Whirlpool 2013 Annual Report Download

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Purposeful Innovation
2013 Annual Report

Table of contents

  • Page 1
    Purposeful Innovation 2013 Annual Report

  • Page 2
    ... design and advanced features come standard on the Whirlpool 29-cubic-foot French-door, bottom-mount refrigerator with flexible capacity, Whirlpool microwave-hood combination with auto-adapt fan and Whirlpool double-oven electric freestanding range - all part of the Whirlpool White Ice Collection...

  • Page 3
    1

  • Page 4
    ... consecutive quarters of margin expansion • We drove significant value for our shareholders, including higher dividends, ongoing business earnings per share of $10.02 and a 54 percent increase in the company's stock price We continued to execute well on those things that we can control and, as...

  • Page 5
    ... OpeRatiOns eaRnings peR DiluteD shaRe ...brand portfolio, best distribution and leading scale. We will continue re-investing in our business in 2014 to capitalize on our long-term growth opportunities, with increased capital expenditures, higher research and development investments, and expanded brand...

  • Page 6
    ... by debt and stockholders' equity. Value Through Operating and People Excellence Our proven track record of operating discipline, while managing through global volatility, served us well in 2013. We effectively managed our costs and assets and increased productivity in all parts of our business to...

  • Page 7
    ... in housing, the normal replacement cycle of appliances and increasing discretionary demand. In Europe, we anticipate gradual stabilization and benefits from our ongoing turnaround actions across the region. For emerging markets, such as India and Latin America, we will continue to manage through...

  • Page 8
    Building unmatched customer loyalty through our distinctive brands Brand Leadership Whirlpool Corporation offers the strongest portfolio of brands in the home appliance industry - due, in large part, to our deep consumer insights. From design to innovation to features to performance, each brand has...

  • Page 9
    ... run high in Brazil for the Brastemp brand and its broad selection of products like water purifiers that remove bacteria and chemicals for 100 percent pure water. Below: KitchenAid brand helps home chefs around the globe make each dish better than the last with best-in-class appliances that...

  • Page 10
    Latin America's Brastemp Ative! dishwasher $1 billion+ brands F i v e O F O uR BR a nD s e a Ch ge ne R at e M O R e t h a n $1 Bil l iOn in a nnua l s a l e s KitchenAid food processor 8

  • Page 11
    ... our insights-driven brand strategies and accelerate new product introductions, we will create more distance between ourselves and the competition as well as more value for our shareholders and consumers. Our greatest accomplishments are yet to come. Maytag French-door, bottom-mount refrigerator 9

  • Page 12
    ... inventive as they are practical and efficient - like the Whirlpool Armstrong total laundry solution, made especially for consumers in China who like to prewash by hand and need extra storage space in their homes. As a result, we are delivering clear financial value as well as equity in our strong...

  • Page 13
    ... save energy. Our affresh washer cleaner is one of several products available from our beyond-the-core affresh brand, which helps consumers keep their appliances clean inside and out. Right: Bauknecht brand brings innovation to the kitchen with this built-in oven, winner of the Plus X award in 2013...

  • Page 14
    ...of our multi-brand portfolio, as demonstrated by the sophisticated Jenn-Air Accolade ventilation system that virtually disappears when not in use. 50 M a JOR ne W p R ODuCt in t R ODuCt iOn s in 2 013 The Jenn-Air Accolade downdraft ventilation system serves as an impressive design focal point that...

  • Page 15
    ..., but the beauty of our products isn't just skin-deep. Top: Whirlpool brand's refrigerator with superior storage flexibility. Bottom, from left: The Whirlpool Ares Combo washer/dryer, sold in Asia; the Latin America Region's portable air conditioner by Consul brand; and the Maytag Maxima XL steam...

  • Page 16
    ... and discipline begins on the ground floor at Whirlpool and weaves its way through every facet of our company. We work together as a global team to achieve our business goals and satisfy each of our stakeholders - from suppliers to consumers to trade customers, and everyone in between. 14

  • Page 17
    ...service ratings across every region, successful marginimprovement actions around the world and strengthened operational performance in 2013. We will intensify our efforts in 2014 as we continue to optimize and refine our operations to deliver improved efficiency, customer satisfaction and profitable...

