Whirlpool Corporation Reports Second-Quarter 2014 Results

          Whirlpool Corporation Reports Second-Quarter 2014 Results  Record Operating Profit in North America Region  Business Investments Continue  PR Newswire  BENTON HARBOR, Mich., July 23, 2014  BENTON HARBOR, Mich., July23, 2014 /PRNewswire/ -- Whirlpool Corporation (NYSE: WHR) announced today second-quarter GAAP net earnings of $179 million, or $2.25 per diluted share, compared to $198 million, or $2.44 per diluted share, reported for the same prior-year period. Ongoing business earnings per diluted share^(1) increased to a second quarter record $2.62, compared to $2.37 in the prior-year period, mainly driven by improved product price and mix, ongoing cost productivity and the benefit of cost and capacity-reduction initiatives.  Whirlpool Corporation Logo  Net sales in the quarter were $4.7 billion compared to $4.7 billion during the same prior-year period. Excluding the impact of both foreign currency and Brazilian (BEFIEX) tax credits, sales increased approximately 1 percent.  "The second-quarter results were in line with our expectations as our North America Region delivered record operating profit," said Jeff M. Fettig, chairman and chief executive officer of Whirlpool Corporation. "Overall, the underlying fundamentals of our business remain strong and we continue to invest in our business through innovative new products and acquisitions."  Second-quarter GAAP operating profit totaled $291 million, compared to $328 million in the same prior-year period. Ongoing business operating profit^(2) totaled $330 million, or 7.1 percent of sales, compared to $335 million, or 7.1 percent of sales, in the same prior-year period. Improved product price and mix, ongoing cost productivity and the benefit of cost and capacity-reduction initiatives were more than offset by lower unit volumes, higher material costs, foreign currency and increased investments in marketing, technology and products.  During the six months ended June30, 2014, the company reported cash used in operating activities of $(368) million compared to $(196) million in the prior-year period. On a year-to-date basis, Whirlpool Corporation reported free cash flow^(3) use of $(622) million, compared to free cash flow^(3) use of $(373) million in the same prior-year period. Free cash flow^(3) use was primarily driven by increased capital spending and higher levels of inventory to supportproduct line transitions and new product launches in the second half.  OUTLOOK  Whirlpool Corporation has adjusted its full-year 2014 guidance to reflect trade customer inventory transitions in China related to the pending acquisition of a majority stake in Hefei Rongshida Sanyo Electric Co., Ltd. and investment expenses related to the pending acquisition of a majority stake in Indesit Company S.p.A. The company expects full-year net earnings per diluted share of $10.30 to $10.80 and full-year ongoing business earnings per diluted share of $11.50 to $12.00.                                    2014 Diluted EPS^(i)                                   Ongoing       GAAP Previous Outlook                  $12.00–$12.50 $11.05–$11.55 China Trade Inventory Transitions (0.50)        (0.50) Indesit Investment Expenses       –             (0.25) Current Outlook                   $11.50-$12.00 $10.30-$10.80                                                 2014 EPS Outlook GAAP Diluted EPS^(i)                            $10.30–$10.80 Restructuring Expense                           ~0.95 Brazilian (BEFIEX) Tax Credits                  (0.18) Investment Expense^(ii)                         ~0.46 Antitrust Resolutions                           0.02 Ongoing Business Diluted EPS                    $11.50–$12.00  (i) Diluted EPS available to Whirlpool. (ii) Previous guidance of $0.21 was increased by $0.25 for Indesit investment      expense.  For the full-year 2014, the company expects to generate free cash flow^(3) of $600 million to $650 million. Included in this guidance are restructuring cash outlays of up to $150 million, capital spending of $625 million to $675 million and U.S. pension contributions of approximately $160 million.  "For the balance of the year, we will benefit from increasing global demand, new product introductions, previously announced price increases and strong productivity," said Fettig. "We expect to acquire majority interests in Hefei Sanyo and Indesit by the end of this year, all of which provides us with an outstanding platform for growth and value creation in 2015 and beyond."  SECOND-QUARTER REGIONAL REVIEW  Whirlpool North America  Whirlpool North America reported second-quarter net sales of $2.7 billion compared to $2.6 billion in the same prior-year period, an increase of over 3 percent. Excluding the impact of currency, sales increased approximately 4 percent.  The region reported a record second-quarter operating profit of $285 million, or 10.6 percent of sales, compared to $262 million, or 10.1 percent of sales, in the same prior-year period. Ongoing cost productivity and cost and capacity-reduction benefits offset higher material costs, foreign currency and increased investments in marketing, technology and products.  