Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2023 | Apr. 21, 2023 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
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) | 54,757,938 | |
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 | 2023 | |
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 $1.00 per share | |
Trading Symbol | WHR | |
Security Exchange Name | NYSE |
CONSOLIDATED CONDENSED STATEMEN
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net sales | $ 4,649 | $ 4,920 |
Expenses | ||
Cost of products sold | 3,886 | 4,069 |
Gross margin | 763 | 851 |
Selling, general and administrative | 487 | 376 |
Intangible amortization | 11 | 9 |
Restructuring costs | 0 | 5 |
(Gain) loss on sale and disposal of businesses | 222 | 0 |
Operating profit (loss) | 43 | 461 |
Other (income) expense | ||
Interest and sundry (income) expense | 77 | (7) |
Interest expense | 75 | 41 |
Earnings (loss) before income taxes | (109) | 427 |
Income tax expense (benefit) | 68 | 106 |
Equity method investment income (loss), net of tax | 1 | (5) |
Net earnings (loss) | (176) | 316 |
Less: Net earnings (loss) available to noncontrolling interests | 3 | 3 |
Net earnings (loss) available to Whirlpool | $ (179) | $ 313 |
Per share of common stock | ||
Basic net earnings available to Whirlpool (in USD per share) | $ (3.27) | $ 5.37 |
Diluted net earnings available to Whirlpool (in USD per share) | (3.27) | 5.33 |
Dividends declared (in USD per share) | $ 1.75 | $ 1.75 |
Weighted-average shares outstanding (in millions) | ||
Basic (in shares) | 54.8 | 58.3 |
Diluted (in shares) | 54.8 | 58.7 |
Comprehensive income (loss) | $ (177) | $ 374 |
CONSOLIDATED CONDENSED BALANCE
CONSOLIDATED CONDENSED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash and cash equivalents | $ 1,359 | $ 1,958 |
Accounts receivable, net of allowance of $49 and $49, respectively | 1,612 | 1,555 |
Inventories | 2,351 | 2,089 |
Prepaid and other current assets | 630 | 653 |
Assets held for sale | 143 | 139 |
Total current assets | 6,095 | 6,394 |
Property, net of accumulated depreciation of $5,064 and $4,808, respectively | 2,104 | 2,102 |
Right of use assets | 697 | 691 |
Goodwill | 3,328 | 3,314 |
Other intangibles, net of accumulated amortization of $410 and $400, respectively | 3,154 | 3,164 |
Deferred income taxes | 1,096 | 1,063 |
Other noncurrent assets | 390 | 396 |
Total assets | 16,864 | 17,124 |
Current liabilities | ||
Accounts payable | 3,467 | 3,376 |
Accrued expenses | 542 | 481 |
Accrued advertising and promotions | 421 | 623 |
Employee compensation | 151 | 159 |
Notes payable | 9 | 4 |
Current maturities of long-term debt | 300 | 248 |
Other current liabilities | 631 | 550 |
Liabilities held for sale | 461 | 490 |
Total current liabilities | 5,982 | 5,931 |
Noncurrent liabilities | ||
Long-term debt | 7,382 | 7,363 |
Pension benefits | 156 | 184 |
Postretirement benefits | 93 | 96 |
Lease liabilities | 594 | 584 |
Other noncurrent liabilities | 423 | 460 |
Total noncurrent liabilities | 8,648 | 8,687 |
Stockholders' equity | ||
Common stock, $1 par value, 250 million shares authorized, 114 million and 114 million shares issued, respectively, and 55 million and 54 million shares outstanding, respectively | 114 | 114 |
Additional paid-in capital | 3,064 | 3,061 |
Retained earnings | 7,985 | 8,261 |
Accumulated other comprehensive loss | (2,091) | (2,090) |
Treasury stock, 60 million and 60 million shares, respectively | (7,011) | (7,010) |
Total Whirlpool stockholders' equity | 2,061 | 2,336 |
Noncontrolling interests | 173 | 170 |
Total stockholders' equity | 2,234 | 2,506 |
Total liabilities and stockholders' equity | $ 16,864 | $ 17,124 |
CONSOLIDATED CONDENSED BALANC_2
CONSOLIDATED CONDENSED BALANCE SHEETS (Parenthetical) - USD ($) shares in Millions, $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 49 | $ 49 |
Accumulated depreciation | 5,064 | 4,808 |
Accumulated amortization | $ 410 | $ 400 |
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) | 55 | 54 |
Treasury stock (in shares) | 60 | 60 |
CONSOLIDATED CONDENSED STATEM_2
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Operating activities | ||
Net earnings (loss) | $ (176) | $ 316 |
Adjustments to reconcile net earnings to cash provided by (used in) operating activities: | ||
Depreciation and amortization | 89 | 112 |
(Gain) loss on sale and disposal of businesses | 222 | 0 |
Changes in assets and liabilities: | ||
Accounts receivable | (155) | 248 |
Inventories | (284) | (384) |
Accounts payable | (24) | (217) |
Accrued advertising and promotions | (229) | (272) |
Accrued expenses and current liabilities | 99 | 186 |
Taxes deferred and payable, net | 43 | 79 |
Accrued pension and postretirement benefits | (14) | (28) |
Employee compensation | 3 | (234) |
Other | (51) | (134) |
Cash provided by (used in) operating activities | (477) | (328) |
Investing activities | ||
Capital expenditures | (96) | (87) |
Proceeds from sale of assets and businesses | 0 | 75 |
Acquisition of businesses, net of cash acquired | (14) | 0 |
Cash provided by (used in) investing activities | (110) | (12) |
Financing activities | ||
Net proceeds from borrowings of long-term debt | 303 | 0 |
Net proceeds (repayments) of long-term debt | (250) | 0 |
Net proceeds (repayments) from short-term borrowings | 9 | 0 |
Dividends paid | (97) | (103) |
Repurchase of common stock | 0 | (533) |
Common stock issued | 1 | 2 |
Other | (4) | 3 |
Cash provided by (used in) financing activities | (38) | (631) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 27 | 41 |
Less: decrease in cash classified as held for sale | (1) | 0 |
Increase (decrease) in cash, cash equivalents and restricted cash | (599) | (930) |
Cash, cash equivalents and restricted cash at beginning of year | 1,958 | 3,044 |
Cash, cash equivalents and restricted cash at end of period | $ 1,359 | $ 2,114 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2023 | |
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, 2022. Management believes that the accompanying Consolidated Condensed Financial Statements reflect all adjustments, including normal recurring items, considered necessary for a fair presentation of the interim periods. We are required to make estimates and assumptions that affect the amounts reported in the Consolidated Condensed Financial Statements and accompanying Notes. Actual results could differ materially from those estimates. We have eliminated all material intercompany transactions in our Consolidated Condensed Financial Statements. We do not consolidate the financial statements of any company in which we have an ownership interest of 50% or less, unless that company is deemed to be a variable interest entity ("VIE") of which we are the primary beneficiary. VIEs are consolidated when the company is the primary beneficiary of these entities and has the ability to directly impact the 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 continued experiencing 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 continue to closely monitor the ongoing conflict which could materially impact our financial results in the future. We have some sales and distribution operations in Ukraine, however, the revenues and net assets are not material to our EMEA operating segment and consolidated results. On June 27, 2022, our subsidiary Whirlpool EMEA SpA entered into a share purchase agreement with Arçelik A.Ş. (“Arcelik”) to sell our Russian business to Arcelik for contingent consideration. The sale of the Russian business was completed on August 31, 2022. Furthermore, macroeconomic volatility continues to impact countries across the world, and the duration and severity of the effects are currently unknown. The Consolidated Condensed Financial Statements presented herein reflect estimates and assumptions made by management at March 31, 2023. 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 25, 2023, including those resulting from the impacts of macroeconomic volatility 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. Our JennAir and Maytag trademarks continue to be at risk at March 31, 2023. The goodwill in our reporting units or other indefinite-lived intangible assets are not presently at risk for future impairment. The potential impact of demand disruptions, production impacts or supply constraints along with a number of other factors could negatively effect revenues for the JennAir and Maytag trademarks, but we remain committed to the strategic actions necessary to realize the long-term forecasted revenues and profitability of these trademarks. A lack of recovery or further deterioration in market conditions, a sustained trend of weaker than expected financial performance for our JennAir or Maytag trademarks, among other factors, as a result of the 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 2023. 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, such as potential sales of businesses and changes in tax rates may negatively impact the realizability and/or valuation 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, 2023 and December 31, 2022, these arrangements include residual value guarantees of up to approximately $334 million and $334 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. 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 Comprehensive 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 provide 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. Under these agreements, the average payment terms range from 120 to 180 days and are based on industry standards and best practices within each of our global regions. Whirlpool has no assets pledged as part of our global programs. We have no economic interest in the sale of these receivables and no direct financial relationship with the financial institutions concerning these services. For certain arrangements, the Company will guarantee receivables due from wholly-owned subsidiaries. Our obligations to suppliers, including amounts due and scheduled payment terms, are not impacted. All outstanding balances under these programs are recorded in accounts payable on our Consolidated Condensed Balance Sheets. Approximately $1.2 billion have been issued to participating financial institutions as of March 31, 2023 and $1.1 billion as of December 31, 2022, respectively, of which $408 million and $368 million, respectively, of the balance issued is related to our European major domestic appliance business which was classified as held for sale in the fourth quarter of 2022. 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. The following tables summarize balances and transactions with Whirlpool China and its subsidiaries during the periods presented. Millions of dollars March 31, 2023 December 31, 2022 Other noncurrent assets Carrying value of equity interest $ 203 $ 201 Accounts payable Outstanding amounts due $ 76 $ 75 Millions of dollars Three Months Ended March 31, 2023 2022 Purchases from Whirlpool China $ 59 $ 102 The licensing revenue and outstanding accounts receivable from Whirlpool China and its subsidiaries are not material for the periods presented. The market value of our 20% investment in Whirlpool China, based on the quoted market price, is $179 million as of March 31, 2023. Management has concluded that there are no indicators for an other-than-temporary impairment. Related Party Transactions 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. 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 $30 million as of March 31, 2023 and $31 million as of December 31, 2022, 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 as of January 1, 2023: Standard Effective Date 2022-04 Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations January 1, 2023 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, 2023 | |
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 12 to the Consolidated Condensed Financial Statements. Three Months Ended March 31, Millions of dollars 2023 2022 Major product categories: Laundry $ 1,295 $ 1,333 Refrigeration 1,372 1,528 Cooking 1,092 1,281 Dishwashing 432 450 Total major product category net sales $ 4,191 $ 4,592 Spare parts and warranties 236 234 Other 222 94 Total net sales $ 4,649 $ 4,920 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, 2023. 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, 2023: Millions of dollars December 31, 2022 Charged to Earnings Write-offs Foreign Currency Other (1) March 31, 2023 Accounts receivable allowance North America $ 6 $ (1) $ (1) $ — $ — $ 4 EMEA 2 — — 1 (1) 2 Latin America 38 1 (1) 2 — 40 Asia 3 — — — — 3 Consolidated $ 49 $ — $ (2) $ 3 $ (1) $ 49 Financing receivable allowance Latin America $ 27 $ — $ — $ 1 $ — $ 28 Consolidated $ 76 $ — $ (2) $ 4 $ (1) $ 77 (1) Starting from the fourth quarter of 2022, accounts receivable allowance of our European major domestic appliance business is transferred to assets held for sale. For additional information, see Note 13 to the Consolidated Condensed Financial Statements. We recorded an immaterial amount of bad debt expense for the periods ended March 31, 2023 and December 31, 2022 , respectively. |