  • Page 18
    ... and service offerings beyond our core appliance business. Product Line/Channel Growth We are well positioned to evolve our product lines to best meet the needs of diverse families around the globe in 2014. In cities big and small, in countries far and wide, we make it easy for people to discover...

  • Page 19
    The Whirlpool Connect refrigerator, sold in Argentina, Colombia and Central America Growth Beyond the Core The expansion of our products and services is a key enabler to our long-term success. Our globally-available KitchenAid small appliances, our water business, affresh cleaning products and ...

  • Page 20
    ... value for our stockholders. We also invested heavily in marketing, technology and product development to bring highly preferred, consumer-relevant products to the marketplace. For example, our new built-in wall ovens and electric cooktops from the Whirlpool, Maytag and KitchenAid brands earned...

  • Page 21
    Left: KitchenAid Pro Line four slice toaster Below: Maytag kitchen with French-door, bottom-mount refrigerator, double-oven electric range, microwave-hood combination and built-in dishwasher 19

  • Page 22
    ...business discipline resulted in both growth and significantly improved operating performance in 2013. And we are dedicated to accelerating these positive trends in 2014. Bauknecht LUMiQ refrigerator Europe, Middle East and Africa Whirlpool Maytag Kitchenaid Bauknecht Ignis Laden polar privileg 20

  • Page 23
    Above: KitchenAid Vertigo wine cooler and refrigerator Right: Whirlpool Infinite Care washer and dryer 21

  • Page 24
    ...high consumer preference for our versatile brands has helped Whirlpool Corporation strengthen our No. 1 market share position in Latin America. We drove ongoing margin expansion in 2013 due to our impressive new product launches, effective management of our resources and continued non-core appliance...

  • Page 25
    Left: Consul brand microwave Below: Brastemp Clean Timer range and ventilation hood 23

  • Page 26
    ... grow our strong market position in India, and we have built a strong platform for growth in China. Across the region, Whirlpool Corporation delivered a variety of innovative products in 2013. We refreshed the Whirlpool Neo iChill line of frost-free refrigerators with upgraded design, best-in-class...

  • Page 27
    Above: The Whirlpool Neo iChill refrigerator and Whirlpool range, microwave, espresso maker and built-in oven - all available to consumers in India. Right: India's Whirlpool Stainwash top-load washer. 25

  • Page 28
    At Whirlpool, we foster collaboration in the workplace because we recognize the value each employee brings to the table. Our winning tools, environment and culture allow our employees to become more efficient, further engaged and produce winning results - for themselves, the company and our ...

  • Page 29
    ... have assembled a global team of great people that reflects our diverse consumer base and possesses the right skills to help us succeed in the marketplace. And we have built a winning culture, where every employee feels empowered to do their best work - with the most efficient tools and technologies...

  • Page 30
    ... Development program and local groups like Whirlpool leaders in the united states and school of Leaders in Latin America. At Whirlpool, we are a company of high-performing teams that work together to bring the very best products and services to our consumers. In everything we do, we are guided...

  • Page 31
    69,000 employees a glO B a l t e a M t h at in s p iR e s a W innin g C u lt u R e a n D e X t R a O R D i n a R y R e s u lt s 29

  • Page 32
    ... bringing people transformative home solutions so they can focus on what really matters - their lives, their families and their communities. today, Whirlpool not only stands for brand and product leadership, but we are also a leading company with a collective impact that is driven by doing the right...

  • Page 33
    ... * Whirlpool Corporation's 2013 global sustainability report will be available during the second half of 2014. For more information, see www.whirlpoolcorp.com. At Whirlpool Corporation we have high-impact relationships with nonprofit organizations that make a positive difference in people's lives...

  • Page 34
    .... Across our brand portfolio, we are bringing new, resource-friendly appliances to the market that are more efficient than their predecessors. For example, a new washer today is 77 percent more efficient than one from the year 2000. Consumers who replace their older models would save energy and...

  • Page 35
    ...GreenKitchen appliances that take future home solutions out of the design studios and into the German market. until now, waste heat generated from cooling food in the refrigerator could not be reused. this is no longer the case with Bauknecht GreenKitchen products. In fact, the ability to save water...