The company expects full-year 2014 industry unit shipments to increase by approximately 5 percent.  Whirlpool Europe, Middle East and Africa  Whirlpool Europe, Middle East and Africa reported second-quarter net sales of $746 million compared to $731 million in the same prior-year period. Excluding the impact of currency, sales decreased approximately 3 percent.  The region reported second-quarter operating profit of $2 million, compared to an operating loss of $(6) million in the same prior-year period. Ongoing cost productivity, the benefit of cost and capacity-reduction initiatives, and improved product price and mix more than offset lower unit volumes, foreign currency and increased investments in marketing, technology and products.  The company expects full-year 2014 industry unit shipments to be flat to up 2 percent.  Whirlpool Latin America  Whirlpool Latin America reported second-quarter net sales of $1.1 billion, compared to $1.2 billion in the same prior-year period. Excluding the impact of currency and BEFIEX tax credits, sales declined less than 4 percent.  The region reported second-quarter operating profit of $87 million, compared to $135 million in the same prior-year period. During the second quarter of 2013, the company monetized $24 million of BEFIEX tax credits. Ongoing business segment operating profit^(4) totaled $87 million, or 8.0 percent of sales, compared to $111 million, or 9.3 percent of sales, in the same prior-year period. Improved product price and mix was more than offset by lower unit volumes, higher material costs and foreign currency.  The company expects full-year 2014 industry unit shipments to be flat to down 3 percent.  Whirlpool Asia  Whirlpool Asia reported second-quarter net sales of $211 million compared to $246 million in the same prior-year period. Excluding the impact of currency, sales decreased approximately 9 percent.  The region reported second-quarter operating profit of $4 million, or 1.9 percent of sales, compared to $14 million, or 5.6 percent of sales, in the same prior-year period. Improved price and mix and ongoing cost productivity were more than offset by lower unit volumes and margins due to trade inventory transitions in China related to the pending acquisition, as well as higher material costs and foreign currency.  The company expects full-year 2014 industry unit shipments to be flat.  (1) A reconciliation of ongoing business earnings per diluted share, a non-GAAP financial measure, to reported net earnings per diluted share available to Whirlpool and other important information, appears below.  (2) A reconciliation of ongoing business operating profit, a non-GAAP financial measure, to reported operating profit and other important information, appears below.  (3) A reconciliation of free cash flow, a non-GAAP financial measure, to cash provided by operating activities and other important information, appears below.  (4) A reconciliation of ongoing business segment operating profit, a non-GAAP financial measure, to reported segment operating profit and other important information, appears below.  SECOND-QUARTER 2014 PRODUCT LEADERSHIP, INNOVATION AND AWARDS  Whirlpool Corporationis at the forefront of the home appliance industry - with deep consumer insights and the strongest portfolio of brands worldwide. Our products are uniquely positioned with consumers because they are as inventive as they are practical. We offer compelling home solutions that expand beyond our core appliance business. Across our company and around the world, we are strengthening our consumer demand by delivering innovation that matters to consumers and positioning our company for continued growth and profitability.  Awards and Recognition    oWhirlpool Corporation's new Whirlpool Duet steam dryer received the     industry's first ENERGY STAR® qualification for clothes dryers. Over 400     Whirlpool Corporation appliances carry the U.S. Environmental Protection     Agency's ENERGY STAR label - more than any other manufacturer.   oWhirlpool Corporation was a platinum sponsor of the Energy Efficiency     Global Forum 2014, hosted by the Alliance to Save Energy. Whirlpool     efficiency experts joined more than 120 leaders from around the world in     sharing insights and key learnings on the topic of energy efficiency.   oIn May, the Whirlpool Duet steam washer was named "Best Custom Wash" in     the front-load category by a leading U.S. consumer publication.   oIn May, the Maytag Bravos XL HE washer with steam was named "TLC Champ" in     the modern top-load category by a leading U.S. consumer publication.   oWhirlpool Latin America was named the best company of the electronics     industry by Exame business magazine.   oWhirlpool Latin America was recognized as the most innovative company in     Brazil by INFO magazine, which focuses on technology.   