INVENTORIES
INVENTORIES | 3 Months Ended |
Mar. 31, 2023 | |
Inventory, Net [Abstract] | |
INVENTORIES | INVENTORIES The following table summarizes our inventories at March 31, 2023 and December 31, 2022: Millions of dollars March 31, 2023 December 31, 2022 Finished products $ 1,820 $ 1,580 Raw materials and work in process 531 509 Total Inventories $ 2,351 $ 2,089 |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 3 Months Ended |
Mar. 31, 2023 | |
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, 2023 and December 31, 2022: Millions of dollars March 31, 2023 December 31, 2022 Land $ 32 $ 32 Buildings 876 862 Machinery and equipment 6,260 6,016 Accumulated depreciation (5,064) (4,808) Property, plant and equipment, net $ 2,104 $ 2,102 During the three months ended March 31, 2023, we disposed of land, buildings, machinery and equipment with a net book value of $1 million, compared to $17 million in the same period of 2022. The net loss on the disposals was not material for the three months ended March 31, 2023. The net gain on the disposals of $57 million for the same period of 2022 was primarily driven by a sale-leaseback transaction. For additional information see Note 1 to the Consolidated Condensed Financial Statements. |
FINANCING ARRANGEMENTS
FINANCING ARRANGEMENTS | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
FINANCING ARRANGEMENTS | FINANCING ARRANGEMENTS Debt Offering On February 22, 2023, the Company completed its offering of $300 million aggregate principal amount of 5.5% Senior Notes due 2033 (the “2033 Notes”), in a public offering pursuant to a registration statement on Form S-3 (File No. 333-255372). The 2033 Notes were issued under an indenture (the “Indenture”), dated March 20, 2000, between the Company, as issuer, and U.S. Bank Trust Company, National Association (as successor to U.S. Bank, National Association and Citibank, N.A.), as trustee. The sale of the 2033 Notes was made pursuant to the terms of an Underwriting Agreement, dated February 14, 2023, with BNP Paribas Securities Corp., ING Financial Markets LLC, Mizuho Securities USA LLC, SMBC Nikko Securities America, Inc. and SG Americas Securities, LLC, as representatives of the several underwriters in connection with the offering and sales of the 2033 Notes. The Company used the net proceeds from the sale of the 2033 Notes to repay $250 million aggregate principal amount of 3.7% Notes which were paid on March 1, 2023, and for general corporate purposes. On May 4, 2022, the Company completed its offering of $300 million in principal amount of 4.7% Senior Notes due 2032 (the “2032 Notes”), in a public offering pursuant to a registration statement on Form S-3 (File No. 333-255372). The 2032 Notes were issued under the Indenture. The sale of the 2032 Notes was made pursuant to the terms of an Underwriting Agreement, dated May 2, 2022, among the Company, as issuer, and BNP Paribas Securities Corp., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, Mizuho Securities USA LLC and Wells Fargo Securities, LLC, as representatives of the several underwriters in connection with the offering and sales of the 2032 Notes. The 2032 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 2032 Notes to redeem $300 million aggregate principal amount of 4.7% Notes which were paid on June 1, 2022. Term Loan Agreement On September 23, 2022, Whirlpool Corporation (the “Company”) entered into a Term Loan Agreement by and among the Company, Sumitomo Mitsui Banking Corporation (“SMBC”), as Administrative Agent and Syndication Agent and as lender, and certain other financial institutions as lenders. SMBC, BNP Paribas, ING Bank N.V., Dublin Branch, Mizuho Bank, Ltd., and Societe Generale acted as Joint Lead Arrangers and Syndication Agents; The Bank of Nova Scotia and Bank of China, Chicago Branch acted as Documentation Agents; and SMBC acted as Sole Bookrunner for the Term Loan Agreement. The Term Loan Agreement provides for an aggregate lender commitment of $2.5 billion. The Company utilized proceeds from the term loan facility on a delayed draw basis to fund a majority of the $3.0 billion purchase price consideration for the Company’s acquisition from Emerson Corporation (“Emerson”) of Emerson’s InSinkErator business, as set forth in the Asset and Stock Purchase Agreement between Whirlpool and Emerson dated as of August 7, 2022 (the “Acquisition Agreement”). The term loan facility is divided into two tranches: a $1 billion tranche with a maturity date of April 30, 2024 and a $1.5 billion tranche with a maturity date of October 31, 2025. The interest and fee rates payable with respect to the term loan facility based on the Company's current debt rating are as follows: (1) the spread over secured overnight financing rate ("SOFR") for the 18-month tranche is 0.75%; (2) the spread over SOFR for the 3-year tranche is 1.00%; (3) the spread over prime for both tranches is zero; and (4) the ticking fee for both tranches is 0.10%, as of the date hereof. The Term Loan Agreement contains customary covenants and warranties including, among other things, a rolling twelve month interest coverage ratio required to be greater than or equal to 3.0 to 1.0 for each fiscal quarter. In addition, the covenants limit the Company's ability to (or to permit any subsidiaries to), subject to various exceptions and limitations: (i) merge with other companies; (ii) create liens on its property; and (iii) incur debt at the subsidiary level. We were in compliance with our interest coverage ratio under the term loan agreement as of March 31, 2023. The outstanding amount for this term loan at March 31, 2023 was $2.5 billion. Credit Facilities On May 3, 2022, the Company entered into a Fifth Amended and Restated Long-Term Credit Agreement (the “Amended Long-Term Facility”) by and among the Company, certain other borrowers, the lenders referred to therein, JPMorgan Chase Bank, N.A. as Administrative Agent, and Citibank, N.A., as Syndication Agent. BNP Paribas, Mizuho Bank, Ltd. and Wells Fargo Bank, National Association acted as Documentation Agents. JPMorgan Chase Bank, N.A., BNP Paribas Securities Corp., Citibank, N.A., Mizuho Bank, Ltd. and Wells Fargo Securities, LLC acted as Joint Lead Arrangers and Joint Bookrunners for the Amended Long-Term Facility. Consistent with the Company’s prior credit agreement, the Amended Long-Term Facility provides an aggregate borrowing capacity of $3.5 billion. The facility has a maturity date of May 3, 2027, unless earlier terminated. The interest rate payable with respect to the Amended Long-Term Facility reflect a decrease of 0.125% in the interest rate margin from the Company’s prior credit facility, and will be based on the Company’s current debt rating, Term SOFR (Secured Overnight Financing Rate) + 1.00% interest rate margin per annum (with a 0.10% SOFR spread adjustment) or the Alternate Base Rate + 0.00% per annum, at the Company’s election. The Amended Long-Term Facility contains customary covenants and warranties, such as, among other things, a rolling four quarter interest coverage ratio required to be greater than or equal to 3.0 as of the end of each fiscal quarter. The Amended Long-Term Facility also includes limitations on the Company’s ability to (or to permit any subsidiaries to), subject to various exceptions and limitations: (i) merge with other companies; (ii) create liens on its property; and (iii) incur debt at the subsidiary level. Many of the lenders have in the past performed, and may in the future from time to time perform, investment banking, financial advisory, lending and/or commercial banking services, or other services for Whirlpool Corporation and its subsidiaries, for which they have received, and may in the future receive, customary compensation and expense reimbursement. We were in compliance with our interest coverage ratio under the revolving credit facility as of March 31, 2023. In addition to the committed $3.5 billion Amended Long-Term Facility and the committed $2.5 billion term loan, we have committed credit facilities in Brazil and India. These committed credit facilities provide borrowings up to approximately $209 million at March 31, 2023 and $204 million at December 31, 2022, based on exchange rates then in effect, respectively. These committed credit facilities have maturities that run through 2024. We had $2.5 billion drawn on the committed credit facilities at March 31, 2023 and December 31, 2022, 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, 2023 and December 31, 2022: Millions of dollars March 31, 2023 December 31, 2022 Total notes payable $ 9 $ 4 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, 2023 | |
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 have resolved all potentially material claims and do not anticipate any additional material financial impacts related to this matter. 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, 2023. 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 2.2 billion Brazilian reais (approximately $428 million at March 31, 2023). 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 275 million Brazilian reais (approximately $54 million at March 31, 2023), 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 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 $313 million Brazilian reais (approximately $62 million at March 31, 2023). 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. 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. Legacy EMEA Legal Matters 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 focused primarily on manufacturer interactions with retailers, is ongoing. The Company is fully cooperating with this investigation. Although it is currently not possible to assess the impact, if any, that additional 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. The aggregate amount accrued by the Company related to legacy EMEA legal matters was $62 million as of March 31, 2023. Latin America Indirect Tax Review In the first quarter of 2023, we accrued an immaterial amount in our consolidated condensed financial statements related to prior-period Value Added Tax (VAT) remittances in our Latin America region. We are continuing to review the matter and any potential additional impacts, if any; such matter could have a material adverse effect on our financial statements in any particular reporting period. 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 and the dismissal was affirmed on appeal in July 2022. Plaintiffs filed a petition with the U.S. Supreme Court in January 2023 which was subsequently denied. 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. In the fourth quarter of 2022, we accrued an immaterial amount related to these claims in our financial statements. Additional claims may be filed related to this incident. Other Litigation See Note 11 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. Product Warranty 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 2023 2022 Balance at January 1 (1) $ 190 $ 286 Issuances/accruals during the period 58 71 Settlements made during the period/other (56) (79) Balance at March 31 $ 192 $ 278 Current portion $ 131 $ 187 Non-current portion 61 91 Total $ 192 $ 278 (1) Product warranty reserve of $59 million of our European major domestic appliance business has been transferred to liabilities held for sale in the fourth quarter of 2022. 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. 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, 2023 and December 31, 2022, the guaranteed amounts totaled 854 million Brazilian reais (approximately $168 million at March 31, 2023) and 1,122 million Brazilian reais (approximately $215 million at December 31, 2022), respectively. The fair value of these guarantees were nominal at March 31, 2023 and December 31, 2022. 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 $2.9 billion at March 31, 2023 and $2.9 billion at December 31, 2022, respectively. Our total short-term outstanding bank indebtedness under guarantees was nominal at both March 31, 2023 and December 31, 2022. |
PENSION AND OTHER POSTRETIREMEN
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS | 3 Months Ended |
Mar. 31, 2023 | |
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 2023 2022 2023 2022 2023 2022 Service cost $ 1 $ 1 $ 1 $ 1 $ — $ — Interest cost 29 20 6 4 2 2 Expected return on plan assets (36) (36) (6) (9) — — Amortization: Actuarial loss 9 15 2 3 — — Prior service credit — — — — (11) (12) Settlement and curtailment (gain) loss — — — 1 — — Net periodic benefit cost (credit) $ 3 $ — $ 3 $ — $ (9) $ (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 2023 2022 2023 2022 2023 2022 Operating profit (loss) $ 1 $ 1 $ 1 $ 1 $ — $ — Interest and sundry (income) expense 2 (1) 2 (1) (9) (10) Net periodic benefit cost $ 3 $ — $ 3 $ — $ (9) $ (10) |
HEDGES AND DERIVATIVE FINANCIAL
HEDGES AND DERIVATIVE FINANCIAL INSTRUMENTS | 3 Months Ended |
Mar. 31, 2023 | |
