WHIRLPOOL CORPORATION 
BENTON HARBOR, Mich., July 23, 2014 /PRNewswire/ -- Whirlpool Corporation (NYSE: WHR) announced today second-quarter GAAP net earnings of $179 million, or $2.25 per diluted share, compared to $198 million, or $2.44 per diluted share, reported for the same prior-year period. Ongoing business earnings per diluted share((1) )increased to a second quarter record $2.62, compared to $2.37 in the prior-year period, mainly driven by improved product price and mix, ongoing cost productivity and the benefit of cost and capacity-reduction initiatives.
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Net sales in the quarter were $4.7 billion compared to $4.7 billion during the same prior-year period. Excluding the impact of both foreign currency and Brazilian (BEFIEX) tax credits, sales increased approximately 1 percent.
"The second-quarter results were in line with our expectations as our North America Region delivered record operating profit," said Jeff M. Fettig, chairman and chief executive officer of Whirlpool Corporation. "Overall, the underlying fundamentals of our business remain strong and we continue to invest in our business through innovative new products and acquisitions."
Second-quarter GAAP operating profit totaled $291 million, compared to $328 million in the same prior-year period. Ongoing business operating profit((2)) totaled $330 million, or 7.1 percent of sales, compared to $335 million, or 7.1 percent of sales, in the same prior-year period. Improved product price and mix, ongoing cost productivity and the benefit of cost and capacity-reduction initiatives were more than offset by lower unit volumes, higher material costs, foreign currency and increased investments in marketing, technology and products.
During the six months ended June 30, 2014, the company reported cash used in operating activities of $(368) million compared to $(196) million in the prior-year period. On a year-to-date basis, Whirlpool Corporation reported free cash flow((3)) use of $(622) million, compared to free cash flow((3)) use of $(373) million in the same prior-year period. Free cash flow((3) )use was primarily driven by increased capital spending and higher levels of inventory to support product line transitions and new product launches in the second half.
OUTLOOK
Whirlpool Corporation has adjusted its full-year 2014 guidance to reflect trade customer inventory transitions in China related to the pending acquisition of a majority stake in Hefei Rongshida Sanyo Electric Co., Ltd. and investment expenses related to the pending acquisition of a majority stake in Indesit Company S.p.A. The company expects full-year net earnings per diluted share of $10.30 to $10.80 and full-year ongoing business earnings per diluted share of $11.50 to $12.00.
2014 Diluted EPS(i)
Ongoing GAAP
------- ----
Previous Outlook $12.00-$12.50 $11.05-$11.55
China Trade
Inventory
Transitions (0.50) (0.50)
Indesit Investment
Expenses - (0.25)
--- -----
Current Outlook $11.50-$12.00 $10.30-$10.80
2014 EPS Outlook
----------------
GAAP Diluted EPS(i) $10.30-$10.80
Restructuring Expense ~0.95
Brazilian (BEFIEX) Tax Credits (0.18)
Investment Expense(ii) ~0.46
Antitrust Resolutions 0.02
----
Ongoing Business Diluted EPS $11.50-$12.00
=============
(i) Diluted EPS available to
Whirlpool.
(ii) Previous guidance of $0.21 was
increased by $0.25 for
Indesit investment expense.
For the full-year 2014, the company expects to generate free cash flow((3)) of $600 million to $650 million. Included in this guidance are restructuring cash outlays of up to $150 million, capital spending of $625 million to $675 million and U.S. pension contributions of approximately $160 million.
"For the balance of the year, we will benefit from increasing global demand, new product introductions, previously announced price increases and strong productivity," said Fettig. "We expect to acquire majority interests in Hefei Sanyo and Indesit by the end of this year, all of which provides us with an outstanding platform for growth and value creation in 2015 and beyond."
