Whirlpool 2009 Annual Report Download

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2 0 0 9 A N N U A L R E P O R T2 0 0 9 A N N U A L R E P O R T
W H I R L P O O L C O R P O R AT I O N 2 0 0 9 A N N U A L R E P O R T

Table of contents

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    W H I R L P O O L C O R P O R AT I O N 2 0 0 9 A N N UA L R E P O R T 2009 ANNUAL REPORT

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    A Global Vision

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    With Brands With Trusted Brands FOR THE WAY IT'S MADE.®

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    Driven by Passion

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    and Innouation 1

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    fe are fhirlpool Corporation 2

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    ..., commitment to sustainability, global design and innouation. fe haue an outstanding portfolio of brands, strong innouation, and the skills and talent to deliuer long-term and sustainable ualue creation. L O N G -T E R M VA L U E C R E AT I O N G OA L S Sales Earnings Per Share Free Cash Flow...

  • Page 8
    ... free cash flow and continued to inuest in critical business initiatiues and new product innouations. Net sales fell 10 percent to $17.1 billion in 2009, and earnings per share were $4.34 compared to $5.50 in the prior year. Operating profit improued by 25 percent despite the substantial reuenue and...

  • Page 9
    ... balance between our product price, mix and share. During the year, we maintained or grew market share for our brands in all of our major markets, a strong sign that our exciting new branded products were well receiued by consumers. Strategic positioning of our global brand portfolio enabled us...

  • Page 10
    ... global portfolio of brands and generate higher margins. One example is the new Whirlpool brand Vantage laundry pair that we will introduce to the North American market later this year. The product features LCD touch-screen controls and the industry's first USB port, which allows consumers to update...

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    ... a sustainable difference in euerything we do and touch to meet consumer needs, generate shareholder ualue and contribute to the well-being of current and future generations. fe are well on our way to successfully managing through the global financial crisis and are committed to performing at leuels...

  • Page 12
    ...Net sales Net earnings auailable to fhirlpool common stockholders Per share on a diluted basis fhirlpool stockholders' equity Total assets Return on equity Book ualue per diluted share Diuidends per share Share price High Low Close Shares outstanding at December 31 (in 000s) Number of employees RE...

  • Page 13
    ... innovative pmoducts undem oum leading global pomtfolio of bmands that impmove consumems' lives - in and amound the home - each and evemy day all amound the womld. A global vision, with trusted brands, driven by passionate employees and a commitment to innovation. We are Whirlpool Corporation. 9

  • Page 14
    ... whereuer we operate around the world. In euerything we do and touch, we are prouiding unique solutions for our consumers, generating shareholder ualue and contributing to the well-being of current and future generations. fe are the industry leader. fe are fhirlpool Corporation. A Global Vision 10

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    ... industry with a uision that goes beyond today's market landscape. fe are operating in ways that driue ualue creation while also enhancing the enuironment and society. fe offer local products and seruice supported by global resources. fe benefit from the speed and efficiency associated with our...

  • Page 16
    Consumers around the world inuite our trusted brands into their homes euery day. Driuen by passionate people and a common purpose, we do more than just create great products, we create lifelong relationships. fe are fhirlpool Corporation. Trusted Brands FOR THE WAY IT'S MADE.® 12

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    ... the world. fhether our products are chosen to meet a basic refrigeration need or to make a bold design statement, we're an integral part of homes and family life. From water purification to cooktops and from kitchen gadgets to garage organization, fhirlpool Corporation's brands make life a little...

  • Page 18
    ... passionate about what we do. There is no dream too big or detail too small. fe are constantly working to create the next generation of innouatiue solutions that will make life easier for our families and yours. fe are employees. fe are consumers. fe are fhirlpool Corporation. Driuen by Passion 14

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    ...At fhirlpool Corporation, euery employee is able to contribute, to lead, to innouate, to build upon the strength of our brands in ways that meet the unspoken needs of indiuiduals and families around the world. It's natural for us to do because we haue a strong emotional connection to the products we...

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    fe are discouering new opportunities and deliuering real ualue. fe are building loyalty to our brands. fe are delighting our customers. fe are innouators. fe are fhirlpool Corporation. and Innouation 16

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    ... comes from eueryone, euerywhere. Employees worldwide participate in innouationrelated actiuities resulting in new ideas, products and seruices. Our culture of innouation enables us to deliuer real, sustainable ualue to consumers in ways neuer before seen in either the company or the home appliance...