oAt the Women's Empowerment Principles event, hosted by the United Nations,     Whirlpool Latin America received an honorary mention for its work in     improving the lives of women in Brazil.  Product Innovation    oIn North America, the new KitchenAid dishwasher features an optional     ProScrub cycle that eliminates the need to pre-rinse dishes and a     groundbreaking wash system that uses a unique, ultra-fine filter to filter     100% of the wash water for a shorter overall wash cycle with less water     usage.   oThe Whirlpool 6th Sense induction cooktop, available in Europe, combines     the power of induction with 6th Sense technology for greater intuitiveness     and ease of use. With just one touch, consumers can pick from the most     frequent cooking methods, and the large FlexiCook surface makes it easier     than ever to prepare a variety of dishes.   oIn Europe, the new Whirlpool refrigerator and freezer can be installed     separately or as a pair, in both freestanding and built-in configurations,     providing superior versatility for the home. The pair's lighting system     and premium interior design make it easier to manage your groceries and     meals, while the 6th Sense FreshControl and ShockFreeze technologies keep     food fresh longer.   oWhirlpool India's new line of Whirlpool Protton no-frost refrigerators use     less energy than a CFL light bulb while making it easier for families to     preserve their groceries and keep food fresh.   oWhirlpool brand's 3D Cool Climate Control line of split air conditioners     bring fast, powerful and uniform cooling to consumers in India. With three     preset climate options, consumers can also quickly adjust the temperature     during the country's changing summer conditions.  Product Line Growth    oThe North America Region broadened its line of smart appliances with the     launch of the Whirlpool smart front-load washer and dryer with Nest     Technology. The laundry pair uses the Nest Application Programming     Interface to help save consumers energy and keep their laundry fresh if     the cycle ends while they are away.   oThe Consul Facilite automatic washer offers consumers in Brazil's emerging     middle class best-in-class quality at a price they can afford. Doing the     laundry is less of a chore, thanks to the easy dosing detergent dispenser     and environmentally friendly water reuse function.  Growth Beyond Core Appliances    oWhirlpool Corporation and P&G introduced Swash, a revolutionary at-home     clothing care system that reduces wrinkles, refreshes fabric, restores the     fit lost after wear and preserves clothing. In just 10 minutes with the     push of a button, the Swash system allows people to reduce or eliminate     ironing, save on dry cleaning, and better care for and preserve clothes.  Geographic Expansion    oThe Latin America region expanded its production of Whirlpool Max     refrigerators - now locally manufactured and sold in Colombia,     strengthening the brand's presence outside of the Brazilian market.  About Whirlpool Corporation Whirlpool Corporation is the world's leading global manufacturer and marketer of major home appliances, with annual sales of approximately $19 billion in 2013, 69,000 employees and 59 manufacturing and technology research centers around the world. The company marketsWhirlpool, Maytag, KitchenAid, Jenn-Air, Amana, Brastemp, Consul, Bauknechtand other major brand names.Additional information about the company can be found athttp://www.whirlpoolcorp.com.  Whirlpool Additional Information: This document contains forward-looking statements about Whirlpool Corporation and its consolidated subsidiaries ("Whirlpool") that speak only as of this date. Whirlpool disclaims any obligation to update these statements. Forward-looking statements in this document may include, but are not limited to, statements regarding expected earnings per share, cash flow, productivity and material and oil-related prices. Many risks, contingencies and uncertainties could cause actual results to differ materially from Whirlpool's forward-looking statements. Among these factors are: (1) intense competition in the home appliance industry reflecting the impact of both new and established global competitors, including Asian and European manufacturers; (2) Whirlpool's ability to continue its relationship with significant trade customers and the ability of these trade customers to maintain or increase market share; (3) acquisition and investment-related risk, including risks associated with our pending acquisitions of Hefei Sanyo and Indesit; (4) changes in economic conditions which affect demand for our products, including the strength of the building industry and the level of interest rates; (5) product liability and product recall costs; (6) inventory and other asset risk; (7) risks related to our international operations, including changes in foreign regulations, regulatory 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 rate of innovation; (10) Whirlpool's ability to maintain its reputation and brand image; (11) fluctuations in the cost of key materials (including