Our Financial Position A Message from Jim Peters,
Chief Financial Officer

We are as committed as ever to executing a balanced approach to capital allocation. Our formula is a simple one — fund the business and our strategic investments while returning cash to shareholders — and we have been very consistent in its application over the years.

Funding the Business

In 2017, we continued to fund the business, investing more than $1 billion in innovation between capital expenditures and R&D. These investments enabled us to launch more than 100 new products and grow or maintain our market share position in most countries throughout the world. We plan to continue fully investing in our product portfolio in the coming years and see these investments as the catalyst for achieving our annual sales growth goal of 3 to 5 percent on a consistent basis.

A great example of an investment we are excited about is our recent acquisition of Yummly. Acquired in early 2017, Yummly is a technology company that serves over 20 million users, helping them discover exciting new recipes and ingredients in a unique and personalized way. We also developed partnerships with technology leaders such as Amazon, Google, IBM and Honeywell.(c) In early 2018, we are launching a fully connected kitchen suite under the Whirlpool brand that uses Scan-to-Cook technology and fully integrates with Yummly to recognize ingredients, recommend best recipes and provide on-demand videos to make cooking easier. This is just the beginning of our strategic investments in the Internet of Things. We believe that as the global leader in the home appliance industry, we are in the best position to deliver technology-enabled home appliances that appeal to consumers every day.

Maintaining Liquidity

We continue to maintain strong liquidity, keeping appropriate flexibility as economic conditions around the world remain volatile. This year, we finished with more than $1 billion in cash on hand and approximately $3.6 billion in available credit facilities.

We are prudent about our capital structure and continue to maintain strong investment-grade credit ratings. In 2017, we refinanced debt at very favorable rates and issued a new €600 million eurobond to support our international operations. As a result, we improved liquidity and our future debt obligations are exceptionally well-balanced.

Returning Cash to Shareholders

We also returned a record $1.1 billion to shareholders in 2017. Our quarterly dividend increased for a 7th consecutive year, and we repurchased a record $750 million of common stock. We remain committed to delivering strong returns for our shareholders in 2018 and beyond.

In closing, we will continue making investments in the right places to provide effective solutions to our consumers. These investments enable us to remain at the forefront of the industry as we progress toward our long-term financial goals and generate strong returns for our shareholders.

James W. Peters
Chief Financial Officer

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