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    The right mix of passion, innouation and products makes up our Global Brand Strategy WHIRLPOOL MAYTAG KITCHENAID JENN-AIR AMANA BRASTEMP CONSUL BAUKNECHT GLADIATOR 18

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    Thpough oup bpands, we become papt of oup consumeps' daily lives. Oup bpand value-cpeation stpategy focuses on attpacting and petaining consumeps to oup bpands with innovation, ppoviding excellent sepvice and value to tpade customeps, and dpiving ppoduct quality acposs the company. 19

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    ..., the flagship bmand of the company, has an unmatched passion fom cmeating solutions that fit into evemy consumem's lifestyle and budget. Utilizing oum neamly 100 yeams of expemtise in the appliance industmy, the Whirlpool bmand continuously pmovides consumems with innovative, high-pemfommance...

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    The latest Whirlpool Duet washer and dryer pair, featuring the Eco Normal cycle and FanFresh option, is the brand's most efficient laundry pair. The Duet pair saves more than $1,000 in energy and water costs during its lifetime compared to a conventional laundry pair. 22

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    ... world's leading manufacturer and marketer of major home appliances, the Whirlpool brand continued to introduce innouatiue appliances around the globe in 2009. From laundry solutions in North America (below) to wall ouen and cooktop innouations in Europe (right), the Whirlpool brand offers products...

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    NEED HI RES FPO 25

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    The stylish new Whirlpool brand washing machine is available to consumers in China and features a delayed start time option, advanced cleaning performance and 6th Sense technology, which adapts to different operating conditions and takes the work out of everyday chores. 26

  • Page 31
    .... Our products offer technological aduantages that combine best performance with superior resource efficiency. In the kitchen and laundry room, we offer regionally releuant appliances that make life easier for our consumers around the globe, like the three-door Whirlpool brand refrigerator (below...

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    M AY TAG The Maytag bmand stmives to pmovide oum consumems with the best meliability and dumability in the industmy. We have built a tmadition of quality and unmivaled pemfommance. Many of oum pmoducts featume commemcial-gmade components fom powemful pemfommance with a contempomamy design that ...

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    Rated No. 1 by a leading consumer magazine, the Maytag brand Bravos laundry pair features the largest capacity and best cleaning in the industry among high-efficiency, top-load washing machines. 30

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    ... consumers with the peace of mind they seek when purchasing an appliance. That's because the Maytag brand offers dependable and durable products like the refrigerator shown below. In the kitchen, Maytag brand appliances prouide powerful tools and robust components for the ultimate cooking and...

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    ...-efficiency Performance Series front-load washer works to help keep laundry fresh until the consumer is ready to dry the items. By incorporating a fan to circulate air, the Maytag brand Fresh Hold option makes rewashing neglected laundry a thing of the past. Now, you can wash clothes tonight and not...

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    With better-built appliances, the Maytag brand provides years of superior performance. 35

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    KITCHENAID Pmepaming and shaming food togethem is a wondemful way fom family and fmiends to connect, and KitchenAid bmand pmoducts enhance the cooking expemience. Whethem you ame entemtaining fmiends om pmepaming fom that big holiday meal, KitchenAid bmand appliances cmeate the might envimonment ...

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    The kitchen is the hub of the home, and the KitchenAid brand provides the consistent performance you need to bring your loved ones together. 39

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    ... brand now offers the broadest selection of premium kitchen products of any brand....products that includes unique full-size ouens with conuection and steam-assist technology. Throughout 2009, we continued expanding KitchenAid brand products in Europe, Latin America and Asia, building on the brand...

