Ongoing Earnings Per Diluted Share

The reconciliation provided below reconciles the non-GAAP financial measure of ongoing earnings per diluted share with the most directly comparable GAAP financial measure, net earnings per diluted share available to Whirlpool, for the twelve months ended December 31, 2017, 2016 and 2015. The earnings per diluted share GAAP measure and ongoing business measure are presented net of tax, while each adjustment is presented on a pre-tax basis. The aggregate income tax impact of the taxable components of each adjustment is presented in the income tax impact line item at our 2017, 2016 and 2015 full-year tax rates of 14.7%, 16.6% and 20.3%, respectively. For more information, see document titled “GAAP Reconciliations” at Investors.WhirlpoolCorp.com/financial-information/annual-reports.

Earnings Per Diluted Share
Twelve Months Ended December 31,
2017 2016 2015
Reported GAAP Measure 4.70 11.50 9.83
Restructuring Expense 3.70 2.24 2.52
Out of Period Adjustment 0.27 — —
Acquisition Related Transition Costs — 1.11 0.80
Antitrust and Dispute Resolutions — — 0.44
Gain/Expenses Related to a Business Investment — — (0.58)
Pension Settlement Charges — — 0.19
Benefit Plan Curtailment Gain — — (0.78)
Legacy Product Warranty and Liability Expense — (0.30) 0.53
Income Tax Impact (0.56) (0.49) (0.57)
Normalized Tax Rate Adjustment 5.63 — —
Ongoing Business Measure 13.74 14.06 12.38

Performance Graph

The graph below compares the yearly dollar change in the cumulative total stockholder return on our common stock against the cumulative total return of Standard & Poor’s [S&P] Composite 500 Stock Index and the cumulative total return of the S&P 500 Household Durables Index for the last five fiscal years.** The graph assumes $100 was invested on December 31, 2012, in Whirlpool Corporation common stock, the S&P 500 and the S&P Household Durables Index.

**Cumulative total return is measured by dividing [1] the sum of [a] the cumulative amount of the dividends for the measurement period, assuming dividend reinvestment, and [b] the difference between share price at the end and at the beginning of the measurement period by [2] the share price at the beginning of the measurement period

Total Return to Shareholders

(Includes reinvestment of dividends)

Annual Return Percentage
Years Ending
Company/Index Dec. '13 Dec. '14 Dec. '15 Dec. '16 Dec. '17
Whirlpool Corporation 57.00% 25.81% -22.71% 26.71% -4.89%
S&P 500 Index 32.39 13.69 1.38 11.96 21.82
S&P 500 Household Durables 31.08 18.54 0.12 7.42 18.65
Base Period Indexed Returns
Years Ending
Company/Index Dec. '12 Dec. '13 Dec. '14 Dec. '15 Dec. '16 Dec. '17
Whirlpool Corporation $100 $157.00 $197.52 $152.66 $193.44 $183.98
S&P 500 Index 100 132.39 150.51 152.59 170.84 208.12
S&P 500 Household Durables 100 131.08 155.38 155.57 167.11 198.28

Footnotes

  • (a) Based on most recently available publicly reported annual revenues.
  • (b) Based on AHAM, Traqline and Internal Research for the full-year 2016.
  • (c) Amazon, Boys and Girls Clubs of America, Google, Habitat for Humanity International, Honeywell, IBM, Instituto Consulado da Mulher, International Red Cross, United Way and certain other trademarks are owned by their respective companies.
  • (d) Click here for reconciliation
  • (e) Click here to see 10-K for reconciliation
  • (f) Bauknecht, Brastemp, Consul, Design of the stand mixer, Hotpoint*, Indesit, KitchenAid, Maytag, Whirlpool, and Yummly are trademarks of Whirlpool Corporation of its wholly or majority-owned affiliates.
  • *   Whirlpool Corporation ownership of the Hotpoint brand in EMEA and Asia Pacific regions is not affiliated with the Hotpoint brand sold in the Americas.
  • (g) Appliance must be set to remote enable. WiFi & App required. Features subject to change. For details and privacy statement, visit whirlpool.com/connect.

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

* View Footnotes