SECOND-QUARTER REGIONAL REVIEW
Whirlpool North America
Whirlpool North America reported second-quarter net sales of $2.7 billion compared to $2.6 billion in the same prior-year period, an increase of over 3 percent. Excluding the impact of currency, sales increased approximately 4 percent.
The region reported a record second-quarter operating profit of $285 million, or 10.6 percent of sales, compared to $262 million, or 10.1 percent of sales, in the same prior-year period. Ongoing cost productivity and cost and capacity-reduction benefits offset higher material costs, foreign currency and increased investments in marketing, technology and products.
The company expects full-year 2014 industry unit shipments to increase by approximately 5 percent.
Whirlpool Europe, Middle East and Africa
Whirlpool Europe, Middle East and Africa reported second-quarter net sales of $746 million compared to $731 million in the same prior-year period. Excluding the impact of currency, sales decreased approximately 3 percent.
The region reported second-quarter operating profit of $2 million, compared to an operating loss of $(6) million in the same prior-year period. Ongoing cost productivity, the benefit of cost and capacity-reduction initiatives, and improved product price and mix more than offset lower unit volumes, foreign currency and increased investments in marketing, technology and products.
The company expects full-year 2014 industry unit shipments to be flat to up 2 percent.
Whirlpool Latin America
Whirlpool Latin America reported second-quarter net sales of $1.1 billion, compared to $1.2 billion in the same prior-year period. Excluding the impact of currency and BEFIEX tax credits, sales declined less than 4 percent.
The region reported second-quarter operating profit of $87 million, compared to $135 million in the same prior-year period. During the second quarter of 2013, the company monetized $24 million of BEFIEX tax credits. Ongoing business segment operating profit((4)) totaled $87 million, or 8.0 percent of sales, compared to $111 million, or 9.3 percent of sales, in the same prior-year period. Improved product price and mix was more than offset by lower unit volumes, higher material costs and foreign currency.
The company expects full-year 2014 industry unit shipments to be flat to down 3 percent.
Whirlpool Asia
Whirlpool Asia reported second-quarter net sales of $211 million compared to $246 million in the same prior-year period. Excluding the impact of currency, sales decreased approximately 9 percent.
The region reported second-quarter operating profit of $4 million, or 1.9 percent of sales, compared to $14 million, or 5.6 percent of sales, in the same prior-year period. Improved price and mix and ongoing cost productivity were more than offset by lower unit volumes and margins due to trade inventory transitions in China related to the pending acquisition, as well as higher material costs and foreign currency.
The company expects full-year 2014 industry unit shipments to be flat.
(1) A reconciliation of ongoing business earnings per diluted share, a non-GAAP financial measure, to reported net earnings per diluted share available to Whirlpool and other important information, appears below.
(2) A reconciliation of ongoing business operating profit, a non-GAAP financial measure, to reported operating profit and other important information, appears below.
(3) A reconciliation of free cash flow, a non-GAAP financial measure, to cash provided by operating activities and other important information, appears below.
(4) A reconciliation of ongoing business segment operating profit, a non-GAAP financial measure, to reported segment operating profit and other important information, appears below.
SECOND-QUARTER 2014 PRODUCT LEADERSHIP, INNOVATION AND AWARDS
Whirlpool Corporation is at the forefront of the home appliance industry - with deep consumer insights and the strongest portfolio of brands worldwide. Our products are uniquely positioned with consumers because they are as inventive as they are practical. We offer compelling home solutions that expand beyond our core appliance business. Across our company and around the world, we are strengthening our consumer demand by delivering innovation that matters to consumers and positioning our company for continued growth and profitability.
Awards and Recognition
-- Whirlpool Corporation's new Whirlpool Duet steam dryer received the
industry's first ENERGY STAR® qualification for clothes dryers. Over
400 Whirlpool Corporation appliances carry the U.S. Environmental
Protection Agency's ENERGY STAR label - more than any other
manufacturer.
