Whirlpool 2011 Annual Report Download

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WHIRLPOOL CORPORATION
|
2011 ANNUAL REPORT

Table of contents

  • Page 1
    WHIRLPOOL CORPORATION | 2011 ANNUAL REPORT

  • Page 2
    ... where our global brand portfolio will continue meeting the individual needs of families everywhere around the world. We are passionate about transforming home and family life through the next generation, and we are leading the way with connected appliances, resource efficiency and consumer-relevant...

  • Page 3
    Strength & Commitment 1

  • Page 4
    ...'S LE T TER At Whirlpool Corporation, we took decisive actions in 2011 to position our business for long-term growth in the face of the global economic recession and volatility. We achieved positive results, improving product price and mix and significantly lowering inventory levels. As a clear...

  • Page 5
    ... Fortune magazine's World's Most Admired Companies, ranking • • • • • • No. 1 in the Home Equipment, Furnishings industry sector. Whirlpool Corporation was named on the 2011 list of Top Companies for Leaders, ranking ninth globally and sixth in North America. Whirlpool Corporation...

  • Page 6
    ...value for our shareholders, our employees and the consumers who use our products in their homes every day. We have empowered our people to do what no other appliance company can match - to Improve Lives ...One Home, One Family at a Time ...through World-class Products and Services. We make household...

  • Page 7
    ...we are well positioned for margin expansion and earnings growth in the coming year. In 2012, we will execute strong actions to continue to improve operating margins through our capacity and cost-reduction initiatives, ongoing productivity programs, improved product price and mix, and by accelerating...

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    6 Leading Scale

  • Page 9
    ... S Whirlpool Corporation employees are passionate about the products we make, and we are committed to providing the best appliances to each consumer while leveraging the efficiencies of global product design and manufacturing with a strong, proven supply chain network. Our consumers benefit from our...

  • Page 10
    ... Y S Y S T E M S Whirlpool Corporation has built a nimble organization that can identify next-generation process technologies and implement them around the world, ensuring common ways of manufacturing our products in every one of our factories. In our second century of opportunity, we will continue...

  • Page 11
    ... our manufacturing capital. A refrigerator, for example, is made with exactly the same manufacturing sequence in North America, Europe, South America or Asia. In 2011, the company began to standardize the front-load 24-inch washer platform across Europe, Asia and Brazil. This is a product that is...

  • Page 12
    ... build with consumers during the course of their lives. For more than 100 years, we have made it our priority to improve home and family life for consumers around the world through our products and services that help them save time, conserve resources and promote good health. 10 Strategy

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    11

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    ...ADE POSITION At Whirlpool Corporation, we take pride in our ability to make life easier for families around the world. Now, more than ever, consumers depend on us to help them save time, conserve resources and live healthier. Our products are trusted because we put people first - providing relevant...

  • Page 15
    ...well, and our product innovations reflect that. As our product lines and service offerings further expand, we will continue to build unmatched levels of loyalty to our brands and increase growth opportunities for the company. We have the strongest foundation in the global appliance industry and rich...

  • Page 16
    ... AT I V E T H I N K I N G At Whirlpool Corporation, our job is to make products that people want to own in their homes. It is that simple. With that mindset, we continually look forward, seeking opportunities to innovate at new levels ...to figure out how to make the best appliances better so we can...

  • Page 17
    Innovation 15

  • Page 18
    ... trust, it takes innovative world-class products and services. Understanding the lifestyles of families in India who have limited space for laundry, we developed the Whirlpool brand Mini ACE washer. Taking less space, this product can be moved easily from location to location within the home. And...

  • Page 19
    ... feature that applies detergent solution evenly on the washer's contents. This is true innovation, and our employees are engaged in developing consumer-driven ideas into compelling products and services that enrich the lives of families around the world. Whirlpool Corporation continued investing in...