  • Page 36
    ... - u.s. green Building Council • Leadership in Energy and Environmental Design (LEED®) Platinum Certification Benton harbor, Mich., Riverview campus - u.s. green Building Council ENERGY STAR® Sustained Excellence Award Whirlpool Canada - natural Resources Canada Emirates Quality Mark for...

  • Page 37
    ... with Whirlpool Corporation's Financial Statements and related notes, and "Management's Discussion and Analysis." This information appears in the Company's 2013 Annual Report on Form 10-K filed with the Securities and Exchange Commission, which is available on the company's website at investors...

  • Page 38
    ...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...

  • Page 39
    ... 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 Whirlpool Corporation S&P 500 Index S&P 500 Household Durables...

  • Page 40
    ... costs Operating profit Other income (expense) Interest and sundry income (expense) Interest expense Earnings (loss) before income taxes Income tax expense (benefit) Net earnings Less: Net earnings available to noncontrolling interests Net earnings available to Whirlpool Per share of common stock...

  • Page 41
    ... (loss) arising during period Less: reclassification adjustment for gain (loss) included in net earnings Marketable securities, net Defined benefit pension and postretirement plans: Prior service (cost) credit arising during period Net gain (loss) arising during period Less: amortization of prior...

  • Page 42
    ... paid-in capital Retained earnings Accumulated other comprehensive loss Treasury stock, 32 million and 29 million shares, respectively Total Whirlpool stockholders' equity Noncontrolling interests Total stockholders' equity Total liabilities and stockholders' equity 2013 2012 $ 1,380 2,005 2,408...

  • Page 43
    ... activities Effect of exchange rate changes on cash and equivalents Increase (decrease) in cash and equivalents Cash and equivalents at beginning of year Cash and equivalents at end of year Supplemental disclosure of cash flow information Cash paid for interest Cash paid for income taxes 2013 $ 849...

  • Page 44
    ... 19 - (16) $110 Total Balances, December 31, 2010 Comprehensive income Net earnings Other comprehensive loss Comprehensive income Stock issued Dividends declared Balances, December 31, 2011 Comprehensive income Net earnings Other comprehensive loss Comprehensive income Cumulative adjustment, equity...

  • Page 45
    ...nature, extent, and cost of all non-audit services provided by the independent registered public accounting firm. Larry M. Venturelli Executive Vice President and Chief Financial Officer February 18, 2014 Management's Report on Internal Control Over Financial Reporting The management of Whirlpool...

  • Page 46
    ..., in relation to the consolidated financial statements from which it has been derived. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the effectiveness of Whirlpool Corporation's internal control over financial reporting as of...

  • Page 47
    ... In our opinion, Whirlpool Corporation maintained, in all material respects, effective internal control over financial reporting as of December 31, 2013, based on the COSO criteria. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States...

  • Page 48
    ...' equity Per Share Data Basic net earnings available to Whirlpool Diluted net earnings available to Whirlpool Dividends Book value(2) Closing Stock Price-NYSE Key Ratios Operating profit margin Pre-tax margin(3) Net margin(4) Return on average Whirlpool stockholders' equity (5) Return on average...

  • Page 49
    ... be obtained by contacting: Joe Lovechio Senior Director, Investor Relations Whirlpool Corporation 2000 N. M-63, Mail Drop 2609 Benton Harbor, MI 49022-2692 Telephone: 269-923-2641 Fax: 269-923-3525 Email: [email protected] Stock Exchanges Direct Stock Purchase Plan As a participant...

  • Page 50
    ... Human Resources Committee *Presiding Director of the Whirlpool Corporation Board Executive Committee Jeff M. Fettig Chairman of the Board and Chief Executive Officer David A. Binkley Senior Vice President, Global Human Resources Marc Bitzer President, Whirlpool North America and Whirlpool Europe...

  • Page 51
    Whirlpool Corporation and General Offices Global Headquarters 2000 N. M-63 Benton Harbor, MI 49022-2692 Telephone: 269-923-5000 North America Region 600 W. Main Street Benton Harbor, MI 49022 Telephone: 269-923-0700 Europe, Middle East and Africa Region Viale G. Borghi 27 21025 Comerio (VA), Italy ...

  • Page 52
    Please visit our online annual report at WhirlpoolCorp.com/2013Annual/