Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2022 | Apr. 22, 2022 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
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) | 56,202,362 | |
Entity Registrant Name | WHIRLPOOL CORP /DE/ | |
Entity Central Index Key | 0000106640 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Chicago Stock Exchange | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common stock, par value $1.00 per share | |
Trading Symbol | WHR | |
Security Exchange Name | CHX | |
New York Stock Exchange | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common stock, par value $1.00 per share | |
Trading Symbol | WHR | |
Security Exchange Name | NYSE |
CONSOLIDATED CONDENSED STATEMEN
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Net sales | $ 4,920 | $ 5,358 |
Expenses | ||
Cost of products sold | 4,069 | 4,210 |
Gross margin | 851 | 1,148 |
Selling, general and administrative | 376 | 493 |
Intangible amortization | 9 | 17 |
Restructuring costs | 5 | 20 |
Operating profit | 461 | 618 |
Other (income) expense | ||
Interest and sundry (income) expense | (7) | (26) |
Interest expense | 41 | 45 |
Earnings before income taxes | 427 | 599 |
Income tax expense (benefit) | 106 | 159 |
Equity method investment income (loss), net of tax | (5) | 0 |
Net earnings | 316 | 440 |
Less: Net earnings (loss) available to noncontrolling interests | 3 | 7 |
Net earnings available to Whirlpool | $ 313 | $ 433 |
Per share of common stock | ||
Basic net earnings available to Whirlpool (in USD per share) | $ 5.37 | $ 6.87 |
Diluted net earnings available to Whirlpool (in USD per share) | 5.33 | 6.81 |
Dividends declared (in USD per share) | $ 1.75 | $ 1.25 |
Weighted-average shares outstanding (in millions) | ||
Basic (in shares) | 58.3 | 63 |
Diluted (in shares) | 58.7 | 63.6 |
Comprehensive income | $ 374 | $ 564 |
CONSOLIDATED CONDENSED BALANCE
CONSOLIDATED CONDENSED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash and cash equivalents | $ 2,114 | $ 3,044 |
Accounts receivable, net of allowance of $100 and $98, respectively | 2,860 | 3,100 |
Inventories | 3,136 | 2,717 |
Prepaid and other current assets | 858 | 834 |
Total current assets | 8,968 | 9,695 |
Property, net of accumulated depreciation of $6,696 and $6,619, respectively | 2,764 | 2,805 |
Right of use assets | 947 | 946 |
Goodwill | 2,476 | 2,485 |
Other intangibles, net of accumulated amortization of $524 and $522, respectively | 1,962 | 1,981 |
Deferred income taxes | 1,897 | 1,920 |
Other noncurrent assets | 473 | 453 |
Total assets | 19,487 | 20,285 |
Current liabilities | ||
Accounts payable | 5,262 | 5,413 |
Accrued expenses | 685 | 609 |
Accrued advertising and promotions | 582 | 854 |
Employee compensation | 343 | 576 |
Notes payable | 10 | 10 |
Current maturities of long-term debt | 548 | 298 |
Other current liabilities | 855 | 750 |
Total current liabilities | 8,285 | 8,510 |
Noncurrent liabilities | ||
Long-term debt | 4,631 | 4,929 |
Pension benefits | 364 | 378 |
Postretirement benefits | 141 | 142 |
Lease liabilities | 798 | 794 |
Other noncurrent liabilities | 523 | 519 |
Total noncurrent liabilities | 6,457 | 6,762 |
Stockholders' equity | ||
Common stock, $1 par value, 250 million shares authorized, 114 million and 114 million shares issued, respectively, and 57 million and 59 million shares outstanding, respectively | 114 | 114 |
Additional paid-in capital | 3,028 | 3,025 |
Retained earnings | 10,380 | 10,170 |
Accumulated other comprehensive loss | (2,299) | (2,357) |
Treasury stock, 57 million and 55 million shares, respectively | (6,648) | (6,106) |
Total Whirlpool stockholders' equity | 4,575 | 4,846 |
Noncontrolling interests | 170 | 167 |
Total stockholders' equity | 4,745 | 5,013 |
Total liabilities and stockholders' equity | $ 19,487 | $ 20,285 |
CONSOLIDATED CONDENSED BALANC_2
CONSOLIDATED CONDENSED BALANCE SHEETS (Parenthetical) - USD ($) shares in Millions, $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 100 | $ 98 |
Accumulated depreciation | 6,696 | 6,619 |
Accumulated amortization | $ 524 | $ 522 |
Common stock, par value (in USD per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 250 | 250 |
Common stock, shares issued (in shares) | 114 | 114 |
Common stock, shares outstanding (in shares) | 57 | 59 |
Treasury stock (in shares) | 57 | 55 |
CONSOLIDATED CONDENSED STATEM_2
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Operating activities | ||
Net earnings | $ 316 | $ 440 |
Adjustments to reconcile net earnings to cash provided by (used in) operating activities: | ||
Depreciation and amortization | 112 | 141 |
Changes in assets and liabilities: | ||
Accounts receivable | 248 | (58) |
Inventories | (384) | (332) |
Accounts payable | (217) | 185 |
Accrued advertising and promotions | (272) | (192) |
Accrued expenses and current liabilities | 186 | 172 |
Taxes deferred and payable, net | 79 | 110 |
Accrued pension and postretirement benefits | (28) | (28) |
Employee compensation | (234) | (181) |
Other | (134) | (75) |
Cash provided by (used in) operating activities | (328) | 182 |
Investing activities | ||
Capital expenditures | (87) | (73) |
Proceeds from sale of assets and businesses | 75 | 13 |
Cash provided by (used in) investing activities | (12) | (60) |
Financing activities | ||
Dividends paid | (103) | (79) |
Repurchase of common stock | (533) | (150) |
Common stock issued | 2 | 31 |
Other | 3 | (36) |
Cash provided by (used in) financing activities | (631) | (234) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 41 | (58) |
Increase (decrease) in cash, cash equivalents and restricted cash | (930) | (170) |
Cash, cash equivalents and restricted cash at beginning of year | 3,044 | 2,934 |
Cash, cash equivalents and restricted cash at end of period | $ 2,114 | $ 2,764 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2022 | |
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, 2021. Management believes that the accompanying Consolidated Condensed Financial Statements reflect all adjustments, including normal recurring items, considered necessary for a fair presentation of the interim periods. We are required to make estimates and assumptions that affect the amounts reported in the Consolidated Condensed Financial Statements and accompanying Notes. Actual results could differ materially from those estimates. Certain prior year amounts in the Consolidated Condensed Financial Statements have been reclassified to conform with current year presentation. We have eliminated all material intercompany transactions in our Consolidated Condensed Financial Statements. We do not consolidate the financial statements of any company in which we have an ownership interest of 50% or less, unless that company is deemed to be a variable interest entity ("VIE") of which we are the primary beneficiary. VIEs are consolidated when the company is the primary beneficiary of these entities and has the ability to directly impact the activ i ties of these entities. Risks and Uncertainties During the first quarter of 2022, Russia commenced a military invasion of Ukraine, and the ensuing conflict has created disruption in the EMEA region and around the world. While we experienced some of this disruption during the quarter, the duration and severity of the effects on our business and the global economy are inherently unpredictable. We temporarily suspended operations in Ukraine after the invasion. We have recently resumed some of our sales and distribution operations in Ukraine. We currently have limited production in Russia, primarily to provide essential goods. We currently employ approximately 45 individuals in Ukraine and 2,500 individuals in Russia, primarily in our Lipetsk, Russia manufacturing facility. Ukraine revenues and net assets are not material to our EMEA operating segment and consolidated results. The net sales attributed to our operations in Russia are approximately 6% of the net sales of the EMEA operating segment for the three months ended March 31, 2022 and 7% for the three months ended March 31, 2021, respectively. The net assets of Russia are approximately $209 million as of March 31, 2022 and $212 million as of December 31, 2021, respectively. We continue to closely monitor the ongoing conflict and related sanctions, which could materially impact our financial results in the future. Furthermore, COVID-19 continues to impact countries across the world, and the duration and severity of the effects are currently unknown. The pandemic has impacted the Company and could materially impact our financial results in the future. The Consolidated Condensed Financial Statements presented herein reflect estimates and assumptions made by management at March 31, 2022. These 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 April 26, 2022, including those resulting from the impacts of COVID-19 as well as the ongoing conflict in Ukraine, will be reflected in management’s estimates for future periods. Goodwill and indefinite-lived intangible assets We continue to monitor the significant global economic uncertainty to assess the outlook for demand for our products and the impact on our business and our overall financial performance. While goodwill in the EMEA reporting unit and Hotpoint* and Indesit trademarks are not presently at risk, considering the ongoing conflict in Ukraine and related sanctions, we continue to monitor events or circumstances that would more likely than not reduce the fair values of a reporting unit or intangible assets below their carrying amounts. The Maytag trademark continues to be at risk at March 31, 2022. The potential impact of demand disruptions, production impacts or supply constraints along with a number of other factors could negatively effect revenues for the Maytag trademark, but we remain committed to the strategic actions necessary to realize the long-term forecasted profitability and recover from the supply constraints. A lack of recovery or further deterioration in market conditions, a sustained trend of weaker than expected financial performance in our Maytag trademark, among other factors, as a result of the COVID-19 pandemic, other macroeconomic factors or other unforeseen events could result in an impairment charge in future periods which could have a material adverse effect on our financial statements. 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 2022. The goodwill in any of our other reporting units or indefinite-lived intangible assets are not presently at risk for future impairment. Income taxes Under U.S. GAAP, the Company calculates its quarterly tax provision based on an estimated effective tax rate for the year and then adjusts this amount by certain discrete items each quarter. Potential changing and volatile macro-economic conditions could cause fluctuations in forecasted earnings before income taxes. As such, the Company's effective tax rate could be subject to volatility as forecasted earnings before income taxes are impacted by events which cannot be predicted. In addition, potential future economic deterioration brought on by the pandemic, ongoing conflict in Ukraine and related sanctions or other factors may negatively impact the realizability of certain deferred tax assets. Other Accounting Matters Synthetic lease arrangements We have a number of synthetic lease arrangements with financial institutions for non-core properties. The leases contain provisions for options to purchase, extend the original term for additional periods or return the property. As of March 31, 2022 and December 31, 2021, these arrangements include residual value guarantees of up to approximately $263 million and $264 million, respectively, that could potentially come due in future periods. We do not believe it is probable that any material amounts will be owed under these guarantees. Therefore, no material amounts related to the residual value guarantees are included in the lease payments used to measure the right-of-use assets and lease liabilities. The majority of these leases are classified as operating leases. We have assessed the reasonable certainty of these provisions to determine the appropriate lease term. The leases were measured using our incremental borrowing rate and are included in our right of use assets and lease liabilities in the Consolidated Condensed Balance Sheets. Rental payments are calculated at the applicable reference rate plus a margin. The impact to the Consolidated Condensed Balance Sheets and Consolidated Condensed Statements of Comprehensive Income (Loss) is nominal. Sale-leaseback transaction In the first quarter of 2022, the Company sold and leased back a group of non-core properties for net proceeds of approximately $52 million. The initial total annual rent for the properties is approximately $2 million per year over an initial 15 year lease term and is subject to annual rent increases. Under the terms of the lease agreement, the Company is responsible for all taxes, insurance and utilities and is required to adequately maintain the properties for the lease term. The Company has two sequential 5-year renewal options. * . Whirlpool ownership of the Hotpoint brand in the EMEA and Asia Pacific regions is not affiliated with the Hotpoint brand sold in the Americas. The transaction met the requirements for sale-leaseback accounting. Accordingly, the Company recorded the sale of the properties, which resulted in a gain of approximately $44 million ($36 million, net of tax) recorded in selling, general and administrative expense in the Consolidated Condensed Statements of Income (Loss). The related land and buildings were removed from property, plant and equipment, net and the appropriate right-of-use asset and lease liabilities of approximately $32 million were recorded in the Consolidated Condensed Balance Sheets. Supply Chain Financing Arrangements The Company has ongoing agreements globally with various third-parties to allow certain suppliers the opportunity to sell receivables due from us to participating financial institutions at the sole discretion of both the suppliers and the financial institutions. We have no economic interest in the sale of these receivables and no direct financial relationship with the financial institutions concerning these services. Our obligations to suppliers, including amounts due and scheduled payment terms, are not impacted. All outstanding balances under these programs are recorded in accounts payable on our Consolidated Condensed Balance Sheets. As of March 31, 2022 and December 31, 2021, approximately $1.4 billion have been issued to participating financial institutions. A downgrade in our credit rating or changes in the financial markets could limit the financial institutions’ willingness to commit funds to, and participate in, the programs. We do not believe such risk would have a material impact on our working capital or cash flows. Equity Method Investments Whirlpool holds an equity interest of 20% in Whirlpool (China) Co., Ltd. (Whirlpool China) an entity which was previously controlled by the Company. We made purchases from Whirlpool China of $102 million for the three months ended March 31, 2022. The outstanding amount due to Whirlpool China and its subsidiaries is $100 million as of March 31, 2022 and $137 million as of December 31, 2021, respectively. The carrying value of the equity interest in Whirlpool China is $201 million as of March 31, 2022 and $206 million as of December 31, 2021, respectively, and is included in Other noncurrent assets in the Consolidated Condensed Balance