-- Whirlpool Corporation was a platinum sponsor of the Energy Efficiency
Global Forum 2014, hosted by the Alliance to Save Energy. Whirlpool
efficiency experts joined more than 120 leaders from around the world in
sharing insights and key learnings on the topic of energy efficiency.
-- In May, the Whirlpool Duet steam washer was named "Best Custom Wash" in
the front-load category by a leading U.S. consumer publication.
-- In May, the Maytag Bravos XL HE washer with steam was named "TLC Champ"
in the modern top-load category by a leading U.S. consumer publication.
-- Whirlpool Latin America was named the best company of the electronics
industry by Exame business magazine.
-- Whirlpool Latin America was recognized as the most innovative company in
Brazil by INFO magazine, which focuses on technology.
-- At the Women's Empowerment Principles event, hosted by the United
Nations, Whirlpool Latin America received an honorary mention for its
work in improving the lives of women in Brazil.
Product Innovation
-- In North America, the new KitchenAid dishwasher features an optional
ProScrub cycle that eliminates the need to pre-rinse dishes and a
groundbreaking wash system that uses a unique, ultra-fine filter to
filter 100% of the wash water for a shorter overall wash cycle with less
water usage.
-- The Whirlpool 6th Sense induction cooktop, available in Europe, combines
the power of induction with 6th Sense technology for greater
intuitiveness and ease of use. With just one touch, consumers can pick
from the most frequent cooking methods, and the large FlexiCook surface
makes it easier than ever to prepare a variety of dishes.
-- In Europe, the new Whirlpool refrigerator and freezer can be installed
separately or as a pair, in both freestanding and built-in
configurations, providing superior versatility for the home. The pair's
lighting system and premium interior design make it easier to manage
your groceries and meals, while the 6th Sense FreshControl and
ShockFreeze technologies keep food fresh longer.
-- Whirlpool India's new line of Whirlpool Protton no-frost refrigerators
use less energy than a CFL light bulb while making it easier for
families to preserve their groceries and keep food fresh.
-- Whirlpool brand's 3D Cool Climate Control line of split air conditioners
bring fast, powerful and uniform cooling to consumers in India. With
three preset climate options, consumers can also quickly adjust the
temperature during the country's changing summer conditions.
Product Line Growth
-- The North America Region broadened its line of smart appliances with the
launch of the Whirlpool smart front-load washer and dryer with Nest
Technology. The laundry pair uses the Nest Application Programming
Interface to help save consumers energy and keep their laundry fresh if
the cycle ends while they are away.
-- The Consul Facilite automatic washer offers consumers in Brazil's
emerging middle class best-in-class quality at a price they can afford.
Doing the laundry is less of a chore, thanks to the easy dosing
detergent dispenser and environmentally friendly water reuse function.
Growth Beyond Core Appliances
-- Whirlpool Corporation and P&G introduced Swash, a revolutionary at-home
clothing care system that reduces wrinkles, refreshes fabric, restores
the fit lost after wear and preserves clothing. In just 10 minutes with
the push of a button, the Swash system allows people to reduce or
eliminate ironing, save on dry cleaning, and better care for and
preserve clothes.
Geographic Expansion
-- The Latin America region expanded its production of Whirlpool Max
refrigerators - now locally manufactured and sold in Colombia,
strengthening the brand's presence outside of the Brazilian market.
About Whirlpool Corporation
Whirlpool Corporation is the world's leading global manufacturer and marketer of major home appliances, with annual sales of approximately $19 billion in 2013, 69,000 employees and 59 manufacturing and technology research centers around the world. The company markets Whirlpool, Maytag, KitchenAid, Jenn-Air, Amana, Brastemp, Consul, Bauknecht and other major brand names. Additional information about the company can be found at http://www.whirlpoolcorp.com.
