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BENTON HARBOR, Mich., Jan. 26, 2022 /PRNewswire/ — Whirlpool Company ( NYSE: WHR), dedicated to being the most effective international kitchen and laundry firm, in fixed pursuit of enhancing life at residence, as we speak reported fourth quarter and full-year 2021 monetary outcomes.
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“We delivered document outcomes for the fourth consecutive 12 months, demonstrating our skill to execute in any difficult setting,” mentioned Marc Bitzer, chairman and chief govt officer of Whirlpool Company. “We count on one other 12 months of document efficiency, whereas rising natural development investments and returning one other roughly $1.5 billion in money to shareholders.” |
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MARC BITZER |
KEY RESULTS
|
Full Yr Outcomes |
2021 |
2020(5) |
Change |
|
|
Internet gross sales ($M) |
$21,985 |
$19,456 |
$2,529 |
13.0% |
|
Internet gross sales excluding foreign money ($M) |
$21,850 |
$19,456 |
$2,394 |
12.3% |
|
GAAP web earnings accessible to Whirlpool ($M) |
$1,783 |
$1,075 |
$708 |
65.9% |
|
Ongoing EBIT(2) ($M) |
$2,379 |
$1,760 |
$619 |
35.2% |
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GAAP earnings per diluted share |
$28.36 |
$16.98 |
$11.38 |
67.0% |
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Ongoing earnings per diluted share(1) |
$26.59 |
$18.46 |
$8.13 |
44.0% |
CASH FLOW
|
Full-Yr Adjusted Money Circulation |
2021 |
2020(5) |
Change |
|
Money offered by (utilized in) working actions ($M) |
$2,176 |
$1,500 |
$676 |
|
Adjusted free money move(4) ($M) |
$1,963 |
$1,246 |
$717 |
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“In 2021, we reported double digit income development of 13%, and we count on one other 12 months of robust development in 2022 of 5-6%,” mentioned Jim Peters, chief monetary officer of Whirlpool Company. “Our robust stability sheet and vital money move present us the pliability to proceed to spend money on worthwhile development and return money to shareholders.” |
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JIM PETERS |
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Fourth-Quarter Outcomes |
2021 |
2020(5) |
Change |
|
|
Internet gross sales ($M) |
$5,815 |
$5,798 |
$17 |
0.3% |
|
Internet gross sales excluding foreign money ($M) |
$5,850 |
$5,798 |
$52 |
0.9% |
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GAAP web earnings accessible to Whirlpool ($M) |
$298 |
$499 |
$(201) |
(40.3)% |
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Ongoing EBIT(2) ($M) |
$502 |
$659 |
$(157) |
(23.8)% |
|
GAAP earnings per diluted share |
$4.90 |
$7.80 |
$(2.90) |
(37.2)% |
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Ongoing earnings per diluted share(1) |
$6.14 |
$6.67 |
$(0.53) |
(7.9)% |
QUARTERLY HIGHLIGHTS
- Report This fall web gross sales, with 8% development in comparison with 2019
- Delivered This fall GAAP and ongoing (non-GAAP) earnings per diluted share(1) of $4.90 and $6.14, respectively, pushed by cost-based pricing actions, largely offsetting over $500 million of inflation, led by uncooked materials price will increase
- Repurchased $400 million of shares within the quarter
REGIONAL REVIEW
|
North America |
This fall 2021 |
This fall 2020(5) |
Change |
Change excluding foreign money impression |
|
Internet gross sales ($M) |
$3,291 |
$3,208 |
2.6% |
2.3% |
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EBIT(3) ($M) |
$504 |
$583 |
(13.6)% |
– |
- Report income pushed by robust execution of cost-based worth will increase whereas elevated provide constraints stay
- EBIT margin(3) of 15.3 p.c, in comparison with 18.2 p.c in the identical prior-year interval, impacted by provide constraints and inflation, partially offset by optimistic worth/combine
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Europe, Center East and Africa |
This fall 2021 |
This fall 2020 |
Change |
Change excluding foreign money impression |
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Internet gross sales ($M) |
$1,412 |
$1,416 |
(0.3)% |
1.9% |
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EBIT(3) ($M) |
$20 |
$40 |
(50.0)% |
– |
- EBIT margin(3) of 1.4 p.c, in comparison with 2.8 p.c in the identical prior-year interval, impacted by inflation, partially offset by cost-based worth will increase
- Lengthy-term turnaround is on observe
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Latin America |
This fall 2021 |
This fall 2020 |
Change |
Change excluding foreign money impression |
|
Internet gross sales ($M) |
$831 |
$821 |
1.2% |
2.4% |
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EBIT(3) ($M) |
$56 |
$100 |
(44.0)% |
– |
- Secure income primarily pushed by cost-based worth will increase
- EBIT margin(3) of 6.7 p.c, in comparison with 12.1 p.c in the identical prior-year interval, impacted by inflation and provide constraints, partially offset by cost-based worth will increase
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Asia |
This fall 2021 |
This fall 2020 |
Change |
Change excluding foreign money impression |
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Internet gross sales ($M) |
$281 |
$354 |
(20.6)% |
(19.6)% |
|
EBIT(3) ($M) |
$17 |
$21 |
(20.0)% |
– |
- High-line decline attributed to Whirlpool China divestiture(6)
- EBIT margin(3) of 5.9 p.c, in keeping with the identical prior-year interval with cost-based worth will increase offset by inflation
FULL-YEAR 2022 OUTLOOK
- Anticipate full-year 2022 web gross sales development of5 to six p.c
- Earnings per diluted share of $27.00 to $29.00 on a GAAP and ongoing foundation
- Money offered by working actions of $2.2 billion and free money move(4) of $1.5 billion
- GAAP and adjusted tax price (non-GAAP) of 24 to 26 p.c
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(1) |
A reconciliation of ongoing earnings per diluted share, a non-GAAP monetary measure, to reported web earnings per diluted share accessible to Whirlpool and different vital info, seems under. |
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(2) |
A reconciliation of earnings earlier than curiosity and taxes (EBIT) and ongoing EBIT, non-GAAP monetary measures, to reported web earnings accessible to Whirlpool, and a reconciliation of EBIT margin and ongoing EBIT margin, non-GAAP monetary measures, to web earnings margin and different vital info, seems under. |
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(3) |
Phase EBIT represents our consolidated EBIT damaged down by the Firm’s reportable segments and are metrics utilized by the chief working resolution maker in accordance with ASC 280. Consolidated EBIT additionally contains company “Different/Eliminations” of $(90) million and $(43) million for the fourth quarters of 2021 and 2020, respectively. |
