WHIRLPOOL CORP DE
For the period ended Sep 30, 2024. Filed Oct 24, 2024.
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Sep 30, 2024 · Filed Oct 24, 2024
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Restructuring Charges
(11)RESTRUCTURING CHARGES
We periodically take action to improve operating efficiencies, typically in connection with business acquisitions or changes in the economic environment. Our footprint and headcount reductions and organizational integration actions relate to discrete, unique restructuring events, primarily reflected in the following plans.
In March 2024, the Company committed to workforce reduction plans in the United States and globally, in an effort to reduce complexity and simplify our organizational model after the European major domestic appliance transaction. The workforce reduction plans included involuntary severance actions as of the end of the first quarter of 2024. Total expected costs for these actions is $23 million, of which we incurred $14 million in employee termination costs and $9 million other associated costs within the first quarter. All of these costs will result in cash settlements primarily in 2024.
During the second quarter of 2024, the Company evaluated additional restructuring actions as part of the Company's organizational simplification efforts. Total costs for these actions were $58 million, of which $8 million was recorded during the third quarter of 2024. These costs were primarily for employee termination costs.
The following table summarizes the changes to our restructuring liability during the nine months ended September 30, 2024:
| Millions of Dollars | December 31, 2023 | Charge to Earnings | Cash Paid | Non-Cash and Other | September 30, 2024 |
|---|---|---|---|---|---|
| Employee Termination | $10 | $66 | $(59) | $(7) | $10 |
| Other exit costs | — | 15 | (11) | — | 4 |
| Total | $10 | $81 | $(70) | $(7) | $14 |
The following table summarizes the restructuring charges by operating segment and Corporate for the periods presented:
| Millions of dollars · Three Months Ended September 30, · Nine Months Ended September 30, | ||||
|---|---|---|---|---|
| 2024 · 2023 · 2024 · 2023 | ||||
| MDA North America | $1 | $— | $29 | $— |
| MDA Latin America | 4 | — | 25 | — |
| MDA Asia | — | — | 6 | — |
| SDA Global | 1 | — | 5 | — |
| Corporate/Other | 2 | 5 | 16 | 14 |
| Total | $8 | $5 | $81 | $14 |
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