Whirlpool Additional Information:
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 expected earnings per share, cash flow, productivity and material and oil-related prices. Many risks, contingencies and uncertainties could cause actual results to differ materially from Whirlpool's forward-looking statements. Among these factors are: (1) intense competition in the home appliance industry reflecting the impact of both new and established global competitors, including Asian and European manufacturers; (2) Whirlpool's ability to continue its relationship with significant trade customers and the ability of these trade customers to maintain or increase market share; (3) acquisition and investment-related risk, including risks associated with our pending acquisitions of Hefei Sanyo and Indesit; (4) changes in economic conditions which affect demand for our products, including the strength of the building industry and the level of interest rates; (5) product liability and product recall costs; (6) inventory and other asset risk; (7) risks related to our international operations, including changes in foreign regulations, regulatory compliance and disruptions arising from natural disasters or terrorist attacks; (8) the uncertain global economy; (9) the ability of Whirlpool to achieve its business plans, productivity improvements, cost control, price increases, leveraging of its global operating platform, and acceleration of the rate of innovation; (10) Whirlpool's ability to maintain its reputation and brand image; (11) fluctuations in the cost of key materials (including steel, plastic, resins, copper and aluminum) and components and the ability of Whirlpool to offset cost increases; (12) litigation, tax, and legal compliance risk and costs, especially costs which may be materially different from the amount we expect to incur or have accrued for; (13) the effects and costs of governmental investigations or related actions by third parties; (14) Whirlpool's ability to obtain and protect intellectual property rights; (15) the ability of suppliers of critical parts, components and manufacturing equipment to deliver sufficient quantities to Whirlpool in a timely and cost-effective manner; (16) health care cost trends, regulatory changes and variations between results and estimates that could increase future funding obligations for pension and postretirement benefit plans; (17) information technology system failures and data security breaches; (18) the impact of labor relations; (19) our ability to attract, develop and retain executives and other qualified employees; (20) changes in the legal and regulatory environment including environmental and health and safety regulations; and (21) the ability of Whirlpool to manage foreign currency fluctuations.
Additional information concerning these and other factors can be found in Whirlpool's filings with the Securities and Exchange Commission, including the most recent annual report on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K.
WHIRLPOOL CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
FOR THE PERIODS ENDED JUNE 30
(Millions of dollars, except share data)
Three Months Ended Six Months Ended
------------------ ----------------
2014 2013 2014 2013
---- ---- ---- ----
Net sales $4,682 $4,748 $9,045 $8,996
Expenses
Cost of products sold 3,895 3,931 7,503 7,453
----- ----- ----- -----
Gross margin 787 817 1,542 1,543
Selling, general and
administrative 457 453 896 874
Intangible amortization 5 5 11 14
Restructuring costs 34 31 63 73
--- --- --- ---
Operating profit 291 328 572 582
Other income (expense)
Interest and sundry income
(expense) (16) (39) (39) (57)
Interest expense (40) (44) (84) (90)
--- --- --- ---
Earnings before income
taxes 235 245 449 435
Income tax expense
(benefit) 50 39 100 (28)
--- --- --- ---
Net earnings 185 206 349 463
Less: Net earnings
available to
noncontrolling interests 6 8 10 13
--- --- --- ---
Net earnings available to
Whirlpool $179 $198 $339 $450
==== ==== ==== ====
Per share of common stock
Basic net earnings
available to Whirlpool $2.29 $2.48 $4.34 $5.66
===== ===== ===== =====
Diluted net earnings
available to Whirlpool $2.25 $2.44 $4.27 $5.56
===== ===== ===== =====
Dividends declared $0.75 $0.625 $1.375 $1.125
===== ====== ====== ======
Weighted-average shares outstanding
(in millions)