steel, plastic, resins, copper and aluminum) and components and the ability of Whirlpool to offset cost increases; (12) litigation, tax, and legal compliance risk and costs, especially costs which may be materially different from the amount we expect to incur or have accrued for; (13) the effects and costs of governmental investigations or related actions by third parties; (14) Whirlpool's ability to obtain and protect intellectual property rights; (15) the ability of suppliers of critical parts, components and manufacturing equipment to deliver sufficient quantities to Whirlpool in a timely and cost-effective manner; (16) health care cost trends, regulatory changes and variations between results and estimates that could increase future funding obligations for pension and postretirement benefit plans; (17) information technology system failures and data security breaches; (18) the impact of labor relations; (19) our ability to attract, develop and retain executives and other qualified employees; (20) changes in the legal and regulatory environment including environmental and health and safety regulations; and (21) the ability of Whirlpool to manage foreign currency fluctuations.  Additional information concerning these and other factors can be found in Whirlpool's filings with the Securities and Exchange Commission, including the most recent annual report on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K.  WHIRLPOOL CORPORATION CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) FOR THE PERIODS ENDED JUNE 30 (Millions of dollars, except share data)                                       Three Months Ended  Six Months Ended                                       2014       2013     2014     2013 Net sales                             $  4,682   $ 4,748  $ 9,045  $ 8,996 Expenses Cost of products sold                 3,895      3,931    7,503    7,453 Gross margin                          787        817      1,542    1,543 Selling, general and administrative   457        453      896      874 Intangible amortization               5          5        11       14 Restructuring costs                   34         31       63       73 Operating profit                      291        328      572      582 Other income (expense) Interest and sundry income (expense)  (16)       (39)     (39)     (57) Interest expense                      (40)       (44)     (84)     (90) Earnings before income taxes          235        245      449      435 Income tax expense (benefit)          50         39       100      (28) Net earnings                          185        206      349      463 Less: Net earnings available to       6          8        10       13 noncontrolling interests Net earnings available to Whirlpool   $  179     $ 198    $ 339    $ 450 Per share of common stock Basic net earnings available to       $  2.29    $ 2.48   $ 4.34   $ 5.66 Whirlpool Diluted net earnings available to     $  2.25    $ 2.44   $ 4.27   $ 5.56 Whirlpool Dividends declared                    $  0.75    $ 0.625  $ 1.375  $ 1.125 Weighted-average shares outstanding (in millions) Basic                                 78.3       79.8     78.2     79.5 Diluted                               79.6       81.1     79.6     81.0 Comprehensive income                  $  184     $ 115    $ 390    $ 341      WHIRLPOOL CORPORATION CONSOLIDATED CONDENSED BALANCE SHEETS (Millions of dollars, except share data)                                                      (Unaudited)                                                      June 30,     December 31,                                                      2014        2013 Assets Current assets Cash and equivalents                                 $   945      $   1,380 Accounts receivable, net of allowance of $77 and     2,222        2,005 $73, respectively Inventories                                          2,812        2,408 Deferred income taxes                                335          549 Prepaid and other current assets                     731          680 Total current assets                                 7,045        7,022 Property, net of accumulated depreciation of $6,425  3,069        3,041 and $6,278, respectively Goodwill                                             1,723        1,724 Other intangibles, net of accumulated amortization   1,692        1,702 of $249 and $237, respectively Deferred income taxes                                1,758        1,764 Other noncurrent assets                              321          291 Total assets                                         $   15,608   $   15,544 Liabilities and stockholders' equity Current liabilities Accounts payable                                     $   3,876    $   3,865 Accrued expenses                                     667          710 Accrued advertising and promotions                   353          441 Employee compensation                                357          456 Notes payable                                        3            10 Current maturities of long-term debt                 312          607 