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(4) |
Reconciliations of free money move and adjusted free money move, non-GAAP monetary measures, to money offered by (utilized in) working actions and different vital info, seems under. |
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(5) |
As adjusted reporting – efficient January 1, 2021, the Firm modified its accounting precept for stock valuation for inventories situated within the U.S. from a last-in, first-out (“LIFO”) foundation to a first-in, first-out (“FIFO”) foundation. All prior durations introduced have been retrospectively adjusted to use the consequences of the change. The data within the tables herein have been up to date to mirror the retrospective accounting change. For extra info see Notes 1 and 4 to Whirlpool’s Quarterly Report on Kind 10-Q for the quarter ended March 31, 2021. |
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(6) |
Partial tender provide by Galanz for majority possession of the Whirlpool China enterprise was closed Might 6, 2021. |
ABOUT WHIRLPOOL CORPORATION
Whirlpool Company ( NYSE: WHR) is dedicated to being the most effective international kitchen and laundry firm, in fixed pursuit of enhancing life at residence. In an more and more digital world, the corporate is driving purposeful innovation to fulfill the evolving wants of customers by its iconic model portfolio, together with Whirlpool, KitchenAid, Maytag, Consul, Brastemp, Amana, Bauknecht, JennAir, Indesit and Yummly. In 2021, the corporate reported roughly $22 billion in annual gross sales,69,000 staff and 54 manufacturing and expertise analysis facilities. Extra details about the corporate may be discovered at WhirlpoolCorp.com.
WEBSITE DISCLOSURE
We routinely publish vital info for buyers on our web site, WhirlpoolCorp.com, within the “Traders” part. We additionally intend to replace the “Sizzling Subjects Q&A” portion of this webpage as a method of revealing materials, personal info and for complying with our disclosure obligations beneath Regulation FD. Accordingly, buyers ought to monitor the “Traders” part of our web site, along with following our press releases, SEC filings, public convention calls, shows and webcasts. The data contained on, or that could be accessed by, our webpage just isn’t included by reference into, and isn’t part of, this doc.
WHIRLPOOL ADDITIONAL INFORMATION
This doc accommodates forward-looking statements about Whirlpool Company and its consolidated subsidiaries (“Whirlpool”) that talk solely as of this date. Whirlpool disclaims any obligation to replace these statements. Ahead-looking statements on this doc might embrace, however will not be restricted to, statements relating to future monetary outcomes, long-term worth creation targets, restructuring expectations, productiveness, uncooked materials costs and the impression of COVID-19 on our operations. Such statements may be recognized by way of terminology reminiscent of “might,” “may,” “will,” “ought to,” “attainable,” “plan,” “predict,” “forecast,” “potential,” “anticipate,” “estimate,” “count on,” “challenge,” “intend,” “imagine,” “might impression,” “on observe,” and comparable phrases or expressions. Many dangers, contingencies and uncertainties may trigger precise outcomes to vary materially from Whirlpool’s forward-looking statements. Amongst these elements are: (1) COVID-19 pandemic-related enterprise disruptions and financial uncertainty; (2) intense competitors within the residence equipment business reflecting the impression of each new and established international opponents, together with Asian and European producers, and the impression of the altering retail setting, together with direct-to-consumer gross sales; (3) Whirlpool’s skill to keep up or improve gross sales to vital commerce clients and the power of those commerce clients to keep up or improve market share; (4) Whirlpool’s skill to keep up its repute and model picture; (5) the power of Whirlpool to realize its enterprise aims and leverage its international working platform, and speed up the speed of innovation; (6) Whirlpool’s skill to grasp client preferences and efficiently develop new merchandise; (7) Whirlpool’s skill to acquire and defend mental property rights; (8) acquisition and investment-related dangers, together with dangers related to our previous acquisitions, and dangers related to our presence in rising markets; (9) dangers associated to our worldwide operations, together with adjustments in overseas rules, regulatory compliance and disruptions arising from political, authorized and financial instability; (10) info expertise system failures, knowledge safety breaches, knowledge privateness compliance, community disruptions, and cybersecurity assaults; (11) product legal responsibility and product recall prices; (12) the power of suppliers of vital elements, parts and manufacturing gear to ship enough portions to Whirlpool in a well timed and cost-effective method; (13) our skill to draw, develop and retain executives and different certified staff; (14) the impression of labor relations; (15) fluctuations in the price of key supplies (together with metal, resins, copper and aluminum) and parts and the power of Whirlpool to offset price will increase; (16) Whirlpool’s skill to handle overseas foreign money fluctuations; (17) impacts from goodwill impairment and associated costs; (18) triggering occasions or circumstances impacting the carrying worth of our long-lived belongings; (19) stock and different asset threat; (20) well being care price tendencies, regulatory adjustments and variations between outcomes and estimates that might improve future funding obligations for pension and postretirement profit plans; (21) adjustments in LIBOR, or substitute of LIBOR with an alternate reference price; (22) litigation, tax, and authorized compliance threat and prices, particularly if materially totally different from the quantity we count on to incur or have accrued for, and any disruptions brought on by the identical; (23) the consequences and prices of governmental investigations or associated actions by third events; (24) adjustments within the authorized and regulatory setting together with environmental, well being and security rules, and taxes and tariffs; and (25) the unsure international economic system and adjustments in financial circumstances which have an effect on demand for our merchandise. Extra info regarding these and different elements may be present in Whirlpool’s filings with the Securities and Change Fee, together with the latest annual report on Kind 10-Okay, quarterly reviews on Kind 10-Q, and present reviews on Kind 8-Okay.