Basic 78.3 79.8 78.2 79.5
Diluted 79.6 81.1 79.6 81.0
Comprehensive income $184 $115 $390 $341
==== ==== ==== ====
WHIRLPOOL CORPORATION
CONSOLIDATED CONDENSED BALANCE SHEETS
(Millions of dollars, except share data)
(Unaudited)
June 30, December 31,
2014 2013
---- ----
Assets
Current assets
Cash and equivalents $945 $1,380
Accounts receivable,
net of allowance of
$77 and $73,
respectively 2,222 2,005
Inventories 2,812 2,408
Deferred income
taxes 335 549
Prepaid and other
current assets 731 680
--- ---
Total current assets 7,045 7,022
----- -----
Property, net of
accumulated
depreciation of
$6,425 and $6,278,
respectively 3,069 3,041
Goodwill 1,723 1,724
Other intangibles,
net of accumulated
amortization of
$249 and $237,
respectively 1,692 1,702
Deferred income
taxes 1,758 1,764
Other noncurrent
assets 321 291
--- ---
Total assets $15,608 $15,544
======= =======
Liabilities and stockholders'
equity
Current liabilities
Accounts payable $3,876 $3,865
Accrued expenses 667 710
Accrued advertising
and promotions 353 441
Employee
compensation 357 456
Notes payable 3 10
Current maturities
of long-term debt 312 607
Other current
liabilities 550 705
--- ---
Total current
liabilities 6,118 6,794
----- -----
Noncurrent liabilities
Long-term debt 2,461 1,846
Pension benefits 868 930
Postretirement
benefits 468 458
Other noncurrent
liabilities 342 482
--- ---
Total noncurrent
liabilities 4,139 3,716
----- -----
Stockholders' equity
Common stock, $1 par
value, 250 million
shares authorized,
110 million and 109
million shares
issued, and 78
million and 77
million shares
outstanding,
respectively 110 109
Additional paid-in
capital 2,497 2,453
Retained earnings 6,015 5,784
Accumulated other
comprehensive loss (1,258) (1,298)
Treasury stock, 32
million shares (2,124) (2,124)
------ ------
Total Whirlpool
stockholders'
equity 5,240 4,924
----- -----
Noncontrolling
interests 111 110
--- ---
Total stockholders'
equity 5,351 5,034
----- -----
Total liabilities
and stockholders'
equity $15,608 $15,544
======= =======
WHIRLPOOL CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE PERIODS ENDED JUNE 30
(Millions of dollars)
Six Months Ended
----------------
2014 2013
---- ----
Operating activities
Net earnings $349 $463
Adjustments to reconcile net
earnings to cash used in operating
activities:
Depreciation and
amortization 261 255
Changes in assets and liabilities:
Accounts receivable (215) (274)
Inventories (375) (199)
Accounts payable (41) 19
Accrued advertising and
promotions (88) (55)
Taxes deferred and
payable, net 16 (110)
Accrued pension and
postretirement benefits (69) (89)
Employee compensation (84) (106)
Other (122) (100)
---- ----
Cash used in operating
activities (368) (196)
---- ----
Investing activities
Capital expenditures (265) (180)
Proceeds from sale of
assets 11 3
Investment in related
businesses (36) -
Other - (38)
--- ---
Cash used in investing
activities (290) (215)
---- ----
Financing activities
Proceeds from borrowings
of long-term debt 818 499
Repayments of long-term
debt (504) (505)
Dividends paid (107) (89)
Net repayments of short-
term borrowings (6) 1
Common stock issued 28 63
Purchase of treasury
stock - (30)
Purchase of
noncontrolling interest
shares (5) -
Other (9) (8)
--- ---
Cash provided by (used
in) financing
activities 215 (69)
--- ---
Effect of exchange rate
changes on cash and
equivalents 8 (18)
--- ---
Decrease in cash and
equivalents (435) (498)
Cash and equivalents at
beginning of period 1,380 1,168
----- -----
Cash and equivalents at
end of period $945 $670
==== ====
SUPPLEMENTAL INFORMATION - CONSOLIDATED FINANCIAL STATEMENTS
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(Millions of dollars except per share data)
(Unaudited)
