Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 31, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity File Number | 1-04851 | ||
Entity Registrant Name | THE SHERWIN-WILLIAMS COMPANY | ||
Entity Incorporation, State or Country Code | OH | ||
Entity Tax Identification Number | 34-0526850 | ||
Entity Address, Address Line One | 101 West Prospect Avenue | ||
Entity Address, City or Town | Cleveland, | ||
Entity Address, State or Province | OH | ||
Entity Address, Postal Zip Code | 44115-1075 | ||
City Area Code | 216 | ||
Local Phone Number | 566-2000 | ||
Title of 12(b) Security | Common Stock, par value of $0.33-1/3 per share | ||
Trading Symbol | SHW | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 68,095,363,926 | ||
Entity Common Stock, Shares Outstanding | 254,464,522 | ||
Documents Incorporated by Reference | Portions of our Proxy Statement for the 2024 Annual Meeting of Shareholders (“Proxy Statement”) to be filed with the Securities and Exchange Commission within 120 days of our fiscal year ended December 31, 2023 are incorporated by reference into Part III of this report. | ||
Annual Report | true | ||
Transition Report | false | ||
Entity Central Index Key | 0000089800 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Name | Ernst & Young LLP |
Auditor Location | Cleveland, Ohio |
Auditor Firm ID | 42 |
Statements of Consolidated Inco
Statements of Consolidated Income - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Statement [Abstract] | |||
Net sales | $ 23,051.9 | $ 22,148.9 | $ 19,944.6 |
Cost of goods sold | 12,293.8 | 12,823.8 | 11,401.9 |
Gross profit | $ 10,758.1 | $ 9,325.1 | $ 8,542.7 |
Gross profit, percent to net sales | 46.70% | 42.10% | 42.80% |
Selling, general and administrative expenses | $ 7,065.4 | $ 6,331.6 | $ 5,882 |
Selling, general and administrative expenses, percent to net sales | 30.60% | 28.60% | 29.50% |
Other general expense (income) - net | $ 67.1 | $ (24.9) | $ 101.8 |
Impairment | 57.9 | 15.5 | 0 |
Interest expense | 417.5 | 390.8 | 334.7 |
Interest income | (25.2) | (8) | (4.9) |
Other expense (income) - net | 65.5 | 47 | (19.5) |
Income before income taxes | 3,109.9 | 2,573.1 | 2,248.6 |
Income tax expense | 721.1 | 553 | 384.2 |
Net income | $ 2,388.8 | $ 2,020.1 | $ 1,864.4 |
Net income per share: | |||
Basic (in dollars per share) | $ 9.35 | $ 7.83 | $ 7.10 |
Diluted (in dollars per share) | $ 9.25 | $ 7.72 | $ 6.98 |
Weighted average shares outstanding: | |||
Basic (in shares) | 255.4 | 258 | 262.5 |
Diluted (in shares) | 258.3 | 261.8 | 267.1 |
Statements of Consolidated Comp
Statements of Consolidated Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 2,388.8 | $ 2,020.1 | $ 1,864.4 | |
Other comprehensive income, net of tax: | ||||
Foreign currency translation adjustments | [1] | 93.9 | (108.7) | (30.6) |
Pension and other postretirement benefit adjustments: | ||||
Amounts recognized in AOCI | [2] | 3.9 | 106.8 | 48.7 |
Amounts reclassified from AOCI | [3] | (17.9) | 3.7 | 6.3 |
Pension and other postretirement benefit adjustments | (14) | 110.5 | 55 | |
Unrealized net gains on cash flow hedges: | ||||
Amounts reclassified from AOCI | [4] | (3.6) | (4) | (4.5) |
Other comprehensive income (loss), net of tax | 76.3 | (2.2) | 19.9 | |
Comprehensive income | $ 2,465.1 | $ 2,017.9 | $ 1,884.3 | |
[1] The years ended December 31, 2023, 2022 and 2021 include unrealized (losses) gains, net of taxes, of $(24.9) million, $34.1 million and $37.1 million, respectively, related to net investment hedges. See Note 17. Net of taxes of $(2.8) million, $(33.8) million and $(12.6) million in 2023, 2022 and 2021, respectively. Net of taxes of $1.2 million, $1.1 million and $1.0 million in 2023, 2022 and 2021, respectively. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets: | |||
Cash and cash equivalents | $ 276.8 | $ 198.8 | $ 165.7 |
Accounts receivable, less allowance | 2,467.9 | 2,563.6 | 2,352.4 |
Inventories | 2,329.8 | 2,626.5 | 1,927.2 |
Other current assets | 438.4 | 518.8 | 608.4 |
Total current assets | 5,512.9 | 5,907.7 | 5,053.7 |
Property, plant and equipment, net | 2,836.8 | 2,207 | 1,867.3 |
Goodwill | 7,626 | 7,583.2 | 7,134.6 |
Intangible assets, net | 3,880.5 | 4,002 | 4,001.5 |
Operating lease right-of-use assets | 1,887.4 | 1,866.8 | 1,820.6 |
Other assets | 1,210.8 | 1,027.3 | 789 |
Total Assets | 22,954.4 | 22,594 | 20,666.7 |
Current liabilities: | |||
Short-term borrowings | 374.2 | 978.1 | 763.5 |
Accounts payable | 2,315 | 2,436.5 | 2,403 |
Compensation and taxes withheld | 862.7 | 784.5 | 716.6 |
Accrued taxes | 197.4 | 197.4 | 160.3 |
Current portion of long-term debt | 1,098.8 | 0.6 | 260.6 |
Current portion of operating lease liabilities | 449.3 | 425.3 | 409.7 |
Other accruals | 1,329.5 | 1,138.3 | 1,005.8 |
Total current liabilities | 6,626.9 | 5,960.7 | 5,719.5 |
Long-term debt | 8,377.9 | 9,591 | 8,590.9 |
Postretirement benefits other than pensions | 133.2 | 139.3 | 259.4 |
Deferred income taxes | 683.1 | 681.6 | 768.2 |
Long-term operating lease liabilities | 1,509.5 | 1,512.9 | 1,470.7 |
Other long-term liabilities | 1,908 | 1,606.4 | 1,420.8 |
Shareholders’ equity: | |||
Common stock - $0.33-1/3 par value: 254.5, 258.9, and 261.1 million shares outstanding at December 31, 2023, 2022 and 2021, respectively | 91.8 | 91.2 | 90.8 |
Other capital | 4,193.6 | 3,963.9 | 3,793 |
Retained earnings | 5,288.3 | 3,523.2 | 2,121.7 |
Treasury stock, at cost | (5,233.6) | (3,775.6) | (2,869.9) |
Accumulated other comprehensive loss | (624.3) | (700.6) | (698.4) |
Total shareholders’ equity | 3,715.8 | 3,102.1 | 2,437.2 |
Total Liabilities and Shareholders’ Equity | $ 22,954.4 | $ 22,594 | $ 20,666.7 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Shareholders’ equity: | |||
Common stock, par value (in dollars per share) | $ 0.33 | $ 0.33 | $ 0.33 |
Common stock, shares outstanding (in shares) | 254.5 | 258.9 | 261.1 |
Statements of Consolidated Cash
Statements of Consolidated Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Operating Activities | |||
Net income | $ 2,388.8 | $ 2,020.1 | $ 1,864.4 |
Adjustments to reconcile net income to net operating cash: | |||
Depreciation | 292.3 | 264 | 263.1 |
Non-cash lease expense | 452.7 | 416.9 | 400.7 |
Amortization of intangible assets | 330.2 | 317.1 | 309.5 |
(Gain) loss on divestiture of business | (20.1) | 0 | 111.9 |
Loss (gain) on extinguishment of debt | 12.8 | 0 | (1.4) |
Impairment | 57.9 | 15.5 | 0 |
Provisions for environmental-related matters | 80.7 | (7.1) | (4) |
Provisions for restructuring | 15.3 | 47.3 | 0 |
Deferred income taxes | (88.9) | (144.8) | (80.3) |
Other postretirement benefit plan net cost | (15.8) | (1.6) | (3.9) |
Stock-based compensation expense | 115.9 | 99.7 | 97.7 |
Amortization of non-traded investments | 65.4 | 38.5 | 53.6 |
Loss (gain) on sale or disposition of assets | 0.9 | (10.7) | (6.1) |
Other | 7 | 43.9 | 10.7 |
Change in working capital accounts: | |||
Decrease (increase) in accounts receivable | 85.6 | (200.2) | (287.8) |
Decrease (increase) in inventories | 323.4 | (666.7) | (228.1) |
(Decrease) increase in accounts payable | (241.1) | 46.6 | 346.1 |
Decrease in accrued taxes | (8.9) | (38.1) | (32.7) |
Increase (decrease) in accrued compensation and taxes withheld | 75.7 | 65.8 | (10.9) |
Decrease (increase) in refundable income taxes | 25.8 | 47.6 | (38.5) |
Other | 306.7 | 32.5 | (46.8) |
Change in operating lease liabilities | (453.4) | (405.3) | (401.4) |
Costs incurred for environmental-related matters | (35.3) | (23.8) | (41.3) |
Other | (251.7) | (37.3) | (29.9) |
Net operating cash | 3,521.9 | 1,919.9 | 2,244.6 |
Investing Activities | |||
Capital expenditures | (888.4) | (644.5) | (372) |
Acquisitions of businesses, net of cash acquired | (264.7) | (1,003.1) | (210.9) |
Proceeds from divestiture of business | 103.7 | 0 | 122.5 |
Proceeds from sale of assets | 70.1 | 33.2 | 14.8 |
Other | (60) | 6.8 | (30.8) |
Net investing cash | (1,039.3) | (1,607.6) | (476.4) |
Financing Activities | |||
Net (decrease) increase in short-term borrowings | (603.9) | 214.4 | 763.9 |
Proceeds from long-term debt | 0 | 999.7 | 994.8 |
Payments of long-term debt | (136.4) | (260.3) | (422.9) |
Payments for credit facility and debt issuance costs | 0 | (7.3) | (11.5) |
Payments of cash dividends | (623.7) | (618.5) | (587.1) |
Proceeds from stock options exercised | 111.6 | 67.3 | 192.8 |
Treasury stock purchased | (1,432) | (883.2) | (2,752.3) |
Proceeds from treasury stock issued | 0 | 22 | 11.7 |
Proceeds from real estate financing transactions | 306.5 | 207.3 | 0 |
Other | (46.7) | (23.8) | (23.4) |
Net financing cash | (2,424.6) | (282.4) | (1,834) |
Effect of exchange rate changes on cash | 20 | 3.2 | 4.9 |
Net increase (decrease) in cash and cash equivalents | 78 | 33.1 | (60.9) |
Cash and cash equivalents at beginning of year | 198.8 | 165.7 | 226.6 |
Cash and cash equivalents at end of year | 276.8 | 198.8 | 165.7 |
Supplemental Cash Flow Information [Abstract] | |||
Income taxes paid | 816.7 | 580.1 | 466.3 |
Interest paid | $ 416.5 | $ 371.1 | $ 338.8 |
Statements of Consolidated Shar
Statements of Consolidated Shareholders' Equity - USD ($) $ in Millions | Total | Common Stock | Other Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Loss |
Beginning balance at Dec. 31, 2020 | $ 3,610.8 | $ 89.9 | $ 3,491.4 | $ 844.3 | $ (96.5) | $ (718.3) |
Shareholders' Equity [Roll Forward] | ||||||
Net income | 1,864.4 | 1,864.4 | ||||
Other comprehensive income (loss) | 19.9 | 19.9 | ||||
Treasury stock purchased | (2,752.3) | (2,752.3) | ||||
Treasury stock issued | 11.7 | 9.3 | 2.4 | |||
Stock-based compensation activity | 268.3 | 0.9 | 290.9 | (23.5) | ||
Other adjustments | 1.5 | 1.4 | 0.1 | |||
Cash dividends | (587.1) | (587.1) | ||||
Ending balance at Dec. 31, 2021 | 2,437.2 | 90.8 | 3,793 | 2,121.7 | (2,869.9) | (698.4) |
Shareholders' Equity [Roll Forward] | ||||||
Net income | 2,020.1 | 2,020.1 | ||||
Other comprehensive income (loss) | (2.2) | (2.2) | ||||
Treasury stock purchased | (883.2) | (883.2) | ||||
Treasury stock issued | 22 | 11 | 11 | |||
Stock-based compensation activity | 134 | 0.4 | 167.1 | (33.5) | ||
Other adjustments | (7.3) | (7.2) | (0.1) | |||
Cash dividends | (618.5) | (618.5) | ||||
Ending balance at Dec. 31, 2022 | 3,102.1 | 91.2 | 3,963.9 | 3,523.2 | (3,775.6) | (700.6) |
Shareholders' Equity [Roll Forward] | ||||||
Net income | 2,388.8 | 2,388.8 | ||||
Other comprehensive income (loss) | 76.3 | 76.3 | ||||
Treasury stock purchased | (1,432) | (1,432) | ||||
Stock-based compensation activity | 203.9 | 0.6 | 229.3 | (26) | ||
Other adjustments | 0.4 | 0.4 | ||||
Cash dividends | (623.7) | (623.7) | ||||
Ending balance at Dec. 31, 2023 | $ 3,715.8 | $ 91.8 | $ 4,193.6 | $ 5,288.3 | $ (5,233.6) | $ (624.3) |
Statements of Consolidated Sh_2
Statements of Consolidated Shareholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends (in dollars per share) | $ 2.42 | $ 2.40 | $ 2.20 |
Statements of Consolidated Co_2
Statements of Consolidated Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Net actuarial gains (losses) and prior service costs arising during period, tax | $ (2.8) | $ (33.8) | $ (12.6) |
Pension and other post retirement benefit adjustments, reclassification tax | 5.9 | (1.2) | (2.1) |
Unrealized holding losses on cash flow hedges, amounts reclassified from other comprehensive loss, tax | 1.2 | 1.1 | 1 |
Net Investment Hedging | |||
(Losses) gains on foreign currency translation adjustments | $ (24.9) | $ 34.1 | $ 37.1 |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | SIGNIFICANT ACCOUNTING POLICIES Consolidation The consolidated financial statements include the accounts of The Sherwin-Williams Company and its wholly owned subsidiaries (collectively, the Company). Inter-company accounts and transactions have been eliminated. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles (US GAAP) requires management to make estimates, judgments and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those amounts. Nature of Operations The Company is engaged in the development, manufacture, distribution and sale of paint, coatings and related products to professional, industrial, commercial and retail customers primarily in North and South America, with additional operations in the Caribbean region, Europe, Asia and Australia. Reportable Segments During the first quarter of 2023, the Company realigned its organizational structure to manage the Latin America architectural paint business within the Consumer Brands Group. Previously, the Latin America architectural paint business was managed within The Americas Group; however, Latin America architectural demand and service model trends are shifting to align more closely with the Consumer Brand Group’s strategy. As a result of the change, The Americas Group has been renamed the Paint Stores Group which now focuses on the core U.S., Canada and Caribbean region stores business. All reported segment information herein, including comparable prior periods, include the Latin America architectural paint business within the Consumer Brands Group. See Note 23 for further details on this change and other information on the Company’s reportable segments. Cash Equivalents Management considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. Accounts Receivable and Allowance for Current Expected Credit Losses Accounts receivable are recorded at the time of credit sales, net of an allowance for current expected credit losses. The Company records an allowance for current expected credit losses to reduce Accounts receivable to the net amount expected to be collected (estimated net realizable value). Under ASC 326, the Company reviews the collectibility of the Accounts receivable balance each reporting period and estimates the allowance for current expected credit losses based on historical bad debt experience, aging of accounts receivable, current creditworthiness of customers, current economic factors, as well as reasonable and supportable forward-looking information. Accounts receivable balances are written-off against the allowance for current expected credit losses if a final determination of uncollectibility is made. All provisions for the allowance for current expected credit losses are included in Selling, general and administrative expenses. See Note 19 for further details. Inventories Inventories are stated at the lower of cost or net realizable value with cost determined principally on the last-in, first-out (LIFO) method. If inventories accounted for on the LIFO method are reduced on a year-over-year basis, then liquidation of certain quantities carried at costs prevailing in prior years occurs. Management records an estimate of net realizable value for obsolete and discontinued inventories based on historical experience and current trends through reductions to inventory cost by recording a provision included in Cost of goods sold. If management estimates that the reasonable market value is below cost or determines that future demand was lower than current inventory levels, based on historical experience, current and projected market demand, current and projected volume trends and other relevant current and projected factors associated with the current economic conditions, a reduction in inventory cost to estimated net realizable value is provided for in the reserve for obsolescence. See Note 5 for further details. Property, Plant and Equipment Property, plant and equipment (including leasehold improvements) is stated on the basis of cost. Depreciation is charged to expense using the straight-line method over the assets’ estimated useful lives which range from 5 to 25 years for buildings and 3 to 15 years for machinery and equipment. Depreciation and amortization are included in the appropriate Cost of goods sold or Selling, general and administrative expenses caption on the Statements of Consolidated Income. Goodwill and Intangible Assets Goodwill represents the cost in excess of fair value of net assets acquired in business combinations. Intangible assets include software, customer relationships, intellectual property and trademarks. In accordance with the Goodwill and Other Intangibles Topic of the Financial Accounting Standards Board (FASB) ASC, goodwill and indefinite-lived trademarks are not amortized, but instead are tested for impairment on an annual basis, as well as whenever an event occurs or circumstances change that indicate impairment has occurred on a more likely than not basis. Finite-lived intangible assets are amortized on a straight-line basis over the expected period of benefit, which ranges primarily from 7 to 20 years. See Note 7 for further details. Impairment of Long-Lived Assets In accordance with the Property, Plant and Equipment Topic of the ASC, management evaluates the recoverability and remaining lives of long-lived assets, including right-of-use assets, whenever events or changes in circumstances indicate that the carrying amount may not be recoverable or the useful life has changed. See Note 6 for further details. Derivative Instruments The Company utilizes derivative instruments to mitigate certain risk exposures as part of its overall financial risk management policy and accounts for these instruments in accordance with the Derivatives and Hedging Topic of the ASC. Derivatives are recorded as assets or liabilities in the Consolidated Balance Sheets at fair value. Changes in fair value of the derivative instruments are recognized immediately in earnings unless the derivative instrument qualifies for and is designated in an effective hedging relationship. The Company entered into foreign currency forward contracts with maturity dates of less than twelve months in 2023, 2022, and 2021, primarily to hedge against value changes in foreign currency. There were no material foreign currency option and forward contracts outstanding at December 31, 2023, 2022 and 2021. See Note 20 for further details. The Company also entered into cross currency swap contracts to hedge its net investment in European operations in 2023, 2022, and 2021. These contracts qualified for and were designated as net investment hedges under US GAAP. The changes in fair value for the cross currency swaps are recognized in the foreign currency translation adjustments component of AOCI. The cash flow impact of these instruments is classified as an investing activity in the Statements of Consolidated Cash Flows. See Note 17 for further details. Non-Traded Investments The Company has investments in the U.S. affordable housing and historic renovation real estate markets and certain other investments that have been identified as variable interest entities which qualify for certain tax credits. However, because the Company does not have the power to direct the day-to-day operations of the investments and the risk of loss is limited to the amount of contributed capital, the Company is not considered the primary beneficiary. In accordance with the Consolidation Topic of the ASC, the investments are not consolidated. For affordable housing investments entered into prior to the January 1, 2015 adoption of Accounting Standards Update (ASU) 2014-01, the Company uses the effective yield method to determine the carrying value of the investments. Under the effective yield method, the initial cost of the investments is amortized to income tax expense over the period that the tax credits are recognized. For affordable housing investments entered into on or after the January 1, 2015 adoption of ASU 2014-01, the Company uses the proportional amortization method. Under the proportional amortization method, the initial cost of the investments is amortized to income tax expense in proportion to the tax credits and other tax benefits received. The carrying value of the investments are recorded in Other assets. The liabilities for the estimated future capital contributions are recorded in Other accruals and Other long-term liabilities. The following table summarizes the balances related to the investments. 2023 2022 2021 Other assets $ 675.0 $ 587.0 $ 355.8 Other accruals 80.9 89.8 61.8 Other long-term liabilities 568.2 476.5 289.7 Standby Letters of Credit The Company occasionally enters into standby letter of credit agreements to guarantee various operating activities. These agreements provide credit availability to the various beneficiaries if certain contractual events occur. Amounts outstanding under these agreements totaled $146.2 million, $149.8 million and $89.2 million at December 31, 2023, 2022 and 2021, respectively. Product Warranties The Company offers assurance-type product warranties for certain products. The specific terms and conditions of such warranties vary depending on the product or customer contract requirements. Management estimated the costs of unsettled product warranty claims based on historical results and experience and included an amount in Other accruals. Management periodically assesses the adequacy of the accrual for product warranty claims and adjusts the accrual as necessary. Changes in the Company’s accrual for product warranty claims during 2023, 2022 and 2021, including customer satisfaction settlements during the year, were as follows: 2023 2022 2021 Balance at January 1 $ 36.2 $ 35.2 $ 43.3 Charges to expense 37.0 30.1 27.5 Settlements (32.8) (29.1) (35.6) Balance at December 31 $ 40.4 $ 36.2 $ 35.2 Defined Benefit Pension and Other Postretirement Benefit Plans The Company accounts for its defined benefit pension and other postretirement benefit plans in accordance with the Retirement Benefits Topic of the ASC, which requires the Company to recognize an asset for overfunded defined benefit pension or other postretirement benefit plans and a liability for unfunded or underfunded plans. In addition, actuarial gains and losses and prior service costs of such plans are recorded in AOCI. The amounts recorded in AOCI will continue to be modified as actuarial assumptions and service costs change, and all such amounts will be amortized to expense over a period of years through the net pension cost (credit) and net periodic benefit cost (credit). See Note 9 for further details. Defined Contribution Savings Plan The Company accounts for its defined contribution savings plan in accordance with the Defined Contribution Plans Subtopic of the Compensation – Retirement Benefits Topic of the ASC. The Company recognized compensation expense for amounts contributed to the defined contribution savings plan. See Note 14 for further details. Environmental Matters Capital expenditures for ongoing environmental compliance measures are recorded in Property, plant and equipment, net, and related expenses are included in the normal operating expenses of conducting business. The Company accrued for environmental-related activities for which commitments or clean-up plans have been developed and when such costs could be reasonably estimated based on industry standards and professional judgment. Accrued amounts are primarily recorded on an undiscounted basis and have not been recorded net of insurance proceeds in accordance with the Offsetting Subtopic of the Balance Sheet Topic of the ASC. Environmental-related expenses include direct costs of investigation and remediation and indirect costs such as compensation and benefits for employees directly involved in the investigation and remediation activities and fees paid to outside engineering, consulting and law firms. See Notes 11 and 20 for further details. Stock-Based Compensation The cost of the Company’s stock-based compensation is recorded in accordance with the Stock Compensation Topic of the ASC. See Note 15 for further details. Other Liabilities The Company retains risk for certain liabilities, primarily workers’ compensation claims, employee medical and disability benefits, and automobile, property, general and product liability claims. Estimated amounts are accrued for certain workers’ compensation, employee medical and disability benefits, automobile and property claims filed but unsettled and estimated claims incurred but not reported. Estimates are based upon management’s estimated aggregate liability for claims incurred using historical experience, actuarial assumptions followed in the insurance industry and actuarially-developed models for estimating certain liabilities. Certain estimated general and product liability claims filed but unsettled are accrued based on management’s best estimate of ultimate settlement or actuarial calculations of potential liability using industry experience and actuarial assumptions developed for similar types of claims. Foreign Currency Translation All consolidated non-highly inflationary foreign operations use the local currency of the country of operation as the functional currency. Local currency asset and liability accounts are translated at year-end exchange rates while income and expense accounts are translated at average exchange rates. The resulting translation adjustments are included in AOCI. Economies with a three-year cumulative inflation rate of more than 100% are considered highly inflationary. For subsidiaries operating in highly inflationary economies, the parent’s reporting currency is the functional currency. Monetary assets and liabilities are translated into U.S. dollars using rates of exchange at the balance sheet date and non-monetary assets and liabilities are translated into U.S. dollars at their historical rates of exchange, with remeasurement adjustments and other transaction gains and losses recognized in Net income. See Note 20 for further details. Revenue Recognition The Company recognizes revenue when performance obligations under the terms of the contract are satisfied. This generally occurs with the transfer of control of our products to the customer. Collectibility of amounts recorded as revenue is probable at the time of recognition. See Note 19 for further details. Customer and Vendor Consideration The Company offers certain customers rebate and sales incentive programs which are classified as reductions in sales. Such programs are in the form of volume rebates, rebates that constituted a percentage of sales or rebates for attaining certain sales goals. The Company receives consideration from certain suppliers of raw materials in the form of volume rebates or rebates that constitute a percentage of purchases. These rebates are recognized on an accrual basis by the Company as a reduction of the purchase price of the raw materials and a subsequent reduction of Cost of goods sold when the related product was sold. Cost of Goods Sold Included in Cost of goods sold are costs for materials, manufacturing, distribution and related support. Distribution costs include expenses related to the distribution of products including inbound freight charges, purchase and receiving costs, warehousing costs, internal transfer costs and other costs incurred to ship products. Also included in Cost of goods sold are research and development costs, quality control, product formulation expenditures and other similar items. Research and development costs were $196.6 million, $119.3 million and $115.9 million for 2023, 2022 and 2021, respectively. Selling, General and Administrative Expenses Selling costs include advertising expenses, marketing costs, employee and store costs and sales commissions. The cost of advertising is expensed as incurred. The Company incurred $394.0 million, $314.4 million and $311.9 million in advertising costs during 2023, 2022 and 2021, respectively. General and administrative expenses include human resources, legal, finance and other support and administrative functions. Government Incentives The Company receives incentives from various government entities in the form of tax rebates or credits, grants and loans. These incentives typically require that the Company maintain specified spending levels and other operational metrics and may be subject to reimbursement if conditions are not met or maintained. Government incentives are recorded in the Company’s consolidated financial statements in accordance with their purpose as a reduction of expense, a reduction of the cost of the capital investment or other income. The benefit of these incentives is recorded when received and all conditions as specified in the agreement are fulfilled. There were $86.6 million of government incentives received as cash payments related to the construction of the Company’s new headquarters and research and development center in 2022. These government incentives were recorded as a reduction in the carrying amount of the respective assets under construction within Property, plant and equipment, net on the Consolidated Balance Sheets and within Other as an investing activity on the Statements of Consolidated Cash Flows. There were no material government incentives received in 2023 or 2021. Supply Chain Financing As part of our strategy to manage working capital, we have entered into agreements with various financial institutions that act as intermediaries between the Company and certain suppliers. The Company is not a party to agreements between the suppliers and the financial institutions. These arrangements provide participating suppliers the option to settle outstanding accounts payable incurred by the Company in the normal course of business early at a discount and do not impact our rights and obligations with suppliers, including amounts due and scheduled payment terms. Under the terms of our agreements, the Company confirms the validity of each supplier invoice to the respective financial institution upon receipt. On the invoice due date, the Company settles the outstanding amount with the respective financial institution. Liabilities associated with these arrangements are recorded in Accounts payable Earnings Per Share Common stock held in a revocable trust (see Note 13) is not included in outstanding shares for basic or diluted income per share calculations. Basic and diluted net income per share are calculated using the treasury stock method in accordance with the Earnings Per Share Topic of the ASC. Basic net income per share amounts are computed based on the weighted-average number of shares outstanding during the year. Diluted net income per share amounts are computed based on the weighted-average number of shares outstanding plus all dilutive securities potentially outstanding during the year. See Note 22 for further details. Reclassifications Certain amounts in the consolidated financial statements and notes to the consolidated financial statements for 2022 and 2021 have been reclassified to conform to the 2023 presentation. |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS | RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS Adopted Effective January 1, 2023, the Company adopted ASU 2022-04, “Liabilities - Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations.” This ASU requires disclosure about an entity’s use of supplier finance programs, including the key terms of the programs and the obligations outstanding at the end of the reporting period. The adoption of ASU 2022-04 did not affect the Company’s financial position, results of operations or cash flows as the standard only impacts financial statement footnote disclosures. See Note 1 for additional information. In addition, a required rollforward of activity within the programs will be disclosed prospectively beginning with the annual period ending December 31, 2024. Effective January 1, 2023, the Company adopted ASU 2021-08, “Business Combinations (Topic 805): Accounting for Contract Assets and Liabilities from Contracts with Customers.” This ASU requires an acquiring entity to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606. The adoption of ASU 2021-08 did not have a material impact on the Company’s financial position, results of operations, cash flows or financial statement footnote disclosures. Not Yet Adopted In March 2023, the FASB issued ASU 2023-02, “Investments - Equity Method and Joint Ventures (Topic 323): Accounting for investments in tax credit structures using the proportional amortization method.” This ASU allows entities to apply the proportional amortization method to all tax equity investments if certain conditions are met. In addition, the ASU requires certain disclosures about the nature and financial implications of tax equity investments on an entity’s financial position, results of operations and cash flows, including the impact of transition on the periods presented, if any. This ASU is effective for fiscal years and interim periods beginning after December 15, 2023, with early adoption permitted. The Company does not expect the adoption of this ASU to have a material impact on the Company’s financial position, results of operations or cash flows and the Company will provide required disclosures, as applicable, in accordance will the provisions of the ASU. In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” This ASU enhances reportable segment disclosures on both an annual and interim basis primarily in regards to the disclosure of significant segment expenses that are regularly provided to the chief operating decision maker (CODM) and included within the reported measure(s) of segment profit or loss. In addition, the ASU requires disclosure, by segment, of other items included in the reported measure(s) of segment profit or loss, including qualitative information describing the composition, nature and type of each item. The ASU also expands disclosure requirements related to the CODM, including how the reported measure(s) of segment profit or loss are used to assess segment performance and allocate resources, the method used to allocate overhead for significant segment expenses and others. Lastly, all current required annual segment reporting disclosures under Topic 280 are now effective for interim periods. The ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is evaluating the impact of adopting this ASU. In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” This ASU enhances income tax disclosures by providing information to better assess how an entity’s operations, related tax risks, tax planning and operational opportunities affect its tax rate and prospects for future cash flows. This ASU requires additional disclosures to the annual effective tax rate reconciliation including specific categories and further disaggregated reconciling items that meet the quantitative threshold. Additionally, the ASU requires disclosures relating to income tax expense and payments made to federal, state, local and foreign jurisdictions. This ASU is effective for fiscal years and interim periods beginning after December 15, 2024. The Company is evaluating the impact of adopting this ASU. |
Acquisitions and Divestitures