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WHIRLPOOL CORPORATION |
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CONSOLIDATED CONDENSED STATEMENTS OF INCOME (UNAUDITED) |
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FOR THE PERIODS ENDED DECEMBER 31 |
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(Tens of millions of {dollars}, besides per share knowledge) |
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Three Months Ended |
Twelve Months Ended |
||||||
|
2021 |
2020 |
2021 |
2020 |
||||
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Internet gross sales |
$ 5,815 |
$ 5,798 |
$ 21,985 |
$ 19,456 |
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Bills |
|||||||
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Price of merchandise bought |
4,752 |
4,432 |
17,576 |
15,614 |
|||
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Gross margin |
1,063 |
1,366 |
4,409 |
3,842 |
|||
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Promoting, common and administrative |
555 |
523 |
2,081 |
1,877 |
|||
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Intangible amortization |
9 |
16 |
47 |
62 |
|||
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Restructuring prices |
4 |
102 |
38 |
288 |
|||
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Impairment of goodwill and different intangibles |
— |
7 |
— |
7 |
|||
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(Acquire) loss on sale and disposal of companies |
— |
— |
(105) |
(7) |
|||
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Working revenue |
495 |
718 |
2,348 |
1,615 |
|||
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Different (revenue) expense |
|||||||
|
Curiosity and varied (revenue) expense |
(18) |
17 |
(159) |
(21) |
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Curiosity expense |
42 |
46 |
175 |
189 |
|||
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Earnings earlier than revenue taxes |
471 |
655 |
2,332 |
1,447 |
|||
|
Earnings tax expense (profit) |
165 |
152 |
518 |
382 |
|||
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Fairness methodology funding revenue (loss), web of tax |
(6) |
— |
(8) |
— |
|||
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Internet earnings |
300 |
503 |
1,806 |
1,065 |
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Much less: Internet earnings (loss) accessible to noncontrolling |
2 |
4 |
23 |
(10) |
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Internet earnings accessible to Whirlpool |
$ 298 |
$ 499 |
$ 1,783 |
$ 1,075 |
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Per share of frequent inventory |
|||||||
|
Primary web earnings accessible to Whirlpool |
$ 4.96 |
$ 7.93 |
$ 28.73 |
$ 17.15 |
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Diluted web earnings accessible to Whirlpool |
$ 4.90 |
$ 7.80 |
$ 28.36 |
$ 16.98 |
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Dividends declared |
$ 1.40 |
$ 1.25 |
$ 5.45 |
$ 4.85 |
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Weighted-average shares excellent (in tens of millions) |
|||||||
|
Primary |
60.2 |
62.9 |
62.1 |
62.7 |
|||
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Diluted |
60.9 |
63.9 |
62.9 |
63.3 |
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WHIRLPOOL CORPORATION |
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CONSOLIDATED CONDENSED BALANCE SHEETS |
|||
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(Tens of millions of {dollars}, besides share knowledge) |
|||
|
December 31, 2021 |
December 31, 2020 |
||
|
(Unaudited) |
|||
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Belongings |
|||
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Present belongings |
|||
|
Money and money equivalents |
$ 3,044 |
$ 2,924 |
|
|
Accounts receivable, web of allowance of $98 and $132, respectively |
3,100 |
3,109 |
|
|
Inventories |
2,717 |
2,301 |
|
|
Pay as you go and different present belongings |
834 |
795 |
|
|
Complete present belongings |
9,695 |
9,129 |
|
|
Property, web of accrued depreciation of $6,619 and $6,780, respectively |
2,805 |
3,199 |
|
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Proper of use belongings |
946 |
989 |
|
|
Goodwill |
2,485 |
2,496 |
|
|
Different intangibles, web of accrued amortization of $522 and $673, respectively |
1,981 |
2,194 |
|
|
Deferred revenue taxes |
1,920 |
2,189 |
|
|
Different noncurrent belongings |
453 |
240 |
|
|
Complete belongings |
$ 20,285 |
$ 20,436 |
|
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Liabilities and stockholders’ fairness |
|||
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Present liabilities |
|||
|
Accounts payable |
$ 5,413 |
$ 4,834 |
|
|
Accrued bills |
609 |
637 |
|
|
Accrued promoting and promotions |
854 |
831 |
|
|
Worker compensation |
