Whirlpool 2015 Annual Report Download

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Whirlpool Corporation 2015 Annual Report
2015 Annual Report

Table of contents

  • Page 1
    2015 Annual Report

  • Page 2
    ... AND PUT OUR CONSUMERS FIRST. INNOVATION IS THE ENGINE FOR ECONOMIC GROWTH AND COMPETITIVE ADVANTAGE. WHIRLPOOL CORPORATION BELIEVES THAT THE BEST WAY TO GROW IS TO DESIGN AND MANUFACTURE PRODUCTS THAT MEET THE NEEDS OF CONSUMERS THROUGHOUT THE WORLD. 2 015 W H I R L P O O L C O R P O R AT...

  • Page 3
    01 K i t c h e n A i d S TA I N L E S S C O L L E C T I O N

  • Page 4
    Chairman's Message 2015 RESULTS Whirlpool Corporation delivered record results in 2015, driving revenue growth, margin expansion and strong cash generation through our industry-leading brand portfolio and innovative new products within our core appliances and adjacent businesses. 2 015 W H I R L...

  • Page 5
    ... purchased American Dryer Corporation to expand our presence in a value-creating adjacent business. As a result of these investments, we ended the year with a strong balance sheet and increased investment capacity to allow us to build an even stronger future for our company. GLOBAL PRODUCT AND BRAND...

  • Page 6
    ... in all of our markets globally, delivering consumer-relevant brand and product innovation and executing our best cost structures to expand operating margins and grow revenues. 2016 OUTLOOK As we look forward, we believe that the economic challenges we successfully faced in 2015 will carry into...

  • Page 7
    ... to be, becoming the best branded consumer products company in every home around the world. By executing our strategies centered on this vision, we can be successful in creating value in any environment. As we move forward into 2016, we've built a tremendous global platform for growth, we have...

  • Page 8
    Product Leadership 2 015 W H I R L P O O L C O R P O R AT I O N

  • Page 9
    ... in energy, noise reduction and care for garments. With an intuitive user interface, Supreme Care features smart technology, the Whirlpool 6TH SENSE LIVE app, allowing consumers to operate the machine remotely, thereby saving resources and effort. Very smart indeed. 06 07 PRODUCT LEADERSHIP

  • Page 10
    ... NEW PRODUCTS PEOPLE WANT AND NEED. Whirlpool brand Protton World Series refrigerators help consumers in India keep produce fresh longer. The three-door format features a bottom drawer, called the Active Fresh Zone, for fruits and vegetables. The Protton refrigerator's Air Boosters offer customized...

  • Page 11
    08 09 PRODUCT LEADERSHIP

  • Page 12
    2 015 W H I R L P O O L C O R P O R AT I O N

  • Page 13
    ... friends and family. In EMEA, Bauknecht Ultimate NoFrost refrigerator-freezer monitors conditions inside the refrigerator - temperature and moisture are maintained at ideal levels. The Zero° BioZone can be activated, protecting meat and fish at temperatures close to freezing. Boasting the multi...

  • Page 14
    ... IN PEOPLE'S LIVES THROUGH THE SIMPLE ELEGANCE OF USABILITY. INNOVATION BY WHIRLPOOL CORPORATION, INSPIRED BY CONSUMERS. In Latin America, the Brastemp brand introduced its most premium line to date - a full kitchen suite with a sleek, white glass finish. High-performing appliances meet modern...

  • Page 15
    12 13 PRODUCT LEADERSHIP

  • Page 16
    ... MIXER, AND FROM THAT STEMMED AN ENTIRE KITCHEN OF HIGHPERFORMANCE APPLIANCES, ALL CREATED WITH THE SAME ATTENTION TO DETAIL, QUALITY CRAFTSMANSHIP, VERSATILE TECHNOLOGY AND TIMELESS DESIGN. 2 015 W H I R L P O O L C O R P O R AT I O N

  • Page 17
    ... with modern artful design to make it easy for people to enjoy a better cup of coffee in the comfort of their homes. Dedicated to celebrating the art and craftsmanship baristas have long mastered, KitchenAid studied time-honored coffee brewing methods to ensure its new line of coffee products was...

  • Page 18
    ... COMPANY IN ASIA #1 LATIN AMERICA Whirlpool Corporation is committed to manufacturing the best branded consumer products in the world. The transformation of our geographic footprint continued in 2015, opening up new opportunities for growth globally, with the integration of Indesit in Europe...

