Whirlpool Corporation (NYSE:WHR) Q2 2024 Earnings Conference Call July 25, 2024 8:00 AM ET Company Participants Marc Bitzer - Chairman, Chief Executive Officer James Peters - Chief Financial Officer, Chief Administrative Officer Scott Cartwright - Head of Investor Relations Conference Call Participants Sam Darkatsh - Raymond James Mike Dahl - RBC Capital Markets Susan Maklari - Goldman Sachs David MacGregor - Longbow Research Laura Champine - Loop Capital Michael Rehaut - JP Morgan Eric Bosshard - Clevelan ...

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) The company's unaudited consolidated financial statements detail comprehensive income, balance sheets, and cash flows - The unaudited Consolidated Condensed Financial Statements are prepared in accordance with GAAP for interim financial information and should be read in conjunction with the 2023 Form 10-K[26](index=26&type=chunk) - Management makes estimates and assumptions that affect reported amounts, and **actual results may differ materially**[27](index=27&type=chunk) [Consolidated Condensed Statements of Comprehensive Income (Loss)](index=6&type=section&id=Consolidated%20Condensed%20Statements%20of%20Comprehensive%20Income%20(Loss)) Consolidated Condensed Statements of Comprehensive Income (Loss) | Metric (Millions of dollars, except per share data) | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | |:---|:---|:---|:---|:---| | Net sales | $3,989 | $4,792 | $8,478 | $9,441 | | Cost of products sold | 3,363 | 3,976 | 7,211 | 7,862 | | Gross margin | 626 | 816 | 1,267 | 1,579 | | Operating profit | 130 | 303 | 14 | 346 | | Earnings (loss) before income taxes | 30 | 204 | (148) | 95 | | Income tax expense (benefit) | (206) | 114 | (130) | 182 | | Net earnings (loss) available to Whirlpool | $219 | $85 | $(40) | $(94) | | Basic net earnings (loss) available to Whirlpool per share | $3.96 | $1.56 | $(0.75) | $(1.71) | | Diluted net earnings (loss) available to Whirlpool per share | $3.96 | $1.55 | $(0.75) | $(1.71) | | Dividends declared per share | $1.75 | $1.75 | $3.50 | $3.50 | | Comprehensive income (loss) | $242 | $48 | $(9) | $(129) | [Consolidated Condensed Balance Sheets](index=7&type=section&id=Consolidated%20Condensed%20Balance%20Sheets) Consolidated Condensed Balance Sheets | Asset/Liability (Millions of dollars) | June 30, 2024 | December 31, 2023 | |:---|:---|:---| | **Assets** | | | | Cash and cash equivalents | $1,179 | $1,570 | | Accounts receivable, net | 1,595 | 1,529 | | Inventories | 2,309 | 2,247 | | Total current assets | 5,860 | 6,207 | | Property, net | 2,254 | 2,234 | | Goodwill | 3,328 | 3,330 | | Total assets | $17,343 | $17,312 | | **Liabilities and Stockholders' Equity** | | | | Accounts payable | $3,420 | $3,598 | | Notes payable | 778 | 17 | | Current maturities of long-term debt | 350 | 800 | | Total current liabilities | 6,129 | 6,948 | | Long-term debt | 6,313 | 6,414 | | Total liabilities | 13,984 | 14,775 | | Total stockholders' equity | 3,359 | 2,537 | | Total liabilities and stockholders' equity | $17,343 | $17,312 | [Consolidated Condensed Statements of Cash Flows](index=8&type=section&id=Consolidated%20Condensed%20Statements%20of%20Cash%20Flows) Consolidated Condensed Statements of Cash Flows | Cash Flow Activity (Millions of dollars) | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | |:---|:---|:---| | Net earnings (loss) | $(29) | $(89) | | Cash provided by (used in) operating activities | $(485) | $(370) | | Cash provided by (used in) investing activities | $(432) | $(222) | | Cash provided by (used in) financing activities | $501 | $(110) | | Effect of exchange rate changes | $(72) | $55 | | Increase (decrease) in cash and cash equivalents | $(488) | $(649) | | Cash and cash equivalents at end of period | $1,179 | $1,309 | [Notes to the Consolidated Condensed Financial Statements (Unaudited)](index=9&type=section&id=Notes%20to%20the%20Consolidated%20Condensed%20Financial%20Statements%20(Unaudited)) [Note 1. Basis of Presentation](index=9&type=section&id=Note%201.%20Basis%20of%20Presentation) - **Macroeconomic volatility and international conflicts** continue to create unpredictable business impacts[29](index=29&type=chunk) - The **Maytag and InSinkErator trademarks face risks** from potential disruptions, though management remains committed to long-term strategic goals[31](index=31&type=chunk)[32](index=32&type=chunk) - **No impairment triggers** for goodwill or indefinite-lived intangible assets were identified in Q2 2024[34](index=34&type=chunk) - Synthetic lease arrangements for non-core properties carry residual value guarantees of approximately **$378 million**, but material payments are not expected[38](index=38&type=chunk) - The company is evaluating the impact of new FASB updates on **Income Taxes (Topic 740)** and **Segment Reporting (Topic 280)**[50](index=50&type=chunk)[58](index=58&type=chunk) Supply Chain Financing Obligations (Millions of dollars) | Supply Chain Financing Obligations (Millions of dollars) | Amount | |:---|:---| | Confirmed obligations outstanding as of December 31, 2023 | $843 | | Invoices confirmed during the period | 1,233 | | Confirmed invoices paid during the period | (1,286)| | Impact of foreign currency | (34) | | Confirmed obligations outstanding as of June 30, 2024 | $756 | Equity Method Investments (Millions of dollars) | Equity Method Investments (Millions of dollars) | June 30, 2024 Percentage Ownership | June 30, 2024 Carrying Amount | December 31, 2023 Percentage Ownership | December 31, 2023 Carrying Amount | |:---|:---|:---|:---|:---| | Beko Europe B.V. | 25% | $174 | 25% | N/A | | Whirlpool China | 20% | $188 | 20% | $187 | [Note 2. Revenue Recognition](index=12&type=section&id=Note%202.%20Revenue%20Recognition) Revenue Source (Millions of dollars) | Revenue Source (Millions of dollars) | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | |:---|:---|:---|:---|:---| | Laundry | $1,087 | $1,294 | $2,351 | $2,590 | | Refrigeration | 1,299 | 1,478 | 2,553 | 2,850 | | Cooking | 907 | 1,101 | 1,969 | 2,193 | | Dishwashing | 272 | 445 | 701 | 876 | | Total major product category net sales | $3,565 | $4,318 | $7,574 | $8,509 | | Spare parts and warranties | 141 | 239 | 380 | 475 | | Other | 283 | 235 | 524 | 457 | | Total net sales | $3,989 | $4,792 | $8,478 | $9,441 | Allowance for Expected Credit Losses (Millions of dollars) | Allowance for Expected Credit Losses (Millions of dollars) | December 31, 2023 | Charged to Earnings | Write-offs | Foreign Currency | June 30, 2024 | |:---|:---|:---|:---|:---|:---| | MDA North America | $4 | $1 | $— | $— | $5 | | MDA Latin America | 38 | 3 | — | (3) | 38 | | MDA Asia | 3 | — | — | — | 3 | | SDA Global | 2 | — | — | — | 2 | | Consolidated Accounts Receivable Allowance | $47 | $4 | $— | $(3) | $48 | | Consolidated Financing Receivable Allowance | $29 | $— | $— | $(4) | $25 | | Total Consolidated Allowance | $76 | $4 | $— | $(7) | $73 | [Note 3. Inventories](index=13&type=section&id=Note%203.%20Inventories) Inventories (Millions of dollars) | Inventories (Millions of dollars) | June 30, 2024 | December 31, 2023 | |:---|:---|:---| | Finished products | $1,775 | $1,732 | | Raw materials and work in process | 534 | 515 | | Total Inventories | $2,309 | $2,247 | [Note 4. Property, Plant and Equipment](index=13&type=section&id=Note%204.%20Property%2C%20Plant%20and%20Equipment) Property, Plant and Equipment (Millions of dollars) | Property, Plant and Equipment (Millions of dollars) | June 30, 2024 | December 31, 2023 | |:---|:---|:---| | Land | $29 | $29 | | Buildings | 949 | 893 | | Machinery and equipment | 6,631 | 6,571 | | Accumulated depreciation | (5,355) | (5,259) | | Property, plant and equipment, net | $2,254 | $2,234 | [Note 5. Financing Arrangements](index=13&type=section&id=Note%205.%20Financing%20Arrangements) - In February 2024, the Company issued **$300 million of 5.750% Senior Notes** due 2034 to repay maturing 4.000% Notes[66](index=66&type=chunk)[68](index=68&type=chunk) - The outstanding amount for the term loan facility is **$1.5 billion** at June 30, 2024, with a maturity date of October 31, 2025, after repaying $500 million in April 2024[71](index=71&type=chunk) - The Company maintains a **$3.5 billion Amended Long-Term Credit Facility** maturing May 3, 2027, and committed credit facilities in Brazil and India totaling approximately **$192 million**[75](index=75&type=chunk)[78](index=78&type=chunk) - The Company transferred **$138 million of accounts receivable** without recourse as of June 30, 2024, receiving **$269 million in cash proceeds** for the six months ended June 30, 2024[82](index=82&type=chunk)[83](index=83&type=chunk) Notes Payable (Millions of dollars) | Notes Payable (Millions of dollars) | June 30, 2024 | December 31, 2023 | |:---|:---|:---| | Commercial paper | $755 | $— | | Short-term borrowings due to banks | 23 | 17 | | Total notes payable | $778 | $17 | [Note 6. Commitments and Contingencies](index=16&type=section&id=Note%206.