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. Outstanding notional amounts of cross-currency interest rate swap agreements were $618 million at March 31, 2023 and December 31, 2022, 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. There were no outstanding notional amounts of interest rate swap agreements at March 31, 2023 and December 31, 2022. We may enter into instruments that are designated and qualify as a net investment hedge to manage our exposure related to foreign currency denominated investments. 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 underlying 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 (Loss). There were no outstanding notional amounts of net investment hedges as of March 31, 2023 and December 31, 2022. The following table summarizes our outstanding derivative contracts and their effects in our Consolidated Condensed Balance Sheets at March 31, 2023 and December 31, 2022. Hedge assets and liabilities of our European major domestic appliance business have been classified as held for sale and are excluded from the table below. Fair Value of Notional Amount Hedge Assets Hedge Liabilities Maximum Term (Months) Millions of dollars 2023 2022 2023 2022 2023 2022 2023 2022 Derivatives accounted for as hedges (1) Commodity swaps/options $ 220 $ 170 $ 4 $ 7 $ 15 $ 17 (CF) 21 24 Foreign exchange forwards/options 1,094 998 17 24 27 20 (CF/NI) 15 15 Cross-currency swaps 618 618 5 5 46 42 (CF) 71 74 Total derivatives accounted for as hedges $ 26 $ 36 $ 88 $ 79 Derivatives not accounted for as hedges Commodity swaps/options $ — $ 1 $ — $ — $ — $ — N/A 0 0 Foreign exchange forwards/options 331 439 — 5 1 6 N/A 5 5 Total derivatives not accounted for as hedges — 5 1 6 Total derivatives $ 26 $ 41 $ 89 $ 85 Current $ 25 $ 40 $ 40 $ 41 Noncurrent 1 1 49 44 Total derivatives $ 26 $ 41 $ 89 $ 85 (1) Derivatives accounted for as hedges are considered cash flow (CF) hedges. The following tables summarize the effects of derivative instruments on our Consolidated Condensed Statements of Comprehensive Income (Loss) for the periods presented: Three Months Ended March 31, Gain (Loss) (2) Millions of dollars 2023 2022 Cash flow hedges Commodity swaps/options $ — $ 39 Foreign exchange forwards/options (20) (43) Cross-currency swaps (1) 8 Interest rate derivatives (1) 23 Net Investment hedges Foreign currency — (16) (22) 11 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 2023 2022 Commodity swaps/options Cost of products sold $ — $ 18 Foreign exchange forwards/options Net sales — — Foreign exchange forwards/options Cost of products sold (8) (5) Foreign exchange forwards/options Interest and sundry (income) expense 9 29 Cross-currency swaps Interest and sundry (income) expense (7) 41 Interest rate derivatives Interest expense — — (6) 83 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 2023 2022 Foreign exchange forwards/options Interest and sundry (income) expense $ 13 $ (16) (2) Change in gain (loss) recognized in OCI (effective portion) for the three months ended March 31, 2023 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 $5 million and $19 million for the three months ended March 31, 2023 and 2022, respectively. The tax impact of the net investment hedges was $0 million and $3 million for the three months ended March 31, 2023 and 2022, respectively. (3) Change in gain (loss) reclassified from OCI into earnings (effective portion) for the three months ended March 31, 2023 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, 2023, and 2022. There were no hedges designated as fair value for the periods ended March 31, 2023, and 2022. 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 $20 million at March 31, 2023. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 31, 2023 | |
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, 2023 and December 31, 2022: Fair Value Millions of dollars Total Cost Basis Level 1 Level 2 Total Measured at fair value on a recurring basis: 2023 2022 2023 2022 2023 2022 2023 2022 Short-term investments (1) $ 985 $ 1,209 $ 773 $ 934 $ 212 $ 275 $ 985 $ 1,209 Net derivative contracts — — — — (63) (44) (63) (44) (1) Short-term investments are primarily comprised of money market funds and highly liquid, low risk investments with initial maturities less than 90 days. European Major Domestic Appliance Business Held for Sale On January 16, 2023, the Company entered into a contribution agreement with Arçelik A.Ş (“Arcelik”). Under the terms of the agreement, Whirlpool will contribute its European major domestic appliance business, and Arcelik will contribute its European major domestic appliance, consumer electronics, air conditioning, and small domestic appliance businesses into the newly formed entity of which Whirlpool will own 25% and Arcelik 75%. On December 20, 2022, the Company's board authorized the transaction with Arcelik and the European major domestic appliance business was classified as held for sale during the fourth quarter of 2022. The disposal group was measured at fair value less cost to sell. We used a discounted cash flow analysis and multiple market data points in our analysis to determine fair value (Level 3 input) of the 25% interest retained, resulting in an estimated fair value of $143 million. The discounted cash flow analysis utilized a discount rate of 16.5%. During the three months ended March 31, 2023, we recorded an increase of $222 million to the loss on sale and disposal of businesses. The adjustment reflects ongoing reassessment of the fair value less costs to sell of the disposal group and transaction costs and will continue to be evaluated each reporting period until completion of the transaction. See Note 13 to the Consolidated Condensed Financial Statements for additional information. InSinkErator Acquisition On October 31, 2022, we completed the acquisition of the InSinkErator business pursuant to the terms of the Acquisition Agreement with Emerson. The acquisition has been accounted for as a business combination under the acquisition method of accounting. This requires allocation of the purchase price to the estimated fair values of the identifiable assets acquired and liabilities assumed, including goodwill and other intangible assets. The Company is in the process of finalizing third-party valuations for the purchase price allocation which are subject to change. The estimated value of property, plant and equipment included adjustments totaling $36 million to increase the net book value to the preliminary fair value estimate of $174 million. The fair value of property, plant and equipment was determined using both a cost and market approach. The model used primarily included Level 2 and 3 inputs. This estimate is based on other comparable acquisitions and historical experience, and preliminary expectations as to the duration of time we expect to realize benefits from those assets. The estimated value of inventory included adjustments totaling $10 million to step-up inventory to an estimated fair value of $93 million. The fair value of inventory was estimated using the comparative sales method. The model used primarily included Level 2 and 3 inputs. To estimate the fair value of inventory, we considered the components of InSinkErator’s inventory, as well as estimates of selling prices and selling and distribution costs that were based on InSinkErator’s historical experience. The estimated fair values of identifiable intangible assets acquired were prepared using an income valuation approach, which requires a forecast of expected future revenues, future cash flows and discount rates (Level 3 inputs), either through the use of the relief-from-royalty method, the multi-period excess earnings method or the with and without method. During the first quarter of 2023, Whirlpool finalized the total consideration paid for the InSinkErator business and processed applicable measurement period adjustments. The purchase accounting adjustments during the period were not material. The Company expects to finalize any further purchase accounting adjustments as soon as practicable, but no later than one year from the acquisition date. See Note 13 to the Consolidated Condensed Financial Statements for additional information. Other Fair Value Measurements The fair value of long-term debt (including current maturities) was $7.2 billion and $7.0 billion at March 31, 2023 and December 31, 2022, 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, 2023 | |
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, 2022 $ 2,506 $ 8,261 $ (2,090) $ (3,949) $ 114 $ 170 Comprehensive income (loss) Net earnings (loss) (176) (179) — — — 3 Other comprehensive income (1) — (1) — — — Comprehensive income (loss) (177) (179) (1) — — 3 Stock issued (repurchased) 2 — — 2 — — Dividends declared (97) (97) — — — — Balances, March 31, 2023 2,234 7,985 (2,091) (3,947) 114 173 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 (loss) Net earnings (loss) 316 313 — — — 3 Other comprehensive income 58 — 58 — — — Comprehensive income (loss) 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 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, 2023 2022 Millions of dollars Pre-tax Tax Effect Net Pre-tax Tax Effect Net Currency translation adjustments $ (1) — $ (1) $ 105 3 $ 108 Cash flow hedges (16) 5 (11) (56) 19 (37) Pension and other postretirement benefits plans 13 (2) 11 (15) 2 (13) Other comprehensive income (loss) (4) 3 (1) 34 24 58 Less: Other comprehensive income (loss) available to noncontrolling interests — — — — — — Other comprehensive income (loss) available to Whirlpool $ (4) $ 3 $ (1) $ 34 $ 24 $ 58 Reclassifications Out of Accumulated Other Comprehensive Income (Loss) There were no material net impacts of the reclassification adjustments out of accumulated other comprehensive income (loss) included in net earnings (loss) for the three months ended March 31, 2023: Net earnings (loss) per Share Diluted net earnings (loss) per share of common stock include the dilutive effect of stock options and other share-based compensation plans. Basic and diluted net earnings (loss) per share of common stock for the periods presented were calculated as follows: Three Months Ended March 31, Millions of dollars and shares 2023 2022 Numerator for basic and diluted earnings per share - Net earnings (loss) available to Whirlpool $ (179) $ 313 Denominator for basic earnings per share - weighted-average shares 54.8 58.3 Effect of dilutive securities - share-based compensation — 0.4 Denominator for diluted earnings per share - adjusted weighted-average shares 54.8 58.7 Anti-dilutive stock options/awards excluded from earnings per share 0.9 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, 2023, we did not repurchase any shares under these share repurchase programs. At March 31, 2023, there were approximately $2.6 billion in remaining funds authorized under this program. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income tax expense was $68 million for the three months ended March 31, 2023, compared to income tax expense of $106 million in the same period of 2022. For the three months ended March 31, 2023, the decrease in income tax expense from the prior period is primarily due to overall lower level of earnings and related tax expense, audits and settlements, and impacts of non-deductible charges, including loss on sale and disposal and non-deductible fines and penalties. 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 2023 2022 Earnings (Loss) before income taxes $ (109) $ 427 Income tax expense (benefit) computed at United States statutory tax rate (23) 90 State and local taxes, net of federal tax benefit 1 9 Valuation allowances 4 7 Audit and Settlements 20 — U.S. foreign income items, net of credits 2 (8) Non deductible impairments 50 — Non deductible fines and penalties 10 — Other 4 8 Income tax expense (benefit) computed at effective worldwide tax rates 68 106 (1) Prior year amounts on the table above have been reclassified to conform with current year presentation. 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. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 3 Months Ended |
Mar. 31, 2023 | |
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 2023 $ 2,747 $ 889 $ 757 $ 256 $ — $ 4,649 2022 2,791 1,084 760 285 — 4,920 Intersegment sales 2023 $ 58 $ 23 $ 377 $ 11 $ (469) $ — 2022 72 24 360 11 (467) — Depreciation and amortization 2023 $ 52 $ — $ 17 $ 5 $ 15 $ 89 2022 43 35 16 5 13 112 EBIT 2023 $ 274 $ 5 $ 39 $ 8 $ (359) $ (33) 2022 454 (27) 54 14 (32) 463 Total assets March 31, 2023 $ 11,052 $ 4,990 $ 4,498 $ 1,600 $ (5,276) $ 16,864 December 31, 2022 10,913 5,240 4,343 1,516 (4,888) 17,124 Capital expenditures 2023 $ 47 $ 19 $ 15 $ 3 $ 12 $ 96 2022 30 12 23 6 16 87 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 2023 2022 Items not allocated to segments: Restructuring charges $ — $ (5) Legacy EMEA legal matters (62) — Gain (loss) on sale and disposal of businesses (222) — Corporate expenses and other (75) (27) Total other/eliminations $ (359) $ (32) 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 2023 2022 Operating profit $ 43 $ 461 Interest and sundry (income) expense 77 (7) Equity method investment income (loss), net of tax 1 (5) Total EBIT $ (33) $ 463 Interest expense 75 41 Income tax expense 68 106 Net earnings (loss) $ (176) $ 316 Less: Net earnings available to noncontrolling interests 3 3 Net earnings (loss) available to Whirlpool $ (179) $ 313 |
