XML 41 R21.htm IDEA: XBRL DOCUMENT
v3.22.2.2

GOODWILL AND OTHER INTANGIBLES | 9 Months Ended
--- | ---
Sep. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract] |
GOODWILL AND OTHER INTANGIBLES | GOODWILL AND OTHER INTANGIBLES Goodwill The following table summarizes goodwill attributable to our reporting units for the periods presented:
Millions of dollars | North America | EMEA | Latin America | Asia | Total Whirlpool
Beginning balance December 31, 2021 | $ | 1,695 |  | $ | 296 |  | $ | 33 |  | $ | 461 |  | $ | 2,485 |
Impairment | — |  | (278) |  | — |  | — |  | (278) |
Currency translation adjustment | (3) |  | (18) |  | — |  | (9) |  | (30) |
Ending net balance September 30, 2022 | $ | 1,692 |  | $ | — |  | $ | 33 |  | $ | 452 |  | $ | 2,177 |
For the three months ended September 30, 2022, there no indicators of goodwill impairment for any of our reporting units based on our qualitative assessment. During the second quarter of 2022, in connection with the preparation of our Consolidated Condensed Financial Statements, we identified indicators of goodwill impairment for our EMEA reporting unit, which required us to complete an interim impairment assessment. The primary indicators of impairment were the adverse impacts from the continuation of the Russia and Ukraine conflict, including the impact on demand, the pending divestiture of our Russian operations and other ongoing adverse macroeconomic impacts such as raw material inflation, supply chain disruption and unfavorable demand. As a result of these factors, the operating results for the three-months ended June 30, 2022 were significantly lower than expected and our expectations of attaining our long term plans for the region have been delayed. In performing our quantitative assessment of goodwill, we estimated the reporting unit's fair value under an income approach using a discounted cash flow model. The income approach used the reporting unit's projections of estimated operating results and cash flows that were discounted using a market participant discount rate based on the weighted-average cost of capital. The main assumptions supporting the cash flow projections include revenue growth, EBIT margins and the discount rate. The financial projections reflect management's best estimate of economic and market conditions over the projected period including forecasted revenue growth, EBIT margins, tax rate, capital expenditures, depreciation and amortization, changes in working capital requirements and the terminal growth rate. Based on our interim quantitative impairment assessment as of June 30, 2022, the carrying value of the EMEA reporting unit exceeded its fair value and we recorded a goodwill impairment charge for the full amount of the goodwill's carrying value of $278 million during the second quarter of 2022. See Note 10 and 15 to the Consolidated Condensed Financial Statements for additional information. Other Intangible Assets The following table summarizes other intangible assets for the periods presented:
| September 30, 2022 |  | December 31, 2021
Millions of dollars | Gross Carrying Amount | Accumulated Amortization | Net |  | Gross Carrying Amount | Accumulated Amortization | Net
Other intangible assets, finite lives |  |  |  |  |  |  |
Customer relationships (1) | $ | 424 |  | $ | (341) |  | $ | 83 |  |  | $ | 443 |  | $ | (334) |  | $ | 109 |
Patents and other (2) | 182 |  | (179) |  | 3 |  |  | 191 | (188) | 3
Total other intangible assets, finite lives | $ | 606 |  | $ | (520) |  | $ | 86 |  |  | $ | 634 |  | $ | (522) |  | $ | 112 |
Trademarks, indefinite lives (3) | 1,714 |  | — |  | 1,714 |  |  | 1,869 | — | 1,869
Total other intangible assets | $ | 2,320 |  | $ | (520) |  | $ | 1,800 |  |  | $ | 2,503 |  | $ | (522) |  | $ | 1,981 |
(1) Customer relationships have an estimated useful life of 5 to 19 years. (2) Patents and other intangibles have an estimated useful life of 3 to 43 years. (3) Includes Indesit and Hotpoint* impairment loss of $70 million and $36 million, respectively, recorded during the period ended June 30, 2022. For the three months ended September 30, 2022, there were no indicators of impairment associated with other intangible assets based on our qualitative assessment. Similarly to the review of EMEA reporting unit, during the second quarter of 2022 and in connection with the preparation of our Consolidated Condensed Financial Statements, we identified indicators of impairment associated with other intangible assets in our EMEA reporting unit, which required us to complete an interim impairment assessment. The primary indicators of impairment were the same as those identified for EMEA reporting unit and resulted in the actual revenues for the three-months ended June 30, 2022 being significantly lower than forecasted for Indesit and Hotpoint* trademarks. In performing our quantitative assessment of other intangible assets, primarily trademarks, we estimate the fair value using the relief-from-royalty method which requires assumptions related to projected revenues from our long-range plans; assumed royalty rates that could be payable if we did not own the trademark; and a discount rate using a market-based weighted-average cost of capital. Based on our interim quantitative impairment assessment as of June 30, 2022, the carrying value of certain other intangible assets, including Indesit and Hotpoint*, exceeded their fair value, and we recorded an impairment charge of $106 million during the second quarter of 2022. See Note 10 to the Consolidated Condensed Financial Statements for additional information. The estimates of future cash flows used in determining the fair value of goodwill and intangible assets involve significant management judgment and are based upon assumptions about expected future operating performance, economic conditions, market conditions and cost of capital. Inherent in estimating the future cash flows are uncertainties beyond our control, such as changes in capital markets. The actual cash flows could differ materially from management's estimates due to changes in business conditions, operating performance and economic conditions. *Whirlpool ownership of the Hotpoint brand in the EMEA and Asia Pacific regions is not affiliated with the Hotpoint brand sold in the Americas.

X
- References No definition available. + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI https://asc.fasb.org/topic&trid=2144416 + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration