000) | |
Increase (decrease) in deferred tax asset valuation allowance | (235,000,000) | ||
Senior Notes | 101% notes maturing 2029 | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 700,000,000 | $ 700,000,000 |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Earnings (loss) before income taxes | $ 219 | $ 342 |
Income tax expense (benefit) computed at United States statutory tax rate | 46 | 72 |
Valuation allowances | 1 | (235) |
U.S. foreign income items, net of credits | 3 | 7 |
Other | 22 | 24 |
Income tax expense (benefit) computed at effective worldwide tax rates | $ 72 | $ (132) |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2020 | Sep. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 4,325 | $ 4,760 | ||
Depreciation and amortization | 135 | 142 | ||
EBIT | 261 | 393 | ||
Total assets | 19,395 | $ 18,881 | ||
Capital expenditures | 82 | 85 | ||
Restructuring costs | (5) | (26) | ||
Brazil indirect tax credit | (38) | $ (105) | ||
Operating profit | 260 | 263 | ||
Interest and sundry (income) expense | (1) | (130) | ||
Interest expense | 42 | 51 | ||
Income tax expense (benefit) | 72 | (132) | ||
Net earnings | 147 | 474 | ||
Less: Net earnings (loss) available to noncontrolling interests | (5) | 3 | ||
Net earnings available to Whirlpool | 152 | 471 | ||
North America | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 2,540 | 2,535 | ||
EMEA | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 879 | 1,004 | ||
Latin America | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 618 | 875 | ||
Asia | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 288 | 371 | ||
Intersegment sales | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | (440) | (508) | ||
Intersegment sales | North America | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 72 | 66 | ||
Intersegment sales | EMEA | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 20 | 21 | ||
Intersegment sales | Latin America | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 285 | 337 | ||
Intersegment sales | Asia | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 63 | 84 | ||
Operating Segments | North America | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | 47 | 49 | ||
EBIT | 303 | 312 | ||
Total assets | 7,627 | 7,791 | ||
Capital expenditures | 28 | 35 | ||
Restructuring costs | 0 | |||
Operating Segments | EMEA | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | 38 | 43 | ||
EBIT | (15) | (21) | ||
Total assets | 10,281 | 9,450 | ||
Capital expenditures | 14 | 10 | ||
Restructuring costs | (5) | |||
Operating Segments | Latin America | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | 16 | 18 | ||
EBIT | 31 | 45 | ||
Total assets | 3,777 | 4,226 | ||
Capital expenditures | 14 | 24 | ||
Restructuring costs | 0 | |||
Operating Segments | Asia | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization | 17 | 17 | ||
EBIT | (16) | 7 | ||
Total assets | 2,477 | 2,581 | ||
Capital expenditures | 14 | 10 | ||
Restructuring costs | 0 | |||
Other / Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 0 | (25) | ||
Depreciation and amortization | 17 | 15 | ||
EBIT | (42) | 50 | ||
Total assets | (4,767) | $ (5,167) | ||
Capital expenditures | 12 | 6 | ||
Restructuring costs | (5) | (26) | ||
Divestiture related transition costs | 0 | (6) | ||
Brazil indirect tax credit | 0 | 127 | ||
Corporate expenses and other | $ (37) | $ (45) |