ACQUISITIONS AND DIVESTITURES
ACQUISITIONS AND DIVESTITURES | 3 Months Ended |
Mar. 31, 2023 | |
Business Combination, Asset Acquisition, Discontinued Operations and Disposal Groups [Abstract] | |
ACQUISITIONS AND DIVESTITURES | ACQUISITIONS AND DIVESTITURES European Major Domestic Appliance Business Held for Sale On January 16, 2023, Whirlpool entered into a contribution agreement with Arçelik B.V. (“Arcelik”) to carve out and contribute our major domestic appliance European business operations into a newly formed European appliance company which constitutes a combination of Arcelik’s and Whirlpool's European businesses. Whirlpool will own approximately 25% and Arcelik will own approximately 75% of the European appliance company. Separately, Whirlpool agreed in principle to the sale of Whirlpool’s Middle East and Africa business to Arcelik. These transactions are collectively referred to as European major domestic appliance business. The sale includes the Company's major domestic appliance business in EMEA, including nine production sites. The transaction is subject to certain closing conditions and expected to be completed in the second half of 2023. European major domestic appliance business is reported within our EMEA reportable segment and met the criteria for held for sale accounting during the fourth quarter of 2022. The operations of the European disposal group did not meet the criteria to be presented as discontinued operations. Upon closing, the transaction will result in the deconsolidation of the European major appliances business. In connection with the sale, we recorded a loss on disposal of $1,521 million in the fourth quarter of 2022. The loss includes a write-down of the net assets of $1,151 million of the disposal group to a fair value of $139 million and also includes $393 million of cumulative currency translation adjustments, $98 million release of other comprehensive loss on pension and $18 million of other transaction related costs. No goodwill is included in the disposal group. We recorded an adjustment of $222 million during the three months ending March 31, 2023, primarily due to seasonal working capital fluctuations, which resulted in a total loss of $1,743 million for the transaction. This adjustment is recorded in the loss on sale and disposal of businesses and reflects transaction costs and ongoing reassessment of the fair value less costs to sell of the disposal group which will continue to be evaluated each reporting period until completion of the transaction. Both Whirlpool and the post-closing controlling interest shareholder retain an option for Arcelik to purchase the remaining equity interest in a newly formed European appliance company for fair value, which could be material to the financial statements of the Company, depending on the performance of the business. The following table presents the carrying amounts of the major classes of the disposal group's assets and liabilities as of March 31, 2023 and December 31, 2022, respectively. Millions of dollars March 31, 2023 December 31, 2022 Carrying amounts of major classes of assets Current Assets Cash and cash equivalents $ 95 $ 94 Accounts receivable, net of allowance of $33 and $32, respectively 792 667 Inventories 673 650 Prepaid and other current assets 128 145 Total current assets $ 1,688 $ 1,556 Property, net of accumulated depreciation of $1,666 and $1,648, respectively $ 854 $ 822 Right of use assets 155 163 Other intangibles, net of accumulated amortization of $144 and $141, respectively 282 279 Deferred income taxes 619 610 Other noncurrent assets 17 17 Total noncurrent assets $ 1,927 $ 1,891 Total assets $ 3,615 $ 3,447 Carrying amounts of major classes of liabilities Current liabilities Accounts payable $ 1,336 $ 1,394 Accrued expenses 169 152 Accrued advertising and promotions 152 172 Employee compensation 117 107 Notes payable 6 3 Other current liabilities 111 125 Total current liabilities $ 1,891 $ 1,953 Noncurrent liabilities Long-term debt $ 1 $ 2 Pension benefits 107 122 Lease liabilities 125 131 Other noncurrent liabilities 97 88 Total noncurrent liabilities $ 330 $ 343 Total liabilities $ 2,221 $ 2,296 Total net assets of the disposal group classified as held for sale $ 1,394 $ 1,151 Assets held for sale Fair value of interest retained $ 143 $ 139 Liabilities held for sale Cumulative currency translation adjustment and Other comprehensive income on pension $ 461 $ 490 The following table summarizes European major appliances business' earnings (loss) available to Whirlpool before income taxes for the three months ended March 31, 2023 and March 31, 2022 respectively: Three Months Ended March 31, in millions 2023 2022 Earnings (loss) before income taxes $ — $ (30) Earnings (loss) before income taxes excludes intercompany other income and expense which eliminates at Total Whirlpool level. Additionally, the EMEA operating segment includes other businesses which are not classified as held for sale. InSinkErator Acquisition On August 7, 2022, the Company entered into an Asset and Stock Purchase Agreement (the “Purchase Agreement”) with Emerson Electric Co. (“Emerson”) to purchase Emerson’s InSinkErator business, a manufacturer of food waste disposers and instant hot water dispensers for home and commercial use, for a purchase price of $3 billion in cash, subject to customary adjustments. On October 31, 2022, we completed the acquisition of the InSinkErator business pursuant to the terms of the Purchase Agreement. We used the net proceeds from a $2.5 billion borrowing under our delayed draw term loan facility and $500 million of cash on hand to fund the acquisition. See Note 5 to the Consolidated Condensed Financial Statements for additional information about the term loan facility. Purchase Price Allocation The acquisition has been accounted for as a business combination under the acquisition method of accounting. This requires allocation of the purchase price to the estimated fair values of the identifiable assets acquired and liabilities assumed, including goodwill and other intangible assets. The Company is in the process of finalizing third-party valuations for the preliminary purchase price allocation which are subject to change. During the first quarter of 2023, Whirlpool finalized the total consideration paid for the InSinkErator business and processed applicable measurement period adjustments. An additional $14 million of consideration was paid for the InSinkErator business, which increased the amount of goodwill recognized as a result of the acquisition. Other purchase accounting adjustments during the period were not material. The Company expects to finalize any further purchase accounting adjustments as soon as practicable, but no later than one year from the acquisition date. The following table presents the preliminary allocation of purchase price related to the InSinkErator acquisition, as of March 31, 2023: (in millions) Amount Cash and cash equivalents $ 7 Receivables, net 74 Inventories 93 Other current assets 1 Property, plant and equipment, net 174 Goodwill 1,151 Other intangible assets 1,630 Other assets 11 Accounts payable 49 Accrued expenses 26 Other current liabilities 34 Deferred income taxes 1 Other long-term liabilities 10 Total Estimated Purchase Consideration $ 3,021 |
GOODWILL AND OTHER INTANGIBLES
GOODWILL AND OTHER INTANGIBLES | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLES | GOODWILL AND OTHER INTANGIBLES Goodwill The following table summarizes goodwill attributable to our reporting units for the periods presented: Millions of dollars North America Latin America Asia Total Whirlpool Beginning balance December 31, 2022 $ 2,829 $ 33 $ 452 $ 3,314 Acquisitions (1) 14 — — 14 Ending net balance March 31, 2023 $ 2,843 $ 33 $ 452 $ 3,328 (1) Increase in goodwill is related to the purchase of InSinkErator business. For additional information, see Notes 9 and 13 to the Consolidated Condensed Financial Statements. For the three months ended March 31, 2023, there no indicators of goodwill impairment for any of our reporting units based on our qualitative assessment. Other Intangible Assets The following table summarizes other intangible assets for the periods presented: March 31, 2023 December 31, 2022 Millions of dollars Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Other intangible assets, finite lives Customer relationships (1) $ 668 $ (296) $ 372 $ 668 $ (287) $ 381 Patents and other (2) 116 (114) 2 116 (113) 3 Total other intangible assets, finite lives $ 784 $ (410) $ 374 $ 784 $ (400) $ 384 Trademarks, indefinite lives 2,780 — 2,780 2,780 — 2,780 Total other intangible assets $ 3,564 $ (410) $ 3,154 $ 3,564 $ (400) $ 3,164 (1) Customer relationships have an estimated useful life of 5 to 19 years. (2) Patents and other intangibles have an estimated useful life of 3 to 43 years. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
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, 2022. 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. |
Reclassification | We are required to make estimates and assumptions that affect the amounts reported in the Consolidated Condensed Financial Statements and accompanying Notes. Actual results could differ materially from those estimates. |
Consolidation | We have eliminated all material intercompany transactions in our Consolidated Condensed Financial Statements. We do not consolidate the financial statements of any company in which we have an ownership interest of 50% or less, unless that company is deemed to be a variable interest entity ("VIE") of which we are the primary beneficiary. VIEs are consolidated when the company is the primary beneficiary of these entities and has the ability to directly impact the 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 continued experiencing 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 continue to closely monitor the ongoing conflict which could materially impact our financial results in the future. We have some sales and distribution operations in Ukraine, however, the revenues and net assets are not material to our EMEA operating segment and consolidated results. On June 27, 2022, our subsidiary Whirlpool EMEA SpA entered into a share purchase agreement with Arçelik A.Ş. (“Arcelik”) to sell our Russian business to Arcelik for contingent consideration. The sale of the Russian business was completed on August 31, 2022. Furthermore, macroeconomic volatility continues to impact countries across the world, and the duration and severity of the effects are currently unknown. The Consolidated Condensed Financial Statements presented herein reflect estimates and assumptions made by management at March 31, 2023. 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 25, 2023, including those resulting from the impacts of macroeconomic volatility 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. Our JennAir and Maytag trademarks continue to be at risk at March 31, 2023. The goodwill in our reporting units or other indefinite-lived intangible assets are not presently at risk for future impairment. The potential impact of demand disruptions, production impacts or supply constraints along with a number of other factors could negatively effect revenues for the JennAir and Maytag trademarks, but we remain committed to the strategic actions necessary to realize the long-term forecasted revenues and profitability of these trademarks. A lack of recovery or further deterioration in market conditions, a sustained trend of weaker than expected financial performance for our JennAir or Maytag trademarks, among other factors, as a result of the 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 2023. Income taxes |