We supplement the reporting of our financial information determined under U.S. generally accepted accounting principles (GAAP) with certain non-GAAP financial measures, some of which we refer to as "ongoing business" measures, including ongoing business operating profit, ongoing business operating margin, ongoing business earnings (loss) before income taxes, ongoing business earnings per diluted share, ongoing business segment operating profit, ongoing business segment operating margin, sales excluding foreign currency and BEFIEX, and free cash flow. Ongoing business measures exclude items that may not be indicative of, or are unrelated to, results from our ongoing business operations and provide a better baseline for analyzing trends in our underlying businesses. Sales excluding foreign currency and BEFIEX is calculated by translating the current period net sales excluding BEFIEX, in functional currency, to U.S. dollars using the prior-year period's exchange rate compared to the prior-year period net sales excluding BEFIEX. Management believes that sales excluding foreign currency and BEFIEX provides stockholders with a clearer basis to assess our results over time. Management believes that free cash flow provides investors and stockholders with a relevant measure of liquidity and a useful basis for assessing the company's ability to fund its activities and obligations. We believe that these non-GAAP measures provide meaningful information to assist investors and stockholders in understanding our financial results and assessing our prospects for future performance. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names. These ongoing business financial measures should not be considered in isolation or as a substitute for reported operating profit, earnings (loss) before income taxes, net earnings per diluted share available to Whirlpool, reported operating profit by segment, net sales, and cash provided by (used in) operating activities, the most directly comparable GAAP financial measures. These non-GAAP financial measures reflect an additional way of viewing aspects of our operations that, when viewed with our GAAP results and the following reconciliations to corresponding GAAP financial measures, provide a more complete understanding of our business. We strongly encourage investors and stockholders to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure.
Ongoing Business Operating Profit, Ongoing Business Earnings Before Income Taxes and Ongoing Business Earnings Per Diluted Share
The reconciliation provided below reconciles the non-GAAP financial measures ongoing business operating profit, ongoing business earnings before income taxes and ongoing business earnings per diluted share, with the most directly comparable GAAP financial measures, operating profit, earnings before income taxes and net earnings per diluted share available to Whirlpool, for the three months ended June 30, 2014. Ongoing business operating margin is calculated by dividing ongoing business operating profit by net sales.
Three Months Ended
June 30, 2014
-------------
Operating Earnings Earnings
per
Profit Before Diluted
Income Share
Taxes
-----
Reported GAAP
Measure $291 $235 $2.25
Restructuring
Expense(a) 34 34 0.33
Investment
Expense(b) 5 13 0.12
Antitrust
Resolutions(c) - 1 0.01
Normalized Tax Rate
Adjustment(d) - - (0.09)
--- --- -----
Ongoing Business
Measure $330 $283 $2.62
==== ==== =====
Ongoing Business Operating Profit, Ongoing Business Earnings Before Income Taxes and Ongoing Business Earnings Per Diluted Share
The reconciliation provided below reconciles the non-GAAP financial measures ongoing business operating profit, ongoing business earnings before income taxes and ongoing business earnings per diluted share, with the most directly comparable GAAP financial measures, operating profit, earnings before income taxes and net earnings per diluted share available to Whirlpool, for the three months ended June 30, 2013. Ongoing business operating margin is calculated by dividing ongoing business operating profit by net sales excluding BEFIEX.
Three Months Ended
June 30, 2013
-------------
Operating Earnings Earnings
per
Profit Before Diluted
Income Share
Taxes
-----
Reported GAAP Measure $328 $245 $2.44
Restructuring
Expense(a) 31 31 0.29
Brazilian (BEFIEX)
Tax Credits(e) (24) (24) (0.29)
Investment Expense(b) - 10 0.10
Antitrust and
Contract
Resolutions(c) - 2 0.01
U.S. Energy Tax
Credits(f) - - (0.20)
Normalized Tax Rate
Adjustment(d) - - 0.02
Ongoing Business
Measure $335 $264 $2.37
==== ==== =====
Ongoing Business Segment Operating Profit
The reconciliation provided below reconciles the non-GAAP financial measure ongoing business segment operating profit with the most directly comparable GAAP financial measure, segment operating profit, for the three months ended June 30, 2014. Ongoing business segment operating margin is calculated by dividing ongoing business segment operating profit by segment net sales.