Acquisitions and Divestitures | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
ACQUISITIONS AND DIVESTITURES | ACQUISITIONS AND DIVESTITURES Acquisitions Closed in Current Year In October 2023, the Company completed the acquisition of German-based SIC Holding GmbH, a Peter Möhrle Holding venture comprised of Oskar Nolte GmbH and Klumpp Coatings GmbH (SIC Holding). This business specializes in foil coatings as well as radiation-cured and waterbased industrial wood coatings for the board, furniture and flooring industry. The Company funded the acquisition with approximately $265 million in cash. The purchase price is subject to certain closing conditions which are expected to be finalized in 2024. As of December 31, 2023, $110.8 million of finite-lived intangible assets, $154.2 million of goodwill, $46.1 million of other assets, net of cash and $46.7 million of liabilities were recognized from this transaction. The Company expects to finalize the purchase price allocation for the acquisition within the allowable measurement period. SIC Holding is reported within the Company’s Performance Coatings Group and the results of operations for the acquisition have been included in the consolidated financial statements since the acquisition date. Pro forma results of operations have not been presented as the impact on the Company’s consolidated financial results is not material. Closed in 2022 In April 2022, the Company completed the acquisition of the European industrial coatings business of Sika AG. In July 2022, the Company completed the acquisitions of Gross & Perthun GmbH, Dur-A-Flex, Inc. and Powdertech Oy Ltd. In December 2022, the Company completed the acquisition of Industria Chimica Adriatica S.p.A. (ICA). The aggregate purchase price for the acquisitions completed in 2022 was approximately $1.024 billion, including amounts withheld as security for certain representations, warranties and obligations of the sellers. The purchase price for each acquisition was preliminarily allocated to identifiable assets and liabilities based on information available at the date of acquisition. As of December 31, 2022, $282.8 million of intangible assets and $565.8 million of goodwill were recognized from these transactions. During 2023, the Company revised the purchase price allocation from Goodwill to the various net assets acquired through its 2022 acquisition of ICA. Goodwill decreased $145.9 million and deferred tax liabilities increased $57.4 million, partially offset by an increase in finite-lived intangible assets of $195.9 million, with the remaining purchase price allocated to various other assets acquired and liabilities assumed in the transaction. There was no material impact on previously reported financial results from these adjustments. Furthermore, in accordance with certain purchase agreements, the Company paid $29.2 million in 2023 related to holdbacks for acquisitions completed in prior years. The Company finalized the purchase price allocation for Sika AG, Gross & Perthun GmbH, Dur-A-Flex, Inc., Powdertech Oy Ltd. and ICA within the allowable measurement period. These businesses are reported within the Company’s Performance Coatings Group and the results of operations for these acquisitions have been included in the consolidated financial statements since the respective acquisition dates. Pro forma results of operations have not been presented as the impact on the Company’s consolidated financial results is not material. Closed in 2021 In February 2021, the Company completed the acquisition of a domestic coatings company. The acquisition expanded the Company’s platform for growth and portfolio of brands and technologies. In December 2021, the Company completed the acquisition of Specialty Polymers, Inc. (Specialty Polymers), a leading manufacturer and developer of water-based polymers used in architectural and industrial coatings and other applications. The acquisition added to the Company’s existing internal resin manufacturing capabilities. The aggregate purchase price for acquisitions completed in 2021 was approximately $227.0 million, including amounts withheld as security for certain representations, warranties and obligations of the sellers. The purchase price for each acquisition was preliminarily allocated to identifiable assets and liabilities based on information available at the date of acquisition. As of December 31, 2021, $155.6 million of goodwill and $11.3 million of intangible assets were recognized from these transactions. During 2022, the Company made certain adjustments to the preliminary purchase accounting adjustments associated with the net assets acquired in its 2021 acquisition of Specialty Polymers. The fair value of finite-lived intangible assets increased by $61.3 million and property, plant and equipment assets acquired increased by $11.0 million, offset by a corresponding net decrease in goodwill. There was no material impact on previously reported financial results from these adjustments. The Company completed the preliminary purchase price allocation for the acquisitions completed in 2021 within the allowable measurement period. These businesses are reported within the Company’s Performance Coatings Group and the results of operations for these acquisitions have been included in the consolidated financial statements since the respective acquisition dates. Pro forma results of operations have not been presented as the impact on the Company’s consolidated financial results is not material. Divestitures Closed in Current Year The Company completed the divestiture of a non-core domestic aerosol business within the Consumer Brands Group in April 2023. This transaction resulted in the recognition of a $20.1 million gain within the Administrative segment. This gain was recorded within Other general expense (income) - net (see Note 20). In April 2023, the Company signed a definitive agreement to divest the China architectural business within the Consumer Brands Group, with annual revenue of approximately $100 million and 300 employees. The associated net assets were classified as held for sale at June 30, 2023 in accordance with the Property, Plant, and Equipment Topic of the ASC. Following the prescribed order of impairment testing, the Company first reviewed individual tangible and intangible assets under their applicable Topic of the ASC to determine if their carrying value was higher than their respective fair value. As a result, the Company recorded an impairment charge of $6.9 million within the Consumer Brands Group related to China architectural trademarks. The Company then compared the updated carrying value of the assets and liabilities comprising the disposal group as a whole to its respective fair value which was determined to be equal to the selling price, less costs to sell. The fair value of the disposal group was classified as level 2 in the fair value hierarchy as it was based on a specific price and other observable inputs for similar items with no active market. As a result of this comparison, the Company recorded an additional impairment charge of $27.1 million within the Administrative segment. During the third quarter of 2023, the Company completed the divestiture of the China architectural business. The Company expects to finalize an immaterial working capital adjustment during 2024. These divestitures did not meet the criteria to be reported as discontinued operations in the consolidated financial statements as the Company’s decision to divest these businesses did not represent a strategic shift that will have a major effect on the Company’s operations and financial results. Closed in 2021 |
Restructuring
Restructuring | 12 Months Ended |
Dec. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING | RESTRUCTURING In the fourth quarter of 2022, the Company announced a business restructuring plan (Restructuring Plan) to simplify the Company’s operating model and portfolio of brands within the Consumer Brands Group and to reduce costs in all regions in the Consumer Brands Group, Performance Coatings Group and the Administrative segment. The actions taken under the Restructuring Plan better position the Company to continue to add long-term shareholder value. Key focus areas within the Consumer Brands Group included the China architectural business, aerosol portfolio and optimization of the overall retail portfolio. Multiple alternatives were considered to determine the course of action related to the focus areas. The Company ultimately determined that divestiture, rather than restructuring, of a non-core domestic aerosol business and the China architectural business was the highest and best use of resources to drive long-term shareholder value. For more information on these divestitures, see Note 3. As of December 31, 2023, the Restructuring Plan is complete and no further expense will be incurred. The following table summarizes the activity associated with the Restructuring Plan: Consumer Brands Performance Administrative Total Balance at January 1, 2022 $ — $ — $ — $ — Provisions: Severance and related costs 14.5 19.5 — 34.0 Other qualified costs 11.1 2.7 — 13.8 Total 25.6 22.2 — 47.8 Payments, currency, and other adjustments — (6.1) — (6.1) Balance at December 31, 2022 25.6 16.1 — 41.7 Provisions: Severance and related costs 3.6 (0.2) 1.3 4.7 Other qualified costs 10.6 — — 10.6 Total 14.2 (0.2) 1.3 15.3 Payments, currency, and other adjustments (39.8) (15.9) (1.3) (57.0) Balance at December 31, 2023 $ — $ — $ — $ — Total expense incurred $ 39.8 $ 22.0 $ 1.3 $ 63.1 In addition to the provisions above, which were primarily recorded in Cost of goods sold and Selling, general and administrative expense, trademark impairment related to the Restructuring Plan of $15.5 million was also recorded in the Consumer Brands Group in 2022. See Note 7 for further information. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES Included in Inventories were the following: 2023 2022 2021 Finished goods $ 1,810.9 $ 1,957.7 $ 1,378.8 Work in process and raw materials 518.9 668.8 548.4 Inventories $ 2,329.8 $ 2,626.5 $ 1,927.2 Inventories were stated at the lower of cost or net realizable value, with cost primarily determined on the LIFO method. Management believes that the use of LIFO results in a better matching of costs and revenues. The following table summarizes the extent to which the Company’s Inventories use the LIFO cost method, and presents the effect on Inventories had the Company used the first-in, first-out (FIFO) inventory valuation method. 2023 2022 2021 Percentage of total inventories on LIFO 74 % 74 % 70 % Excess of FIFO over LIFO $ 668.0 $ 792.7 $ 593.0 During 2023 and 2021, certain inventories accounted for on the LIFO method were reduced, resulting in the liquidation of certain quantities carried at costs prevailing in prior years. The 2023 and 2021 liquidations increased Net income in those years by $1.2 million and $25.8 million, respectively. The Company recorded a reserve for obsolescence of $170.8 million, $139.0 million and $118.6 million at December 31, 2023, 2022 and 2021, respectively, to reduce Inventories to their estimated net realizable value. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT Included in Property, plant and equipment, net were the following: 2023 2022 2021 Land $ 257.5 $ 263.0 $ 257.7 Buildings 1,048.7 1,199.3 1,157.8 Machinery and equipment 3,459.8 3,230.2 3,043.6 Construction in progress 1,111.0 496.1 205.4 Property, plant and equipment, gross 5,877.0 5,188.6 4,664.5 Less allowances for depreciation 3,040.2 2,981.6 2,797.2 Property, plant and equipment, net $ 2,836.8 $ 2,207.0 $ 1,867.3 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS In October 2023, the Company completed the acquisition of SIC Holding, which resulted in the recognition of goodwill of $154.2 million and finite-lived intangibles of $110.8 million. The acquired intangibles are being amortized over a weighted-average useful life of approximately 15 years. In addition, during 2023, the Company divested a non-core domestic aerosol business and its China architectural business. During 2022, the Company acquired five companies which resulted in the recognition of goodwill of $565.8 million and finite-lived intangibles of $282.8 million. As a result of certain adjustments to the preliminary purchase price accounting during 2023, goodwill decreased $145.9 million and the fair value of finite-lived intangible assets increased by $195.9 million. The acquired intangibles are being amortized over a weighted-average useful life of approximately 14 years. During 2021, the Company acquired two companies which resulted in the recognition of goodwill of $155.6 million and finite-lived intangibles of $11.3 million. As a result of certain adjustments to the preliminary purchase accounting during 2022, goodwill decreased by $72.3 million and the fair value of finite-lived intangibles assets increased by $61.3 million. In addition, during 2021, the Company divested its Wattyl business in Australia and New Zealand. See Note 3 for additional information related to the acquisitions and divestitures. In accordance with the Goodwill and Other Intangibles Topic of the ASC, goodwill at the reporting unit level and indefinite-lived intangible assets are tested for impairment annually. In addition, interim impairment tests are performed whenever required as a result of a specific event or circumstances which indicate potential impairment on a more likely than not basis. October 1 has been established for the annual impairment review. An optional qualitative assessment may alleviate the need to perform quantitative goodwill and indefinite-lived intangible asset impairment tests when there is no indication of impairment on a more likely than not basis. Should a quantitative impairment test be performed, values are estimated separately for goodwill and indefinite-lived intangible assets using applicable valuation models, incorporating discount rates commensurate with the risks involved for each group of assets. As a result of the Latin America architectural paint business moving to the Consumer Brands Group reportable segment effective January 1, 2023, the Company performed a quantitative impairment analysis for the impacted reporting units and determined both before and after the change, there was no indication of impairment. The annual impairment review performed as of October 1, 2023 resulted in no goodwill impairment and trademark impairment of $23.9 million in the Consumer Brands Group primarily related to a trademark in Europe. The annual impairment review performed as of October 1, 2022, which incorporated the impact of the Restructuring Plan, resulted in trademark impairments totaling $15.5 million in the Consumer Brands Group related to the discontinuation of an architectural paint brand and lower than anticipated sales of an acquired brand and no goodwill impairment. The annual impairment review performed as of October 1, 2021 did not result in any trademark or goodwill impairment. A summary of changes in the Company’s carrying value of goodwill by Reportable Segment is as follows: Goodwill Paint Stores Group Consumer Brands Performance Coatings Consolidated Balance at January 1, 2021 (1) $ 2,256.6 $ 1,754.6 $ 3,037.9 $ 7,049.1 Reclassification related to segment change (2) (74.5) 74.5 — Acquisitions 155.6 155.6 Currency and other adjustments (45.7) (24.4) (70.1) Balance at December 31, 2021 (1) 2,182.1 1,783.4 3,169.1 7,134.6 Acquisitions and acquisition adjustments 49.7 21.3 422.5 493.5 Currency and other adjustments (2.8) (42.1) (44.9) Balance at December 31, 2022 (1) 2,231.8 1,801.9 3,549.5 7,583.2 Acquisitions and acquisition adjustments 8.3 8.3 Currency and other adjustments (9.1) 43.6 34.5 Balance at December 31, 2023 (1) $ 2,231.8 $ 1,792.8 $ 3,601.4 $ 7,626.0 (1) Net of accumulated impairment losses of $19.4 million ($10.2 million in Paint Stores Group, $8.4 million in Consumer Brands Group and $0.8 million in Performance Coatings Group). (2) Effective January 1, 2023, the Company realigned its organizational structure to manage the Latin America architectural paint business within the Consumer Brands Group. Goodwill balances have been retrospectively adjusted to reflect the change. See Note 23. A summary of the Company’s carrying value of intangible assets is as follows: Finite-Lived Intangible Assets Trademarks With Indefinite Lives (1) Total Software Customer Intellectual All Other Subtotal December 31, 2023 Gross $ 158.2 $ 3,263.4 $ 1,968.5 $ 232.6 $ 5,622.7 Accumulated amortization (152.8) (1,310.6) (644.4) (152.9) (2,260.7) Net value $ 5.4 $ 1,952.8 $ 1,324.1 $ 79.7 $ 3,362.0 $ 518.5 $ 3,880.5 December 31, 2022 Gross $ 180.2 $ 3,121.2 $ 1,732.5 $ 427.5 $ 5,461.4 Accumulated amortization (148.1) (1,132.1) (477.4) (258.0) (2,015.6) Net value $ 32.1 $ 1,989.1 $ 1,255.1 $ 169.5 $ 3,445.8 $ 556.2 $ 4,002.0 December 31, 2021 Gross $ 166.0 $ 3,005.7 $ 1,730.3 $ 303.5 $ 5,205.5 Accumulated amortization (149.3) (961.6) (396.5) (279.7) (1,787.1) Net value $ 16.7 $ 2,044.1 $ 1,333.8 $ 23.8 $ 3,418.4 $ 583.1 $ 4,001.5 (1) Trademarks are net of accumulated impairment losses of $ 163.8 million Amortization of finite-lived intangible assets is estimated as follows for the next five years: $329.4 million in 2024, $321.7 million in 2025, $318.0 million in 2026, $314.0 million in 2027 and $307.7 million in 2028. Although the Company believes its estimates of fair value related to reporting units and indefinite-lived intangible assets are reasonable, actual financial results could differ from those estimates due to the inherent uncertainty involved in making such estimates. Changes in assumptions concerning future financial results or other underlying assumptions could have a significant impact and future impairment charges may be required. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Long-Term Debt The table below summarizes the carrying value of the Company’s outstanding debt, net of capitalized debt issuance costs and discounts: Due Date 2023 2022 2021 3.45% Senior Notes 2027 $ 1,493.9 $ 1,492.1 $ 1,490.4 4.50% Senior Notes 2047 1,233.0 1,232.3 1,231.6 2.95% Senior Notes 2029 794.6 793.6 792.6 4.05% Senior Notes 2024 598.8 596.9 — 3.80% Senior Notes 2049 543.6 543.2 543.0 3.125% Senior Notes 2024 499.7 499.0 498.3 2.30% Senior Notes 2030 497.1 496.7 496.2 2.20% Senior Notes 2032 494.8 494.2 493.6 3.30% Senior Notes 2050 494.3 494.1 493.9 2.90% Senior Notes 2052 491.9 491.5 491.3 3.45% Senior Notes 2025 399.4 399.1 398.7 4.25% Senior Notes 2025 398.6 397.7 — 4.55% Senior Notes 2045 395.2 395.0 394.7 3.95% Senior Notes 2026 353.1 354.7 356.2 4.00% Senior Notes 2042 297.0 296.9 296.7 3.30% Senior Notes 2025 249.9 249.8 249.6 4.40% Senior Notes 2045 240.9 240.5 240.0 0.53% to 8.00% Promissory Notes Through 2026 0.9 1.6 2.0 7.375% Debentures 2027 — 119.2 119.2 7.45% Debentures 2097 — 3.5 3.5 2.75% Senior Notes 2022 — — 260.0 Total (1) 9,476.7 9,591.6 8,851.5 Less amounts due within one year 1,098.8 0.6 260.6 Long-term debt $ 8,377.9 $ 9,591.0 $ 8,590.9 (1) Net of capitalized debt issuance costs of $49.3 million, $57.3 million and $57.6 million and net of discounts of $25.2 million, $25.7 million, and $26.0 million at December 31, 2023, 2022 and 2021, respectively. Maturities of long-term debt are as follows for the next five years: $1.100 billion in 2024; $1.051 billion in 2025; $350.1 million in 2026; $1.500 billion in 2027 and none in 2028. Interest expense on long-term debt was $374.6 million, $348.4 million and $320.4 million for 2023, 2022 and 2021, respectively. In December 2023, the Company exercised its call provision to make-whole the entire outstanding $119.4 million aggregate principal amount of its 7.375% Debentures due 2027 and the entire outstanding $3.5 million aggregate principal amount of its 7.45% Debentures due 2097. The retirement of the Debentures resulted in a loss of $12.8 million recorded in Other general expense (income) - net. See Note 20. In August 2022, the Company issued $600.0 million of 4.05% Senior Notes due August 2024 and $400.0 million of 4.25% Senior Notes due August 2025 in a public offering. The net proceeds from the issuance of these notes were used to repay borrowings outstanding under the Company’s credit agreement dated May 9, 2016, as amended, and the domestic commercial paper program. In November 2021, the Company issued $500.0 million of 2.20% Senior Notes due March 2032 and $500.0 million of 2.90% Senior Notes due March 2052 in a public offering. The net proceeds from the issuance of these notes were used to repay outstanding borrowings under the Company’s domestic commercial paper program. In October 2021, the Company exercised its optional redemption rights to redeem the entire outstanding $400.0 million aggregate principal amount of its 4.20% Senior Notes due 2022 and its 4.20% Notes due 2022 initially issued by The Valspar Corporation (collectively, the 4.20% Senior Notes). The 4.20% Senior Notes were redeemed at a redemption price equal to 100% of the principal amount, plus accrued interest, and resulted in a gain of $1.4 million recorded in Other expense (income) - net . See Note 20. Among other restrictions, the Company’s notes, debentures and revolving credit agreement contain certain covenants relating to liens, ratings changes, merger and sale of assets, consolidated leverage and change of control, as defined in the agreements. In the event of default under any one of these arrangements, acceleration of the maturity of any one or more of these borrowings may result. The Company was in compliance with all covenants for all years presented. Short-Term Borrowings On August 30, 2022, the Company and two of its wholly-owned subsidiaries, Sherwin-Williams Canada Inc. (SW Canada) and Sherwin-Williams Luxembourg S.à r.l. (SW Luxembourg, together with the Company and SW Canada, the Borrowers), entered into a new five-year $2.250 billion credit agreement (2022 Credit Agreement). The 2022 Credit Agreement may be used for general corporate purposes, including the financing of working capital requirements. The 2022 Credit Agreement replaced the $2.000 billion credit agreement dated June 29, 2021, as amended, which was terminated effective August 30, 2022. The 2022 Credit Agreement will mature on August 30, 2027 and provides that the Company may request to extend the maturity date of the facility for two additional one-year periods. In addition, the 2022 Credit Agreement provides that the Borrowers may increase the aggregate size of the facility up to an additional amount of $750.0 million, subject to the discretion of each lender to participate in the increase, and the Borrowers may request letters of credit in an amount of up to $250.0 million. On August 2, 2021, the Company entered into an amended and restated $625.0 million credit agreement (2021 Credit Agreement), which amends and restates the five-year credit agreement entered into in September 2017. The 2021 Credit Agreement was subsequently amended on multiple dates to extend the maturity of commitments available for borrowing or letters of credit under the agreement. On May 9, 2016, the Company entered into a five-year credit agreement (2016 Credit Agreement), subsequently amended on multiple dates to extend the maturity of commitments available for borrowing or letters of credit under the agreement. The 2016 credit agreement gives the Company the right to borrow and obtain letters of credit up to an aggregate availability of $875.0 million. These credit agreements are being used for general corporate purposes. At December 31, 2023, 2022 and 2021, there were no borrowings outstanding under these credit agreements. The Company’s available capacity under its committed credit agreements is reduced for amounts outstanding under its domestic commercial paper program and letters of credit. At December 31, 2023, the Company had unused capacity under its various credit agreements of $3.332 billion. The table below summarizes the Company’s Short-term borrowings: 2023 2022 2021 Domestic commercial paper $ 347.7 $ 938.5 $ 739.9 Foreign facilities 26.5 39.6 23.6 Total $ 374.2 $ 978.1 $ 763.5 Weighted average interest rate: Domestic 5.5 % 4.6 % 0.3 % Foreign 3.6 % 6.7 % 9.5 % Interest expense on Short-term borrowings was $42.9 million, $42.4 million and $14.3 million for 2023, 2022 and 2021, respectively. |
Pension, Health Care and Other
Pension, Health Care and Other Postretirement Benefits | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
PENSION, HEALTH CARE AND OTHER POSTRETIREMENT BENEFITS | PENSION, HEALTH CARE AND OTHER POSTRETIREMENT BENEFITS The Company provides pension benefits to substantially all full-time employees through primarily noncontributory defined contribution or defined benefit pension plans and certain health care and life insurance benefits to domestic active employees and eligible retirees. Health Care Plans The Company provides certain domestic health care plans that are contributory and contain cost-sharing features such as deductibles and coinsurance. There were 31,327, 30,009 and 29,016 active employees covered by the benefits under these plans at December 31, 2023, 2022 and 2021, respectively. The cost of these benefits for active employees, which includes claims incurred but not reported, amounted to $363.2 million, $347.4 million and $336.0 million for 2023, 2022 and 2021, respectively. Defined Contribution Pension Plans The Company’s annual contribution for its domestic defined contribution pension plan was $97.8 million, $88.9 million and $85.3 million for 2023, 2022 and 2021, respectively. The contribution percentage ranges from two percent to seven percent of compensation for covered employees based on an age and service formula. Assets in employee accounts of the domestic defined contribution pension plan are invested in various investment funds as directed by the participants. These investment funds did not own a significant number of shares of the Company’s common stock for any year presented. The Company’s annual contributions for its foreign defined contribution pension plans, which are based on various percentages of compensation for covered employees up to certain limits, were $19.5 million, $19.4 million and $17.9 million for 2023, 2022 and 2021, respectively. Assets in employee accounts of the foreign defined contribution pension plans are invested in various investment funds. These investment funds did not own a significant number of shares of the Company’s common stock for any year presented. Defined Benefit Pension Plans At December 31, 2023, the domestic defined benefit pension plan was overfunded, with a projected benefit obligation of $102.1 million, fair value of plan assets of $135.1 million and excess plan assets of $33.0 million. The plan was funded in accordance with all applicable regulations at December 31, 2023. The Company has thirty-three foreign defined benefit pension plans. At December 31, 2023, twenty-six of the Company’s foreign defined benefit pension plans were unfunded or underfunded, with combined accumulated benefit obligations, projected benefit obligations, fair values of net assets and deficiencies of plan assets of $76.0 million, $89.4 million, $20.4 million and $69.0 million, respectively. The Company expects to make the following benefit payments for all domestic and foreign defined benefit pension plans: $17.7 million in 2024; $17.5 million in 2025; $18.7 million in 2026; $20.0 million in 2027; $21.2 million in 2028; and $133.1 million in 2029 through 2033. The Company expects to contribute $6.1 million to the foreign defined benefit pension plans in 2024. The estimated net actuarial gains and prior service costs for the defined benefit pension plans that are expected to be amortized from AOCI into net pension costs in 2024 are $(1.4) million and $1.8 million, respectively. The following table summarizes the components of the net pension costs and AOCI related to the defined benefit pension plans: Domestic Foreign 2023 2022 2021 2023 2022 2021 Net pension cost: Service cost $ 3.0 $ 4.6 $ 4.9 $ 4.4 $ 6.3 $ 7.4 Interest cost 4.6 3.2 2.7 11.8 7.3 5.7 Expected return on plan assets (7.3) (7.6) (7.1) (12.3) (9.4) (9.6) Amortization of prior service cost (credit) 1.3 1.0 1.1 (0.2) (0.2) (0.1) Amortization of actuarial (gains) losses (1.5) 0.2 1.5 Ongoing pension cost 1.6 1.2 1.6 2.2 4.2 4.9 Settlement (credits) costs (1.1) (0.3) 0.3 Net pension cost 1.6 1.2 1.6 1.1 3.9 5.2 Other changes in plan assets and projected benefit obligation recognized in AOCI (before taxes): Net actuarial (gains) losses arising during the year (8.6) 5.0 (10.5) 5.8 (29.6) (44.9) Prior service cost (credit) arising during the year 3.0 1.6 1.4 1.1 (0.3) (1.0) Amortization of actuarial gains (losses) 1.5 (0.2) (1.5) Amortization of prior service (cost) credit (1.3) (1.0) (1.1) 0.2 0.2 0.1 Loss (gain) recognized for settlement 1.1 0.3 (0.3) Exchange rate (loss) recognized during the year (1.5) (0.4) (0.6) Total recognized in AOCI (6.9) 5.6 (10.2) 8.2 (30.0) (48.2) Total recognized in net pension cost and AOCI $ (5.3) $ 6.8 $ (8.6) $ 9.3 $ (26.1) $ (43.0) Service cost is recorded in Cost of goods sold and Selling, general and administrative expense. All other components of Net pension costs are recorded in Other expense (income) - net. The Company employs a total return investment approach for the domestic and foreign defined benefit pension plan assets. A mix of equities and fixed income investments are used to maximize the long-term return of assets for a prudent level of risk. In determining the expected long-term rate of return on defined benefit pension plan assets, management considers the historical rates of return, the nature of investments and an expectation of future investment strategies. The target allocations for plan assets are 30% – 65% equity securities, 35% – 70% fixed income securities and 0% – 5% other (including alternative investments and cash). The following tables summarize the fair value of the defined benefit pension plan assets at December 31, 2023, 2022 and 2021. The presentation is in accordance with the Fair Value Topic of the ASC. Fair Value at December 31, 2023 Quoted Prices Significant Significant Investments at fair value: Equity investments (1) $ 133.0 $ 72.9 $ 60.1 Fixed income investments (2) 188.9 36.8 152.1 Other assets (3) 34.6 34.6 Total investments in fair value hierarchy 356.5 $ 109.7 $ 246.8 Investments measured at NAV or its equivalent (4) 25.3 Total investments $ 381.8 Fair Value at December 31, 2022 Quoted Prices Significant Significant Investments at fair value: Equity investments (1) $ 80.1 $ 8.5 $ 71.6 Fixed income investments (2) 117.6 117.6 Other assets (3) 34.4 34.4 Total investments in fair value hierarchy 232.1 $ 8.5 $ 223.6 Investments measured at NAV or its equivalent (4) 110.9 Total investments $ 343.0 Fair Value at December 31, 2021 Quoted Prices Significant Significant Investments at fair value: Equity investments (1) $ 133.1 $ 13.5 $ 119.6 Fixed income investments (2) 172.1 172.1 Other assets (3) 36.7 36.7 Total investments in fair value hierarchy 341.9 $ 13.5 $ 328.4 Investments measured at NAV or its equivalent (4) 141.7 Total investments $ 483.6 (1) This category includes actively managed equity assets that track primarily to the S&P 500 or an international equity index. (2) This category includes government and corporate bonds that track primarily to the Barclays Capital Aggregate Bond Index or an international bond index. (3) This category includes real estate and pooled investment funds. (4) This category includes pooled investment funds and private equity funds that are measured at NAV or its equivalent using the practical expedient. Therefore, these investments are not classified in the fair value hierarchy. The following table summarizes the obligations, plan assets and assumptions used for the defined benefit pension plans, which are all measured as of December 31: Domestic Foreign 2023 2022 2021 2023 2022 2021 Accumulated benefit obligations at end of year $ 100.5 $ 90.3 $ 117.0 $ 236.4 $ 209.3 $ 334.8 Projected benefit obligations: Balances at beginning of year $ 91.7 $ 120.8 $ 118.6 $ 230.4 $ 362.7 $ 401.1 Service cost 3.0 4.6 4.9 4.4 6.3 7.4 Interest cost 4.6 3.2 2.7 11.8 7.3 5.7 Actuarial losses (gains) 2.8 (32.6) (2.8) 8.8 (112.4) (26.0) Contributions and other 3.0 1.6 1.4 2.0 3.2 (4.6) Settlements (3.7) (2.4) (1.7) Effect of foreign exchange 14.1 (28.8) (9.8) Benefits paid (3.0) (5.9) (4.0) (10.0) (5.5) (9.4) Balances at end of year 102.1 91.7 120.8 257.8 230.4 362.7 Plan assets: Balances at beginning of year 119.4 155.2 144.3 223.6 328.4 318.2 Actual returns on plan assets 18.7 (29.9) 14.9 15.4 (73.4) 27.9 Contributions and other 8.6 5.8 (1.1) Settlements (3.7) (2.4) (1.7) Effect of foreign exchange 12.8 (29.3) (5.5) Benefits paid (3.0) (5.9) (4.0) (10.0) (5.5) (9.4) Balances at end of year 135.1 119.4 155.2 246.7 223.6 328.4 Excess (deficient) plan assets over projected benefit obligations $ 33.0 $ 27.7 $ 34.4 $ (11.1) $ (6.8) $ (34.3) Assets and liabilities recognized in the Consolidated Balance Sheets: Deferred pension assets $ 33.0 $ 27.7 $ 34.4 $ 57.9 $ 51.7 $ 44.7 Other accruals (3.4) (3.0) (3.3) Other long-term liabilities (65.6) (55.5) (75.7) $ 33.0 $ 27.7 $ 34.4 $ (11.1) $ (6.8) $ (34.3) Amounts recognized in AOCI: Net actuarial gains $ 16.6 $ 8.0 $ 13.0 $ 24.8 $ 31.7 $ 1.9 Prior service (costs) credits (8.8) (7.1) (6.5) 0.3 1.6 1.4 $ 7.8 $ 0.9 $ 6.5 $ 25.1 $ 33.3 $ 3.3 Weighted-average assumptions used to determine projected benefit obligations: Discount rate 5.09 % 5.27 % 3.12 % 4.81 % 5.06 % 2.26 % Rate of compensation increase 3.00 % 3.00 % 3.00 % 3.33 % 3.39 % 3.25 % Weighted-average assumptions used to determine net pension cost: Discount rate 5.27 % 3.12 % 2.85 % 5.06 % 2.26 % 1.63 % Expected long-term rate of return on assets 6.25 % 5.00 % 5.00 % 5.48 % 3.19 % 3.17 % Rate of compensation increase 3.00 % 3.00 % 3.00 % 3.39 % 3.25 % 2.91 % Other Postretirement Benefits Employees of the Company hired in the United States prior to January 1, 1993 who are not members of a collective bargaining unit, and certain groups of employees added through acquisitions, are eligible for health care and life insurance benefits upon retirement, subject to the terms of the unfunded plans. There were 3,367, 3,409 and 3,410 retired employees covered by these postretirement benefits at December 31, 2023, 2022 and 2021, respectively. The following table summarizes the obligation and the assumptions used for other postretirement benefits: Other Postretirement Benefits 2023 2022 2021 Benefit obligation: Balance at beginning of year - unfunded $ 153.8 $ 276.4 $ 291.6 Service cost 0.6 1.2 1.4 Interest cost 7.4 6.0 4.9 Actuarial gain (8.0) (54.5) (4.1) Plan amendments (62.8) (2.2) Benefits paid (6.6) (12.5) (15.2) Balance at end of year - unfunded $ 147.2 $ 153.8 $ 276.4 Liabilities recognized in the Consolidated Balance Sheets: Other accruals $ (14.0) $ (14.5) $ (17.0) Postretirement benefits other than pensions (133.2) (139.3) (259.4) $ (147.2) $ (153.8) $ (276.4) Amounts recognized in AOCI: Net actuarial gains (losses) $ 12.9 $ 4.7 $ (54.0) Prior service credits 40.0 64.0 1.6 $ 52.9 $ 68.7 $ (52.4) Weighted-average assumptions used to determine benefit obligation: Discount rate 4.97 % 5.16 % 2.83 % Health care cost trend rate - pre-65 7.00 % 6.25 % 6.38 % Health care cost trend rate - post-65 6.00 % 5.50 % 5.13 % Prescription drug cost increases 9.00 % 8.25 % 8.25 % Employer Group Waiver Plan (EGWP) trend rate N/A N/A 8.25 % Weighted-average assumptions used to determine net periodic benefit cost: Discount rate 5.16 % 2.83 % 2.49 % Health care cost trend rate - pre-65 6.25 % 6.38 % 6.06 % Health care cost trend rate - post-65 5.50 % 5.13 % 5.13 % Prescription drug cost increases 8.25 % 8.25 % 8.25 % The following table summarizes the components of the net periodic benefit cost and AOCI related to other postretirement benefits: Other Postretirement Benefits 2023 2022 2021 Net periodic benefit cost: Service cost $ 0.6 $ 1.2 $ 1.4 Interest cost 7.4 6.0 4.9 Amortization of actuarial losses 0.1 4.2 4.7 Amortization of prior service (credit) cost (23.9) (0.4) 0.3 Net periodic benefit cost (15.8) 11.0 11.3 Other changes in projected benefit obligation recognized in AOCI (before taxes): Net actuarial gain arising during the year (8.0) (54.5) (4.1) Prior service (credit) arising during the year (62.8) (2.2) Amortization of actuarial losses (0.1) (4.2) (4.7) Amortization of prior service credit (cost) 23.9 0.4 (0.3) Total recognized in AOCI 15.8 (121.1) (11.3) Total recognized in net periodic benefit cost and AOCI $ — $ (110.1) $ — The estimated net actuarial gains and prior service credits for other postretirement benefits that are expected to be amortized from AOCI into net periodic benefit cost in 2024 are $(0.3) million and $(23.9) million, respectively. The assumed health care cost trend rate and prescription drug cost increases used to determine the net periodic benefit cost for postretirement health care benefits for 2024 both decrease in each successive year until reaching 4.5% in 2032. The Company expects to make retiree health care benefit cash payments as follows: 2024 $ 14.0 2025 14.9 2026 14.8 2027 14.4 2028 13.7 2029 through 2033 53.4 Total expected benefit cash payments $ 125.2 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
