Stock Analysis on Net
Stock Analysis on Net

Sherwin-Williams Co. (NYSE:SHW)

Cash Flow Statement
Quarterly Data

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 (quarterly data)

US$ in thousands

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3 months ended: Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015
Net income 595,900  321,700  248,622  576,438  471,003  245,237  100,988  354,027  403,604  250,127  897,393  316,606  319,111  239,152  203,030  386,733  378,064  164,876  198,017  374,491  349,937  131,404 
Loss from discontinued operations —  —  —  —  —  —  —  —  —  —  —  —  41,540  —  —  —  —  —  —  —  —  — 
Depreciation 66,100  66,500  67,143  65,209  65,032  64,716  66,655  67,381  72,542  71,591  122,783  67,249  50,370  44,595  43,761  41,589  43,829  42,895  43,351  42,391  42,081  42,500 
Non-cash lease expense 88,000  93,800  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  — 
Amortization of intangible assets 77,400  78,100  78,400  77,548  78,081  78,771  79,093  80,077  73,893  85,049  87,965  83,711  28,906  6,182  5,465  8,169  6,221  5,782  8,270  6,249  6,815  6,905 
Loss on extinguishment of debt —  21,300  46  14,754  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  — 
Amortization of credit facility and debt issuance costs 1,900  1,900  1,889  2,963  2,172  2,176  2,621  3,999  2,764  2,749  2,344  3,029  1,956  984  18,936  19,132  19,035  6,656  485  445  1,083  1,083 
Amortization of inventory purchase accounting adjustments —  —  —  —  —  —  —  —  —  —  (59,101) 77,747  36,278  —  —  —  —  —  —  —  —  — 
Stock-based compensation expense 26,300  20,100  30,805  23,235  24,592  23,068  29,456  16,356  22,165  14,611  31,146  23,280  18,545  17,321  23,994  16,167  16,183  15,765  24,504  15,260  14,499  18,079 
Provisions for qualified exit costs —  —  2,743  2,446  2,662  949  1,820  3,162  6,142  3,799  18,087  19,588  9,972  2,856  1,497  119  296  1,126  2,273  6,006  721  761 
Provisions for environmental-related matters 8,500  2,200  5,126  10,602  6,680  592  141,980  2,299  31,253  765  9,631  4,183  1,110  519  21,713  683  2,507  18,029  12,383  7,128  10,510  1,050 
Defined benefit pension plans net cost 1,900  1,900  2,736  2,330  2,812  35,222  39,450  (2,211) (2,213) 1,345  2,907  4,692  5,399  5,155  2,301  2,602  2,956  6,992  1,126  1,789  1,789  1,787 
Net change in postretirement liability —  —  (15,072) —  —  672  (16,859) —  —  996  (10,443) —  (9,332) 1,910  (13,334) —  —  961  (6,534) —  —  (111)
Impairment of trademarks —  —  122,100  —  —  —  —  —  —  —  2,022  —  —  —  10,688  —  —  —  —  —  —  — 
Deferred income taxes (3,600) 9,500  (87,701) (13,184) (27,610) (2,605) (144,862) (25,971) 24,004  3,451  (606,135) 6,968  (6,968) —  —  —  —  —  —  —  —  — 
Other (3,700) 1,100  140,100  (27,924) (1,418) 5,842  52,472  28,962  (10,010) 15  72,083  723  36,749  (37,379) (36,840) 6,629  1,343  (147) 71,648  5,823  (754) (3,785)
Change in working capital accounts, net 176,300  (430,100) 100,736  171,191  77,634  (495,961) 211,309  390,075  (88,833) (382,842) 181,549  75,982  (181,093) (58,402) 69,639  (30,047) 86,769  (298,341) 180,091  130,976  15,412  (254,221)
Change in operating lease liabilities (85,900) (89,100) —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  — 
Costs incurred for environmental-related matters (6,100) (7,900) (6,077) (8,923) (6,525) (4,575) (3,727) (5,518) (4,404) (4,069) (5,538) (2,195) (2,687) (3,372) (6,353) (2,109) (1,680) (5,036) (3,844) (2,578) (2,698) (2,875)
Costs incurred for qualified exit costs —  —  (5,369) (4,029) (2,965) (437) (1,661) (5,270) (6,241) (8,084) (18,497) (18,021) (7,908) (996) (1,193) (919) (1,287) (2,868) (5,378) (777) (3,079) (1,966)
Adjustments to reconcile net income to net operating cash 347,100  (230,700) 437,605  316,218  221,147  (291,570) 457,747  553,341  121,062  (210,624) (169,197) 346,936  22,837  (20,627) 140,274  62,015  176,172  (208,186) 328,375  212,712  86,379  (190,793)
Other 76,700  (36,100) (26,334) 10,750  101,801  10,383  (46,250) (55,249) 13,681  1,246  (103,060) 9,157  12,369  13,291  (1,266) 7,803  17,806  (18,749) 18,567  (33,719) (32,228) 4,321 
Net operating cash 1,019,700  54,900  659,893  903,406  793,951  (35,950) 512,485  852,119  538,347  40,749  625,136  672,699  354,317  231,816  342,038  456,551  572,042  (62,059) 544,959  553,484  404,088  (55,068)
Capital expenditures (35,700) (106,600) (104,075) (96,946) (76,519) (51,360) (84,773) (64,358) (59,573) (42,253) (79,361) (59,771) (42,156) (41,479) (65,925) (59,020) (62,082) (51,999) (76,350) (70,448) (44,639) (42,903)
Acquisitions of businesses, net of cash acquired —  —  (4,664) (72,636) —  —  —  —  —  —  (1) (4,032) (8,806,282) —  —  —  —  —  —  —  —  — 
Proceeds from sale of assets 22,500  2,300  (16) 4,166  —  2,750  —  24,000  7,002  7,352  7,718  2,397  2,369  34,762  32,889  3,506  1,051  988  141  3,138  1,344  6,677 
(Increase) decrease in other investments (35,700) 6,400  (65,324) 54,139  (28,520) (23,595) (51,589) 32,063  (13,861) (5,650) (65,025) 14,943  11,750  (23,194) (34,039) (32,193) (26,424) (10,526) (50,647) (13,460) (1,430) (56)
Net investing cash (48,900) (97,900) (174,079) (111,277) (105,039) (72,205) (136,362) (8,295) (66,432) (40,551) (136,669) (46,463) (8,834,319) (29,911) (67,075) (87,707) (87,455) (61,537) (126,856) (80,770) (44,725) (36,282)
Net increase (decrease) in short-term borrowings (494,700) 849,700  (231,822) (371,670) (15,528) 496,220  (324,331) (596) (264,881) 288,866  470,262  114,843  (229,111) 326  (7,446) (8,771) (70,452) 85,770  4,089  (1,118,951) (247,097) 731,733 
Proceeds from long-term debt —  999,000  (10) 1,332,810  —  —  —  —  —  —  5,239  285,555  7,984,375  —  —  500  —  —  54  797,460  —  — 
Payments of long-term debt (433,500) (771,200) (112) (1,514,825) (360,824) (39) (650) (700,183) (150,986) (808) (901,559) (951,077) (105) (71) 39  (1,066) (84) —  —  —  96  (96)
Payments for credit facility and debt issuance costs —  (10,000) (631) (12,969) —  —  (50) (5,022) —  (113) (354) (3,568) (45,447) (7) (3,686) —  (19,583) (41,850) —  —  —  — 
Payments of cash dividends (122,700) (122,900) (105,941) (105,102) (104,995) (104,762) (80,395) (80,898) (80,613) (81,028) (80,013) (80,082) (79,484) (79,450) (78,219) (78,142) (77,987) (77,734) (62,405) (61,991) (62,642) (62,609)
Proceeds from stock options exercised 47,600  30,000  43,445  45,628  40,663  24,864  16,460  40,866  11,824  21,595  49,788  14,634  37,395  41,762  20,494  22,629  23,991  19,717  15,970  16,600  19,926  37,494 
Income tax effect of stock-based compensation exercises and vesting —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  2,890  14,272  19,897  52,632 
Treasury stock purchased —  (890,300) (201,023) (127,270) (145,361) (305,146) (244,978) (34,179) (93,007) (241,148) —  —  —  —  —  —  —  —  (269,204) (86,638) (64,538) (614,911)
Proceeds from treasury stock issued —  57,400  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  — 
Proceeds from real estate financing transactions —  —  (748) (788) (752) 9,488  136,764  —  88,581  —  —  —  —  —  —  —  —  —  —  —  —  — 
Other 1,500  (26,000) (7,885) (2,889) (49,172) (69,254) 76,013  (28,761) (182) (14,813) (19,327) 5,986  (3,718) (22,702) (2,829) (3,062) (9,583) (357) (7,946) (973) (33,108)
Net financing cash (1,001,800) 115,700  (504,727) (757,075) (635,969) 51,371  (421,167) (808,773) (489,264) (27,449) (475,964) (613,709) 7,663,905  (60,142) (71,647) (64,849) (147,177) (23,680) (308,963) (447,194) (335,331) 111,135 
Effect of exchange rate changes on cash (19,400) 4,000  (8,927) 9,014  (1,759) (4,328) 19,038  (8,513) 13,709  (18,349) (16,227) (14,639) 8,338  (13,748) (16,092) (4,082) (5,302) 12,080  5,575  (9,559) (12,977) 3,496 
Net increase (decrease) in cash and cash equivalents (50,400) 76,700  (27,840) 44,068  51,184  (61,112) (26,006) 26,538  (3,640) (45,600) (3,724) (2,112) (807,759) 128,015  187,224  299,913  332,108  (135,196) 114,715  15,961  11,055  23,281 