Synthetic Lease Arrangements and Sale-leaseback Transaction | 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, 2023 and December 31, 2022, these arrangements include residual value guarantees of up to approximately $334 million and $334 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. 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 Comprehensive 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 | Supply Chain Financing Arrangements The Company has ongoing agreements globally with various third-parties to provide 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. Under these agreements, the average payment terms range from 120 to 180 days and are based on industry standards and best practices within each of our global regions. Whirlpool has no assets pledged as part of our global programs. We have no economic interest in the sale of these receivables and no direct financial relationship with the financial institutions concerning these services. For certain arrangements, the Company will guarantee receivables due from wholly-owned subsidiaries. Our obligations to suppliers, including amounts due and scheduled payment terms, are not impacted. All outstanding balances under these programs are recorded in accounts payable on our Consolidated Condensed Balance Sheets. Approximately $1.2 billion have been issued to participating financial institutions as of March 31, 2023 and $1.1 billion as of December 31, 2022, respectively, of which $408 million and $368 million, respectively, of the balance issued is related to our European major domestic appliance business which was classified as held for sale in the fourth quarter of 2022. 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. The following tables summarize balances and transactions with Whirlpool China and its subsidiaries during the periods presented. Millions of dollars March 31, 2023 December 31, 2022 Other noncurrent assets Carrying value of equity interest $ 203 $ 201 Accounts payable Outstanding amounts due $ 76 $ 75 Millions of dollars Three Months Ended March 31, 2023 2022 Purchases from Whirlpool China $ 59 $ 102 The licensing revenue and outstanding accounts receivable from Whirlpool China and its subsidiaries are not material for the periods presented. The market value of our 20% investment in Whirlpool China, based on the quoted market price, is $179 million as of March 31, 2023. Management has concluded that there are no indicators for an other-than-temporary impairment. |
Related Party Transactions | Related Party Transactions 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. 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 $30 million as of March 31, 2023 and $31 million as of December 31, 2022, 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 as of January 1, 2023: Standard Effective Date 2022-04 Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations January 1, 2023 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. Outstanding notional amounts of cross-currency interest rate swap agreements were $618 million at March 31, 2023 and December 31, 2022, 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. There were no outstanding notional amounts of interest rate swap agreements at March 31, 2023 and December 31, 2022. We may enter into instruments that are designated and qualify as a net investment hedge to manage our exposure related to foreign currency denominated investments. 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 underlying 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 (Loss). There were no outstanding notional amounts of net investment hedges as of March 31, 2023 and December 31, 2022. |
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. |
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, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Equity Method Investments | The following tables summarize balances and transactions with Whirlpool China and its subsidiaries during the periods presented. Millions of dollars March 31, 2023 December 31, 2022 Other noncurrent assets Carrying value of equity interest $ 203 $ 201 Accounts payable Outstanding amounts due $ 76 $ 75 Millions of dollars Three Months Ended March 31, 2023 2022 Purchases from Whirlpool China $ 59 $ 102 |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | We adopted the following standard as of January 1, 2023: Standard Effective Date 2022-04 Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations January 1, 2023 |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 12 to the Consolidated Condensed Financial Statements. Three Months Ended March 31, Millions of dollars 2023 2022 Major product categories: Laundry $ 1,295 $ 1,333 Refrigeration 1,372 1,528 Cooking 1,092 1,281 Dishwashing 432 450 Total major product category net sales $ 4,191 $ 4,592 Spare parts and warranties 236 234 Other 222 94 Total net sales $ 4,649 $ 4,920 |
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, 2023: Millions of dollars December 31, 2022 Charged to Earnings Write-offs Foreign Currency Other (1) March 31, 2023 Accounts receivable allowance North America $ 6 $ (1) $ (1) $ — $ — $ 4 EMEA 2 — — 1 (1) 2 Latin America 38 1 (1) 2 — 40 Asia 3 — — — — 3 Consolidated $ 49 $ — $ (2) $ 3 $ (1) $ 49 Financing receivable allowance Latin America $ 27 $ — $ — $ 1 $ — $ 28 Consolidated $ 76 $ — $ (2) $ 4 $ (1) $ 77 (1) Starting from the fourth quarter of 2022, accounts receivable allowance of our European major domestic appliance business is transferred to assets held for sale. For additional information, see Note 13 to the Consolidated Condensed Financial Statements. |
INVENTORIES (Tables)
INVENTORIES (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Inventory, Net [Abstract] | |
Schedule of Inventory | The following table summarizes our inventories at March 31, 2023 and December 31, 2022: Millions of dollars March 31, 2023 December 31, 2022 Finished products $ 1,820 $ 1,580 Raw materials and work in process 531 509 Total Inventories $ 2,351 $ 2,089 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | The following table summarizes our property, plant and equipment at March 31, 2023 and December 31, 2022: Millions of dollars March 31, 2023 December 31, 2022 Land $ 32 $ 32 Buildings 876 862 Machinery and equipment 6,260 6,016 Accumulated depreciation (5,064) (4,808) Property, plant and equipment, net $ 2,104 $ 2,102 |
FINANCING ARRANGEMENTS (Tables)
FINANCING ARRANGEMENTS (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Notes Payable | The following table summarizes the carrying value of notes payable at March 31, 2023 and December 31, 2022: Millions of dollars March 31, 2023 December 31, 2022 Total notes payable $ 9 $ 4 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 2023 2022 Balance at January 1 (1) $ 190 $ 286 Issuances/accruals during the period 58 71 Settlements made during the period/other (56) (79) Balance at March 31 $ 192 $ 278 Current portion $ 131 $ 187 Non-current portion 61 91 Total $ 192 $ 278 (1) |
PENSION AND OTHER POSTRETIREM_2
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 2023 2022 2023 2022 2023 2022 Service cost $ 1 $ 1 $ 1 $ 1 $ — $ — Interest cost 29 20 6 4 2 2 Expected return on plan assets (36) (36) (6) (9) — — Amortization: Actuarial loss 9 15 2 3 — — Prior service credit — — — — (11) (12) Settlement and curtailment (gain) loss — — — 1 — — Net periodic benefit cost (credit) $ 3 $ — $ 3 $ — $ (9) $ (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 2023 2022 2023 2022 2023 2022 Operating profit (loss) $ 1 $ 1 $ 1 $ 1 $ — $ — Interest and sundry (income) expense 2 (1) 2 (1) (9) (10) Net periodic benefit cost $ 3 $ — $ 3 $ — $ (9) $ (10) |
HEDGES AND DERIVATIVE FINANCI_2
HEDGES AND DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | The following table summarizes our outstanding derivative contracts and their effects in our Consolidated Condensed Balance Sheets at March 31, 2023 and December 31, 2022. Hedge assets and liabilities of our European major domestic appliance business have been classified as held for sale and are excluded from the table below. Fair Value of Notional Amount Hedge Assets Hedge Liabilities Maximum Term (Months) Millions of dollars 2023 2022 2023 2022 2023 2022 2023 2022 Derivatives accounted for as hedges (1) Commodity swaps/options $ 220 $ 170 $ 4 $ 7 $ 15 $ 17 (CF) 21 24 Foreign exchange forwards/options 1,094 998 17 24 27 20 (CF/NI) 15 15 Cross-currency swaps 618 618 5 5 46 42 (CF) 71 74 Total derivatives accounted for as hedges $ 26 $ 36 $ 88 $ 79 Derivatives not accounted for as hedges Commodity swaps/options $ — $ 1 $ — $ — $ — $ — N/A 0 0 Foreign exchange forwards/options 331 439 — 5 1 6 N/A 5 5 Total derivatives not accounted for as hedges — 5 1 6 Total derivatives $ 26 $ 41 $ 89 $ 85 Current $ 25 $ 40 $ 40 $ 41 Noncurrent 1 1 49 44 Total derivatives $ 26 $ 41 $ 89 $ 85 (1) Derivatives accounted for as hedges are considered cash flow (CF) hedges. |
Schedule of Effects of Derivative Instruments on Consolidated Statements of Income (Loss) | The following tables summarize the effects of derivative instruments on our Consolidated Condensed Statements of Comprehensive Income (Loss) for the periods presented: Three Months Ended March 31, Gain (Loss) (2) Millions of dollars 2023 2022 Cash flow hedges Commodity swaps/options $ — $ 39 Foreign exchange forwards/options (20) (43) Cross-currency swaps (1) 8 Interest rate derivatives (1) 23 Net Investment hedges Foreign currency — (16) (22) 11 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 2023 2022 Commodity swaps/options Cost of products sold $ — $ 18 Foreign exchange forwards/options Net sales — — Foreign exchange forwards/options Cost of products sold (8) (5) Foreign exchange forwards/options Interest and sundry (income) expense 9 29 Cross-currency swaps Interest and sundry (income) expense (7) 41 Interest rate derivatives Interest expense — — (6) 83 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 2023 2022 Foreign exchange forwards/options Interest and sundry (income) expense $ 13 $ (16) (2) Change in gain (loss) recognized in OCI (effective portion) for the three months ended March 31, 2023 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 $5 million and $19 million for the three months ended March 31, 2023 and 2022, respectively. The tax impact of the net investment hedges was $0 million and $3 million for the three months ended March 31, 2023 and 2022, respectively. (3) Change in gain (loss) reclassified from OCI into earnings (effective portion) for the three months ended March 31, 2023 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, 2023 | |
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, 2023 and December 31, 2022: Fair Value Millions of dollars Total Cost Basis Level 1 Level 2 Total Measured at fair value on a recurring basis: 2023 2022 2023 2022 2023 2022 2023 2022 Short-term investments (1) $ 985 $ 1,209 $ 773 $ 934 $ 212 $ 275 $ 985 $ 1,209 Net derivative contracts — — — — (63) (44) (63) (44) |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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, 2022 $ 2,506 $ 8,261 $ (2,090) $ (3,949) $ 114 $ 170 Comprehensive income (loss) Net earnings (loss) (176) (179) — — — 3 Other comprehensive income (1) — (1) — — — Comprehensive income (loss) (177) (179) (1) — — 3 Stock issued (repurchased) 2 — — 2 — — Dividends declared (97) (97) — — — — Balances, March 31, 2023 2,234 7,985 (2,091) (3,947) 114 173 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 (loss) Net earnings (loss) 316 313 — — — 3 Other comprehensive income 58 — 58 — — — Comprehensive income (loss) 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 |
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, 2023 2022 Millions of dollars Pre-tax Tax Effect Net Pre-tax Tax Effect Net Currency translation adjustments $ (1) — $ (1) $ 105 3 $ 108 Cash flow hedges (16) 5 (11) (56) 19 (37) Pension and other postretirement benefits plans 13 (2) 11 (15) 2 (13) Other comprehensive income (loss) (4) 3 (1) 34 24 58 Less: Other comprehensive income (loss) available to noncontrolling interests — — — — — — Other comprehensive income (loss) available to Whirlpool $ (4) $ 3 $ (1) $ 34 $ 24 $ 58 |
Schedule of Basic and Diluted Net Earnings (Loss) Per Share | Basic and diluted net earnings (loss) per share of common stock for the periods presented were calculated as follows: Three Months Ended March 31, Millions of dollars and shares 2023 2022 Numerator for basic and diluted earnings per share - Net earnings (loss) available to Whirlpool $ (179) $ 313 Denominator for basic earnings per share - weighted-average shares 54.8 58.3 Effect of dilutive securities - share-based compensation — 0.4 Denominator for diluted earnings per share - adjusted weighted-average shares 54.8 58.7 Anti-dilutive stock options/awards excluded from earnings per share 0.9 0.3 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 2023 2022 Earnings (Loss) before income taxes $ (109) $ 427 Income tax expense (benefit) computed at United States statutory tax rate (23) 90 State and local taxes, net of federal tax benefit 1 9 Valuation allowances 4 7 Audit and Settlements 20 — U.S. foreign income items, net of credits 2 (8) Non deductible impairments 50 — Non deductible fines and penalties 10 — Other 4 8 Income tax expense (benefit) computed at effective worldwide tax rates 68 106 (1) Prior year amounts on the table above have been reclassified to conform with current year presentation. |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 2023 $ 2,747 $ 889 $ 757 $ 256 $ — $ 4,649 2022 2,791 1,084 760 285 — 4,920 Intersegment sales 2023 $ 58 $ 23 $ 377 $ 11 $ (469) $ — 2022 72 24 360 11 (467) — Depreciation and amortization 2023 $ 52 $ — $ 17 $ 5 $ 15 $ 89 2022 43 35 16 5 13 112 EBIT 2023 $ 274 $ 5 $ 39 $ 8 $ (359) $ (33) 2022 454 (27) 54 14 (32) 463 Total assets March 31, 2023 $ 11,052 $ 4,990 $ 4,498 $ 1,600 $ (5,276) $ 16,864 December 31, 2022 10,913 5,240 4,343 1,516 (4,888) 17,124 Capital expenditures 2023 $ 47 $ 19 $ 15 $ 3 $ 12 $ 96 2022 30 12 23 6 16 87 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 2023 2022 Items not allocated to segments: Restructuring charges $ — $ (5) Legacy EMEA legal matters (62) — Gain (loss) on sale and disposal of businesses (222) — Corporate expenses and other (75) (27) Total other/eliminations $ (359) $ (32) 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 2023 2022 Operating profit $ 43 $ 461 Interest and sundry (income) expense 77 (7) Equity method investment income (loss), net of tax 1 (5) Total EBIT $ (33) $ 463 Interest expense 75 41 Income tax expense 68 106 Net earnings (loss) $ (176) $ 316 Less: Net earnings available to noncontrolling interests 3 3 Net earnings (loss) available to Whirlpool $ (179) $ 313 |