  • Page 20
    ...COMMUNITIES What truly distinguishes Whirlpool Corporation is our commitment to operating responsibly. For more than 100 years, we have operated within the core...the environment and to the communities in which we live and work. This principle will continue guiding us throughout our second century. 18

  • Page 21
    Sustainability 19

  • Page 22
    ...at the end of a product's use. DESIGN FOR ENVIRONMENT Brastemp brand Viva! appliances focus on energy efficiency and a consumer education campaign to achieve new levels of environmental sustainability. The environmental gains realized by the project in 2011 included: • Emission reduction CO2...

  • Page 23
    ... will open in the spring of 2012 • A new $40 million, 1-million-square-foot regional distribution center in Wilmer, Texas The company has increased the use of railcars, which are more fuel efficient than trucks, and intermodal transportation, which uses shipping containers that transfer smoothly...

  • Page 24
    ... community and helping those in need that in 2011, Whirlpool Corporation instituted a formal volunteer program. This initiative gives employees an official and user-friendly way to identify volunteer needs and track their volunteer hours. This program, launched in our Michigan headquarters community...

  • Page 25
    ...Direct program support since 1999 Product donations since 1999 Employee volunteer hours since 1999 Families helped since 1999 Number of countries in which Whirlpool Corporation employees have helped provide affordable housing 2,688 86% Number of people advised on small business management in 2011...

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    24 Loyalty

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    .... Around the globe, our consumers trust Whirlpool Corporation to deliver home appliance solutions that make their lives easier. We take great pride in improving lives ...one consumer, one home at a time ...through our world-class innovative products and services. It is our obsession for our second...

  • Page 28
    ... century of expertise in the appliance industry, the Whirlpool brand continuously provides consumers with innovative, high-performing, resource-efficient products. Advancing technology to the point of simplicity, Whirlpool brand has never lost sight that innovation should work smart, and that design...

  • Page 29
    ... Club® professionals and inviting Facebook® fans to acknowledge dependable people in their own lives. The brand delivers products that are built to last, like the Maytag brand Maxima series front-load laundry pairs and the Maytag brand Bravos XL top-load laundry pairs, which offer great cleaning...

  • Page 30
    ... in the creation of its major kitchen appliances, small appliances and culinary tools. From the iconic stand mixer to the new, highly innovative 13-cup food processor with external blade control to the state-of-the-art steam bath cooking system, KitchenAid brand is devoted to the kitchen. Nobody...

  • Page 31
    ... print and online kitchen design application that provides consumers with inspiration, tools and insider insights for creating their luxury dream kitchens. By giving cooks the power to deliver superior culinary results, Jenn-Air became the fastest growing super-premium appliance brand in 2011. 29

  • Page 32
    ... convenience to consumers' lives. Today, that convenience has also extended to the shopping experience. Amana brand's interactive purchase experience with its mobile app, store materials and online "Help Me Choose" tool makes looking and shopping for appliances fun, and more importantly, simple. 30

  • Page 33
    ... consumers who share similar values - busy, practical individuals who like to express their own style and are keenly aware of trends - and who love cooking for friends. Brastemp brand's 2011 product innovations include the world's first dual-voltage refrigerator and a retro oven range that reflects...

  • Page 34
    ...and easy to use. The brand renewed its Consul brand Facilite washing machine portfolio in 2011, making consumers' lives easier by providing intelligent solutions through key features such as the exclusive Easy Storage, which stores up to 690 ml of liquid detergent and fabric softener concentrate for...

  • Page 35
    ... numerous functions that help to make life pleasant and more comfortable. Bauknecht brand's versatile appliances are designed to fit into consumers' lifestyles without harming the environment - providing outstanding product performance combined with energy efficiency and low water consumption. 33

  • Page 36
    ..., entry areas, mud rooms, closets and basements. The brand launched a new online Design Studio in 2011, giving consumers and dealers a tool to help design, organize and order the products needed to reclaim their space. New products like the Gladiator Chillerator refrigerator and storage bench are...

  • Page 37
    ... competitive products, services and prices. The charts below summarize the balance of net sales by reportable segment for 2011, 2010 and 2009, respectively: Whirlpool and the home appliance industry as a whole continued to face significant macroeconomic challenges across much of the world in 2011...