Sheet. The licensing revenue and outstanding accounts receivable from Whirlpool China and its subsidiaries are not material for the periods presented. Related Party Transactions After September 2021, the Company has a controlling equity ownership of 87% in Elica PB India which is consolidated in Whirlpool Corporation's financial statements and is reported within our Asia reportable segment. Goodwill of $100 million, which is not deductible for tax purposes, arose from this transaction and is allocated to the Asia reportable segment. Elica PB India is a VIE for which the Company is the primary beneficiary. The carrying amount of customer relationships, which are included in Other intangible assets, net of accumulated amortization, amounts to $35 million as of March 31, 2022 and $36 million as of December 31, 2021, respectively. Other assets or liabilities of Elica PB India are not material to the Consolidated Condensed Financial Statements of the Company for the periods presented. Both Whirlpool India and the non-controlling interest shareholders retain an option for Whirlpool India to purchase the remaining equity interest in Elica PB India for fair value, which could be material to the financial statements of the Company, depending on the performance of the business. Adoption of New Accounting Standards We adopted the following standard for the year ending December 31, 2022 which is not expected to have a material impact on our annual Consolidated Financial Statements: Standard Effective Date 2021-10 Government Assistance (Topic 832) - Disclosures by Business Entities about January 1, 2022 All other newly issued and effective accounting standards during 2022 were not relevant or material to the Company. Accounting Pronouncements Issued But Not Yet Effective In March 2020, the FASB issued Update 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting". The amendments in Update 2020-04 are elective and apply to all entities that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform. The new guidance provides the following optional expedients: simplify accounting analyses under current U.S. GAAP for contract modifications, simplify the assessment of hedge effectiveness, allow hedging relationships affected by reference rate reform to continue and allow a one-time election to sell or transfer debt securities classified as held to maturity that reference a rate affected by reference rate reform. In January 2021, the FASB issued Update 2021-01, "Reference Rate Reform (Topic 848): Scope". The update provides additional optional guidance on the transition from LIBOR to include derivative instruments that use an interest rate for margining, discounting or contract price alignment. The standard will ease, if warranted, the requirements for accounting for the future effects of the rate reform. An entity may elect to apply the amendments prospectively through December 31, 2022. The standard is not expected to have a material impact on our Consolidated Financial Statements. 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, 2022 | |
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 2022 2021 Major product categories: Laundry $ 1,333 $ 1,569 Refrigeration 1,528 1,627 Cooking 1,281 1,247 Dishwashing 450 515 Total major product category net sales $ 4,592 $ 4,958 Spare parts and warranties 234 266 Other 94 134 Total net sales $ 4,920 $ 5,358 The impact to revenue related to prior period performance obligations is less than 1% of global consolidated revenues for the three months ended March 31, 2022. 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 following table summarizes our allowance for expected credit losses and bad debt by operating segment for the three months ended March 31, 2022: Millions of dollars December 31, 2021 Charged to Earnings Write-offs Foreign Currency March 31, 2022 Accounts receivable allowance North America $ 7 $ — (2) — $ 5 EMEA 45 $ 7 $ — $ (2) $ 50 Latin America 43 — (2) 1 $ 42 Asia 3 $ — $ — $ 3 Consolidated $ 98 $ 7 $ (4) $ (1) $ 100 Financing receivable allowance Latin America $ 25 $ — $ — $ 5 $ 30 $ 25 $ — $ — $ 5 $ 30 Consolidated $ 123 $ 7 $ (4) $ 4 $ 130 We recorded an immaterial amount of bad debt expense for the periods ended March 31, 2022 and December 31, 2021, respectively. |
CASH, CASH EQUIVALENTS AND REST
CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 3 Months Ended |
Mar. 31, 2022 | |
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 2022 2021 Cash and cash equivalents as presented in our Consolidated Condensed Balance Sheets $ 2,114 $ 2,447 Cash included in assets held for sale (1) — 317 Cash, cash equivalents and restricted cash as presented in our Consolidated Condensed Statements of Cash Flows $ 2,114 $ 2,764 December 31, Millions of dollars 2021 2020 Cash and cash equivalents as presented in our Consolidated Balance Sheets $ 3,044 $ 2,924 Restricted cash included in prepaid and other current assets — 10 Cash, cash equivalents and restricted cash as presented in our Consolidated Statements of Cash Flows $ 3,044 $ 2,934 (1) Cash included in assets held for sale represents cash held in Whirlpool China in the first quarter of 2021. |
INVENTORIES
INVENTORIES | 3 Months Ended |
Mar. 31, 2022 | |
Inventory, Net [Abstract] | |
INVENTORIES | INVENTORIES The following table summarizes our inventories at March 31, 2022 and December 31, 2021: Millions of dollars March 31, 2022 December 31, 2021 Finished products $ 2,358 $ 1,958 Raw materials and work in process 778 759 Total Inventories $ 3,136 $ 2,717 |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 3 Months Ended |
Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT The following table summarizes our property, plant and equipment at March 31, 2022 and December 31, 2021: Millions of dollars March 31, 2022 December 31, 2021 Land $ 73 $ 84 Buildings 1,240 1,249 Machinery and equipment 8,147 8,091 Accumulated depreciation (6,696) (6,619) Property, plant and equipment, net $ 2,764 $ 2,805 During the three months ended March 31, 2022, we disposed of land, buildings, machinery and equipment with a net book value of $17 million, compared to $6 million in the same period of 2021. The net gain on the disposals is $57 million for the three months ended March 31, 2022 primarily driven by a sale-leaseback transaction. The net gain on the disposals was not material for the same period of 2021. For additional information see Note 1 to the Consolidated Condensed Financial Statements. |
FINANCING ARRANGEMENTS
FINANCING ARRANGEMENTS | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
FINANCING ARRANGEMENTS | FINANCING ARRANGEMENTS Debt Offering On April 29, 2021, Whirlpool Corporation (the “Company”), completed its inaugural Sustainability Bond offering of $300 million in principal amount of 2.400% Senior Notes due 2031 (the “2031 Notes”), in a public offering pursuant to a registration statement on Form S-3 (File No. 333-255372). The 2031 Notes were issued under an indenture (the “Indenture”), dated March 20, 2000, between the Company, as issuer, and U.S. Bank National Association (as successor to Citibank, N.A.), as trustee. The sale of the 2031 Notes was made pursuant to the terms of an Underwriting Agreement, dated April 26, 2021 (the “Underwriting Agreement”), among the Company, as issuer, and BNP Paribas Securities Corp., BofA Securities, Inc., J.P. Morgan Securities LLC, and Wells Fargo Securities, LLC, as representatives of the several underwriters in connection with the offering and sales of the 2031 Notes. The 2031 Notes contain covenants that limit the Company's ability to incur certain liens or enter into certain sale and lease-back transactions. In addition, if we experience a specific kind of change of control, we are required to make an offer to purchase all of the notes at a purchase price of 101% of the principal amount thereof, plus accrued and unpaid interest. The Company used the net proceeds from the sale of the 2031 Notes to redeem $300 million aggregate principal amount of 4.850% senior notes which was paid June 15, 2021. Consistent with the Company’s Sustainability Bond Framework, the Company allocated an amount equal to the net proceeds from the sale of the 2031 Notes to fund new and existing environmental and social Eligible Projects, as defined in the Company’s prospectus supplement dated April 26, 2021. On May 7, 2020, the Company completed its offering of $500 million in principal amount of 4.60% Senior Notes due 2050 (the “2050 Notes”), in a public offering pursuant to a registration statement on Form S-3 (File No. 333-224381). The 2050 Notes were issued under the Indenture. The 2050 Notes contain covenants that limit the Company's ability to incur certain liens or enter into certain sale and lease-back transactions. In addition, if we experience a specific kind of change of control, we are required to make an offer to purchase all of the notes at a purchase price of 101% of the principal amount thereof, plus accrued and unpaid interest. The Company used the net proceeds from the sale of the 2050 Notes to repay a portion of the outstanding borrowings under the Company’s revolving credit facility, as amended and restated, dated as of August 6, 2019, among the Company, certain other borrowers, the lenders referred to therein, JPMorgan Chase Bank, N.A. as administrative agent and Citibank, N.A., as syndication agent. On February 21, 2020, Whirlpool EMEA Finance S.à r.l., an indirect, wholly-owned finance subsidiary of Whirlpool Corporation, completed a bond offering consisting of €500 million (approximately $540 million at closing) in principal amount of 0.50% Senior Notes due in 2028 (the "2028 Notes") in a public offering pursuant to a registration statement on Form S-3 (File No. 333-224381). The 2028 Notes were issued under an indenture, dated February 21, 2020, among Whirlpool EMEA Finance S.à r.l, as issuer, the Company, as parent guarantor, and U.S. Bank National Association, as trustee. Whirlpool Corporation has fully and unconditionally guaranteed the Notes on a senior unsecured basis. The 2028 Notes contain covenants that limit Whirlpool Corporation's ability to incur certain liens or enter into certain sale and lease-back transactions. In addition, if we experience a specific kind of change of control, we are required to make an offer to purchase all of the 2028 Notes at a purchase price of 101% of the principal amount thereof, plus accrued and unpaid interest. Credit Facilities On August 6, 2019, Whirlpool Corporation entered into a Fourth Amended and Restated Long-Term Credit Agreement (the "Amended Long-Term Facility", or "revolving credit facility") by and among the Company, certain other borrowers, the lenders referred to therein, JPMorgan Chase Bank, N.A. as Administrative Agent, and Citibank, N.A., as Syndication Agent. The Amended Long-Term Facility provides aggregate borrowing capacity of $3.5 billion. On December 7, 2021, Whirlpool Corporation entered into Amendment No. 1 to the Fourth Amended and Restated Amended Long-Term Credit Agreement to address the cessation of EUR LIBOR and GBP LIBOR on December 31, 2021 by defining EURIBOR and SONIA as the replacement rates, respectively. The Amended Long-Term Facility has a maturity date of August 6, 2024, unless earlier terminated. The interest and fee rates payable with respect to the Amended Long-Term Facility based on our current debt rating are as follows: (1) the spread over Eurocurrency Rate is 1.125%; (2) the spread over prime is 0.125%; and (3) the unused commitment fee is 0.100%. The Amended Long-Term Facility contains customary covenants and warranties including, among other things, a debt to capitalization ratio of less than or equal to 0.65 as of the last day of each fiscal quarter, and a rolling twelve month interest coverage ratio required to be greater than or equal to 3.0 for each fiscal quarter. In addition, the covenants limit our ability to (or to permit any subsidiaries to), subject to various exceptions and limitations: (i) merge with other companies; (ii) create liens on our property; (iii) incur debt at the subsidiary level. We are in compliance with both our debt to capitalization ratio and interest coverage ratio under the revolving credit facility as of March 31, 2022. In addition to the committed $3.5 billion Amended Long-Term Facility, we have committed credit facilities in Brazil and India. These committed credit facilities provide borrowings up to approximately $224 million at March 31, 2022 and $193 million at December 31, 2021, based on exchange rates then in effect, respectively. These committed credit facilities have maturities that run through 2023. We had no borrowings outstanding under the committed credit facilities at March 31, 2022 and December 31, 2021, respectively. 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, 2022 and December 31, 2021: Millions of dollars March 31, 2022 December 31, 2021 Short-term borrowings due to banks 10 10 Total notes payable $ 10 $ 10 Transfers and Servicing of Financial Assets In an effort to manage economic and geographic trade customer risk, from time to time, the Company will transfer, primarily without recourse, accounts receivable balances of certain customers to financial institutions resulting in a nominal impact recorded in interest and sundry (income) expense. These transactions are accounted for as sales of the receivables resulting in the receivables being de-recognized from the Consolidated Condensed Balance Sheets. These transfers do not require continuing involvement from the Company. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Embraco Antitrust Matters Beginning in February 2009, our former Embraco compressor business headquartered in Brazil ("Embraco") was notified of antitrust investigations of the global compressor industry by government authorities in various jurisdictions. Embraco resolved the government investigations and related claims in various jurisdictions and certain other claims remain pending. Whirlpool agreed to retain potential liabilities related to this matter following closing of the Embraco sale transaction. We continue to defend these actions. While it is currently not possible to reasonably estimate the aggregate amount of costs which we may incur in connection with these matters, such costs could have a material adverse effect on our consolidated financial statements in any particular reporting period. BEFIEX Credits and Other Brazil Tax Matters In previous years, our Brazilian operations earned tax credits under the Brazilian government's export incentive program (BEFIEX). These credits reduced Brazilian federal excise taxes on domestic sales. Our Brazilian operations have received tax assessments for income and social contribution taxes associated with certain monetized BEFIEX credits. We do not believe BEFIEX credits are subject to income or social contribution taxes. We believe these tax assessments are without merit and are vigorously defending our positions. We have not provided for income or social contribution taxes on these BEFIEX credits, and based on the opinions of tax and legal advisors, we have not accrued any amount related to these assessments at March 31, 2022. 