LEASES | LEASES The Company leases retail stores, manufacturing and distribution facilities, office space and equipment under operating lease agreements. Operating lease right-of-use (ROU) assets and lease liabilities are recognized based on the present value of lease payments over the lease term. The majority of the ROU asset and lease liability balances relate to the retail operations of the Paint Stores Group. Most leases include one or more options to renew. The exercise of lease renewal options is at the Company’s discretion and is not reasonably certain at lease commencement. The Company does not account for lease and non-lease components of contracts separately for any underlying asset class. Some leases have variable payments, however, because they are not based on an index or rate, they are not included in the ROU assets and liabilities. Variable payments for real estate leases relate primarily to common area maintenance, insurance, taxes and utilities associated with the properties. Variable payments for equipment leases relate primarily to hours, miles or other quantifiable usage factors which are not determinable at the time the lease agreement is entered into by the Company. The Company has made an accounting policy election by underlying asset class to not apply the recognition requirements of ASC 842 to short-term leases. As a result, certain leases with a term of 12 months or less are not recorded on the Consolidated Balance Sheets and expense is recognized on a straight-line basis over the lease term. Most leases do not contain an incremental borrowing rate which is readily determinable from their associated contract. Therefore, the Company uses its estimated incremental borrowing rate on a collateralized basis which is derived from information available at the lease commencement date, giving consideration to publicly available credit rating data, other risk characteristics and the term of the lease in determining the present value of lease payments. Additional lease information is summarized below: 2023 2022 2021 Operating lease cost $ 528.5 $ 498.0 $ 478.0 Short-term lease cost 58.5 47.1 43.8 Variable lease cost 104.1 89.9 84.4 Operating cash outflows from operating leases $ 513.8 $ 480.1 $ 461.4 Leased assets obtained in exchange for new operating lease liabilities $ 473.3 $ 463.1 $ 505.2 Weighted average remaining lease term 5.5 years 5.6 years 5.8 years Weighted average discount rate 3.8 % 3.3 % 3.0 % The following table reconciles the undiscounted cash flows for each of the next five years and thereafter to the operating lease liabilities recognized on the Consolidated Balance Sheets as of December 31, 2023. The reconciliation excludes short-term leases that are not recorded on the Consolidated Balance Sheets. Year Ending December 31, 2024 $ 513.5 2025 449.3 2026 367.3 2027 279.7 2028 195.8 Thereafter 383.9 Total lease payments 2,189.5 Amount representing interest (230.7) Present value of operating lease liabilities $ 1,958.8 |
Other Long-Term Liabilities
Other Long-Term Liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Other Liabilities Disclosure [Abstract] | |
OTHER LONG-TERM LIABILITIES | OTHER LONG-TERM LIABILITIES Environmental Matters The operations of the Company, like those of other companies in its industry, are subject to various domestic and foreign environmental laws and regulations. These laws and regulations not only govern current operations and products, but also impose potential liability on the Company for past operations. Management expects environmental laws and regulations to impose increasingly stringent requirements upon the Company and the industry in the future. Management believes that the Company conducts its operations in compliance with applicable environmental laws, regulations and requirements and has implemented various programs designed to protect the environment and promote continued compliance. The Company is involved with environmental investigation and remediation activities at some of its currently and formerly owned sites (including sites which were previously owned and/or operated by businesses acquired by the Company). In addition, the Company, together with other parties, has been designated a potentially responsible party under federal and state environmental protection laws for the investigation and remediation of environmental contamination and hazardous waste at a number of third-party sites, primarily Superfund sites. In general, these laws provide that potentially responsible parties may be held jointly and severally liable for investigation and remediation costs regardless of fault. The Company may be similarly designated with respect to additional third-party sites in the future. The Company initially provides for estimated costs of environmental-related activities relating to its past operations and third-party sites for which commitments or clean-up plans have been developed and when such costs can be reasonably estimated based on industry standards and professional judgment. These estimated costs, which are mostly undiscounted, are determined based on currently available facts regarding each site. If the reasonably estimable costs can only be identified as a range and no specific amount within that range can be determined more likely than any other amount within the range, the minimum of the range is provided. The Company routinely assesses its potential liability for investigation and remediation-related activities and adjusts its environmental-related accruals as information becomes available, including as a result of sites progressing through investigation and remediation-related activities, upon which more accurate costs can be reasonably estimated and as additional accounting guidelines are issued. At December 31, 2023, 2022 and 2021, the Company had accruals reported on the balance sheet as Other long-term liabilities Other accruals Actual costs incurred may vary from the accrued estimates due to the inherent uncertainties involved including, among others, the number and financial condition of parties involved with respect to any given site, the volumetric contribution which may be attributed to the Company relative to that attributed to other parties, the nature and magnitude of the wastes involved, the various technologies that can be used for remediation and the determination of acceptable remediation with respect to a particular site. If the Company’s future loss contingency is ultimately determined to be at the unaccrued maximum of the estimated range of possible outcomes for every site for which costs can be reasonably estimated, the Company’s accrual for environmental-related activities would be $94.7 million higher than the minimum accruals at December 31, 2023. Additionally, costs for environmental-related activities may not be reasonably estimable at early stages of investigation and therefore would not be included in the unaccrued maximum amount. Four of the Company’s currently and formerly owned manufacturing sites (Major Sites) account for the majority of the accrual for environmental-related activities and the unaccrued maximum of the estimated range of possible outcomes at December 31, 2023. At December 31, 2023, $274.1 million, or 86.0% of the total accrual, related directly to the Major Sites. In the aggregate unaccrued maximum of $94.7 million at December 31, 2023, $70.3 million, or 74.2%, related to the Major Sites. The significant cost components of this liability continue to be related to remedy implementation, regulatory agency interaction and project management and other costs. While different for each specific environmental situation, these components generally each account for approximately 85%, 10%, and 5%, respectively, of the accrued amount and those percentages are subject to change over time. While environmental investigations and remedial actions are in different stages at these sites, additional investigations, remedial actions and monitoring will likely be required at each site. The largest and most complex of the Major Sites is the Gibbsboro, New Jersey site (Gibbsboro) which comprises the substantial majority of the environmental-related accrual. Gibbsboro, a former manufacturing plant, and related areas, which ceased operations in 1978, has had various areas included on the National Priorities List since 1999. This location has soil, sediment, surface water and groundwater contamination related to the historic operations of the facility. Gibbsboro has been divided by the Environmental Protection Agency (EPA) into six operable units (OUs) based on location and characteristics, whose investigation and remediation efforts are likely to occur over an extended period of time. To date, the Company has completed remedy construction on three of the six operable units. While there are administrative tasks to be completed before final agency approval, the remediation phase of the work for these three OUs is effectively complete and future work for these OUs is anticipated to be limited. OUs are in various phases of investigation and remediation with the EPA that provide enough information to reasonably estimate cost ranges and record environmental-related accruals. The most significant assumptions underlying the reliability and precision of remediation cost estimates for the Gibbsboro site are the type and extent of future remedies to be selected by the EPA and the costs of implementing those remedies. The remaining three Major Sites comprising the majority of the accrual include: (1) a multi-party Superfund site that (a) has received a record of decision from the federal EPA and is currently in the remedial design phase for one OU, (b) has received a record of decision from the federal EPA for an interim remedy for another OU, and (c) has a remedial investigation ongoing for another OU, (2) a closed paint manufacturing facility that is in the operation and maintenance phase of remediation under both federal and state EPA programs, and (3) a formerly-owned site containing warehouse and office space that is in the remedial/design investigation phase under a state EPA program. Each of these three Major Sites are in phases of investigation and remediation that provide sufficient information to reasonably estimate cost ranges and record environmental-related accruals. Excluding the Major Sites discussed above, no sites are individually material to the total accrual balance. There are multiple, future events yet to occur, including further remedy selection and design, remedy implementation and execution and securing applicable governmental agency approvals, all of which have the potential to contribute to the uncertainty surrounding these future events. As these events occur and to the extent that the cost estimates of the environmental remediation change, the existing reserve will be adjusted. Management cannot presently estimate the ultimate potential loss contingencies related to these sites or other less significant sites until such time as a substantial portion of the investigation at the sites is completed and remedial action plans are developed. Unasserted claims could have a material effect on the Company’s loss contingency as more information becomes available over time. At December 31, 2023 , the Company did not have material loss contingency accruals related to unasserted claims. Management does not expect that a material portion of unrecognized loss contingencies will be recoverable through insurance, indemnification agreements or other sources. In the event any future loss contingency significantly exceeds the current amount accrued, the recording of the ultimate liability may result in a material impact on net income for the annual or interim period during which the additional costs are accrued. Moreover, management does not believe that any potential liability ultimately attributed to the Company for its environmental-related matters will have a material adverse effect on the Company’s financial condition, liquidity or cash flow due to the extended length of time during which environmental investigation and remediation takes place. An estimate of the potential impact on the Company’s operations cannot be made due to the aforementioned uncertainties. Management expects these contingent environmental-related liabilities to be resolved over an extended period of time. Management is unable to provide a more specific time frame due to the indeterminate amount of time to conduct investigation activities at any site, the indeterminate amount of time to obtain environmental agency approval, as necessary, with respect to investigation and remediation activities, and the indeterminate amount of time necessary to conduct remediation activities. Asset Retirement Obligations The Asset Retirement and Environmental Obligations Topic of the ASC requires a liability to be recognized for the fair value of a conditional asset retirement obligation if a settlement date and fair value can be reasonably estimated. The Company recognizes a liability for any conditional asset retirement obligation when sufficient information is available to reasonably estimate a settlement date to determine the fair value of such a liability. The Company has identified certain conditional asset retirement obligations at various current and closed manufacturing, distribution and store facilities. These obligations relate primarily to asbestos abatement, hazardous waste Resource Conservation and Recovery Act (RCRA) closures, well abandonment, transformers and used oil disposals and underground storage tank closures. Using investigative, remediation and disposal methods that are currently available to the Company, the estimated costs of these obligations were accrued and are not significant. The recording of additional liabilities for future conditional asset retirement obligations may result in a material impact on net income for the annual or interim period during which the costs are accrued. Management does not believe that any potential liability ultimately attributed to the Company for its conditional asset retirement obligations will have a material adverse effect on the Company’s financial condition, liquidity or cash flow due to the extended period of time over which sufficient information may become available regarding the closure or modification of any one or group of the Company’s facilities. An estimate of the potential impact on the Company’s operations cannot be made due to the aforementioned uncertainties. Real Estate Financing The Company has entered into certain sale-leaseback agreements that do not qualify as asset sales and were accounted for as real estate financing transactions. These arrangements primarily consist of the new headquarters currently under construction, for which the Company expects to receive total proceeds approximating $800 million to $850 million on an incremental basis until the completion of construction. In 2023 and 2022, the Company received $305.0 million and $210.0 million, respectively. The net proceeds from this transaction and other real estate financing transactions are recognized within the Financing Activities section of the Statements of Consolidated Cash Flows. |
Litigation
Litigation | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
LITIGATION | LITIGATION In the course of its business, the Company is subject to a variety of claims and lawsuits, including, but not limited to, litigation relating to product liability and warranty, personal injury, environmental, intellectual property, commercial, contractual and antitrust claims that are inherently subject to many uncertainties regarding the possibility of a loss to the Company. These uncertainties will ultimately be resolved when one or more future events occur or fail to occur confirming the incurrence of a liability or the reduction of a liability. In accordance with the Contingencies Topic of the ASC, the Company accrues for these contingencies by a charge to income when it is both probable that one or more future events will occur confirming the fact of a loss and the amount of the loss can be reasonably estimated. In the event that the Company’s loss contingency is ultimately determined to be significantly higher than currently accrued, the recording of the additional liability may result in a material impact on the Company’s results of operations, liquidity or financial condition for the annual or interim period during which such additional liability is accrued. In those cases where no accrual is recorded because it is not probable that a liability has been incurred or the amount of any such loss cannot be reasonably estimated, any potential liability ultimately determined to be attributable to the Company may result in a material impact on the Company’s results of operations, liquidity or financial condition for the annual or interim period during which such liability is accrued. In those cases where no accrual is recorded or exposure to loss exists in excess of the amount accrued, the Contingencies Topic of the ASC requires disclosure of the contingency when there is a reasonable possibility that a loss or additional loss may have been incurred. Lead pigment and lead-based paint litigation. The Company’s past operations included the manufacture and sale of lead pigments and lead-based paints. The Company, along with other companies, is and has been a defendant in a number of legal proceedings, including individual personal injury actions, purported class actions, and actions brought by various counties, cities, school districts and other government-related entities, arising from the manufacture and sale of lead pigments and lead-based paints. The plaintiffs’ claims have been based upon various legal theories, including negligence, strict liability, breach of warranty, negligent misrepresentations and omissions, fraudulent misrepresentations and omissions, concert of action, civil conspiracy, violations of unfair trade practice and consumer protection laws, enterprise liability, market share liability, public nuisance, unjust enrichment and other theories. The plaintiffs have sought various damages and relief, including personal injury and property damage, costs relating to the detection and abatement of lead-based paint from buildings, costs associated with a public education campaign, medical monitoring costs and others. The Company has also been a defendant in legal proceedings arising from the manufacture and sale of non-lead-based paints that seek recovery based upon various legal theories, including the failure to adequately warn of potential exposure to lead during surface preparation when using non-lead-based paint on surfaces previously painted with lead-based paint. The Company believes that the litigation brought to date is without merit or subject to meritorious defenses and is vigorously defending such litigation. The Company expects that additional lead pigment and lead-based paint litigation may be filed against the Company in the future asserting similar or different legal theories and seeking similar or different types of damages and relief. The Company will continue to vigorously defend against any additional lead pigment and lead-based paint litigation that may be filed, including utilizing all avenues of appeal, if necessary. Notwithstanding the Company’s views on the merits, litigation is inherently subject to many uncertainties, and the Company ultimately may not prevail. Adverse court rulings or determinations of liability, among other factors, could affect the lead pigment and lead-based paint litigation against the Company and encourage an increase in the number and nature of future claims and proceedings. In addition, from time to time, various legislation and administrative regulations have been enacted, promulgated or proposed to impose obligations on present and former manufacturers of lead pigments and lead-based paints respecting asserted health concerns associated with such products or to overturn the effect of court decisions in which the Company and other manufacturers have been successful. Due to the uncertainties involved, management is unable to predict the outcome of the lead pigment and lead-based paint litigation, the number or nature of possible future claims and proceedings or the effect that any legislation and/or administrative regulations may have on the litigation or against the Company. In addition, management cannot reasonably determine the scope or amount of the potential costs and liabilities related to such litigation or resulting from any such legislation and regulations. Except with respect to the litigation in the California Proceedings, discussed below, the Company has not accrued any amounts for such litigation because the Company does not believe it is probable that a loss has occurred, or the Company believes it is not possible to estimate the range of potential losses as there is no substantive information upon which an estimate could be based. In addition, any potential liability that may result from any changes to legislation and regulations cannot reasonably be estimated. Due to the uncertainties associated with the amount of any such liability and/or the nature of any other remedy which may be imposed in such litigation, any potential liability determined to be attributable to the Company arising out of such litigation may have a material adverse effect on the Company’s results of operations, liquidity or financial condition. An estimate of the potential impact on the Company’s results of operations, cash flow, liquidity or financial condition cannot be made due to the aforementioned uncertainties. Public Nuisance Claim Litigation . The Company and other companies are or were defendants in legal proceedings seeking recovery based on public nuisance liability theories, among other theories, brought by the State of Rhode Island; the City of St. Louis, Missouri; various cities and counties in the State of New Jersey; various cities in the State of Ohio and the State of Ohio; the City of Chicago, Illinois; the City of Milwaukee, Wisconsin; the County of Santa Clara, California, and other public entities in the State of California (the California Proceedings); and Lehigh and Montgomery Counties in Pennsylvania (together, the Pennsylvania Proceedings). Except for the California Proceedings in which the Company reached a court-approved agreement in 2019 after nearly twenty years of litigation, all of the legal proceedings have been concluded in favor of the Company and other defendants at various stages in the proceedings. Pennsylvania Proceedings . The Pennsylvania Proceedings were initiated in October 2018. The Pennsylvania counties of Montgomery and Lehigh filed complaints against the Company and several other former lead-based paint and lead pigment manufacturers in the Courts of Common Pleas of Montgomery County and Lehigh County, respectively. In both actions, the counties requested declaratory relief establishing the existence of a public nuisance and the defendants’ contribution to it, the abatement of an ongoing public nuisance arising from the presence of lead-based paint in housing throughout the applicable county, an injunction against future illicit conduct, and the costs of litigation and attorneys’ fees. After the defendants removed both actions to federal court and the actions were remanded to state court, the defendants filed preliminary objections on December 21, 2020, seeking to dismiss both complaints with prejudice. The trial courts in both actions denied the defendants’ preliminary objections, and the defendants filed petitions for permission to appeal the trial courts’ orders to the Commonwealth Court, one of Pennsylvania’s intermediate appellate courts. The Commonwealth Court granted the defendants’ petitions for permission to appeal in both actions on February 18, 2022, and stayed all proceedings in the trial courts pending the appellate court proceedings. The parties filed their respective briefs in both actions, and oral argument occurred on December 14, 2022. On May 5, 2023, the Commonwealth Court reversed both trial courts’ orders denying the defendants’ preliminary objections and remanded both actions to the trial courts for entry of orders dismissing both actions. Montgomery and Lehigh Counties each filed a petition for allowance to appeal with the Supreme Court of Pennsylvania, both of which the Supreme Court of Pennsylvania denied on November 20, 2023. Subsequently, the trial courts dismissed both the Montgomery County and the Lehigh County actions on January 9, 2024 and January 30, 2024, respectively. Litigation seeking damages from alleged personal injury. The Company and other companies are or have been defendants in a number of legal proceedings seeking monetary damages and other relief from alleged personal injuries. The current proceedings include claims by children allegedly injured from ingestion of lead pigment or lead-containing paint. The plaintiffs generally seek compensatory damages and have invoked Wisconsin’s risk contribution theory (which is similar to market share liability, except that liability can be joint and several) due to the plaintiff’s inability to identify the manufacturer of any product that allegedly injured the plaintiff. Wisconsin Proceedings . The United States District Court for the Eastern District of Wisconsin consolidated three cases (Ravon Owens v. American Cyanamid, et al., Cesar Sifuentes v. American Cyanamid, et al., and Glenn Burton, Jr. v. American Cyanamid, et al.) for purposes of trial. A trial was held in May 2019 and resulted in a jury verdict for the three plaintiffs in the amount of $2.0 million each for a total of $6.0 million against the Company and two other defendants (Armstrong Containers Inc. and E.I. du Pont de Nemours). Post-trial motions resulted in a reduced damages award to one plaintiff. Subsequently, the Company filed a notice of appeal with the Seventh Circuit with respect to each of the Owens, Sifuentes and Burton cases. On April 15, 2021, the Seventh Circuit reversed the judgments and held that the Company was entitled to judgment as a matter of law on all claims filed by the three plaintiffs . The plaintiffs filed a petition with the Seventh Circuit on April 27, 2021, seeking a rehearing en banc and, in the alternative, a request for certification of questions to the Wisconsin Supreme Court. The plaintiffs’ petition was denied. On May 20, 2021, as a result of the Seventh Circuit’s decision in favor of the Company in the Owens, Sifuentes and Burton cases, the Company and the three other defendants filed motions for summary judgment to dismiss all claims of the approximately 150+ plaintiffs then pending in the Eastern District of Wisconsin. On March 3, 2022, the district court granted summary judgment in favor of the Company and the other defendants on all claims then pending in the district court. On September 15, 2022, the plaintiffs filed notices of appeal with the Seventh Circuit, seeking to appeal the district court’s summary judgment in favor of the Company and the other defendants. As part of the plaintiffs’ appellate reply brief to the Seventh Circuit, the plaintiffs included a motion to certify issues to the Wisconsin Supreme Court. On February 9, 2024, the Seventh Circuit declined to certify any issues to the Wisconsin Supreme Court and affirmed the district court’s summary judgment in favor of the Company and the other defendants in all claims except involving those filed by three plaintiffs, whose cases were remanded to the district court for further proceedings. On August 24, 2021, the plaintiff in Arrieona Beal v. Armstrong Containers, Inc., et al. filed an amended complaint in Milwaukee County Circuit Court, naming the Company and other alleged former lead pigment manufacturers as defendants pursuant to the risk contribution liability theory. Plaintiff also sued her landlords. In March 2022, the Company removed the case to the Eastern District of Wisconsin. The plaintiff filed a motion to remand the case to the state circuit court, and on September 30, 2023, the case was remanded to state court. On January 3, 2024, the Company and some of the other manufacturing defendants filed a third-party complaint against NL Industries, Inc., and cross-claims against the landlord defendants. On January 10, 2024, one of the landlord defendants filed a counterclaim and cross-claim against all parties. Insurance coverage litigation. The Company and its liability insurers, including certain underwriters at Lloyd’s of London, initiated legal proceedings against each other to determine, among other things, whether the costs and liabilities associated with the abatement of lead pigment are covered under certain insurance policies issued to the Company. The insurers’ action, which was filed on February 23, 2006 in the Supreme Court of the State of New York, County of New York, was dismissed. The Company’s action, filed on March 3, 2006 in the Common Pleas Court, Cuyahoga County, Ohio, previously was stayed and inactive. On January 9, 2019, the Company filed an unopposed motion to lift the stay with the trial court, which was granted, allowing the case to proceed. On June 28, 2019, the Company and its liability insurers each filed separate motions for summary judgment seeking various forms of relief. The trial court entered an order on December 4, 2020, granting the insurers’ motion for summary judgment, denying the Company’s motion, and entering final judgment in favor of the insurers. The trial court sided with the Company on all of the issues presented, except one. On December 21, 2020, the Company filed a notice of appeal to the Court of Appeals of Cuyahoga County, Ohio, Eighth Appellate District, and the insurers filed cross-appeals. On September 1, 2022, the appellate court reversed the trial court’s grant of summary judgment, finding in favor of the Company on its appeal and against the insurers on their cross-appeal, and remanded the case to the trial court. On September 12, 2022, the insurers applied to the appellate court for reconsideration of its decision, en banc review, or certification of an appeal to the Ohio Supreme Court, which the appellate court denied. The insurers subsequently filed a notice of appeal to the Ohio Supreme Court, to which the Company filed its response. On May 9, 2023, the Ohio Supreme Court accepted the insurers’ appeal. Oral argument was held on October 24, 2023. An ultimate loss in the insurance coverage litigation would mean that insurance proceeds could be unavailable under the policies at issue to mitigate any ultimate abatement related costs and liabilities. The Company has not recorded any assets related to these insurance policies or otherwise assumed that proceeds from these insurance policies would be received in estimating any contingent liability accrual. Therefore, an ultimate loss in the insurance coverage litigation without a determination of liability against the Company in the lead pigment or lead-based paint litigation will have no impact on the Company’s results of operation, liquidity or financial condition. As previously stated, however, except with respect to the litigation in California discussed above, the Company has not accrued any amounts for the lead pigment or lead-based paint litigation and any significant liability ultimately determined to be attributable to the Company relating to such litigation may result in a material impact on the Company’s results of operations, liquidity or financial condition for the annual or interim period during which such liability is accrued. Other litigation. On December 18, 2019, the New Jersey Department of Environmental Protection, the Commissioner of the New Jersey Department of Environmental Protection, and the Administrator of the New Jersey Spill Compensation Fund (collectively, the NJ DEP) filed a lawsuit against the Company in the Superior Court of New Jersey Law Division in Camden County, New Jersey. The NJ DEP seeks to recover natural resource damages, punitive damages, and litigation fees and costs, as well as other costs, damages, declaratory relief, and penalties pursuant to New Jersey state statutes and common law theories in connection with the alleged discharge of hazardous substances and pollutants at the Company’s Gibbsboro, New Jersey site, a former manufacturing plant and related facilities. The court has scheduled a new trial date of October 15, 2024. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