%20Commitments%20and%20Contingencies) - Brazilian operations face tax assessments totaling approximately **$419 million** for BEFIEX credits, **$52 million** for IPI tax credits, and **$70 million** for PIS/COFINS input credits, which the Company is vigorously disputing[85](index=85&type=chunk)[86](index=86&type=chunk)[87](index=87&type=chunk)[93](index=93&type=chunk) - Lawsuits related to the **Grenfell Tower fire**, involving a Hotpoint-branded refrigerator manufactured prior to Whirlpool's acquisition of Indesit, are ongoing in the U.K., with an immaterial amount accrued in financial statements[90](index=90&type=chunk) - The Company accrued an immaterial amount in Q1 2023 for prior-period VAT remittances in Latin America, with certain aspects resolved in Q2 2023[95](index=95&type=chunk) - A preliminary settlement range has been agreed with the French Competition Authority for an ongoing investigation, with a charge of approximately **$69 million** recorded in H1 2023, and **$68 million** provided to Beko for payment[97](index=97&type=chunk) - Guarantees for a Brazilian subsidiary's customer lines of credit totaled approximately **$183 million** at June 30, 2024, and corporate guarantees for consolidated subsidiaries totaled approximately **$2.6 billion**[100](index=100&type=chunk)[101](index=101&type=chunk) Product Warranty Liability (Millions of dollars) | Product Warranty Liability (Millions of dollars) | 2024 | 2023 | |:---|:---|:---| | Balance at January 1 | $206 | $190 | | Issuances/accruals during the period | 105 | 109 | | Settlements made during the period/other | (114)| (106)| | Balance at June 30 | $197 | $193 | | Current portion | $137 | $129 | | Non-current portion | 60 | 64 | | Total | $197 | $193 | [Note 7. Pension and Other Postretirement Benefit Plans](index=19&type=section&id=Note%207.%20Pension%20and%20Other%20Postretirement%20Benefit%20Plans) - Beginning March 2024, Company matching contributions for the 401(k) defined contribution plan are contributed in company stock, up to **7% of eligible compensation**[104](index=104&type=chunk) Net Periodic Benefit Cost (Credit) (Millions of dollars) | Net Periodic Benefit Cost (Credit) (Millions of dollars) | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | |:---|:---|:---|:---|:---| | United States Pension Benefits | $(1) | $4 | $(1) | $7 | | Foreign Pension Benefits | $2 | $3 | $4 | $6 | | Other Postretirement Benefits | $2 | $(8) | $3 | $(18) | [Note 8. Hedges and Derivative Financial Instruments](index=20&type=section&id=Note%208.%20Hedges%20and%20Derivative%20Financial%20Instruments) - Whirlpool uses derivative instruments (commodity, foreign exchange, interest rate) to manage risks associated with commodity prices, foreign exchange rates, and interest rates, **not for trading or speculative purposes**[108](index=108&type=chunk) Derivative Contracts (Millions of dollars) | Derivative Contracts (Millions of dollars) | Notional Amount June 30, 2024 | Notional Amount December 31, 2023 | Fair Value Assets June 30, 2024 | Fair Value Assets December 31, 2023 | Fair Value Liabilities June 30, 2024 | Fair Value Liabilities December 31, 2023 | |:---|:---|:---|:---|:---|:---|:---| | Commodity swaps/options (hedges) | $178 | $193 | $14 | $4 | $2 | $9 | | Foreign exchange forwards/options (hedges) | 1,015 | 952 | 28 | 1 | 3 | 31 | | Cross-currency swaps (hedges) | 618 | 618 | 5 | 5 | 60 | 79 | | Total derivatives accounted for as hedges | | | $47 | $10 | $65 | $119 | | Foreign exchange forwards/options (non-hedges) | 452 | 1,569 | 1 | 13 | — | 9 | | Total derivatives | | | $48 | $23 | $65 | $128 | Effects of Derivative Instruments on Income (Loss) (Millions of dollars) | Effects of Derivative Instruments on Income (Loss) (Millions of dollars) | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | |:---|:---|:---|:---|:---| | Gain (Loss) Recognized in OCI (Effective Portion) | $52 | $(83) | $85 | $(105) | | Gain (Loss) Reclassified from OCI into Earnings (Effective Portion) | $7 | $(8) | $9 | $(14) | | Gain (Loss) Recognized on Derivatives not Accounted for as Hedges | $10 | $14 | $8 | $27 | [Note 9. Fair Value Measurements](index=23&type=section&id=Note%209.%20Fair%20Value%20Measurements) - Fair value is measured based on an exit price using a three-tiered hierarchy: **Level 1** (observable inputs), **Level 2** (indirectly observable inputs), and **Level 3** (unobservable inputs)[124](index=124&type=chunk) - The European major domestic appliance business was classified as held for sale, with the **25% retained interest in Beko valued at $186 million** based on discounted cash flow analysis (Level 3 input)[127](index=127&type=chunk)[128](index=128&type=chunk) - A loss of **$45 million** and **$292 million** was recorded for the three and six months ended June 30, 2024, respectively, related to the sale and disposal of businesses, reflecting fair value reassessment and transaction costs[134](index=134&type=chunk) - The fair value of long-term debt was **$6.3 billion** at June 30, 2024, estimated using discounted cash flow analysis (Level 2 input)[129](index=129&type=chunk) Assets Measured at Fair Value (Millions of dollars) | Assets Measured at Fair Value (Millions of dollars) | June 30, 2024 Total Cost Basis | December 31, 2023 Total Cost Basis | June 30, 2024 Level 1 | December 31, 2023 Level 1 | June 30, 2024 Level 2 | December 31, 2023 Level 2 | June 30, 2024 Total Fair Value | December 31, 2023 Total Fair Value | |:---|:---|:---|:---|:---|:---|:---|:---|:---| | Short-term investments | $784 | $1,126 | $456 | $867 | $328 | $259 | $784 | $1,126 | | Net derivative contracts | — | — | — | — | $(17) | $(105) | $(17) | $(105) | [Note 10. Stockholders' Equity](index=25&type=section&id=Note%2010.%20Stockholders%27%20Equity) - The Board authorized a share repurchase program of up to **$4 billion**, with approximately **$2.5 billion remaining** at June 30, 2024. During the six months ended June 30, 2024, 455,952 shares were repurchased for approximately **$50 million**[143](index=143&type=chunk) Stockholders' Equity (Millions of dollars) | Stockholders' Equity (Millions of dollars) | December 31, 2023 | March 31, 2024 | June 30, 2024 | |:---|:---|:---|:---| | Total Whirlpool Stockholders' Equity | $2,362 | $2,354 | $3,097 | | Noncontrolling Interests | 175 | 256 | 262 | | Total Stockholders' Equity | $2,537 | $2,610 | $3,359 | | Net earnings (loss) available to Whirlpool | $(259) | $219 | | | Other comprehensive income (loss) | $3 | $17 | | | Dividends declared | $(95) | $(96) | | | Stock issued (repurchased) | $(45) | $26 | | | Sale of minority interest in subsidiary | — | $462 | | | Divestitures | — | $577 | | Other Comprehensive Income (Loss) (Millions of dollars) | Other Comprehensive Income (Loss) (Millions of dollars) | Three Months Ended June 30, 2024 Net | Three Months Ended June 30, 2023 Net | Six Months Ended June 30, 2024 Net | Six Months Ended June 30, 2023 Net | |:---|:---|:---|:---|:---| | Currency translation adjustments | $(23) | $27 | $(51) | $26 | | Cash flow hedges | 30 | (57) | 53 | (68) | | Pension and other postretirement benefits plans | 10 | (9) | 18 | 2 | | Other comprehensive income (loss) available to Whirlpool | $17 | $(39) | $20 | $(40) | Net Earnings (Loss) Per Share (Millions of dollars and shares) | Net Earnings (Loss) Per Share (Millions of dollars and shares) | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | |:---|:---|:---|:---|:---| | Net earnings (loss) available to Whirlpool | $219 | $85 | $(40) | $(94) | | Denominator for basic EPS (weighted-average shares) | 54.9 | 55.0 | 54.9 | 54.9 | | Diluted net earnings (loss) per share | $3.96 | $1.55 | $(0.75) | $(1.71) | [Note 11. Restructuring Charges](index=27&type=section&id=Note%2011.%20Restructuring%20Charges) - In March 2024, the Company committed to workforce reduction plans globally, incurring **$23 million in Q1 2024**. Additional restructuring actions in Q2 2024 incurred **$50 million**, primarily for employee termination costs[146](index=146&type=chunk)[147](index=147&type=chunk) Restructuring Liability (Millions of Dollars) | Restructuring Liability (Millions of Dollars) | December 31, 2023 | Charge to Earnings | Cash Paid | Non-Cash and Other | June 30, 2024 | |:---|:---|:---|:---|:---|:---| | Employee Termination | $10 | $62 | $(54) | $(7) | $11 | | Other exit costs | — | 11 | (2) | — | 9 | | Total | $10 | $73 | $(56) | $(7) | $20 | Restructuring Charges by Segment (Millions of dollars) | Restructuring Charges by Segment (Millions of dollars) | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | |:---|:---|:---|:---|:---| | MDA North America | $22 | $— | $27 | $— | | MDA Latin America | 18 | — | 21 | — | | MDA Asia | 5 | — | 6 | — | | SDA Global | 4 | — | 4 | — | | Corporate/Other | 1 | 9 | 15 | 9 | | Total | $50 | $9 | $73 | $9 | [Note 12. Income Taxes](index=28&type=section&id=Note%2012.%20Income%20Taxes) - Income tax benefit was **$(206) million** and **$(130) million** for the three and six months ended June 30, 2024, respectively, compared to expense in prior periods, primarily due to lower earnings and tax benefits from legal entity restructuring related to the European major appliance business disposal[151](index=151&type=chunk) Income Tax Expense (Benefit) Reconciliation (Millions of dollars) | Income Tax Expense (Benefit) Reconciliation (Millions of dollars) | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | |:---|:---|:---|:---|:---| | Earnings (loss) before income taxes | $30 | $204 | $(148) | $95 | | Tax expense (benefit) computed at U.S. statutory rate (21%) | $6 | $43 | $(31) | $20 | | Income tax expense (benefit) computed at effective worldwide tax rates | $(206) | $114 | $(130) | $182 | [Note 13. Segment Information](index=29&type=section&id=Note%2013.