  • Page 19
    16 17 PRODUCT LEADERSHIP

  • Page 20
    ... STRONG BRAND PORTFOLIO ALLOWS CONSUMERS TO CHOOSE FROM DISTINCT PRODUCTS DESIGNED FOR THEIR SPECIFIC NEEDS. CONSUMERS CAN BE CONFIDENT KNOWING WHEN THEY INVITE ANY OF OUR BRANDS HOME, EACH PRODUCT GETS RIGHT TO WORK AND KEEPS THEIR LIVES RUNNING SMOOTHLY. In North America, Maytag brand transformed...

  • Page 21
    ... their lives. EMEA's Goddess emerged as an aspirational symbol and is now trusted as one embodying the knowledge, sensitivity and intuition of the Whirlpool brand. The Brastemp brand in Brazil fortified its brand personality through a colorful new online, print and television campaign illustrating...

  • Page 22
    2 015 W H I R L P O O L C O R P O R AT I O N

  • Page 23
    ... amount of laundry detergent. AWARD WINNING INNOVATION The Bauknecht PremiumCare washing machines and dryers won the iF Design Award as well as the Red Dot Product Design Award in 2015. The two internationally recognized awards are for outstanding design achievement. 20 21 BRAND LEADERSHIP

  • Page 24
    ... the legendary downdraft cooktop in 1961, as well as for bringing convection cooking into the home. Jenn-Air now makes appliances for the entire kitchen, from powerful professional-style ranges to stylish built-in refrigerators. The brand's new, sleek dual convection wall ovens feature wireless...

  • Page 25
    22 23 BRAND LEADERSHIP

  • Page 26
    ... - including wooden cutting boards and knife holders - the cooking workstation is easy for home chefs to design. The gas or induction hobs offer professional performance, care fully crafted artisan quality and iconic design. After more than 60 years of creative ideas, the Consul brand is present in...

  • Page 27
    24 25 BRAND LEADERSHIP

  • Page 28
    ...day, every time. We do what we say we're going to do and we do it with passion, without making excuses. Operating Excellence is how we turn our ideas into reality and then get products to consumers' homes. It's the connection point, the tangible interaction between us and the people who sell and use...

  • Page 29
    ... a program to provide a global dashboard from each of our plants and facilities to promote energy efficiency, water/waste conservation and benchmarking. This allows for crossfunctional global collaboration and best practices sharing. With the ongoing successful integration of Indesit in Europe and...

  • Page 30
    ...of the company, our 97,000 employees are empowered to be both bold and innovative in a values-based, performance-driven environment that rewards results. Our vision and work environment are conducive to success, but it's the people within our organization who truly bring our dynamic products to life...

  • Page 31
    70 Manufacturing & Technology Research Centers 97,000 Employees Around the World ILITY B A D N EPE m TRY DRE YOU BUY . like in your home fro ITY BEFO NDABILa look vice. PEt Maytag appli nces ile de DEw r mob u ....REF D IS H L AU N D RY WA S HER R AT R IG E ORS COO K IN G 28 29 PEOPLE EXCELLENCE

  • Page 32
    ... we do business. We work with community organizations to create a collective impact, first supporting the health and wellness needs of area residents, then helping to provide safe and affordable housing which enables youth and education development. This approach allows us to prioritize partnerships...

  • Page 33
    ... volunteerism hours (self-reported by salaried population) 300+ Non-profit organizations impacted globally through volunteerism and donations Community Relations Performance Scorecard 1 in 3 Employees volunteer (self-reported by salaried population) 100+ Whirlpool Sons & Daughters Scholarship...

  • Page 34
    ... housing in partnership with young adult orphans leaving state care. COMMUNITY Development Whirlpool India teaches vocational skills to low-income youth to prepare them for meaningful employment as adults. Now in its second year, the program works with local communities in need of specific job...

  • Page 35
    ... our global headquarters, Whirlpool Corporation is a proud sponsor of FIRST® Robotics, providing local teams with challenge grants, materials and supplies, including Gladiator GarageWorks tool chests. Our employees also spend thousands of volunteer hours coaching and mentoring high school youth to...

  • Page 36
    ... SUSTAINABILITY PROGRAMS INTO OUR PRODUCTS AND PROCESSES WHILE NURTURING THE COMMUNITIES WHERE WE OPERATE, DELIVERING VALUE TO OUR CONSUMERS AND REDUCING OUR ENVIRONMENTAL IMPACT. Building on our commitment to establish a dedicated global sustainability team, Whirlpool Corporation is proud...

  • Page 37
    ..., products and services. At our manufacturing facilities, we have worked to reduce water and energy use, greenhouse gas emissions and raw material waste. We have also designed and produced a number of new water and energy-efficient products. Our commitment to improve lives and make a positive impact...