576 |
648 |
|
|
Notes payable |
10 |
12 |
|
|
Present maturities of long-term debt |
298 |
298 |
|
|
Different present liabilities |
750 |
1,070 |
|
|
Complete present liabilities |
8,510 |
8,330 |
|
|
Noncurrent liabilities |
|||
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Lengthy-term debt |
4,929 |
5,059 |
|
|
Pension advantages |
378 |
516 |
|
|
Postretirement advantages |
142 |
166 |
|
|
Lease liabilities |
794 |
838 |
|
|
Different noncurrent liabilities |
519 |
732 |
|
|
Complete noncurrent liabilities |
6,762 |
7,311 |
|
|
Stockholders’ fairness |
|||
|
Widespread inventory, $1 par worth, 250 million shares approved, 114 million and |
114 |
113 |
|
|
Extra paid-in capital |
3,025 |
2,923 |
|
|
Retained earnings |
10,170 |
8,725 |
|
|
Accrued different complete loss |
(2,357) |
(2,811) |
|
|
Treasury inventory, 55 million and 50 million shares, respectively |
(6,106) |
(5,065) |
|
|
Complete Whirlpool stockholders’ fairness |
4,846 |
3,885 |
|
|
Noncontrolling pursuits |
167 |
910 |
|
|
Complete stockholders’ fairness |
5,013 |
4,795 |
|
|
Complete liabilities and stockholders’ fairness |
$ 20,285 |
$ 20,436 |
|
|
WHIRLPOOL CORPORATION |
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CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED) |
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FOR THE PERIODS ENDED DECEMBER 31 |
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(Tens of millions of {dollars}) |
|||
|
Twelve Months Ended |
|||
|
2021 |
2020 |
||
|
Working actions |
|||
|
Internet earnings |
$ 1,806 |
$ 1,065 |
|
|
Changes to reconcile web earnings to money offered by (utilized in) working actions: |
|||
|
Depreciation and amortization |
494 |
568 |
|
|
Impairment of goodwill and different intangibles |
— |
7 |
|
|
(Acquire) loss on sale and disposal of companies |
(105) |
(7) |
|
|
(Acquire) loss on beforehand held fairness curiosity |
(42) |
— |
|
|
Adjustments in belongings and liabilities: |
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Accounts receivable |
(232) |
(940) |
|
|
Inventories |
(648) |
249 |
|
|
Accounts payable |
949 |
341 |
|
|
Accrued promoting and promotions |
70 |
(123) |
|
|
Accrued bills and present liabilities |
125 |
(287) |
|
|
Taxes deferred and payable, web |
130 |
154 |
|
|
Accrued pension and postretirement advantages |
(116) |
(30) |
|
|
Worker compensation |
16 |
303 |
|
|
Different |
(271) |
200 |
|
|
Money offered by (utilized in) working actions |
2,176 |
1,500 |
|
|
Investing actions |
|||
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Capital expenditures |
(525) |
(410) |
|
|
Proceeds from sale of belongings and companies |
302 |
166 |
|
|
Acquisition of companies, web of money acquired |
(46) |
— |
|
|
Money held by divested companies |
(393) |
— |
|
|
Different |
2 |
7 |
|
|
Money offered by (utilized in) investing actions |
(660) |
(237) |
|
|
Financing actions |
|||
|
Internet proceeds from borrowings of long-term debt |
300 |
1,033 |
|
|
Internet proceeds (repayments) of long-term debt |
(300) |
(569) |
|
|
Internet proceeds (repayments) from short-term borrowings |
(1) |
(330) |
|
|
Dividends paid |
(338) |
(311) |
|
|
Repurchase of frequent inventory |
(1,041) |
(121) |
|
|
Widespread inventory issued |
76 |
44 |
|
|
Different |
(35) |
1 |
|
|
Money offered by (utilized in) financing actions |
(1,339) |
(253) |
|
|
Impact of trade price adjustments on money, money equivalents and restricted money |
(67) |
(28) |
|
|
Enhance (lower) in money, money equivalents and restricted money |
110 |
982 |
|
|
Money, money equivalents and restricted money at starting of 12 months |
2,934 |
1,952 |
|
|
Money, money equivalents and restricted money at finish of interval |
$ 3,044 |
$ 2,934 |
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SUPPLEMENTAL INFORMATION – CONSOLIDATED FINANCIAL STATEMENTS RECONCILIATION
OF GAAP TO NON-GAAP FINANCIAL MEASURES
(Tens of millions of {dollars} besides per share knowledge)
(Unaudited)
We complement the reporting of our monetary info decided beneath U.S. typically accepted accounting ideas (GAAP) with sure non-GAAP monetary measures, a few of which we discuss with as “ongoing” measures, together with earnings earlier than curiosity and taxes (EBIT), EBIT margin, ongoing EBIT, ongoing EBIT margin, ongoing earnings per diluted share, natural web gross sales, adjusted efficient tax price, gross sales excluding foreign money and adjusted free money move. Ongoing measures exclude objects that might not be indicative of, or are unrelated to, outcomes from our ongoing operations and supply a greater baseline for analyzing tendencies in our underlying companies. Gross sales excluding overseas foreign money is calculated by translating the present interval web gross sales, in practical foreign money, to U.S. {dollars} utilizing the prior-year