%20Segment%20Information) - Effective January 1, 2024, Whirlpool reorganized its operating segments to align with portfolio transformation, focusing on **MDA North America, MDA Latin America, MDA Asia, and SDA Global**, with MDA Europe deconsolidated[154](index=154&type=chunk)[155](index=155&type=chunk) - The Chief Operating Decision Maker evaluates performance based on each segment's **Earnings (Loss) Before Interest and Taxes (EBIT)**, which excludes restructuring costs, asset impairment charges, and certain other items[156](index=156&type=chunk) Segment Performance (Millions of dollars) | Segment Performance (Millions of dollars) | Net Sales Q2 2024 | Net Sales Q2 2023 | EBIT Q2 2024 | EBIT Q2 2023 | Net Sales H1 2024 | Net Sales H1 2023 | EBIT H1 2024 | EBIT H1 2023 | |:---|:---|:---|:---|:---|:---|:---|:---|:---| | MDA North America | $2,567 | $2,722 | $163 | $275 | $4,994 | $5,362 | $298 | $542 | | MDA Latin America | 895 | 804 | 52 | 49 | 1,732 | 1,551 | 116 | 85 | | MDA Asia | 340 | 284 | 21 | 10 | 579 | 529 | 31 | 17 | | MDA Europe | — | 814 | — | 14 | 804 | 1,661 | (9) | 10 | | SDA Global | 187 | 168 | 26 | 21 | 369 | 338 | 60 | 39 | | Total Whirlpool | $3,989 | $4,792 | $112 | $290 | $8,478 | $9,441 | $24 | $257 | Reconciliation of Other/Eliminations to Total EBIT (Millions of dollars) | Reconciliation of Other/Eliminations to Total EBIT (Millions of dollars) | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | |:---|:---|:---|:---|:---| | Restructuring charges | $(50) | $(9) | $(73) | $(9) | | (Loss) gain on sale and disposal of businesses | (45) | (18) | (292) | (240) | | Corporate expenses and other | (55) | (16) | (107) | (89) | | Total other/eliminations | $(150) | $(79) | $(472) | $(436) | | Operating profit | $130 | $303 | $14 | $346 | | Total EBIT | $112 | $290 | $24 | $257 | [Note 14. Acquisitions and Divestitures](index=31&type=section&id=Note%2014.%20Acquisitions%20and%20Divestitures) - On April 1, 2024, Whirlpool closed the contribution of its European major domestic appliance business and the sale of its MENA business to Arcelik, resulting in the deconsolidation of these businesses. Whirlpool now owns approximately **25% of the newly formed European appliance company, Beko**[162](index=162&type=chunk)[167](index=167&type=chunk) - The transaction resulted in a **total loss on disposal of $1.9 billion**, including a **$1.2 billion write-down** of net assets and **$393 million** of cumulative currency translation adjustments[162](index=162&type=chunk) - On February 20, 2024, Whirlpool sold 30.4 million equity shares of Whirlpool India, reducing its ownership from 75% to 51% and generating **$462 million in proceeds**, which were used to reduce debt[173](index=173&type=chunk)[210](index=210&type=chunk) - On January 16, 2024, the Company entered into an agreement to sell its Brastemp-branded water filtration subscription business in Latin America, which closed on July 1, 2024, for approximately **$52 million**, expecting a gain of **$32 million** in Q3 2024[174](index=174&type=chunk) MDA Europe Earnings (Loss) (Millions) | MDA Europe Earnings (Loss) (Millions) | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | |:---|:---|:---| | Earnings (loss) before income taxes | $(9) | $12 | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=33&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, condition, and outlook, analyzing results, liquidity, and strategic impacts [About Whirlpool](index=33&type=section&id=About%20Whirlpool) - Whirlpool Corporation is a leading kitchen and laundry appliance company, with iconic brands including **Whirlpool, KitchenAid, JennAir, Maytag, Amana, Brastemp, Consul, and InSinkErator**[177](index=177&type=chunk) - In 2023, the Company reported approximately **$19 billion in annual sales**, 59,000 employees, and 55 manufacturing and technology research centers[177](index=177&type=chunk) - As of January 1, 2024, the business operates through five segments: **MDA North America, MDA Europe (deconsolidated April 1, 2024), MDA Latin America, MDA Asia, and SDA Global**[177](index=177&type=chunk) [Overview](index=34&type=section&id=Overview) - GAAP net earnings margins were impacted by adjustments from the sale and disposal of businesses and restructuring expenses, while quarterly results were affected by negative price/mix, partially offset by cost takeout actions[181](index=181&type=chunk) - Whirlpool expects to deliver **$300-$400 million in cost takeout** and continued sequential margin progression through 2024[182](index=182&type=chunk) Key Metrics | Metric (Millions of dollars, except per share data) | Q2 2024 | Q2 2023 | |:---|:---|:---| | GAAP Net earnings (loss) available to Whirlpool | $219 | $85 | | GAAP Net earnings margin | 5.5% | 1.8% | | GAAP Diluted EPS | $3.96 | $1.55 | | Ongoing (non-GAAP) diluted EPS | $2.39 | $4.21 | | Ongoing (non-GAAP) EBIT margin | 5.3% | 7.3% | Cash Flow | Cash Flow (Millions of dollars) | H1 2024 | H1 2023 | |:---|:---|:---| | Cash provided by (used in) operating activities | $(485) | $(370) | | Free cash flow (non-GAAP) | $(713) | $(587) | [Results of Operations (Consolidated)](index=35&type=section&id=Results%20of%20Operations%20(Consolidated)) - Consolidated net sales decreased by **16.8%** for the three months and **10.2%** for the six months ended June 30, 2024, primarily due to the divestiture of the European major domestic appliances business[185](index=185&type=chunk) - The consolidated gross margin percentage decreased to **15.7% (Q2 2024)** and **14.9% (H1 2024)** from 17.0% and 16.7% in the prior-year periods, driven by volume and unfavorable product price/mix, partially offset by cost productivity[186](index=186&type=chunk) Consolidated Financials (Millions of dollars, except per share data) | Consolidated Financials (Millions of dollars, except per share data) | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | |:---|:---|:---|:---|:---| | Net sales | $3,989 | $4,792 | $8,478 | $9,441 | | Gross margin | 626 | 816 | 1,267 | 1,579 | | Selling, general and administrative | 394 | 476 | 871 | 963 | | Restructuring costs | 50 | 9 | 73 | 9 | | Loss (gain) on sale and disposal of businesses | 45 | 18 | 292 | 240 | | Net earnings (loss) available to Whirlpool | $219 | $85 | $(40) | $(94) | | Diluted net earnings (loss) available to Whirlpool per share | $3.96 | $1.55 | $(0.75) | $(1.71) | [Segment Results](index=35&type=section&id=Segment%20Results) Financial performance of operating segments, including net sales and EBIT, is detailed by region [MDA North America](index=36&type=section&id=MDA%20North%20America) - Net sales decreased by **5.7% (Q2)** and **6.9% (H1)** due to unfavorable product price/mix[192](index=192&type=chunk) - EBIT decreased for both periods, primarily due to unfavorable product price/mix, with **EBIT margin falling to 6.3% (Q2)** and **6.0% (H1)** from 10.1% in prior periods[193](index=193&type=chunk) MDA North America (Millions of dollars) | MDA North America (Millions of dollars) | Net Sales Q2 2024 | Net Sales Q2 2023 | EBIT Q2 2024 | EBIT Q2 2023 | Net Sales H1 2024 | Net Sales H1 2023 | EBIT H1 2024 | EBIT H1 2023 | |:---|:---|:---|:---|:---|:---|:---|:---|:---| | Net Sales | $2,567 | $2,722 | | | $4,994 | $5,362 | | | | EBIT | | | $163 | $275 | | | $298 | $542 | [MDA Latin America](index=36&type=section&id=MDA%20Latin%20America) - Net sales increased by **11.3% (Q2)** and **11.7% (H1)**, primarily driven by increased volume, partially offset by unfavorable foreign currency and product price/mix[223](index=223&type=chunk) - EBIT increased for both periods, primarily due to increased volume, partially offset by unfavorable product price/mix. **EBIT margin was 5.8% (Q2) and 6.7% (H1)**[232](index=232&type=chunk) MDA Latin America (Millions of dollars) | MDA Latin America (Millions of dollars) | Net Sales Q2 2024 | Net Sales Q2 2023 | EBIT Q2 2024 | EBIT Q2 2023 | Net Sales H1 2024 | Net Sales H1 2023 | EBIT H1 2024 | EBIT H1 2023 | |:---|:---|:---|:---|:---|:---|:---|:---|:---| | Net Sales | $895 | $804 | | | $1,732 | $1,551 | | | | EBIT | | | $52 | $49 | | | $116 | $85 | [MDA Asia](index=37&type=section&id=MDA%20Asia) - Net sales increased by **19.7% (Q2)** and **9.5% (H1)**, primarily driven by increased volume, partially offset by foreign currency impact[234](index=234&type=chunk) - EBIT increased for both periods, primarily due to increased volume and cost takeout actions, partially offset by unfavorable product price/mix. **EBIT margin was 6.2% (Q2) and 5.4% (H1)**[235](index=235&type=chunk) MDA Asia (Millions of dollars) | MDA Asia (Millions of dollars) | Net Sales Q2 2024 | Net Sales Q2 2023 | EBIT Q2 2024 | EBIT Q2 2023 | Net Sales H1 2024 | Net Sales H1 2023 | EBIT H1 2024 | EBIT H1 2023 | |:---|:---|:---|:---|:---|:---|:---|:---|:---| | Net Sales | $340 | $284 | | | $579 | $529 | | | | EBIT | | | $21 | $10 | | | $31 | $17 | [SDA Global](index=37&type=section&id=SDA%20Global) - Net sales increased by **11.3% (Q2)** and **9.2% (H1)**, primarily driven by increased volumes, partially offset by unfavorable product price/mix[238](index=238&type=chunk) - EBIT increased for both periods, driven by increased volume, partially offset by unfavorable product price/mix and increased marketing spend. **EBIT margin was 13.9% (Q2) and 16.3% (H1)**[239](index=239&type=chunk) SDA Global (Millions of dollars) | SDA Global (Millions of dollars) | Net Sales Q2 2024 | Net Sales Q2 2023 | EBIT Q2 2024 | EBIT Q2 2023 | Net Sales H1 2024 | Net Sales H1 2023 | EBIT H1 2024 | EBIT H1 2023 | |:---|:---|:---|:---|:---|:---|:---|:---|:---| | Net Sales | $187 | $168 | | | $369 | $338 | | | | EBIT | | | $26 | $21 | | | $60 | $39 | [MDA Europe](index=38&type=section&id=MDA%20Europe) - The MDA Europe business was **deconsolidated as of April 1, 2024**, resulting in no net sales or EBIT for this segment during the second quarter of 2024[224](index=224&type=chunk) [Key Financial Items Discussion](index=38&type=section&id=Key%20Financial%20Items%20Discussion) Specific financial line items are discussed, including SG&A, restructuring, disposals, interest, and taxes [Selling, General and Administrative](index=38&type=section&id=Selling%2C%20General%20and%20Administrative) - Consolidated selling, general and administrative expenses decreased for the three and six months ended June 30, 2024, primarily due to the **disposal of the European major domestic appliance business**[225](index=225&type=chunk) [Restructuring](index=38&type=section&id=Restructuring) - Restructuring charges increased to **$50 million (Q2 2024)** and **$73 million (H1 2024)** from $9 million in prior periods, driven by organizational simplification efforts[195](index=195&type=chunk) - For the full year 2024, the Company expects to incur approximately **$75-80 million in restructuring charges**, with substantially all resulting in cash settlement[196](index=196&type=chunk) [(Gain) Loss on Sale and Disposal of Businesses](index=39&type=section&id=(Gain)%20Loss%20on%20Sale%20and%20Disposal%20of%20Businesses) - The Company recorded an adjustment of **$45 million (Q2 2024)** and **$247 million (H1 2024)** related to the deconsolidation of the European disposal group, resulting in a **total loss of $1.9 billion** for the transaction[198](index=198&type=chunk) - These adjustments reflect the reassessment of fair value less costs to sell, transaction costs, and provisions for tax-related indemnities[198](index=198&type=chunk) [Interest and Sundry (Income) Expense](index=39&type=section&id=Interest%20and%20Sundry%20(Income)%20Expense) - Net interest and sundry expense decreased for both the three and six months ended June 30, 2024, primarily due to **lower reserves for legacy EMEA legal matters** recorded in the prior year[201](index=201&type=chunk) [Interest Expense](index=39&type=section&id=Interest%20Expense) - The increase in interest expense is primarily due to **higher interest rates**[202](index=202&type=chunk) Interest Expense (Millions of dollars) | Interest Expense (Millions of dollars) | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | |:---|:---|:---|:---|:---| | Interest expense | $93 | $89 | $183 | $164 | [Income Taxes](index=39&type=section&id=Income%20Taxes) - Income tax benefit was **$(206) million (Q2 2024)** and **$(130) million (H1 2024)**, compared to expense in prior periods, driven by lower earnings and tax benefits from legal entity restructuring related to the European major appliance business disposal[203](index=203&type=chunk) [Other Information (Goodwill and Indefinite-lived Intangibles)](index=39&type=section&id=Other%20Information%20(Goodwill%20and%20Indefinite-lived%20Intangibles)) - The Company continues to monitor global economic uncertainty, with **Maytag and InSinkErator trademarks remaining at risk**, but no reporting units or indefinite-lived intangible assets are currently at risk for future impairment[205](index=205&type=chunk) [Financial Condition and Liquidity](index=39&type=section&id=Financial%20Condition%20and%20Liquidity) The company's financial strategy, liquidity sources, cash usage, and debt management are outlined [Background](index=39&type=section&id=Background) - Whirlpool aims to finance its business through **operating cash flow** and a balanced mix of long-term and short-term debt to reduce liquidity risk[207](index=207&type=chunk) - The Company leverages **strong free cash flow generation** to fund operations, debt servicing, capital reinvestment, share repurchases, and dividend payments[209](index=209&type=chunk) - As of June 30, 2024, **$350 million of debt matures within the next twelve months**, expected to be paid through refinancing, free cash flow, or cash on hand[211](index=211&type=chunk) [Cash and Cash Equivalents](index=40&type=section&id=Cash%20and%20Cash%20Equivalents) - The Company had approximately **$1.2 billion in cash and cash equivalents** at June 30, 2024[213](index=213&type=chunk) - Cash held by foreign subsidiaries is generally for **permanent reinvestment**, and repatriation to the U.S. is not currently planned[213](index=213&type=chunk) - Cash or cash equivalents in **Brazil and India** each exceeded 1% of consolidated assets at June 30, 2024[214](index=214&type=chunk) [Revolving Credit Facility and Other Committed Credit Facilities](index=40&type=section&id=Revolving%20Credit%20Facility%20and%20Other%20Committed%20Credit%20Facilities) - Whirlpool maintains a **$3.5 billion revolving credit facility** and a committed **$1.5 billion term loan**, along with approximately **$192 million** in committed credit facilities in Brazil and India[215](index=215&type=chunk) - The Company was in compliance with its interest coverage ratio under these facilities as of June 30, 2024[216](index=216&type=chunk) [Notes Payable](index=40&type=section&id=Notes%20Payable) - At June 30, 2024, **$778 million in notes payable** were outstanding, primarily under the revolving credit facility or commercial paper programs, used to fund working capital[217](index=217&type=chunk) [Trade Customers](index=40&type=section&id=Trade%20Customers) - **No material impacts from customer insolvencies** occurred during Q2 2024, and no immediate material insolvency situations are foreseen[218](index=218&type=chunk) [Guarantees](index=41&type=section&id=Guarantees) - For additional information on guarantees, refer to **Note 6** to the Consolidated Condensed Financial Statements[220](index=220&type=chunk) [Share Repurchase Program](index=41&type=section&id=Share%20Repurchase%20Program) - For additional information about the share repurchase program, refer to **Note 10** to the Consolidated Condensed Financial Statements[221](index=221&type=chunk) [Sources and Uses of Cash](index=41&type=section&id=Sources%20and%20Uses%20of%20Cash) - Cash used in operating activities increased in H1 2024 due to working capital fluctuations, lower inventory, and increases in accrued expenses and deferred taxes from the **MDA Europe deconsolidation**[227](index=227&type=chunk) - Cash used in investing activities increased in H1 2024 primarily due to a **$245 million decrease from divestitures**, representing cash held in MDA Europe[229](index=229&type=chunk) - Cash provided by financing activities increased in H1 2024 due to **increased short-term borrowings** and the sale of minority interest shares in Whirlpool India[230](index=230&type=chunk) Cash Flow (Millions of dollars) | Cash Flow (Millions of dollars) | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | |:---|:---|:---| | Cash provided by (used in) operating activities | $(485) | $(370) | | Cash provided by (used in) investing activities | $(432) | $(222) | | Cash provided by (used in) financing activities | $501 | $(110) | | Net change in cash and cash equivalents | $(488) | $(649) | [Financing Arrangements](index=41&type=section&id=Financing%20Arrangements) - The Company had total committed credit facilities of approximately **$5.2 billion** at June 30, 2024, with **$1.5 billion drawn** on the term loan facility[231](index=231&type=chunk) [Dividends](index=42&type=section&id=Dividends) - On April 15, 2024, the Board of Directors approved a quarterly dividend of **$1.75 per share** on common stock[244](index=244&type=chunk) [Off-Balance Sheet Arrangements](index=42&type=section&id=Off-Balance%20Sheet%20Arrangements) - Approximately **$361 million** was outstanding under bank guarantees, letters of credit, and surety bonds at June 30, 2024, primarily for Brazilian tax matters and other governmental obligations[245](index=245&type=chunk) [Non-GAAP Financial Measures](index=42&type=section&id=Non-GAAP%20Financial%20Measures) - Whirlpool supplements GAAP reporting with non-GAAP measures like **EBIT, ongoing EBIT, ongoing EPS, sales excluding foreign currency, and free cash flow** to provide a clearer understanding of ongoing operations and underlying business trends[247](index=247&type=chunk)[250](index=250&type=chunk) Non-GAAP Reconciliation (Millions of dollars, except per share data) | Non-GAAP Reconciliation (Millions of dollars, except per share data) | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | |:---|:---|:---| | Net earnings (loss) available to Whirlpool | $219 | $85 | | Earnings (loss) before interest & taxes | $112 | $290 | | Restructuring expense | 50 | — | | Impact of M&A transactions | 50 | 26 | | Legacy MDA Europe legal matters | — | 36 | | Ongoing EBIT | $212 | $352 | | Earnings (loss) per diluted share | $3.96 | $1.55 | | Impact of M&A transactions (per share) | 0.90 | 0.47 | | Legacy MDA Europe legal matters (per share) | — | 0.65 | | Restructuring expense (per share) | 0.91 | — | | Income tax impact (per share) | 0.26 | (0.12) | | Normalized tax rate adjustment (per share) | (3.64) | 1.66 | | Ongoing earnings per diluted share | $2.39 | $4.21 | Free Cash Flow (FCF) Reconciliation (Millions of dollars) | Free Cash Flow (FCF) Reconciliation (Millions of dollars) | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | |:---|:---|:---| | Cash provided by (used in) operating activities | $(485) | $(370) | | Capital expenditures | $(228) | $(217) | | Free cash flow | $(713) | $(587) | [Forward-Looking Perspective](index=45&type=section&id=Forward-Looking%20Perspective) - The Company estimates a full-year 2024 GAAP tax rate of approximately **25%** and an adjusted tax rate of approximately **(8)%**[262](index=262&type=chunk) 2024 Current Outlook | 2024 Current Outlook | Estimated GAAP earnings per diluted share | Industry Demand MDA North America | Industry Demand MDA Latin America | Industry Demand MDA Asia | Industry Demand SDA Global | Industry Demand MDA Europe (Q1 Actuals) | |:---|:---|:---|:---|:---|:---|:---| | Outlook | ~$3.00 | Flat | 5 - 7% | 4 - 6% | Flat | (1)% | 2024 Current Outlook (Millions of dollars) | 2024 Current Outlook (Millions of dollars) | Cash provided by (used in) operating activities | Capital expenditures | Free cash flow | |:---|:---|:---|:---| | Outlook | ~$1,050 | ~$550 | ~$500 | [Other Matters](index=46&type=section&id=Other%20Matters) - Whirlpool continues to be impacted by global economic uncertainty, including **raw material inflation, component shortages, and fluctuations in logistics** due to international conflicts and government actions[272](index=272&type=chunk) - **Antidumping duties** on large residential washers from South Korea, Mexico, and China remain in effect, with extension proceedings ongoing for Mexico[267](index=267&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=46&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) There have been no material changes to the company's market risk exposures since the last annual report - There have been **no material changes** to Whirlpool's exposures to market risk since December 31, 2023[273](index=273&type=chunk) [Item 4. Controls and Procedures](index=47&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded the company's disclosure controls and procedures were effective as of June 30, 2024 - The Chief Executive Officer and Chief Financial Officer concluded that **disclosure controls and procedures were effective** at the reasonable assurance level as of June 30, 2024[275](index=275&type=chunk) - There were **no changes in internal control over financial reporting** that materially affected, or are reasonably likely to materially affect, internal control over financial reporting during the most recent quarter[276](index=276&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=48&type=section&id=Item%201.%20Legal%20Proceedings) Note 6 of the financial statements details legal proceedings, with a $1 million disclosure threshold for environmental issues - Information regarding legal proceedings is detailed under 'Commitments and Contingencies' in **Note 6** to the Consolidated Condensed Financial Statements[279](index=279&type=chunk) - A threshold of **$1 million** is used for determining disclosure of certain environmental proceedings[279](index=279&type=chunk) [Item 1A. Risk Factors](index=48&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the Annual Report on Form 10-K - There have been **no material changes in risk factors** from those disclosed in Part I, Item 1A of the Annual Report on Form 10-K for the fiscal year ended December 31, 2023[280](index=280&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=48&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company's share repurchase program details include authorized amount, shares repurchased, and remaining authorization - The Board of Directors authorized a share repurchase program of up to **$4 billion**, with approximately **$2.5 billion remaining authorized** at June 30, 2024[281](index=281&type=chunk) - During the six months ended June 30, 2024, **455,952 shares were repurchased** under the program at an aggregate price of approximately **$50 million**[281](index=281&type=chunk) [Item 3. Defaults Upon Senior Securities](index=48&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) There were no defaults upon senior securities during the reporting period - There were **no defaults** upon senior securities[283](index=283&type=chunk) [Item 4. Mine Safety Disclosures](index=48&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Mine safety disclosures are not applicable to the company's operations - Mine Safety Disclosures are **not applicable** to Whirlpool Corporation[284](index=284&type=chunk) [Item 5. Other Information](index=48&type=section&id=Item%205.%20Other%20Information) There is no other information to report for the period - **No other information** is reported in this section[285](index=285&type=chunk) [Item 6. Exhibits](index=49&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including officer certifications and XBRL documents - Exhibits include certifications from the Chief Executive Officer (31.1) and Chief Financial Officer (31.2) pursuant to the **Sarbanes-Oxley Act of 2002**[287](index=287&type=chunk) - **XBRL Instance Document**, Taxonomy Extension Schema, Calculation Linkbase, Definition Linkbase, Label Linkbase, and Presentation Linkbase Documents are filed as exhibits[287](index=287&type=chunk) [SIGNATURES](index=50&type=section&id=SIGNATURES) The report is duly authorized and signed by the company's Executive Vice President and Chief Financial Officer - The report was signed on behalf of Whirlpool Corporation by **James W. Peters**, Executive Vice President and Chief Financial and Administrative Officer, on July 25, 2024[290](index=290&type=chunk)

-- Solid performance in SDA Global, MDA Latin America, and MDA Asia, all delivering double-digit net sales growth in the quarter -- Ongoing (non-GAAP) EBIT margin(1) of 5.3%; ongoing earnings per diluted share(2) of $2.39 BENTON HARBOR, Mich., July 24, 2024 /PRNewswire/ -- Whirlpool Corporation (NYSE: WHR), today reported second-quarter 2024 financial results. SEGMENT REVIEW MDA North America MDA Asia MDA NORTH AMERICA MDA LATIN AMERICA SDA GLOBAL Europe transaction closed April 1, 2024, as expected Reaffir ...

Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investors often face challenges in determining the right entry point, as stocks may lose momentum when their valuations exceed future growth potential [2] - A safer approach involves investing in bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify such opportunities [3] Group 2: Case Study - Whirlpool (WHR) - Whirlpool has shown a significant price increase of 16.5% over the past four weeks, indicating growing investor interest [4] - The stock has gained 6.9% over the past 12 weeks, with a beta of 1.44, suggesting it moves 44% more than the market [5] - WHR has a Momentum Score of A, indicating a favorable time to invest based on momentum [6] Group 3: Earnings Estimates and Valuation - An upward trend in earnings estimate revisions has contributed to WHR's Zacks Rank 2 (Buy), as analysts raising estimates attract more investor interest [7] - WHR is trading at a Price-to-Sales ratio of 0.29, suggesting it is undervalued at 29 cents for each dollar of sales [7] Group 4: Additional Opportunities - Besides WHR, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [8] - The Zacks Premium Screens offer over 45 different strategies tailored to various investing styles, aiding in stock selection [9]

Financial Results Announcement - Whirlpool Corporation will release its second-quarter financial results on July 24, 2024, at 4:05 p.m. ET [1] - A conference call to discuss the performance will be held on July 25, 2024, at 8 a.m. ET [1] Conference Call Participation - Participants can join the conference call by dialing 1 (888) 440-4038 for domestic calls or 1 (646) 960-0861 for international calls, using Conference ID 2610251 [2] - It is recommended that participants dial in at least 10 minutes prior to the call due to potential wait times [2] Webcast Information - The conference call will be available via live webcast on the company's website, with access through the "News & Events" tab [3] - Participants should visit the site at least 15 minutes before the call to download any necessary streaming media software [3] - Key financial statistics and an archived recording of the call will be accessible on the company's website for at least 30 days [3] Company Overview - Whirlpool Corporation is a leading kitchen and laundry appliance company, reporting approximately $19 billion in annual sales in 2023 [4] - The company employs around 59,000 individuals and operates 55 manufacturing and technology research centers [4] - Whirlpool's brand portfolio includes well-known names such as Whirlpool, KitchenAid, JennAir, Maytag, Amana, Brastemp, Consul, and InSinkErator [4] Investor Information - Important information for investors is routinely posted on the company's website in the "Investors" section [5] - The company intends to update the Hot Topics Q&A portion of its webpage to disclose material, non-public information [5]

The company has recently been the subject of takeover speculation. According to Reuters, diversified industrial company Bosch is looking at buying Whirlpool to bolster its household appliances business, BSH Hausgerate. Moreover, Whirlpool is arguably a much more attractive company now that it's positioned its European major domestic appliance (MDA) business with Turkish company Arcelik in return for a 25% stake in the new company, Beko Europe. The deal frees up cash resources and rids Whirlpool of a low-mar ...