Other current liabilities                            550          705 Total current liabilities                            6,118        6,794 Noncurrent liabilities Long-term debt                                       2,461        1,846 Pension benefits                                     868          930 Postretirement benefits                              468          458 Other noncurrent liabilities                         342          482 Total noncurrent liabilities                         4,139        3,716 Stockholders' equity Common stock, $1 par value, 250million shares authorized, 110 million and 109 million shares       110          109 issued, and 78 million and 77 million shares outstanding, respectively Additional paid-in capital                           2,497        2,453 Retained earnings                                    6,015        5,784 Accumulated other comprehensive loss                 (1,258)      (1,298) Treasury stock, 32 million shares                    (2,124)      (2,124) Total Whirlpool stockholders' equity                 5,240        4,924 Noncontrolling interests                             111          110 Total stockholders' equity                           5,351        5,034 Total liabilities and stockholders' equity           $   15,608   $   15,544      WHIRLPOOL CORPORATION CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED) FOR THE PERIODS ENDED JUNE 30 (Millions of dollars)                                                               Six Months Ended                                                               2014      2013 Operating activities Net earnings                                                  $  349    $  463 Adjustments to reconcile net earnings to cash used in operating activities: Depreciation and amortization                                 261       255 Changes in assets and liabilities: Accounts receivable                                           (215)     (274) Inventories                                                   (375)     (199) Accounts payable                                              (41)      19 Accrued advertising and promotions                            (88)      (55) Taxes deferred and payable, net                               16        (110) Accrued pension and postretirement benefits                   (69)      (89) Employee compensation                                         (84)      (106) Other                                                         (122)     (100) Cash used in operating activities                             (368)     (196) Investing activities Capital expenditures                                          (265)     (180) Proceeds from sale of assets                                  11        3 Investment in related businesses                              (36)      — Other                                                         —         (38) Cash used in investing activities                             (290)     (215) Financing activities Proceeds from borrowings of long-term debt                    818       499 Repayments of long-term debt                                  (504)     (505) Dividends paid                                                (107)     (89) Net repayments of short-term borrowings                       (6)       1 Common stock issued                                           28        63 Purchase of treasury stock                                    —         (30) Purchase of noncontrolling interest shares                    (5)       — Other                                                         (9)       (8) Cash provided by (used in) financing activities               215       (69) Effect of exchange rate changes on cash and equivalents       8         (18) Decrease in cash and equivalents                              (435)     (498) Cash and equivalents at beginning of period                   1,380     1,168 Cash and equivalents at end of period                         $  945    $  670      SUPPLEMENTAL INFORMATION - CONSOLIDATED FINANCIAL STATEMENTS RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (Millions of dollars except per share data) (Unaudited)  We supplement the reporting of our financial information determined under U.S. generally accepted accounting principles (GAAP) with certain non-GAAP financial measures, some of which we refer to as "ongoing business" measures, including ongoing business operating profit, ongoing business operating margin, ongoing business earnings (loss) before income taxes, ongoing business earnings per diluted share, ongoing business segment operating profit, ongoing business segment operating margin, sales excluding foreign currency and BEFIEX, and free cash flow. Ongoing business measures exclude items that may not be indicative of, or are unrelated to, results from our ongoing business operations and provide a better baseline for analyzing trends in our underlying businesses. Sales excluding foreign currency and BEFIEX is calculated by translating the current period net sales excluding BEFIEX, in functional currency, to U.S. dollars using the prior-year period's exchange rate compared to the prior-year period net sales excluding BEFIEX. Management believes that sales excluding foreign currency and BEFIEX provides stockholders with a clearer basis to assess our results over time. Management believes that free cash flow provides investors and stockholders with a relevant measure of liquidity and a useful basis for assessing the company's ability to fund its activities and obligations. We believe that these non-GAAP measures provide meaningful information to assist investors and stockholders in understanding our financial results and assessing our prospects for future performance. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names. These ongoing business financial measures should not be considered in isolation or as a substitute for reported operating profit, earnings (loss) before income taxes, net earnings per diluted share available to Whirlpool, reported operating profit by segment, net sales, and cash provided by (used in) operating activities, the most directly comparable GAAP financial measures. These non-GAAP financial measures reflect an additional way of viewing aspects of our operations that, when viewed with our GAAP results and the following reconciliations to corresponding GAAP financial measures, provide a more complete understanding of our business. We strongly encourage investors and stockholders to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure.    Ongoing Business Operating Profit, Ongoing Business Earnings Before Income Taxes and Ongoing Business Earnings Per Diluted Share  The reconciliation provided below reconciles the non-GAAP financial measures ongoing business operating profit, ongoing business earnings before income taxes and ongoing business earnings per diluted share, with the most directly comparable GAAP financial measures, operating profit, earnings before income taxes and net earnings per diluted share available to Whirlpool, for the three months ended June30, 2014. Ongoing business operating margin is calculated by dividing ongoing business operating profit by net sales.                                     Three Months Ended                                    June 30, 2014                                    Operating  Earnings       Earnings per                                    Profit     Before Income  Diluted Share                                               Taxes Reported GAAP Measure              $   291    $     235      $     2.25 Restructuring Expense^(a)          34         34             0.33 Investment Expense^(b)             5          13             0.12 Antitrust Resolutions^(c)          —          1              0.01 Normalized Tax Rate Adjustment^(d) —          —              (0.09) Ongoing Business Measure           $   330    $     283      $     2.62    Ongoing Business Operating Profit, Ongoing Business Earnings Before Income Taxes and Ongoing Business Earnings Per Diluted Share  The reconciliation provided below reconciles the non-GAAP financial measures ongoing business operating profit, ongoing business earnings before income taxes and ongoing business earnings per diluted share, with the most directly comparable GAAP financial measures, operating profit, earnings before income taxes and net earnings per diluted share available to Whirlpool, for the three months ended June30, 2013. Ongoing business operating margin is calculated by dividing ongoing business operating profit by net sales excluding BEFIEX.                                      Three Months Ended                                     June 30, 2013                                     Operating  Earnings      Earnings per                                     Profit     Before Income  Diluted Share                                                Taxes Reported GAAP Measure               $   328    $     245      $     2.44 Restructuring Expense^(a)           31         31             0.29 Brazilian (BEFIEX) Tax Credits^(e)  (24)       (24)           (0.29) Investment Expense^(b)              —          10             0.10 Antitrust and Contract              —          2              0.01 Resolutions^(c) U.S. Energy Tax Credits^(f)         —          —              (0.20) Normalized Tax Rate Adjustment^(d)  —          —              0.02 Ongoing Business Measure            $   335    $     264      $     2.37    Ongoing Business Segment Operating Profit  The reconciliation provided below reconciles the non-GAAP financial measure ongoing business segment operating profit with the most directly comparable GAAP financial measure, segment operating profit, for the three months ended June30, 2014. Ongoing business segment operating margin is calculated by dividing ongoing business segment operating profit by segment net sales.                            