SHAREHOLDERS' EQUITY | SHAREHOLDERS’ EQUITY Capital Stock At December 31, 2023, there were 900,000,000 shares of common stock and 30,000,000 shares of serial preferred stock authorized for issuance. Of the authorized serial preferred stock, 3,000,000 shares are designated as cumulative redeemable serial preferred stock. Under the 2006 Equity and Performance Incentive Plan (2006 Employee Plan), 71,100,000 shares may be issued or transferred. An aggregate of 15,830,386, 17,939,143 and 19,135,222 shares of common stock at December 31, 2023, 2022 and 2021, respectively, were reserved for the exercise and future grants of option rights and future grants of restricted stock and restricted stock units. See Note 15 for additional information related to stock-based compensation. Shares outstanding shown in the following table included 1,426,883 shares of common stock held in a revocable trust at December 31, 2023, 2022 and 2021. The revocable trust is used to accumulate assets for the purpose of funding the ultimate obligation of certain non-qualified benefit plans. Transactions between the Company and the trust are accounted for in accordance with the Deferred Compensation – Rabbi Trusts Subtopic of the Compensation Topic of the ASC, which requires the assets held by the trust be consolidated with the Company’s accounts. Shares Shares Balance at January 1, 2021 1,138,692 268,676,631 Shares issued for exercise of option rights 2,365,168 Shares tendered as payment for option rights exercised 4,324 (4,324) Shares issued for vesting of restricted stock units 276,948 Shares tendered in connection with vesting of restricted stock units 95,618 (95,618) Treasury stock purchased 10,075,000 (10,075,000) Balance at December 31, 2021 11,313,634 261,143,805 Shares issued for exercise of option rights 778,075 Shares tendered as payment for option rights exercised 3,861 (3,861) Shares issued for vesting of restricted stock units 357,832 Shares tendered in connection with vesting of restricted stock units 124,852 (124,852) Treasury stock purchased 3,350,000 (3,350,000) Treasury stock sold (1) (75,000) 75,000 Balance at December 31, 2022 14,717,347 258,875,999 Shares issued for exercise of option rights 1,081,815 Shares tendered as payment for option rights exercised 10,467 (10,467) Shares issued for vesting of restricted stock units 302,713 Shares tendered in connection with vesting of restricted stock units 106,770 (106,770) Treasury stock purchased 5,600,000 (5,600,000) Balance at December 31, 2023 20,434,584 254,543,290 (1) During the year ended December 31, 2022, the Company sold treasury shares to fund Company contributions to the domestic defined contribution plan. The related proceeds were $22.0 million. Dividends The following table summarizes the dividends declared and paid on common stock: 2023 2022 2021 Cash dividend per share $ 2.42 $ 2.40 $ 2.20 Total dividends (in millions) 623.7 618.5 587.1 Treasury Stock The Company acquires its common stock for general corporate purposes through its publicly announced share repurchase program. As of December 31, 2023, the Company had remaining authorization from its Board of Directors to purchase 39.6 million shares of its common stock. The table below summarizes the Company’s share repurchase activity: 2023 2022 2021 Treasury stock purchases (in millions) $ 1,432.0 $ 883.2 $ 2,752.3 Treasury stock purchases (shares) 5,600,000 3,350,000 10,075,000 Average price per share $ 255.72 $ 263.64 $ 273.18 |
Defined Contribution Savings Pl
Defined Contribution Savings Plan | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
DEFINED CONTRIBUTION SAVINGS PLAN | DEFINED CONTRIBUTION SAVINGS PLAN As of December 31, 2023, 45,017 employees contributed to the Company’s defined contribution savings plan, voluntary to all eligible salaried employees and any employee in a group of employees to which coverage has been extended on a non-discriminatory basis by the plan’s Administration Committee. Participants are allowed to contribute, on a pretax or after-tax basis, up to the lesser of fifty percent of their annual compensation or the maximum dollar amount allowed under the Internal Revenue Code. The Company matches one hundred percent of all contributions up to six percent of eligible employee contributions. Such participant contributions may be invested in a variety of investment funds or a Company common stock fund and may be exchanged between investments as directed by the participant. Participants are permitted to diversify both future and prior Company matching contributions previously allocated to the Company common stock fund into a variety of investment funds. The Company made contributions to the defined contribution savings plan on behalf of participating employees, representing amounts authorized by employees to be withheld from their earnings, of $260.5 million, $240.1 million and $224.3 million in 2023, 2022 and 2021, respectively. The Company’s matching contributions to the defined contribution savings plan charged to operations were $153.9 million, $140.0 million and $133.7 million for 2023, 2022 and 2021, respectively. At December 31, 2023, there were 18,680,108 shares of the Company’s common stock being held by the defined contribution savings plan, representing 7.3% of the total number of voting shares outstanding. Shares of Company common stock credited to each member’s account under the defined contribution savings plan are voted by the trustee under instructions from each individual plan member. Shares for which no instructions are received are voted by the trustee in the same proportion as those for which instructions are received. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION The 2006 Employee Plan authorizes the Board of Directors, or a committee of the Board of Directors, to issue or transfer up to an aggregate of 71,100,000 shares of common stock, plus any shares relating to awards that expire, are forfeited or canceled. The Company issues new shares upon exercise of option rights (options) and vesting of restricted stock units (RSUs). The 2006 Employee Plan permits the granting of options, appreciation rights, restricted stock, RSUs, performance shares and performance units to eligible employees. At December 31, 2023, no appreciation rights, performance shares or performance units had been granted under the 2006 Employee Plan. Shares available for future grants under the 2006 Employee Plan were 6,689,354 at December 31, 2023. The 2006 Stock Plan for Nonemployee Directors (Nonemployee Director Plan) authorizes the Board of Directors, or a committee of the Board of Directors, to issue or transfer up to an aggregate of 600,000 shares of common stock, plus any shares relating to awards that expire, are forfeited or canceled. The Nonemployee Director Plan permits the granting of options, appreciation rights, restricted stock and RSUs to members of the Board of Directors who are not employees of the Company. At December 31, 2023, no options or appreciation rights had been granted under the Nonemployee Director Plan. Shares available for future grants under the Nonemployee Director Plan were 216,021 at December 31, 2023. At December 31, 2023, the Company had total unrecognized stock-based compensation expense of $169.3 million that is expected to be recognized over a weighted-average period of 1.08 years. 2023 2022 2021 Stock-based compensation expense $ 115.9 $ 99.7 $ 97.7 Income tax benefit recognized 28.6 24.6 24.1 Excess tax benefits from share-based payments are recognized as an income tax benefit in the Statements of Consolidated Income when options are exercised and RSUs vest. For the years ended December 31, 2023, 2022 and 2021, the Company’s excess tax benefit from options exercised and RSUs vested reduced the income tax provision by $35.7 million, $35.4 million and $108.7 million, respectively. Options The fair value of the Company’s options was estimated at the date of grant using a Black-Scholes-Merton option-pricing model with the following weighted-average assumptions for all options granted: 2023 2022 2021 Risk-free interest rate 4.57 % 4.00 % 1.11 % Expected life of options 5.02 years 5.05 years 5.05 years Expected dividend yield of stock .94 % .92 % .75 % Expected volatility of stock 29.3 % 31.6 % 26.8 % The risk-free interest rate is based upon the U.S. Treasury yield curve at the time of grant. The expected life of options was calculated using a scenario analysis model. Historical data was used to aggregate the holding period from actual exercises, post-vesting cancellations and hypothetical assumed exercises on all outstanding options. The expected dividend yield of stock is the Company’s best estimate of the expected future dividend yield. Expected volatility of stock was calculated using historical and implied volatilities. Grants of non-qualified and incentive stock options have been awarded to certain officers and key employees under the 2006 Employee Plan. The options generally become exercisable to the extent of one-third of the optioned shares for each full year following the date of grant and generally expire ten years after the date of grant. Unrecognized compensation expense with respect to options granted to eligible employees amounted to $91.3 million at December 31, 2023. The unrecognized compensation expense is being amortized on a straight-line basis over the three-year vesting period, net of estimated forfeitures based on historical activity, and is expected to be recognized over a weighted-average period of 1.10 years. The following table summarizes the Company’s option activity: Optioned Weighted Aggregate Weighted Average Remaining Term Outstanding at January 1, 2023 9,102,638 $ 160.09 $ 756.6 5.82 Granted 994,305 247.58 Exercised (1,086,468) 105.23 Forfeited (65,225) 245.11 Expired (20,239) 234.69 Outstanding at December 31, 2023 8,925,011 $ 175.70 $ 1,215.6 5.64 Exercisable at December 31, 2023 7,002,046 $ 156.54 $ 1,087.8 4.69 The following table summarizes fair value and intrinsic value information for option activity: 2023 2022 2021 Weighted average grant date fair value per share $ 77.08 $ 69.82 $ 68.63 Total fair value of options vested 61.3 57.9 53.2 Total intrinsic value of options exercised 170.6 125.4 485.8 RSUs The fair value of each RSU is equal to the market value of a share of the Company’s stock on the grant date. Grants of time-based RSUs, which generally require three years of continuous employment from the date of grant before vesting and receiving the stock without restriction, have been awarded to certain officers and key employees under the 2006 Employee Plan. The February 2023, 2022 and 2021 grants of performance-based RSUs vest at the end of a three-year period based on the Company’s achievement of specified financial and operating performance goals relating to earnings per share and return on net assets employed. Unrecognized compensation expense with respect to grants of RSUs to eligible employees amounted to $76.1 million at December 31, 2023. The unrecognized compensation expense is being amortized on a straight-line basis over the vesting period and is expected to be recognized over a weighted-average period of 1.01 years. Grants of RSUs have been awarded to nonemployee directors under the Nonemployee Director Plan. These grants generally vest and stock is received without restriction to the extent of one-third of the RSUs for each year following the date of grant. Unrecognized compensation expense with respect to grants of RSUs to nonemployee directors amounted to $1.9 million at December 31, 2023. The unrecognized compensation expense is being amortized on a straight-line basis over the three-year vesting period and is expected to be recognized over a weighted-average period of 0.94 years. The following table summarizes the Company’s RSU activity: Number of RSUs Weighted Average Grant Date Fair Value Per Share Aggregate Weighted Average Remaining Term Outstanding at January 1, 2023 401,924 $ 231.09 $ 95.4 1.02 Granted 343,564 232.22 Vested (302,713) 194.37 Forfeited (7,901) 246.91 Outstanding at December 31, 2023 434,874 244.21 $ 135.6 1.26 The following table summarizes the fair value and intrinsic value information for RSU activity: 2023 2022 2021 Weighted average grant date fair value per share $ 232.22 $ 271.75 $ 238.89 Intrinsic value of RSUs vested during year 68.5 97.5 66.3 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2023 | |
Statement of Other Comprehensive Income [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The components of AOCI, including the reclassification adjustments for items that were reclassified from AOCI to Net income, are shown below. Foreign Currency Translation Adjustments (1) Pension and Other Postretirement Benefits Adjustments (2) Unrealized Net Gains on Cash Flow Hedges (3) Total Balance at January 1, 2021 $ (671.5) $ (87.2) $ 40.4 $ (718.3) Amounts recognized in AOCI (30.6) 48.7 18.1 Amounts reclassified from AOCI 6.3 (4.5) 1.8 Balance at December 31, 2021 (702.1) (32.2) 35.9 (698.4) Amounts recognized in AOCI (108.7) 106.8 (1.9) Amounts reclassified from AOCI 3.7 (4.0) (0.3) Balance at December 31, 2022 (810.8) 78.3 31.9 (700.6) Amounts recognized in AOCI 93.9 3.9 97.8 Amounts reclassified from AOCI (17.9) (3.6) (21.5) Balance at December 31, 2023 $ (716.9) $ 64.3 $ 28.3 $ (624.3) (1) Includes changes in the fair value of cross currency swap contracts of $(24.9) million, $34.1 million, $37.1 million in 2023, 2022 and 2021, respectively. See Note 17. (2) Net of taxes of $3.1 million, $(35.0) million, $(14.7) million in 2023, 2022 and 2021, respectively. See Note 9. (3) Net of taxes of $1.2 million, $1.1 million and $1.0 million in 2023, 2022 and 2021, respectively. See Statements of Consolidated Comprehensive Income. |
Derivatives and Hedging
Derivatives and Hedging | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES AND HEDGING | DERIVATIVES AND HEDGING The Company has entered into U.S. Dollar to Euro cross currency swap contracts with various counterparties to hedge the Company’s net investment in its European operations. During the term of the contracts, the Company will pay fixed-rate interest in Euros and receive fixed-rate interest in U.S. Dollars, thereby effectively converting a portion of the Company's U.S. Dollar denominated fixed-rate debt to Euro denominated fixed-rate debt. The outstanding contracts as of December 31, 2023 are summarized in the table below. Contract Date Notional Value Maturity Date February 13, 2020 $ 500.0 June 1, 2024 November 8, 2021 162.7 June 1, 2027 March 28, 2023 150.0 August 8, 2024 June 28, 2023 200.0 August 8, 2025 December 7, 2023 150.0 August 15, 2029 In December 2023, the Company settled its $100.0 million U.S. Dollar to Euro cross currency swap contract entered into on August 1, 2023. At the time of settlement, an immaterial unrealized gain was recognized in AOCI. The following table summarizes the balance sheet location of the cross currency swap contracts. See Note 18 for additional information on the fair value of these contracts. December 31, December 31, December 31, 2023 2022 2021 Other assets $ — $ 9.1 $ — Other accruals (12.0) — — Other long-term liabilities (12.4) — 36.5 The changes in fair value of the cross currency swap contracts are recognized in the foreign currency translation adjustments component of AOCI. See Note 16. The following table summarizes the unrealized (losses) gains for the years ended December 31: 2023 2022 2021 (Losses) gains $ (33.1) $ 45.2 $ 49.3 Tax effect 8.2 (11.1) (12.2) (Losses) gains, net of taxes $ (24.9) $ 34.1 $ 37.1 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The Fair Value Measurements and Disclosures Topic of the ASC applies to the Company’s financial and non-financial assets and liabilities. The guidance applies when other standards require or permit the fair value measurement of assets and liabilities. Under the guidance, assets and liabilities measured at fair value are categorized as follows: Level 1: Quoted prices in active markets for identical assets Level 2: Significant other observable inputs Level 3: Significant unobservable inputs There were no assets and liabilities measured at fair value on a recurring basis classified as Level 3 at December 31, 2023, 2022 and 2021. Except for the acquisition-related fair value measurements and assets held for sale prior to divestiture described in Note 3 and the reporting unit impairment analysis and trademark quantitative impairment test described in Note 7, there were no assets and liabilities measured at fair value on a nonrecurring basis. The following table summarizes the Company’s assets and liabilities measured at fair value on a recurring basis, categorized using the fair value hierarchy. December 31, 2023 December 31, 2022 December 31, 2021 Total Level 1 Level 2 Total Level 1 Level 2 Total Level 1 Level 2 Assets: Deferred compensation plan $ 84.7 $ 84.7 $ 74.1 $ 43.7 $ 30.4 $ 80.4 $ 43.1 $ 37.3 Qualified replacement plan — 29.8 29.8 98.8 98.8 Net investment hedges — 9.1 9.1 — $ 84.7 $ 84.7 $ — $ 113.0 $ 73.5 $ 39.5 $ 179.2 $ 141.9 $ 37.3 Liabilities: Net investment hedges $ 24.4 $ 24.4 $ — $ 36.5 $ 36.5 The deferred compensation plan assets consist of the investment funds maintained for future payments under the Company’s executive deferred compensation plans, which are structured as rabbi trusts. The investments are marketable securities accounted for under the Debt and Equity Securities Topic of the ASC. The level 1 investments are valued using quoted market prices multiplied by the number of shares. The level 2 investments are valued based on vendor or broker models. As of December 31, 2023, $6.4 million of deferred compensation plan assets were held in partnership funds measured using NAV (or its equivalent) as a practical expedient. These investments are not classified in the fair value hierarchy. The cost basis of all investments within the deferred compensation plan and qualified replacement plan was $76.3 million, $67.2 million, and $63.0 million at December 31, 2023, 2022 and 2021, respectively. The qualified replacement plan assets consisted of investment funds maintained for future contributions to the Company’s domestic defined contribution pension plan. See Note 9. During the first quarter of 2023, the remaining balance was fully utilized to fund the Company’s domestic defined contribution pension plan. The cost basis of the investment funds was $29.8 million and $86.9 million at December 31, 2022 and 2021, respectively. The net investment hedge asset and liability represent the fair value of the cross currency swaps. See Note 17. The fair value is based on a valuation model that uses observable inputs, including interest rate curves and the Euro foreign currency rate. The carrying amounts reported for Cash and cash equivalents and Short-term borrowings approximate fair value. The fair value of the Company’s publicly traded debt is based on quoted market prices. The fair value of the Company’s non-publicly traded debt is estimated using discounted cash flow analyses, based on the Company’s current incremental borrowing rates for similar types of borrowing arrangements. The Company’s publicly traded debt and non-traded debt are classified as level 1 and level 2, respectively, in the fair value hierarchy. The following table summarizes the carrying amounts and fair values of the Company’s publicly traded debt and non-traded debt. December 31, 2023 2022 2021 Carrying Fair Carrying Amount Fair Carrying Amount Fair Publicly traded debt $ 9,475.8 $ 8,615.1 $ 9,590.0 $ 8,382.3 $ 8,849.6 $ 9,777.4 Non-traded debt 0.9 0.8 1.6 1.5 1.9 1.9 |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE The Company manufactures and sells paint, stains, supplies, equipment and floor covering through company-operated stores, branded and private label products through retailers, and a broad range of industrial coatings directly to global manufacturing customers through company-operated branches. A large portion of the Company’s revenue is recognized at a point in time and made to customers who are not engaged in a long-term supply agreement or any form of contract with the Company. These sales are paid for at the time of sale in cash, credit card or on account with the vast majority of customers having terms between 30 and 60 days, not to exceed one year. Many customers who purchase on account take advantage of early payment discounts offered by paying within 30 days of being invoiced. The Company estimates variable consideration for these sales on the basis of both historical information and current trends to estimate the expected amount of discounts to which customers are likely to be entitled. The remaining revenue is governed by long-term supply agreements and related purchase orders (“contracts”) that specify shipping terms and aspects of the transaction price including rebates, discounts and other sales incentives, such as advertising support. Contracts are at standalone pricing. The performance obligation in these contracts is determined by each of the individual purchase orders and the respective stated quantities, with revenue being recognized at a point in time when obligations under the terms of the agreement are satisfied. This generally occurs with the transfer of control of our products to the customer. Sales, value add, and other taxes we collect concurrent with revenue-producing activities are excluded from revenue. Refer to Note 23 for the Company’s disaggregation of Net sales by Reportable Segment. As the Reportable Segments are aligned by similar economic factors, trends and customers, this disaggregation best depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. Approximately 80% of the Company’s net external sales are in the Company’s North America region (which is comprised of the United States, Canada and the Caribbean region), slightly less than 10% in the EMEAI region (Europe, Middle East, Africa and India), with the remaining global regions accounting for the residual balance. No individual country outside of the United States is individually significant. The Company has made payments or given credits for various incentives at the beginning of a long-term contract where future revenue is expected and before satisfaction of performance obligations. Under these circumstances, the Company recognizes a contract asset and amortizes these prepayments over the expected benefit life of the long-term contract, typically on a straight-line basis. The majority of variable consideration in the Company’s contracts include a form of volume rebate, discounts, and other incentives, where the customer receives a retrospective percentage rebate based on the amount of their purchases. In these situations, the rebates are accrued as a fixed percentage of sales and recorded as a reduction of net sales until paid to the customer per the terms of the contract. Forms of variable consideration such as tiered rebates, whereby a customer receives a retrospective price decrease dependent on the volume of their purchases, are calculated using a forecasted percentage to determine the most likely amount to accrue. Management creates a baseline calculation using historical sales and then utilizing forecast information, estimates the anticipated sales volume each quarter to calculate the expected reduction to sales. The remainder of the transaction price is fixed as agreed upon with the customer, limiting estimation of revenues, including constraints. The Company’s Accounts receivable and current and long-term contract assets and liabilities are summarized in the following table. Accounts Receivable, Less Allowance Contract Assets (Current) Contract Assets (Long-Term) Contract Liabilities (Current) Contract Liabilities (Long-Term) Balance sheet caption: Accounts receivable Other current assets Other assets Other accruals Other liabilities Balance at December 31, 2022 $ 2,563.6 $ 43.8 $ 117.7 $ 292.9 $ 7.1 Balance at December 31, 2023 2,467.9 46.2 151.7 365.7 3.8 The difference between the opening and closing balances of the Company’s contract assets and contract liabilities primarily results from the timing difference between the contractual performance obligation and the associated payment. Provisions for estimated returns are established and the expected costs continue to be recognized as contra-revenue per ASC 606 when the products are sold. The Company only offers an assurance type warranty on products sold, and there is no material service to the customer beyond fixing defects that existed at the time of sale and no warranties are sold separately. Warranty liabilities are excluded from the table above. Amounts recognized during the year from deferred revenue were not material. The Company records a right of return liability within each of its operations to accrue for expected customer returns. Historical actual returns are used to estimate future returns as a percentage of current sales. Obligations for returns and refunds were not material individually or in the aggregate. Allowance for Current Expected Credit Losses The following table summarizes the movement in the Company’s allowance for current expected credit losses: 2023 2022 2021 Beginning balance $ 56.6 $ 48.9 $ 53.5 Bad debt expense 67.9 65.3 33.8 Uncollectible accounts written off, net of recoveries (64.9) (57.6) (38.4) Ending balance $ 59.6 $ 56.6 $ 48.9 |
Other Expense (Income)
Other Expense (Income) | 12 Months Ended |
Dec. 31, 2023 | |
Other Income and Expenses [Abstract] | |
OTHER EXPENSE (INCOME) | OTHER EXPENSE (INCOME) Other General Expense (Income) - Net Included in Other general expense (income) - net were the following: 2023 2022 2021 Provisions for environmental matters - net $ 80.7 $ (7.1) $ (4.0) (Gain) loss on divestiture of businesses (see Note 3) (20.1) — 111.9 Loss (gain) on sale or disposition of assets 0.9 (17.8) (6.1) Other 5.6 — — Total $ 67.1 $ (24.9) $ 101.8 Provisions for environmental matters – net represent initial provisions for site-specific estimated costs of environmental investigation or remediation and increases or decreases to environmental-related accruals. These provisions are recorded or adjusted as information becomes available upon which more accurate costs can be reasonably estimated and as additional accounting guidelines are issued. During 2023, provisions for environmental matters - net increased primarily due to new information which impacted the estimate of required remediation at certain Major Sites and other Company locations. See Note 11 for further details on the Company’s environmental-related activities. The loss (gain) on sale or disposition of assets represents the net realized loss (gain) associated with the sale or disposal of property, plant and equipment and intangible assets previously used in the conduct of the primary business of the Company. Other Expense (Income) - Net Included in Other expense (income) - net were the following: 2023 2022 2021 Investment (gains) losses $ (22.9) $ 9.7 $ (30.4) Loss (gain) on extinguishment of debt (see Note 8) 12.8 — (1.4) Net expense from banking activities 15.0 12.2 10.3 Foreign currency transaction related losses - net 80.5 33.6 12.0 Miscellaneous pension and benefit (income) expense (21.1) 4.0 4.4 Other income (48.5) (39.6) (29.0) Other expense 49.7 27.1 14.6 Total $ 65.5 $ 47.0 $ (19.5) Investment (gains) losses primarily relate to the change in market value of the investments held in the deferred compensation plan and qualified replacement plan. See Note 18 for additional information on the fair value of these investments. Foreign currency transaction related losses - net include the impact from foreign currency transactions, including from highly inflationary economies such as Argentina, and net realized losses from foreign currency option and forward contracts. During 2023, foreign currency transaction related losses - net increased primarily as a result of the significant devaluation of the Argentine Peso in December 2023 as part of economic reforms implemented by the government of Argentina. As a result of these actions in Argentina, the Company incurred a loss of $41.8 million. There were no material foreign currency option and forward contracts outstanding at December 31, 2023, 2022 and 2021. Miscellaneous pension and benefit (income) expense consists of the non-service components of net periodic pension and benefit cost. See Note 9. Other income and other expense included items of revenue, gains, expenses and losses that were unrelated to the primary business purpose of the Company. There were no items within other income or other expense that were individually significant at December 31, 2023, 2022 and 2021. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Significant components of the provisions for income taxes were as follows: 2023 2022 2021 Current: Federal $ 553.4 $ 505.5 $ 331.2 Foreign 147.6 90.3 86.5 State and local 109.0 102.0 46.8 Total current 810.0 697.8 464.5 Deferred: Federal (39.9) (81.7) (36.5) Foreign (51.5) (47.3) (40.4) State and local 2.5 (15.8) (3.4) Total deferred (88.9) (144.8) (80.3) Total provisions for income taxes $ 721.1 $ 553.0 $ 384.2 A reconciliation of the statutory federal income tax rate to the effective tax rate follows: 2023 2022 2021 Statutory federal income tax rate 21.0 % 21.0 % 21.0 % Effect of: State and local income taxes 3.0 2.8 2.2 Investment vehicles (0.5) (0.4) (0.8) Employee share-based payments (1.1) (1.4) (4.8) Research and development credits (0.4) (0.6) (0.6) Amended returns and refunds 0.2 0.4 0.2 Taxes on non-U.S. earnings 0.8 0.2 (0.4) Other - net 0.2 (0.5) 0.3 Reported effective tax rate 23.2 % 21.5 % 17.1 % The increase in the effective tax rate for 2023 compared to 2022 was primarily related to an unfavorable change in the jurisdictional mix of earnings. Significant components of income before income taxes as used for income tax purposes, were as follows: 2023 2022 2021 Domestic $ 2,817.0 $ 2,427.6 $ 2,106.8 Foreign 292.9 145.5 141.8 $ 3,109.9 $ 2,573.1 $ 2,248.6 Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes using the enacted tax rates and laws that are currently in effect. Significant components of the Company’s deferred tax assets and liabilities as of December 31, 2023, 2022 and 2021 were as follows: 2023 2022 2021 Deferred tax assets: Environmental and other similar items $ 72.0 $ 66.4 $ 73.2 Employee related and benefit items 162.1 157.1 170.3 Operating lease liabilities 483.2 478.1 463.1 Research and development capitalization 81.5 52.6 Other items 205.6 204.1 192.0 Total deferred tax assets 1,004.4 958.3 898.6 Deferred tax liabilities: Intangible assets and Property, plant, and equipment 1,001.1 973.4 1,053.7 LIFO inventories 115.2 97.3 68.6 Operating lease right-of-use assets 465.6 460.5 448.4 Other items 28.6 31.7 33.3 Total deferred tax liabilities 1,610.5 1,562.9 1,604.0 Net deferred tax liabilities $ 606.1 $ 604.6 $ 705.4 As of December 31, 2023, the Company’s net deferred income tax liability relates primarily to deferred tax liabilities recorded for intangible assets acquired through the Valspar acquisition. Netted against the Company’s other deferred tax assets were valuation allowances of $106.6 million, $97.5 million and $97.2 million at December 31, 2023, 2022 and 2021, respectively. The Company has $14.6 million of domestic net operating loss carryforwards acquired through acquisitions that have expiration dates through tax year 2037, foreign tax credits of $26.5 million that expire in calendar years 2028 through 2033 and foreign net operating losses of $361.7 million. The foreign net operating losses are related to various jurisdictions that provide for both indefinite carryforward periods and others with carryforward periods that expire between tax years 2023 to 2043. The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction, and various state and foreign jurisdictions. The Company finalized the IRS audit for the 2011 and 2013 through 2016 income tax returns and paid the tax assessment for 2013 through 2016 in the fourth quarter. The Company expects to pay the remaining assessment related to tax and interest in 2024. The IRS is currently auditing the Company’s 2017, 2018 and 2019 income tax returns. As of December 31, 2023, the U.S. federal statute of limitations has not expired for the 2013 through 2023 tax years. As of December 31, 2023, the Company is subject to non-U.S. income tax examinations for the tax years of 2014 through 2023. In addition, the Company is subject to state and local income tax examinations for the tax years 1998 through 2023. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 2023 2022 2021 Balance at beginning of year $ 242.4 $ 228.5 $ 227.0 Additions based on tax positions related to the current year 14.2 18.7 14.0 Additions for tax positions of prior years 12.6 10.6 23.1 Reductions for tax positions of prior years (16.9) (6.0) (22.1) Settlements (123.2) (1.7) (5.6) Lapses of statutes of limitations (7.3) (7.7) (7.9) Balance at end of year $ 121.8 $ 242.4 $ 228.5 The decrease in unrecognized tax benefits was primarily settlements related to federal renewable energy tax credit funds with DC Solar Solutions, Inc. and certain of its affiliates and other adjustments with the IRS in each of the tax years 2011 and 2013 through 2016. There were also additions in unrecognized tax benefits related to the reversal of benefits recognized from certain positions taken on current and prior year income tax returns filed in U.S. federal and various state jurisdictions. These additions were primarily offset by various positions taken on prior year income tax returns filed in U.S. and various foreign jurisdictions that were no longer deemed to be at risk. At December 31, 2023, 2022 and 2021, the total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate was $109.4 million, $230.3 million and $218.9 million, respectively. Included in the balance of unrecognized tax benefits at December 31, 2023 is $8.4 million related to tax positions for which it is reasonably possible that the total amounts could significantly change during the next twelve months. This amount represents a decrease in unrecognized tax benefits comprised primarily of items related to federal audits of partnership investments and expiring statutes in federal, foreign and state jurisdictions. The Company classifies all income tax related interest and penalties as income tax expense. During the year ended December 31, 2023, there was an increase in income tax interest and penalties of $5.9 million. During the years ended December 31, 2022 and 2021, there was a increase (decrease) in income tax interest and penalties of $10.3 million and $(2.7) million, respectively. The Company accrued $20.4 million, $36.6 million and $26.4 million at December 31, 2023, 2022 and 2021, respectively, for the potential payment of interest and penalties. |