  • Page 38
    ... Cleveland plant's sustainable design also earned gold LEED certification. In North America, we introduced a new configuration of the Whirlpool HybridCare heat pump dryer designed to fit seamlessly into more compact spaces while still handling family-sized loads. The new dryer processes, dries and...

  • Page 39
    We broke ground on a wind farm near our Findlay, Ohio dishwasher plant. Through clean, renewable energy, the turbines are expected to offset more than 20 percent of our on-site electricity consumption producing zero greenhouse gas emissions. 36 37 S U S TA I N A B I L I T Y

  • Page 40
    ... > Top Employers "Best of the Best" list, Hispanic Network Magazine > Five Top Sustainable Companies Exame magazine (Brazil) (Electroelectronic Sector) > Leadership in Energy and Environmental Design (LEED®) Silver Certification Marion, Ohio, Factory Distribution Center > Great Places to Work...

  • Page 41
    ... with Whirlpool Corporation's Financial Statements and related notes, and "Management's Discussion and Analysis." This information appears in the Company's 2015 Annual Report on Form 10-K filed with the Securities and Exchange Commission, which is available on the company's website at investors...

  • Page 42
    ... operating profit and ongoing business earnings per diluted share, with the most directly comparable GAAP financial measures, reported operating profit and net earnings per diluted share available to Whirlpool, for the twelve months ended December 31, 2015, December 31, 2014 and December 31, 2013...

  • Page 43
    ... including environmental and health and safety regulations; (10) Whirlpool's ability to maintain its reputation and brand image; (11) the ability of Whirlpool to achieve its business plans, productivity improvements, cost control, price increases, leveraging of its global operating platform, and...

  • Page 44
    ... 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 45
    WHIRLPOOL CORPOR ATION Consolidated Statements of Income (Millions of dollars, except per 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...

  • Page 46
    ... Net gain (loss) arising during period Less: amortization of prior service credit (cost) and actuarial (loss) Defined benefit pension and postretirement plans, net: Other comprehensive income (loss), before tax Income tax benefit (expense) related to items of other comprehensive income (loss) Other...

  • Page 47
    ...debt Pension benefits Postretirement benefits Other noncurrent liabilities Total noncurrent liabilities Stockholders' equity Common stock, $1 par value, 250 million shares authorized, 111 million and 110 million shares issued, and 77 million and 78 million shares outstanding, respectively Additional...

  • Page 48
    ...of long-term debt Net proceeds from short-term borrowings Dividends paid Repurchase of common stock Purchase of noncontrolling interest shares Common stock issued Other Cash provided by (used in) financing activities Effect of exchange rate changes on cash and cash equivalents Increase (decrease) in...

  • Page 49
    ... (loss) Comprehensive income Stock issued (repurchased) Dividends declared Acquisitions Balances, December 31, 2014 Comprehensive income Net earnings Other comprehensive income (loss) Comprehensive income Stock issued (repurchased) Dividends declared Balances, December 31, 2015 Total $4,367 849 230...

  • Page 50
    ... audit engagement fees and terms and pre-approve the 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 16, 2016 2 015 W H I R L P O O L C O R P O R AT...

  • Page 51
    ...audit report on its assessment of Whirlpool's internal control over financial reporting. This report appears on page 51. Jeff M. Fettig Chairman of the Board and Chief Executive Officer February 16, 2016 Larry M. Venturelli Executive Vice President and Chief Financial Officer February 16, 2016 48...

  • Page 52
    ... consolidated balance sheets of Whirlpool Corporation at December 31, 2015 and 2014 and the related consolidated statements of income, comprehensive income, stockholders' equity and cash flows for each of the three years in the period ended December 31, 2015 and in our report dated February 16, 2016...

  • Page 53
    ...financial reporting as of December 31, 2015, 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, 2015 and 2014, and the related...

  • Page 54
    ...stockholders' 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...

  • Page 55
    ... Chicago stock exchanges. Annual Meeting Whirlpool Corporation's next annual meeting is scheduled for April 19, 2016, at 8 a.m. (Central time), at 120 East Delaware Place, 8th Floor, Chicago. Transfer Agent, Shareholder Records, Dividend Disbursements and Corporate Secretary For information about...

  • Page 56
    ... President, Global Product Organization 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 49022-3618 Telephone: 269-923-0700 Europe, Middle East and Africa Region...

  • Page 57
    Annual Report Design: Curran & Connors, Inc. / www.curran-connors.com Printing: The Fox Company, Inc. Lithographers

  • Page 58
    *Whirlpool ownership of the Hotpoint brand in EMEA and Asia Pacific regions is not affiliated with the Hotpoint brand sold in the Americas. Please visit our online annual report at WhirlpoolCorp.com/2015Annual