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 $431 million at March 31, 2022). Relying on existing Brazilian legal precedent, in 2003 and 2004, we recognized tax credits in an aggregate amount of $26 million, adjusted for currency, on the purchase of raw materials used in production ("IPI tax credits"). The Brazilian tax authority subsequently challenged the recording of IPI tax credits. No such credits have been recognized since 2004. In 2009, we entered into a Brazilian government program ("IPI Amnesty") which provided extended payment terms and reduced penalties and interest to encourage taxpayers to resolve this and certain other disputed tax credit amounts. As permitted by the program, we elected to settle certain debts through the use of other existing tax credits and recorded charges of approximately $34 million in 2009 associated with these matters. In July 2012, the Brazilian revenue authority notified us that a portion of our proposed settlement was rejected and we received tax assessments of 263 million Brazilian reais (approximately $56 million at March 31, 2022), reflecting interest and penalties to date. We believe these tax assessments are without merit and we are vigorously defending our position. The government's assessment in this case relies heavily on its arguments regarding taxability of BEFIEX credits for certain years, which we are disputing in one of the BEFIEX government assessment cases cited in the prior paragraph. Because the IPI Amnesty case is moving faster than the BEFIEX taxability case, we could be required to pay the IPI Amnesty assessment before obtaining a final decision in the BEFIEX taxability case. We have received tax assessments from the Brazilian federal tax authorities relating to amounts allegedly due regarding unemployment/social security insurance taxes (PIS/COFINS) for tax credits recognized since 2007. These credits were recognized for inputs to certain manufacturing and other business processes. These assessments are being challenged at the administrative and judicial levels in Brazil. The total amount of outstanding tax assessments received for credits recognized for PIS/COFINS inputs is approximately 311 million Brazilian reais (approximately $66 million at March 31, 2022). We believe these tax assessments are without merit and are vigorously defending our positions. Based on the opinion of our tax and legal advisors, we have not accrued any amount related to these assessments. In addition to the BEFIEX, IPI tax credit and PIS/COFINS inputs matters noted above, other assessments issued by the Brazilian tax authorities related to indirect and income tax matters, and other matters, are at various stages of review in numerous administrative and judicial proceedings. The amounts related to these assessments will continue to be increased by monetary adjustments at the Selic rate, which is the benchmark rate set by the Brazilian Central Bank. In accordance with our accounting policies, we routinely assess these matters and, when necessary, record our best estimate of a loss. We believe these tax assessments are without merit and are vigorously defending our positions. Litigation is inherently unpredictable and the conclusion of these matters may take many years to ultimately resolve. We may experience additional delays in resolving these matters as a result of COVID-19-related administrative and judicial system temporary delays and closures in Brazil. Amounts at issue in potential future litigation could increase as a result of interest and penalties in future periods. Accordingly, it is possible that an unfavorable outcome in these proceedings could have a material adverse effect on our financial statements in any particular reporting period. Competition Investigation In 2013, the French Competition Authority ("FCA") commenced an investigation of appliance manufacturers and retailers in France, including Whirlpool and Indesit. The FCA investigation was split into two parts, and in December 2018, we finalized a settlement with the FCA on the first part of the investigation. The second part of the FCA investigation, which is expected to focus primarily on manufacturer interactions with retailers, is ongoing. The Company is cooperating with this investigation. Although it is currently not possible to assess the impact, if any, that matters related to the FCA investigation may have on our financial statements, matters related to the FCA investigation could have a material adverse effect on our financial statements in any particular reporting period. Trade Customer Insolvency The Company was a former indirect minority shareholder of Alno AG, a longstanding trade customer that filed for insolvency protection in Germany. In 2020, we paid a settlement of €52.75 million (approximately $59 million at the time of payment) to resolve any potential claims the insolvency trustee might have against the Company. We are also defending third-party claims related to Alno's insolvency that we believe are without merit, and believe the ultimate resolution of these claims will not have a material adverse effect on our financial statements. Grenfell Tower On June 23, 2017, London's Metropolitan Police Service released a statement that it had identified a Hotpoint –branded refrigerator as the initial source of the Grenfell Tower fire in West London. U.K. authorities are conducting investigations, including regarding the cause and spread of the fire. The model in question was manufactured by Indesit Company between 2006 and 2009, prior to Whirlpool's acquisition of Indesit in 2014. We are fully cooperating with the investigating authorities. Whirlpool was named as a defendant in a product liability suit in Pennsylvania federal court related to this matter. The federal court dismissed the case with prejudice in September 2020. The dismissal is being appealed. In December 2020, lawsuits related to Grenfell Tower were filed in the U.K. against approximately 20 defendants, including Whirlpool Corporation and certain Whirlpool subsidiaries. Given the preliminary stage of the proceedings, we cannot speculate on their eventual outcomes or potential impact on our financial statements; accordingly, we have not recorded any significant charges as of March 31, 2022. Additional claims may be filed related to this incident. Other Litigation See Note 13 for information on certain U.S. income tax litigation. In addition, we are currently defending against two lawsuits that have been certified for treatment as class actions in U.S. federal court, relating to two top-load washing machine models. In December 2019, the court in one of these lawsuits entered summary judgment in Whirlpool's favor. That ruling remains subject to appeal, and the other lawsuit is ongoing. We believe the lawsuits are without merit and are vigorously defending them. Given the preliminary stage of the proceedings, we cannot reasonably estimate a range of loss, if any, at this time. The resolution of these matters could have a material adverse effect on our financial statements in any particular reporting period. We are currently vigorously defending a number of other lawsuits related to the manufacture and sale of our products which include class action allegations, and may become involved in similar actions. These lawsuits allege claims which include negligence, breach of contract, breach of warranty, product liability and safety claims, false advertising, fraud, and violation of federal and state regulations, including consumer protection laws. In general, we do not have insurance coverage for class action lawsuits. We are also involved in various other legal actions arising in the normal course of business, for which insurance coverage may or may not be available depending on the nature of the action. We dispute the merits of these suits and actions, and intend to vigorously defend them. Management believes, based upon its current knowledge, after taking into consideration legal counsel's evaluation of such suits and actions, and after taking into account current litigation accruals, that the outcome of these matters currently pending against Whirlpool should not have a material adverse effect, if any, on our financial statements. We may experience additional delays in resolving these and other pending litigation matters as a result of COVID-19-related temporary court 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 2022 2021 Balance at January 1 $ 286 $ 273 Issuances/accruals during the period 71 114 Settlements made during the period/other (79) (86) Balance at March 31 $ 278 $ 301 Current portion $ 187 $ 207 Non-current portion 91 94 Total $ 278 $ 301 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. During the fourth quarters of 2021 and 2020, the Company released accruals of approximately $9 million and $30 million, respectively, related to this campaign. These adjustments were made based on the latest available data including take rate assumptions and unit population. These estimates are based on several assumptions which are inherently unpredictable and which we may need to materially revise in the future. Settlements related to this product recall are immaterial for the three months ended March 31, 2022. The total settlements since the beginning of this campaign are approximately $62 million. For the year 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. No additional material product warranty expense has been incurred subsequent to 2019. We continue to voluntarily cooperate with the UK regulator with respect to the washer and dryer actions. Guarantees We have guarantee arrangements in a Brazilian subsidiary. For certain creditworthy customers, the subsidiary guarantees customer lines of credit at commercial banks to support purchases following its normal credit policies. If a customer were to default on its line of credit with the bank, our subsidiary would be required to assume the line of credit and satisfy the obligation with the bank. At March 31, 2022 and December 31, 2021, the guaranteed amounts totaled 1.2 billion Brazilian reais (approximately $246 million at March 31, 2022) and 1.2 billion Brazilian reais (approximately $212 million at December 31, 2021), respectively. The fair value of these guarantees were nominal at March 31, 2022 and December 31, 2021. Our subsidiary insures against a significant portion of this credit risk for these guarantees, under normal operating conditions, through policies purchased from high-quality underwriters. We provide guarantees of indebtedness and lines of credit for various consolidated subsidiaries. The maximum contractual amount of indebtedness and lines of credit available under these lines for consolidated subsidiaries totaled approximately $3.2 billion at March 31, 2022 and $3.3 billion at December 31, 2021, respectively. Our total short-term outstanding bank indebtedness under guarantees was nominal at both March 31, 2022 and December 31, 2021. |
PENSION AND OTHER POSTRETIREMEN
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS | 3 Months Ended |
Mar. 31, 2022 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [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 2022 2021 2022 2021 2022 2021 Service cost $ 1 $ 1 $ 1 $ 1 $ — $ — Interest cost 20 19 4 4 2 1 Expected return on plan assets $ (36) $ (39) $ (9) $ (9) $ — $ — Amortization: Actuarial loss $ 15 $ 17 $ 3 $ 5 $ — $ — Prior service credit — — — — (12) (11) Settlement and curtailment (gain) loss — — 1 — — — Net periodic benefit cost (credit) $ — $ (2) $ — $ 1 $ (10) $ (10) 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 2022 2021 2022 2021 2022 2021 Operating profit (loss) $ 1 $ 1 $ 1 $ 1 $ — $ — Interest and sundry (income) expense (1) (3) (1) — (10) (10) Net periodic benefit cost $ — $ (2) $ — $ 1 $ (10) $ (10) |
HEDGES AND DERIVATIVE FINANCIAL
HEDGES AND DERIVATIVE FINANCIAL INSTRUMENTS | 3 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
HEDGES AND DERIVATIVE FINANCIAL INSTRUMENTS | HEDGES AND DERIVATIVE FINANCIAL INSTRUMENTS Derivative instruments are accounted for at fair value based on market rates. Derivatives where we elect hedge accounting are designated as either cash flow, fair value or net investment hedges. Derivatives that are not accounted for based on hedge accounting are marked to market through earnings. If the designated cash flow hedges are highly effective, the gains and losses are recorded in other comprehensive income (loss) and subsequently reclassified to earnings to offset the impact of the hedged items when they occur. In the event it becomes probable the forecasted transaction to which a cash flow hedge relates will not occur, the derivative would be terminated and the amount in accumulated other comprehensive income (loss) would be recognized in earnings. The fair value of the hedge asset or liability is presented in either other current assets / liabilities or other noncurrent assets / liabilities on the Consolidated Condensed Balance Sheets and in other within cash provided by (used in) operating activities in the Consolidated Condensed Statements of Cash Flows. Using derivative instruments means assuming counterparty credit risk. Counterparty credit risk relates to the loss we could incur if a counterparty were to default on a derivative contract. We generally deal with investment grade counterparties and monitor the overall credit risk and exposure to individual counterparties. We do not anticipate nonperformance by any counterparties. The amount of counterparty credit exposure is limited to the unrealized gains, if any, on such derivative contracts. We do not require nor do we post collateral on such contracts. Hedging Strategy In the normal course of business, we manage risks relating to our ongoing business operations including those arising from changes in commodity prices, foreign exchange rates and interest rates. Fluctuations in these rates and prices can affect our operating results and financial condition. We use a variety of strategies, including the use of derivative instruments, to manage these risks. We do not enter into derivative financial instruments for trading or speculative purposes. Commodity Price Risk We enter into commodity derivative contracts on various commodities to manage the price risk associated with forecasted purchases and sales of material used in our manufacturing process. The objective of these hedges is to reduce the variability of cash flows associated with the forecasted purchases and sales of commodities. Foreign Currency and Interest Rate Risk We incur expenses associated with the procurement and production of products in a limited number of countries, while we sell in the local currencies of a large number of countries. Our primary foreign currency exchange exposures result from cross-currency sales of products. As a result, we enter into foreign exchange contracts to hedge certain firm commitments and forecasted transactions to acquire products and services that are denominated in foreign currencies. We enter into certain undesignated non-functional currency asset and liability hedges that relate primarily to short-term payables, receivables, intercompany loans and dividends. When we hedge a foreign currency denominated payable or receivable with a derivative, the effect of changes in the foreign exchange rates are reflected currently in interest and sundry (income) expense for both the payable/receivable and the derivative. Therefore, as a result of the economic hedge, we do not elect hedge accounting. We also enter into hedges to mitigate currency risk primarily related to forecasted foreign currency denominated expenditures, intercompany financing agreements and royalty agreements and designate them as cash flow hedges. Gains and losses on derivatives designated as cash flow hedges, to the extent they are included in the assessment of effectiveness, are recorded in other comprehensive income (loss) and subsequently reclassified to earnings to offset the impact of the hedged items when they occur. We may enter into cross-currency interest rate swaps to manage our exposure relating to cross-currency debt. The notional amount of outstanding cross-currency interest rate swap agreements was $1,275 million at March 31, 2022 and December 31, 2021, respectively. We may enter into interest rate swap agreements to manage interest rate risk exposure. Our interest rate swap agreements, if any, effectively modify our exposure to interest rate risk, primarily through converting certain floating rate debt to a fixed rate basis, or certain fixed rate debt to a floating rate basis. These agreements involve either the receipt or payment of floating rate amounts in exchange for fixed rate interest payments or receipts, respectively, over the life of the agreements without an exchange of the underlying principal amounts. We may enter into swap rate lock agreements to effectively reduce our exposure to interest rate risk by locking in interest rates on probable long-term debt issuances. Outstanding notional amounts of interest rate swap agreements were $300 million at March 31, 2022 and December 31, 2021, respectively. 