Net Income Per Share
Net Income Per Share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
NET INCOME PER SHARE | NET INCOME PER SHARE Basic and diluted net income per share are calculated using the treasury stock method. 2023 2022 2021 Basic Net income $ 2,388.8 $ 2,020.1 $ 1,864.4 Weighted average shares outstanding 255.4 258.0 262.5 Basic net income per share $ 9.35 $ 7.83 $ 7.10 Diluted Net income $ 2,388.8 $ 2,020.1 $ 1,864.4 Weighted average shares outstanding assuming dilution: Weighted average shares outstanding 255.4 258.0 262.5 Stock options and other contingently issuable shares (1) 2.9 3.8 4.6 Weighted average shares outstanding assuming dilution 258.3 261.8 267.1 Diluted net income per share $ 9.25 $ 7.72 $ 6.98 (1) Stock options and other contingently issuable shares excludes 2.8 million, 1.9 million and 0.9 million shares at December 31, 2023, 2022 and 2021, respectively, due to their anti-dilutive effect. |
Reportable Segment Information
Reportable Segment Information | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
REPORTABLE SEGMENT INFORMATION | REPORTABLE SEGMENT INFORMATION The Company reports its segment information in the same way that management internally organizes its business for assessing performance and making decisions regarding the allocation of resources in accordance with the Segment Reporting Topic of the ASC. During 2023, the Company realigned its organizational structure to manage the Latin America architectural paint business within the Consumer Brands Group due to the Latin America architectural demand and service models shifting to align more closely with the Consumer Brands Group’s strategy. Previously, the Latin America architectural paint business was managed within The Americas Group. As a result of this change, The Americas Group was renamed the Paint Stores Group. All reported segment results have been adjusted retrospectively to reflect this change. The Company has three reportable operating segments: Paint Stores Group, Consumer Brands Group and Performance Coatings Group (individually, a Reportable Segment and collectively, the Reportable Segments). Factors considered in determining the three Reportable Segments of the Company include the nature of business activities, the management structure directly accountable to the Company’s CODM for operating and administrative activities, availability of discrete financial information and information presented to the Board of Directors. The Company reports all other business activities and immaterial operating segments that are not reportable in the Administrative segment. The Company’s CODM has been identified as the Chief Executive Officer because they have the final authority over performance assessment and resource allocation decisions. Because of the diverse operations of the Company, the CODM regularly receives discrete financial information about each Reportable Segment as well as a significant amount of additional financial information about certain divisions, business units or subsidiaries of the Company. The CODM uses all such financial information for performance assessments and resource allocation decisions. The CODM evaluates the performance of and allocates resources to the Reportable Segments based on segment profit or loss and cash generated from operations. The accounting policies of the Reportable Segments are the same as those described in Note 1. The Paint Stores Group consisted of 4,694 company-operated specialty paint stores in the United States, Canada, and the Caribbean region at December 31, 2023. Each store in this segment is engaged in servicing the needs of architectural and industrial paint contractors and do-it-yourself homeowners. These stores market and sell Sherwin-Williams ® and other controlled brand architectural paint and coatings, protective and marine products, OEM product finishes and related products. The majority of these products are produced by manufacturing facilities in the Consumer Brands Group. In addition, each store sells select purchased associated products. The loss of any single customer would not have a material adverse effect on the business of this segment. During 2023, this segment opened 70 net new stores, consisting of 76 new stores opened and 6 stores closed. In 2022 and 2021, this segment opened 75 and 73 net new stores, respectively. The CODM uses discrete financial information about the Paint Stores Group, supplemented with information by geographic region, product type and customer type, to assess the performance of and allocate resources to the Paint Stores Group as a whole. In accordance with ASC 280-10-50-9, the Paint Stores Group as a whole is considered the operating segment, and because it meets the criteria in ASC 280-10-50-10, it is also considered a Reportable Segment. The Consumer Brands Group manufactures and supplies a broad portfolio of branded and private-label architectural paint, stains, varnishes, industrial products, wood finishes products, wood preservatives, applicators, corrosion inhibitors, aerosols, caulks and adhesives to retailers, including home centers and hardware stores, dedicated dealers and distributors throughout North America, Latin America and Europe. During 2023, the Company divested a non-core domestic aerosol business and the China architectural business, both part of the Consumer Brands Group (see Note 3). In 2022, the Consumer Brands Group had a $15.5 million pre-tax loss for trademark impairments related to the Restructuring Plan (see Note 7). Sales and marketing of certain controlled brand and private-label products is performed by a direct sales staff. The products distributed through third-party customers are intended for resale to the ultimate end-user of the product. The Consumer Brands Group also consisted of 318 company-operated specialty paint stores in Latin America at December 31, 2023. Each store in this segment is engaged in servicing the needs of home, commercial and industrial projects to contractors and do-it-yourself customers in Latin America. These stores market and sell Sherwin-Williams ® and other controlled brand architectural paint and coatings, protective and marine products, OEM product finishes and related products which are branded for the Latin America market. In addition, each store sells select purchased associated products. The Consumer Brands Group had sales to certain customers that, individually, may be a significant portion of the sales and related profitability of the segment. During 2023, the segment opened 11 net new stores, consisting of 17 stores opened and 6 stores closed. In 2022 and 2021, this segment (closed) opened (3) and 12 net new stores, respectively. The Consumer Brands Group also supports the Company’s other businesses around the world with new product research and development, manufacturing, distribution and logistics. Approximately 61% of the total sales of the Consumer Brands Group in 2023 were intersegment transfers of products primarily sold through the Paint Stores Group. This segment incurred most of the Company’s capital expenditures related to ongoing environmental compliance measures, manufacturing capacity expansion, operational efficiencies and maintenance projects at sites currently in operation. The CODM uses discrete financial information about the Consumer Brands Group, supplemented with information by geographic region, product type and customer type, to assess the performance of and allocate resources to the Consumer Brands Group as a whole. In accordance with ASC 280-10-50-9, the Consumer Brands Group as a whole is considered the operating segment, and because it meets the criteria in ASC 280-10-50-10, it is also considered a Reportable Segment. The Performance Coatings Group develops and sells industrial coatings for wood finishing and general industrial (metal and plastic) applications, automotive refinish, protective and marine coatings, coil coatings, packaging coatings and performance-based resins and colorants worldwide. This segment licenses certain technology and trade names worldwide, including Sherwin-Williams ® and other controlled brand products which are distributed through the Paint Stores Group, this segment’s 322 company-operated branches and by a direct sales staff and outside sales representatives to retailers, dealers, jobbers, licensees and other third-party distributors. The Performance Coatings Group had sales to certain customers that, individually, may be a significant portion of the sales of the segment. However, the loss of any single customer would not have a material adverse effect on the overall profitability of the segment. During 2023, the segment added 5 net new branches, consisting of 8 opened or acquired branches and 3 branches closed. The CODM uses discrete financial information about the Performance Coatings Group, supplemented with information about geographic divisions, business units and subsidiaries, to assess the performance of and allocate resources to the Performance Coatings Group as a whole. In accordance with ASC 280-10-50-9, the Performance Coatings Group as a whole is considered the operating segment, and because it meets the criteria in ASC 280-10-50-10, it is also considered a Reportable Segment. The Administrative segment includes the administrative expenses of the Company’s corporate headquarters site and the operations of a real estate management unit that is responsible for the ownership, management and leasing of non-retail properties held primarily for use by the Company, including the Company’s current global headquarters, and disposal of idle facilities. Also included in the Administrative segment was interest expense, interest and investment income, certain expenses related to closed facilities and environmental-related matters, and other expenses that were not directly associated with the Reportable Segments. The Administrative segment included a $20.1 million pre-tax gain on the divestiture of a non-core domestic aerosol business and a $27.1 million pre-tax loss for the impairment of assets related to the divestiture of China architectural business in 2023 and a $111.9 million pre-tax loss on the Wattyl divestiture in 2021. See Notes 3, 4 and 20 for additional information. Sales of this segment represented external leasing revenue. The Administrative segment did not include any significant foreign operations. Gains and losses from the sale of property were not a significant operating factor in determining the performance of the Administrative segment. Net external sales of all consolidated foreign subsidiaries were $4.428 billion, $4.294 billion and $4.223 billion for 2023, 2022 and 2021, respectively. Long-lived assets consisted of Property, plant and equipment, net, Goodwill, Intangible assets, net, Operating lease right-of-use assets, deferred pension assets and Other assets. The aggregate total of long-lived assets for the Company was $17.441 billion, $16.686 billion and $15.613 billion at December 31, 2023, 2022 and 2021, respectively. Long-lived assets of consolidated foreign subsidiaries totaled $3.586 billion, $3.369 billion and $2.785 billion at December 31, 2023, 2022 and 2021, respectively. Total Assets of the Company were $22.954 billion, $22.594 billion and $20.667 billion at December 31, 2023, 2022 and 2021, respectively. Total assets of consolidated foreign subsidiaries were $5.718 billion, $5.337 billion and $4.653 billion, which represented 24.9%, 23.6% and 22.5% of the Company’s total assets at December 31, 2023, 2022 and 2021, respectively. No single geographic area outside the United States was significant relative to consolidated Net sales or consolidated long-lived assets. Export sales and sales to any individual customer were each less than 10 percent of consolidated sales to unaffiliated customers during all years presented. In the reportable segment financial information that follows, Segment profit represents each segment’s Income before income taxes. Due to the nature of the Company’s integrated manufacturing operations and centralized administrative and information technology support, a substantial amount of allocations are made to determine segment financial information. Domestic intersegment transfers are primarily accounted for at the approximate fully absorbed manufactured cost, based on normal capacity volumes, plus customary distribution costs for paint products. Non-paint domestic and all international intersegment transfers are primarily accounted for at values comparable to normal unaffiliated customer sales. All intersegment transfers are eliminated within the Administrative segment. In 2023, the absorbed manufactured cost standards utilized for domestic intersegment transfers were established inclusive of forecasted cost reductions from planned initiatives. Deviations from the forecasted cost reductions were recognized within the Consumer Brands Group. Identifiable assets were those directly identified with each Reportable Segment. The Administrative segment assets consisted primarily of cash and cash equivalents, investments, deferred pension assets and property, plant and equipment related to the new global headquarters currently under construction. The segment results in the tables below reflect the segment change described above. 2023 Paint Stores Consumer Brands Performance Coatings Administrative Consolidated Net sales $ 12,839.5 $ 3,365.6 $ 6,843.1 $ 3.7 $ 23,051.9 Intersegment transfers 5,234.0 197.8 (5,431.8) — Total net sales and intersegment transfers $ 12,839.5 $ 8,599.6 $ 7,040.9 $ (5,428.1) $ 23,051.9 Segment profit $ 2,860.8 $ 309.3 $ 991.6 $ 4,161.7 Interest expense $ (417.5) (417.5) Administrative expenses and other (634.3) (634.3) Income before income taxes $ 2,860.8 $ 309.3 $ 991.6 $ (1,051.8) $ 3,109.9 % to net sales 22.3 % 9.2 % 14.5 % 13.5 % Identifiable assets $ 5,745.3 $ 6,631.8 $ 8,266.6 $ 2,310.7 $ 22,954.4 Capital expenditures 111.4 309.6 32.6 434.8 888.4 Depreciation 79.0 151.4 26.0 35.9 292.3 Amortization 3.3 72.4 253.0 1.5 330.2 2022 Paint Stores Consumer Brands Performance Coatings Administrative Consolidated Net sales $ 11,963.3 $ 3,388.4 $ 6,793.5 $ 3.7 $ 22,148.9 Intersegment transfers 5,214.8 203.7 (5,418.5) — Total net sales and intersegment transfers $ 11,963.3 $ 8,603.2 $ 6,997.2 $ (5,414.8) $ 22,148.9 Segment profit $ 2,348.1 $ 314.2 $ 734.9 $ 3,397.2 Interest expense $ (390.8) (390.8) Administrative expenses and other (433.3) (433.3) Income before income taxes $ 2,348.1 $ 314.2 $ 734.9 $ (824.1) $ 2,573.1 % to net sales 19.6 % 9.3 % 10.8 % 11.6 % Identifiable assets $ 5,873.6 $ 6,749.6 $ 8,296.8 $ 1,674.0 $ 22,594.0 Capital expenditures 87.3 295.0 38.7 223.5 644.5 Depreciation 73.9 126.2 29.1 34.8 264.0 Amortization 3.3 79.8 232.0 2.0 317.1 2021 Paint Stores Consumer Brands Performance Coatings Administrative Consolidated Net sales $ 10,616.2 $ 3,322.4 $ 6,003.8 $ 2.2 $ 19,944.6 Intersegment transfers 4,183.6 149.7 (4,333.3) — Total net sales and intersegment transfers $ 10,616.2 $ 7,506.0 $ 6,153.5 $ (4,331.1) $ 19,944.6 Segment profit $ 2,182.2 $ 415.3 $ 486.2 $ 3,083.7 Interest expense $ (334.7) (334.7) Administrative expenses and other (500.4) (500.4) Income before income taxes $ 2,182.2 $ 415.3 $ 486.2 $ (835.1) $ 2,248.6 % to net sales 20.6 % 12.5 % 8.1 % 11.3 % Identifiable assets $ 5,501.3 $ 5,287.7 $ 8,388.6 $ 1,489.1 $ 20,666.7 Capital expenditures 77.6 125.5 90.8 78.1 372.0 Depreciation 71.3 88.8 66.2 36.8 263.1 Amortization 3.5 83.9 218.9 3.2 309.5 |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts and Reserves (Schedule II) | 12 Months Ended |
Dec. 31, 2023 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts and Reserves (Schedule II) | Financial Statement Schedule Schedule II — Valuation and Qualifying Accounts and Reserves for the years ended December 31, 2023, 2022 and 2021 is set forth below. All other schedules for which provision is made in the applicable SEC accounting regulations are not required under the related instructions or are inapplicable and therefore have been omitted. Valuation and Qualifying Accounts and Reserves (Schedule II) Changes in deferred tax asset valuation allowances were as follows: (millions of dollars) 2023 2022 2021 Beginning balance $ 97.5 $ 97.2 $ 104.6 Additions (deductions) (1) 9.1 0.3 (7.4) Ending balance $ 106.6 $ 97.5 $ 97.2 (1) |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net income | $ 2,388.8 | $ 2,020.1 | $ 1,864.4 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Consolidation | Consolidation |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles (US GAAP) requires management to make estimates, judgments and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those amounts. |
Nature of Operations | Nature of Operations The Company is engaged in the development, manufacture, distribution and sale of paint, coatings and related products to professional, industrial, commercial and retail customers primarily in North and South America, with additional operations in the Caribbean region, Europe, Asia and Australia. |
Cash Equivalents | Cash Equivalents Management considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. |
Accounts Receivable and Allowance for Current Expected Credit Losses | Accounts Receivable and Allowance for Current Expected Credit Losses Accounts receivable are recorded at the time of credit sales, net of an allowance for current expected credit losses. The Company records an allowance for current expected credit losses to reduce Accounts receivable to the net amount expected to be collected (estimated net realizable value). Under ASC 326, the Company reviews the collectibility of the Accounts receivable balance each reporting period and estimates the allowance for current expected credit losses based on historical bad debt experience, aging of accounts receivable, current creditworthiness of customers, current economic factors, as well as reasonable and supportable forward-looking information. Accounts receivable balances are written-off against the allowance for current expected credit losses if a final determination of uncollectibility is made. All provisions for the allowance for current expected credit losses are included in Selling, general and administrative expenses. See Note 19 for further details. |
Inventories | Inventories Inventories are stated at the lower of cost or net realizable value with cost determined principally on the last-in, first-out (LIFO) method. If inventories accounted for on the LIFO method are reduced on a year-over-year basis, then liquidation of certain quantities carried at costs prevailing in prior years occurs. Management records an estimate of net realizable value for obsolete and discontinued inventories based on historical experience and current trends through reductions to inventory cost by recording a provision included in Cost of goods sold. If management estimates that the reasonable market value is below cost or determines that future demand was lower than current inventory levels, based on historical experience, current and projected market demand, current and projected volume trends and other relevant current and projected factors associated with the current economic conditions, a reduction in inventory cost to estimated net realizable value is provided for in the reserve for obsolescence. See Note 5 for further details. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment (including leasehold improvements) is stated on the basis of cost. Depreciation is charged to expense using the straight-line method over the assets’ estimated useful lives which range from 5 to 25 years for buildings and 3 to 15 years for machinery and equipment. Depreciation and amortization are included in the appropriate Cost of goods sold or Selling, general and administrative expenses caption on the Statements of Consolidated Income. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill represents the cost in excess of fair value of net assets acquired in business combinations. Intangible assets include software, customer relationships, intellectual property and trademarks. In accordance with the Goodwill and Other Intangibles Topic of the Financial Accounting Standards Board (FASB) ASC, goodwill and indefinite-lived trademarks are not amortized, but instead are tested for impairment on an annual basis, as well as whenever an event occurs or circumstances change that indicate impairment has occurred on a more likely than not basis. Finite-lived intangible assets are amortized on a straight-line basis over the expected period of benefit, which ranges primarily from 7 to 20 years. See Note 7 for further details. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets |
Derivative Instruments | Derivative Instruments The Company utilizes derivative instruments to mitigate certain risk exposures as part of its overall financial risk management policy and accounts for these instruments in accordance with the Derivatives and Hedging Topic of the ASC. Derivatives are recorded as assets or liabilities in the Consolidated Balance Sheets at fair value. Changes in fair value of the derivative instruments are recognized immediately in earnings unless the derivative instrument qualifies for and is designated in an effective hedging relationship. The Company entered into foreign currency forward contracts with maturity dates of less than twelve months in 2023, 2022, and 2021, primarily to hedge against value changes in foreign currency. There were no material foreign currency option and forward contracts outstanding at December 31, 2023, 2022 and 2021. See Note 20 for further details. The Company also entered into cross currency swap contracts to hedge its net investment in European operations in 2023, 2022, and 2021. These contracts qualified for and were designated as net investment hedges under US GAAP. The changes in fair value for the cross currency swaps are recognized in the foreign currency translation adjustments component of AOCI. The cash flow impact of these instruments is classified as an investing activity in the Statements of Consolidated Cash Flows. See Note 17 for further details. |
Non-Traded Investments | Non-Traded Investments |
Standby Letters of Credit | Standby Letters of Credit |
Product Warranties | Product Warranties |
Defined Benefit Pension and Other Postretirement Benefit Plans | Defined Benefit Pension and Other Postretirement Benefit Plans |
Defined Contribution Savings Plan | Defined Contribution Savings Plan |
Environmental Matters | Environmental Matters |
Stock-Based Compensation | Stock-Based Compensation |
Other Liabilities | Other Liabilities The Company retains risk for certain liabilities, primarily workers’ compensation claims, employee medical and disability benefits, and automobile, property, general and product liability claims. Estimated amounts are accrued for certain workers’ compensation, employee medical and disability benefits, automobile and property claims filed but unsettled and estimated claims incurred but not reported. Estimates are based upon management’s estimated aggregate liability for claims incurred using historical experience, actuarial assumptions followed in the insurance industry and actuarially-developed models for estimating certain liabilities. Certain estimated general and product liability claims filed but unsettled are accrued based on management’s best estimate of ultimate settlement or actuarial calculations of potential liability using industry experience and actuarial assumptions developed for similar types of claims. |
Foreign Currency Translation | Foreign Currency Translation All consolidated non-highly inflationary foreign operations use the local currency of the country of operation as the functional currency. Local currency asset and liability accounts are translated at year-end exchange rates while income and expense accounts are translated at average exchange rates. The resulting translation adjustments are included in AOCI. Economies with a three-year cumulative inflation rate of more than 100% are considered highly inflationary. For subsidiaries operating in highly inflationary economies, the parent’s reporting currency is the functional currency. Monetary assets and liabilities are translated into U.S. dollars using rates of exchange at the balance sheet date and non-monetary assets and liabilities are translated into U.S. dollars at their historical rates of exchange, with remeasurement adjustments and other transaction gains and losses recognized in Net income. See Note 20 for further details. |
Revenue Recognition | Revenue Recognition |
Customer and Vendor Consideration | Customer and Vendor Consideration The Company offers certain customers rebate and sales incentive programs which are classified as reductions in sales. Such programs are in the form of volume rebates, rebates that constituted a percentage of sales or rebates for attaining certain sales goals. The Company receives consideration from certain suppliers of raw materials in the form of volume rebates or rebates that constitute a percentage of purchases. These rebates are recognized on an accrual basis by the Company as a reduction of the purchase price of the raw materials and a subsequent reduction of Cost of goods sold when the related product was sold. |
Costs of Goods Sold | Cost of Goods Sold |
Selling, General and Administrative Expenses | Selling, General and Administrative Expenses Selling costs include advertising expenses, marketing costs, employee and store costs and sales commissions. The cost of advertising is expensed as incurred. The Company incurred $394.0 million, $314.4 million and $311.9 million in advertising costs during 2023, 2022 and 2021, respectively. General and administrative expenses include human resources, legal, finance and other support and administrative functions. |
Government Incentives | Government Incentives The Company receives incentives from various government entities in the form of tax rebates or credits, grants and loans. These incentives typically require that the Company maintain specified spending levels and other operational metrics and may be subject to reimbursement if conditions are not met or maintained. Government incentives are recorded in the Company’s consolidated financial statements in accordance with their purpose as a reduction of expense, a reduction of the cost of the capital investment or other income. The benefit of these incentives is recorded when received and all conditions as specified in the agreement are fulfilled. There were $86.6 million of government incentives received as cash payments related to the construction of the Company’s new headquarters and research and development center in 2022. These government incentives were recorded as a reduction in the carrying amount of the respective assets under construction within Property, plant and equipment, net on the Consolidated Balance Sheets and within Other as an investing activity on the Statements of Consolidated Cash Flows. There were no material government incentives received in 2023 or 2021. |
Supply Chain Financing | Supply Chain Financing As part of our strategy to manage working capital, we have entered into agreements with various financial institutions that act as intermediaries between the Company and certain suppliers. The Company is not a party to agreements between the suppliers and the financial institutions. These arrangements provide participating suppliers the option to settle outstanding accounts payable incurred by the Company in the normal course of business early at a discount and do not impact our rights and obligations with suppliers, including amounts due and scheduled payment terms. Under the terms of our agreements, the Company confirms the validity of each supplier invoice to the respective financial institution upon receipt. On the invoice due date, the Company settles the outstanding amount with the respective financial institution. Liabilities associated with these arrangements are recorded in Accounts payable |
Earnings Per Share | Earnings Per Share |
Reclassifications | Reclassifications Certain amounts in the consolidated financial statements and notes to the consolidated financial statements for 2022 and 2021 have been reclassified to conform to the 2023 presentation. |
Recently Issued Accounting Pronouncements | RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS Adopted Effective January 1, 2023, the Company adopted ASU 2022-04, “Liabilities - Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations.” This ASU requires disclosure about an entity’s use of supplier finance programs, including the key terms of the programs and the obligations outstanding at the end of the reporting period. The adoption of ASU 2022-04 did not affect the Company’s financial position, results of operations or cash flows as the standard only impacts financial statement footnote disclosures. See Note 1 for additional information. In addition, a required rollforward of activity within the programs will be disclosed prospectively beginning with the annual period ending December 31, 2024. Effective January 1, 2023, the Company adopted ASU 2021-08, “Business Combinations (Topic 805): Accounting for Contract Assets and Liabilities from Contracts with Customers.” This ASU requires an acquiring entity to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606. The adoption of ASU 2021-08 did not have a material impact on the Company’s financial position, results of operations, cash flows or financial statement footnote disclosures. Not Yet Adopted In March 2023, the FASB issued ASU 2023-02, “Investments - Equity Method and Joint Ventures (Topic 323): Accounting for investments in tax credit structures using the proportional amortization method.” This ASU allows entities to apply the proportional amortization method to all tax equity investments if certain conditions are met. In addition, the ASU requires certain disclosures about the nature and financial implications of tax equity investments on an entity’s financial position, results of operations and cash flows, including the impact of transition on the periods presented, if any. This ASU is effective for fiscal years and interim periods beginning after December 15, 2023, with early adoption permitted. The Company does not expect the adoption of this ASU to have a material impact on the Company’s financial position, results of operations or cash flows and the Company will provide required disclosures, as applicable, in accordance will the provisions of the ASU. In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” This ASU enhances reportable segment disclosures on both an annual and interim basis primarily in regards to the disclosure of significant segment expenses that are regularly provided to the chief operating decision maker (CODM) and included within the reported measure(s) of segment profit or loss. In addition, the ASU requires disclosure, by segment, of other items included in the reported measure(s) of segment profit or loss, including qualitative information describing the composition, nature and type of each item. The ASU also expands disclosure requirements related to the CODM, including how the reported measure(s) of segment profit or loss are used to assess segment performance and allocate resources, the method used to allocate overhead for significant segment expenses and others. Lastly, all current required annual segment reporting disclosures under Topic 280 are now effective for interim periods. The ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is evaluating the impact of adopting this ASU. In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” This ASU enhances income tax disclosures by providing information to better assess how an entity’s operations, related tax risks, tax planning and operational opportunities affect its tax rate and prospects for future cash flows. This ASU requires additional disclosures to the annual effective tax rate reconciliation including specific categories and further disaggregated reconciling items that meet the quantitative threshold. Additionally, the ASU requires disclosures relating to income tax expense and payments made to federal, state, local and foreign jurisdictions. This ASU is effective for fiscal years and interim periods beginning after December 15, 2024. The Company is evaluating the impact of adopting this ASU. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Variable Interest Entities | The following table summarizes the balances related to the investments. 2023 2022 2021 Other assets $ 675.0 $ 587.0 $ 355.8 Other accruals 80.9 89.8 61.8 Other long-term liabilities 568.2 476.5 289.7 |
Changes in the Company's Accrual for Product Warranty Claims | Changes in the Company’s accrual for product warranty claims during 2023, 2022 and 2021, including customer satisfaction settlements during the year, were as follows: 2023 2022 2021 Balance at January 1 $ 36.2 $ 35.2 $ 43.3 Charges to expense 37.0 30.1 27.5 Settlements (32.8) (29.1) (35.6) Balance at December 31 $ 40.4 $ 36.2 $ 35.2 |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | The following table summarizes the activity associated with the Restructuring Plan: Consumer Brands Performance Administrative Total Balance at January 1, 2022 $ — $ — $ — $ — Provisions: Severance and related costs 14.5 19.5 — 34.0 Other qualified costs 11.1 2.7 — 13.8 Total 25.6 22.2 — 47.8 Payments, currency, and other adjustments — (6.1) — (6.1) Balance at December 31, 2022 25.6 16.1 — 41.7 Provisions: Severance and related costs 3.6 (0.2) 1.3 4.7 Other qualified costs 10.6 — — 10.6 Total 14.2 (0.2) 1.3 15.3 Payments, currency, and other adjustments (39.8) (15.9) (1.3) (57.0) Balance at December 31, 2023 $ — $ — $ — $ — Total expense incurred $ 39.8 $ 22.0 $ 1.3 $ 63.1 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Included in Inventories were the following: 2023 2022 2021 Finished goods $ 1,810.9 $ 1,957.7 $ 1,378.8 Work in process and raw materials 518.9 668.8 548.4 Inventories $ 2,329.8 $ 2,626.5 $ 1,927.2 The following table summarizes the extent to which the Company’s Inventories use the LIFO cost method, and presents the effect on Inventories had the Company used the first-in, first-out (FIFO) inventory valuation method. 2023 2022 2021 Percentage of total inventories on LIFO 74 % 74 % 70 % Excess of FIFO over LIFO $ 668.0 $ 792.7 $ 593.0 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Included in Property, plant and equipment, net were the following: 2023 2022 2021 Land $ 257.5 $ 263.0 $ 257.7 Buildings 1,048.7 1,199.3 1,157.8 Machinery and equipment 3,459.8 3,230.2 3,043.6 Construction in progress 1,111.0 496.1 205.4 Property, plant and equipment, gross 5,877.0 5,188.6 4,664.5 Less allowances for depreciation 3,040.2 2,981.6 2,797.2 Property, plant and equipment, net $ 2,836.8 $ 2,207.0 $ 1,867.3 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Changes in the Carrying Value of Goodwill by Reportable Segment | A summary of changes in the Company’s carrying value of goodwill by Reportable Segment is as follows: Goodwill Paint Stores Group Consumer Brands Performance Coatings Consolidated Balance at January 1, 2021 (1) $ 2,256.6 $ 1,754.6 $ 3,037.9 $ 7,049.1 Reclassification related to segment change (2) (74.5) 74.5 — Acquisitions 155.6 155.6 Currency and other adjustments (45.7) (24.4) (70.1) Balance at December 31, 2021 (1) 2,182.1 1,783.4 3,169.1 7,134.6 Acquisitions and acquisition adjustments 49.7 21.3 422.5 493.5 Currency and other adjustments (2.8) (42.1) (44.9) Balance at December 31, 2022 (1) 2,231.8 1,801.9 3,549.5 7,583.2 Acquisitions and acquisition adjustments 8.3 8.3 Currency and other adjustments (9.1) 43.6 34.5 Balance at December 31, 2023 (1) $ 2,231.8 $ 1,792.8 $ 3,601.4 $ 7,626.0 (1) Net of accumulated impairment losses of $19.4 million ($10.2 million in Paint Stores Group, $8.4 million in Consumer Brands Group and $0.8 million in Performance Coatings Group). (2) |