Financial Data and Key Metrics Changes - The company reported a net sales decline of approximately 3% in Q1 2024, impacted by a normalized promotional environment from the previous year [17] - Ongoing earnings per share were $1.78, with ongoing EBIT margins of 4.3%, including the margin-dilutive MDA Europe business [19] - Free cash flow was negatively impacted by non-recurring cash outflows associated with the MDA Europe business, estimated at $250 million to $300 million [20] Business Line Data and Key Metrics Changes - MDA North America revenue decreased by 8% year-over-year, with EBIT margins at 5.6% [24] - MDA Latin America reported 8% net sales growth, with EBIT margins expanding to nearly 8% [30] - MDA Asia experienced a 2% revenue decline, with EBIT margins at 4.6% [31] - SDA Global achieved approximately 7 points of net sales growth, with EBIT margins at 18% [32] Market Data and Key Metrics Changes - North America industry volumes were soft, with a 2% decline in the U.S. industry due to elevated mortgage rates impacting consumer discretionary spending [7][24] - The company maintained market share in North America while experiencing strong share gains in Latin America [17] Company Strategy and Development Direction - The completion of the EMEA transaction is seen as a major milestone in the company's portfolio transformation towards a higher-growth and higher-margin business [6] - The company plans to increase promotional program prices by 5% to offset inflationary pressures, expecting benefits in the second half of 2024 [12] - A strong product pipeline for 2024 is emphasized, with continued investment in new product development [14] Management's Comments on Operating Environment and Future Outlook - Management remains positive about the U.S. housing market, citing an undersupply of 3 million to 4 million houses [13] - The company expects sequential margin expansion in North America throughout 2024, despite a slower start [39] - Management acknowledges sticky inflation in supply chain costs but remains focused on cost discipline and achieving $300 million to $400 million in cost savings [15][18] Other Important Information - The company declared a dividend of $1.75 per share for Q2, aiming for $400 million in dividends for the year [10] - The company is on track to achieve long-term leverage targets and free cash flow goals [11] Q&A Session Summary Question: Focus on North America MDA segment and margin expectations - Management explained the pricing structure and expressed confidence in achieving a 1% margin increase per quarter due to the promotional price increase [49][50][52] Question: Discretionary demand and competitive pricing - Management noted that while discretionary demand is limited, they believe their strong product pipeline will help maintain market share despite the price increase [61][62] Question: U.S. retail inventories and seasonal build - Management acknowledged some destocking in January but does not expect it to impact the typical seasonal build in refrigeration [71] Question: Arçelik transaction and stranded costs - Management indicated that stranded costs are not expected to be a significant headwind due to cost takeout actions and organizational simplification [72][75]

[PART I. FINANCIAL INFORMATION](index=5&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) This section presents Whirlpool's unaudited Consolidated Condensed Financial Statements for the three months ended March 31, 2024 [Consolidated Condensed Statements of Comprehensive Income (Loss)](index=6&type=section&id=Consolidated%20Condensed%20Statements%20of%20Comprehensive%20Income%20%28Loss%29) Whirlpool reported a net loss of **$259 million** for Q1 2024, a wider loss than the prior year, driven by decreased net sales and a significant loss on business sales Q1 2024 vs Q1 2023 Income Statement Highlights | Metric | Q1 2024 (Millions) | Q1 2023 (Millions) | Change | | :--- | :--- | :--- | :--- | | Net Sales | $4,490 | $4,649 | -3.4% | | Gross Margin | $642 | $763 | -15.9% | | Operating (Loss) Profit | $(116) | $43 | Negative Swing | | Loss on Sale of Businesses | $247 | $222 | +11.3% | | Net Loss Available to Whirlpool | $(259) | $(179) | +44.7% | | Diluted EPS | $(4.72) | $(3.27) | +44.3% | [Consolidated Condensed Balance Sheets](index=7&type=section&id=Consolidated%20Condensed%20Balance%20Sheets) As of March 31, 2024, total assets increased slightly to **$17.37 billion**, with cash decreasing to **$1.23 billion** and long-term debt rising to **$6.67 billion** Balance Sheet Summary (as of March 31, 2024) | Account | March 31, 2024 (Millions) | Dec 31, 2023 (Millions) | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $1,231 | $1,570 | | Total current assets | $6,192 | $6,207 | | Total assets | $17,370 | $17,312 | | **Liabilities & Equity** | | | | Total current liabilities | $6,550 | $6,948 | | Long-term debt | $6,674 | $6,414 | | Total liabilities | $14,760 | $14,775 | | Total stockholders' equity | $2,610 | $2,537 | [Consolidated Condensed Statements of Cash Flows](index=8&type=section&id=Consolidated%20Condensed%20Statements%20of%20Cash%20Flows) Cash used in operating activities significantly increased to **$873 million** in Q1 2024 due to a larger net loss and unfavorable working capital changes Q1 2024 vs Q1 2023 Cash Flow Summary | Cash Flow Activity (Millions) | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net cash used in operating activities | $(873) | $(477) | | Net cash used in investing activities | $(115) | $(110) | | Net cash provided by (used in) financing activities | $818 | $(38) | | **Net decrease in cash** | **$(339)** | **$(599)** | [Notes to the Consolidated Condensed Financial Statements](index=9&type=section&id=Notes%20to%20the%20Consolidated%20Condensed%20Financial%20Statements) These notes detail accounting policies, financial figures, and significant events including macroeconomic risks, revenue, debt, and the European business divestiture - The company's Maytag and InSinkErator trademarks continue to be at risk for impairment as of March 31, 2024, due to global economic uncertainty, though no triggering events were identified in Q1[30](index=30&type=chunk) - The company reorganized its operating segments effective January 1, 2024, into: MDA North America, MDA Europe, MDA Latin America, MDA Asia, and SDA Global; all prior period amounts have been reclassified[129](index=129&type=chunk) - The transaction to contribute the European major domestic appliance business to a new entity with Arçelik closed on April 1, 2024, with a loss of **$247 million** recorded in Q1 2024, bringing the cumulative loss to approximately **$1.9 billion**[127](index=127&type=chunk)[140](index=140&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=31&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) The MD&A provides management's perspective on Q1 2024 financial performance, highlighting a GAAP net loss, segment results, liquidity, and the full-year 2024 outlook [Overview](index=32&type=section&id=Overview) Whirlpool reported a GAAP net loss of **$259 million** in Q1 2024, impacted by the EMEA transaction charge and negative price/mix, partially offset by cost actions Q1 2024 Key Performance Indicators | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | GAAP Net Loss Available to Whirlpool | $(259)M | $(179)M | | GAAP Diluted EPS | $(4.72) | $(3.27) | | Ongoing (Non-GAAP) EPS | $1.78 | $2.66 | | Cash Used in Operating Activities | $(873)M | $(477)M | | Free Cash Flow (Non-GAAP) | $(988)M | $(573)M | - The company is implementing **$300 to $400 million** in cost takeout actions for 2024 and increased promotional program prices in MDA North America to navigate the challenging macroeconomic environment[155](index=155&type=chunk) [Results of Operations](index=33&type=section&id=Results%20of%20Operations) Consolidated net sales decreased by **3.4%** to **$4.49 billion** in Q1 2024 due to unfavorable price/mix, with varied segment performance and **$23 million** in restructuring charges Segment Performance Summary - Q1 2024 vs Q1 2023 | Segment | Net Sales Change | EBIT Margin Q1 2024 | EBIT Margin Q1 2023 | Key Drivers | | :--- | :--- | :--- | :--- | :--- | | MDA North America | -8.1% | 5.6% | 10.1% | Unfavorable price/mix, lower demand | | MDA Latin America | +12.0% | 7.8% | 4.8% | Increased volume, cost actions | | MDA Asia | -2.4% | 4.6% | 3.3% | Unfavorable price/mix, offset by cost actions | | MDA Europe | -5.0% | (1.1)% | (0.6)% | Lower volume, increased costs | | SDA Global | +7.1% | 18.1% | 11.2% | Higher volumes, cost actions | - The company incurred a loss on sale of businesses of **$247 million** in Q1 2024, related to the divestiture of the European major domestic appliance business[181](index=181&type=chunk) - Restructuring charges of **$23 million** were recorded in Q1 2024 for workforce reduction plans aimed at simplifying the organization post-Europe transaction[179](index=179&type=chunk) [Financial Condition and Liquidity](index=37&type=section&id=Financial%20Condition%20and%20Liquidity) The company's liquidity strategy relies on operating cash flow and debt, with **$1.2 billion** in cash and **$462 million** from