v3.25.4
INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Income Before Income Tax, Domestic and Foreign
The following table(s) summarizes the difference between an income tax expense/(benefit) at the United States statutory rate of 21% and the income tax expense/(benefit) at effective worldwide tax rates for the respective periods:
Millions of dollars202520242023
Earnings (loss) before income taxes
United States$(53)$(294)$9 
Foreign569 107 584 
Earnings (loss) before income taxes$516 $(188)$593 
Schedule of Effective Income Tax Rate Reconciliation
We adopted ASU 2023-09, Improvements To Income Tax Disclosures, on a prospective basis beginning with the year ended December 31, 2025. The following table reconciles the United States statutory tax amount and rate of 21% to our worldwide tax expense (benefit) and rate for the year ended December 31, 2025.

2025
Millions of dollarsAmountPercent
U.S. federal statutory tax rate$108 21.00 %
State and local income taxes, net of federal income tax effect(1)
59 11.43 %
Foreign tax effects
Argentina
Foreign tax rate differential(8)(1.55)%
Valuation allowance21 4.07 %
Brazil
Foreign tax rate differential26 5.04 %
Non-Taxable VAT Reimbursement(27)(5.23)%
Canada
Foreign accrual property income (FAPI)7 1.36 %
Withholding Tax16 3.10 %
Other(1)(0.19)%
Luxembourg
Nondeductible Interest5 0.97 %
Other5 0.97 %
Mauritius
Divestiture tax impact(39)(7.56)%
Foreign tax rate differential(16)(3.10)%
Mexico
Annual corporate inflation adjustment(8)(1.55)%
Foreign currency impacts(20)(3.88)%
Foreign tax rate differential12 2.33 %
Other1 0.19 %
Netherlands
Nondeductible Interest8 1.55 %
Other(2)(0.39)%
Other foreign jurisdictions21 4.07 %
    
2025
Millions of dollarsAmountPercent
Effect of cross-border tax laws
Foreign branch income53 10.27 %
Other(4)(0.78)%
Changes in valuation allowances19 3.68 %
Tax credits
R&D tax credits(21)(4.07)%
Nontaxable or nondeductible items8 1.55 %
Changes in unrecognizable tax benefits(131)(25.39)%
Other adjustments
Legal Entity restructuring tax impact48 9.30 %
Other2 0.32 %
Effective income tax rate$142 27.52 %
(1) The states that contribute to the majority (greater than 50%) of the tax effect in this category includes Pennsylvania, California, & New Jersey for 2025.
The reconciliation of taxes at the United States statutory tax rate of 21% to our worldwide tax expense (benefit) for the years ended December 31, 2024 and 2023 in accordance with the guidance prior to the adoption of ASU 2023-09 was as follows:
Millions of dollars20242023
Income tax (benefit) expense computed at United States statutory rate$(39)$125 
U.S. government tax incentives(19)(20)
Foreign government tax incentives, including BEFIEX(31)(30)
Foreign tax rate differential26 41 
U.S. foreign tax credits(65)(43)
Valuation allowances395 78 
State and local taxes, net of federal tax benefit(56)(43)
Foreign withholding taxes16 13 
U.S. tax on foreign dividends and subpart F income(57)36 
Settlement of global tax audits32 43 
Changes in enacted tax rates10 1 
Nondeductible loss on sale56 5 
Nondeductible fines and penalties— 18 
Legal entity debt restructuring(3)— 
Divestiture tax impact239 — 
Legal entity restructuring tax impact(721)(170)
Expiration/Forfeiture of net operating losses143 5 
Foreign currency impacts33 (23)
Non-deductible expenses46 31 
Other items, net5 10 
Income tax computed at effective worldwide tax rates$10 $77 
Schedule of Income Tax (Benefit) Provision
The following table summarizes our income tax (benefit) provision for 2025, 2024 and 2023:
 202520242023
Millions of dollarsCurrentDeferredCurrentDeferredCurrentDeferred
United States$(91)$43 $(6)$(437)$(27)$(212)
Foreign103 12 184 393 197 155 
State and local(1)76 9 (133)(3)(33)
$11 $131 $187 $(177)$167 $(90)
Total income tax expense$142 $10 $77 
Schedule of Amount of Income Taxes Paid (Refunded)
The amounts of cash taxes paid by (refunded to) Whirlpool are as follows:
Millions of dollars2025
Federal$(1)
State(9)
Foreign
Brazil28 
Canada13 
India11 
Mexico77 
All other foreign17 
Total Income taxes, net of amounts refunded$136 
Schedule of Significant Components of Deferred Tax Liabilities and Assets The following table summarizes the significant components of our deferred tax liabilities and assets at December 31, 2025 and 2024:
Millions of dollars20252024
Deferred tax liabilities
Intangibles$252 $249 
Property, net124 126 
Right of use assets171 171 
Other14 59 
Total deferred tax liabilities$561 $605 
Deferred tax assets
U.S. general business credit carryforwards, including Energy Tax Credits$428 $363 
Lease liabilities181 179 
Pensions25 33 
Loss carryforwards884 911 
Postretirement obligations26 28 
Foreign tax credit carryforwards221 151 
Research and development capitalization361 367 
Employee payroll and benefits31 53 
Accrued expenses96 82 
Product warranty accrual40 41 
Receivable and inventory allowances48 41 
Disallowed business interest carryforwards182 164 
Outside basis differences182 339 
Other128 153 
Total deferred tax assets$2,833 $2,905 
Valuation allowances for deferred tax assets(960)(885)
Deferred tax assets, net of valuation allowances$1,873 $2,020 
Net deferred tax assets$1,312 $1,415 
Schedule of Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits
The following table represents a reconciliation of the beginning and ending amount of unrecognized tax benefits that if recognized would impact the effective tax rate, excluding federal benefits of state and local tax positions, and interest and penalties:
Millions of dollars202520242023
Balance, January 1$349 $380 $589 
Additions for tax positions of the current year8 10 13 
Additions for tax positions of prior years8 14 22 
Reductions for tax positions of prior years(2)(52)(56)
Settlements during the period (1)
(251)(3)(188)
Lapses of applicable statute of limitation— — — 
Balance, December 31$112 $349 $380 
(1) During the fourth quarter of both 2023 and 2025, the Company resolved a number of disputed tax positions with the U.S. and other tax authorities. The Company had previously recorded reserves for the risk associated with these tax positions, and the settlement of these matters resulted in a reduction in the Company's unrecognized tax benefits, which is shown in the table above.