Schedule of Finite-Lived Intangible Assets | A summary of the Company’s carrying value of intangible assets is as follows: Finite-Lived Intangible Assets Trademarks With Indefinite Lives (1) Total Software Customer Intellectual All Other Subtotal December 31, 2023 Gross $ 158.2 $ 3,263.4 $ 1,968.5 $ 232.6 $ 5,622.7 Accumulated amortization (152.8) (1,310.6) (644.4) (152.9) (2,260.7) Net value $ 5.4 $ 1,952.8 $ 1,324.1 $ 79.7 $ 3,362.0 $ 518.5 $ 3,880.5 December 31, 2022 Gross $ 180.2 $ 3,121.2 $ 1,732.5 $ 427.5 $ 5,461.4 Accumulated amortization (148.1) (1,132.1) (477.4) (258.0) (2,015.6) Net value $ 32.1 $ 1,989.1 $ 1,255.1 $ 169.5 $ 3,445.8 $ 556.2 $ 4,002.0 December 31, 2021 Gross $ 166.0 $ 3,005.7 $ 1,730.3 $ 303.5 $ 5,205.5 Accumulated amortization (149.3) (961.6) (396.5) (279.7) (1,787.1) Net value $ 16.7 $ 2,044.1 $ 1,333.8 $ 23.8 $ 3,418.4 $ 583.1 $ 4,001.5 (1) Trademarks are net of accumulated impairment losses of $ 163.8 million |
Schedule of Indefinite-Lived Intangible Assets | A summary of the Company’s carrying value of intangible assets is as follows: Finite-Lived Intangible Assets Trademarks With Indefinite Lives (1) Total Software Customer Intellectual All Other Subtotal December 31, 2023 Gross $ 158.2 $ 3,263.4 $ 1,968.5 $ 232.6 $ 5,622.7 Accumulated amortization (152.8) (1,310.6) (644.4) (152.9) (2,260.7) Net value $ 5.4 $ 1,952.8 $ 1,324.1 $ 79.7 $ 3,362.0 $ 518.5 $ 3,880.5 December 31, 2022 Gross $ 180.2 $ 3,121.2 $ 1,732.5 $ 427.5 $ 5,461.4 Accumulated amortization (148.1) (1,132.1) (477.4) (258.0) (2,015.6) Net value $ 32.1 $ 1,989.1 $ 1,255.1 $ 169.5 $ 3,445.8 $ 556.2 $ 4,002.0 December 31, 2021 Gross $ 166.0 $ 3,005.7 $ 1,730.3 $ 303.5 $ 5,205.5 Accumulated amortization (149.3) (961.6) (396.5) (279.7) (1,787.1) Net value $ 16.7 $ 2,044.1 $ 1,333.8 $ 23.8 $ 3,418.4 $ 583.1 $ 4,001.5 (1) Trademarks are net of accumulated impairment losses of $ 163.8 million |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Long-term Debt | The table below summarizes the carrying value of the Company’s outstanding debt, net of capitalized debt issuance costs and discounts: Due Date 2023 2022 2021 3.45% Senior Notes 2027 $ 1,493.9 $ 1,492.1 $ 1,490.4 4.50% Senior Notes 2047 1,233.0 1,232.3 1,231.6 2.95% Senior Notes 2029 794.6 793.6 792.6 4.05% Senior Notes 2024 598.8 596.9 — 3.80% Senior Notes 2049 543.6 543.2 543.0 3.125% Senior Notes 2024 499.7 499.0 498.3 2.30% Senior Notes 2030 497.1 496.7 496.2 2.20% Senior Notes 2032 494.8 494.2 493.6 3.30% Senior Notes 2050 494.3 494.1 493.9 2.90% Senior Notes 2052 491.9 491.5 491.3 3.45% Senior Notes 2025 399.4 399.1 398.7 4.25% Senior Notes 2025 398.6 397.7 — 4.55% Senior Notes 2045 395.2 395.0 394.7 3.95% Senior Notes 2026 353.1 354.7 356.2 4.00% Senior Notes 2042 297.0 296.9 296.7 3.30% Senior Notes 2025 249.9 249.8 249.6 4.40% Senior Notes 2045 240.9 240.5 240.0 0.53% to 8.00% Promissory Notes Through 2026 0.9 1.6 2.0 7.375% Debentures 2027 — 119.2 119.2 7.45% Debentures 2097 — 3.5 3.5 2.75% Senior Notes 2022 — — 260.0 Total (1) 9,476.7 9,591.6 8,851.5 Less amounts due within one year 1,098.8 0.6 260.6 Long-term debt $ 8,377.9 $ 9,591.0 $ 8,590.9 (1) |
Schedule of Short-term Debt | The table below summarizes the Company’s Short-term borrowings: 2023 2022 2021 Domestic commercial paper $ 347.7 $ 938.5 $ 739.9 Foreign facilities 26.5 39.6 23.6 Total $ 374.2 $ 978.1 $ 763.5 Weighted average interest rate: Domestic 5.5 % 4.6 % 0.3 % Foreign 3.6 % 6.7 % 9.5 % |
Pension, Health Care and Othe_2
Pension, Health Care and Other Postretirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Summary of the Components of the Net Pension Costs and Cumulative Other Comprehensive Loss Related to the Defined Benefit Pension Plans | The following table summarizes the components of the net pension costs and AOCI related to the defined benefit pension plans: Domestic Foreign 2023 2022 2021 2023 2022 2021 Net pension cost: Service cost $ 3.0 $ 4.6 $ 4.9 $ 4.4 $ 6.3 $ 7.4 Interest cost 4.6 3.2 2.7 11.8 7.3 5.7 Expected return on plan assets (7.3) (7.6) (7.1) (12.3) (9.4) (9.6) Amortization of prior service cost (credit) 1.3 1.0 1.1 (0.2) (0.2) (0.1) Amortization of actuarial (gains) losses (1.5) 0.2 1.5 Ongoing pension cost 1.6 1.2 1.6 2.2 4.2 4.9 Settlement (credits) costs (1.1) (0.3) 0.3 Net pension cost 1.6 1.2 1.6 1.1 3.9 5.2 Other changes in plan assets and projected benefit obligation recognized in AOCI (before taxes): Net actuarial (gains) losses arising during the year (8.6) 5.0 (10.5) 5.8 (29.6) (44.9) Prior service cost (credit) arising during the year 3.0 1.6 1.4 1.1 (0.3) (1.0) Amortization of actuarial gains (losses) 1.5 (0.2) (1.5) Amortization of prior service (cost) credit (1.3) (1.0) (1.1) 0.2 0.2 0.1 Loss (gain) recognized for settlement 1.1 0.3 (0.3) Exchange rate (loss) recognized during the year (1.5) (0.4) (0.6) Total recognized in AOCI (6.9) 5.6 (10.2) 8.2 (30.0) (48.2) Total recognized in net pension cost and AOCI $ (5.3) $ 6.8 $ (8.6) $ 9.3 $ (26.1) $ (43.0) |
Summary of the Fair Value of the Defined Benefit Pension Plan Assets | The following tables summarize the fair value of the defined benefit pension plan assets at December 31, 2023, 2022 and 2021. The presentation is in accordance with the Fair Value Topic of the ASC. Fair Value at December 31, 2023 Quoted Prices Significant Significant Investments at fair value: Equity investments (1) $ 133.0 $ 72.9 $ 60.1 Fixed income investments (2) 188.9 36.8 152.1 Other assets (3) 34.6 34.6 Total investments in fair value hierarchy 356.5 $ 109.7 $ 246.8 Investments measured at NAV or its equivalent (4) 25.3 Total investments $ 381.8 Fair Value at December 31, 2022 Quoted Prices Significant Significant Investments at fair value: Equity investments (1) $ 80.1 $ 8.5 $ 71.6 Fixed income investments (2) 117.6 117.6 Other assets (3) 34.4 34.4 Total investments in fair value hierarchy 232.1 $ 8.5 $ 223.6 Investments measured at NAV or its equivalent (4) 110.9 Total investments $ 343.0 Fair Value at December 31, 2021 Quoted Prices Significant Significant Investments at fair value: Equity investments (1) $ 133.1 $ 13.5 $ 119.6 Fixed income investments (2) 172.1 172.1 Other assets (3) 36.7 36.7 Total investments in fair value hierarchy 341.9 $ 13.5 $ 328.4 Investments measured at NAV or its equivalent (4) 141.7 Total investments $ 483.6 (1) This category includes actively managed equity assets that track primarily to the S&P 500 or an international equity index. (2) This category includes government and corporate bonds that track primarily to the Barclays Capital Aggregate Bond Index or an international bond index. (3) This category includes real estate and pooled investment funds. (4) This category includes pooled investment funds and private equity funds that are measured at NAV or its equivalent using the practical expedient. Therefore, these investments are not classified in the fair value hierarchy. |
Summary of the Obligations, Plan Assets and Assumptions Used for Defined Benefit Pension Plans | The following table summarizes the obligations, plan assets and assumptions used for the defined benefit pension plans, which are all measured as of December 31: Domestic Foreign 2023 2022 2021 2023 2022 2021 Accumulated benefit obligations at end of year $ 100.5 $ 90.3 $ 117.0 $ 236.4 $ 209.3 $ 334.8 Projected benefit obligations: Balances at beginning of year $ 91.7 $ 120.8 $ 118.6 $ 230.4 $ 362.7 $ 401.1 Service cost 3.0 4.6 4.9 4.4 6.3 7.4 Interest cost 4.6 3.2 2.7 11.8 7.3 5.7 Actuarial losses (gains) 2.8 (32.6) (2.8) 8.8 (112.4) (26.0) Contributions and other 3.0 1.6 1.4 2.0 3.2 (4.6) Settlements (3.7) (2.4) (1.7) Effect of foreign exchange 14.1 (28.8) (9.8) Benefits paid (3.0) (5.9) (4.0) (10.0) (5.5) (9.4) Balances at end of year 102.1 91.7 120.8 257.8 230.4 362.7 Plan assets: Balances at beginning of year 119.4 155.2 144.3 223.6 328.4 318.2 Actual returns on plan assets 18.7 (29.9) 14.9 15.4 (73.4) 27.9 Contributions and other 8.6 5.8 (1.1) Settlements (3.7) (2.4) (1.7) Effect of foreign exchange 12.8 (29.3) (5.5) Benefits paid (3.0) (5.9) (4.0) (10.0) (5.5) (9.4) Balances at end of year 135.1 119.4 155.2 246.7 223.6 328.4 Excess (deficient) plan assets over projected benefit obligations $ 33.0 $ 27.7 $ 34.4 $ (11.1) $ (6.8) $ (34.3) Assets and liabilities recognized in the Consolidated Balance Sheets: Deferred pension assets $ 33.0 $ 27.7 $ 34.4 $ 57.9 $ 51.7 $ 44.7 Other accruals (3.4) (3.0) (3.3) Other long-term liabilities (65.6) (55.5) (75.7) $ 33.0 $ 27.7 $ 34.4 $ (11.1) $ (6.8) $ (34.3) Amounts recognized in AOCI: Net actuarial gains $ 16.6 $ 8.0 $ 13.0 $ 24.8 $ 31.7 $ 1.9 Prior service (costs) credits (8.8) (7.1) (6.5) 0.3 1.6 1.4 $ 7.8 $ 0.9 $ 6.5 $ 25.1 $ 33.3 $ 3.3 Weighted-average assumptions used to determine projected benefit obligations: Discount rate 5.09 % 5.27 % 3.12 % 4.81 % 5.06 % 2.26 % Rate of compensation increase 3.00 % 3.00 % 3.00 % 3.33 % 3.39 % 3.25 % Weighted-average assumptions used to determine net pension cost: Discount rate 5.27 % 3.12 % 2.85 % 5.06 % 2.26 % 1.63 % Expected long-term rate of return on assets 6.25 % 5.00 % 5.00 % 5.48 % 3.19 % 3.17 % Rate of compensation increase 3.00 % 3.00 % 3.00 % 3.39 % 3.25 % 2.91 % |
Summary of the Obligation and the Assumptions Used for Postretirement Benefits Other than Pensions | The following table summarizes the obligation and the assumptions used for other postretirement benefits: Other Postretirement Benefits 2023 2022 2021 Benefit obligation: Balance at beginning of year - unfunded $ 153.8 $ 276.4 $ 291.6 Service cost 0.6 1.2 1.4 Interest cost 7.4 6.0 4.9 Actuarial gain (8.0) (54.5) (4.1) Plan amendments (62.8) (2.2) Benefits paid (6.6) (12.5) (15.2) Balance at end of year - unfunded $ 147.2 $ 153.8 $ 276.4 Liabilities recognized in the Consolidated Balance Sheets: Other accruals $ (14.0) $ (14.5) $ (17.0) Postretirement benefits other than pensions (133.2) (139.3) (259.4) $ (147.2) $ (153.8) $ (276.4) Amounts recognized in AOCI: Net actuarial gains (losses) $ 12.9 $ 4.7 $ (54.0) Prior service credits 40.0 64.0 1.6 $ 52.9 $ 68.7 $ (52.4) Weighted-average assumptions used to determine benefit obligation: Discount rate 4.97 % 5.16 % 2.83 % Health care cost trend rate - pre-65 7.00 % 6.25 % 6.38 % Health care cost trend rate - post-65 6.00 % 5.50 % 5.13 % Prescription drug cost increases 9.00 % 8.25 % 8.25 % Employer Group Waiver Plan (EGWP) trend rate N/A N/A 8.25 % Weighted-average assumptions used to determine net periodic benefit cost: Discount rate 5.16 % 2.83 % 2.49 % Health care cost trend rate - pre-65 6.25 % 6.38 % 6.06 % Health care cost trend rate - post-65 5.50 % 5.13 % 5.13 % Prescription drug cost increases 8.25 % 8.25 % 8.25 % |
Summary of the Components of Net Periodic Benefit Cost and Cumulative Other Comprehensive Loss Related to Postretirement Benefits Other than Pensions | The following table summarizes the components of the net periodic benefit cost and AOCI related to other postretirement benefits: Other Postretirement Benefits 2023 2022 2021 Net periodic benefit cost: Service cost $ 0.6 $ 1.2 $ 1.4 Interest cost 7.4 6.0 4.9 Amortization of actuarial losses 0.1 4.2 4.7 Amortization of prior service (credit) cost (23.9) (0.4) 0.3 Net periodic benefit cost (15.8) 11.0 11.3 Other changes in projected benefit obligation recognized in AOCI (before taxes): Net actuarial gain arising during the year (8.0) (54.5) (4.1) Prior service (credit) arising during the year (62.8) (2.2) Amortization of actuarial losses (0.1) (4.2) (4.7) Amortization of prior service credit (cost) 23.9 0.4 (0.3) Total recognized in AOCI 15.8 (121.1) (11.3) Total recognized in net periodic benefit cost and AOCI $ — $ (110.1) $ — |
Expected Retiree Health Care Benefit Cash Payments | The Company expects to make retiree health care benefit cash payments as follows: 2024 $ 14.0 2025 14.9 2026 14.8 2027 14.4 2028 13.7 2029 through 2033 53.4 Total expected benefit cash payments $ 125.2 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Additional Lease Information | Additional lease information is summarized below: 2023 2022 2021 Operating lease cost $ 528.5 $ 498.0 $ 478.0 Short-term lease cost 58.5 47.1 43.8 Variable lease cost 104.1 89.9 84.4 Operating cash outflows from operating leases $ 513.8 $ 480.1 $ 461.4 Leased assets obtained in exchange for new operating lease liabilities $ 473.3 $ 463.1 $ 505.2 Weighted average remaining lease term 5.5 years 5.6 years 5.8 years Weighted average discount rate 3.8 % 3.3 % 3.0 % |
Maturities of Operating Lease Liabilities | The following table reconciles the undiscounted cash flows for each of the next five years and thereafter to the operating lease liabilities recognized on the Consolidated Balance Sheets as of December 31, 2023. The reconciliation excludes short-term leases that are not recorded on the Consolidated Balance Sheets. Year Ending December 31, 2024 $ 513.5 2025 449.3 2026 367.3 2027 279.7 2028 195.8 Thereafter 383.9 Total lease payments 2,189.5 Amount representing interest (230.7) Present value of operating lease liabilities $ 1,958.8 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Schedule of Stock by Class | Shares Shares Balance at January 1, 2021 1,138,692 268,676,631 Shares issued for exercise of option rights 2,365,168 Shares tendered as payment for option rights exercised 4,324 (4,324) Shares issued for vesting of restricted stock units 276,948 Shares tendered in connection with vesting of restricted stock units 95,618 (95,618) Treasury stock purchased 10,075,000 (10,075,000) Balance at December 31, 2021 11,313,634 261,143,805 Shares issued for exercise of option rights 778,075 Shares tendered as payment for option rights exercised 3,861 (3,861) Shares issued for vesting of restricted stock units 357,832 Shares tendered in connection with vesting of restricted stock units 124,852 (124,852) Treasury stock purchased 3,350,000 (3,350,000) Treasury stock sold (1) (75,000) 75,000 Balance at December 31, 2022 14,717,347 258,875,999 Shares issued for exercise of option rights 1,081,815 Shares tendered as payment for option rights exercised 10,467 (10,467) Shares issued for vesting of restricted stock units 302,713 Shares tendered in connection with vesting of restricted stock units 106,770 (106,770) Treasury stock purchased 5,600,000 (5,600,000) Balance at December 31, 2023 20,434,584 254,543,290 (1) During the year ended December 31, 2022, the Company sold treasury shares to fund Company contributions to the domestic defined contribution plan. The related proceeds were $22.0 million. |
Schedule of Dividends Payable | The following table summarizes the dividends declared and paid on common stock: 2023 2022 2021 Cash dividend per share $ 2.42 $ 2.40 $ 2.20 Total dividends (in millions) 623.7 618.5 587.1 |
Schedule of Share Repurchases | The table below summarizes the Company’s share repurchase activity: 2023 2022 2021 Treasury stock purchases (in millions) $ 1,432.0 $ 883.2 $ 2,752.3 Treasury stock purchases (shares) 5,600,000 3,350,000 10,075,000 Average price per share $ 255.72 $ 263.64 $ 273.18 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Compensation Arrangements by Share-Based Payment Award | At December 31, 2023, the Company had total unrecognized stock-based compensation expense of $169.3 million that is expected to be recognized over a weighted-average period of 1.08 years. 2023 2022 2021 Stock-based compensation expense $ 115.9 $ 99.7 $ 97.7 Income tax benefit recognized 28.6 24.6 24.1 |
Weighted-Average Assumptions Used for Estimating the Fair Value of Option Rights | The fair value of the Company’s options was estimated at the date of grant using a Black-Scholes-Merton option-pricing model with the following weighted-average assumptions for all options granted: 2023 2022 2021 Risk-free interest rate 4.57 % 4.00 % 1.11 % Expected life of options 5.02 years 5.05 years 5.05 years Expected dividend yield of stock .94 % .92 % .75 % Expected volatility of stock 29.3 % 31.6 % 26.8 % |
Summary of Non-Qualified and Incentive Stock Option Right Activity | The following table summarizes the Company’s option activity: Optioned Weighted Aggregate Weighted Average Remaining Term Outstanding at January 1, 2023 9,102,638 $ 160.09 $ 756.6 5.82 Granted 994,305 247.58 Exercised (1,086,468) 105.23 Forfeited (65,225) 245.11 Expired (20,239) 234.69 Outstanding at December 31, 2023 8,925,011 $ 175.70 $ 1,215.6 5.64 Exercisable at December 31, 2023 7,002,046 $ 156.54 $ 1,087.8 4.69 The following table summarizes fair value and intrinsic value information for option activity: 2023 2022 2021 Weighted average grant date fair value per share $ 77.08 $ 69.82 $ 68.63 Total fair value of options vested 61.3 57.9 53.2 Total intrinsic value of options exercised 170.6 125.4 485.8 |
Summary of RSU Activity | The following table summarizes the Company’s RSU activity: Number of RSUs Weighted Average Grant Date Fair Value Per Share Aggregate Weighted Average Remaining Term Outstanding at January 1, 2023 401,924 $ 231.09 $ 95.4 1.02 Granted 343,564 232.22 Vested (302,713) 194.37 Forfeited (7,901) 246.91 Outstanding at December 31, 2023 434,874 244.21 $ 135.6 1.26 The following table summarizes the fair value and intrinsic value information for RSU activity: 2023 2022 2021 Weighted average grant date fair value per share $ 232.22 $ 271.75 $ 238.89 Intrinsic value of RSUs vested during year 68.5 97.5 66.3 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Statement of Other Comprehensive Income [Abstract] | |
Components Of Accumulated Other Comprehensive Income | The components of AOCI, including the reclassification adjustments for items that were reclassified from AOCI to Net income, are shown below. Foreign Currency Translation Adjustments (1) Pension and Other Postretirement Benefits Adjustments (2) Unrealized Net Gains on Cash Flow Hedges (3) Total Balance at January 1, 2021 $ (671.5) $ (87.2) $ 40.4 $ (718.3) Amounts recognized in AOCI (30.6) 48.7 18.1 Amounts reclassified from AOCI 6.3 (4.5) 1.8 Balance at December 31, 2021 (702.1) (32.2) 35.9 (698.4) Amounts recognized in AOCI (108.7) 106.8 (1.9) Amounts reclassified from AOCI 3.7 (4.0) (0.3) Balance at December 31, 2022 (810.8) 78.3 31.9 (700.6) Amounts recognized in AOCI 93.9 3.9 97.8 Amounts reclassified from AOCI (17.9) (3.6) (21.5) Balance at December 31, 2023 $ (716.9) $ 64.3 $ 28.3 $ (624.3) (1) Includes changes in the fair value of cross currency swap contracts of $(24.9) million, $34.1 million, $37.1 million in 2023, 2022 and 2021, respectively. See Note 17. (2) Net of taxes of $3.1 million, $(35.0) million, $(14.7) million in 2023, 2022 and 2021, respectively. See Note 9. (3) Net of taxes of $1.2 million, $1.1 million and $1.0 million in 2023, 2022 and 2021, respectively. See Statements of Consolidated Comprehensive Income. |
Derivatives and Hedging (Tables
Derivatives and Hedging (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | The outstanding contracts as of December 31, 2023 are summarized in the table below. Contract Date Notional Value Maturity Date February 13, 2020 $ 500.0 June 1, 2024 November 8, 2021 162.7 June 1, 2027 March 28, 2023 150.0 August 8, 2024 June 28, 2023 200.0 August 8, 2025 December 7, 2023 150.0 August 15, 2029 2023 2022 2021 (Losses) gains $ (33.1) $ 45.2 $ 49.3 Tax effect 8.2 (11.1) (12.2) (Losses) gains, net of taxes $ (24.9) $ 34.1 $ 37.1 |
Schedule of Derivative Instruments Fair Value | The following table summarizes the balance sheet location of the cross currency swap contracts. See Note 18 for additional information on the fair value of these contracts. December 31, December 31, December 31, 2023 2022 2021 Other assets $ — $ 9.1 $ — Other accruals (12.0) — — Other long-term liabilities (12.4) — 36.5 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Financial Assets And Liabilities Measured At Fair Value On a Recurring Basis | The following table summarizes the Company’s assets and liabilities measured at fair value on a recurring basis, categorized using the fair value hierarchy. December 31, 2023 December 31, 2022 December 31, 2021 Total Level 1 Level 2 Total Level 1 Level 2 Total Level 1 Level 2 Assets: Deferred compensation plan $ 84.7 $ 84.7 $ 74.1 $ 43.7 $ 30.4 $ 80.4 $ 43.1 $ 37.3 Qualified replacement plan — 29.8 29.8 98.8 98.8 Net investment hedges — 9.1 9.1 — $ 84.7 $ 84.7 $ — $ 113.0 $ 73.5 $ 39.5 $ 179.2 $ 141.9 $ 37.3 Liabilities: Net investment hedges $ 24.4 $ 24.4 $ — $ 36.5 $ 36.5 |
Carrying Amount and Fair Value of Debt | The following table summarizes the carrying amounts and fair values of the Company’s publicly traded debt and non-traded debt. December 31, 2023 2022 2021 Carrying Fair Carrying Amount Fair Carrying Amount Fair Publicly traded debt $ 9,475.8 $ 8,615.1 $ 9,590.0 $ 8,382.3 $ 8,849.6 $ 9,777.4 Non-traded debt 0.9 0.8 1.6 1.5 1.9 1.9 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Accounts Receivable and Current and Long-Term Contract Assets and Liabilities | The Company’s Accounts receivable and current and long-term contract assets and liabilities are summarized in the following table. Accounts Receivable, Less Allowance Contract Assets (Current) Contract Assets (Long-Term) Contract Liabilities (Current) Contract Liabilities (Long-Term) Balance sheet caption: Accounts receivable Other current assets Other assets Other accruals Other liabilities Balance at December 31, 2022 $ 2,563.6 $ 43.8 $ 117.7 $ 292.9 $ 7.1 Balance at December 31, 2023 2,467.9 46.2 151.7 365.7 3.8 |
Schedule of Allowance for Current Expected Credit Losses | The following table summarizes the movement in the Company’s allowance for current expected credit losses: 2023 2022 2021 Beginning balance $ 56.6 $ 48.9 $ 53.5 Bad debt expense 67.9 65.3 33.8 Uncollectible accounts written off, net of recoveries (64.9) (57.6) (38.4) Ending balance $ 59.6 $ 56.6 $ 48.9 |
Other Expense (Income) (Tables)
Other Expense (Income) (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Other Income and Expenses [Abstract] | |
Other General (Income) Expense, Net | Included in Other general expense (income) - net were the following: 2023 2022 2021 Provisions for environmental matters - net $ 80.7 $ (7.1) $ (4.0) (Gain) loss on divestiture of businesses (see Note 3) (20.1) — 111.9 Loss (gain) on sale or disposition of assets 0.9 (17.8) (6.1) Other 5.6 — — Total $ 67.1 $ (24.9) $ 101.8 |
Other Expense (Income), Net | Included in Other expense (income) - net were the following: 2023 2022 2021 Investment (gains) losses $ (22.9) $ 9.7 $ (30.4) Loss (gain) on extinguishment of debt (see Note 8) 12.8 — (1.4) Net expense from banking activities 15.0 12.2 10.3 Foreign currency transaction related losses - net 80.5 33.6 12.0 Miscellaneous pension and benefit (income) expense (21.1) 4.0 4.4 Other income (48.5) (39.6) (29.0) Other expense 49.7 27.1 14.6 Total $ 65.5 $ 47.0 $ (19.5) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Significant Components of the Provisions for Income Taxes | Significant components of the provisions for income taxes were as follows: 2023 2022 2021 Current: Federal $ 553.4 $ 505.5 $ 331.2 Foreign 147.6 90.3 86.5 State and local 109.0 102.0 46.8 Total current 810.0 697.8 464.5 Deferred: Federal (39.9) (81.7) (36.5) Foreign (51.5) (47.3) (40.4) State and local 2.5 (15.8) (3.4) Total deferred (88.9) (144.8) (80.3) Total provisions for income taxes $ 721.1 $ 553.0 $ 384.2 |
Reconciliation of the Statutory Federal Income Tax Rate to the Effective Tax Rate | A reconciliation of the statutory federal income tax rate to the effective tax rate follows: 2023 2022 2021 Statutory federal income tax rate 21.0 % 21.0 % 21.0 % Effect of: State and local income taxes 3.0 2.8 2.2 Investment vehicles (0.5) (0.4) (0.8) Employee share-based payments (1.1) (1.4) (4.8) Research and development credits (0.4) (0.6) (0.6) Amended returns and refunds 0.2 0.4 0.2 Taxes on non-U.S. earnings 0.8 0.2 (0.4) Other - net 0.2 (0.5) 0.3 Reported effective tax rate 23.2 % 21.5 % 17.1 % |
Significant Components of Income Before Income Taxes as Used for Income Tax Purposes | Significant components of income before income taxes as used for income tax purposes, were as follows: 2023 2022 2021 Domestic $ 2,817.0 $ 2,427.6 $ 2,106.8 Foreign 292.9 145.5 141.8 $ 3,109.9 $ 2,573.1 $ 2,248.6 |
Significant Components of Deferred Tax Assets and Liabilities | Significant components of the Company’s deferred tax assets and liabilities as of December 31, 2023, 2022 and 2021 were as follows: 2023 2022 2021 Deferred tax assets: Environmental and other similar items $ 72.0 $ 66.4 $ 73.2 Employee related and benefit items 162.1 157.1 170.3 Operating lease liabilities 483.2 478.1 463.1 Research and development capitalization 81.5 52.6 Other items 205.6 204.1 192.0 Total deferred tax assets 1,004.4 958.3 898.6 Deferred tax liabilities: Intangible assets and Property, plant, and equipment 1,001.1 973.4 1,053.7 LIFO inventories 115.2 97.3 68.6 Operating lease right-of-use assets 465.6 460.5 448.4 Other items 28.6 31.7 33.3 Total deferred tax liabilities 1,610.5 1,562.9 1,604.0 Net deferred tax liabilities $ 606.1 $ 604.6 $ 705.4 |
Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 2023 2022 2021 Balance at beginning of year $ 242.4 $ 228.5 $ 227.0 Additions based on tax positions related to the current year 14.2 18.7 14.0 Additions for tax positions of prior years 12.6 10.6 23.1 Reductions for tax positions of prior years (16.9) (6.0) (22.1) Settlements (123.2) (1.7) (5.6) Lapses of statutes of limitations (7.3) (7.7) (7.9) Balance at end of year $ 121.8 $ 242.4 $ 228.5 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Basic and diluted net income per share are calculated using the treasury stock method. 2023 2022 2021 Basic Net income $ 2,388.8 $ 2,020.1 $ 1,864.4 Weighted average shares outstanding 255.4 258.0 262.5 Basic net income per share $ 9.35 $ 7.83 $ 7.10 Diluted Net income $ 2,388.8 $ 2,020.1 $ 1,864.4 Weighted average shares outstanding assuming dilution: Weighted average shares outstanding 255.4 258.0 262.5 Stock options and other contingently issuable shares (1) 2.9 3.8 4.6 Weighted average shares outstanding assuming dilution 258.3 261.8 267.1 Diluted net income per share $ 9.25 $ 7.72 $ 6.98 (1) Stock options and other contingently issuable shares excludes 2.8 million, 1.9 million and 0.9 million shares at December 31, 2023, 2022 and 2021, respectively, due to their anti-dilutive effect. |
Reportable Segment Information
Reportable Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Reportable Segment Financial Information | In the reportable segment financial information that follows, Segment profit represents each segment’s Income before income taxes. Due to the nature of the Company’s integrated manufacturing operations and centralized administrative and information technology support, a substantial amount of allocations are made to determine segment financial information. Domestic intersegment transfers are primarily accounted for at the approximate fully absorbed manufactured cost, based on normal capacity volumes, plus customary distribution costs for paint products. Non-paint domestic and all international intersegment transfers are primarily accounted for at values comparable to normal unaffiliated customer sales. All intersegment transfers are eliminated within the Administrative segment. In 2023, the absorbed manufactured cost standards utilized for domestic intersegment transfers were established inclusive of forecasted cost reductions from planned initiatives. Deviations from the forecasted cost reductions were recognized within the Consumer Brands Group. Identifiable assets were those directly identified with each Reportable Segment. The Administrative segment assets consisted primarily of cash and cash equivalents, investments, deferred pension assets and property, plant and equipment related to the new global headquarters currently under construction. The segment results in the tables below reflect the segment change described above. 2023 Paint Stores Consumer Brands Performance Coatings Administrative Consolidated Net sales $ 12,839.5 $ 3,365.6 $ 6,843.1 $ 3.7 $ 23,051.9 Intersegment transfers 5,234.0 197.8 (5,431.8) — Total net sales and intersegment transfers $ 12,839.5 $ 8,599.6 $ 7,040.9 $ (5,428.1) $ 23,051.9 Segment profit $ 2,860.8 $ 309.3 $ 991.6 $ 4,161.7 Interest expense $ (417.5) (417.5) Administrative expenses and other (634.3) (634.3) Income before income taxes $ 2,860.8 $ 309.3 $ 991.6 $ (1,051.8) $ 3,109.9 % to net sales 22.3 % 9.2 % 14.5 % 13.5 % Identifiable assets $ 5,745.3 $ 6,631.8 $ 8,266.6 $ 2,310.7 $ 22,954.4 Capital expenditures 111.4 309.6 32.6 434.8 888.4 Depreciation 79.0 151.4 26.0 35.9 292.3 Amortization 3.3 72.4 253.0 1.5 330.2 2022 Paint Stores Consumer Brands Performance Coatings Administrative Consolidated Net sales $ 11,963.3 $ 3,388.4 $ 6,793.5 $ 3.7 $ 22,148.9 Intersegment transfers 5,214.8 203.7 (5,418.5) — Total net sales and intersegment transfers $ 11,963.3 $ 8,603.2 $ 6,997.2 $ (5,414.8) $ 22,148.9 Segment profit $ 2,348.1 $ 314.2 $ 734.9 $ 3,397.2 Interest expense $ (390.8) (390.8) Administrative expenses and other (433.3) (433.3) Income before income taxes $ 2,348.1 $ 314.2 $ 734.9 $ (824.1) $ 2,573.1 % to net sales 19.6 % 9.3 % 10.8 % 11.6 % Identifiable assets $ 5,873.6 $ 6,749.6 $ 8,296.8 $ 1,674.0 $ 22,594.0 Capital expenditures 87.3 295.0 38.7 223.5 644.5 Depreciation 73.9 126.2 29.1 34.8 264.0 Amortization 3.3 79.8 232.0 2.0 317.1 2021 Paint Stores Consumer Brands Performance Coatings Administrative Consolidated Net sales $ 10,616.2 $ 3,322.4 $ 6,003.8 $ 2.2 $ 19,944.6 Intersegment transfers 4,183.6 149.7 (4,333.3) — Total net sales and intersegment transfers $ 10,616.2 $ 7,506.0 $ 6,153.5 $ (4,331.1) $ 19,944.6 Segment profit $ 2,182.2 $ 415.3 $ 486.2 $ 3,083.7 Interest expense $ (334.7) (334.7) Administrative expenses and other (500.4) (500.4) Income before income taxes $ 2,182.2 $ 415.3 $ 486.2 $ (835.1) $ 2,248.6 % to net sales 20.6 % 12.5 % 8.1 % 11.3 % Identifiable assets $ 5,501.3 $ 5,287.7 $ 8,388.6 $ 1,489.1 $ 20,666.7 Capital expenditures 77.6 125.5 90.8 78.1 372.0 Depreciation 71.3 88.8 66.2 36.8 263.1 Amortization 3.5 83.9 218.9 3.2 309.5 |
Significant Accounting Polici_4
Significant Accounting Policies - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2023 USD ($) option_plan | Dec. 31, 2022 USD ($) option_plan | Dec. 31, 2021 USD ($) option_plan | |
Significant Accounting Policies [Line Items] | |||
Number of foreign currency option outstanding | option_plan | 0 | 0 | 0 |
Number of foreign forward contracts outstanding | option_plan | 0 | 0 | 0 |
Other accruals | $ 1,329,500,000 | $ 1,138,300,000 | $ 1,005,800,000 |
Other long-term liabilities | 1,908,000,000 | 1,606,400,000 | 1,420,800,000 |
Amounts outstanding under standby letter of credit agreements | 146,200,000 | 149,800,000 | 89,200,000 |
Government assistance | $ 0 | $ 86,600,000 | 0 |
Government assistance, statement of income or comprehensive income, extensible enumeration not disclosed flag | Accounts payable | Accounts payable | |
Supplier finance program, obligation, statement of financial position [Extensible Enumeration] | Accounts Payable, Current | Accounts Payable, Current | |
Supply chain finance liability | $ 213,100,000 | $ 258,100,000 | 221,700,000 |
Not Primary Beneficiary | |||
Significant Accounting Policies [Line Items] | |||
Other assets | 675,000,000 | 587,000,000 | 355,800,000 |
Other accruals | 80,900,000 | 89,800,000 | 61,800,000 |
Other long-term liabilities | $ 568,200,000 | 476,500,000 | 289,700,000 |
Minimum | |||
Significant Accounting Policies [Line Items] | |||
Useful life of intangible assets | 7 years | ||
Minimum | Buildings | |||
Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 5 years | ||
Minimum | Machinery and equipment | |||
Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 3 years | ||
Maximum | |||
Significant Accounting Policies [Line Items] | |||
Useful life of intangible assets | 20 years | ||
Maximum | Buildings | |||
Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 25 years | ||
Maximum | Machinery and equipment | |||
Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 15 years | ||
Cost of Goods Sold | |||
Significant Accounting Policies [Line Items] | |||
Research and development costs included in technical expenditures | $ 196,600,000 | 119,300,000 | 115,900,000 |
SG&A | |||
Significant Accounting Policies [Line Items] | |||
Advertising cost | $ 394,000,000 | $ 314,400,000 | $ 311,900,000 |
Significant Accounting Polici_5
Significant Accounting Policies - Changes in Product Warranty Accruals (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Company's accrual for product warranty claims | |||
Beginning balance | $ 36.2 | $ 35.2 | $ 43.3 |
Charges to expense | 37 | 30.1 | 27.5 |
Settlements | (32.8) | (29.1) | (35.6) |
Ending balance | $ 40.4 | $ 36.2 | $ 35.2 |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Apr. 30, 2023 USD ($) employee | Mar. 31, 2021 USD ($) | Dec. 31, 2023 USD ($) | Jun. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Business Acquisition [Line Items] | |||||||
Goodwill recognized | $ 8,300 | $ 493,500 | $ 155,600 | ||||
Gain (loss) on disposition of business | 20,100 | 0 | (111,900) | ||||