Based on: 10-Q (filing date: 2020-07-28), 10-Q (filing date: 2020-04-29), 10-K (filing date: 2020-02-21), 10-Q (filing date: 2019-10-22), 10-Q (filing date: 2019-07-24), 10-Q (filing date: 2019-04-25), 10-K (filing date: 2019-02-22), 10-Q (filing date: 2018-10-25), 10-Q (filing date: 2018-07-25), 10-Q (filing date: 2018-04-25), 10-K (filing date: 2018-02-23), 10-Q (filing date: 2017-10-25), 10-Q (filing date: 2017-07-26), 10-Q (filing date: 2017-04-21), 10-K (filing date: 2017-02-22), 10-Q (filing date: 2016-10-26), 10-Q (filing date: 2016-07-27), 10-Q (filing date: 2016-04-27), 10-K (filing date: 2016-02-24), 10-Q (filing date: 2015-10-29), 10-Q (filing date: 2015-07-22), 10-Q (filing date: 2015-04-22).

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 decreased from Q4 2019 to Q1 2020 but then increased from Q1 2020 to Q2 2020 exceeding Q4 2019 level.
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 Q4 2019 to Q1 2020 and from Q1 2020 to Q2 2020.
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 increased from Q4 2019 to Q1 2020 but then decreased significantly from Q1 2020 to Q2 2020.