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, 2022 and December 31, 2021: Notional (Local) Notional (USD) Current Maturity Instrument 2022 2021 2022 2021 Foreign exchange forwards/options MXN 7,200 MXN 7,200 $ 362 $ 352 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, 2022 and December 31, 2021, there was no ineffectiveness on hedges designated as net investment hedges. The following table summarizes our outstanding derivative contracts and their effects in our Consolidated Condensed Balance Sheets at March 31, 2022 and December 31, 2021: Fair Value of Notional Amount Hedge Assets Hedge Liabilities Maximum Term (Months) Millions of dollars 2022 2021 2022 2021 2022 2021 2022 2021 Derivatives accounted for as hedges (1) Commodity swaps/options $ 383 $ 297 $ 67 $ 40 $ 18 $ 13 (CF) 21 21 Foreign exchange forwards/options 2,994 2,872 100 91 143 64 (CF/NI) 119 122 Cross-currency swaps 1,275 1,275 28 31 3 7 (CF) 83 86 Interest rate derivatives 300 300 9 — — 14 (CF) 38 41 Total derivatives accounted for as hedges $ 204 $ 162 $ 164 $ 98 Derivatives not accounted for as hedges Commodity swaps/options $ 1 $ 2 $ — $ — $ — $ — N/A 11 14 Foreign exchange forwards/options 2,552 2,240 31 20 30 18 N/A 9 12 Total derivatives not accounted for as hedges 31 20 30 18 Total derivatives $ 235 $ 182 $ 194 $ 116 Current $ 215 $ 170 $ 175 $ 93 Noncurrent 20 12 19 23 Total derivatives $ 235 $ 182 $ 194 $ 116 (1) Derivatives accounted for as hedges are considered either cash flow (CF) or net investment (NI) hedges. The following tables summarize the effects of derivative instruments on our Consolidated Condensed Statements of Comprehensive Income for the periods presented: Three Months Ended March 31, Gain (Loss) (2) Millions of dollars 2022 2021 Cash flow hedges Commodity swaps/options $ 39 $ 26 Foreign exchange (43) 48 Cross-currency swaps 8 32 Interest rate derivatives 23 46 Net investment hedges Foreign currency (16) 7 $ 11 $ 159 Three Months Ended March 31, Location of Gain (Loss) Reclassified from Gain (Loss) Reclassified from OCI into Earnings (Effective Portion) (3) Cash Flow Hedges - Millions of dollars 2022 2021 Commodity swaps/options Cost of products sold $ 18 $ 12 Foreign exchange forwards/options Net sales — 2 Foreign exchange forwards/options Cost of products sold (5) 9 Foreign exchange forwards/options Interest and sundry (income) expense 29 44 Cross-currency swaps Interest and sundry (income) expense 41 59 $ 83 $ 126 Three Months Ended March 31, Location of Gain (Loss) Recognized on Derivatives not Gain (Loss) Recognized on Derivatives not Derivatives not Accounted for as Hedges - Millions of dollars 2022 2021 Foreign exchange forwards/options Interest and sundry (income) expense $ (16) $ 79 (2) Change in gain (loss) recognized in OCI (effective portion) for the three months ended March 31, 2022 is primarily driven by fluctuations in currency and commodity prices and interest rates compared to prior year. The tax impact of the cash flow hedges was $19 million and $(12) million for the three months ended March 31, 2022 and 2021, respectively. The tax impact of the net investment hedges was $3 million and $(2) million for the three months ended March 31, 2022 and 2021, respectively. (3) Change in gain (loss) reclassified from OCI into earnings (effective portion) for the three months ended March 31, 2022 was primarily driven by fluctuations in currency and commodity prices and interest rates compared to prior year. For cash flow hedges, the amount of ineffectiveness recognized in interest and sundry (income) expense was nominal for the periods ended March 31, 2022, and 2021. There were no hedges designated as fair value for the periods ended March 31, 2022, and 2021. The net amount of unrealized gain or loss on derivative instruments included in accumulated OCI related to contracts maturing and expected to be realized during the next twelve months is a loss of $5 million at March 31, 2022. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 31, 2022 | |
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, 2022 and December 31, 2021: Fair Value Millions of dollars Total Cost Basis Level 1 Level 2 Total Measured at fair value on a recurring basis: 2022 2021 2022 2021 2022 2021 2022 2021 Short-term investments (1) $ 1,339 $ 1,905 $ 1,008 $ 1,697 $ 331 $ 208 $ 1,339 $ 1,905 Net derivative contracts — — — — 41 66 41 66 (1) Short-term investments are primarily comprised of money market funds and highly liquid, low risk investments with initial maturities less than 90 days. Other Fair Value Measurements The fair value of long-term debt (including current maturities) was $5.25 billion and $5.76 billion at March 31, 2022 and December 31, 2021, 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, 2022 | |
Stockholders' Equity Note [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS' EQUITY The following table summarizes the changes in stockholders' equity for the periods presented: Whirlpool Stockholders' Equity Total Retained Accumulated Other Comprehensive Income (Loss) Treasury Stock / Additional Paid-In-Capital Common Non-Controlling Interest Balances, December 31, 2021 $ 5,013 $ 10,170 $ (2,357) $ (3,081) $ 114 $ 167 Comprehensive income Net earnings 316 313 — — 3 Other comprehensive income 58 — 58 — — — Comprehensive income 374 313 58 — — 3 Stock issued (repurchased) (539) — — (539) — — Dividends declared (103) (103) — — — — Balances, March 31, 2022 4,745 10,380 (2,299) (3,620) 114 170 Whirlpool Stockholders' Equity Total Retained Accumulated Other Comprehensive Income (Loss) Treasury Stock / Additional Paid-In-Capital Common Non-Controlling Interest Balances, December 31, 2020 $ 4,795 $ 8,725 $ (2,811) $ (2,142) $ 113 $ 910 Comprehensive income Net earnings 440 433 — — — 7 Other comprehensive income 124 — 124 — — — Comprehensive income 564 433 124 — — 7 Stock issued (repurchased) (141) — — (141) — — Dividends declared (79) (79) — — — — Balances, March 31, 2021 $ 5,139 $ 9,079 $ (2,687) $ (2,283) $ 113 $ 917 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, 2022 2021 Millions of dollars Pre-tax Tax Effect Net Pre-tax Tax Effect Net Currency translation adjustments (2) $ 105 3 $ 108 $ 104 (2) $ 102 Cash flow hedges (56) 19 (37) 26 (12) 14 Pension and other postretirement benefits plans (15) 2 (13) 10 (2) 8 Other comprehensive income (loss) 34 24 58 140 (16) 124 Less: Other comprehensive income (loss) available to noncontrolling interests — — — — — — Other comprehensive income (loss) available to Whirlpool $ 34 $ 24 $ 58 $ 140 $ (16) $ 124 (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, 2022: Three Months Ended March 31, 2022 Millions of dollars (Gain) Loss Reclassified Classification in Earnings Pension and postretirement benefits, pre-tax $ 5 Interest and sundry (income) expense Total $ 5 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 2022 2021 Numerator for basic and diluted earnings per share - Net earnings (loss) available to Whirlpool $ 313 $ 433 Denominator for basic earnings per share - weighted-average shares 58.3 63.0 Effect of dilutive securities - share-based compensation 0.4 0.6 Denominator for diluted earnings per share - adjusted weighted-average shares 58.7 63.6 Anti-dilutive stock options/awards excluded from earnings per share 0.3 0.3 Share Repurchase Program On April 19, 2021, our Board of Directors authorized a share repurchase program of up to $2 billion, which has no expiration date. On February 14, 2022, the Board of Directors authorized an additional $2 billion in share repurchases under the Company's ongoing share repurchase program. During the three months ended March 31, 2022, we repurchased approximately 2.7 million shares under these share repurchase programs at an aggregate price of approximately $533 million. At March 31, 2022, there were approximately $2.9 billion in remaining funds authorized under this program. |
RESTRUCTURING CHARGES
RESTRUCTURING CHARGES | 3 Months Ended |
Mar. 31, 2022 | |
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 2020, the Company committed to workforce reduction plans in the United States and globally, as part of the Company's continued cost reduction efforts. The workforce reduction plans included a voluntary retirement program, and other voluntary and involuntary severance actions. These actions are substantially complete. The Company has incurred $204 million in employee termination costs related to these actions through March 31, 2022. Cash settlement of $183 million has been paid to date with the remaining cash settlement of $26 million expected to be paid over the duration of 2022 and 2023. In addition, we ceased production in our Naples, Italy manufacturing plant and exited the facility in 2020. The collective dismissal procedure was completed in 2021. In connection with this action, we have incurred approximately $143 million total costs comprising $43 million in asset impairment costs, $25 million in other associated costs and $75 million in employee-related costs through March 31, 2022. Cash settlement of $96 million has been paid to date with the remaining nominal cash settlement to be paid in 2022. The following table summarizes the changes to our restructuring liability during the three months ended March 31, 2022: Millions of dollars December 31, 2021 Charges to Earnings Cash Paid Non-Cash and Other March 31, 2022 Employee termination costs $ 53 3 $ (12) $ — $ 44 Asset impairment costs 8 — — — 8 Facility exit costs — 2 — (2) — Other exit costs (4) — — — (4) Total $ 57 $ 5 $ (12) $ (2) $ 48 The following table summarizes the restructuring charges by operating segment for the periods presented: Three Months Ended March 31, Millions of dollars 2022 2021 North America $ — $ — EMEA 5 17 Latin America — — Asia — 1 Corporate / Other — 2 Total $ 5 $ 20 |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income tax expense was $106 million for the three months ended March 31, 2022, compared to income tax expense of $159 million in the same period of 2021. For the three months ended March 31, 2022, the decrease in income tax expense from the prior period is primarily due to overall lower level of earnings. 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 2022 2021 Earnings before income taxes $ 427 $ 599 Income tax expense computed at United States statutory tax rate 90 126 Valuation allowances 7 3 U.S. foreign income items, net of credits (8) 7 Other 17 23 Income tax expense (benefit) computed at effective worldwide tax rates $ 106 $ 159 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. Other Income Tax Matters During its examination of Whirlpool’s 2009 U.S. federal income tax return, the IRS asserted that income earned by a Luxembourg subsidiary via its Mexican branch should be recognized as income on its 2009 U.S. federal income tax return. The Company believed the proposed assessment was without merit and contested the matter in United States Tax Court (US Tax Court). Both Whirlpool and the IRS moved for partial summary judgment on this issue. On May 5, 2020, the US Tax Court granted the IRS’s motion for partial summary judgment and denied Whirlpool’s. The Company appealed the US Tax Court decision to the United States Court of Appeals for the Sixth Circuit, and, on December 6, 2021, the three-judge panel, in a divided decision, affirmed the U.S. Tax Court decision (the "Ruling"). The Company recorded a reserve of $98 million in the fourth quarter of 2021, which represents the expected increase in the Company’s net income tax expense, plus interest, for 2009 through 2019, which represents all of the Company’s tax years that were affected by the Ruling. On January 20, 2022, the Company filed a petition for rehearing with the Sixth Circuit, which was denied on March 2, 2022. The Company is evaluating its legal options going forward. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION Our reportable segments are based upon geographical region and are defined as North America, EMEA, Latin America and Asia. These regions also represent our operating segments. Each segment manufactures home appliances and related components, but serves strategically different marketplaces. The chief operating decision maker, who is the Company's Chairman and Chief Executive Officer, evaluates performance based on each segment's earnings (loss) before interest and taxes (EBIT), which we define as operating profit less interest and sundry (income) expense and excluding restructuring costs, asset impairment charges and certain other items that management believes are not indicative of the region's ongoing performance, if any. Total assets by segment are those assets directly associated with the respective operating activities. The "Other/Eliminations" column primarily includes corporate expenses, assets and eliminations, as well as restructuring costs, asset impairment charges and certain other items that management believes are not indicative of the region's ongoing performance, if any. Intersegment sales are eliminated within each region. The tables below summarize performance by operating segment for the periods presented: Three Months Ended March 31, OPERATING SEGMENTS North EMEA Latin Asia Other / Eliminations Total Net sales 2022 $ 2,791 $ 1,084 $ 760 $ 285 $ — $ 4,920 2021 3,044 1,171 732 411 — 5,358 Intersegment sales 2022 $ 72 $ 24 $ 360 $ 11 $ (467) $ — 2021 79 24 310 111 (524) — Depreciation and amortization 2022 $ 43 $ 35 $ 16 $ 5 $ 13 $ 112 2021 46 46 15 13 21 141 EBIT 2022 $ 454 $ (27) $ 54 $ 14 $ (32) $ 463 2021 607 21 62 21 (67) 644 Total assets March 31, 2022 $ 8,071 $ 9,807 $ 4,851 $ 1,579 $ (4,821) $ 19,487 December 31, 2021 7,980 10,210 4,716 1,565 (4,186) 20,285 Capital expenditures 2022 $ 30 $ 12 $ 23 $ 6 $ 16 $ 87 2021 31 17 15 3 7 73 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 2022 2021 Items not allocated to segments: Restructuring costs $ (5) $ (20) Corporate expenses and other (27) (47) Total other/eliminations $ (32) $ (67) 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 2022 2021 Operating profit $ 461 $ 618 Interest and sundry (income) expense (7) (26) Equity method investment income (loss), net of tax (5) — Total EBIT $ 463 $ 644 Interest expense 41 45 Income tax expense 106 159 Net earnings (loss) $ 316 $ 440 Less: Net earnings available to noncontrolling interests 3 7 Net earnings (loss) available to Whirlpool $ 313 $ 433 |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