Impairment charge | 57,900 | 15,500 | 0 | ||||
Consumer Brands Group | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill recognized | 21,300 | ||||||
Consumer Brands Group | Operating Segments | |||||||
Business Acquisition [Line Items] | |||||||
Impairment charge | $ 6,900 | ||||||
Non-core Domestic Aerosol Business | Administrative | |||||||
Business Acquisition [Line Items] | |||||||
Gain (loss) on disposition of business | 20,100 | ||||||
China Architectural Business | |||||||
Business Acquisition [Line Items] | |||||||
Revenue from divestiture | $ 100,000 | ||||||
Number of employees | employee | 300 | ||||||
China Architectural Business | Administrative | |||||||
Business Acquisition [Line Items] | |||||||
Impairment charge | $ 27,100 | ||||||
Wattyl | |||||||
Business Acquisition [Line Items] | |||||||
Gain (loss) on disposition of business | (111,900) | ||||||
Revenue from divestiture | $ 200,000 | ||||||
2023 Acquisitions | |||||||
Business Acquisition [Line Items] | |||||||
Purchase price | 265,000 | ||||||
Finite-lived assets acquired | $ 110,800 | ||||||
Goodwill recognized | 154,200 | ||||||
Other assets, net of cash | 46,100 | 46,100 | |||||
Liabilities recognized | $ 46,700 | 46,700 | |||||
Industria Chimica Adriatica S.p.A. | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill adjustment | 145,900 | ||||||
Increase in deferred tax liabilities | 57,400 | ||||||
Increase in finite lived assets | 195,900 | ||||||
Prior Acquisitions | |||||||
Business Acquisition [Line Items] | |||||||
Payments to acquire businesses | $ 29,200 | ||||||
2022 Acquisitions | |||||||
Business Acquisition [Line Items] | |||||||
Purchase price | 1,024,000 | ||||||
Finite-lived assets acquired | 282,800 | ||||||
Goodwill recognized | 565,800 | ||||||
2021 Acquisitions | |||||||
Business Acquisition [Line Items] | |||||||
Purchase price | 227,000 | ||||||
Finite-lived assets acquired | 11,300 | ||||||
Goodwill recognized | 155,600 | ||||||
Goodwill adjustment | 72,300 | ||||||
Specialty Polymers Inc | |||||||
Business Acquisition [Line Items] | |||||||
Intangible assets acquired | $ 61,300 | ||||||
Property, plant, and equipment acquired | $ 11,000 |
Restructuring (Details)
Restructuring (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Oct. 01, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve, beginning balance | $ 41.7 | $ 0 | ||
Provisions for restructuring | 15.3 | 47.8 | ||
Payments, currency, and other adjustments | (57) | (6.1) | ||
Restructuring reserve, ending balance | 0 | 41.7 | $ 0 | |
Total expense incurred | 63.1 | |||
Trademarks | ||||
Restructuring Reserve [Roll Forward] | ||||
Impairment of asset | 163.8 | 139.9 | 124.4 | |
Severance and related costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Provisions for restructuring | 4.7 | 34 | ||
Other qualified costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Provisions for restructuring | 10.6 | 13.8 | ||
Administrative | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve, beginning balance | 0 | 0 | ||
Provisions for restructuring | 1.3 | 0 | ||
Payments, currency, and other adjustments | (1.3) | 0 | ||
Restructuring reserve, ending balance | 0 | 0 | 0 | |
Total expense incurred | 1.3 | |||
Administrative | Severance and related costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Provisions for restructuring | 1.3 | 0 | ||
Administrative | Other qualified costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Provisions for restructuring | 0 | 0 | ||
Consumer Brands Group | Trademarks | ||||
Restructuring Reserve [Roll Forward] | ||||
Impairment of asset | $ 23.9 | 15.5 | ||
Consumer Brands Group | Operating Segments | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve, beginning balance | 25.6 | 0 | ||
Provisions for restructuring | 14.2 | 25.6 | ||
Payments, currency, and other adjustments | (39.8) | 0 | ||
Restructuring reserve, ending balance | 0 | 25.6 | 0 | |
Total expense incurred | 39.8 | |||
Consumer Brands Group | Operating Segments | Severance and related costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Provisions for restructuring | 3.6 | 14.5 | ||
Consumer Brands Group | Operating Segments | Other qualified costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Provisions for restructuring | 10.6 | 11.1 | ||
Performance Coatings Group | Operating Segments | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring reserve, beginning balance | 16.1 | 0 | ||
Provisions for restructuring | (0.2) | 22.2 | ||
Payments, currency, and other adjustments | (15.9) | (6.1) | ||
Restructuring reserve, ending balance | 0 | 16.1 | $ 0 | |
Total expense incurred | 22 | |||
Performance Coatings Group | Operating Segments | Severance and related costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Provisions for restructuring | (0.2) | 19.5 | ||
Performance Coatings Group | Operating Segments | Other qualified costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Provisions for restructuring | $ 0 | $ 2.7 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | |||
Finished goods | $ 1,810.9 | $ 1,957.7 | $ 1,378.8 |
Work in process and raw materials | 518.9 | 668.8 | 548.4 |
Inventories | $ 2,329.8 | $ 2,626.5 | $ 1,927.2 |
Inventories - FIFO (Details)
Inventories - FIFO (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2021 | Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |||
Percentage of total inventories on LIFO | 74% | 70% | 74% |
Excess of FIFO over LIFO | $ 668 | $ 593 | $ 792.7 |
Inventory liquidation on income | 1.2 | 25.8 | |
Reserve for obsolescence | $ 170.8 | $ 118.6 | $ 139 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets [Line Items] | |||
Property, plant and equipment, gross | $ 5,877 | $ 5,188.6 | $ 4,664.5 |
Less allowances for depreciation | 3,040.2 | 2,981.6 | 2,797.2 |
Property, plant and equipment, net | 2,836.8 | 2,207 | 1,867.3 |
Land | |||
Finite-Lived Intangible Assets [Line Items] | |||
Property, plant and equipment, gross | 257.5 | 263 | 257.7 |
Buildings | |||
Finite-Lived Intangible Assets [Line Items] | |||
Property, plant and equipment, gross | 1,048.7 | 1,199.3 | 1,157.8 |
Machinery and equipment | |||
Finite-Lived Intangible Assets [Line Items] | |||
Property, plant and equipment, gross | 3,459.8 | 3,230.2 | 3,043.6 |
Construction in progress | |||
Finite-Lived Intangible Assets [Line Items] | |||
Property, plant and equipment, gross | $ 1,111 | $ 496.1 | $ 205.4 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Narrative (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Oct. 01, 2023 USD ($) | Oct. 31, 2023 | Dec. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) company | Dec. 31, 2021 USD ($) company | |
Acquired Indefinite-lived Intangible Assets [Line Items] | ||||||
Goodwill recognized | $ 8,300 | $ 493,500 | $ 155,600 | |||
Acquired finite-lived intangible assets, weighted average amortization period | 14 years | |||||
Number of companies acquired | company | 5 | 2 | ||||
Amortization of finite-lived intangible assets for the next five years: | ||||||
Amortization of finite-lived intangible assets, 2024 | $ 329,400 | 329,400 | ||||
Amortization of finite-lived intangible assets, 2025 | 321,700 | 321,700 | ||||
Amortization of finite-lived intangible assets, 2026 | 318,000 | 318,000 | ||||
Amortization of finite-lived intangible assets, 2027 | 314,000 | 314,000 | ||||
Amortization of finite-lived intangible assets, 2028 | 307,700 | $ 307,700 | ||||
Impairment, Intangible Asset, Indefinite-Lived (Excluding Goodwill), Statement of Income or Comprehensive Income [Extensible Enumeration] | Impairment charge | |||||
2023 Acquisitions | ||||||
Acquired Indefinite-lived Intangible Assets [Line Items] | ||||||
Goodwill recognized | 154,200 | |||||
Finite-lived assets acquired | $ 110,800 | |||||
Acquired finite-lived intangible assets, weighted average amortization period | 15 years | |||||
2022 Acquisitions | ||||||
Acquired Indefinite-lived Intangible Assets [Line Items] | ||||||
Goodwill recognized | $ 565,800 | |||||
Finite-lived assets acquired | 282,800 | |||||
2021 Acquisitions | ||||||
Acquired Indefinite-lived Intangible Assets [Line Items] | ||||||
Goodwill recognized | $ 155,600 | |||||
Finite-lived assets acquired | 11,300 | |||||
Goodwill adjustment | 72,300 | |||||
Specialty Polymers Inc | ||||||
Acquired Indefinite-lived Intangible Assets [Line Items] | ||||||
Intangible assets acquired | 61,300 | |||||
Industria Chimica Adriatica S.p.A. | ||||||
Acquired Indefinite-lived Intangible Assets [Line Items] | ||||||
Goodwill adjustment | $ 145,900 | |||||
Consumer Brands Group | ||||||
Acquired Indefinite-lived Intangible Assets [Line Items] | ||||||
Goodwill recognized | 21,300 | |||||
Trademarks | ||||||
Acquired Indefinite-lived Intangible Assets [Line Items] | ||||||
Impairment of asset | $ 163,800 | 139,900 | $ 124,400 | |||
Trademarks | Consumer Brands Group | ||||||
Acquired Indefinite-lived Intangible Assets [Line Items] | ||||||
Impairment of asset | $ 23,900 | $ 15,500 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Summary of Changes in the Carrying Value of Goodwill by Reportable Segment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Carrying value of goodwill by reportable operating segment | |||
Opening balance | $ 7,583.2 | $ 7,134.6 | $ 7,049.1 |
Reclassification related to segment change | 0 | ||
Acquisitions and acquisition adjustments | 8.3 | 493.5 | 155.6 |
Currency and other adjustments | 34.5 | (44.9) | (70.1) |
Closing balance | 7,626 | 7,583.2 | 7,134.6 |
Accumulated impairment losses | 19.4 | ||
Paint Stores Group | |||
Carrying value of goodwill by reportable operating segment | |||
Opening balance | 2,231.8 | 2,182.1 | 2,256.6 |
Reclassification related to segment change | (74.5) | ||
Acquisitions and acquisition adjustments | 49.7 | ||
Closing balance | 2,231.8 | 2,231.8 | 2,182.1 |
Accumulated impairment losses | 10.2 | ||
Consumer Brands Group | |||
Carrying value of goodwill by reportable operating segment | |||
Opening balance | 1,801.9 | 1,783.4 | 1,754.6 |
Reclassification related to segment change | 74.5 | ||
Acquisitions and acquisition adjustments | 21.3 | ||
Currency and other adjustments | (9.1) | (2.8) | (45.7) |
Closing balance | 1,792.8 | 1,801.9 | 1,783.4 |
Accumulated impairment losses | 8.4 | ||
Performance Coatings Group | |||
Carrying value of goodwill by reportable operating segment | |||
Opening balance | 3,549.5 | 3,169.1 | 3,037.9 |
Acquisitions and acquisition adjustments | 8.3 | 422.5 | 155.6 |
Currency and other adjustments | 43.6 | (42.1) | (24.4) |
Closing balance | 3,601.4 | $ 3,549.5 | $ 3,169.1 |
Accumulated impairment losses | $ 0.8 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Summary of the Carrying Value of Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Carrying value of intangible assets | |||
Gross | $ 5,622.7 | $ 5,461.4 | $ 5,205.5 |
Accumulated amortization | (2,260.7) | (2,015.6) | (1,787.1) |
Net value | 3,362 | 3,445.8 | 3,418.4 |
Trademarks with indefinite lives | 518.5 | 556.2 | 583.1 |
Total Intangible Assets | 3,880.5 | 4,002 | 4,001.5 |
Trademarks | |||
Carrying value of intangible assets | |||
Impairment of asset | 163.8 | 139.9 | 124.4 |
Software | |||
Carrying value of intangible assets | |||
Gross | 158.2 | 180.2 | 166 |
Accumulated amortization | (152.8) | (148.1) | (149.3) |
Net value | 5.4 | 32.1 | 16.7 |
Customer Relationships | |||
Carrying value of intangible assets | |||
Gross | 3,263.4 | 3,121.2 | 3,005.7 |
Accumulated amortization | (1,310.6) | (1,132.1) | (961.6) |
Net value | 1,952.8 | 1,989.1 | 2,044.1 |
Intellectual Property | |||
Carrying value of intangible assets | |||
Gross | 1,968.5 | 1,732.5 | 1,730.3 |
Accumulated amortization | (644.4) | (477.4) | (396.5) |
Net value | 1,324.1 | 1,255.1 | 1,333.8 |
All Other | |||
Carrying value of intangible assets | |||
Gross | 232.6 | 427.5 | 303.5 |
Accumulated amortization | (152.9) | (258) | (279.7) |
Net value | $ 79.7 | $ 169.5 | $ 23.8 |
Debt - Long-term Debt (Details)
Debt - Long-term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Long-term debt | |||
Total long-term debt | $ 9,476.7 | $ 9,591.6 | $ 8,851.5 |
Less amounts due within one year | 1,098.8 | 0.6 | 260.6 |
Long-term debt | 8,377.9 | 9,591 | 8,590.9 |
Capitalized debt issuance costs | 49.3 | 57.3 | 57.6 |
Debt discount | 25.2 | 25.7 | 26 |
3.45% Senior Notes | Senior Notes | |||
Long-term debt | |||
Total long-term debt | $ 1,493.9 | 1,492.1 | 1,490.4 |
Interest rate | 3.45% | ||
4.50% Senior Notes | Senior Notes | |||
Long-term debt | |||
Total long-term debt | $ 1,233 | 1,232.3 | 1,231.6 |
Interest rate | 4.50% | ||
2.95% Senior Notes | Senior Notes | |||
Long-term debt | |||
Total long-term debt | $ 794.6 | 793.6 | 792.6 |
Interest rate | 2.95% | ||
4.05% Senior Notes | Senior Notes | |||
Long-term debt | |||
Total long-term debt | $ 598.8 | 596.9 | 0 |
Interest rate | 4.05% | ||
3.80% Senior Notes | Senior Notes | |||
Long-term debt | |||
Total long-term debt | $ 543.6 | 543.2 | 543 |
Interest rate | 3.80% | ||
3.125% Senior Notes | Senior Notes | |||
Long-term debt | |||
Total long-term debt | $ 499.7 | 499 | 498.3 |
Interest rate | 3.125% | ||
2.30% Senior Notes | Senior Notes | |||
Long-term debt | |||
Total long-term debt | $ 497.1 | 496.7 | 496.2 |
Interest rate | 2.30% | ||
2.20% Senior Notes | Senior Notes | |||
Long-term debt | |||
Total long-term debt | $ 494.8 | 494.2 | 493.6 |
Interest rate | 2.20% | ||
3.30% Senior Notes | Senior Notes | |||
Long-term debt | |||
Total long-term debt | $ 494.3 | 494.1 | 493.9 |
Interest rate | 3.30% | ||
2.90% Senior Notes | Senior Notes | |||
Long-term debt | |||
Total long-term debt | $ 491.9 | 491.5 | 491.3 |
Interest rate | 2.90% | ||
3.45% Senior Notes | Senior Notes | |||
Long-term debt | |||
Total long-term debt | $ 399.4 | 399.1 | 398.7 |
Interest rate | 3.45% | ||
4.25% Senior Notes | Senior Notes | |||
Long-term debt | |||
Total long-term debt | $ 398.6 | 397.7 | 0 |
Interest rate | 4.25% | ||
4.55% Senior Notes | Senior Notes | |||
Long-term debt | |||
Total long-term debt | $ 395.2 | 395 | 394.7 |
Interest rate | 4.55% | ||
3.95% Senior Notes | Senior Notes | |||
Long-term debt | |||
Total long-term debt | $ 353.1 | 354.7 | 356.2 |
Interest rate | 3.95% | ||
4.00% Senior Notes | Senior Notes | |||
Long-term debt | |||
Total long-term debt | $ 297 | 296.9 | 296.7 |
Interest rate | 4% | ||
3.30% Senior Notes | Senior Notes | |||
Long-term debt | |||
Total long-term debt | $ 249.9 | 249.8 | 249.6 |
Interest rate | 3.30% | ||
4.40% Senior Notes | Senior Notes | |||
Long-term debt | |||
Total long-term debt | $ 240.9 | 240.5 | 240 |
Interest rate | 4.40% | ||
7.375% Debentures | Debentures | |||
Long-term debt | |||
Total long-term debt | $ 0 | 119.2 | 119.2 |
Interest rate | 7.375% | ||
7.45% Debentures | Debentures | |||
Long-term debt | |||
Total long-term debt | $ 0 | 3.5 | 3.5 |
Interest rate | 7.45% | ||
0.53% to 8.00% Promissory Notes | Debentures | |||
Long-term debt | |||
Total long-term debt | $ 0.9 | 1.6 | 2 |
0.53% to 8.00% Promissory Notes | Debentures | Minimum | |||
Long-term debt | |||
Interest rate | 0.53% | ||
0.53% to 8.00% Promissory Notes | Debentures | Maximum | |||
Long-term debt | |||
Interest rate | 8% | ||
2.75% Senior Notes | Senior Notes | |||
Long-term debt | |||
Total long-term debt | $ 0 | $ 0 | $ 260 |
Interest rate | 2.75% |
Debt - Long-term Borrowings (De
Debt - Long-term Borrowings (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||
Oct. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Aug. 31, 2022 | Nov. 30, 2021 | |
Debt Instrument [Line Items] | ||||||
Long-term debt maturing in 2024 | $ 1,100,000,000 | |||||
Long-term debt maturing in 2025 | 1,051,000,000 | |||||
Long-term debt maturing in 2026 | 350,100,000 | |||||
Long-term debt maturing in 2027 | 1,500,000,000 | |||||
Long-term debt maturing in 2028 | 0 | |||||
Interest expense on long-term debt | 374,600,000 | $ 348,400,000 | $ 320,400,000 | |||
Loss (gain) on extinguishment of debt | (12,800,000) | $ 0 | $ 1,400,000 | |||
Senior Notes | 4.050% Senior Notes Due August 2024 | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 4.05% | |||||
Long-term debt issued | $ 600,000,000 | |||||
Senior Notes | 4.250% Senior Notes Due August 2025 | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 4.25% | |||||
Long-term debt issued | $ 400,000,000 | |||||
Senior Notes | 2.20% Senior Notes Due March 2032 | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 2.20% | |||||
Long-term debt issued | $ 500,000,000 | |||||
Senior Notes | 2.90% Senior Notes Due March 2052 | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 2.90% | |||||
Long-term debt issued | $ 500,000,000 | |||||
Senior Notes | 4.20% Senior Notes Percent Due 2022 | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, repurchased face amount | $ 400,000,000 | |||||
Interest rate | 4.20% | |||||
Loss (gain) on extinguishment of debt | $ 1,400,000 | |||||
Debt instrument, redemption price, percentage | 100% | |||||
Debentures | ||||||
Debt Instrument [Line Items] | ||||||
Loss (gain) on extinguishment of debt | (12,800,000) | |||||
Debentures | 7.375% Debentures | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, repurchased face amount | $ 119,400,000 | |||||
Interest rate | 7.375% | |||||
Debentures | 7.45% Debentures | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, repurchased face amount | $ 3,500,000 | |||||
Interest rate | 7.45% |
Debt - Short-term Borrowings (D
Debt - Short-term Borrowings (Details) | 12 Months Ended | ||||||
Aug. 30, 2022 USD ($) extension_option | Aug. 02, 2021 USD ($) | May 09, 2016 | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Jun. 29, 2021 USD ($) | |
Short Term Debt [Line Items] | |||||||
Short-term borrowings outstanding | $ 374,200,000 | $ 978,100,000 | $ 763,500,000 | ||||
Unused borrowing capacity, amount | 3,332,000,000 | ||||||
Interest expense, short-term borrowings | 42,900,000 | 42,400,000 | 14,300,000 | ||||
Commercial Paper | |||||||
Short Term Debt [Line Items] | |||||||
Short-term borrowings outstanding | 374,200,000 | 978,100,000 | 763,500,000 | ||||
New Credit Agreement | Line of Credit | |||||||
Short Term Debt [Line Items] | |||||||
Debt instrument term | 5 years | ||||||
Maximum borrowing capacity | $ 2,250,000,000 | $ 2,000,000,000 | |||||
Number of extension options | extension_option | 2 | ||||||
Extension term | 1 year | ||||||
Additional borrowing capacity | $ 750,000,000 | ||||||
New Credit Agreement | Letter of Credit | |||||||
Short Term Debt [Line Items] | |||||||
Maximum borrowing capacity | $ 250,000,000 | ||||||
August2021 Credit Agreement | Line of Credit | |||||||
Short Term Debt [Line Items] | |||||||
Debt instrument term | 5 years | ||||||
Maximum borrowing capacity | $ 625,000,000 | ||||||
Five Year Credit Agreement, May 2016 | Line of Credit | |||||||
Short Term Debt [Line Items] | |||||||
Debt instrument term | 5 years | ||||||
Short-term borrowings outstanding | 0 | 0 | 0 | ||||
Five Year Credit Agreement, May 2016 | Letter of Credit | |||||||
Short Term Debt [Line Items] | |||||||
Maximum borrowing capacity | 875,000,000 | ||||||
Domestic commercial paper | Commercial Paper | |||||||
Short Term Debt [Line Items] | |||||||
Short-term borrowings outstanding | $ 347,700,000 | $ 938,500,000 | $ 739,900,000 | ||||
Weighted average interest rate | 5.50% | 4.60% | 0.30% | ||||
Foreign | Commercial Paper | |||||||
Short Term Debt [Line Items] | |||||||
Short-term borrowings outstanding | $ 26,500,000 | $ 39,600,000 | $ 23,600,000 | ||||
Weighted average interest rate | 3.60% | 6.70% | 9.50% |
Pension, Health Care and Othe_3
Pension, Health Care and Other Postretirement Benefits - Narrative (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 USD ($) pension_plan employee | Dec. 31, 2022 USD ($) employee | Dec. 31, 2021 USD ($) employee | Dec. 31, 2020 USD ($) | |
Minimum | Equity Securities | ||||
Expected defined benefit payments | ||||
Target allocation percentage of plan assets in equity securities | 30% | |||
Minimum | Fixed Income Securities | ||||
Expected defined benefit payments | ||||
Target allocation percentage of plan assets in equity securities | 35% | |||
Minimum | Other Securities | ||||
Expected defined benefit payments | ||||
Target allocation percentage of plan assets in equity securities | 0% | |||
Maximum | Equity Securities | ||||
Expected defined benefit payments | ||||
Target allocation percentage of plan assets in equity securities | 65% | |||
Maximum | Fixed Income Securities | ||||
Expected defined benefit payments | ||||
Target allocation percentage of plan assets in equity securities | 70% | |||
Maximum | Other Securities | ||||
Expected defined benefit payments | ||||
Target allocation percentage of plan assets in equity securities | 5% | |||
Postretirement Health Coverage | ||||
Health care plans | ||||
Number of active employees entitled to receive benefits under health care plans | employee | 31,327 | 30,009 | 29,016 | |
Cost of benefits includes claims incurred and claims incurred but not reported under health care plans | $ 363.2 | $ 347.4 | $ 336 | |
Defined Benefit Pension | ||||
Health care plans | ||||
Fair value of plan assets | 356.5 | 232.1 | 341.9 | |
Expected defined benefit payments | ||||
Expected cash payments, 2024 | 17.7 | |||
Expected cash payments, 2025 | 17.5 | |||
Expected cash payments, 2026 | 18.7 | |||
Expected cash payments, 2027 | 20 | |||
Expected cash payments, 2028 | 21.2 | |||
Expected cash payments, 2029-2033 | 133.1 | |||
Amortization of actuarial gains | (1.4) | |||
Amortization of prior service cost (credit) | 1.8 | |||
Defined Benefit Pension | Domestic Defined Benefit Pension Plan | ||||
Health care plans | ||||
Contributions by company | 97.8 | 88.9 | 85.3 | |
Projected benefit obligation | 102.1 | 91.7 | 120.8 | $ 118.6 |
Fair value of plan assets | 135.1 | 119.4 | 155.2 | 144.3 |
Excess (deficient) plan assets over projected benefit obligations | 33 | 27.7 | 34.4 | |
Accumulated benefit obligation | $ 100.5 | 90.3 | 117 | |
Defined Benefit Pension | Domestic Defined Benefit Pension Plan | Minimum | ||||
Health care plans | ||||
Contributions by company (percentage) | 2% | |||
Defined Benefit Pension | Domestic Defined Benefit Pension Plan | Maximum | ||||
Health care plans | ||||
Contributions by company (percentage) | 7% | |||
Defined Benefit Pension | Foreign Defined Benefit Pension Plans | ||||
Health care plans | ||||
Contributions by company | $ 19.5 | 19.4 | 17.9 | |
Projected benefit obligation | 257.8 | 230.4 | 362.7 | 401.1 |
Fair value of plan assets | 246.7 | 223.6 | 328.4 | 318.2 |
Excess (deficient) plan assets over projected benefit obligations | $ (11.1) | (6.8) | (34.3) | |
Number of defined benefit plans | pension_plan | 33 | |||
Accumulated benefit obligation | $ 236.4 | 209.3 | 334.8 | |
Expected defined benefit payments | ||||
Estimated future employer contributions | 6.1 | |||
Defined Benefit Pension | Overfunded Plan | Domestic Defined Benefit Pension Plan | ||||
Health care plans | ||||
Projected benefit obligation | 102.1 | |||
Fair value of plan assets | 135.1 | |||
Excess (deficient) plan assets over projected benefit obligations | 33 | |||
Defined Benefit Pension | Unfunded Plan | Foreign Defined Benefit Pension Plans | ||||
Health care plans | ||||
Projected benefit obligation | 89.4 | |||
Fair value of plan assets | 20.4 | |||
Excess (deficient) plan assets over projected benefit obligations | $ (69) | |||
Number of foreign defined benefit pension plans unfunded or underfunded | pension_plan | 26 | |||
Accumulated benefit obligation | $ 76 | |||
Postretirement Benefits Other than Pensions | ||||
Health care plans | ||||
Projected benefit obligation | 147.2 | $ 153.8 | $ 276.4 | $ 291.6 |
Expected defined benefit payments | ||||
Expected cash payments, 2024 | 14 | |||
Expected cash payments, 2025 | 14.9 | |||
Expected cash payments, 2026 | 14.8 | |||
Expected cash payments, 2027 | 14.4 | |||
Expected cash payments, 2028 | 13.7 | |||
Expected cash payments, 2029-2033 | 53.4 | |||
Amortization of actuarial gains | (0.3) | |||
Amortization of prior service cost (credit) | $ (23.9) | |||
Number of retired employees entitled to receive postretirement benefits | employee | 3,367 | 3,409 | 3,410 | |
Defined benefit plan ultimate health care cost trend rate and prescription drug cost increase rate (percentage) | 4.50% |
Pension, Health Care and Othe_4
Pension, Health Care and Other Postretirement Benefits - Summary of the Components of the Net Pension Costs and Cumulative Other Comprehensive Loss Related to the Defined Benefit Pension Plans (Details) - Defined Benefit Pension - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Domestic Defined Benefit Pension Plan | |||
Net pension cost: | |||
Service cost | $ 3 | $ 4.6 | $ 4.9 |
Interest cost | 4.6 | 3.2 | 2.7 |
Expected return on plan assets | (7.3) | (7.6) | (7.1) |
Amortization of prior service cost (credit) | 1.3 | 1 | 1.1 |
Ongoing pension cost | 1.6 | 1.2 | 1.6 |
Net pension cost | 1.6 | 1.2 | 1.6 |
Other changes in plan assets and projected benefit obligation recognized in AOCI (before taxes): | |||
Net actuarial (gains) losses arising during the year | (8.6) | 5 | (10.5) |
Prior service cost (credit) arising during the year | 3 | 1.6 | 1.4 |
Amortization of actuarial gains (losses) | |||
Amortization of prior service (cost) credit | (1.3) | (1) | (1.1) |
Total recognized in AOCI | (6.9) | 5.6 | (10.2) |
Total recognized in net pension cost and AOCI | (5.3) | 6.8 | (8.6) |
Foreign Defined Benefit Pension Plans | |||
Net pension cost: | |||
Service cost | 4.4 | 6.3 | 7.4 |
Interest cost | 11.8 | 7.3 | 5.7 |
Expected return on plan assets | (12.3) | (9.4) | (9.6) |
Amortization of prior service cost (credit) | (0.2) | (0.2) | (0.1) |
Amortization of actuarial (gains) losses | (1.5) | 0.2 | 1.5 |
Ongoing pension cost | 2.2 | 4.2 | 4.9 |
Settlement (credits) costs | (1.1) | (0.3) | 0.3 |
Net pension cost | 1.1 | 3.9 | 5.2 |
Other changes in plan assets and projected benefit obligation recognized in AOCI (before taxes): | |||
Net actuarial (gains) losses arising during the year | 5.8 | (29.6) | (44.9) |
Prior service cost (credit) arising during the year | 1.1 | (0.3) | (1) |
Amortization of actuarial gains (losses) | 1.5 | (0.2) | (1.5) |
Amortization of prior service (cost) credit | 0.2 | 0.2 | 0.1 |
Loss (gain) recognized for settlement | 1.1 | 0.3 | (0.3) |
Exchange rate (loss) recognized during the year | (1.5) | (0.4) | (0.6) |
Total recognized in AOCI | 8.2 | (30) | (48.2) |
Total recognized in net pension cost and AOCI | $ 9.3 | $ (26.1) | $ (43) |
Pension, Health Care and Othe_5
Pension, Health Care and Other Postretirement Benefits - Summary of the Fair Value of the Defined Benefit Pension Plan Assets (Details) - Defined Benefit Pension - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments in fair value hierarchy | $ 356.5 | $ 232.1 | $ 341.9 |
Total investments | 381.8 | 343 | 483.6 |
NAV | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Investments measured at NAV or its equivalent | 25.3 | 110.9 | 141.7 |
Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments in fair value hierarchy | 109.7 | 8.5 | 13.5 |
Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments in fair value hierarchy | 246.8 | 223.6 | 328.4 |
Equity investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments in fair value hierarchy | 133 | 80.1 | 133.1 |
Equity investments | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments in fair value hierarchy | 72.9 | 8.5 | 13.5 |
Equity investments | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments in fair value hierarchy | 60.1 | 71.6 | 119.6 |
Fixed income investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments in fair value hierarchy | 188.9 | 117.6 | 172.1 |
Fixed income investments | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments in fair value hierarchy | 36.8 | ||
Fixed income investments | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments in fair value hierarchy | 152.1 | 117.6 | 172.1 |
Other assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments in fair value hierarchy | 34.6 | 34.4 | 36.7 |
Other assets | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total investments in fair value hierarchy | $ 34.6 | $ 34.4 | $ 36.7 |
Pension, Health Care and Othe_6
Pension, Health Care and Other Postretirement Benefits - Summary of the Obligations, Plan Assets and Assumptions Used for Defined Benefit Pension Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Assets and liabilities recognized in the Consolidated Balance Sheets: | |||
Other accruals | $ (1,329.5) | $ (1,138.3) | $ (1,005.8) |
Other long-term liabilities | (1,908) | (1,606.4) | (1,420.8) |
Defined Benefit Pension | |||
Plan assets: | |||
Balances at beginning of year | 232.1 | 341.9 | |
Balances at end of year | 356.5 | 232.1 | 341.9 |
Defined Benefit Pension | Domestic Defined Benefit Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated benefit obligations at end of year | 100.5 | 90.3 | 117 |
Projected benefit obligations: | |||
Balances at beginning of year | 91.7 | 120.8 | 118.6 |
Service cost | 3 | 4.6 | 4.9 |
Interest cost | 4.6 | 3.2 | 2.7 |
Actuarial losses (gains) | 2.8 | (32.6) | (2.8) |
Contributions and other | 3 | 1.6 | 1.4 |
Benefits paid | (3) | (5.9) | (4) |
Balances at end of year | 102.1 | 91.7 | 120.8 |
Plan assets: | |||
Balances at beginning of year | 119.4 | 155.2 | 144.3 |
Actual returns on plan assets | 18.7 | (29.9) | 14.9 |
Benefits paid | (3) | (5.9) | (4) |
Balances at end of year | 135.1 | 119.4 | 155.2 |
Excess (deficient) plan assets over projected benefit obligations | 33 | 27.7 | 34.4 |
Assets and liabilities recognized in the Consolidated Balance Sheets: | |||
Deferred pension assets | 33 | 27.7 | 34.4 |
Total | 33 | 27.7 | 34.4 |
Amounts recognized in AOCI: | |||
Net actuarial gains (losses) | 16.6 | 8 | 13 |
Prior service (costs) credits | (8.8) | (7.1) | (6.5) |
Total amounts recognized | $ 7.8 | $ 0.9 | $ 6.5 |
Weighted-average assumptions used to determine projected benefit obligations: | |||
Discount rate | 5.09% | 5.27% | 3.12% |
Rate of compensation increase (percentage) | 3% | 3% | 3% |
Weighted-average assumptions used to determine net pension cost: | |||
Discount rate | 5.27% | 3.12% | 2.85% |
Expected long-term rate of return on assets (percentage) | 6.25% | 5% | 5% |
Rate of compensation increase (percentage) | 3% | 3% | 3% |
Defined Benefit Pension | Foreign Defined Benefit Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated benefit obligations at end of year | $ 236.4 | $ 209.3 | $ 334.8 |
Projected benefit obligations: | |||
Balances at beginning of year | 230.4 | 362.7 | 401.1 |
Service cost | 4.4 | 6.3 | 7.4 |
Interest cost | 11.8 | 7.3 | 5.7 |
Actuarial losses (gains) | 8.8 | (112.4) | (26) |
Contributions and other | 2 | 3.2 | (4.6) |
Settlements | (3.7) | (2.4) | (1.7) |
Effect of foreign exchange | 14.1 | (28.8) | (9.8) |
Benefits paid | (10) | (5.5) | (9.4) |
Balances at end of year | 257.8 | 230.4 | 362.7 |
Plan assets: | |||
Balances at beginning of year | 223.6 | 328.4 | 318.2 |
Actual returns on plan assets | 15.4 | (73.4) | 27.9 |
Contributions and other | 8.6 | 5.8 | (1.1) |
Settlements | (3.7) | (2.4) | (1.7) |
Effect of foreign exchange | 12.8 | (29.3) | (5.5) |
Benefits paid | (10) | (5.5) | (9.4) |
Balances at end of year | 246.7 | 223.6 | 328.4 |
Excess (deficient) plan assets over projected benefit obligations | (11.1) | (6.8) | (34.3) |
Assets and liabilities recognized in the Consolidated Balance Sheets: | |||
Deferred pension assets | 57.9 | 51.7 | 44.7 |
Other accruals | (3.4) | (3) | (3.3) |
Other long-term liabilities | (65.6) | (55.5) | (75.7) |
Total | (11.1) | (6.8) | (34.3) |
Amounts recognized in AOCI: | |||
Net actuarial gains (losses) | 24.8 | 31.7 | 1.9 |
Prior service (costs) credits | 0.3 | 1.6 | 1.4 |
Total amounts recognized | $ 25.1 | $ 33.3 | $ 3.3 |
Weighted-average assumptions used to determine projected benefit obligations: | |||
Discount rate | 4.81% | 5.06% | 2.26% |
Rate of compensation increase (percentage) | 3.33% | 3.39% | 3.25% |
Weighted-average assumptions used to determine net pension cost: | |||
Discount rate | 5.06% | 2.26% | 1.63% |
Expected long-term rate of return on assets (percentage) | 5.48% | 3.19% | 3.17% |
Rate of compensation increase (percentage) | 3.39% | 3.25% | 2.91% |
Pension, Health Care and Othe_7
Pension, Health Care and Other Postretirement Benefits - Summary of the Obligation and the Assumptions Used for Postretirement Benefits Other than Pensions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Liabilities recognized in the Consolidated Balance Sheets: | |||
Other accruals | $ (1,329.5) | $ (1,138.3) | $ (1,005.8) |
Postretirement benefits other than pensions | (133.2) | (139.3) | (259.4) |
Postretirement Benefits Other than Pensions | |||
Benefit obligation: | |||
Balances at beginning of year | 153.8 | 276.4 | 291.6 |
Service cost | 0.6 | 1.2 | 1.4 |
Interest cost | 7.4 | 6 | 4.9 |
Actuarial gain | (8) | (54.5) | (4.1) |
Plan amendments | (62.8) | (2.2) | |
Benefits paid | (6.6) | (12.5) | (15.2) |
Balances at end of year | 147.2 | 153.8 | 276.4 |
Liabilities recognized in the Consolidated Balance Sheets: | |||
Other accruals | (14) | (14.5) | (17) |
Postretirement benefits other than pensions | (133.2) | (139.3) | (259.4) |
Total liabilities recognized | (147.2) | (153.8) | (276.4) |
Amounts recognized in AOCI: | |||
Net actuarial gains (losses) | 12.9 | 4.7 | (54) |
Prior service credits | 40 | 64 | 1.6 |
Total amounts recognized | $ 52.9 | $ 68.7 | $ (52.4) |
Weighted-average assumptions used to determine benefit obligation: | |||
Discount rate | 4.97% | 5.16% | 2.83% |
Health care cost trend rate - pre-65 | 7% | 6.25% | 6.38% |
Health care cost trend rate - post-65 | 6% | 5.50% | 5.13% |
Prescription drug cost increases | 9% | 8.25% | 8.25% |
Employer Group Waiver Plan (EGWP) trend rate | 8.25% | ||
Weighted-average assumptions used to determine net periodic benefit cost: | |||
Discount rate | 5.16% | 2.83% | 2.49% |
Health care cost trend rate - pre-65 | 6.25% | 6.38% | 6.06% |
Health care cost trend rate - post-65 | 5.50% | 5.13% | 5.13% |
Prescription drug cost increases | 8.25% | 8.25% | 8.25% |
Pension, Health Care and Othe_8
Pension, Health Care and Other Postretirement Benefits - Summary of the Components of Net Periodic Benefit Cost and Cumulative Other Comprehensive Loss Related to Postretirement Benefits Other than Pensions (Details) - Postretirement Benefits Other than Pensions - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Net periodic benefit cost: | |||
Service cost | $ 0.6 | $ 1.2 | $ 1.4 |
Interest cost | 7.4 | 6 | 4.9 |
Amortization of actuarial (gains) losses | 0.1 | 4.2 | 4.7 |
Amortization of prior service (credit) cost | (23.9) | (0.4) | 0.3 |
