Income Statement

Beginner level

The income statement presents information on the financial results of a company’s business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

Sherwin-Williams Co., consolidated income statement

US$ in thousands

12 months ended	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Net sales	17,900,800	17,534,493	14,983,788	11,855,602	11,339,304
Cost of goods sold	(9,864,700)	(10,115,931)	(8,202,577)	(5,932,851)	(5,779,691)
Gross profit	8,036,100	7,418,562	6,781,211	5,922,751	5,559,613
Selling, general and administrative expenses	(5,274,900)	(5,033,780)	(4,785,415)	(4,134,517)	(3,885,668)
Provisions for environmental matters, net	(23,000)	(176,297)	(15,443)	(42,932)	(31,071)
Gain (loss) on sale or disposition of assets	(16,100)	(12,825)	(5,422)	30,564	803
Other general expense, net	(39,100)	(189,122)	(20,865)	(12,368)	(30,268)
Amortization	(312,800)	(318,112)	(206,764)	(25,404)	(28,237)
Impairment of trademarks	(122,100)	—	(2,022)	(10,688)	—
Operating income	2,287,200	1,877,548	1,766,145	1,739,774	1,615,440
Interest expense	(349,300)	(366,734)	(263,471)	(154,088)	(61,791)
Interest and net investment income	25,900	5,286	8,571	4,960	1,399
California litigation expense	34,700	(136,333)	—	—	—
Dividend and royalty income	12,000	4,276	7,648	4,573	3,668
Loss on extinguishment of debt	(14,800)	—	—	—	—
Net expense from banking activities	(10,700)	(9,658)	(9,843)	(8,667)	(11,091)
Foreign currency transaction related losses	(19,700)	(7,532)	(450)	(7,335)	(9,503)
Domestic pension plan settlement expense	(32,400)	(37,648)	—	—	—
Miscellaneous pension income (expense)	(8,000)	10,761	—	—	—
Indirect tax credits	38,700	—	—	—	—
Other income	32,800	32,219	32,570	25,279	23,880
Other expense	(14,600)	(12,535)	(12,951)	(9,263)	(13,036)
Other income (expense), net	(16,700)	(20,117)	16,974	4,587	(6,082)
Income from continuing operations before income taxes	1,981,800	1,359,650	1,528,219	1,595,233	1,548,966
Income tax (expense) credit	(440,500)	(250,904)	285,583	(462,530)	(495,117)
Net income from continuing operations	1,541,300	1,108,746	1,813,802	1,132,703	1,053,849
Net loss from discontinued operations	—	—	(41,540)	—	—
Net income	1,541,300	1,108,746	1,772,262	1,132,703	1,053,849

Based on: 10-K (filing date: 2020-02-21), 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-22), 10-K (filing date: 2016-02-24).

Income statement item	Description	The company
Net sales	Amount, including tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value-added and excise.	Sherwin-Williams Co.’s net sales increased from 2017 to 2018 and from 2018 to 2019.
Operating income	The net result for the period of deducting operating expenses from operating revenues.	Sherwin-Williams Co.’s operating income increased from 2017 to 2018 and from 2018 to 2019.
Income from continuing operations before income taxes	Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.	Sherwin-Williams Co.’s income from continuing operations before income taxes decreased from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level.
Net income	The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.	Sherwin-Williams Co.’s net income decreased from 2017 to 2018 but then increased from 2018 to 2019 not reaching 2017 level.

Sherwin-Williams Co. (NYSE:SHW)

Income Statement