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, 2021. Management believes that the accompanying Consolidated Condensed Financial Statements reflect all adjustments, including normal recurring items, considered necessary for a fair presentation of the interim periods. |
Use of Estimates | We are required to make estimates and assumptions that affect the amounts reported in the Consolidated Condensed Financial Statements and accompanying Notes. Actual results could differ materially from those estimates. Certain prior year amounts in the Consolidated Condensed Financial Statements have been reclassified to conform with current year presentation. |
Consolidation | We have eliminated all material intercompany transactions in our Consolidated Condensed Financial Statements. We do not consolidate the financial statements of any company in which we have an ownership interest of 50% or less, unless that company is deemed to be a variable interest entity ("VIE") of which we are the primary beneficiary. VIEs are consolidated when the company is the primary beneficiary of these entities and has the ability to directly impact the activ i ties of these entities. |
Risks and Uncertainties | Risks and Uncertainties During the first quarter of 2022, Russia commenced a military invasion of Ukraine, and the ensuing conflict has created disruption in the EMEA region and around the world. While we experienced some of this disruption during the quarter, the duration and severity of the effects on our business and the global economy are inherently unpredictable. We temporarily suspended operations in Ukraine after the invasion. We have recently resumed some of our sales and distribution operations in Ukraine. We currently have limited production in Russia, primarily to provide essential goods. We currently employ approximately 45 individuals in Ukraine and 2,500 individuals in Russia, primarily in our Lipetsk, Russia manufacturing facility. Ukraine revenues and net assets are not material to our EMEA operating segment and consolidated results. The net sales attributed to our operations in Russia are approximately 6% of the net sales of the EMEA operating segment for the three months ended March 31, 2022 and 7% for the three months ended March 31, 2021, respectively. The net assets of Russia are approximately $209 million as of March 31, 2022 and $212 million as of December 31, 2021, respectively. We continue to closely monitor the ongoing conflict and related sanctions, which could materially impact our financial results in the future. Furthermore, COVID-19 continues to impact countries across the world, and the duration and severity of the effects are currently unknown. The pandemic has impacted the Company and could materially impact our financial results in the future. The Consolidated Condensed Financial Statements presented herein reflect estimates and assumptions made by management at March 31, 2022. These 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 April 26, 2022, including those resulting from the impacts of COVID-19 as well as the ongoing conflict in Ukraine, will be reflected in management’s estimates for future periods. |
Goodwill and indefinite-lived intangible assets | Goodwill and indefinite-lived intangible assets We continue to monitor the significant global economic uncertainty to assess the outlook for demand for our products and the impact on our business and our overall financial performance. While goodwill in the EMEA reporting unit and Hotpoint* and Indesit trademarks are not presently at risk, considering the ongoing conflict in Ukraine and related sanctions, we continue to monitor events or circumstances that would more likely than not reduce the fair values of a reporting unit or intangible assets below their carrying amounts. The Maytag trademark continues to be at risk at March 31, 2022. The potential impact of demand disruptions, production impacts or supply constraints along with a number of other factors could negatively effect revenues for the Maytag trademark, but we remain committed to the strategic actions necessary to realize the long-term forecasted profitability and recover from the supply constraints. A lack of recovery or further deterioration in market conditions, a sustained trend of weaker than expected financial performance in our Maytag trademark, among other factors, as a result of the COVID-19 pandemic, other macroeconomic factors or other unforeseen events could result in an impairment charge in future periods which could have a material adverse effect on our financial statements. 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 2022. The goodwill in any of our other reporting units or indefinite-lived intangible assets are not presently 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. Potential changing and volatile macro-economic conditions could cause fluctuations in forecasted earnings before income taxes. As such, the Company's effective tax rate could be subject to volatility as forecasted earnings before income taxes are impacted by events which cannot be predicted. In addition, potential future economic deterioration brought on by the pandemic, ongoing conflict in Ukraine and related sanctions or other factors may negatively impact the realizability of certain deferred tax assets. |
Synthetic lease arrangements and Sale-leaseback transactions | Synthetic lease arrangements We have a number of synthetic lease arrangements with financial institutions for non-core properties. The leases contain provisions for options to purchase, extend the original term for additional periods or return the property. As of March 31, 2022 and December 31, 2021, these arrangements include residual value guarantees of up to approximately $263 million and $264 million, respectively, that could potentially come due in future periods. We do not believe it is probable that any material amounts will be owed under these guarantees. Therefore, no material amounts related to the residual value guarantees are included in the lease payments used to measure the right-of-use assets and lease liabilities. The majority of these leases are classified as operating leases. We have assessed the reasonable certainty of these provisions to determine the appropriate lease term. The leases were measured using our incremental borrowing rate and are included in our right of use assets and lease liabilities in the Consolidated Condensed Balance Sheets. Rental payments are calculated at the applicable reference rate plus a margin. The impact to the Consolidated Condensed Balance Sheets and Consolidated Condensed Statements of Comprehensive Income (Loss) is nominal. Sale-leaseback transaction In the first quarter of 2022, the Company sold and leased back a group of non-core properties for net proceeds of approximately $52 million. The initial total annual rent for the properties is approximately $2 million per year over an initial 15 year lease term and is subject to annual rent increases. Under the terms of the lease agreement, the Company is responsible for all taxes, insurance and utilities and is required to adequately maintain the properties for the lease term. The Company has two sequential 5-year renewal options. * . Whirlpool ownership of the Hotpoint brand in the EMEA and Asia Pacific regions is not affiliated with the Hotpoint brand sold in the Americas. |
Supply Chain Financing Arrangements | Supply Chain Financing Arrangements The Company has ongoing agreements globally with various third-parties to allow certain suppliers the opportunity to sell receivables due from us to participating financial institutions at the sole discretion of both the suppliers and the financial institutions. We have no economic interest in the sale of these receivables and no direct financial relationship with the financial institutions concerning these services. Our obligations to suppliers, including amounts due and scheduled payment terms, are not impacted. All outstanding balances under these programs are recorded in accounts payable on our Consolidated Condensed Balance Sheets. As of March 31, 2022 and December 31, 2021, approximately $1.4 billion have been issued to participating financial institutions. A downgrade in our credit rating or changes in the financial markets could limit the financial institutions’ willingness to commit funds to, and participate in, the programs. We do not believe such risk would have a material impact on our working capital or cash flows. |
Equity Method Investments | Equity Method Investments Whirlpool holds an equity interest of 20% in Whirlpool (China) Co., Ltd. (Whirlpool China) an entity which was previously controlled by the Company. We made purchases from Whirlpool China of $102 million for the three months ended March 31, 2022. The outstanding amount due to Whirlpool China and its subsidiaries is $100 million as of March 31, 2022 and $137 million as of December 31, 2021, respectively. The carrying value of the equity interest in Whirlpool China is $201 million as of March 31, 2022 and $206 million as of December 31, 2021, respectively, and is included in Other noncurrent assets in the Consolidated Condensed Balance Sheet. The licensing revenue and outstanding accounts receivable from Whirlpool China and its subsidiaries are not material for the periods presented. Related Party Transactions After September 2021, the Company has a controlling equity ownership of 87% in Elica PB India which is consolidated in Whirlpool Corporation's financial statements and is reported within our Asia reportable segment. Goodwill of $100 million, which is not deductible for tax purposes, arose from this transaction and is allocated to the Asia reportable segment. Elica PB India is a VIE for which the Company is the primary beneficiary. The carrying amount of customer relationships, which are included in Other intangible assets, net of accumulated amortization, amounts to $35 million as of March 31, 2022 and $36 million as of December 31, 2021, respectively. Other assets or liabilities of Elica PB India are not material to the Consolidated Condensed Financial Statements of the Company for the periods presented. Both Whirlpool India and the non-controlling interest shareholders retain an option for Whirlpool India to purchase the remaining equity interest in Elica PB India for fair value, which could be material to the financial statements of the Company, depending on the performance of the business. |
Adoption of New Accounting Standards | Adoption of New Accounting Standards We adopted the following standard for the year ending December 31, 2022 which is not expected to have a material impact on our annual Consolidated Financial Statements: Standard Effective Date 2021-10 Government Assistance (Topic 832) - Disclosures by Business Entities about January 1, 2022 All other newly issued and effective accounting standards during 2022 were not relevant or material to the Company. Accounting Pronouncements Issued But Not Yet Effective In March 2020, the FASB issued Update 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting". The amendments in Update 2020-04 are elective and apply to all entities that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform. The new guidance provides the following optional expedients: simplify accounting analyses under current U.S. GAAP for contract modifications, simplify the assessment of hedge effectiveness, allow hedging relationships affected by reference rate reform to continue and allow a one-time election to sell or transfer debt securities classified as held to maturity that reference a rate affected by reference rate reform. In January 2021, the FASB issued Update 2021-01, "Reference Rate Reform (Topic 848): Scope". The update provides additional optional guidance on the transition from LIBOR to include derivative instruments that use an interest rate for margining, discounting or contract price alignment. The standard will ease, if warranted, the requirements for accounting for the future effects of the rate reform. An entity may elect to apply the amendments prospectively through December 31, 2022. The standard is not expected to have a material impact on our Consolidated Financial Statements. All other issued and not yet effective accounting standards are not relevant or material to the Company. |
Derivatives | Hedging Strategy In the normal course of business, we manage risks relating to our ongoing business operations including those arising from changes in commodity prices, foreign exchange rates and interest rates. Fluctuations in these rates and prices can affect our operating results and financial condition. We use a variety of strategies, including the use of derivative instruments, to manage these risks. We do not enter into derivative financial instruments for trading or speculative purposes. Commodity Price Risk We enter into commodity derivative contracts on various commodities to manage the price risk associated with forecasted purchases and sales of material used in our manufacturing process. The objective of these hedges is to reduce the variability of cash flows associated with the forecasted purchases and sales of commodities. Foreign Currency and Interest Rate Risk We incur expenses associated with the procurement and production of products in a limited number of countries, while we sell in the local currencies of a large number of countries. Our primary foreign currency exchange exposures result from cross-currency sales of products. As a result, we enter into foreign exchange contracts to hedge certain firm commitments and forecasted transactions to acquire products and services that are denominated in foreign currencies. We enter into certain undesignated non-functional currency asset and liability hedges that relate primarily to short-term payables, receivables, intercompany loans and dividends. When we hedge a foreign currency denominated payable or receivable with a derivative, the effect of changes in the foreign exchange rates are reflected currently in interest and sundry (income) expense for both the payable/receivable and the derivative. Therefore, as a result of the economic hedge, we do not elect hedge accounting. We also enter into hedges to mitigate currency risk primarily related to forecasted foreign currency denominated expenditures, intercompany financing agreements and royalty agreements and designate them as cash flow hedges. Gains and losses on derivatives designated as cash flow hedges, to the extent they are included in the assessment of effectiveness, are recorded in other comprehensive income (loss) and subsequently reclassified to earnings to offset the impact of the hedged items when they occur. We may enter into cross-currency interest rate swaps to manage our exposure relating to cross-currency debt. The notional amount of outstanding cross-currency interest rate swap agreements was $1,275 million at March 31, 2022 and December 31, 2021, respectively. |
Fair Value of Financial Instruments | Fair value is measured based on an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions market participants would use in pricing an asset or liability. Assets and liabilities measured at fair value are based on a market valuation approach using prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. As a basis for considering such assumptions, a three-tiered fair value hierarchy is established, which prioritizes the inputs used in measuring fair value as follows: (Level 1) observable inputs such as quoted prices in active markets; (Level 2) inputs, other than the quoted prices in active markets that are observable, either directly or indirectly; and (Level 3) unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. |