interval’s trade price in comparison with the prior-year interval web gross sales. Administration believes that gross sales excluding overseas foreign money supplies stockholders with a clearer foundation to evaluate our outcomes over time, excluding the impression of trade price fluctuations. Administration believes that adjusted tax price supplies buyers with a significant, constant comparability of the Firm’s efficient tax price, excluding the pre-tax revenue and tax impact of sure distinctive objects. Administration believes that adjusted free money move supplies buyers and stockholders with a related measure of liquidity and a helpful foundation for assessing the corporate’s skill to fund its actions and obligations. The Firm supplies adjusted free money move associated metrics, reminiscent of adjusted free money move as a share of web gross sales, as long-term administration targets, not a component of its annual monetary steerage, and as such doesn’t present a reconciliation of adjusted free money move to money offered by (utilized in) working actions, essentially the most instantly comparable GAAP measure, for these long-term objective metrics. Whirlpool doesn’t present a non-GAAP reconciliation for its forward-looking long-term worth creation targets, reminiscent of natural web gross sales, EBIT, adjusted free money move conversion, ROIC and gross debt/EBITDA, as these long-term administration targets will not be annual steerage, and the reconciliation of those long-term measures would depend on market elements and sure different circumstances and assumptions which might be exterior of the corporate’s management. We imagine that these non-GAAP measures present significant info to help buyers and stockholders in understanding our monetary outcomes and assessing our prospects for future efficiency, and mirror a further manner of viewing elements of our operations that, when seen with our GAAP monetary measures, present a extra full understanding of our enterprise. As a result of non-GAAP monetary measures will not be standardized, it might not be attainable to match these monetary measures with different corporations’ non-GAAP monetary measures having the identical or comparable names. These ongoing monetary measures shouldn’t be thought of in isolation or as an alternative to reported web earnings accessible to Whirlpool per diluted share, web earnings, web earnings accessible to Whirlpool, web earnings margin, web gross sales, efficient tax price and money offered by (utilized in) working actions, essentially the most instantly comparable GAAP monetary measures. We additionally disclose section EBIT as vital monetary metrics utilized by the Firm’s Chief Working Determination Maker to judge efficiency and allocate assets in accordance with ASC 280 – Phase Reporting. GAAP web earnings accessible to Whirlpool per diluted share and ongoing earnings per diluted share are introduced web of tax, whereas particular person changes in every reconciliation are introduced on a pre-tax foundation; the revenue tax impression line merchandise aggregates the tax impression for these changes. The tax impression of particular person line merchandise changes might not foot exactly to the mixture revenue tax impression quantity, as every line merchandise adjustment might embrace non-taxable parts. Historic quarterly earnings per share quantities are introduced based mostly on a normalized tax price adjustment to reconcile quarterly tax charges to full-year tax price expectations. We strongly encourage buyers and stockholders to overview our monetary statements and publicly-filed reviews of their entirety and to not depend on any single monetary measure.
FOURTH-QUARTER 2021 ONGOING EARNINGS BEFORE INTEREST AND TAXES AND ONGOING EARNINGS PER DILUTED SHARE
The reconciliation offered under reconciles the non-GAAP monetary measures ongoing earnings earlier than curiosity and taxes and ongoing earnings per diluted share, with essentially the most instantly comparable GAAP monetary measures, web earnings accessible to Whirlpool and web earnings per diluted share accessible to Whirlpool, for the three months ended December 31, 2021. Internet earnings margin is calculated by dividing web earnings accessible to Whirlpool by web gross sales. Ongoing EBIT margin is calculated by dividing ongoing EBIT by web gross sales. EBIT margin is calculated by dividing EBIT by web gross sales. The earnings per diluted share GAAP measure and ongoing measure are introduced web of tax, whereas every adjustment is introduced on a pre-tax foundation. Our fourth-quarter GAAP tax price was 35.0%. The combination revenue tax impression of the taxable parts of every adjustment is introduced within the revenue tax impression line merchandise at our fourth-quarter adjusted tax price (non-GAAP) of 18.1%.
