Stock Analysis on Net
Stock Analysis on Net
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Sherwin-Williams Co. (NYSE:SHW)

Cash Flow Statement

Beginner level

The cash flow statement provides information about a company’s cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company’s balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

Sherwin-Williams Co., consolidated cash flow statement

US$ in thousands

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12 months ended: Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Net income 1,541,300  1,108,746  1,772,262  1,132,703  1,053,849 
Loss from discontinued operations —  —  41,540  —  — 
Depreciation 262,100  278,169  284,997  172,074  170,323 
Non-cash lease expense 370,800  —  —  —  — 
Amortization of intangible assets 312,800  318,112  206,764  25,637  28,239 
Amortization of inventory purchase accounting adjustments —  —  54,924  —  — 
Loss on extinguishment of debt 14,800  —  —  —  — 
Impairment of trademarks 122,100  —  2,022  10,688  — 
Amortization of credit facility and debt issuance costs 9,200  12,133  8,313  63,759  3,096 
Provisions for environmental-related matters 23,000  176,297  15,443  42,932  31,071 
Provisions for qualified exit costs 8,800  14,923  50,503  3,038  9,761 
Deferred income taxes (131,100) (143,378) (606,135) (68,241) 4,976 
Defined benefit pension plans net cost 43,100  36,371  18,153  14,851  6,491 
Stock-based compensation expense 101,700  82,588  90,292  72,109  72,342 
Net decrease in postretirement liability (14,400) (15,863) (17,865) (12,373) (6,645)
Decrease in non-traded investments 82,300  72,453  65,703  64,689  65,144 
(Gain) loss on sale or disposition of assets 16,100  12,825  5,422  (30,564) (803)
Other 15,800  (13,839) 1,051  5,101  3,615 
(Increase) decrease in accounts receivable (73,200) 18,424  (49,850) (113,855) (56,873)
(Increase) decrease in inventories (75,500) (119,510) (89,959) (52,577) (40,733)
Increase (decrease) in accounts payable 36,200  113,786  166,687  (118,893) 160,111 
Increase (decrease) in accrued taxes 5,100  2,717  (20,878) (2,159) 4,606 
Increase (decrease) in accrued compensation and taxes withheld 49,600  4,640  11,286  60,632  (13,128)
(Increase) decrease in refundable income taxes (47,800) 20,092  (15,520) (1,343) 19,230 
Increase (decrease) in California litigation accrual (59,600) 136,333  —  —  — 
Other 18,800  (46,773) 16,270  56,215  (955)
Change in working capital accounts (146,400) 129,709  18,036  (171,980) 72,258 
Change in operating lease liabilities (368,400) —  —  —  — 
Costs incurred for environmental-related matters (26,100) (17,718) (13,792) (15,178) (11,995)
Costs incurred for qualified exit costs (12,800) (21,256) (45,422) (6,267) (11,200)
Adjustments to reconcile net income to net operating cash 683,400  921,526  179,949  170,275  436,673 
Other 96,600  (86,572) (68,243) 5,594  (43,059)
Net operating cash 2,321,300  1,943,700  1,883,968  1,308,572  1,447,463 
Capital expenditures (328,900) (250,957) (222,767) (239,026) (234,340)
Acquisitions of businesses, net of cash acquired (77,300) —  (8,810,315) —  — 
Proceeds from sale of assets 6,900  38,354  47,246  38,434  11,300 
Increase in other investments (63,300) (39,037) (61,526) (103,182) (65,593)
Net investing cash (462,600) (251,640) (9,047,362) (303,774) (288,633)
Net increase (decrease) in short-term borrowings (122,800) (300,942) 356,320  (899) (630,226)
Proceeds from long-term debt 1,332,800  —  8,275,169  500  797,514 
Payments of long-term debt (1,875,800) (852,627) (1,852,812) (1,111) — 
Payments for credit facility and debt issuance costs (13,600) (5,185) (49,376) (65,119) — 
Payments of cash dividends (420,800) (322,934) (319,029) (312,082) (249,647)
Proceeds from stock options exercised 154,600  90,745  143,579  86,831  89,990 
Income tax effect of stock-based compensation exercises and vesting —  —  —  —  89,691 
Treasury stock purchased (778,800) (613,312) —  —  (1,035,291)
Proceeds from real estate financing transactions 7,200  225,345  —  —  — 
Other (129,200) 32,257  (39,761) (15,473) (42,384)
Net financing cash (1,846,400) (1,746,653) 6,514,090  (307,353) (980,353)
Effect of exchange rate changes on cash (6,000) 5,885  (36,276) (13,396) (13,465)
Net increase (decrease) in cash and cash equivalents 6,300  (48,708) (685,580) 684,049  165,012 
Cash and cash equivalents at beginning of year 155,500  204,213  889,793  205,744  40,732 
Cash and cash equivalents at end of year 161,800  155,505  204,213  889,793  205,744 

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).

Cash flow statement item Description The company
Net operating cash Amount of cash inflow (outflow) from operating activities, excluding discontinued operations. Operating activity cash flows include transactions, adjustments, and changes in value not defined as investing or financing activities. Sherwin-Williams Co.’s net operating cash increased from 2017 to 2018 and from 2018 to 2019.
Net investing cash Amount of cash inflow (outflow) of investing activities, excluding discontinued operations. Investing activity cash flows include making and collecting loans and acquiring and disposing of debt or equity instruments and property, plant, and equipment and other productive assets. Sherwin-Williams Co.’s net investing cash increased from 2017 to 2018 but then slightly decreased from 2018 to 2019.
Net financing cash Amount of cash inflow (outflow) of financing activities, excluding discontinued operations. Financing activity cash flows include obtaining resources from owners and providing them with a return on, and a return of, their investment; borrowing money and repaying amounts borrowed, or settling the obligation; and obtaining and paying for other resources obtained from creditors on long-term credit. Sherwin-Williams Co.’s net financing cash decreased from 2017 to 2018 and from 2018 to 2019.