Segment Information | Our reportable segments are based upon geographical region and are defined as North America, EMEA, Latin America and Asia. These regions also represent our operating segments. Each segment manufactures home appliances and related components, but serves strategically different marketplaces. The chief operating decision maker, who is the Company's Chairman and Chief Executive Officer, evaluates performance based on each segment's earnings (loss) before interest and taxes (EBIT), which we define as operating profit less interest and sundry (income) expense and excluding restructuring costs, asset impairment charges and certain other items that management believes are not indicative of the region's ongoing performance, if any. Total assets by segment are those assets directly associated with the respective operating activities. The "Other/Eliminations" column primarily includes corporate expenses, assets and eliminations, as well as restructuring costs, asset impairment charges and certain other items that management believes are not indicative of the region's ongoing performance, if any. Intersegment sales are eliminated within each region. |
BASIS OF PRESENTATION (Tables)
BASIS OF PRESENTATION (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | We adopted the following standard for the year ending December 31, 2022 which is not expected to have a material impact on our annual Consolidated Financial Statements: Standard Effective Date 2021-10 Government Assistance (Topic 832) - Disclosures by Business Entities about January 1, 2022 |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of 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 2022 2021 Major product categories: Laundry $ 1,333 $ 1,569 Refrigeration 1,528 1,627 Cooking 1,281 1,247 Dishwashing 450 515 Total major product category net sales $ 4,592 $ 4,958 Spare parts and warranties 234 266 Other 94 134 Total net sales $ 4,920 $ 5,358 |
Schedule of Allowance for Doubtful Financing Receivables | The following table summarizes our allowance for expected credit losses and bad debt by operating segment for the three months ended March 31, 2022: Millions of dollars December 31, 2021 Charged to Earnings Write-offs Foreign Currency March 31, 2022 Accounts receivable allowance North America $ 7 $ — (2) — $ 5 EMEA 45 $ 7 $ — $ (2) $ 50 Latin America 43 — (2) 1 $ 42 Asia 3 $ — $ — $ 3 Consolidated $ 98 $ 7 $ (4) $ (1) $ 100 Financing receivable allowance Latin America $ 25 $ — $ — $ 5 $ 30 $ 25 $ — $ — $ 5 $ 30 Consolidated $ 123 $ 7 $ (4) $ 4 $ 130 |
CASH, CASH EQUIVALENTS AND RE_2
CASH, CASH EQUIVALENTS AND RESTRICTED CASH (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Cash and Cash Equivalents [Abstract] | |
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 2022 2021 Cash and cash equivalents as presented in our Consolidated Condensed Balance Sheets $ 2,114 $ 2,447 Cash included in assets held for sale (1) — 317 Cash, cash equivalents and restricted cash as presented in our Consolidated Condensed Statements of Cash Flows $ 2,114 $ 2,764 December 31, Millions of dollars 2021 2020 Cash and cash equivalents as presented in our Consolidated Balance Sheets $ 3,044 $ 2,924 Restricted cash included in prepaid and other current assets — 10 Cash, cash equivalents and restricted cash as presented in our Consolidated Statements of Cash Flows $ 3,044 $ 2,934 (1) Cash included in assets held for sale represents cash held in Whirlpool China in the first quarter of 2021. |
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 2022 2021 Cash and cash equivalents as presented in our Consolidated Condensed Balance Sheets $ 2,114 $ 2,447 Cash included in assets held for sale (1) — 317 Cash, cash equivalents and restricted cash as presented in our Consolidated Condensed Statements of Cash Flows $ 2,114 $ 2,764 December 31, Millions of dollars 2021 2020 Cash and cash equivalents as presented in our Consolidated Balance Sheets $ 3,044 $ 2,924 Restricted cash included in prepaid and other current assets — 10 Cash, cash equivalents and restricted cash as presented in our Consolidated Statements of Cash Flows $ 3,044 $ 2,934 (1) Cash included in assets held for sale represents cash held in Whirlpool China in the first quarter of 2021. |
INVENTORIES (Tables)
INVENTORIES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Inventory, Net [Abstract] | |
Schedule of Inventory | The following table summarizes our inventories at March 31, 2022 and December 31, 2021: Millions of dollars March 31, 2022 December 31, 2021 Finished products $ 2,358 $ 1,958 Raw materials and work in process 778 759 Total Inventories $ 3,136 $ 2,717 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property, Plant and Equipment | The following table summarizes our property, plant and equipment at March 31, 2022 and December 31, 2021: Millions of dollars March 31, 2022 December 31, 2021 Land $ 73 $ 84 Buildings 1,240 1,249 Machinery and equipment 8,147 8,091 Accumulated depreciation (6,696) (6,619) Property, plant and equipment, net $ 2,764 $ 2,805 |
FINANCING ARRANGEMENTS (Tables)
FINANCING ARRANGEMENTS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Notes Payable | The following table summarizes the carrying value of notes payable at March 31, 2022 and December 31, 2021: Millions of dollars March 31, 2022 December 31, 2021 Short-term borrowings due to banks 10 10 Total notes payable $ 10 $ 10 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Product Warranty Reserves | The following table summarizes the changes in total product warranty liability reserves for the periods presented: Product Warranty Millions of dollars 2022 2021 Balance at January 1 $ 286 $ 273 Issuances/accruals during the period 71 114 Settlements made during the period/other (79) (86) Balance at March 31 $ 278 $ 301 Current portion $ 187 $ 207 Non-current portion 91 94 Total $ 278 $ 301 |
PENSION AND OTHER POSTRETIREM_2
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Schedule of Components of Net Periodic Benefit Cost | 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 2022 2021 2022 2021 2022 2021 Service cost $ 1 $ 1 $ 1 $ 1 $ — $ — Interest cost 20 19 4 4 2 1 Expected return on plan assets $ (36) $ (39) $ (9) $ (9) $ — $ — Amortization: Actuarial loss $ 15 $ 17 $ 3 $ 5 $ — $ — Prior service credit — — — — (12) (11) Settlement and curtailment (gain) loss — — 1 — — — Net periodic benefit cost (credit) $ — $ (2) $ — $ 1 $ (10) $ (10) |
Schedule of Net Periodic Cost Recognized in Operating Profit and Interest and Sundry (Income) Expense | 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 2022 2021 2022 2021 2022 2021 Operating profit (loss) $ 1 $ 1 $ 1 $ 1 $ — $ — Interest and sundry (income) expense (1) (3) (1) — (10) (10) Net periodic benefit cost $ — $ (2) $ — $ 1 $ (10) $ (10) |
HEDGES AND DERIVATIVE FINANCI_2
HEDGES AND DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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, 2022 and December 31, 2021: Notional (Local) Notional (USD) Current Maturity Instrument 2022 2021 2022 2021 Foreign exchange forwards/options MXN 7,200 MXN 7,200 $ 362 $ 352 August 2022 The following table summarizes our outstanding derivative contracts and their effects in our Consolidated Condensed Balance Sheets at March 31, 2022 and December 31, 2021: Fair Value of Notional Amount Hedge Assets Hedge Liabilities Maximum Term (Months) Millions of dollars 2022 2021 2022 2021 2022 2021 2022 2021 Derivatives accounted for as hedges (1) Commodity swaps/options $ 383 $ 297 $ 67 $ 40 $ 18 $ 13 (CF) 21 21 Foreign exchange forwards/options 2,994 2,872 100 91 143 64 (CF/NI) 119 122 Cross-currency swaps 1,275 1,275 28 31 3 7 (CF) 83 86 Interest rate derivatives 300 300 9 — — 14 (CF) 38 41 Total derivatives accounted for as hedges $ 204 $ 162 $ 164 $ 98 Derivatives not accounted for as hedges Commodity swaps/options $ 1 $ 2 $ — $ — $ — $ — N/A 11 14 Foreign exchange forwards/options 2,552 2,240 31 20 30 18 N/A 9 12 Total derivatives not accounted for as hedges 31 20 30 18 Total derivatives $ 235 $ 182 $ 194 $ 116 Current $ 215 $ 170 $ 175 $ 93 Noncurrent 20 12 19 23 Total derivatives $ 235 $ 182 $ 194 $ 116 (1) Derivatives accounted for as hedges are considered either cash flow (CF) or net investment (NI) hedges. |
Schedule of Effects of Derivative Instruments on Consolidated Statements of Income | The following tables summarize the effects of derivative instruments on our Consolidated Condensed Statements of Comprehensive Income for the periods presented: Three Months Ended March 31, Gain (Loss) (2) Millions of dollars 2022 2021 Cash flow hedges Commodity swaps/options $ 39 $ 26 Foreign exchange (43) 48 Cross-currency swaps 8 32 Interest rate derivatives 23 46 Net investment hedges Foreign currency (16) 7 $ 11 $ 159 Three Months Ended March 31, Location of Gain (Loss) Reclassified from Gain (Loss) Reclassified from OCI into Earnings (Effective Portion) (3) Cash Flow Hedges - Millions of dollars 2022 2021 Commodity swaps/options Cost of products sold $ 18 $ 12 Foreign exchange forwards/options Net sales — 2 Foreign exchange forwards/options Cost of products sold (5) 9 Foreign exchange forwards/options Interest and sundry (income) expense 29 44 Cross-currency swaps Interest and sundry (income) expense 41 59 $ 83 $ 126 Three Months Ended March 31, Location of Gain (Loss) Recognized on Derivatives not Gain (Loss) Recognized on Derivatives not Derivatives not Accounted for as Hedges - Millions of dollars 2022 2021 Foreign exchange forwards/options Interest and sundry (income) expense $ (16) $ 79 (2) Change in gain (loss) recognized in OCI (effective portion) for the three months ended March 31, 2022 is primarily driven by fluctuations in currency and commodity prices and interest rates compared to prior year. The tax impact of the cash flow hedges was $19 million and $(12) million for the three months ended March 31, 2022 and 2021, respectively. The tax impact of the net investment hedges was $3 million and $(2) million for the three months ended March 31, 2022 and 2021, respectively. (3) Change in gain (loss) reclassified from OCI into earnings (effective portion) for the three months ended March 31, 2022 was primarily driven by fluctuations in currency and commodity prices and interest rates compared to prior year. |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities 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, 2022 and December 31, 2021: Fair Value Millions of dollars Total Cost Basis Level 1 Level 2 Total Measured at fair value on a recurring basis: 2022 2021 2022 2021 2022 2021 2022 2021 Short-term investments (1) $ 1,339 $ 1,905 $ 1,008 $ 1,697 $ 331 $ 208 $ 1,339 $ 1,905 Net derivative contracts — — — — 41 66 41 66 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Stockholders Equity | The following table summarizes the changes in stockholders' equity for the periods presented: Whirlpool Stockholders' Equity Total Retained Accumulated Other Comprehensive Income (Loss) Treasury Stock / Additional Paid-In-Capital Common Non-Controlling Interest Balances, December 31, 2021 $ 5,013 $ 10,170 $ (2,357) $ (3,081) $ 114 $ 167 Comprehensive income Net earnings 316 313 — — 3 Other comprehensive income 58 — 58 — — — Comprehensive income 374 313 58 — — 3 Stock issued (repurchased) (539) — — (539) — — Dividends declared (103) (103) — — — — Balances, March 31, 2022 4,745 10,380 (2,299) (3,620) 114 170 Whirlpool Stockholders' Equity Total Retained Accumulated Other Comprehensive Income (Loss) Treasury Stock / Additional Paid-In-Capital Common Non-Controlling Interest Balances, December 31, 2020 $ 4,795 $ 8,725 $ (2,811) $ (2,142) $ 113 $ 910 Comprehensive income Net earnings 440 433 — — — 7 Other comprehensive income 124 — 124 — — — Comprehensive income 564 433 124 — — 7 Stock issued (repurchased) (141) — — (141) — — Dividends declared (79) (79) — — — — Balances, March 31, 2021 $ 5,139 $ 9,079 $ (2,687) $ (2,283) $ 113 $ 917 |
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, 2022 2021 Millions of dollars Pre-tax Tax Effect Net Pre-tax Tax Effect Net Currency translation adjustments (2) $ 105 3 $ 108 $ 104 (2) $ 102 Cash flow hedges (56) 19 (37) 26 (12) 14 Pension and other postretirement benefits plans (15) 2 (13) 10 (2) 8 Other comprehensive income (loss) 34 24 58 140 (16) 124 Less: Other comprehensive income (loss) available to noncontrolling interests — — — — — — Other comprehensive income (loss) available to Whirlpool $ 34 $ 24 $ 58 $ 140 $ (16) $ 124 (2) Currency translation adjustments includes net investment hedges. |
Schedule of 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, 2022: Three Months Ended March 31, 2022 Millions of dollars (Gain) Loss Reclassified Classification in Earnings Pension and postretirement benefits, pre-tax $ 5 Interest and sundry (income) expense Total $ 5 |
Schedule of Basic and Diluted Net 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 2022 2021 Numerator for basic and diluted earnings per share - Net earnings (loss) available to Whirlpool $ 313 $ 433 Denominator for basic earnings per share - weighted-average shares 58.3 63.0 Effect of dilutive securities - share-based compensation 0.4 0.6 Denominator for diluted earnings per share - adjusted weighted-average shares 58.7 63.6 Anti-dilutive stock options/awards excluded from earnings per share 0.3 0.3 |
RESTRUCTURING CHARGES (Tables)
RESTRUCTURING CHARGES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Restructuring Charges [Abstract] | |
Schedule of Restructuring Reserve | The following table summarizes the changes to our restructuring liability during the three months ended March 31, 2022: Millions of dollars December 31, 2021 Charges to Earnings Cash Paid Non-Cash and Other March 31, 2022 Employee termination costs $ 53 3 $ (12) $ — $ 44 Asset impairment costs 8 — — — 8 Facility exit costs — 2 — (2) — Other exit costs (4) — — — (4) Total $ 57 $ 5 $ (12) $ (2) $ 48 |
Schedule of Restructuring Charges by Segment | The following table summarizes the restructuring charges by operating segment for the periods presented: Three Months Ended March 31, Millions of dollars 2022 2021 North America $ — $ — EMEA 5 17 Latin America — — Asia — 1 Corporate / Other — 2 Total $ 5 $ 20 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 2022 2021 Earnings before income taxes $ 427 $ 599 Income tax expense computed at United States statutory tax rate 90 126 Valuation allowances 7 3 U.S. foreign income items, net of credits (8) 7 Other 17 23 Income tax expense (benefit) computed at effective worldwide tax rates $ 106 $ 159 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 2022 $ 2,791 $ 1,084 $ 760 $ 285 $ — $ 4,920 2021 3,044 1,171 732 411 — 5,358 Intersegment sales 2022 $ 72 $ 24 $ 360 $ 11 $ (467) $ — 2021 79 24 310 111 (524) — Depreciation and amortization 2022 $ 43 $ 35 $ 16 $ 5 $ 13 $ 112 2021 46 46 15 13 21 141 EBIT 2022 $ 454 $ (27) $ 54 $ 14 $ (32) $ 463 2021 607 21 62 21 (67) 644 Total assets March 31, 2022 $ 8,071 $ 9,807 $ 4,851 $ 1,579 $ (4,821) $ 19,487 December 31, 2021 7,980 10,210 4,716 1,565 (4,186) 20,285 Capital expenditures 2022 $ 30 $ 12 $ 23 $ 6 $ 16 $ 87 2021 31 17 15 3 7 73 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 2022 2021 Items not allocated to segments: Restructuring costs $ (5) $ (20) Corporate expenses and other (27) (47) Total other/eliminations $ (32) $ (67) 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 2022 2021 Operating profit $ 461 $ 618 Interest and sundry (income) expense (7) (26) Equity method investment income (loss), net of tax (5) — Total EBIT $ 463 $ 644 Interest expense 41 45 Income tax expense 106 159 Net earnings (loss) $ 316 $ 440 Less: Net earnings available to noncontrolling interests 3 7 Net earnings (loss) available to Whirlpool $ 313 $ 433 |