Three Months Ended                           June 30, 2014                                                                  Ongoing                           Segment    Restructuring  Investment   Business                           Operating  Expense^(a)    Expense^(b)  Segment                           Profit                                 Operating                                                                  Profit North America             $   285    $      —       $     —      $   285 Latin America             87         —              —            87 EMEA                      2          —              —            2 Asia                      4          —              —            4 Other/Eliminations        (87)       34             5            (48) Total Whirlpool           $   291    $      34      $     5      $   330 Corporation  The reconciliation provided below reconciles the non-GAAP financial measure ongoing business segment operating profit (loss) with the most directly comparable GAAP financial measure, reported segment operating profit (loss), for the three months ended June30, 2013. Ongoing business segment operating margin is calculated by dividing ongoing business segment operating profit by segment net sales excluding BEFIEX.                          Three Months Ended                         June 30, 2013                                                                  Ongoing                         Segment                    Brazilian     Business                         Operating   Restructuring  (BEFIEX) Tax  Segment                         Profit      Expense^(a)    Credits^(b)   Operating                         (Loss)                                   Profit                                                                  (Loss) North America           $    262    $      —       $    —        $   262 Latin America           135         —              (24)          111 EMEA                    (6)         —              —             (6) Asia                    14          —              —             14 Other/Eliminations      (77)        31             —             (46) Total Whirlpool         $    328    $      31      $    (24)     $   335 Corporation    Footnotes:           During the second quarters of 2014 and 2013, we recorded a.  restructuring charges of $34 million and $31 million, respectively.           The earnings per diluted share impacts are calculated based on           income tax impacts of $8 million and $7 million, respectively.           During the second quarters of 2014 and 2013, we recognized           investment expenses of $13 million and $10 million, respectively, b.  primarily related to the pending acquisitions of majority interests           in Hefei Sanyo and, specifically for 2014, Indesit. The earnings per           diluted share impactsare calculated based on income tax impacts of           $3 million and $2 million, respectively.           During the second quarter of 2014, we recognized expenses of           approximately $1 million related to antitrust resolutions. The           earnings per diluted share impact is calculated based on an income c.   tax impact of $0 million. During the second quarter of 2013 we           recognized expenses of $2 million related to antitrust and contract           resolutions. The earnings per diluted share impact is calculated           based on an income tax impact of $0 million.           During the second quarters of 2014 and 2013, we made adjustments to d.     ongoing business diluted EPS to reconcile specific items reported to           a full-year effective tax rate of 24%.           During the second quarter of 2013, we monetized Brazilian (BEFIEX) e.      tax credits of $24 million. The earnings per diluted share impact is           calculated based on an income tax impact of $0 million.           In the second quarter of 2013, we recognized $16 million of U.S. f. energy tax credits. The earnings per diluted share impact is           calculated based on an income tax benefit of $16 million.  Free Cash Flow  As defined by the company, free cash flow is cash provided by (used in) operating activities after capital expenditures and proceeds from the sale of assets and businesses. The reconciliation provided below reconciles six-month actual 2014 and 2013 and projected full-year free cash flow with cash provided by (used in) operating activities, the most directly comparable GAAP financial measure.                                            Six Months Ended                                           June 30, (millions of dollars)                     2014     2013      2014 Outlook Cash Provided by (Used In) Operating      $ (368)  $ (196)   $ 1,225 – $ 1,325 Activities Capital Expenditures and Proceeds from      (254)    (177)     (625) –   (675) Sale of Assets/Businesses Free Cash Flow                            $ (622)  $ (373)   $ 600   – $ 650    Logo- http://photos.prnewswire.com/prnh/20040202/DETU004LOGO  SOURCE Whirlpool Corporation  Website: http://www.whirlpoolcorp.com Contact: Whirlpool Corporation: Media: Whirlpool Corporation Press Office, 269/923-7405, Media@Whirlpool.com; or Financial: Christopher Conley, 269/923-2641, Investor_Relations@Whirlpool.com  
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