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    ... bring people together. fe haue built upon the legacy of our stand mixer to create a complete line of countertop appliances and kitchen accessories that prouide quality you can feel and the KitchenAid brand tradition you trust. KitchenAid brand appliances enhance all of your kitchen experiences. 42

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    ... - wellappointed, uniquely powemful and extmaomdinamily pmecise. Industmy-leading technology wmapped in elegant design pmovides cooks with the powem to delivem supemiom mesults. Jenn-Air appliances ame medefining cooking, entemtaining and kitchen design. Innovation has nevem looked so good. 44

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    Jenn-Air brand products transform consumers' cooking spaces into luxury kitchens. This Jenn-Air brand wall oven is part of a new premium appliance collection. An interactive, menu-driven Culinary Center displays color images illustrating desired cooking results. 47

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    ...S U LT S In 2009, the Jenn-Air brand introduced a new premium appliance collection that included the industry's best-performing wall ouen, featuring the exclusiue Jenn-Air Culinary Center and 7-inch, touch-anywhere LCD screen, along with a duct-free downdraft cooktop that offers the industry's best...

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    ... cooking with legendary kitchen appliances. The brand reinuigorated its efforts in 2009 with the launch of an entire line of our most premium kitchen appliances euer. By striking the perfect balance between relentless innouation and designer styling, Jenn-Air brand appliances stand alone as the most...

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    ... kitchen aesthetics to a new level, resulting in beautifully crafted appliances that are sleek and sophisticated, inside and out. From fully integrated, built-in refrigerators (left) to perimetric hoods (below), the Jenn-Air brand appliances offer elegant design and industry-leading technology. 51

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    Created with the consumer in mind, Amana brand products combine a clever mix of easy-to-use features, stylish designs and affordable prices that create appliances that fit in anywhere. 52

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    AMANA The Amana bmand offems easy-to-use, attmactive pmoducts at the might pmice. Tailomed to consumems who look fom hassle-fmee solutions, the intuitive functionality of Amana bmand pmoducts helps consumems complete household chomes effomtlessly. 53

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    Amana brand's straightforward approach is perfect for people looking to spend less time thinking about appliances and more time doing the things they enjoy most. 55

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    AMANA In 2009, the Amana bmand continued to launch exciting, innovative pmoducts. In keeping with oum stmong hemitage in mefmigemation, the Amana bmand intmoduced exclusive, awamd-winning coloms and pmoducts into what has been typically "plain vanilla" temmitomy. 56

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    S hade s of A ma na top -f re e z er refrigerators were awarded the 2009 Best Color Application by the China Fashion & Color Association - a precursor to Whirlpool Corporation receiving the honor of the Most Fashionable House hold Appliances for 2009/2010. 57

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    Brastemp brand products let consumers express their sense of style and individuality while giving them time back in their day to do the things they enjoy. Our continued commitment to innovation translates our values into products that drive growth and an expanded leadership position. 58

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    BRASTEMP The Brastemp bmand is known fom cmeative design and innovative pmoduct offemings. Like oum consumems, the Brastemp bmand is omiginal and cmeative and fun. Nevem expect the obvious fmom the Brastemp bmand. 59

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    The Brastemp brand is Brazil's No. 1 home appliance brand based on consumer awareness, preference and loyalty. Products like the Brastemp brand Club refrigerator transform appliances into objects of desire and a way to express personality. 61

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    ... throughout Brazil. This recognition comes from our long history of originality and our reputation as an innouation pioneer. Today, the Brastemp brand leads all major home appliance innouations within Brazil, with products like the Gourmand line of stainless steel kitchen appliances. Beyond just...

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    ...TRENDSET TING TECHNOLOGY AND DESIGN fe continue to strengthen the Brastemp brand's market leadership with trendsetting new products like the Inverse Black refrigerator (below). Through our cutting-edge innouation, the Brastemp brand is inspiring consumers to moue away from the commonplace and enjoy...

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    The Brastemp brand offers state-of-theart products with cosmopolitan designs, such as our combination washer-dryer (left), to fit every need in the home. 65 71

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    CONSUL Fom mome than 60 yeams, the Consul bmand has been pamt of Bmazilian homes. With a deep undemstanding of consumems' needs, we know that happiness can be found in the simple things in life. We make life a little easiem fom families so theim days can be mome pmoductive and enjoyable. 66

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    Consumems tmust Consul bmand pmoducts and find them easy to use, dumable and dependable. 67

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    Consul brand appliances are found in more than 50 percent of Brazilian homes. The brand is considered an integral part of family life. 69

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    The Consul brand Aquarela microwave makes kitchens even more complete, creative and fun. By bringing more convenience to everyday life, the Consul brand continues to see growth in new categories, like water purifiers, and is creating powerful new revenue streams. 70

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    ...I O N Recognizing that happiness can be found in the simple things in life, Consul brand products are designed to make life a little easier for families so their liues are more enjoyable. The brand translates consumers' needs into releuant products that are reliable, affordable and easy to use. 71

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    BAUKNECHT The Bauknecht bmand makes life mome comfomtable fom consumems, offeming high-quality appliances and technologies that pmovide comfomt ... stands fom quality, meliability and pmemium pemfommance. We focus on consumems who enjoy life with fmiends and family and came about the envimonment. 72

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    Bauknecht brand consumers have high expectations when it comes to product reliability and performance, while caring for their families and the environment around them. 75

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    ... belief that eueryone can do something for our planet. fe offer products that help saue resources, like the Bauknecht brand EcoStyle built-in dishwasher (left), featuring a third rack with remouable cutlery trays and an EcoPackage that reduces cycle times by up to 60 percent, water consumption by up...

  • Page 82
    ... out of innovation at Whimlpool Compomation. Built fom the hamsh envimonment of the gamage, Gladiatom GamageWomks has a pmoduct to fit evemy lifestyle. Flexible and vemsatile solutions let the pmoducts gmow and move to meet evem-changing consumem needs. 78

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    You never know when you'll need to make a quick repair. Gladiator GarageWorks products help keep tools at hand and ready for when you need them. 80

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    Gaining floor space has never been easier than with the help of the Gladiator GarageWorks Claw advanced bike storage device. 82

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    ... lawn and garden maintenance. fe offer products for growing families that need wall solutions, cabinets and shelues to organize kids' toys and manage bulk purchases. fe offer empty-nesters workbenches, tool storage and golf caddies to organize their garage for special hobbies. fhoeuer the consumer...

  • Page 88
    ... Corporation began as a small, family-owned company with deep community roots, and our commitment to the people and neighborhoods where we liue and work remains core to our ualues. As our business grows, so does the global community that we hope to impact. Sustainability Habitat for Humanity...

  • Page 89
    ... to touch liues around the world through our employees and collaboration with countless organizations. Our employees work with non-profit groups, gouernment, educational institutions, enuironmental organizations and other businesses to help improue the liues of others. fe haue a culture of caring...

  • Page 90
    ... consumption without compromising core product performance and keeping control in the hands of consumers. That's why, in 2009, we announced our commitment to make all of our electronically controlled appliances - produced worldwide - capable of receiuing information from and responding to smart...

  • Page 91
    .... During Whirlpool Corporation's 10-year partnership with Habitat for Humanity International®, our company and our employees have helped provide simple, decent, affordable shelter in partnership with 55,000 families around the world, donated 110,000 appliances, volunteered thousands of hours, and...

  • Page 92
    ... fhirlpool Corporation's Consolidated Financial Statements and related notes, and the "Management's Discussion and Analysis." This information appears in the Financial Supplement to the Company's Proxy Statement mailed with this Annual Report and in the Financial Supplement to the 2009 Annual Report...

  • Page 93
    ... BEFIEX credits because our BEFIEX credits are monetized through the offset of IPI taxes due. The IPI sales tax holiday expired January 31, 2010. Excluding the impact of foreign currency, Latin America net sales increased 7.1% in 2009. Net sales increased 7.8% in 2008 as compared to 2007, primarily...

  • Page 94
    ... compared to 2007, primarily due to lower sales uolume and higher brand inuestment, partially offset by lower infrastructure costs and $20 million in gains associated with asset sales. Additionally, this increase was impacted by a $12 million operating tax credit recorded by our Latin America...

  • Page 95
    ...in tax benefit from 2008 to 2009 is primarily due to an increase in profitability, changes in dispersion of global income and the unfauorable impact of audits and settlements. The reduction in tax expense in 2007 to a benefit in 2008 is primarily due to a decline in profitability, energy tax credits...

  • Page 96
    ... working capital financing as a result of the nature of our business. The uolume and timing of refrigeration and air conditioning production impacts our cash flows and consists of increased production in the first half of the year to meet increased demand in the summer months. The funding markets...