BASIS OF PRESENTATION (Details)
BASIS OF PRESENTATION (Details) $ in Millions | 3 Months Ended | ||||
Mar. 31, 2022USD ($)individualrenewalOption | Mar. 31, 2021 | Dec. 31, 2021USD ($) | Sep. 30, 2021 | May 06, 2021 | |
Schedule of Equity Method Investments [Line Items] | |||||
Residual value guarantees | $ 263 | $ 264 | |||
Sale leaseback, net proceeds | 52 | ||||
Annual rent payment | $ 2 | ||||
Lease term | 15 years | ||||
Number of options to extend lease | renewalOption | 2 | ||||
Lease renewal term | 5 years | ||||
Sale leaseback, deferred gain, gross | $ 44 | ||||
Sale leaseback, deferred gain, net | 36 | ||||
Sale leaseback, right-of-use assets and lease liabilities | 32 | ||||
Accounts payable outsourcing | 1,400 | 1,400 | |||
Goodwill | 2,476 | 2,485 | |||
Elica PB India | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Total equity ownership percentage | 87.00% | ||||
Goodwill | 100 | ||||
Whirlpool China | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Purchases with related party | 102 | ||||
Outstanding amount due to related party | 100 | 137 | |||
Whirlpool China | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity interest percentage | 20.00% | ||||
Carrying value of equity interest | 201 | 206 | |||
Elica PB India | Customer Relationships | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Carrying amount of customer relationships, net of accumulated amortization | $ 35 | 36 | |||
Ukraine | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Number of employed individuals | individual | 45 | ||||
Russia | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Number of employed individuals | individual | 2,500 | ||||
Russia | EMEA | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Net assets | $ 209 | $ 212 | |||
Russia | Net Sales Benchmark | Geographic Concentration Risk | EMEA | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Concentration risk, percentage | 6.00% | 7.00% |
REVENUE RECOGNITION - Schedule
REVENUE RECOGNITION - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 4,920 | $ 5,358 |
Laundry | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 1,333 | 1,569 |
Refrigeration | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 1,528 | 1,627 |
Cooking | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 1,281 | 1,247 |
Dishwashing | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 450 | 515 |
Total major product category net sales | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 4,592 | 4,958 |
Spare parts and warranties | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 234 | 266 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 94 | $ 134 |
REVENUE RECOGNITION - Schedul_2
REVENUE RECOGNITION - Schedule of Allowance for Doubtful Accounts by Operating Segment (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Accounts receivable allowance | |
Balance at beginning of period | $ 98 |
Charged to Earnings | 7 |
Write-offs | (4) |
Foreign Currency | (1) |
Balance at end of period | 100 |
Financing receivable allowance | |
Balance at beginning of period | 25 |
Charged to Earnings | 0 |
Write-offs | 0 |
Foreign Currency | 5 |
Balance at end of period | 30 |
Balance at beginning of period | 123 |
Charged to Earnings | 7 |
Write-offs | (4) |
Foreign Currency | 4 |
Balance at end of period | 130 |
North America | |
Accounts receivable allowance | |
Balance at beginning of period | 7 |
Charged to Earnings | 0 |
Write-offs | (2) |
Foreign Currency | 0 |
Balance at end of period | 5 |
EMEA | |
Accounts receivable allowance | |
Balance at beginning of period | 45 |
Charged to Earnings | 7 |
Write-offs | 0 |
Foreign Currency | (2) |
Balance at end of period | 50 |
Latin America | |
Accounts receivable allowance | |
Balance at beginning of period | 43 |
Charged to Earnings | 0 |
Write-offs | (2) |
Foreign Currency | 1 |
Balance at end of period | 42 |
Financing receivable allowance | |
Balance at beginning of period | 25 |
Charged to Earnings | 0 |
Write-offs | 0 |
Foreign Currency | 5 |
Balance at end of period | 30 |
Asia | |
Accounts receivable allowance | |
Balance at beginning of period | 3 |
Charged to Earnings | 0 |
Write-offs | |
Foreign Currency | 0 |
Balance at end of period | $ 3 |
CASH, CASH EQUIVALENTS AND RE_3
CASH, CASH EQUIVALENTS AND RESTRICTED CASH (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Cash and Cash Equivalents [Abstract] | ||||
Cash and cash equivalents as presented in our Consolidated Condensed Balance Sheets | $ 2,114 | $ 3,044 | $ 2,447 | $ 2,924 |
Cash included in assets held for sale | 0 | 317 | ||
Restricted cash included in prepaid and other current assets | 0 | 10 | ||
Cash, cash equivalents and restricted cash as presented in our Consolidated Condensed Statements of Cash Flows | $ 2,114 | $ 3,044 | $ 2,764 | $ 2,934 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Inventory, Net [Abstract] | ||
Finished products | $ 2,358 | $ 1,958 |
Raw materials and work in process | 778 | 759 |
Total Inventories | $ 3,136 | $ 2,717 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Property, Plant and Equipment [Line Items] | |||
Accumulated depreciation | $ (6,696) | $ (6,619) | |
Property, plant and equipment, net | 2,764 | 2,805 | |
Net book value of land, buildings, machinery and equipment disposals | 17 | $ 6 | |
Net gain on disposals of land, buildings, machinery and equipment | 57 | ||
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | 73 | 84 | |
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | 1,240 | 1,249 | |
Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | $ 8,147 | $ 8,091 |
FINANCING ARRANGEMENTS - Narrat
FINANCING ARRANGEMENTS - Narrative (Details) | May 07, 2020USD ($) | Feb. 21, 2020USD ($) | Sep. 27, 2017 | Mar. 31, 2022USD ($) | Dec. 31, 2021USD ($) | Apr. 29, 2021USD ($) | Apr. 26, 2021USD ($) | Mar. 31, 2021USD ($) | Feb. 21, 2020EUR (€) | Aug. 06, 2019USD ($) |
Accounts Receivable | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Cash proceeds from sale of transferred receivables | $ 0 | $ 0 | ||||||||
Letter of Credit Subfacility Maturing 2022 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, maximum borrowing capacity | 224,000,000 | $ 193,000,000 | ||||||||
Line of Credit | Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Outstanding borrowings | $ 0 | $ 0 | ||||||||
2.400% Notes Maturing 2031 | Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, face amount | $ 300,000,000 | |||||||||
Debt instrument, interest rate, stated percentage | 2.40% | |||||||||
4.60% Notes Maturing 2050 | Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, face amount | $ 500,000,000 | |||||||||
Debt instrument, interest rate, stated percentage | 4.60% | |||||||||
Debt instrument, redemption price, percentage | 101.00% | |||||||||
4.850% Notes Maturing 2021 | Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, face amount | $ 300,000,000 | |||||||||
Debt instrument, interest rate, stated percentage | 4.85% | |||||||||
0.50% Notes Maturing 2028 | Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, face amount | $ 540,000,000 | € 500,000,000 | ||||||||
Debt instrument, interest rate, stated percentage | 0.50% | 0.50% | ||||||||
Debt instrument, redemption price, percentage | 101.00% | |||||||||
Third Amended and Restated Long-Term Credit Agreement | Line of Credit | Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, maximum borrowing capacity | $ 3,500,000,000 | |||||||||
Line of credit facility, commitment fee percentage | 0.10% | |||||||||
Ratio of indebtedness to net capital | 0.65 | |||||||||
Minimum coverage ration for debt covenant | 3 | |||||||||
Third Amended and Restated Long-Term Credit Agreement | Line of Credit | Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate | 1.125% | |||||||||
Third Amended and Restated Long-Term Credit Agreement | Line of Credit | Revolving Credit Facility | Prime Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate | 0.125% |
FINANCING ARRANGEMENTS - Schedu
FINANCING ARRANGEMENTS - Schedule Of Notes Payable (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Short-term Debt [Line Items] | ||
Notes payable | $ 10 | $ 10 |
Short-term borrowings due to banks | ||
Short-term Debt [Line Items] | ||
Notes payable | $ 10 | $ 10 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Narrative (Details) € in Thousands, R$ in Millions | 3 Months Ended | 12 Months Ended | 24 Months Ended | |||||||||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Sep. 30, 2019USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020EUR (€) | Dec. 31, 2019USD ($) | Dec. 31, 2009USD ($) | Dec. 31, 2004USD ($) | Mar. 31, 2022BRL (R$)lawsuitwashingMachine | Mar. 31, 2022USD ($)lawsuitwashingMachine | Dec. 31, 2021BRL (R$) | Dec. 31, 2021USD ($) | |
Commitments and Contingencies [Line Items] | ||||||||||||
Outstanding BEFIEX tax assessment | R$ 2000 | $ 431,000,000 | ||||||||||
Product warranty accrual | $ 105,000,000 | |||||||||||
Release to product warranty reserve | $ 9,000,000 | $ 30,000,000 | ||||||||||
Total warranty settlement | 62,000,000 | |||||||||||
Customer Lines of Credit for Brazilian Subsidiary | ||||||||||||
Commitments and Contingencies [Line Items] | ||||||||||||
Guarantor obligations, maximum exposure | R$ 1200 | 246,000,000 | R$ 1200 | $ 212,000,000 | ||||||||
Guarantee of Indebtedness of Others | ||||||||||||
Commitments and Contingencies [Line Items] | ||||||||||||
Guarantor obligations, maximum exposure | $ 3,200,000,000 | $ 3,300,000,000 | ||||||||||
Indesit Company S.p.A. | ||||||||||||
Commitments and Contingencies [Line Items] | ||||||||||||
Product warranty accrual | $ 26,000,000 | |||||||||||
Pending Litigation | ||||||||||||
Commitments and Contingencies [Line Items] | ||||||||||||
Number of lawsuits | lawsuit | 2 | 2 | ||||||||||
Number of washing machines | washingMachine | 2 | 2 | ||||||||||
Brazil Tax Matters | ||||||||||||
Commitments and Contingencies [Line Items] | ||||||||||||
IPI tax credits recognized | $ 26,000,000 | |||||||||||
Special government program settlement | $ 34,000,000 | |||||||||||
Brazil tax assessment | R$ 263 | $ 56,000,000 | ||||||||||
CFC Tax | ||||||||||||
Commitments and Contingencies [Line Items] | ||||||||||||
CFC potential exposure | R$ 311 | 66,000,000 | ||||||||||
Loss contingency accrual | $ 0 | |||||||||||
Insolvency Trustee Claim | Alno AG Insolvency Trustee v Bauknecht | ||||||||||||
Commitments and Contingencies [Line Items] | ||||||||||||
Litigation settlement, amount awarded to other party | $ 59,000,000 | € 52,750 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Schedule of Product Warranty Reserves (Details) - Product Warranty - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward] | ||
Balance at January 1 | $ 286 | $ 273 |
Issuances/accruals during the period | 71 | 114 |
Settlements made during the period/other | (79) | (86) |
Balance at March 31 | 278 | 301 |
Current portion | 187 | 207 |
Non-current portion | 91 | 94 |
Total | $ 278 | $ 301 |
PENSION AND OTHER POSTRETIREM_3
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS - Schedule of Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 0 | $ 0 |
Interest cost | 2 | 1 |
Expected return on plan assets | 0 | 0 |
Amortization: | ||
Actuarial loss | 0 | 0 |
Prior service credit | (12) | (11) |
Settlement and curtailment (gain) loss | 0 | 0 |
Net periodic benefit cost (credit) | (10) | (10) |
United States Pension Benefits | Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 1 | 1 |
Interest cost | 20 | 19 |
Expected return on plan assets | (36) | (39) |
Amortization: | ||
Actuarial loss | 15 | 17 |
Prior service credit | 0 | 0 |
Settlement and curtailment (gain) loss | 0 | 0 |
Net periodic benefit cost (credit) | 0 | (2) |
Foreign Pension Benefits | Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 1 | 1 |
Interest cost | 4 | 4 |
Expected return on plan assets | (9) | (9) |
Amortization: | ||
Actuarial loss | 3 | 5 |
Prior service credit | 0 | 0 |
Settlement and curtailment (gain) loss | 1 | 0 |
Net periodic benefit cost (credit) | $ 0 | $ 1 |
PENSION AND OTHER POSTRETIREM_4
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS - Schedule of Net Periodic Cost Recognized in Operating Profit and Interest and Sundry (Income) Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net periodic benefit cost | $ (10) | $ (10) |
Operating profit (loss) | Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net periodic benefit cost | 0 | 0 |
Interest and sundry (income) expense | Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net periodic benefit cost | (10) | (10) |
United States Pension Benefits | Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net periodic benefit cost | 0 | (2) |
United States Pension Benefits | Operating profit (loss) | Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net periodic benefit cost | 1 | 1 |
United States Pension Benefits | Interest and sundry (income) expense | Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net periodic benefit cost | (1) | (3) |
Foreign Pension Benefits | Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net periodic benefit cost | 0 | 1 |
Foreign Pension Benefits | Operating profit (loss) | Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net periodic benefit cost | 1 | 1 |
Foreign Pension Benefits | Interest and sundry (income) expense | Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net periodic benefit cost | $ (1) | $ 0 |
HEDGES AND DERIVATIVE FINANCI_3
HEDGES AND DERIVATIVE FINANCIAL INSTRUMENTS - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Derivative [Line Items] | ||
Loss expected to be reclassified in next twelve months | $ 5 | |
Derivatives accounted for as hedges | Cross-currency swaps | ||
Derivative [Line Items] | ||
Notional Amount | 1,275 | $ 1,275 |
Derivatives accounted for as hedges | Interest rate derivatives | ||
Derivative [Line Items] | ||
Notional Amount | $ 300 | $ 300 |
HEDGES AND DERIVATIVE FINANCI_4
HEDGES AND DERIVATIVE FINANCIAL INSTRUMENTS - Schedule of Net Investment Hedging (Details) $ in Millions, $ in Millions | Mar. 31, 2022USD ($) | Mar. 31, 2022MXN ($) | Dec. 31, 2021USD ($) | Dec. 31, 2021MXN ($) |
Foreign exchange forwards/options | Foreign currency | ||||
Derivative [Line Items] | ||||
Notional Amount | $ 362 | $ 7,200 | $ 352 | $ 7,200 |
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, 2022 | Dec. 31, 2021 | |
Derivatives, Fair Value [Line Items] | ||
Hedge Assets | $ 235 | $ 182 |
Hedge Liabilities | 194 | 116 |
Derivative asset at fair value, current | 215 | 170 |
Derivative asset at fair value, noncurrent | 20 | 12 |
Total derivatives, hedge assets at fair value | 235 | 182 |
Derivative liability at fair value, current | 175 | 93 |
Derivative liability at fair value, noncurrent | 19 | 23 |
Total derivatives, hedge liabilities at fair value | 194 | 116 |
Derivatives accounted for as hedges | ||
Derivatives, Fair Value [Line Items] | ||
Hedge Assets | 204 | 162 |
Hedge Liabilities | 164 | 98 |
Derivatives accounted for as hedges | Commodity swaps/options | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 383 | 297 |
