Document

0000106640-18-000009.txt : 20180123 0000106640-18-000009.hdr.sgml : 20180123 20180123060548 ACCESSION NUMBER: 0000106640-18-000009 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20180123 ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20180123 DATE AS OF CHANGE: 20180123 FILER: COMPANY DATA: COMPANY CONFORMED NAME: WHIRLPOOL CORP /DE/ CENTRAL INDEX KEY: 0000106640 STANDARD INDUSTRIAL CLASSIFICATION: HOUSEHOLD APPLIANCES [3630] IRS NUMBER: 381490038 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-03932 FILM NUMBER: 18540992 BUSINESS ADDRESS: STREET 1: WHIRLPOOL CNTR 2000 M 63 STREET 2: C/O CORPORATE SECRETARY CITY: BENTON HARBOR STATE: MI ZIP: 49022-2692 BUSINESS PHONE: 2699235000 MAIL ADDRESS: STREET 1: WHIRLPOOL CTR 2000 M 63 STREET 2: C/O CORPORATE SECRETARY CITY: BENTON HARBOR STATE: MI ZIP: 49022-2692 FORMER COMPANY: FORMER CONFORMED NAME: WHIRLPOOL SEEGER CORP DATE OF NAME CHANGE: 19710824 8-K 1 whr12320188-k.htm 8-K Document

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported) January 23, 2018

WHIRLPOOL CORPORATION

(Exact name of registrant as Specified in Charter)



Delaware	1-3932	38-1490038
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

2000 North M-63, Benton Harbor, Michigan		49022-2692
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code (269) 923-5000

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:




¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨	Soliciting material pursuant to rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Item 7.01 Regulation FD Disclosure

On January 3, 2018, Whirlpool Corporation (the "Company") announced changes to its segment structure to align with the Company's new leadership reporting structure effective January 1, 2018. Beginning with fiscal year 2018, the Company will report its Mexico business as a part of its Latin America segment, and will shift certain adjacent business from the North America segment to the Asia segment. In addition the Company announced that it will report and guide segment results as earnings before interest and taxes (EBIT) to align with the Company's long-term metric. This change is also effective on January 1, 2018.

On January 23, 2018, the Company recast selected historical financial information to reflect the realignment of its external segment reporting, and to present segment results as EBIT. The historical financial information has been posted to the Company's website located at http://investors.whirlpoolcorp.com, and as exhibits to this Current Report on Form 8-K.

Unaudited, Recast Operating Segment Data

Exhibit 99.1, 99.2 and 99.3 to this Current Report on Form 8-K provide unaudited summary financial information reflecting the realignment of the Company's operating segments and presentation of the EBIT measure, each as described above, on the Company's historical segment results.

The changes in the segment structure affect only the manner in which the results for the Company's operating segments were previously reported. The description of the nature of the adjustments in Exhibit 99.2 has been previously disclosed as part of the supplemental information in the reconciliation of GAAP to non-GAAP financial measures in our quarterly earnings releases. The recast historical segment information has no impact on the Company's previously reported consolidated statements of income, balance sheets, statements of cash flows and statements of stockholders' equity. The information in this Current Report on Form 8-K, including Exhibit 99.1, 99.2 and 99.3, should be read in conjunction with the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2016, which was filed with the Securities and Exchange Commission on February 13, 2017, and subsequent Quarterly Reports on Form 10-Q.

The information in this Form 8-K, including the Exhibits hereto, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, regardless of any general incorporation language in such filing.

Item 9.01 Financial Statements and Exhibits

(d) The following exhibits are being filed herewith:



Exhibit No.	Exhibit

99.1	Recast Historical Segment Financial Data (unaudited)
99.2	Historical Ongoing EBIT Reconciliation (unaudited)
99.3	Net Earnings to EBIT Reconciliation (unaudited)

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: January 23, 2018 WHIRLPOOL CORPORATION

By: /s/ JAMES W. PETERS

Name: James W. Peters

Title: Executive Vice President and Chief Financial Officer

EX-99.1 2 a991recasthistoricalsegmen.htm EXHIBIT 99.1 Exhibit

RECAST HISTORICAL SEGMENT FINANCIAL DATA

(UNAUDITED)



Total Whirlpool	2017			2016					2015
Amounts in millions	Q1	Q2	Q3	Q1	Q2	Q3	Q4	Full Year	Q1	Q2	Q3	Q4	Full Year
Units Sold (in thousands)	16,161	17,679	18,134	15,802	17,292	17,950	20,648	71,692	16,250	16,657	17,440	19,925	70,272
Net Sales	4,786	5,347	5,418	4,616	5,198	5,248	5,656	20,718	4,846	5,208	5,277	5,560	20,891
Ongoing Net Sales (*)	4,786	5,379	5,418	4,616	5,198	5,248	5,656	20,718	4,846	5,208	5,277	5,560	20,891
Gross Margin	826	876	915	823	969	940	960	3,692	826	907	919	1,008	3,660
Gross Margin %	17.3%	16.4%	16.9%	17.8%	18.6%	17.9%	17.0%	17.8%	17.1%	17.4%	17.4%	18.1%	17.5%
Selling, General and Administrative Expenses	499	526	521	473	543	519	545	2,080	510	555	534	544	2,143
Earnings Before Interest and Taxes	239	251	310	253	327	344	351	1,275	250	315	308	323	1,196
EBIT Margin %	5.0%	4.7%	5.7%	5.5%	6.3%	6.6%	6.2%	6.2%	5.2%	6.1%	5.8%	5.8%	5.7%
Ongoing Earnings Before Interest and Taxes	285	350	355	309	401	388	413	1,511	279	336	398	431	1,445
Ongoing EBIT Margin %	6.0%	6.5%	6.6%	6.7%	7.7%	7.4%	7.3%	7.3%	5.7%	6.4%	7.5%	7.8%	6.9%
Depreciation and Amortization	163	156	168	168	164	164	159	655	161	170	165	172	668

RECAST HISTORICAL SEGMENT FINANCIAL DATA

(UNAUDITED)



North America	2017			2016					2015
Amounts in millions	Q1	Q2	Q3	Q1	Q2	Q3	Q4	Full Year	Q1	Q2	Q3	Q4	Full Year
Units Sold (in thousands)	5,931	6,839	7,274	5,521	6,124	6,755	8,133	26,533	5,327	5,889	6,317	7,257	24,790
Net Sales	2,446	2,833	2,854	2,289	2,611	2,713	2,928	10,541	2,221	2,549	2,663	2,722	10,155
Ongoing Net Sales	2,446	2,833	2,854	2,289	2,611	2,713	2,928	10,541	2,221	2,549	2,663	2,722	10,155
Gross Margin	444	541	532	406	524	530	533	1,993	397	460	514	525	1,896
Gross Margin %	18.2%	19.1%	18.6%	17.7%	20.1%	19.5%	18.2%	18.9%	17.9%	18.0%	19.3%	19.3%	18.7%
Selling, General and Administrative Expenses	163	199	189	163	198	192	189	742	175	183	192	191	741
Earnings Before Interest and Taxes	275	336	336	236	318	331	339	1,224	261	265	336	307	1,169
EBIT Margin %	11.2%	11.9%	11.8%	10.3%	12.2%	12.2%	11.6%	11.6%	11.8%	10.4%	12.6%	11.3%	11.5%
Ongoing Earnings Before Interest and Taxes	275	336	336	239	318	331	339	1,227	214	268	323	344	1,150
Ongoing EBIT Margin %	11.2%	11.9%	11.8%	10.4%	12.2%	12.2%	11.6%	11.6%	9.7%	10.5%	12.1%	12.1%	11.2%
Depreciation and Amortization	53	54	53	52	54	53	53	212	52	52	52	52	208

RECAST HISTORICAL SEGMENT FINANCIAL DATA

(UNAUDITED)



Latin America	2017			2016					2015
Amounts in millions	Q1	Q2	Q3	Q1	Q2	Q3	Q4	Full Year	Q1	Q2	Q3	Q4	Full Year
Units Sold (in thousands)	2,589	2,886	2,869	2,659	2,977	2,676	3,401	11,713	3,122	2,802	2,690	3,903	12,517
Net Sales	921	986	966	815	960	920	1,036	3,731	1,011	981	871	1,020	3,883
Ongoing Net Sales	921	986	966	815	960	920	1,036	3,731	1,011	981	871	1,020	3,883
Gross Margin	171	157	143	127	148	138	165	578	151	143	128	154	576
Gross Margin %	18.6%	15.9%	14.8%	15.6%	15.4%	14.9%	15.9%	15.5%	15.0%	14.5%	14.7%	15.1%	14.9%
Selling, General and Administrative Expenses	96	84	81	77	83	81	89	330	83	94	84	81	342
Earnings Before Interest and Taxes	66	57	55	40	50	43	59	192	48	106	35	40	229
EBIT Margin %	7.2%	5.8%	5.7%	4.9%	5.2%	4.6%	5.7%	5.2%	4.8%	10.8%	4.0%	3.9%	5.9%
Ongoing Earnings Before Interest and Taxes	66	57	55	40	50	43	59	192	58	44	36	42	180
Ongoing EBIT Margin %	7.2%	5.8%	5.7%	4.9%	5.2%	4.6%	5.7%	5.2%	5.7%	4.5%	4.1%	5.7%	5.0%
Depreciation and Amortization	31	32	32	28	33	30	30	121	30	33	24	30	117