the Whirlpool India share sale used for debt reduction - On February 20, 2024, the company sold a portion of its shares in Whirlpool of India, reducing its ownership from 75% to 51% and generating proceeds of approximately **$462 million**, which were used for debt reduction[191](index=191&type=chunk) - The company had total committed credit facilities of approximately **$5.7 billion** at March 31, 2024, with **$2.0 billion** drawn on the term loan facility[206](index=206&type=chunk) - During Q1 2024, the company repurchased **456 thousand shares** for approximately **$50 million** under its share repurchase program[119](index=119&type=chunk) [Non-GAAP Financial Measures](index=40&type=section&id=Non-GAAP%20Financial%20Measures) This section explains non-GAAP measures like ongoing EBIT and EPS, providing a reconciliation to GAAP figures to offer a clearer view of ongoing operations Reconciliation of GAAP to Ongoing (Non-GAAP) EBIT | Metric (Millions) | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Earnings (loss) before interest & taxes (GAAP) | $(87) | $(33) | | Restructuring expense | $23 | — | | Impact of M&A transactions | $259 | $222 | | Legacy MDA Europe legal matters | — | $62 | | **Ongoing EBIT (Non-GAAP)** | **$195** | **$251** | Reconciliation of GAAP to Ongoing (Non-GAAP) EPS | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Earnings (loss) per diluted share (GAAP) | $(4.72) | $(3.27) | | Adjustments (M&A, Restructuring, Tax, etc.) | $6.50 | $5.93 | | **Ongoing earnings per diluted share (Non-GAAP)** | **$1.78** | **$2.66** | [Forward-Looking Perspective](index=43&type=section&id=Forward-Looking%20Perspective) Whirlpool's full-year 2024 outlook projects GAAP EPS between **$5.00** and **$7.00**, with anticipated cash from operating activities of **$1.15 to $1.25 billion** Full-Year 2024 Outlook | Metric | 2024 Current Outlook | | :--- | :--- | | Estimated GAAP EPS | $5.00 - $7.00 | | Cash from Operating Activities | ~$1,150M - $1,250M | | Free Cash Flow | ~$550M - $650M | | Capital Expenditures | ~$600M | | **Industry Demand Growth** | | | MDA North America | 0% - 2% | | MDA Latin America | 0% - 3% | | MDA Asia | 4% - 6% | | SDA Global | 2% - 4% | [Quantitative and Qualitative Disclosures About Market Risk](index=44&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes to the company's market risk exposures have occurred since December 31, 2023 - There have been no material changes to the company's market risk exposures since December 31, 2023[226](index=226&type=chunk) [Controls and Procedures](index=45&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2024, with no material changes to internal control over financial reporting - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of March 31, 2024[227](index=227&type=chunk) - No material changes to internal control over financial reporting were identified during the first quarter of 2024[228](index=228&type=chunk) [PART II. OTHER INFORMATION](index=46&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=46&type=section&id=Item%201.%20Legal%20Proceedings) Detailed information on legal proceedings is referenced in Note 6 of the financial statements, with a **$1 million** disclosure threshold for environmental matters - Detailed information on legal proceedings is located in Note 6 to the Consolidated Condensed Financial Statements[231](index=231&type=chunk) [Risk Factors](index=46&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the company's risk factors have been reported since the 2023 Annual Report on Form 10-K - No material changes to risk factors were reported from the company's 2023 Form 10-K[232](index=232&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=46&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In Q1 2024, Whirlpool repurchased **455,952 shares** for approximately **$50 million**, with **$2.5 billion** remaining authorized for future repurchases Q1 2024 Share Repurchase Activity | Period | Shares Purchased | Average Price Paid | Total Cost (Approx.) | | :--- | :--- | :--- | :--- | | Jan 2024 | 0 | N/A | $0M | | Feb 2024 | 455,952 | $109.66 | $50M | | Mar 2024 | 0 | N/A | $0M | | **Total Q1** | **455,952** | **$109.66** | **$50M** | - Approximately **$2.5 billion** remained available for share repurchases under the authorized program as of March 31, 2024[233](index=233&type=chunk) [Defaults Upon Senior Securities](index=46&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities during the period - None[235](index=235&type=chunk) [Mine Safety Disclosures](index=46&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[236](index=236&type=chunk) [Other Information](index=46&type=section&id=Item%205.%20Other%20Information) The company reported no other information for this item - None[236](index=236&type=chunk) [Exhibits](index=47&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including amendments to agreements, officer certifications as required by the Sarbanes-Oxley Act, and XBRL data files

WhirlB First-Quarter 2024 Earnings Review Thursday, April 25, 2024 Cautionary Statement This document contains forward-looking statements about Whirlpool Corporation and its consolidated subsidiaries ("Whirlpool") that speak only as of this date. Whirlpool disclaims any obligation to update these statements. Forward-looking statements in this document may include, but are not limited to, statements regarding future financial results, long-term value creation goals, restructuring and resegmentation expectati ...

[First-Quarter 2024 Financial Highlights](index=1&type=section&id=First-Quarter%202024%20Financial%20Highlights) The company reported a net loss in Q1 2024, with declines in sales and EBIT, while reaffirming full-year guidance - The company announced the closing of its Europe transaction on April 1st, a significant milestone in its portfolio transformation This is expected to deliver over **$750 million** in net present value of future cash flows and an incremental **$250-$300 million** in cash flow in 2025[3](index=3&type=chunk) - The company declared a **$1.75 dividend per share** in both Q1 and Q2 and repaid a **$500 million** term loan in April, demonstrating commitment to its capital allocation priorities[3](index=3&type=chunk) - Full-year 2024 guidance is reaffirmed, with ongoing earnings per diluted share expected to be between **$13.00 and $15.00**, and free cash flow between **$550 million and $650 million**[3](index=3&type=chunk) Q1 2024 Key Financial Results | First-Quarter Results | 2024 | 2023 | Change | | --- | --- | --- | --- | | Net sales ($M) | $4,490 | $4,649 | (3.4)% | | GAAP net earnings (loss) available to Whirlpool ($M) | $(259) | $(179) | (44.7)% | | Ongoing EBIT ($M) | $195 | $251 | (22.3)% | | GAAP earnings (loss) per diluted share | $(4.72) | $(3.27) | (44.3)% | | Ongoing earnings per diluted share | $1.78 | $2.66 | (33.1)% | Q1 2024 Free Cash Flow | Free Cash Flow | 2024 | 2023 | Change | | --- | --- | --- | --- | | Cash provided by (used in) operating activities ($M) | $(873) | $(477) | $(396) | | Free cash flow ($M) | $(988) | $(573) | $(415) | [Segment Performance Review](index=2&type=section&id=SEGMENT%20REVIEW) Q1 2024 segment performance showed strength in Latin America, Asia, and SDA Global, counteracting weakness in North America and Europe [MDA North America](index=2&type=section&id=MDA%20North%20America) MDA North America net sales declined by **8.1%** and EBIT margin fell to **5.6%** due to unfavorable price/mix and a challenging promotional environment - The decline in sales and EBIT margin was attributed to an unfavorable price/mix and a challenging promotional environment, alongside a **2%** decline in the overall industry[6](index=6&type=chunk) MDA North America Q1 Performance | Metric | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | | Net Sales ($M) | $2,428 | $2,641 | (8.1)% | | EBIT ($M) | $135 | $266 | (49.2)% | | EBIT Margin | 5.6% | 10.1% | (4.5pts) | [MDA Europe](index=2&type=section&id=MDA%20Europe) MDA Europe net sales decreased by **5.0%** and EBIT margin worsened to **-1.1%** due to persistent weak demand and unfavorable price/mix - The sales decline was primarily due to continued demand weakness in the European market[6](index=6&type=chunk) MDA Europe Q1 Performance | Metric | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | | Net Sales ($M) | $804 | $846 | (5.0)% | | EBIT ($M) | $(9) | $(5) | (80.0)% | | EBIT Margin | (1.1)% | (0.6)% | (0.5pts) | [MDA Latin America](index=2&type=section&id=MDA%20Latin%20America) MDA Latin America delivered strong performance with **12.0%** net sales growth and EBIT margin improving to **7.8%**, driven by market share gains and cost actions - Strong share gains in the region more than offset unfavorable price/mix, leading to sales growth[6](index=6&type=chunk) - EBIT margin expansion was driven by volume, cost actions, and a tax benefit[6](index=6&type=chunk) MDA Latin America Q1 Performance | Metric | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | | Net Sales ($M) | $837 | $747 | 12.0% | | EBIT ($M) | $65 | $36 | 80.6% | | EBIT Margin | 7.8% | 4.8% | 3.0pts | [MDA Asia](index=2&type=section&id=MDA%20Asia) MDA Asia net sales declined