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.

Letter From Our Chairman A Message from Jeff Fettig,
Chairman of the Board

I began my career in 1981 as an operations associate at Whirlpool. That year, the company celebrated its 25th anniversary as a full line manufacturer of major home appliances and reported a then-record $2.4 billion in net sales, nearly all of which came from the United States.

In the last 36 years, many things have changed. Today, more than half of our global sales come from outside the United States. We have an industry-leading brand portfolio that delivered more than $21 billion in revenues this year across our major appliance and adjacent businesses. Our employee base is more diverse now than ever, and our commitment to sustainability and protecting our natural resources has never been greater.

Yet, many things have not changed. Whirlpool Corporation still manufactures great products. While we have expanded into new product categories and serve new geographies, we are still a consumer products company that solves everyday problems in homes throughout the world. We continue to leverage our legacy of innovation as we invest in new and emerging technologies, including the shift to digital and connected appliances, and are well-positioned to continue delivering incredible care and value to consumers.

Who we are has also not changed. The core values and leadership principles that made us industry leaders continue to guide our actions and decision making. We are motivated by the spirit of winning while steadfastly believing that “there is no right way to do a wrong thing.”

Achieving the Vision: Our Progress

2010-2014

Focused on margin expansion
and cash generation

2015-2018

30% larger global platform
with compelling brand and
product innovation

Beyond 2018

Unique global strategic position
delivering further margin expansion
and strong cash conversion

Our obligation to you, our shareholders, is to do all of these things profitably. Your Board continually assesses Whirlpool Corporation’s long-term strategy, and many of the Board’s strategic discussions are focused on how best to allocate resources to drive differentiated results. The members of the Board bring a broad range of skills and experiences, and each and every Board member acts as a shareholder advocate. As Whirlpool continues to grow, invest in new technologies and expand its businesses throughout the world, you should be confident that the Board is having in-depth and frequent discussions with our executive team focused on delivering consistently strong financial results and sustainable long-term value.

The opportunity to lead Whirlpool has been both an honor and a privilege. During my time as CEO, we achieved significant milestones as a company, thanks to the great work of our employees throughout the world. I am very proud of the Whirlpool team, and their dedication has led to the success that we have all achieved.

This year, I transitioned from my role as CEO, and the Board appointed Marc Bitzer as the eighth CEO in Whirlpool Corporation’s 106-year history. Marc has gained a deep understanding of our global business during his 18-year tenure at Whirlpool. He has personally led regional operations in EMEA and North America, and most recently led our global operations as Chief Operating Officer. The Board and I could not be more confident in Marc, and believe he is the right person to lead our company to continued success.

Thank you for your ongoing support of our company. We will continue to lead the global appliance industry, delivering innovative products to consumers and strong levels of return to shareholders. While there will be more changes ahead, we have the right plans and the best team to continue delivering strong results. I have never been more confident in the future of Whirlpool Corporation.

Jeff M. Fettig
Chairman of the Board