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Three Months Ended |
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Earnings Earlier than Curiosity & Taxes Reconciliation: |
December 31, 2021 |
|
|
Internet earnings (loss) accessible to Whirlpool |
$ 298 |
|
|
Internet earnings (loss) accessible to noncontrolling pursuits |
2 |
|
|
Earnings tax expense (profit) |
165 |
|
|
Curiosity expense |
42 |
|
|
Earnings earlier than curiosity & taxes |
$ 507 |
|
|
Internet gross sales |
$ 5,815 |
|
|
Internet earnings margin |
5.1 |
% |
|
Outcomes classification |
Earnings earlier than curiosity & taxes |
Earnings per diluted share |
||||
|
Reported measure |
$ 507 |
$ 4.90 |
||||
|
Restructuring prices(a) |
Restructuring prices |
4 |
0.06 |
|||
|
Product guarantee and legal responsibility (revenue) expense(g) |
Price of merchandise bought |
(9) |
(0.15) |
|||
|
Earnings tax impression |
0.02 |
|||||
|
Normalized tax price adjustment(d) |
1.31 |
|||||
|
Ongoing measure |
$ 502 |
$ 6.14 |
||||
|
Internet gross sales |
$ 5,815 |
|||||
|
Ongoing EBIT margin |
8.6 |
% |
||||
|
Be aware: Numbers might not reconcile as a result of rounding |
FOURTH-QUARTER 2020 ONGOING EARNINGS BEFORE INTEREST AND TAXES AND ONGOING EARNINGS PER DILUTED SHARE
The reconciliation offered under reconciles the non-GAAP monetary measures ongoing earnings earlier than curiosity and taxes and ongoing earnings per diluted share, with essentially the most instantly comparable GAAP monetary measures, web earnings accessible to Whirlpool and web earnings per diluted share accessible to Whirlpool, for the three months ended December 31, 2020. Internet earnings margin is calculated by dividing web earnings accessible to Whirlpool by web gross sales. Ongoing EBIT margin is calculated by dividing ongoing EBIT by web gross sales. EBIT margin is calculated by dividing EBIT by web gross sales. The earnings per diluted share GAAP measure and ongoing measure are introduced web of tax, whereas every adjustment is introduced on a pre-tax foundation. Our fourth-quarter GAAP tax price was 23.2%. The combination revenue tax impression of the taxable parts of every adjustment is introduced within the revenue tax impression line merchandise at our fourth-quarter adjusted tax price (non-GAAP) of 30.0%.
|
Three Months Ended |
||
|
Earnings Earlier than Curiosity & Taxes Reconciliation: |
December 31, 2020(5) |
|
|
Internet earnings (loss) accessible to Whirlpool |
$ 499 |
|
|
Internet earnings (loss) accessible to noncontrolling pursuits |
4 |
|
|
Earnings tax expense (profit) |
152 |
|
|
Curiosity expense |
46 |
|
|
Earnings (loss) earlier than curiosity & taxes |
$ 701 |
|
|
Internet gross sales |
$ 5,798 |
|
|
Internet earnings margin |
8.6 |
% |
|
Outcomes classification |
Earnings earlier than curiosity & taxes(5) |
Earnings per diluted share(5) |
||||
|
Reported measure |
$ 701 |
$ 7.80 |
||||
|
Restructuring prices(a) |
Restructuring prices |
102 |
1.60 |
|||
|
Product guarantee and legal responsibility (revenue) expense(g) |
Price of merchandise bought |
(30) |
(0.46) |
|||
|
Sale leaseback, actual property and receivable changes(f) |
Price of merchandise bought |
(74) |
(1.16) |
|||
|
Sale leaseback, actual property and receivable changes(f) |
Promoting, common and administrative |
(39) |
(0.62) |
|||
|
Corrective motion restoration(e) |
Price of merchandise bought |
(1) |
(0.02) |
|||
|
Earnings tax impression |
— |
0.20 |
||||
|
Normalized tax price adjustment(d) |
— |
(0.67) |
||||
|
Ongoing measure |
$ 659 |
$ 6.67 |
||||
|
Internet gross sales |
$ 5,798 |
|||||
|
Ongoing EBIT margin |
11.4 |
% |
||||
|
Be aware: Numbers might not reconcile as a result of rounding |
FULL YEAR 2021 ONGOING EARNINGS BEFORE INTEREST AND TAXES AND ONGOING EARNINGS PER DILUTED SHARE
The reconciliation offered under reconciles the non-GAAP monetary measures ongoing earnings earlier than curiosity and taxes and ongoing earnings per diluted share, with essentially the most instantly comparable GAAP monetary measures, web earnings accessible to Whirlpool and web earnings per diluted share accessible to Whirlpool, for the twelve months ended December 31, 2021. Ongoing EBIT margin is calculated by dividing ongoing EBIT by web gross sales. EBIT margin is calculated by dividing EBIT by web gross sales. Internet earnings margin is calculated by dividing web earnings accessible to Whirlpool by web gross sales. The earnings per diluted share GAAP measure and ongoing measure are introduced web of tax, whereas every adjustment is introduced on a pre-tax foundation. Our full 12 months GAAP tax price was 22.2%. The combination revenue tax impression of the taxable parts of every adjustment is introduced within the revenue tax impression line merchandise at our full-year adjusted tax price (non-GAAP) of 23.5%.