ACQUISITIONS AND DIVESTITURES (
ACQUISITIONS AND DIVESTITURES (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Business Combination, Asset Acquisition, Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Disposal Groups, Including Discontinued Operations | The following table presents the carrying amounts of the major classes of the disposal group's assets and liabilities as of March 31, 2023 and December 31, 2022, respectively. Millions of dollars March 31, 2023 December 31, 2022 Carrying amounts of major classes of assets Current Assets Cash and cash equivalents $ 95 $ 94 Accounts receivable, net of allowance of $33 and $32, respectively 792 667 Inventories 673 650 Prepaid and other current assets 128 145 Total current assets $ 1,688 $ 1,556 Property, net of accumulated depreciation of $1,666 and $1,648, respectively $ 854 $ 822 Right of use assets 155 163 Other intangibles, net of accumulated amortization of $144 and $141, respectively 282 279 Deferred income taxes 619 610 Other noncurrent assets 17 17 Total noncurrent assets $ 1,927 $ 1,891 Total assets $ 3,615 $ 3,447 Carrying amounts of major classes of liabilities Current liabilities Accounts payable $ 1,336 $ 1,394 Accrued expenses 169 152 Accrued advertising and promotions 152 172 Employee compensation 117 107 Notes payable 6 3 Other current liabilities 111 125 Total current liabilities $ 1,891 $ 1,953 Noncurrent liabilities Long-term debt $ 1 $ 2 Pension benefits 107 122 Lease liabilities 125 131 Other noncurrent liabilities 97 88 Total noncurrent liabilities $ 330 $ 343 Total liabilities $ 2,221 $ 2,296 Total net assets of the disposal group classified as held for sale $ 1,394 $ 1,151 Assets held for sale Fair value of interest retained $ 143 $ 139 Liabilities held for sale Cumulative currency translation adjustment and Other comprehensive income on pension $ 461 $ 490 The following table summarizes European major appliances business' earnings (loss) available to Whirlpool before income taxes for the three months ended March 31, 2023 and March 31, 2022 respectively: Three Months Ended March 31, in millions 2023 2022 Earnings (loss) before income taxes $ — $ (30) |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table presents the preliminary allocation of purchase price related to the InSinkErator acquisition, as of March 31, 2023: (in millions) Amount Cash and cash equivalents $ 7 Receivables, net 74 Inventories 93 Other current assets 1 Property, plant and equipment, net 174 Goodwill 1,151 Other intangible assets 1,630 Other assets 11 Accounts payable 49 Accrued expenses 26 Other current liabilities 34 Deferred income taxes 1 Other long-term liabilities 10 Total Estimated Purchase Consideration $ 3,021 |
GOODWILL AND OTHER INTANGIBLES
GOODWILL AND OTHER INTANGIBLES (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table summarizes goodwill attributable to our reporting units for the periods presented: Millions of dollars North America Latin America Asia Total Whirlpool Beginning balance December 31, 2022 $ 2,829 $ 33 $ 452 $ 3,314 Acquisitions (1) 14 — — 14 Ending net balance March 31, 2023 $ 2,843 $ 33 $ 452 $ 3,328 (1) Increase in goodwill is related to the purchase of InSinkErator business. For additional information, see Notes 9 and 13 to the Consolidated Condensed Financial Statements. |
Schedule of Finite-Lived Intangible Assets | The following table summarizes other intangible assets for the periods presented: March 31, 2023 December 31, 2022 Millions of dollars Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Other intangible assets, finite lives Customer relationships (1) $ 668 $ (296) $ 372 $ 668 $ (287) $ 381 Patents and other (2) 116 (114) 2 116 (113) 3 Total other intangible assets, finite lives $ 784 $ (410) $ 374 $ 784 $ (400) $ 384 Trademarks, indefinite lives 2,780 — 2,780 2,780 — 2,780 Total other intangible assets $ 3,564 $ (410) $ 3,154 $ 3,564 $ (400) $ 3,164 (1) Customer relationships have an estimated useful life of 5 to 19 years. |
Schedule of Indefinite-Lived Intangible Assets | The following table summarizes other intangible assets for the periods presented: March 31, 2023 December 31, 2022 Millions of dollars Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Other intangible assets, finite lives Customer relationships (1) $ 668 $ (296) $ 372 $ 668 $ (287) $ 381 Patents and other (2) 116 (114) 2 116 (113) 3 Total other intangible assets, finite lives $ 784 $ (410) $ 374 $ 784 $ (400) $ 384 Trademarks, indefinite lives 2,780 — 2,780 2,780 — 2,780 Total other intangible assets $ 3,564 $ (410) $ 3,154 $ 3,564 $ (400) $ 3,164 (1) Customer relationships have an estimated useful life of 5 to 19 years. |
BASIS OF PRESENTATION - Narrati
BASIS OF PRESENTATION - Narrative (Details) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 USD ($) renewal_option | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Schedule of Equity Method Investments [Line Items] | |||
Residual value guarantees | $ 334 | $ 334 | |
Sale leaseback, net proceeds | $ 52 | ||
Annual rent payment | $ 2 | ||
Lease term | 15 years | ||
Number of options to extend lease | renewal_option | 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 | 1,200 | 1,100 | |
Finite-lived intangible assets, net | 374 | 384 | |
Held-for-sale | European Major Domestic Appliance Business | |||
Schedule of Equity Method Investments [Line Items] | |||
Accounts payable outsourcing | 408 | 368 | |
Customer Relationships | |||
Schedule of Equity Method Investments [Line Items] | |||
Finite-lived intangible assets, net | 372 | 381 | |
Elica PB India | Customer Relationships | |||
Schedule of Equity Method Investments [Line Items] | |||
Finite-lived intangible assets, net | $ 30 | $ 31 | |
Whirlpool China | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity interest percentage | 20% | ||
Equity method investment, quoted market value | $ 179 | ||
Elica PB India | Whirlpool India | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity interest percentage | 87% |
BASIS OF PRESENTATION - Schedul
BASIS OF PRESENTATION - Schedule of Equity Method Investments (Details) - Whirlpool China - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Schedule of Equity Method Investments [Line Items] | |||
Purchases from Whirlpool China | $ 59 | $ 102 | |
Other noncurrent assets | |||
Schedule of Equity Method Investments [Line Items] | |||
Carrying value of equity interest | 203 | $ 201 | |
Accounts payable | |||
Schedule of Equity Method Investments [Line Items] | |||
Outstanding amounts due | $ 76 | $ 75 |
REVENUE RECOGNITION - Schedule
REVENUE RECOGNITION - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 4,649 | $ 4,920 |
Laundry | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 1,295 | 1,333 |
Refrigeration | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 1,372 | 1,528 |
Cooking | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 1,092 | 1,281 |
Dishwashing | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 432 | 450 |
Total major product category net sales | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 4,191 | 4,592 |
Spare parts and warranties | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 236 | 234 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 222 | $ 94 |
REVENUE RECOGNITION - Schedul_2
REVENUE RECOGNITION - Schedule of Allowance for Doubtful Accounts by Operating Segment (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Accounts receivable allowance | |
Balance at beginning of period | $ 49 |
Charged to Earnings | 0 |
Write-offs | (2) |
Foreign Currency | 3 |
Other | (1) |
Balance at end of period | 49 |
Financing receivable allowance | |
Balance at beginning of period | 76 |
Charged to Earnings | 0 |
Write-offs | (2) |
Foreign Currency | 4 |
Other | (1) |
Balance at end of period | 77 |
North America | |
Accounts receivable allowance | |
Balance at beginning of period | 6 |
Charged to Earnings | (1) |
Write-offs | (1) |
Foreign Currency | 0 |
Other | 0 |
Balance at end of period | 4 |
EMEA | |
Accounts receivable allowance | |
Balance at beginning of period | 2 |
Charged to Earnings | 0 |
Write-offs | 0 |
Foreign Currency | 1 |
Other | (1) |
Balance at end of period | 2 |
Latin America | |
Accounts receivable allowance | |
Balance at beginning of period | 38 |
Charged to Earnings | 1 |
Write-offs | (1) |
Foreign Currency | 2 |
Other | 0 |
Balance at end of period | 40 |
Financing receivable allowance | |
Balance at beginning of period | 27 |
Charged to Earnings | 0 |
Write-offs | 0 |
Foreign Currency | 1 |
Other | 0 |
Balance at end of period | 28 |
Asia | |
Accounts receivable allowance | |
Balance at beginning of period | 3 |
Charged to Earnings | 0 |
Write-offs | 0 |
Foreign Currency | 0 |
Other | 0 |
Balance at end of period | $ 3 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Inventory, Net [Abstract] | ||
Finished products | $ 1,820 | $ 1,580 |
Raw materials and work in process | 531 | 509 |
Total Inventories | $ 2,351 | $ 2,089 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Property, Plant and Equipment [Line Items] | |||
Accumulated depreciation | $ (5,064,000,000) | $ (4,808,000,000) | |
Property, plant and equipment, net | 2,104,000,000 | 2,102,000,000 | |
Net book value of land, buildings, machinery and equipment disposals | 1,000,000 | $ 17,000,000 | |
Net gain (loss) on disposals of land, buildings, machinery and equipment | 0 | $ 57,000,000 | |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | 32,000,000 | 32,000,000 | |
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | 876,000,000 | 862,000,000 | |
Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | $ 6,260,000,000 | $ 6,016,000,000 |
FINANCING ARRANGEMENTS - Narrat
FINANCING ARRANGEMENTS - Narrative (Details) | 3 Months Ended | |||||||||
Sep. 23, 2022 USD ($) tranche | Aug. 07, 2022 USD ($) | May 03, 2022 USD ($) | May 02, 2022 USD ($) | Mar. 31, 2023 USD ($) | Feb. 22, 2023 USD ($) | Feb. 14, 2023 USD ($) | Dec. 31, 2022 USD ($) | May 04, 2022 USD ($) | Mar. 31, 2022 USD ($) | |
Accounts Receivable | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Cash proceeds from sale of transferred receivables | $ 51,000,000 | $ 0 | ||||||||
Outstanding receivables transferred under arrangements, continued services | 51,000,000 | $ 80,000,000 | ||||||||
Letter of Credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, maximum borrowing capacity | 209,000,000 | 204,000,000 | ||||||||
Emerson’s InSinkErator Business | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Business combination, consideration transferred | $ 3,000,000,000 | 14,000,000 | ||||||||
Line of Credit | Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Outstanding borrowings | 2,500,000,000 | $ 2,500,000,000 | ||||||||
5.500% Notes Maturing 2033 | Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, face amount | $ 300,000,000 | $ 250,000,000 | ||||||||
Debt instrument, interest rate, stated percentage | 5.50% | 3.70% | ||||||||
4.700% Notes Maturing 2032 | Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, face amount | $ 300,000,000 | $ 300,000,000 | ||||||||
Debt instrument, interest rate, stated percentage | 4.70% | 4.70% | ||||||||
Debt instrument, redemption price, percentage | 101% | |||||||||
Term Loan | Secured Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, face amount | $ 2,500,000,000 | |||||||||
Debt instrument, number of tranches | tranche | 2 | |||||||||
Debt instrument, ticking fee percentage | 10% | |||||||||
Minimum coverage ration for debt covenant | 3 | |||||||||
Outstanding borrowings | 2,500,000,000 | |||||||||
Term Loan | Secured Debt | Prime Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate | 0% | |||||||||
Term Loan, Tranche One | Secured Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, face amount | $ 1,000,000,000 | |||||||||
Debt instrument, term | 18 months | |||||||||
Term Loan, Tranche One | Secured Debt | Secured Overnight Financing Rate (SOFR) | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate | 0.75% | |||||||||
Term Loan, Tranche Two | Secured Debt | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, face amount | $ 1,500,000,000 | |||||||||
Debt instrument, term | 3 years | |||||||||
Term Loan, Tranche Two | Secured Debt | Secured Overnight Financing Rate (SOFR) | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate | 1% | |||||||||