Three Months Ended
June 30, 2014
-------------
Segment Restructuring Investment Ongoing
Operating Expense(a) Expense(b) Business
Profit Segment
Operating
Profit
------
North
America $285 $ - $ - $285
Latin
America 87 - - 87
EMEA 2 - - 2
Asia 4 - - 4
Other/
Eliminations (87) 34 5 (48)
--- --- ---
Total
Whirlpool
Corporation $291 $34 $5 $330
==== === === ====
The reconciliation provided below reconciles the non-GAAP financial measure ongoing business segment operating profit (loss) with the most directly comparable GAAP financial measure, reported segment operating profit (loss), for the three months ended June 30, 2013. Ongoing business segment operating margin is calculated by dividing ongoing business segment operating profit by segment net sales excluding BEFIEX.
Three Months Ended
June 30, 2013
-------------
Segment Restructuring Brazilian Ongoing
Operating Expense(a) (BEFIEX) Tax Business
Profit
(Loss) Credits(b) Segment
Operating
Profit
(Loss)
-----
North America $262 $ - $ - $262
Latin America 135 - (24) 111
EMEA (6) - - (6)
Asia 14 - - 14
Other/Eliminations (77) 31 - (46)
--- --- --- ---
Total Whirlpool Corporation $328 $31 $(24) $335
==== === ==== ====
Footnotes:
a. During the second quarters of 2014
and 2013, we recorded
restructuring charges of $34
million and $31 million,
respectively. The earnings per
diluted share impacts are
calculated based on income tax
impacts of $8 million and $7
million, respectively.
b. During the second quarters of 2014
and 2013, we recognized
investment expenses of $13
million and $10 million,
respectively, primarily related
to the pending acquisitions of
majority interests in Hefei Sanyo
and, specifically for 2014,
Indesit. The earnings per diluted
share impacts are calculated
based on income tax impacts of $3
million and $2 million,
respectively.
c. During the second quarter of 2014,
we recognized expenses of
approximately $1 million related
to antitrust resolutions. The
earnings per diluted share impact
is calculated based on an income
tax impact of $0 million. During
the second quarter of 2013 we
recognized expenses of $2 million
related to antitrust and contract
resolutions. The earnings per
diluted share impact is
calculated based on an income tax
impact of $0 million.
d. During the second quarters of 2014
and 2013, we made adjustments to
ongoing business diluted EPS to
reconcile specific items reported
to a full-year effective tax
rate of 24%.
e. During the second quarter of 2013,
we monetized Brazilian (BEFIEX)
tax credits of $24 million. The
earnings per diluted share impact
is calculated based on an income
tax impact of $0 million.
f. In the second quarter of 2013, we
recognized $16 million of U.S.
energy tax credits. The earnings
per diluted share impact is
calculated based on an income tax
benefit of $16 million.
Free Cash Flow
As defined by the company, free cash flow is cash provided by (used in) operating activities after capital expenditures and proceeds from the sale of assets and businesses. The reconciliation provided below reconciles six-month actual 2014 and 2013 and projected full-year free cash flow with cash provided by (used in) operating activities, the most directly comparable GAAP financial measure.
Six Months Ended
June 30,
--------
(millions of
dollars) 2014 2013 2014 Outlook
---- ---- ------------
Cash Provided by
(Used In)
Operating
Activities $(368) $(196) $1,225 - $1,325
Capital
Expenditures and
Proceeds from
Sale of Assets/
Businesses (254) (177) (625) - (675)
Free Cash Flow $(622) $(373) $600 - $650
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SOURCE Whirlpool Corporation