|
Twelve Months Ended |
||
|
Earnings Earlier than Curiosity & Taxes Reconciliation: |
December 31, 2021 |
|
|
Internet earnings (loss) accessible to Whirlpool |
$ 1,783 |
|
|
Internet earnings (loss) accessible to noncontrolling pursuits |
23 |
|
|
Earnings tax expense (profit) |
518 |
|
|
Curiosity expense |
175 |
|
|
Earnings (loss) earlier than curiosity & taxes |
$ 2,499 |
|
|
Internet gross sales |
$ 21,985 |
|
|
Internet earnings margin |
8.1 |
% |
|
Outcomes classification |
Earnings earlier than curiosity & taxes |
Earnings per diluted share |
||||
|
Reported measure |
$ 2,499 |
$ 28.36 |
||||
|
Restructuring prices(a) |
Restructuring prices |
38 |
0.61 |
|||
|
(Acquire) loss on sale and disposal of companies(b) |
(Acquire) loss on sale and disposal of companies |
(107) |
(1.69) |
|||
|
(Acquire) loss on beforehand held fairness curiosity(c) |
(Acquire) loss on beforehand held fairness curiosity |
(42) |
(0.50) |
|||
|
Product guarantee and legal responsibility (revenue) expense(g) |
Price of merchandise bought |
(9) |
(0.14) |
|||
|
Earnings tax impression |
— |
0.41 |
||||
|
Normalized tax price adjustment(d) |
— |
(0.46) |
||||
|
Ongoing measure |
$ 2,379 |
$ 26.59 |
||||
|
Internet gross sales |
$ 21,985 |
|||||
|
Ongoing EBIT margin |
10.8 |
% |
||||
|
Be aware: Numbers might not reconcile as a result of rounding |
FULL YEAR 2020 ONGOING EARNINGS BEFORE INTEREST AND TAXES AND ONGOING EARNINGS PER DILUTED SHARE
The reconciliation offered under reconciles the non-GAAP monetary measures ongoing earnings earlier than curiosity and taxes and ongoing earnings per diluted share, with essentially the most instantly comparable GAAP monetary measures, web earnings accessible to Whirlpool and web earnings per diluted share accessible to Whirlpool, for the twelve months ended December 31, 2020. Ongoing EBIT margin is calculated by dividing ongoing EBIT by web gross sales. EBIT margin is calculated by dividing EBIT by web gross sales. Internet earnings margin is calculated by dividing web earnings accessible to Whirlpool by web gross sales. The earnings per diluted share GAAP measure and ongoing measure are introduced web of tax, whereas every adjustment is introduced on a pre-tax foundation. Our full 12 months GAAP tax price was 26.5%. The combination revenue tax impression of the taxable parts of every adjustment is introduced within the revenue tax impression line merchandise at our full-year adjusted tax price (non-GAAP) of 26.3%.
|
Twelve Months Ended |
||
|
Earnings Earlier than Curiosity & Taxes Reconciliation: |
December 31, 2020(5) |
|
|
Internet earnings (loss) accessible to Whirlpool |
$ 1,075 |
|
|
Internet earnings (loss) accessible to noncontrolling pursuits |
(10) |
|
|
Earnings tax expense (profit) |
382 |
|
|
Curiosity expense |
189 |
|
|
Earnings (loss) earlier than curiosity & taxes |
$ 1,636 |
|
|
Internet gross sales |
$ 19,456 |
|
|
Internet earnings margin |
5.5 |
% |
|
Outcomes classification |
Earnings earlier than curiosity & taxes(5) |
Earnings per diluted share(5) |
||||
|
Reported measure |
$ 1,636 |
$ 16.98 |
||||
|
Restructuring prices(a) |
Restructuring prices |
288 |
4.54 |
|||
|
Product guarantee and legal responsibility (revenue) expense(g) |
Price of merchandise bought |
(30) |
(0.47) |
|||
|
Sale leaseback, actual property and receivable changes(f) |
Price of merchandise bought |
(74) |
(1.16) |
|||
|
Sale leaseback, actual property and receivable changes(f) |
Promoting, common and administrative |
(39) |
(0.61) |
|||
|
Corrective motion restoration(e) |
Price of merchandise bought |
(14) |
(0.22) |
|||
|
(Acquire) loss on sale and disposal of companies(b) |
(Acquire) loss on sale and disposal of companies |
(7) |
(0.10) |
|||
|
Earnings tax impression |
— |
(0.53) |
||||
|
Normalized tax price adjustment(d) |
— |
0.03 |
||||
|
Ongoing measure |
$ 1,760 |
$ 18.46 |
||||
|
Internet gross sales |
$ 19,456 |
|||||
|
Ongoing EBIT margin |
9.0 |
% |
||||
|
Be aware: Numbers might not reconcile as a result of rounding |
|
FOOTNOTES |
|
|
a. |
RESTRUCTURING COSTS– In 2020, these prices had been primarily associated to actions that right-size and cut back the fastened price construction of our international enterprise, attributable primarily to the macroeconomic uncertainties brought on by COVID-19. This contains prices of roughly $100 million associated to restructuring in america and roughly $188 million associated to restructuring exterior of america, together with the exit of our Naples, Italy facility. In 2021, these prices had been primarily associated to actions that right-size and cut back the fastened price construction of our EMEA enterprise and different centralized features. |
|
b. |
(GAIN) LOSS ON SALE AND DISPOSAL OF BUSINESSES – On March 31, 2021, Galanz launched its partial tender provide for majority possession of Whirlpool China. Our subsidiary tendered roughly 31% of Whirlpool China’s excellent shares within the tender provide, with the rest representing a noncontrolling curiosity of roughly 20% in Whirlpool China. The transaction closed on Might 6, 2021. In reference to the closing of the transaction, we obtained money proceeds of $193 million and acknowledged a achieve on sale of $284 million. |
|
On Might 17, 2021, our subsidiary entered right into a share buy settlement to promote its Turkish subsidiary to Arçelik. As a part of the settlement, Arçelik assumed accountability for working the manufacturing website in Manisa, Turkey, following closing. The transaction closed on June 30, 2021. In reference to the closing of the transaction, we obtained money proceeds of $93 million and acknowledged a loss on sale of $164 million. In the course of the third quarter of 2021, quantities for working capital and different customary post-closing changes had been finalized and a further $13 million loss associated to the sale of enterprise was recorded. |