Fifth Amended and Restated Long-Term Credit Agreement | Line of Credit | Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Minimum coverage ration for debt covenant | 3 | |||||||||
Line of credit facility, maximum borrowing capacity | $ 3,500,000,000 | $ 3,500,000,000 | ||||||||
Debt instrument, decrease in basis spread on variable rate | 0.125% | |||||||||
Fifth Amended and Restated Long-Term Credit Agreement | Line of Credit | Interest Rate Margin | Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate | 1% | |||||||||
Fifth Amended and Restated Long-Term Credit Agreement | Line of Credit | SOFR spread adjustment | Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate | 0.10% | |||||||||
Fifth Amended and Restated Long-Term Credit Agreement | Line of Credit | Alternate Base Rate | Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate | 0% |
FINANCING ARRANGEMENTS - Schedu
FINANCING ARRANGEMENTS - Schedule Of Notes Payable (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Disclosure [Abstract] | ||
Notes payable | $ 9 | $ 4 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Narrative (Details) € in Thousands, R$ in Millions | 1 Months Ended | 12 Months Ended | 24 Months Ended | ||||||
Dec. 31, 2020 defendant | Dec. 31, 2020 USD ($) | Dec. 31, 2020 EUR (€) | Dec. 31, 2009 USD ($) | Dec. 31, 2004 USD ($) | Mar. 31, 2023 BRL (R$) washingMachine lawsuit | Mar. 31, 2023 USD ($) washingMachine lawsuit | Dec. 31, 2022 BRL (R$) | Dec. 31, 2022 USD ($) | |
Commitments and Contingencies [Line Items] | |||||||||
Outstanding BEFIEX tax assessment | R$ 2200 | $ 428,000,000 | |||||||
Customer Lines of Credit for Brazilian Subsidiary | |||||||||
Commitments and Contingencies [Line Items] | |||||||||
Guarantor obligations, maximum exposure | R$ 854 | 168,000,000 | R$ 1122 | $ 215,000,000 | |||||
Guarantee of Indebtedness of Others | |||||||||
Commitments and Contingencies [Line Items] | |||||||||
Guarantor obligations, maximum exposure | $ 2,900,000,000 | $ 2,900,000,000 | |||||||
Pending Litigation | |||||||||
Commitments and Contingencies [Line Items] | |||||||||
Number of lawsuits | lawsuit | 2 | 2 | |||||||
Number of washing machines | washingMachine | 2 | 2 | |||||||
Grenfell Tower | |||||||||
Commitments and Contingencies [Line Items] | |||||||||
Number of defendants | defendant | 20 | ||||||||
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$ 275 | $ 54,000,000 | |||||||
CFC Tax | |||||||||
Commitments and Contingencies [Line Items] | |||||||||
CFC potential exposure | R$ 313 | 62,000,000 | |||||||
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 | |||||||
Litigation reserve | $ 62,000,000 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Schedule of Product Warranty Reserves (Details) - Product Warranty - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | |
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward] | |||
Balance at January 1 | $ 190 | $ 286 | |
Issuances/accruals during the period | 58 | 71 | |
Settlements made during the period/other | (56) | (79) | |
Balance at March 31 | 192 | $ 190 | 278 |
Current portion | 131 | 187 | |
Non-current portion | 61 | 91 | |
Total | $ 192 | 190 | $ 278 |
Held-for-sale | European Major Domestic Appliance Business | |||
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward] | |||
Liabilities classified to held for sale | $ 59 |
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, 2023 | Mar. 31, 2022 | |
Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 0 | $ 0 |
Interest cost | 2 | 2 |
Expected return on plan assets | 0 | 0 |
Amortization: | ||
Actuarial loss | 0 | 0 |
Prior service credit | (11) | (12) |
Settlement and curtailment (gain) loss | 0 | 0 |
Net periodic benefit cost (credit) | (9) | (10) |
United States Pension Benefits | Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 1 | 1 |
Interest cost | 29 | 20 |
Expected return on plan assets | (36) | (36) |
Amortization: | ||
Actuarial loss | 9 | 15 |
Prior service credit | 0 | 0 |
Settlement and curtailment (gain) loss | 0 | 0 |
Net periodic benefit cost (credit) | 3 | 0 |
Foreign Pension Benefits | Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 1 | 1 |
Interest cost | 6 | 4 |
Expected return on plan assets | (6) | (9) |
Amortization: | ||
Actuarial loss | 2 | 3 |
Prior service credit | 0 | 0 |
Settlement and curtailment (gain) loss | 0 | 1 |
Net periodic benefit cost (credit) | $ 3 | $ 0 |
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, 2023 | Mar. 31, 2022 | |
Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net periodic benefit cost | $ (9) | $ (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 | (9) | (10) |
United States Pension Benefits | Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net periodic benefit cost | 3 | 0 |
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 | 2 | (1) |
Foreign Pension Benefits | Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net periodic benefit cost | 3 | 0 |
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 | $ 2 | $ (1) |
HEDGES AND DERIVATIVE FINANCI_3
HEDGES AND DERIVATIVE FINANCIAL INSTRUMENTS - Narrative (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Derivative [Line Items] | ||
Loss expected to be reclassified in next twelve months | $ 20,000,000 | |
Derivatives accounted for as hedges | Cross-currency swaps | ||
Derivative [Line Items] | ||
Notional amount | 618,000,000 | $ 618,000,000 |
Derivatives accounted for as hedges | Interest rate derivatives | ||
Derivative [Line Items] | ||
Notional amount | 0 | 0 |
Derivatives accounted for as hedges | Net Investment hedges | ||
Derivative [Line Items] | ||
Notional amount | $ 0 | $ 0 |
HEDGES AND DERIVATIVE FINANCI_4
HEDGES AND DERIVATIVE FINANCIAL INSTRUMENTS - Schedule of Outstanding Derivative Contracts (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Derivatives, Fair Value [Line Items] | |||
Hedge Assets | $ 26 | $ 41 | |
Hedge Liabilities | 89 | 85 | |
Derivative asset at fair value, current | 25 | 40 | |
Derivative asset at fair value, noncurrent | 1 | 1 | |
Total derivatives, hedge assets at fair value | 26 | 41 | |
Derivative liability at fair value, current | 40 | 41 | |
Derivative liability at fair value, noncurrent | 49 | 44 | |
Total derivatives, hedge liabilities at fair value | 89 | 85 | |
Derivatives accounted for as hedges | |||
Derivatives, Fair Value [Line Items] | |||
Hedge Assets | 26 | 36 | |
Hedge Liabilities | 88 | 79 | |
Derivatives accounted for as hedges | Commodity swaps/options | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 220 | 170 | |
Hedge Assets | 4 | 7 | |
Hedge Liabilities | $ 15 | 17 | |
Maximum term of commodity swaps/options | 21 months | 24 months | |
Derivatives accounted for as hedges | Foreign exchange forwards/options | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | $ 1,094 | 998 | |
Hedge Assets | 17 | 24 | |
Hedge Liabilities | $ 27 | 20 | |
Maximum term of foreign exchange forwards/options | 15 months | 15 months | |
Derivatives accounted for as hedges | Cross-currency swaps | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | $ 618 | 618 | |
Hedge Assets | 5 | 5 | |
Hedge Liabilities | $ 46 | 42 | |
Maximum term of cross-currency swaps | 71 months | 74 months | |
Derivatives not accounted for as hedges | |||
Derivatives, Fair Value [Line Items] | |||
Hedge Assets | $ 0 | 5 | |
Hedge Liabilities | 1 | 6 | |
Derivatives not accounted for as hedges | Commodity swaps/options | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 0 | 1 | |
Hedge Assets | 0 | 0 | |
Hedge Liabilities | $ 0 | 0 | |
Maximum term of commodity swaps/options | 0 months | 0 months | |
Derivatives not accounted for as hedges | Foreign exchange forwards/options | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | $ 331 | 439 | |
Hedge Assets | 0 | 5 | |
Hedge Liabilities | $ 1 | $ 6 | |
Maximum term of foreign exchange forwards/options | 5 months | 5 months |
HEDGES AND DERIVATIVE FINANCI_5
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, 2023 | Mar. 31, 2022 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in OCI (Effective Portion) | $ (22) | $ 11 |
Gain (Loss) Reclassified from OCI into Earnings (Effective Portion) | (6) | 83 |
Foreign exchange | Interest and sundry (income) expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized on Derivatives not Accounted for as Hedges | 13 | (16) |
Cash flow hedges | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Tax impact of cash flow hedges | 5 | 19 |
Cash flow hedges | Commodity swaps/options | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in OCI (Effective Portion) | 0 | 39 |
Cash flow hedges | Commodity swaps/options | Cost of products sold | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Reclassified from OCI into Earnings (Effective Portion) | 0 | 18 |
Cash flow hedges | Foreign exchange | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in OCI (Effective Portion) | (20) | (43) |
Cash flow hedges | Foreign exchange | Cost of products sold | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Reclassified from OCI into Earnings (Effective Portion) | (8) | (5) |
Cash flow hedges | Foreign exchange | Net sales | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Reclassified from OCI into Earnings (Effective Portion) | 0 | 0 |
Cash flow hedges | Foreign exchange | Interest and sundry (income) expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Reclassified from OCI into Earnings (Effective Portion) | 9 | 29 |
Cash flow hedges | Cross-currency swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in OCI (Effective Portion) | (1) | 8 |
Cash flow hedges | Cross-currency swaps | Interest and sundry (income) expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Reclassified from OCI into Earnings (Effective Portion) | (7) | 41 |
Cash flow hedges | Interest rate derivatives | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in OCI (Effective Portion) | (1) | 23 |
Cash flow hedges | Interest rate derivatives | Interest expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Reclassified from OCI into Earnings (Effective Portion) | 0 | 0 |
Net Investment hedges | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Tax impact of net investment hedges | 0 | 3 |
Net Investment hedges | Foreign exchange | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in OCI (Effective Portion) | $ 0 | $ (16) |
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, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | $ 985 | $ 1,209 |
Net derivative contracts | (63) | (44) |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 773 | 934 |
Net derivative contracts | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 212 | 275 |
Net derivative contracts | (63) | (44) |
Total Cost Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 985 | 1,209 |
Net derivative contracts | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Narra
FAIR VALUE MEASUREMENTS - Narrative (Details) $ in Millions | 3 Months Ended | ||||
Oct. 31, 2022 USD ($) | Mar. 31, 2023 USD ($) | Jan. 16, 2023 | Dec. 31, 2022 USD ($) | Dec. 20, 2022 USD ($) | |
Held-for-sale | European Major Domestic Appliance Business | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Adjustment to loss on sale and disposal of business | $ 222 | ||||
Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Long-term debt, fair value | 7,200 | $ 7,000 | |||
Emerson’s InSinkErator Business | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Estimated value of property, plant and equipment, adjustment | $ 36 | ||||
Estimated value of property, plant and equipment | 174 | 174 | |||
Estimated value of inventory, adjustment | 10 | ||||
Inventories | $ 93 | $ 93 | |||
Newly Formed European Appliance Company | Arcelik B.V. | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Ownership percentage | 75% | ||||
Newly Formed European Appliance Company | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Equity interest percentage | 25% | ||||
Equity method investments | $ 143 | ||||
Newly Formed European Appliance Company | Valuation Technique, Discounted Cash Flow | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Equity method investments, measurement input | 0.165 |
STOCKHOLDERS' EQUITY - Schedule
STOCKHOLDERS' EQUITY - Schedule of Changes in Stockholders' Equity (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | $ 2,506 | $ 5,013 |
Comprehensive income (loss) | ||
Net earnings (loss) | (176) | 316 |
Other comprehensive income | (1) | 58 |
Comprehensive income (loss) | (177) | 374 |
Stock issued (repurchased) | 2 | (539) |
Dividends declared | (97) | (103) |
Ending balance | 2,234 | 4,745 |
Retained Earnings | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | 8,261 | 10,170 |
Comprehensive income (loss) | ||
Net earnings (loss) | (179) | 313 |
Comprehensive income (loss) | (179) | 313 |
Dividends declared | (97) | (103) |
Ending balance | 7,985 | 10,380 |
Accumulated Other Comprehensive Income (Loss) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | (2,090) | (2,357) |
Comprehensive income (loss) | ||
