Whirlpool Corporation 10-K (2022-02-10)

For the fiscal year ended December 31, 2021

 

 

 

 

 

Whirlpool Corporation ("Whirlpool"), committed to being the best global kitchen and laundry company, in constant pursuit of improving life at home, was incorporated in 1955 under the laws of Delaware and was founded in 1911.

 

incorporated : formed into a business company with legal status

 

 

 

Whirlpool manufactures products in 10 countries and markets products in nearly every country around the world. We have received worldwide recognition for accomplishments in a variety of business and social efforts, including leadership, diversity, innovative product design, business ethics, social responsibility and community involvement.

 

 

 

We conduct our business through four operating segments, which we define based on geography. Whirlpool's operating segments consist of North America; Europe, Middle East and Africa ("EMEA"); Latin America and Asia. Whirlpool had approximately $22 billion in annual net sales and 69,000 employees in 2021.

 

net sales : the total value of a company's sales after amounts for costs such as returned, damaged, or missing goods, and any price reductions, taxes, etc. have been subtracted

 

 

 

As used herein, and except where the context otherwise requires, "Whirlpool," "the Company," "we," "us," and "our" refer to Whirlpool Corporation and its consolidated subsidiaries.

 

herein : in this place, document, statement or fact

 

 

 

Our Strategic Architecture

 

Our strategic architecture is the foundational component that drives our shareholder value creation and strategy. Below are the key components of our strategic architecture.

 

 

 

 

Unique Global Position

 

Whirlpool Corporation is committed to delivering significant, long-term value to both our consumers and our shareholders. For consumers, we deliver value through innovative, high-quality products that solve everyday problems while saving time, energy and water.

 

 

 

We have an agile and resilient business model which enables us to succeed in any operating environment. Our proven value creating approach is enabled by our unique global position: global leading scale, accelerating our pace of innovation, best brand portfolio and best cost position.

 

agile : able to move quickly and easily / able to think quickly and in an intelligent way / (business) used to describe a way of managing projects in which work is divided into a series of short tasks, with regular breaks to review the work and adapt the plans 

 

resilient : able to recover quickly after something unpleasant such as shock, injury, etc. / (of a substance) returning to its original shape after being bent, stretched, or pressed

 

succeed : to achieve something that you have been trying to do or get; to have the result or effect that was intended / to be successful in your job, earning money, power, respect, etc.

 

 

 

 

 

 

Global Leading Scale

 

We are committed to being the best global kitchen and laundry company.

 

Our global footprint includes a balance of developed countries and emerging markets, including a leading market share position in many of the key countries in which we operate. We believe we are well positioned to continue to convert demand into profitable growth.

 

convert : to change or make something change from one form, purpose, system, etc. to another / to be able to be changed from one form, purpose, or system to another

 

 

 

Accelerating Our Pace of Innovation

 

Whirlpool Corporation has been responsible for a number of first-to-market innovations. These include the first electric wringer washer in 1911, the first residential stand mixer in 1919, the first countertop microwave in 1967, the first energy and water efficient top-load washer in 1998 and the first top-load washer removable agitator in 2021, among others.

 

wringer : a machine with two rollers used especially in the past for pressing the water out of clothes that had been washed 

 

agitator : a person who tries to persuade people to take part in political protest

 

 

 

In 2020, the KitchenAid brand introduced its largest-capacity third rack dishwasher designed to help families load more dishes and run the product less, promoting water and energy savings. Our holistic innovation approach, using Design for Sustainability principles in our global platforms, connects product sustainability directly with our business goals.

 

holistic : considering a whole thing or being to be more than a collection of parts / (medical) treating the whole person rather than just the symptoms (= effects) of a disease

 

 

 

We are proud of our track record of innovation and our progress on sustainable innovation with eco-efficient products that reduce environmental impacts.

 

 

 

We are committed to continue innovating for a new generation of consumers. Our world-class innovation pipeline has accelerated over the last few years, driven by consistent innovation and a passionate culture of employees focused on bringing new technologies to market.