slightly by **2.4%**, but EBIT margin improved to **4.6%** due to effective cost take-out actions offsetting unfavorable price/mix - EBIT margin increased due to cost take-out actions, which successfully offset negative price/mix impacts[6](index=6&type=chunk) MDA Asia Q1 Performance | Metric | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | | Net Sales ($M) | $239 | $245 | (2.4)% | | EBIT ($M) | $11 | $8 | 37.5% | | EBIT Margin | 4.6% | 3.3% | 1.3pts | [SDA Global](index=2&type=section&id=SDA%20Global) SDA Global reported robust growth with **7.1%** net sales increase and EBIT margin expanding to **18.1%**, driven by cost actions and volume growth - Growth was observed throughout key countries and the direct-to-consumer business, with EBIT margin expansion driven by cost actions and higher volumes[6](index=6&type=chunk) SDA Global Q1 Performance | Metric | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | | Net Sales ($M) | $182 | $170 | 7.1% | | EBIT ($M) | $33 | $19 | 73.7% | | EBIT Margin | 18.1% | 11.2% | 6.9pts | [Full-Year 2024 Outlook](index=3&type=section&id=FULL-YEAR%202024%20OUTLOOK) The company reaffirms its full-year 2024 guidance for net sales, ongoing EPS, and free cash flow, with specific tax rate expectations - The company reaffirms its full-year 2024 net sales expectation of approximately **$16.9 billion**[8](index=8&type=chunk) - Full-year ongoing EPS is reaffirmed at **$13.00 to $15.00**, which includes **$300-$400 million** of cost actions[8](index=8&type=chunk) - GAAP EPS is expected to be **$5.00 to $7.00**, impacted by a non-cash charge from the Europe transaction[8](index=8&type=chunk) - The company reaffirms full-year free cash flow guidance of approximately **$550 million to $650 million**[8](index=8&type=chunk) - The expected full-year 2024 adjusted (non-GAAP) tax rate is approximately **0 percent**, while the GAAP tax rate is expected to be approximately **25 percent**[8](index=8&type=chunk) Full-Year 2024 Guidance Summary | Guidance Summary | 2023 Reported | 2023 Like for Like | 2024 Guidance | | --- | --- | --- | --- | | Net sales ($M) | $19,455 | ~$16,900 | ~$16,900 | | Cash provided by operating activities ($M) | $915 | N/A | $1,150 - $1,250 | | Free cash flow ($M) | $366 | N/A | $550 - $650 | | GAAP net earnings margin (%) | 2.5% | N/A | ~2.0% | | Ongoing EBIT margin (%) | 6.1% | ~6.9% | ~6.8% | | GAAP earnings per diluted share | $8.72 | N/A | $5.00 - $7.00 | | Ongoing earnings per diluted share | $16.16 | N/A | $13.00 - $15.00 | [Consolidated Financial Statements (Unaudited)](index=6&type=section&id=Consolidated%20Financial%20Statements%20%28Unaudited%29) This section presents the unaudited condensed consolidated financial statements for Q1 2024, including Income Statements, Balance Sheets, and Cash Flows [Consolidated Condensed Statements of Income (Loss)](index=6&type=section&id=Consolidated%20Condensed%20Statements%20of%20Income%20%28Loss%29) Q1 2024 net sales were **$4.49 billion**, down from **$4.65 billion** in Q1 2023, resulting in a net loss of **$259 million** or **$(4.72)** per diluted share Q1 2024 Consolidated Condensed Statement of Income (Loss) | (Millions of dollars, except per share data) | Three Months Ended 2024 | Three Months Ended 2023 | | :--- | :--- | :--- | | Net sales | $4,490 | $4,649 | | Gross margin | $642 | $763 | | Operating (loss) profit | $(116) | $43 | | Net earnings (loss) available to Whirlpool | $(259) | $(179) | | Diluted net earnings (loss) available to Whirlpool | $(4.72) | $(3.27) | [Consolidated Condensed Balance Sheets](index=7&type=section&id=Consolidated%20Condensed%20Balance%20Sheets) As of March 31, 2024, total assets were **$17.37 billion**, with total liabilities at **$14.76 billion** and stockholders' equity at **$2.61 billion** Consolidated Condensed Balance Sheet Highlights | (Millions of dollars) | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $1,231 | $1,570 | | Total current assets | $6,192 | $6,207 | | Total assets | $17,370 | $17,312 | | Total current liabilities | $6,550 | $6,948 | | Long-term debt | $6,674 | $6,414 | | Total stockholders' equity | $2,610 | $2,537 | [Consolidated Condensed Statements of Cash Flows](index=8&type=section&id=Consolidated%20Condensed%20Statements%20of%20Cash%20Flows) Q1 2024 cash used in operating activities was **$873 million**, resulting in a **$988 million** free cash outflow after capital expenditures, with **$818 million** from financing activities Q1 2024 Consolidated Condensed Statement of Cash Flows | (Millions of dollars) | Three Months Ended 2024 | Three Months Ended 2023 | | :--- | :--- | :--- | | Cash provided by (used in) operating activities | $(873) | $(477) | | Cash provided by (used in) investing activities | $(115) | $(110) | | Cash provided by (used in) financing activities | $818 | $(38) | | Increase (decrease) in cash, cash equivalents and restricted cash | $(339) | $(599) | [Reconciliation of GAAP to Non-GAAP Financial Measures](index=9&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Financial%20Measures) This section details reconciliations of non-GAAP financial measures, including ongoing EBIT and free cash flow, to their GAAP equivalents for Q1 2024 and full-year outlook [Definition of Non-GAAP Measures](index=9&type=section&id=Definition%20of%20Non-GAAP%20Measures) The company utilizes non-GAAP "ongoing" measures like EBIT, EPS, organic net sales, and free cash flow to analyze core operational performance trends - Key non-GAAP measures used by management include: - **Ongoing EBIT/EPS:** Excludes items not indicative of ongoing operations[19](index=19&type=chunk) - **Organic net sales:** Excludes impacts from M&A and foreign currency[22](index=22&type=chunk) - **Free cash flow:** Cash from operating activities less capital expenditures, used as a measure of liquidity[28](index=28&type=chunk) [Q1 2024 Reconciliation](index=11&type=section&id=Q1%202024%20Reconciliation) Q1 2024 GAAP net loss per share of **$(4.72)** was reconciled to an ongoing EPS of **$1.78**, primarily adjusted for restructuring and M&A impacts Q1 2024 GAAP to Ongoing EPS Reconciliation | | Earnings before interest & taxes ($M) | Earnings per diluted share | | :--- | :--- | :--- | | **Reported measure (GAAP)** | **$(87)** | **$(4.72)** | | Restructuring expense | $23 | $0.41 | | Impact of M&A transactions | $259 | $4.72 | | Normalized tax rate adjustment | - | $1.37 | | **Ongoing measure (Non-GAAP)** | **$195** | **$1.78** | [Full-Year 2024 Outlook Reconciliation](index=13&type=section&id=Full-Year%202024%20Outlook%20Reconciliation) The full-year 2024 outlook reconciles GAAP EPS of **$5.00 - $7.00** to ongoing EPS of **$13.00 - $15.00**, adjusted for restructuring and M&A impacts FY 2024 Outlook GAAP to Ongoing EPS Reconciliation | | Earnings before interest & taxes ($M) | Earnings per diluted share | | :--- | :--- | :--- | | **Reported measure (GAAP)** | **~$820** | **$5.00 - $7.00** | | Restructuring Expense | ~$50 | ~1.00 | | Impact of M&A transactions | ~$275 | ~5.00 | | Normalized tax rate adjustment | - | ~2.00 | | **Ongoing measure (Non-GAAP)** | **~$1,150** | **$13.00 - $15.00** | [Free Cash Flow Reconciliation](index=17&type=section&id=Free%20Cash%20Flow%20Reconciliation) Free cash flow is reconciled from operating activities by subtracting capital expenditures, showing a **$988 million** Q1 2024 outflow and a **$550-$650 million** full-year 2024 projected inflow Free Cash Flow Reconciliation (Q1 and FY 2024 Outlook) | (millions of dollars) | Three Months Ended March 31, 2024 | 2024 Outlook | | :--- | :--- | :--- | | Cash provided by (used in) operating activities | $(873) | $1,150 - $1,250 | | Capital expenditures | (115) | (600) | | **Free cash flow** | **$(988)** | **$550 - $650** | [Company Information and Disclosures](index=4&type=section&id=Company%20Information%20and%20Disclosures) This section provides corporate information, including a company overview, investor website disclosure, and a safe harbor statement for forward-looking statements [About Whirlpool Corporation](index=4&type=section&id=About%20Whirlpool%20Corporation) Whirlpool Corporation is a leading kitchen and laundry appliance company with iconic brands, reporting approximately **$19 billion** in 2023 annual net sales - Whirlpool is a leading appliance company with brands such as Whirlpool, KitchenAid, JennAir, Maytag, and InSinkErator[9](index=9&type=chunk) - In 2023, the company generated approximately **$19 billion** in annual net sales and employed **59,000** people[9](index=9&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) This document contains forward-looking statements on financial performance and future expectations, subject to risks and uncertainties detailed in SEC filings - The report includes forward-looking statements concerning 2024 financial performance, cost take-out, portfolio transformation, and future cash flow expectations[11](index=11&type=chunk) - Key risks include intense industry competition, reliance on significant trade customers, ability to innovate, supply chain disruptions, geopolitical events, cybersecurity threats, and fluctuations in material costs[11](index=11&type=chunk)[12](index=12&type=chunk)