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Divestitures | 9 Months Ended
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Sep. 30, 2021
Discontinued Operations and Disposal Groups [Abstract] |
Divestitures | DIVESTITURES Whirlpool China Divestment On August 25, 2020, Guangdong Galanz Household Appliances Manufacturing Co., Ltd. (“Galanz”) announced its intention to pursue a tender offer for majority control of Whirlpool China Co. Ltd. (“Whirlpool China”), a majority-owned subsidiary of the Company with shares listed on the Shanghai Stock Exchange. In its announcement, Galanz noted that it expected to offer RMB 5.23 per share (approximately $0.76 per share as of August 25, 2020) to obtain no less than 51% and no more than 61% of Whirlpool China’s outstanding shares. This share price offer was equal to the daily weighted average trading price for Whirlpool China stock over the 30 trading days prior to the announcement. In the first quarter of 2021, our Board of Directors approved the sale of Whirlpool China, which was reported within our Asia reportable segment and met the criteria for held for sale accounting during the first quarter of 2021. The operations of Whirlpool China did not meet the criteria to be presented as discontinued operations. On May 6, 2021, the tender offer was completed and the share transfer was executed for a consideration of RMB 1.25 billion (approximately $193 million on the date of completion). Subsequent to the share transfer, the Company holds an equity interest of approximately 20% in Whirlpool China. In connection with the sale, we recorded a gain, net of transaction and other costs, of $284 million during the second quarter of 2021. The gain on sale is equal to the difference between the total transaction amount and carrying value of Whirlpool China, which includes $74 million of cumulative foreign currency translation adjustments and $80 million of goodwill allocated to the disposal group. The total transaction amount includes $193 million of consideration received from the sale of Whirlpool China shares, $214 million for the fair value of the interest retained and the $783 million carrying value of the equity interest in Whirlpool China. The fair value of the interest retained was based on the ownership amount and the stock price of Whirlpool China as of the closing date of the transaction and we account for the remaining equity interest under the equity method accounting as of June 30, 2021. Earnings before income taxes prior to the share transfer of Whirlpool China were not material to the Company for the period presented. The following table presents the carrying amounts of the major classes of Whirlpool China’s assets and liabilities as of September 30, 2021 and December 31, 2020.
Millions of dollars |  |  |  |  |  | September 30, |  | December 31,
|  |  |  |  |  | 2021 |  | 2020
Cash and cash equivalents |  |  |  |  |  | $ | — |  |  | $ | 324 |
Accounts receivable, net of allowance of $0 and $11, respectively |  |  |  |  |  | — |  |  | 85 |
Inventories |  |  |  |  |  | — |  |  | 98 |
Prepaid and other current assets |  |  |  |  |  | — |  |  | 93 |
Property, net of accumulated depreciation of $0 and $189, respectively |  |  |  |  |  | — |  |  | 309 |
Other noncurrent assets (1) |  |  |  |  |  | — |  |  | 283 |
Total assets |  |  |  |  |  | $ | — |  |  | $ | 1,192 |
Accounts payable |  |  |  |  |  | $ | — |  |  | $ | 216 |
Accrued expenses |  |  |  |  |  | — |  |  | 53 |
Other current liabilities |  |  |  |  |  | — |  |  | 254 |
Other noncurrent liabilities |  |  |  |  |  | — |  |  | 7 |
Total liabilities |  |  |  |  |  | $ | — |  |  | $ | 530 |
(1) Other non current assets include allocated goodwill of $80 million. Turkey Subsidiary Divestment On May 17, 2021, we entered into a share transfer agreement with Arçelik A.Ş. ("Arçelik") to sell our Turkish subsidiary for a cash purchase price of €78 million (approximately $93 million on June, 30 2021), subject to customary adjustments at closing. On June 30, 2021, we completed the sale of the Turkish subsidiary. In connection with the sale, we recorded a loss on disposal of $164 million in the second quarter of 2021. The loss includes a charge of $40 million for the write-down of the assets of the disposal group to fair value and allocated goodwill, and $124 million of cumulative foreign currency translation adjustments included in the carrying amount of the disposal group. During the third quarter of 2021, amounts for working capital and other customary post-closing adjustments were finalized and an additional $13 million loss related to the sale of business was recorded. The Turkish subsidiary, whose primary asset was a manufacturing plant, was reported within our EMEA reportable segment. The operations of Turkey did not meet the criteria to be presented as discontinued operations. Earnings before income taxes for Turkey were not material for the periods presented. For additional information see Note 10 to the Consolidated Condensed Financial Statements.

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- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -URI http://asc.fasb.org/topic&trid=2155823 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=2122178 + Details
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