 

 

 

In 2021, we launched more than 100 new products throughout the world, demonstrating our commitment to innovation, including our new premium top load washer in North America featuring the industry's first removable agitator which was named one of the "100 greatest inventions" of 2021 by Popular Science, new iF Design Award winner built-in steam oven in EMEA, and multiple new KitchenAid small appliances including espresso makers and stand mixer attachments. We also expanded our footprint in consumables with new scents of Swash detergent.

 

consumable : goods that are intended to be used fairly quickly and then replaced

 

scent : the pleasant smell that something has / the smell that a person or an animal leaves behind and that other animals such as dogs can follow

 

detergent : a liquid or powder that helps remove dirt, for example from clothes or dishes

 

 

 

As the shift to digital continues, consumers continue to desire connected appliances which fit seamlessly into the larger home ecosystem. As a leading connected appliance manufacturer, we are excited to bring new connected products and technologies to market, including voice control with a compatible smart home assistant, food recognition and automatic laundry detergent replenishment.

 

compatible : (of machines, especially computers, or software) able to be used together / (of ideas, methods or things) able to exist or be used together without causing problems

 

replenishment : the act of making something full again by replacing what has been used

 

 

 

Additionally, in 2021, we enabled an over-the-air update to qualified connected appliances, delighting the consumer with added Air Frying capabilities in their existing products. Whether developed internally or with one of our many collaborators, we believe these digitally-enabled products and services will increasingly enhance the appliance experience for our consumers, as demonstrated by our highly rated mobile apps.

 

delight : to give somebody a lot of pleasure and joy

 

 

 

Whirlpool manufactures and markets a full line of major home appliances and related products. Our principal products are laundry appliances (including commercial laundry appliances), refrigerators and freezers, cooking appliances, and dishwashers.

 

 

 

Additionally, the Company has a robust portfolio of small domestic appliances, including the KitchenAid stand mixer. Prior to the divestiture of our Embraco business on July 1, 2019, we also produced compressors for refrigeration systems. The following chart provides the percentage of net sales for each of our product categories which accounted for 10% or more of our consolidated net sales over the last three years:

 

robust : strong and healthy / strong; able to survive being used a lot and not likely to break

 

divestiture : the act of selling the shares you have bought in a company or of taking money away from where you have invested it

 

 

 

 

 

Best Brand Portfolio

 

We have the best brand portfolio in the industry, including seven brands with more than $1 billion in revenue.

 

 

 

 

We aim to position these desirable brands across many consumer segments. Our sales are led by our global brands Whirlpool and KitchenAid. 

 

 

 

Whirlpool is trusted throughout the world as a brand that delivers innovative care daily. Our KitchenAid brand brings a combination of innovation and design that inspires and fuels the passion of chefs, bakers and kitchen enthusiasts worldwide. These two brands are the backbone of our strategy to offer differentiated products that provide exceptional performance and desirable features while remaining affordable to consumers.

 

enthusiast : a person who is very interested in something and spends a lot of time doing it / a person who approves of something and shows enthusiasm for it

 

 

 

Additionally, we have a number of strong regional and local brands, including Maytag, Consul, Brastemp, Amana, Bauknecht, JennAir, Indesit and Yummly.

 

 

 

These brands add to our impressive depth and breadth of kitchen and laundry product offerings and help us provide products that are tailored to local consumer needs and preferences. Our best brand portfolio in the industry, paired with our robust investment in research and development and consumer insights, positions us well to meet trends in consumer preferences and market demand.

 

depth : the distance from the top or surface to the bottom of something; a particular distance down from the surface of something / the distance from the front to the back of something / the strength and power of feelings

 

breadth : the distance or measurement from one side to the other; how broad or wide something is / a wide range (of knowledge, interests, etc.)

 

the length and breadth of : in or to all parts of a place

 

tailored : (of clothes) made to fit well or closely / made for a particular person or purpose

 

 

 

(the rest omitted)