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WHR To Record $425M Charge Ahead of Quarterly Earnings Report

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Even before this week’s expected announcements of fourth quarter financial results, Whirlpool Corporation has filed a statement with the U.S. Securities and Exchange Commission suggesting that the Benton Harbor-based appliance giant will record a one-time, non-cash charge of approximately $425-million to tax expense as a result of the impact of President Trump’s Tax Cuts & Jobs Act back on December 22, 2017.

In an 8-K filing with the SEC on Friday, the company says the President’s tax act, which enacted various changes to the U.S. corporate tax law, include not only a reduced corporate income tax rate from 35-percent to 21-percent effective this year, but also a one-time “deemed repatriation” tax on earnings in non-U.S. jurisdictions. Whirlpool says, “Prior to the enactment of the Tax Cuts & Jobs Act, the company’s normalized effective tax rate in 2017 would have been approximately 15-percent.”

The SEC filing goes on to say, “Whirlpool Corporation estimates that for the fourth quarter of 2017 it will record a U.S. GAAP one-time, non-cash charge of approximately $425 million to tax expense, as a result of the impact of the reduced tax rate on the valuations of the company’s deferred tax assets, the one-time deemed repatriation tax and other related items.”

Additionally, the company suggests, “The charge recorded in the fourth quarter of 2017 represents the company’s best estimate of the impact of the Tax Cuts and Jobs Act. The company will continue to evaluate the interpretations and assumptions made, guidance that may be issued and actions the company may take as a result of the Tax Cuts and Jobs Act, which could materially change this estimate in 2018 as new information becomes available.”

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Meanwhile, Whirlpool execs are preparing for this week’s release of fourth-quarter financial results at 4:30pm on Wednesday, January 24, 2018. Company officals will then hold a conference call to discuss its performance with the investment community at 8am on Thursday, January 25, 2018.

The conference call will be webcast live on the Company’s web site at www.whirlpoolcorp.com and may be accessed by clicking on the “Investors” tab located at the top of the page. To listen to the live webcast, participants should visit the site at least 15 minutes prior to the conference call to download any required streaming media software. Key financial statistics, the earnings presentation and an archived recording of the conference call will be available on the Company’s web site for at least 30 days.