  • Page 38
    ... compared to 2010, primarily due to material cost increases, partially offset by productivity improvements and higher BEFIEX credits recognized. In addition, gross margin benefited from the net impacts of a supplier recovery payment received in 2011, charges related to a product recall in 2010 that...

  • Page 39
    ...recall charges and a $61 million supplier recovery payment received in 2011, partially offset by $50 million in higher LIFO adjustments and $27 million in lower postretirement curtailment gains. North America gross margin for 2010 decreased compared to 2009 primarily due to unfavorable product price...

  • Page 40
    ... acquisitions in our core business and/or strategic adjacent business opportunities. These priorities are aligned with our goal to return our credit ratings to prerecession levels. We have continued to operate under uncertain and volatile global economic conditions for most of 2011, experiencing...

  • Page 41
    ... primarily due to changes in production levels, sales patterns, promotional programs, funding requirements as well as receivable and payment terms. Dependent on timing of cash flows, the location of cash balances, as well as the liquidity requirements of each country, external sources of funding are...

  • Page 42
    ... disasters or terrorist attacks; (6) impact of the European debt crisis; (7) 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; (8) fluctuations...

  • Page 43
    ... 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 Whirlpool Corporation S&P 500 Index S&P 500 Household Durables Dec. '07...

  • Page 44
    ...share data) Year Ended December 31, Net sales Expenses Cost of products sold Gross margin Selling, general and administrative Intangible amortization Restructuring costs Operating profit Other income (expense) Interest and sundry income (expense) Interest expense Earnings (loss) before income taxes...

  • Page 45
    ... outstanding Additional paid-in capital Retained earnings Accumulated other comprehensive loss Treasury stock, 30 million shares Total Whirlpool stockholders' equity Noncontrolling interests Total stockholders' equity Total liabilities and stockholders' equity 2011 2010 $ 1,109 2,105 2,354 248...

  • Page 46
    ... advertising and promotions Product recall Taxes deferred and payable, net Accrued pension Employee compensation Other Cash provided by operating activities Investing activities Capital expenditures Proceeds from sale of assets Investment in related businesses Proceeds from sale of brand Acquisition...

  • Page 47
    ... all non-audit services provided by the independent registered public accounting firm. Larry M. Venturelli Executive Vice President and Chief Financial Officer February 22, 2012 Management's Report on Internal Control Over Financial Reporting The management of Whirlpool Corporation is responsible...

  • Page 48
    ... of the Public Company Accounting Oversight Board (United States), Whirlpool Corporation's internal control over financial reporting as of December 31, 2011, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway...

  • Page 49
    ... control over financial reporting as of December 31, 2011, based on the COSO criteria. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheets of Whirlpool Corporation as of December 31, 2011 and 2010...

  • Page 50
    ... Total debt Whirlpool stockholders' equity Per Share Data Basic net earnings from continuing operations Diluted net earnings from continuing operations Diluted net earnings Dividends Book value(3) Closing Stock Price-NYSE Key Ratios Operating profit margin Pre-tax margin(4) Net margin(5) Return on...

  • Page 51
    ..., Mail Drop 2800 Benton Harbor, MI 49022-2692 Telephone: 269-923-2641 Fax: 269-923-3525 E-mail: [email protected] Stock Exchanges Transfer Agent, Shareholder Records, Dividend Disbursements and Corporate Secretary Stock-Split and Dividend History For information about or assistance...

  • Page 52
    ... President, Whirlpool Europe, Middle East and Africa José A. Drummond Executive Vice President and President, Whirlpool S.A. Kirsten J. Hewitt Senior Vice President, Corporate Affairs, General Counsel, and Corporate Secretary David T. Szczupak Executive Vice President, Global Product Organization...

  • Page 53
    Whirlpool Corporation and General Offices World Headquarters and North America Region 2000 N. M-63 Benton Harbor, MI 49022-2692 Telephone: 269-923-5000 Europe, Middle East and Africa Region Viale G. Borghi 27 21025 Comerio (VA), Italy Telephone: 39-0332-759-111 Latin America Region Av. das Naçõ...

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    Please visit our online annual report at www.whirlpoolcorp.com/2011Annual/