Other comprehensive income | (1) | 58 |
Comprehensive income (loss) | (1) | 58 |
Ending balance | (2,091) | (2,299) |
Treasury Stock / Additional Paid-In-Capital | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | (3,949) | (3,081) |
Comprehensive income (loss) | ||
Stock issued (repurchased) | 2 | (539) |
Ending balance | (3,947) | (3,620) |
Common Stock | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | 114 | 114 |
Comprehensive income (loss) | ||
Ending balance | 114 | 114 |
Non-Controlling Interest | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | 170 | 167 |
Comprehensive income (loss) | ||
Net earnings (loss) | 3 | 3 |
Other comprehensive income | 0 | 0 |
Comprehensive income (loss) | 3 | 3 |
Ending balance | $ 173 | $ 170 |
STOCKHOLDERS' EQUITY - Schedu_2
STOCKHOLDERS' EQUITY - Schedule of Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Pre-tax | $ (4) | $ 34 |
Tax Effect | 3 | 24 |
Net | (1) | 58 |
Currency translation adjustments | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Pre-tax | (1) | 105 |
Tax Effect | 0 | 3 |
Net | (1) | 108 |
Cash flow hedges | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Pre-tax | (16) | (56) |
Tax Effect | 5 | 19 |
Net | (11) | (37) |
Pension and other postretirement benefits plans | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Pre-tax | 13 | (15) |
Tax Effect | (2) | 2 |
Net | 11 | (13) |
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 | (4) | 34 |
Tax Effect | 3 | 24 |
Net | $ (1) | $ 58 |
STOCKHOLDERS' EQUITY - Schedu_3
STOCKHOLDERS' EQUITY - Schedule of Net Earnings (Loss) Per Share (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Stockholders' Equity Note [Abstract] | ||
Numerator for basic and diluted earnings per share - Net earnings (loss) available to Whirlpool | $ (179) | $ 313 |
Denominator for basic earnings per share – weighted-average shares (in shares) | 54.8 | 58.3 |
Effect of dilutive securities – share-based compensation (in shares) | 0 | 0.4 |
Denominator for diluted earnings per share – adjusted weighted-average shares (in shares) | 54.8 | 58.7 |
Anti-dilutive stock options/awards excluded from earnings per share (in shares) | 0.9 | 0.3 |
STOCKHOLDERS' EQUITY - Narrativ
STOCKHOLDERS' EQUITY - Narrative (Details) - Common Stock - USD ($) | 3 Months Ended | ||
Feb. 14, 2022 | Mar. 31, 2023 | Apr. 19, 2021 | |
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) | 0 | ||
Stock repurchase program, remaining authorized repurchase amount | $ 2,600,000,000 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense (benefit) | $ 68 | $ 106 | |
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, 2023 | Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Earnings (Loss) before income taxes | $ (109) | $ 427 |
Income tax expense (benefit) computed at United States statutory tax rate | (23) | 90 |
State and local taxes, net of federal tax benefit | 1 | 9 |
Valuation allowances | 4 | 7 |
Audit and Settlements | 20 | 0 |
U.S. foreign income items, net of credits | 2 | (8) |
Non deductible impairments | 50 | 0 |
Non deductible fines and penalties | 10 | 0 |
Other | 4 | 8 |
Income tax expense (benefit) | $ 68 | $ 106 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Segment Reporting Information [Line Items] | |||
Net sales | $ 4,649 | $ 4,920 | |
Depreciation and amortization | 89 | 112 | |
EBIT | (33) | 463 | |
Total assets | 16,864 | $ 17,124 | |
Capital expenditures | 96 | 87 | |
Restructuring charges | 0 | (5) | |
Gain (loss) on sale and disposal of businesses | (222) | 0 | |
Total other/eliminations | (33) | 463 | |
Operating profit | 43 | 461 | |
Interest and sundry (income) expense | 77 | (7) | |
Equity method investment income (loss), net of tax | 1 | (5) | |
Interest expense | 75 | 41 | |
Income tax expense (benefit) | 68 | 106 | |
Net earnings (loss) | (176) | 316 | |
Less: Net earnings (loss) available to noncontrolling interests | 3 | 3 | |
Net earnings (loss) available to Whirlpool | (179) | 313 | |
North America | |||
Segment Reporting Information [Line Items] | |||
Net sales | 2,747 | 2,791 | |
EMEA | |||
Segment Reporting Information [Line Items] | |||
Net sales | 889 | 1,084 | |
Latin America | |||
Segment Reporting Information [Line Items] | |||
Net sales | 757 | 760 | |
Asia | |||
Segment Reporting Information [Line Items] | |||
Net sales | 256 | 285 | |
Intersegment sales | |||
Segment Reporting Information [Line Items] | |||
Net sales | 469 | 467 | |
Intersegment sales | North America | |||
Segment Reporting Information [Line Items] | |||
Net sales | (58) | (72) | |
Intersegment sales | EMEA | |||
Segment Reporting Information [Line Items] | |||
Net sales | (23) | (24) | |
Intersegment sales | Latin America | |||
Segment Reporting Information [Line Items] | |||
Net sales | (377) | (360) | |
Intersegment sales | Asia | |||
Segment Reporting Information [Line Items] | |||
Net sales | (11) | (11) | |
Operating Segments | North America | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 52 | 43 | |
EBIT | 274 | 454 | |
Total assets | 11,052 | 10,913 | |
Capital expenditures | 47 | 30 | |
Total other/eliminations | 274 | 454 | |
Operating Segments | EMEA | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 0 | 35 | |
EBIT | 5 | (27) | |
Total assets | 4,990 | 5,240 | |
Capital expenditures | 19 | 12 | |
Total other/eliminations | 5 | (27) | |
Operating Segments | Latin America | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 17 | 16 | |
EBIT | 39 | 54 | |
Total assets | 4,498 | 4,343 | |
Capital expenditures | 15 | 23 | |
Total other/eliminations | 39 | 54 | |
Operating Segments | Asia | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 5 | 5 | |
EBIT | 8 | 14 | |
Total assets | 1,600 | 1,516 | |
Capital expenditures | 3 | 6 | |
Total other/eliminations | 8 | 14 | |
Other / Eliminations | |||
Segment Reporting Information [Line Items] | |||
Net sales | 0 | 0 | |
Depreciation and amortization | 15 | 13 | |
EBIT | (359) | (32) | |
Total assets | (5,276) | $ (4,888) | |
Capital expenditures | 12 | 16 | |
Restructuring charges | 0 | (5) | |
Legacy EMEA legal matters | (62) | 0 | |
Gain (loss) on sale and disposal of businesses | 222 | 0 | |
Corporate expenses and other | (75) | (27) | |
Total other/eliminations | $ (359) | $ (32) |
ACQUISITIONS AND DIVESTITURES -
ACQUISITIONS AND DIVESTITURES - European Major Domestic Appliance Business Held for Sale Narrative (Details) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Jan. 16, 2023 site | |
Held-for-sale | European Major Domestic Appliance Business | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Number of production sites | site | 9 | ||
Loss on sale and disposal of businesses | $ 1,743 | $ 1,521 | |
Loss (gain) on write-down of assets | 1,151 | ||
Fair value of interest retained | 143 | 139 | |
Cumulative foreign currency translation adjustments | 393 | ||
Release of other comprehensive loss on pension | 98 | ||
Other transaction related costs | $ 18 | ||
Adjustment to loss on sale and disposal of business | $ 222 | ||
Newly Formed European Appliance Company | Arcelik B.V. | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Ownership percentage | 75% | ||
Newly Formed European Appliance Company | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Equity interest percentage | 25% |
ACQUISITIONS AND DIVESTITURES_2
ACQUISITIONS AND DIVESTITURES - Schedule of European Major Domestic Appliance Business Held for Sale Assets and Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Current Assets | ||
Total current assets | $ 143 | $ 139 |
Noncurrent liabilities | ||
Total liabilities | 461 | 490 |
Held-for-sale | European Major Domestic Appliance Business | ||
Current Assets | ||
Cash included in assets held for sale | 95 | 94 |
Accounts receivable, net of allowance of $32 and $32, respectively | 792 | 667 |
Allowance for doubtful accounts | 33 | 32 |
Inventories | 673 | 650 |
Prepaid and other current assets | 128 | 145 |
Total current assets | 1,688 | 1,556 |
Noncurrent assets | ||
Property, net of accumulated depreciation of $1,666 and $1,648, respectively | 854 | 822 |
Accumulated depreciation | 1,666 | 1,648 |
Right of use assets | 155 | 163 |
Other intangibles, net of accumulated amortization of $144 and $141, respectively | 282 | 279 |
Accumulated amortization | 144 | 141 |
Deferred income taxes | 619 | 610 |
Other noncurrent assets | 17 | 17 |
Total noncurrent assets | 1,927 | 1,891 |
Total assets | 3,615 | 3,447 |
Current liabilities | ||
Accounts payable | 1,336 | 1,394 |
Accrued expenses | 169 | 152 |
Accrued advertising and promotions | 152 | 172 |
Employee compensation | 117 | 107 |
Notes payable | 6 | 3 |
Other current liabilities | 111 | 125 |
Total current liabilities | 1,891 | 1,953 |
Noncurrent liabilities | ||
Long-term debt | 1 | 2 |
Pension benefits | 107 | 122 |
Lease liabilities | 125 | 131 |
Other noncurrent liabilities | 97 | 88 |
Total noncurrent liabilities | 330 | 343 |
Total liabilities | 2,221 | 2,296 |
Total net assets of the disposal group classified as held for sale | 1,394 | 1,151 |
Fair value of interest retained | 143 | 139 |
Cumulative currency translation adjustment and Other comprehensive income on pension | $ 461 | $ 490 |
ACQUISITIONS AND DIVESTITURES_3
ACQUISITIONS AND DIVESTITURES - Schedule of European Major Domestic Appliance Business Held for Sale Earnings (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Held-for-sale | European Major Domestic Appliance Business | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Earnings (Loss) before income taxes | $ 0 | $ (30) |
ACQUISITIONS AND DIVESTITURES_4
ACQUISITIONS AND DIVESTITURES - InSinkErator Acquisition Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Oct. 31, 2022 | Aug. 07, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Business Acquisition [Line Items] | ||||
Net proceeds from borrowings of long-term debt | $ 303 | $ 0 | ||
Emerson’s InSinkErator Business | ||||
Business Acquisition [Line Items] | ||||
Payments to acquire businesses | $ 3,000 | |||
Payments to acquire businesses, cash on hand | $ 500 | |||
Business combination, consideration transferred | $ 3,000 | $ 14 | ||
Emerson’s InSinkErator Business | Term Loan | Secured Debt | ||||
Business Acquisition [Line Items] | ||||
Net proceeds from borrowings of long-term debt | $ 2,500 |
ACQUISITIONS AND DIVESTITURES_5
ACQUISITIONS AND DIVESTITURES - Schedule of InSinkErator Acquisition Assets and Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 | Oct. 31, 2022 |
Business Acquisition [Line Items] | |||
Goodwill | $ 3,328 | $ 3,314 | |
Emerson’s InSinkErator Business | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | 7 | ||
Receivables, net | 74 | ||
Inventories | 93 | $ 93 | |
Other current assets | 1 | ||
Property, plant and equipment, net | 174 | $ 174 | |
Goodwill | 1,151 | ||
Other intangible assets | 1,630 | ||
Other assets | 11 | ||
Accounts payable | 49 | ||
Accrued expenses | 26 | ||
Other current liabilities | 34 | ||
Deferred income taxes | 1 | ||
Other long-term liabilities | 10 | ||
Total Estimated Purchase Consideration | $ 3,021 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLES - Schedule of Goodwill by Segment (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | $ 3,314 |
Acquisitions | 14 |
Goodwill, ending balance | 3,328 |
North America | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 2,829 |
Acquisitions | 14 |
Goodwill, ending balance | 2,843 |
Latin America | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 33 |
Acquisitions | 0 |
Goodwill, ending balance | 33 |
Asia | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 452 |
Acquisitions | 0 |
Goodwill, ending balance | $ 452 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLES - Other Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | $ 784 | $ 784 |
Finite-lived intangible assets, accumulated amortization | (410) | (400) |
Finite-lived intangible assets, net | 374 | 384 |
Indefinite lived intangible assets, gross | 2,780 | 2,780 |
Indefinite lived intangible assets, accumulated amortization | 0 | 0 |
Indefinite lived intangible assets, net | 2,780 | 2,780 |
Intangible assets, gross | 3,564 | 3,564 |
Intangible assets, accumulated amortization | (410) | (400) |
Total other intangible assets | 3,154 | 3,164 |
Customer Relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 668 | 668 |
Finite-lived intangible assets, accumulated amortization | (296) | (287) |
Finite-lived intangible assets, net | $ 372 | 381 |
Customer Relationships | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset, useful life | 5 years | |
Customer Relationships | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset, useful life | 19 years | |
Patents and Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | $ 116 | 116 |
Finite-lived intangible assets, accumulated amortization | (114) | (113) |
Finite-lived intangible assets, net | $ 2 | $ 3 |
Patents and Other | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset, useful life | 3 years | |
Patents and Other | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset, useful life | 43 years |