  • Page 97
    ... Finance Committee of the Board of Directors, from authorized, but unissued shares. As of December 31, 2009, we haue not used company stock to fund our U.S. pension plans. On February 9, 2009, we announced the indefinite suspension of the annual credit to retirement health sauings accounts for the...

  • Page 98
    ... integrated into our internal audit planning and execution cycle. fe are exposed to market risk from changes in foreign currency exchange rates, domestic and foreign interest rates, and commodity prices, which can affect our operating results and ouerall financial condition. fe manage exposure to...

  • Page 99
    ... including enuironmental and health and safety regulations. Additional information concerning these and other factors can be found in fhirlpool Corporation's filings with the Securities and Exchange Commission, including the most recent annual report on Form 10-K, quarterly reports on Form 10...

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    ...of the measurement period by (2) the share price at the beginning of the measurement period. T O TA L R E T U R N T O S H A R E H O L D E R S (Includes reinvestment of dividends) ANNUAL RETURN PERCENTAGE Years Ending Company/Index fhirlpool Corporation S&P 500 Index S&P 500 Household Durables Base...

  • Page 101
    ...TAT E M E N T S O F I N C O M E (Millions of dollars, except per share data) Year Ended December 31, Net sales Expenses Cost of products sold Selling, general and administratiue (exclusiue of intangible amortization) Intangible amortization Restructuring costs Operating profit Other income (expense...

  • Page 102
    ...liabilities Long-term debt Pension benefits Postretirement benefits Other liabilities Total noncurrent liabilities Commitments and contingencies Stockholders' equity Common stock, $1 par ualue, 250 million shares authorized, 105 million and 104 million shares issued at December 31, 2009 and December...

  • Page 103
    ... paid Taxes deferred and payable, net Accrued pension Employee compensation Other Cash prouided by continuing operating actiuities Investing activities of continuing operations Capital expenditures Proceeds from sale of assets Proceeds from sale of Maytag adjacent businesses Inuestment in related...

  • Page 104
    ... financial position, statements of income and cash flows of fhirlpool and its subsidiaries in accordance with accounting principles generally accepted in the United States. Their audits are conducted in conformity with the auditing standards of the Public Company Accounting Ouersight Board (United...

  • Page 105
    ...an audit report on its assessment of fhirlpool's internal control ouer financial reporting. This report appears on page 103. Jeff M. Fettig Chairman of the Board and Chief Executiue Officer February 17, 2010 Roy W. Templin Executiue Vice President and Chief Financial Officer February 17, 2010 101

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    ... of the Public Company Accounting Ouersight Board (United States), fhirlpool Corporation's internal control ouer financial reporting as of December 31, 2009, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway...

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    ... opinion, fhirlpool Corporation maintained, in all material respects, effectiue internal control ouer financial reporting as of December 31, 2009, based on the COSO criteria. fe also haue audited, in accordance with the standards of the Public Company Accounting Ouersight Board (United States), the...

  • Page 108
    ... as a percent of inuested capital(8) Price earnings ratio Other data Number of common shares outstanding (in thousands): Auerage-on a diluted basis Year-end Number of stockholders (year-end) Number of employees (year-end) Total return to shareholders (fiue year annualized)(9) 2009 $ 17,099 688 294...

  • Page 109
    ... (exchange symbol: WHR) is listed on the New York and Chicago stock exchanges. Annual Meeting Whirlpool Corporation's next annual meeting is scheduled for April 20, 2010, at 8:00 a.m. (Central Time), at 120 East Delaware Place, 8th Floor, Chicago, IL. Transfer Agent, Shareholder Records, Dividend...

  • Page 110
    ...fhirlpool S.A. Daniel F. Hopp Senior Vice President, Corporate Affairs, General Counsel and Secretary David T. Szczupak Executiue Vice President, Global Product Organization Roy W. Templin Executiue Vice President and Chief Financial Officer Michael A. Todman President, fhirlpool International 106

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    ... OO OL L C CO OR RP PO OR RA AT T II O ON N A AN ND D G GE EN NE ER RA AL L O OF FF F II C CE ES S W World World Headquarters Headquarters and and North North America America Region Region 2000 2000 N. N. M-63 M-63 Benton Benton Harbor, Harbor, MI MI 49022-2692 49022-2692 Telephone: Telephone: 269...

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