|
|
The web impression realized for achieve on sale and disposal of companies included within the revenue assertion for the twelve months ended December 31, 2021 is $105 million. |
|
|
In the course of the third quarter of 2019, the Firm reserved roughly $7 million for an anticipated change in buy worth for the sale of the Embraco compressor enterprise. Changes to the ultimate buy worth had been finalized as of the third quarter 2020, with no ensuing change to the ultimate buy worth, and the reserve was launched and acknowledged as a achieve through the quarter. |
|
|
c. |
(GAIN) LOSS ON PREVIOUSLY HELD EQUITY INTEREST -In the course of the third quarter of 2021, our subsidiary Whirlpool of India Ltd. acquired a further 38% fairness curiosity in Elica PB India Personal Restricted (Elica PB India) for $57 million, which resulted in a controlling fairness possession of roughly 87%. The beforehand held fairness curiosity of 49% in Elica PB India was remeasured at honest worth of $74 million on the acquisition date, which resulted in a achieve of $42 million. This achieve was recorded inside Curiosity & sundry (revenue) expense through the third quarter. The earnings per diluted share impression is calculated web of minority curiosity. |
|
d. |
NORMALIZED TAX RATE ADJUSTMENT– In the course of the fourth quarter of 2020, the Firm calculated ongoing earnings per share utilizing an adjusted tax price of 30.0%, to reconcile to our full-year 2020 efficient tax price of 26.3%. In the course of the fourth quarter of 2021, the Firm calculated ongoing earnings per share utilizing an adjusted tax price of 18.1% to reconcile to our full-year efficient tax price of 23.5%. |
|
e. |
CORRECTIVE ACTION RECOVERY– The Firm recorded a good thing about $13 million within the third quarter of 2020 and $1 million within the fourth quarter of 2020 associated to a vendor restoration in our ongoing EMEA-produced washer corrective motion. |
|
f. |
SALE LEASEBACK – Within the fourth quarter of 2020, the Firm bought and leased again a gaggle of properties for web proceeds of roughly $139 million. The transaction met the necessities on the market leaseback accounting. Within the fourth quarter of 2020, the Firm recorded the sale of the properties, which resulted in a pre-tax achieve of roughly $113 million ($89 million, web of tax) recorded in price of merchandise bought ($74 million) and promoting, common and administrative expense ($39 million) within the Consolidated Statements of Complete Earnings (Loss). |
|
g. |
PRODUCT WARRANTY AND LIABILITY (INCOME) EXPENSE – In January 2020, we commenced a product recall within the U.Okay. and Eire for EMEA-produced washers, for which the recall is ongoing. |
|
In the course of the fourth quarter of 2020, the Firm launched an accrual of roughly $30 million associated to this EMEA-produced washer recall marketing campaign. In the course of the fourth quarter of 2021, the Firm additional launched an accrual of roughly $9 million. These changes had been made based mostly on our revised expectations relating to future interval money expenditures for the marketing campaign. |
|
ADJUSTED FREE CASH FLOW
As outlined by the Firm, adjusted free money move is money offered by (utilized in) working actions after capital expenditures, proceeds from the sale of belongings and companies, and adjustments in restricted money. The reconciliation offered under reconciles twelve months ended December 31, 2021 and 2020 adjusted free money move with money offered by (utilized in) working actions, essentially the most instantly comparable GAAP monetary measure. Adjusted free money move as a share of web gross sales is calculated by dividing adjusted free money move by web gross sales.
|
Twelve Months Ended |
|||
|
December 31, |
|||
|
(tens of millions of {dollars}) |
2021 |
2020 |
|
|
Money offered by (utilized in) working actions |
$2,176 |
$1,500 |
|
|
Capital expenditures, proceeds from sale of belongings/companies and alter in restricted money |
(213) |
(254) |
|
|
Adjusted free money move |
$1,963 |
$1,246 |
|
|
Money offered by (utilized in) investing actions* |
(660) |
(237) |
|
|
Money offered by (utilized in) financing actions* |
(1,339) |
(253) |
|
FREE CASH FLOW
Free money move is money offered by (utilized in) working actions after capital expenditures. The reconciliation offered under reconciles full-year free money move with money offered by (utilized in) working actions, essentially the most instantly comparable GAAP monetary measure. Free money move as a share of web gross sales is calculated by dividing free money move by web gross sales.
|
Twelve Months Ended |
|||
|
December 31, |
|||
|
(tens of millions of {dollars}) |
2022* (Outlook) |
2021 |
|
|
Money offered by (utilized in) working actions |
$2,200 |
$2,176 |
|
|
Capital expenditures |
(700) |
(525) |
|
|
Free money move |
$1,500 |
$1,651 |
|
|
Money offered by (utilized in) investing actions* |
(660) |
||
|
Money offered by (utilized in) financing actions* |
(1,339) |
||
*Monetary steerage on a GAAP foundation for money offered by (utilized in) financing actions and money offered by (utilized in) investing actions has not been offered as a result of with a purpose to put together any such estimate or projection, the Firm would wish to depend on market elements and sure different circumstances and assumptions which might be exterior of its management.
SOURCE Whirlpool Company
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