WHIRLPOOL CORP DE

(12)INCOME TAXES

Income tax expense was $76 million for the three months ended March 31, 2024, compared to income tax expense of $68 million for the same period of 2023. The increase in tax expense is primarily due to the sale of minority shares in Whirlpool of India and related capital gains, and legal entity restructuring tax impacts.

The following table summarizes the difference between income tax expense (benefit) at the U.S. statutory rate of 21% and the income tax expense (benefit) at effective worldwide tax rates for the respective periods:

At the end of each interim period, we estimate the effective tax rate expected to be applicable for the full fiscal year and the impact of discrete items, if any, and adjust the quarterly rate as necessary.

Subsequent Events

On April 1, 2024, the Company completed its transaction with Arcelik related to its European and MENA businesses. The disposal group has been classified as held for sale starting from the fourth quarter of 2022, resulting in a cumulative loss from disposal of businesses of approximately $1.9 billion through the first quarter of 2024. For income tax purposes, some of these losses were not realizable by the Company until the transaction closed in the second quarter of 2024. In addition to income tax recorded to date, the Company estimates that it will record additional deferred tax assets of between $100 and $300 million, net of applicable reserves and valuation allowances, in the second quarter of 2024, as a result of closing the transaction with Arcelik. For additional information, see Note 14 to the Consolidated Condensed Financial Statements.