RECAST HISTORICAL SEGMENT FINANCIAL DATA

(UNAUDITED)



Europe, Middle East and Africa	2017			2016					2015
Amounts in millions	Q1	Q2	Q3	Q1	Q2	Q3	Q4	Full Year	Q1	Q2	Q3	Q4	Full Year
Units Sold (in thousands)	5,078	5,776	5,795	5,465	6,031	6,367	6,808	24,671	5,716	5,910	6,491	7,028	25,145
Net Sales	1,033	1,200	1,268	1,173	1,296	1,319	1,360	5,148	1,273	1,334	1,452	1,542	5,601
Ongoing Net Sales	1,033	1,200	1,268	1,173	1,296	1,319	1,360	5,148	1,273	1,334	1,452	1,542	5,601
Gross Margin	113	146	157	191	212	188	171	762	182	208	189	248	827
Gross Margin %	11.0%	12.2%	12.4%	16.3%	16.4%	14.3%	12.6%	14.8%	14.3%	15.6%	13.0%	16.1%	14.8%
Selling, General and Administrative Expenses	124	139	139	129	159	141	148	577	150	149	149	153	601
Earnings Before Interest and Taxes	(23)	(2)	(2)	46	36	30	38	150	(5)	48	20	78	141
EBIT Margin %	(2.3)%	(0.2)%	(0.2)%	4.0%	2.8%	2.3%	2.8%	2.9%	(0.4)%	3.6%	1.4%	5.1%	2.5%
Ongoing Earnings Before Interest and Taxes	(23)	(2)	(2)	49	52	39	38	178	13	53	59	78	203
Ongoing EBIT Margin %	(2.3)%	(0.2)%	(0.2)%	4.2%	4.0%	3.0%	2.8%	3.5%	1.0%	4.0%	4.1%	5.1%	3.6%
Depreciation and Amortization	48	41	47	47	42	66	49	204	48	59	47	45	199

RECAST HISTORICAL SEGMENT FINANCIAL DATA

(UNAUDITED)



Asia	2017			2016					2015
Amounts in millions	Q1	Q2	Q3	Q1	Q2	Q3	Q4	Full Year	Q1	Q2	Q3	Q4	Full Year
Units Sold (in thousands)	2,563	2,178	2,196	2,157	2,160	2,152	2,306	8,775	2,085	2,056	1,942	1,737	7,820
Net Sales	435	373	375	382	378	355	375	1,490	386	392	354	328	1,460
Ongoing Net Sales (*)	435	405	375	382	378	355	375	1,490	386	392	354	328	1,460
Gross Margin	96	30	81	96	81	82	86	345	92	93	87	79	351
Gross Margin %	22.0%	8.2%	21.7%	25.3%	21.3%	23.2%	22.9%	23.2%	23.9%	23.9%	24.7%	24.2%	24.0%
Selling, General and Administrative Expenses	63	55	70	61	53	58	59	231	60	58	56	63	237
Earnings Before Interest and Taxes	24	(30)	9	24	19	19	31	93	26	30	28	12	96
EBIT Margin %	5.6%	(8.0)%	2.5%	6.4%	5.1%	5.5%	8.2%	6.2%	6.7%	7.6%	8.0%	3.8%	6.6%
Ongoing Earnings Before Interest and Taxes	24	10	9	26	35	21	32	114	32	35	31	18	116
Ongoing EBIT Margin %	5.6%	2.5%	2.5%	6.9%	8.5%	6.1%	8.4%	7.4%	7.2%	8.6%	8.8%	5.6%	7.6%
Depreciation and Amortization	17	15	22	17	17	16	13	63	16	16	16	14	62

RECAST HISTORICAL SEGMENT FINANCIAL DATA

(UNAUDITED)



Other/Elimination	2017			2016					2015
Amounts in millions	Q1	Q2	Q3	Q1	Q2	Q3	Q4	Full Year	Q1	Q2	Q3	Q4	Full Year
Units Sold (in thousands)	—	—	—	—	—	—	—	—	—	—	—	—	—
Net Sales	(49)	(45)	(45)	(43)	(47)	(59)	(43)	(192)	(45)	(48)	(63)	(52)	(208)
Ongoing Net Sales	(49)	(45)	(45)	(43)	(47)	(59)	(43)	(192)	(45)	(48)	(63)	(52)	(208)
Gross Margin	2	2	2	3	4	2	5	14	4	3	1	2	10
Gross Margin %	(3.8)%	(4.3)%	(5.3)%	(6.9)%	(8.9)%	(4.1)%	(11.6)%	(7.5)%	(9.7)%	(6.5)%	(1.8)%	(3.1)%	(4.9)%
Selling, General and Administrative Expenses	53	49	42	43	50	47	60	200	42	71	53	56	222
Earnings Before Interest and Taxes	(103)	(110)	(88)	(93)	(96)	(79)	(116)	(384)	(80)	(134)	(111)	(114)	(439)
EBIT Margin %	nm	nm	nm	nm	nm	nm	nm	nm	nm	nm	nm	nm	nm
Ongoing Earnings Before Interest and Taxes	(57)	(51)	(43)	(45)	(54)	(46)	(55)	(200)	(38)	(64)	(51)	(52)	(205)
Ongoing EBIT Margin %	nm	nm	nm	nm	nm	nm	nm	nm	nm	nm	nm	nm	nm
Depreciation and Amortization	14	14	14	24	18	(1)	14	55	15	10	26	31	82

nm = not meaningful

(*) Reflects the impact of the out-of-period adjustment in our China business related to trade promotion accruals as disclosed in footnote (d) within the supplemental information information in the reconciliation of GAAP to non-GAAP financial measures in our second quarter 2017 earnings release.

EX-99.2 3 a992historicalongoingebitr.htm EXHIBIT 99.2 Exhibit

HISTORICAL ONGOING EBIT RECONCILIATION

(UNAUDITED)



Total Whirlpool	2017			2016					2015
Amounts in millions	Q1	Q2	Q3	Q1	Q2	Q3	Q4	Full Year	Q1	Q2	Q3	Q4	Full Year
Earnings Before Interest and Taxes	$239	$251	$310	$253	$327	$344	$351	$1,275	$250	$315	$308	$323	$1,196
Benefit Plan Curtailment Gain	—	—	—	—	—	—	—	—	(47)	—	(16)	—	(62)
Restructuring Expense	46	59	45	47	40	29	57	173	33	58	54	56	201
Out-of-period adjustment	—	40	—	—	—	—	—	—	—	—	—	—	—
Combined Acquisition Related Transition Costs & Inventory Purchase Price Allocation	—	—	—	5	33	14	34	86	21	22	9	12	64
Pension Settlement Charge	—	—	—	—	—	—	—	—	12	3	—	—	15
Gain/Expenses Related to a Business Investment	—	—	—	—	—	—	—	—	—	(65)	1	18	(46)
Legacy Product Warranty and Liability Expenses	—	—	—	4	1	1	(29)	(23)	—	—	42	—	42
Antitrust and Dispute Resolutions	—	—	—	—	—	—	—	—	10	3	—	22	35
Ongoing Earnings Before Interest and Taxes	$285	$350	$355	$309	$401	$388	$413	$1,511	$279	$336	$398	$431	$1,445



North America	2017			2016					2015
Amounts in millions	Q1	Q2	Q3	Q1	Q2	Q3	Q4	Full Year	Q1	Q2	Q3	Q4	Full Year
Earnings Before Interest and Taxes	$275	$336	$336	$236	$318	$331	$339	$1,224	$261	$265	$336	$307	$1,169
Benefit Plan Curtailment Gain	—	—	—	—	—	—	—	—	(47)	—	(16)	—	(62)
Legacy Product Warranty and Liability Expenses	—	—	—	3	—	—	—	3	—	—	3	—	3
Antitrust and Dispute Resolutions	—	—	—	—	—	—	—	—	—	—	—	21	21
Gain/Expenses Related to a Business Investment	—	—	—	—	—	—	—	—	—	—	—	16	16
Pension Settlement Charge	—	—	—	—	—	—	—	—	—	3	—	—	3
Ongoing Earnings Before Interest and Taxes	$275	$336	$336	$239	$318	$331	$339	$1,227	$214	$268	$323	$344	$1,150



Latin America	2017			2016					2015
Amounts in millions	Q1	Q2	Q3	Q1	Q2	Q3	Q4	Full Year	Q1	Q2	Q3	Q4	Full Year
Earnings Before Interest and Taxes	$66	$57	$55	$40	$50	$43	$59	$192	$48	$106	$35	$40	$229
Antitrust and Dispute Resolutions	—	—	—	—	—	—	—	—	10	3	—	1	14
Gain/Expenses Related to a Business Investment	—	—	—	—	—	—	—	—	—	(65)	1	1	(63)
Ongoing Earnings Before Interest and Taxes	$66	$57	$55	$40	$50	$43	$59	$192	$58	$44	$36	$42	$180

HISTORICAL ONGOING EBIT RECONCILIATION

(UNAUDITED)



Europe, Middle East and Africa	2017			2016					2015
Amounts in millions	Q1	Q2	Q3	Q1	Q2	Q3	Q4	Full Year	Q1	Q2	Q3	Q4	Full Year
Earnings Before Interest and Taxes	$(23)	$(2)	$(2)	$46	$36	$30	$38	$150	$(5)	$48	$20	$78	$141
Legacy Product Warranty and Liability Expenses	—	—	—	1	1	1	(29)	(26)	—	—	39	—	39
Combined Acquisition Related Transition Cost & Inventory Purchase Price Allocation	—	—	—	2	15	8	29	54	6	5	—	—	11
Pension Settlement Charge	—	—	—	—	—	—	—	—	12	—	—	—	12
Ongoing Earnings Before Interest and Taxes	$(23)	$(2)	$(2)	$49	$52	$39	$38	$178	$13	$53	$59	$78	$203



Asia	2017			2016					2015
Amounts in millions	Q1	Q2	Q3	Q1	Q2	Q3	Q4	Full Year	Q1	Q2	Q3	Q4	Full Year
Earnings Before Interest and Taxes	$24	$(30)	$9	$24	$19	$19	$31	$93	$26	$30	$28	$12	$96
Out-of-period adjustment	—	40	—	—	—	—	—	—	—	—	—	—	—
Combined Acquisition Related Transition Cost & Inventory Purchase Price Allocation	—	—	—	2	16	2	1	21	6	5	3	6	20
Ongoing Earnings Before Interest and Taxes	$24	$10	$9	$26	$35	$21	$32	$114	$32	$35	$31	$18	$116



Other/Elimination	2017			2016					2015
Amounts in millions	Q1	Q2	Q3	Q1	Q2	Q3	Q4	Full Year	Q1	Q2	Q3	Q4	Full Year
Earnings Before Interest and Taxes	$(103)	$(110)	$(88)	$(93)	$(96)	$(79)	$(116)	$(384)	$(80)	$(134)	$(111)	$(114)	$(439)
Restructuring Expense	46	59	45	47	40	29	57	173	33	58	54	56	201
Combined Acquisition Related Transition Cost & Inventory Purchase Price Allocation	—	—	—	1	2	4	4	11	9	12	6	6	33
Ongoing Earnings Before Interest and Taxes	$(57)	$(51)	$(43)	$(45)	$(54)	$(46)	$(55)	$(200)	$(38)	$(64)	$(51)	$(52)	$(205)

EX-99.3 4 a993netearningstoebitrecon.htm EXHIBIT 99.3 Exhibit

NET EARNINGS TO EBIT RECONCILIATION

(UNAUDITED)



Total Whirlpool	2017			2016					2015
Amounts in millions	Q1	Q2	Q3	Q1	Q2	Q3	Q4	Full Year	Q1	Q2	Q3	Q4	Full Year
Net Earnings Available to WHR	$153	$189	$276	$150	$320	$238	$180	$888	$191	$177	$235	$180	$783
Net Earnings Available to Non-Controlling Interests	5	(10)	(4)	6	22	6	6	40	7	8	15	9	39
Income Tax Expense	40	33	(4)	59	(56)	61	122	186	9	90	17	93	209
Interest Expense	41	39	42	38	41	39	43	161	43	40	41	41	165
Earnings Before Interest & Taxes	$239	$251	$310	$253	$327	$344	$351	$1,275	$250	$315	$308	$323	$1,196