Hedge Assets | 67 | 40 |
Hedge Liabilities | $ 18 | $ 13 |
Maximum term of commodity swaps/options | 21 months | 21 months |
Derivatives accounted for as hedges | Foreign exchange forwards/options | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 2,994 | $ 2,872 |
Hedge Assets | 100 | 91 |
Hedge Liabilities | $ 143 | $ 64 |
Maximum term of foreign exchange forwards/options | 119 months | 122 months |
Derivatives accounted for as hedges | Cross-currency swaps | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 1,275 | $ 1,275 |
Hedge Assets | 28 | 31 |
Hedge Liabilities | $ 3 | $ 7 |
Maximum term of cross-currency swaps | 83 months | 86 months |
Derivatives accounted for as hedges | Interest rate derivatives | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 300 | $ 300 |
Hedge Assets | 9 | 0 |
Hedge Liabilities | $ 0 | $ 14 |
Maximum term of interest rate derivatives | 38 months | 41 months |
Derivatives not accounted for as hedges | ||
Derivatives, Fair Value [Line Items] | ||
Hedge Assets | $ 31 | $ 20 |
Hedge Liabilities | 30 | 18 |
Derivatives not accounted for as hedges | Commodity swaps/options | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 1 | 2 |
Hedge Assets | 0 | 0 |
Hedge Liabilities | $ 0 | $ 0 |
Maximum term of commodity swaps/options | 11 months | 14 months |
Derivatives not accounted for as hedges | Foreign exchange forwards/options | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 2,552 | $ 2,240 |
Hedge Assets | 31 | 20 |
Hedge Liabilities | $ 30 | $ 18 |
Maximum term of foreign exchange forwards/options | 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, 2022 | Mar. 31, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Hedges, gain (loss) recognized in OCI | $ 11 | $ 159 |
Cash flow hedges, gain (loss) reclassified from OCI into earnings | 83 | 126 |
Foreign exchange | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Foreign exchange forwards/options | (16) | 79 |
Cash flow hedges | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Tax impact of cash flow hedges | 19 | (12) |
Cash flow hedges | Commodity swaps/options | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Cash flow hedges, gain (loss) recognized in OCI | 39 | 26 |
Cash flow hedges | Commodity swaps/options | Cost of products sold | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Cash flow hedges, gain (loss) reclassified from OCI into earnings | 18 | 12 |
Cash flow hedges | Foreign exchange | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Cash flow hedges, gain (loss) recognized in OCI | (43) | 48 |
Cash flow hedges | Foreign exchange | Cost of products sold | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Cash flow hedges, gain (loss) reclassified from OCI into earnings | (5) | 9 |
Cash flow hedges | Foreign exchange | Net sales | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Cash flow hedges, gain (loss) reclassified from OCI into earnings | 0 | 2 |
Cash flow hedges | Foreign exchange | Interest and sundry (income) expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Cash flow hedges, gain (loss) reclassified from OCI into earnings | 29 | 44 |
Cash flow hedges | Cross-currency swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Cash flow hedges, gain (loss) recognized in OCI | 8 | 32 |
Cash flow hedges | Cross-currency swaps | Interest and sundry (income) expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Cash flow hedges, gain (loss) reclassified from OCI into earnings | 41 | 59 |
Cash flow hedges | Interest rate derivatives | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Cash flow hedges, gain (loss) recognized in OCI | 23 | 46 |
Net Investment hedges | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Tax impact of net investment hedges | 3 | (2) |
Net Investment hedges | Foreign exchange | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Foreign currency | $ (16) | $ 7 |
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, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | $ 1,339 | $ 1,905 |
Net derivative contracts | 41 | 66 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 1,008 | 1,697 |
Net derivative contracts | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 331 | 208 |
Net derivative contracts | 41 | 66 |
Total Cost Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 1,339 | 1,905 |
Net derivative contracts | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Narra
FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, fair value | $ 5,250 | $ 5,760 |
STOCKHOLDERS' EQUITY - Schedule
STOCKHOLDERS' EQUITY - Schedule of Changes in Stockholders' Equity (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | $ 5,013 | $ 4,795 |
Comprehensive income | ||
Net earnings | 316 | 440 |
Other comprehensive income | 58 | 124 |
Comprehensive income | 374 | 564 |
Stock issued (repurchased) | (539) | (141) |
Dividends declared | (103) | (79) |
Ending balance | 4,745 | 5,139 |
Retained Earnings | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | 10,170 | 8,725 |
Comprehensive income | ||
Net earnings | 313 | 433 |
Comprehensive income | 313 | 433 |
Dividends declared | (103) | (79) |
Ending balance | 10,380 | 9,079 |
Accumulated Other Comprehensive Income (Loss) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | (2,357) | (2,811) |
Comprehensive income | ||
Other comprehensive income | 58 | 124 |
Comprehensive income | 58 | 124 |
Ending balance | (2,299) | (2,687) |
Treasury Stock / Additional Paid-In-Capital | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | (3,081) | (2,142) |
Comprehensive income | ||
Stock issued (repurchased) | (539) | (141) |
Ending balance | (3,620) | (2,283) |
Common Stock | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | 114 | 113 |
Comprehensive income | ||
Ending balance | 114 | 113 |
Non-Controlling Interest | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | 167 | 910 |
Comprehensive income | ||
Net earnings | 3 | 7 |
Other comprehensive income | 0 | 0 |
Comprehensive income | 3 | 7 |
Ending balance | $ 170 | $ 917 |
STOCKHOLDERS' EQUITY - Schedu_2
STOCKHOLDERS' EQUITY - Schedule of Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Pre-tax | $ 34 | $ 140 |
Tax Effect | 24 | (16) |
Net | 58 | 124 |
Currency translation adjustments | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Pre-tax | 105 | 104 |
Tax Effect | 3 | (2) |
Net | 108 | 102 |
Cash flow hedges | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Pre-tax | (56) | 26 |
Tax Effect | 19 | (12) |
Net | (37) | 14 |
Pension and other postretirement benefits plans | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Pre-tax | (15) | 10 |
Tax Effect | 2 | (2) |
Net | (13) | 8 |
Less: Other comprehensive income (loss) available to noncontrolling interests | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Pre-tax | 0 | 0 |
Tax Effect | 0 | 0 |
Net | 0 | 0 |
Other comprehensive income (loss) available to Whirlpool | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Pre-tax | 34 | 140 |
Tax Effect | 24 | (16) |
Net | $ 58 | $ 124 |
STOCKHOLDERS' EQUITY - Schedu_3
STOCKHOLDERS' EQUITY - Schedule of Reclassifications out of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Reclassifications out of Accumulated Other Comprehensive Income [Line Items] | ||
Interest and sundry (income) expense | $ 7 | $ 26 |
Total reclassification adjustments | 313 | $ 433 |
Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassifications out of Accumulated Other Comprehensive Income [Line Items] | ||
Total reclassification adjustments | 5 | |
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 | $ 5 |
STOCKHOLDERS' EQUITY - Schedu_4
STOCKHOLDERS' EQUITY - Schedule of Net Earnings Per Share (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Stockholders' Equity Note [Abstract] | ||
Numerator for basic and diluted earnings per share - Net earnings (loss) available to Whirlpool | $ 313 | $ 433 |
Denominator for basic earnings per share – weighted-average shares (in shares) | 58.3 | 63 |
Effect of dilutive securities – share-based compensation (in shares) | 0.4 | 0.6 |
Denominator for diluted earnings per share – adjusted weighted-average shares (in shares) | 58.7 | 63.6 |
Anti-dilutive stock options/awards excluded from earnings per share (in shares) | 0.3 | 0.3 |
STOCKHOLDERS' EQUITY - Narrativ
STOCKHOLDERS' EQUITY - Narrative (Details) - USD ($) shares in Millions | Feb. 14, 2022 | Mar. 31, 2022 | Mar. 31, 2021 | Apr. 19, 2021 |
Equity, Class of Treasury Stock [Line Items] | ||||
Stock repurchased during period, value | $ 539,000,000 | $ 141,000,000 | ||
Common Stock | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Stock repurchase program, authorized amount | $ 2,000,000,000 | |||
Stock repurchase program, additional authorized amount | $ 2,000,000,000 | |||
Stock repurchased during period, shares (in shares) | 2.7 | |||
Stock repurchased during period, value | $ 533,000,000 | |||
Stock repurchase program, remaining authorized repurchase amount | $ 2,900,000,000 |
RESTRUCTURING CHARGES - Narrati
RESTRUCTURING CHARGES - Narrative (Details) - USD ($) $ in Millions | 15 Months Ended | 27 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2022 | Jun. 26, 2020 | |
Manufacturing Facility | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, total costs to date | $ 143 | $ 143 | |
Restructuring and related cost, incurred cost | 96 | ||
Asset Impairment Charges | Manufacturing Facility | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, total costs to date | 43 | 43 | |
Other Restructuring | Manufacturing Facility | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, total costs to date | 25 | 25 | |
Employee-related Costs | Manufacturing Facility | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, total costs to date | 75 | 75 | |
Workforce Reduction Plan | Employee termination costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, total costs to date | $ 204 | 204 | |
Restructuring and related cost, expected cost remaining | $ 26 | ||
Restructuring and related cost, incurred cost | $ 183 |
RESTRUCTURING CHARGES - Schedul
RESTRUCTURING CHARGES - Schedule of Changes to Restructuring Liability (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, balance at beginning of period | $ 57 | |
Charges to Earnings | 5 | $ 20 |
Cash Paid | (12) | |
Non-Cash and Other | (2) | |
Restructuring reserve, balance at end of period | 48 | |
Employee termination costs | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, balance at beginning of period | 53 | |
Charges to Earnings | 3 | |
Cash Paid | (12) | |
Non-Cash and Other | 0 | |
Restructuring reserve, balance at end of period | 44 | |
Asset impairment costs | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, balance at beginning of period | 8 | |
Charges to Earnings | 0 | |
Cash Paid | 0 | |
Non-Cash and Other | 0 | |
Restructuring reserve, balance at end of period | 8 | |
Facility exit costs | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, balance at beginning of period | 0 | |
Charges to Earnings | 2 | |
Cash Paid | 0 | |
Non-Cash and Other | (2) | |
Restructuring reserve, balance at end of period | 0 | |
Other exit costs | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, balance at beginning of period | (4) | |
Charges to Earnings | 0 | |
Cash Paid | 0 | |
Non-Cash and Other | 0 | |
Restructuring reserve, balance at end of period | $ (4) |
RESTRUCTURING CHARGES - Sched_2
RESTRUCTURING CHARGES - Schedule of Charges by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | $ 5 | $ 20 |
Operating Segments | North America | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 0 | 0 |
Operating Segments | EMEA | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 5 | 17 |
Operating Segments | Latin America | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 0 | 0 |
Operating Segments | Asia | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 0 | 1 |
Corporate / Other | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | $ 0 | $ 2 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense (benefit) | $ 106 | $ 159 | |
Reserve for expected increase in income tax expense | $ 98 |
INCOME TAXES - Schedule of Inco
INCOME TAXES - Schedule of Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Earnings before income taxes | $ 427 | $ 599 |
Income tax expense computed at United States statutory tax rate | 90 | 126 |
Valuation allowances | 7 | 3 |
U.S. foreign income items, net of credits | (8) | 7 |
Other | 17 | 23 |
Income tax expense (benefit) computed at effective worldwide tax rates | $ 106 | $ 159 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Net sales | $ 4,920 | $ 5,358 | |
Depreciation and amortization | 112 | 141 | |
EBIT | 463 | 644 | |
Total assets | 19,487 | $ 20,285 | |
Capital expenditures | 87 | 73 | |
Restructuring costs | (5) | (20) | |
Total other/eliminations | 463 | 644 | |
Operating profit | 461 | 618 | |
Interest and sundry (income) expense | (7) | (26) | |
Equity method investment income (loss), net of tax | (5) | 0 | |
Interest expense | 41 | 45 | |
Income tax expense (benefit) | 106 | 159 | |
Net earnings | 316 | 440 | |
Less: Net earnings (loss) available to noncontrolling interests | 3 | 7 | |
Net earnings available to Whirlpool | 313 | 433 | |
North America | |||
Segment Reporting Information [Line Items] | |||
Net sales | 2,791 | 3,044 | |
EMEA | |||
Segment Reporting Information [Line Items] | |||
Net sales | 1,084 | 1,171 | |
Latin America | |||
Segment Reporting Information [Line Items] | |||
Net sales | 760 | 732 | |
Asia | |||
Segment Reporting Information [Line Items] | |||
Net sales | 285 | 411 | |
Intersegment sales | |||
Segment Reporting Information [Line Items] | |||
Net sales | (467) | (524) | |
Intersegment sales | North America | |||
Segment Reporting Information [Line Items] | |||
Net sales | 72 | 79 | |
Intersegment sales | EMEA | |||
Segment Reporting Information [Line Items] | |||
Net sales | 24 | 24 | |
Intersegment sales | Latin America | |||
Segment Reporting Information [Line Items] | |||
Net sales | 360 | 310 | |
Intersegment sales | Asia | |||
Segment Reporting Information [Line Items] | |||
Net sales | 11 | 111 | |
Operating Segments | North America | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 43 | 46 | |
EBIT | 454 | 607 | |
Total assets | 8,071 | 7,980 | |
Capital expenditures | 30 | 31 | |
Restructuring costs | 0 | 0 | |
Total other/eliminations | 454 | 607 | |
Operating Segments | EMEA | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 35 | 46 | |
EBIT | (27) | 21 | |
Total assets | 9,807 | 10,210 | |
Capital expenditures | 12 | 17 | |
Restructuring costs | (5) | (17) | |
Total other/eliminations | (27) | 21 | |
Operating Segments | Latin America | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 16 | 15 | |
EBIT | 54 | 62 | |
Total assets | 4,851 | 4,716 | |
Capital expenditures | 23 | 15 | |
Restructuring costs | 0 | 0 | |
Total other/eliminations | 54 | 62 | |
Operating Segments | Asia | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 5 | 13 | |
EBIT | 14 | 21 | |
Total assets | 1,579 | 1,565 | |
Capital expenditures | 6 | 3 | |
Restructuring costs | 0 | (1) | |
Total other/eliminations | 14 | 21 | |
Other / Eliminations | |||
Segment Reporting Information [Line Items] | |||
Net sales | 0 | 0 | |
Depreciation and amortization | 13 | 21 | |
EBIT | (32) | (67) | |
Total assets | (4,821) | $ (4,186) | |
Capital expenditures | 16 | 7 | |
Restructuring costs | (5) | (20) | |
Corporate expenses and other | (27) | (47) | |
Total other/eliminations | $ (32) | $ (67) |