Net periodic benefit cost | (15.8) | 11 | 11.3 |
Other changes in projected benefit obligation recognized in AOCI (before taxes): | |||
Net actuarial gain arising during the year | (8) | (54.5) | (4.1) |
Prior service (credit) arising during the year | (62.8) | (2.2) | |
Amortization of actuarial gains (losses) | (0.1) | (4.2) | (4.7) |
Amortization of prior service credit (cost) | 23.9 | 0.4 | (0.3) |
Total recognized in AOCI | 15.8 | (121.1) | (11.3) |
Total recognized in net pension cost and AOCI | $ 0 | $ (110.1) | $ 0 |
Pension, Health Care and Othe_9
Pension, Health Care and Other Postretirement Benefits - Expected Retiree Health Care Benefit Cash Payments (Details) - Postretirement Benefits Other than Pensions $ in Millions | Dec. 31, 2023 USD ($) |
Expected Cash Payments | |
2024 | $ 14 |
2025 | 14.9 |
2026 | 14.8 |
2027 | 14.4 |
2028 | 13.7 |
2029 through 2033 | 53.4 |
Total expected benefit cash payments | $ 125.2 |
Leases - Additional Lease Infor
Leases - Additional Lease Information (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 USD ($) renewal_option | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Leases [Abstract] | |||
Renewal term | renewal_option | 1 | ||
Operating lease cost | $ 528.5 | $ 498 | $ 478 |
Short-term lease cost | 58.5 | 47.1 | 43.8 |
Variable lease cost | 104.1 | 89.9 | 84.4 |
Operating cash outflows from operating leases | 513.8 | 480.1 | 461.4 |
Leased assets obtained in exchange for new operating lease liabilities | $ 473.3 | $ 463.1 | $ 505.2 |
Weighted average remaining lease term | 5 years 6 months | 5 years 7 months 6 days | 5 years 9 months 18 days |
Weighted average discount rate | 3.80% | 3.30% | 3% |
Leases - Maturities of Operatin
Leases - Maturities of Operating Lease Liabilities (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Leases [Abstract] | |
2024 | $ 513.5 |
2025 | 449.3 |
2026 | 367.3 |
2027 | 279.7 |
2028 | 195.8 |
Thereafter | 383.9 |
Total lease payments | 2,189.5 |
Amount representing interest | (230.7) |
Present value of operating lease liabilities | $ 1,958.8 |
Other Long-Term Liabilities (De
Other Long-Term Liabilities (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 USD ($) OPERABLE_UNIT ManufacturingSite | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Loss Contingencies [Line Items] | |||
Environmental loss contingency, noncurrent, statement of financial position [Extensible Enumeration] | Other Liabilities, Noncurrent | Other Liabilities, Noncurrent | Other Liabilities, Noncurrent |
Accruals for extended environmental-related activities | $ 230.8 | $ 240.2 | $ 277.4 |
Estimated costs of current investigation and remediation activities included in other accruals | $ 88.1 | $ 50.2 | $ 45.9 |
Environmental loss contingency, current, statement of financial position [Extensible Enumeration] | Other Liabilities, Current | Other Liabilities, Current | Other Liabilities, Current |
Amount by which unaccrued maximum of estimated range exceeds minimum | $ 94.7 | ||
Number of manufacturing sites accounting for the majority of the accrual for environmental-related activities | ManufacturingSite | 4 | ||
Accruals for environmental-related activities of sites accounting for the majority of the accrual for environmental-related activities | $ 274.1 | ||
Percentage of accrual for environmental-related activities related to sites accounting for the majority of the accrual for environmental-related activities | 86% | ||
Amount of unaccrued maximum related to sites accounting for the majority of the accrual for environmental-related activities | $ 70.3 | ||
Percentage of aggregate unaccrued maximum related to sites accounting for the majority of the accrual for environmental-related activities | 74.20% | ||
Remaining number of operable units | ManufacturingSite | 3 | ||
Proceeds from real estate financing transactions | $ 305 | $ 210 | |
Financing liability | 515.8 | 207 | |
Financing liability, current | 39.9 | $ 20 | |
Interest costs capitalized | 23.8 | ||
Future payments next fiscal year | 40 | ||
Minimum | |||
Loss Contingencies [Line Items] | |||
Expected proceeds | 800 | ||
Maximum | |||
Loss Contingencies [Line Items] | |||
Expected proceeds | $ 850 | ||
Environmental costs, remedy implementation | |||
Loss Contingencies [Line Items] | |||
Regulatory agency significant cost components liability | 85% | ||
Environmental costs, regulatory agency interaction | |||
Loss Contingencies [Line Items] | |||
Regulatory agency significant cost components liability | 10% | ||
Environmental costs, project management nd other costs | |||
Loss Contingencies [Line Items] | |||
Regulatory agency significant cost components liability | 5% | ||
Gibbsboro, New Jersey | |||
Loss Contingencies [Line Items] | |||
Number of operable units | OPERABLE_UNIT | 6 | ||
Number of operable units completed | OPERABLE_UNIT | 3 |
Litigation (Details)
Litigation (Details) - Ravon Owens v. American Cyanamid, et al., Cesar Sifuentes v. American Cyanamid, et al., and Glenn Burton, Jr. v. American Cyanamid, et al. $ in Millions | May 31, 2019 USD ($) defendant plaintiff | Dec. 31, 2023 case |
Loss Contingencies [Line Items] | ||
Number of cases consolidated | case | 3 | |
Number of plaintiffs | plaintiff | 3 | |
Amount awarded per plaintiff | $ | $ 2 | |
Amount awarded to plaintiffs | $ | $ 6 | |
Number of additional defendants | defendant | 2 | |
Number of plaintiffs awarded | plaintiff | 1 |
Shareholders' Equity - Narrativ
Shareholders' Equity - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Class of Stock [Line Items] | |||
Common stock authorized (in shares) | 900,000,000 | ||
Preferred stock authorized (in shares) | 30,000,000 | ||
Common stock reserved for exercise and future grants of restricted stock (in shares) | 15,830,386 | 17,939,143 | 19,135,222 |
Common stock held in revocable trust (in shares) | 1,426,883 | 1,426,883 | 1,426,883 |
Remaining number of shares authorized to be repurchased (in shares) | 39,600,000 | ||
Proceeds from treasury stock issued | $ 0 | $ 22 | $ 11.7 |
2006 Employee Plan | |||
Class of Stock [Line Items] | |||
Common shares issuable or transferable (in shares) | 71,100,000 | ||
Cumulative Preferred Stock | |||
Class of Stock [Line Items] | |||
Preferred stock authorized (in shares) | 3,000,000 |
Shareholders' Equity - Common S
Shareholders' Equity - Common Shares in Treasury and Common Shares Outstanding (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation Of Common Stock And Treasury Stock Balances [Roll Forward] | |||
Beginning balance outstanding (in shares) | 258,900,000 | 261,100,000 | |
Treasury stock purchased (in shares) | (5,600,000) | (3,350,000) | (10,075,000) |
Ending balance outstanding (in shares) | 254,500,000 | 258,900,000 | 261,100,000 |
Proceeds from treasury stock issued | $ 0 | $ 22 | $ 11.7 |
Shares in Treasury | |||
Reconciliation Of Common Stock And Treasury Stock Balances [Roll Forward] | |||
Beginning balance in treasury (in shares) | 14,717,347 | 11,313,634 | 1,138,692 |
Shares tendered as payment for option rights exercised (in shares) | 10,467 | 3,861 | 4,324 |
Shares tendered in connection with vesting of restricted stock units (in shares) | 106,770 | 124,852 | 95,618 |
Treasury stock purchased (in shares) | (5,600,000) | (3,350,000) | (10,075,000) |
Treasury stock sold (in shares) | (75,000) | ||
Ending balance in treasury (in shares) | 20,434,584 | 14,717,347 | 11,313,634 |
Shares Outstanding | |||
Reconciliation Of Common Stock And Treasury Stock Balances [Roll Forward] | |||
Beginning balance outstanding (in shares) | 258,875,999 | 261,143,805 | 268,676,631 |
Shares issued for exercise of option rights (in shares) | 1,081,815 | 778,075 | 2,365,168 |
Shares tendered as payment for option rights exercised (in shares) | (10,467) | (3,861) | (4,324) |
Shares issued for vesting of restricted stock units (in shares) | 302,713 | 357,832 | 276,948 |
Shares tendered in connection with vesting of restricted stock units (in shares) | (106,770) | (124,852) | (95,618) |
Treasury stock purchased (in shares) | (5,600,000) | (3,350,000) | (10,075,000) |
Treasury stock sold (in shares) | (75,000) | ||
Ending balance outstanding (in shares) | 254,543,290 | 258,875,999 | 261,143,805 |
Shareholders' Equity - Dividend
Shareholders' Equity - Dividends (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Equity [Abstract] | |||
Cash dividends (in dollars per share) | $ 2.42 | $ 2.40 | $ 2.20 |
Total dividends | $ 623.7 | $ 618.5 | $ 587.1 |
Shareholders' Equity - Summariz
Shareholders' Equity - Summarize of Share Repurchases (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Equity [Abstract] | |||
Treasury stock purchases (in millions) | $ 1,432 | $ 883.2 | $ 2,752.3 |
Treasury stock purchases (shares) | 5,600,000 | 3,350,000 | 10,075,000 |
Average price per share (in dollars per share) | $ 255.72 | $ 263.64 | $ 273.18 |
Defined Contribution Savings _2
Defined Contribution Savings Plan (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 USD ($) employee shares | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Share-Based Payment Arrangement [Abstract] | |||
Number of employees contributing to company's ESOP | employee | 45,017 | ||
Participants percentage contribution on a pretax basis only of their annual compensation (up to the lesser of) | 50% | ||
Percentage of matching contribution to ESOP plan by employer | 100% | ||
Percentage of eligible contribution plan up to which employer contributes (up to) | 6% | ||
Company contributions to ESOP on behalf of participating employees representing amounts authorized by employees to be withheld from their earnings on pre-tax basis | $ 260.5 | $ 240.1 | $ 224.3 |
Company's matching contributions to the ESOP | $ 153.9 | $ 140 | $ 133.7 |
Employee stock ownership plan common stock shares held in ESOP (in shares) | shares | 18,680,108 | ||
Percentage of total voting shares outstanding held by the ESOP | 7.30% |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 USD ($) right shares | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Unrecognized stock-based compensation expense | $ 169.3 | ||
Unrecognized stock-based compensation expense, weighted-average period recognition (in years) | 1 year 29 days | ||
Stock-based compensation expense | $ 115.9 | $ 99.7 | $ 97.7 |
Income tax benefit related to stock-based compensation expense | 28.6 | 24.6 | 24.1 |
Effective income tax rate reconciliation, tax benefit, share-based payment arrangement, amount | $ 35.7 | $ 35.4 | $ 108.7 |
Expiration period | 10 years | ||
Restricted Stock | |||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Award vesting period | 3 years | ||
Performance shares | |||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Award vesting period | 3 years | ||
Nonemployee Director Plan | |||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Number of appreciation rights, performance shares or performance units granted | right | 0 | ||
Stock Option | |||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Unrecognized stock-based compensation expense | $ 91.3 | ||
Unrecognized stock-based compensation expense, weighted-average period recognition (in years) | 1 year 1 month 6 days | ||
Award vesting period | 3 years | ||
Stock Option | Tranche One | |||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Vesting percentage | 33% | ||
Stock Option | Tranche Two | |||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Vesting percentage | 33% | ||
Stock Option | Tranche Three | |||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Vesting percentage | 33% | ||
Restricted Stock | Tranche One | |||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Vesting percentage | 33% | ||
Restricted Stock | Tranche Two | |||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Vesting percentage | 33% | ||
Restricted Stock | Tranche Three | |||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Vesting percentage | 33% | ||
Restricted Stock | Employees | |||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Unrecognized stock-based compensation expense | $ 76.1 | ||
Unrecognized stock-based compensation expense, weighted-average period recognition (in years) | 1 year 3 days | ||
Restricted Stock | Non-Employee Directors | |||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Unrecognized stock-based compensation expense | $ 1.9 | ||
Unrecognized stock-based compensation expense, weighted-average period recognition (in years) | 11 months 8 days | ||
Award vesting period | 3 years | ||
2006 Employee Plan | |||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Number of shares authorized (in shares) | shares | 71,100,000 | ||
Number of appreciation rights, performance shares or performance units granted | right | 0 | ||
Shares available for grant (in shares) | shares | 6,689,354 | ||
Nonemployee Director Plan | |||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Number of shares authorized (in shares) | shares | 600,000 | ||
Shares available for grant (in shares) | shares | 216,021 |
Stock-Based Compensation - Weig
Stock-Based Compensation - Weighted-Average Assumptions Used for Estimating the Fair Value of Option Rights (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-Based Payment Arrangement [Abstract] | |||
Risk-free interest rate | 4.57% | 4% | 1.11% |
Expected life of options | 5 years 7 days | 5 years 18 days | 5 years 18 days |
Expected dividend yield of stock | 0.94% | 0.92% | 0.75% |
Expected volatility of stock | 29.30% | 31.60% | 26.80% |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Non-Qualified and Incentive Stock Option Right Activity (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Optioned Shares | ||
Outstanding beginning of year (in shares) | 9,102,638 | |
Granted (in shares) | 994,305 | |
Exercised (in shares) | (1,086,468) | |
Forfeited (in shares) | (65,225) | |
Expired (in shares) | (20,239) | |
Outstanding end of year (in shares) | 8,925,011 | 9,102,638 |
Exercisable at end of year (in shares) | 7,002,046 | |
Weighted Average Exercise Price Per Share | ||
Outstanding beginning of year (in dollars per share) | $ 160.09 | |
Granted (in dollars per share) | 247.58 | |
Exercised (in dollars per share) | 105.23 | |
Forfeited (in dollars per share) | 245.11 | |
Expired (in dollars per share) | 234.69 | |
Outstanding end of year (in dollars per share) | 175.70 | $ 160.09 |
Exercisable at end of year (in dollars per share) | $ 156.54 | |
Aggregate Intrinsic Value | ||
Outstanding, aggregate intrinsic value | $ 1,215.6 | $ 756.6 |
Exercisable, aggregate intrinsic value | $ 1,087.8 | |
Weighted Average Remaining Term (in Years) | ||
Weighted average remaining term for options outstanding | 5 years 7 months 20 days | 5 years 9 months 25 days |
Weighted average remaining term for options exercisable | 4 years 8 months 8 days |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summarizes Fair Value and Intrinsic Value (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-Based Payment Arrangement [Abstract] | |||
Weighted average grant date fair value per share | $ 77.08 | $ 69.82 | $ 68.63 |
Total fair value of options vested | $ 61.3 | $ 57.9 | $ 53.2 |
Total intrinsic value of options exercised | $ 170.6 | $ 125.4 | $ 485.8 |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summary of RSU Activity (Details) - Restricted Stock - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Number of RSUs | |||
Outstanding at beginning of year (in shares) | 401,924 | ||
Granted (in shares) | 343,564 | ||
Vested (in shares) | (302,713) | ||
Forfeited (in shares) | (7,901) | ||
Outstanding at end of year (in shares) | 434,874 | 401,924 | |
Weighted Average Grant Date Fair Value Per Share | |||
Outstanding, beginning of year (in dollars per share) | $ 231.09 | ||
Granted (in dollars per share) | 232.22 | $ 271.75 | $ 238.89 |
Vested (in dollars per share) | 194.37 | ||
Forfeited (in dollars per share) | 246.91 | ||
Outstanding, ending of year (in dollars per share) | $ 244.21 | $ 231.09 | |
Aggregate Intrinsic Value | |||
Outstanding, aggregate intrinsic value | $ 135.6 | $ 95.4 | |
Weighted Average Remaining Term (in Years) | |||
Outstanding, weighted average remaining contractual terms (in years) | 1 year 3 months 3 days | 1 year 7 days |
Stock-Based Compensation - Su_4
Stock-Based Compensation - Summarizes of Fair Value And Intrinsic Value of RSU Activity (Details) - Restricted Stock - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average grant date fair value per share (in dollars per share) | $ 232.22 | $ 271.75 | $ 238.89 |
Intrinsic value of RSUs vested during year | $ 68.5 | $ 97.5 | $ 66.3 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
AOCI Including Portion Attributable to Noncontrolling Interest [Abstract] | |||
Beginning balance | $ 3,102.1 | $ 2,437.2 | $ 3,610.8 |
Amounts recognized in AOCI | 97.8 | (1.9) | 18.1 |
Amounts reclassified from AOCI | (21.5) | (0.3) | 1.8 |
Ending balance | 3,715.8 | 3,102.1 | 2,437.2 |
Pension and other post retirement benefits adjustments, tax | 3.1 | (35) | (14.7) |
Unrealized holding losses on cash flow hedges, amounts reclassified from other comprehensive loss, tax | 1.2 | 1.1 | 1 |
Net Investment Hedging | |||
AOCI Including Portion Attributable to Noncontrolling Interest [Abstract] | |||
(Losses) gains on foreign currency translation adjustments | (24.9) | 34.1 | 37.1 |
Total | |||
AOCI Including Portion Attributable to Noncontrolling Interest [Abstract] | |||
Beginning balance | (700.6) | (698.4) | (718.3) |
Ending balance | (624.3) | (700.6) | (698.4) |
Foreign Currency Translation Adjustments | |||
AOCI Including Portion Attributable to Noncontrolling Interest [Abstract] | |||
Beginning balance | (810.8) | (702.1) | (671.5) |
Amounts recognized in AOCI | 93.9 | (108.7) | (30.6) |
Ending balance | (716.9) | (810.8) | (702.1) |
Pension and Other Postretirement Benefits Adjustments | |||
AOCI Including Portion Attributable to Noncontrolling Interest [Abstract] | |||
Beginning balance | 78.3 | (32.2) | (87.2) |
Amounts recognized in AOCI | 3.9 | 106.8 | 48.7 |
Amounts reclassified from AOCI | (17.9) | 3.7 | 6.3 |
Ending balance | 64.3 | 78.3 | (32.2) |
Unrealized Net Gains on Cash Flow Hedges | |||
AOCI Including Portion Attributable to Noncontrolling Interest [Abstract] | |||
Beginning balance | 31.9 | 35.9 | 40.4 |
Amounts reclassified from AOCI | (3.6) | (4) | (4.5) |
Ending balance | $ 28.3 | $ 31.9 | $ 35.9 |
Derivatives and Hedging - Summa
Derivatives and Hedging - Summarizes of Outstanding Contracts (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Euro Cross Currency Swap 1 | |
Derivative [Line Items] | |
Notional Value | $ 500 |
Euro Cross Currency Swap 2 | |
Derivative [Line Items] | |
Notional Value | 162.7 |
Euro Cross Currency Swap 3 | |
Derivative [Line Items] | |
Notional Value | 150 |
Euro Cross Currency Swap 4 | |
Derivative [Line Items] | |
Notional Value | 200 |
Euro Cross Currency Swap 5 | |
Derivative [Line Items] | |
Notional Value | $ 150 |
Derivatives and Hedging - Narra
Derivatives and Hedging - Narrative (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Cross Currency Swap Contract | |
Derivative [Line Items] | |
Derivative, Settlement | $ 100 |
Derivatives and Hedging - Sum_2
Derivatives and Hedging - Summarizes of Derivate Instruments Fair Value (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Derivative [Line Items] | |||
Derivative asset, statement of financial position [Extensible Enumeration] | Other Assets, Noncurrent | Other Assets, Noncurrent | Other Assets, Noncurrent |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Other Liabilities, Noncurrent | Other Liabilities, Noncurrent | Other Liabilities, Noncurrent |
Cross Currency Swap Contract | |||
Derivative [Line Items] | |||
Net investment hedges | $ 0 | $ 9.1 | $ 0 |
Cross Currency Swap Contract | Other accruals | |||
Derivative [Line Items] | |||
Derivative liability | (12) | 0 | 0 |
Cross Currency Swap Contract | Other long-term liabilities | |||
Derivative [Line Items] | |||
Derivative liability | $ (12.4) | $ 0 | $ 36.5 |
Derivatives and Hedging - Sum_3
Derivatives and Hedging - Summarizes of Unrealized (Losses) Gains (Details) - Cross Currency Swap Contract - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Derivative [Line Items] | |||
(Losses) gains | $ (33.1) | $ 45.2 | $ 49.3 |
Tax effect | 8.2 | (11.1) | (12.2) |
(Losses) gains, net of taxes | $ (24.9) | $ 34.1 | $ 37.1 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Assets: | |||
Net investment hedges | $ 0 | $ 9.1 | $ 0 |
Total assets | 84.7 | 113 | 179.2 |
Liabilities: | |||
Net investment hedges | 24.4 | 0 | 36.5 |
Deferred Compensation Plan Assets | |||
Assets: | |||
Plan assets | 84.7 | 74.1 | 80.4 |
Qualified Replacement Plan Assets | |||
Assets: | |||
Plan assets | 0 | 29.8 | 98.8 |
Level 1 | |||
Assets: | |||
Total assets | 84.7 | 73.5 | 141.9 |
Level 1 | Deferred Compensation Plan Assets | |||
Assets: | |||
Plan assets | 84.7 | 43.7 | 43.1 |
Level 1 | Qualified Replacement Plan Assets | |||
Assets: | |||
Plan assets | 29.8 | 98.8 | |
Level 2 | |||
Assets: | |||
Net investment hedges | 9.1 | ||
Total assets | 0 | 39.5 | 37.3 |
Liabilities: | |||
Net investment hedges | 24.4 | 36.5 | |
Level 2 | Deferred Compensation Plan Assets | |||
Assets: | |||
Plan assets | 30.4 | 37.3 | |
Liabilities: | |||
Cost basis of investment funds | 76.3 | 67.2 | 63 |
Level 2 | Qualified Replacement Plan Assets | |||
Liabilities: | |||
Cost basis of investment funds | $ 29.8 | $ 86.9 | |
NAV | Deferred Compensation Plan Assets | |||
Assets: | |||
Plan assets | $ 6.4 |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Amount and Fair Value of Debt (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Publicly traded debt | Carrying Amount | |||
Debt Instrument [Line Items] | |||
Debt fair value | $ 9,475.8 | $ 9,590 | $ 8,849.6 |
Publicly traded debt | Fair Value | |||
Debt Instrument [Line Items] | |||
Debt fair value | 8,615.1 | 8,382.3 | 9,777.4 |
Non-traded debt | Carrying Amount | |||
Debt Instrument [Line Items] | |||
Debt fair value | 0.9 | 1.6 | 1.9 |
Non-traded debt | Fair Value | |||
Debt Instrument [Line Items] | |||
Debt fair value | $ 0.8 | $ 1.5 | $ 1.9 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Disaggregation of Revenue [Line Items] | |
Payment terms | 30 and 60 days |
North America | Geographic Concentration Risk | Revenue from Contract with Customer Benchmark | |
Disaggregation of Revenue [Line Items] | |
Concentration risk, percentage | 80% |
E M E A I Region | Geographic Concentration Risk | Revenue from Contract with Customer Benchmark | |
Disaggregation of Revenue [Line Items] | |
Concentration risk, percentage | 10% |
Revenue - Accounts Receivable a
Revenue - Accounts Receivable and Current and Long-Term Contract Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Revenue from Contract with Customer [Abstract] | |||
Accounts Receivable, Less Allowance | $ 2,467.9 | $ 2,563.6 | $ 2,352.4 |
Contract Assets (Current) | 46.2 | 43.8 | |
Contract Assets (Long-Term) | 151.7 | 117.7 | |
Contract Liabilities (Current) | 365.7 | 292.9 | |
Contract Liabilities (Long-Term) | $ 3.8 | $ 7.1 |
Revenue - Allowance For Doubtfu
Revenue - Allowance For Doubtful Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | $ 56.6 | $ 48.9 | $ 53.5 |
Bad debt expense | 67.9 | 65.3 | 33.8 |
Uncollectible accounts written off, net of recoveries | (64.9) | (57.6) | (38.4) |
Ending balance | $ 59.6 | $ 56.6 | $ 48.9 |
Other Expense (Income) - Other
Other Expense (Income) - Other General Expense (Income), Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Other Income and Expenses [Abstract] | |||
Provisions for environmental matters - net | $ 80.7 | $ (7.1) | $ (4) |
(Gain) loss on divestiture of business | (20.1) | 0 | 111.9 |
Loss (gain) on sale or disposition of assets | 0.9 | (17.8) | (6.1) |
Other | 5.6 | 0 | 0 |
Total | $ 67.1 | $ (24.9) | $ 101.8 |
Other Expense (Income) - Othe_2
Other Expense (Income) - Other Expense (Income), Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Other Income and Expenses [Abstract] | |||
Investment (gains) losses | $ (22.9) | $ 9.7 | $ (30.4) |
Loss (gain) on extinguishment of debt | 12.8 | 0 | (1.4) |
Net expense from banking activities | 15 | 12.2 | 10.3 |
Foreign currency transaction related losses - net | 80.5 | 33.6 | 12 |
Miscellaneous pension and benefit (income) expense | (21.1) | 4 | 4.4 |
Other income | (48.5) | (39.6) | (29) |
Other expense | 49.7 | 27.1 | 14.6 |
Total | $ 65.5 | $ 47 | $ (19.5) |
Other Expense (Income) - Narrat
Other Expense (Income) - Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 USD ($) option_plan | Dec. 31, 2022 USD ($) option_plan | Dec. 31, 2021 USD ($) option_plan | |
Derivative [Line Items] | |||
Foreign currency transaction related losses - net | $ | $ 80.5 | $ 33.6 | $ 12 |
Number of foreign currency option outstanding | option_plan | 0 | 0 | 0 |
Number of foreign forward contracts outstanding | option_plan | 0 | 0 | 0 |
ARGENTINA | |||
Derivative [Line Items] | |||
Foreign currency transaction related losses - net | $ | $ 41.8 |
Income Taxes - Significant Comp
Income Taxes - Significant Components of the Provisions for Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current: | |||
Federal | $ 553.4 | $ 505.5 | $ 331.2 |
Foreign | 147.6 | 90.3 | 86.5 |
State and local | 109 | 102 | 46.8 |
Total current | 810 | 697.8 | 464.5 |
Deferred: | |||
Federal | (39.9) | (81.7) | (36.5) |
Foreign | (51.5) | (47.3) | (40.4) |
State and local | 2.5 | (15.8) | (3.4) |
Total deferred | (88.9) | (144.8) | (80.3) |
Total provisions for income taxes | $ 721.1 | $ 553 | $ 384.2 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of the Statutory Federal Income Tax Rate to the Effective Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of the statutory federal income tax rate to the effective tax rate | |||
Statutory federal income tax rate | 21% | 21% | 21% |
Effect of: | |||
State and local income taxes | 3% | 2.80% | 2.20% |
Investment vehicles | (0.50%) | (0.40%) | (0.80%) |
Employee share-based payments | (1.10%) | (1.40%) | (4.80%) |
Research and development credits | (0.40%) | (0.60%) | (0.60%) |
Amended returns and refunds | 0.20% | 0.40% | 0.20% |
Taxes on non-U.S. earnings | 0.80% | 0.20% | (0.40%) |
Other - net | 0.20% | (0.50%) | 0.30% |
Reported effective tax rate | 23.20% | 21.50% | 17.10% |
Income Taxes - Significant Co_2
Income Taxes - Significant Components of Income Before Income Taxes as Used for Income Tax Purposes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Components of income before income taxes as used for income tax purposes | |||
Domestic | $ 2,817 | $ 2,427.6 | $ 2,106.8 |
Foreign | 292.9 | 145.5 | 141.8 |
Income before income taxes | $ 3,109.9 | $ 2,573.1 | $ 2,248.6 |
Income Taxes - Significant Co_3
Income Taxes - Significant Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets: | |||
Environmental and other similar items | $ 72 | $ 66.4 | $ 73.2 |
Employee related and benefit items | 162.1 | 157.1 | 170.3 |
Operating lease liabilities | 483.2 | 478.1 | 463.1 |
Research and development capitalization | 81.5 | 52.6 | |
Other items | 205.6 | 204.1 | 192 |
Total deferred tax assets | 1,004.4 | 958.3 | 898.6 |
Deferred tax liabilities: | |||
Intangible assets and Property, plant, and equipment | 1,001.1 | 973.4 | 1,053.7 |
LIFO inventories | 115.2 | 97.3 | 68.6 |
Operating lease right-of-use assets | 465.6 | 460.5 | 448.4 |
Other items | 28.6 | 31.7 | 33.3 |
Total deferred tax liabilities | 1,610.5 | 1,562.9 | 1,604 |
Net deferred tax liabilities | $ 606.1 | $ 604.6 | $ 705.4 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Business Acquisition [Line Items] | |||
Valuation reserves for other deferred tax assets | $ 106.6 | $ 97.5 | $ 97.2 |
Unrecognized tax benefits adjusted | 109.4 | 230.3 | 218.9 |
Amount of unrecognized tax benefits where significant change is reasonably possible | 8.4 | ||
Increase (decrease) in income tax interest and penalties | 5.9 | 10.3 | (2.7) |
Accrued income tax interest and penalties | 20.4 | $ 36.6 | $ 26.4 |
Domestic | |||
Business Acquisition [Line Items] | |||
Net operating loss carryforward | 14.6 | ||
Foreign | |||
Business Acquisition [Line Items] | |||
Net operating loss carryforward | 361.7 | ||
Foreign tax credits | $ 26.5 |
Income Taxes - Reconciliation_2
Income Taxes - Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of unrecognized tax benefits | |||
Balance at beginning of year | $ 242.4 | $ 228.5 | $ 227 |
Additions based on tax positions related to the current year | 14.2 | 18.7 | 14 |
Additions for tax positions of prior years | 12.6 | 10.6 | 23.1 |
Reductions for tax positions of prior years | (16.9) | (6) | (22.1) |
Settlements | (123.2) | (1.7) | (5.6) |
Lapses of statutes of limitations | (7.3) | (7.7) | (7.9) |
Balance at end of year | $ 121.8 | $ 242.4 | $ 228.5 |
Net Income Per Share (Details)
Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Basic | |||
Net income | $ 2,388.8 | $ 2,020.1 | $ 1,864.4 |
Weighted average shares outstanding (in shares) | 255.4 | 258 | 262.5 |
Basic net income per share (in dollars per share) | $ 9.35 | $ 7.83 | $ 7.10 |
Diluted | |||
Net income | $ 2,388.8 | $ 2,020.1 | $ 1,864.4 |
Weighted average shares outstanding assuming dilution: | |||
Weighted average shares outstanding (in shares) | 255.4 | 258 | 262.5 |
Stock options and other contingently issuable shares (in shares) | 2.9 | 3.8 | 4.6 |
Weighted average shares outstanding assuming dilution (in shares) | 258.3 | 261.8 | 267.1 |
Diluted net income per share (in dollars per share) | $ 9.25 | $ 7.72 | $ 6.98 |
Stock options and other contingently issuable shares with anti-dilutive effects (in shares) | 2.8 | 1.9 | 0.9 |
Reportable Segment Informatio_2
Reportable Segment Information - Narrative (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Oct. 01, 2023 USD ($) | Jun. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) store segment branch | Dec. 31, 2022 USD ($) store | Dec. 31, 2021 USD ($) store | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Number of reporting segments | segment | 3 | ||||
Number of operating segments | segment | 3 | ||||
(Gain) loss on divestiture of business | $ (20.1) | $ 0 | $ 111.9 | ||
Impairment charge | 57.9 | 15.5 | 0 | ||
Long lived assets | 17,441 | 16,686 | 15,613 | ||
Identifiable assets | $ 22,954.4 | $ 22,594 | $ 20,666.7 | ||
Percent of assets of consolidated foreign subsidiaries to company's assets | 24.90% | 23.60% | 22.50% | ||
Trademarks | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Impairment of asset | $ 163.8 | $ 139.9 | $ 124.4 | ||
Non-core Domestic Aerosol Business | Administrative | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
(Gain) loss on divestiture of business | (20.1) | ||||
China Architectural Business | Administrative | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Impairment charge | $ 27.1 | ||||
Non-US | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Net external sales | 4,428 | 4,294 | 4,223 | ||
Long lived assets | 3,586 | 3,369 | 2,785 | ||
Identifiable assets | $ 5,718 | $ 5,337 | $ 4,653 | ||
Paint Stores Group | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Number of company-operated stores | store | 4,694 | ||||
Number of net new stores | store | 70 | 75 | 73 | ||
New stores opened | store | 76 | ||||
Number of stores closed | store | 6 | ||||
Consumer Brands Group | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Number of company-operated stores | store | 318 | ||||
Number of net new stores | store | 11 | 12 | |||
New stores opened | store | 17 | ||||
Number of stores closed | store | 6 | 3 | |||
Percent of sales of one group including intersegment transfers represented products sold through other stores group | 61% | ||||
Consumer Brands Group | Trademarks | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Impairment of asset | $ 23.9 | $ 15.5 | |||
Performance Coatings Group | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Number of company-operated stores | branch | 322 | ||||
New stores opened | branch | 8 | ||||
Number of stores closed | branch | 3 | ||||
Net stores opened | branch | 5 |
Reportable Segment Informatio_3
Reportable Segment Information - Reportable Segment Financial Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Net sales | $ 23,051.9 | $ 22,148.9 | $ 19,944.6 |
Segment profit | 4,161.7 | 3,397.2 | 3,083.7 |
Interest expense | (417.5) | (390.8) | (334.7) |
Administrative expenses and other | (634.3) | (433.3) | (500.4) |
Income before income taxes | $ 3,109.9 | $ 2,573.1 | $ 2,248.6 |
% to net sales | 13.50% | 11.60% | 11.30% |
Identifiable assets | $ 22,954.4 | $ 22,594 | $ 20,666.7 |
Capital expenditures | 888.4 | 644.5 | 372 |
Depreciation | 292.3 | 264 | 263.1 |
Amortization | 330.2 | 317.1 | 309.5 |
Administrative | |||
Segment Reporting Information [Line Items] | |||
Net sales | 3.7 | 3.7 | 2.2 |
Interest expense | (334.7) | ||
Corporate and eliminations | |||
Segment Reporting Information [Line Items] | |||
Net sales | (5,428.1) | (5,414.8) | (4,331.1) |
Interest expense | (417.5) | (390.8) | |
Administrative expenses and other | (634.3) | (433.3) | |
Income before income taxes | (1,051.8) | (824.1) | (835.1) |
Identifiable assets | 2,310.7 | 1,674 | 1,489.1 |
Capital expenditures | 434.8 | 223.5 | 78.1 |
Depreciation | 35.9 | 34.8 | 36.8 |
Amortization | 1.5 | 2 | 3.2 |
Intersegment transfers | |||
Segment Reporting Information [Line Items] | |||
Net sales | 5,431.8 | 5,418.5 | 4,333.3 |
Administrative expenses and other | (500.4) | ||
Paint Stores Group | |||
Segment Reporting Information [Line Items] | |||
Net sales | 12,839.5 | 11,963.3 | 10,616.2 |
Paint Stores Group | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Net sales | 12,839.5 | 11,963.3 | 10,616.2 |
Segment profit | 2,860.8 | 2,348.1 | 2,182.2 |
Income before income taxes | $ 2,860.8 | $ 2,348.1 | $ 2,182.2 |
% to net sales | 22.30% | 19.60% | 20.60% |
Identifiable assets | $ 5,745.3 | $ 5,873.6 | $ 5,501.3 |
Capital expenditures | 111.4 | 87.3 | 77.6 |
Depreciation | 79 | 73.9 | 71.3 |
Amortization | 3.3 | 3.3 | 3.5 |
Consumer Brands Group | |||
Segment Reporting Information [Line Items] | |||
Net sales | 3,365.6 | 3,388.4 | 3,322.4 |
Consumer Brands Group | Intersegment transfers | |||
Segment Reporting Information [Line Items] | |||
Net sales | (5,234) | (5,214.8) | (4,183.6) |
Consumer Brands Group | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Net sales | 8,599.6 | 8,603.2 | 7,506 |
Segment profit | 309.3 | 314.2 | 415.3 |
Income before income taxes | $ 309.3 | $ 314.2 | $ 415.3 |
% to net sales | 9.20% | 9.30% | 12.50% |
Identifiable assets | $ 6,631.8 | $ 6,749.6 | $ 5,287.7 |
Capital expenditures | 309.6 | 295 | 125.5 |
Depreciation | 151.4 | 126.2 | 88.8 |
Amortization | 72.4 | 79.8 | 83.9 |
Performance Coatings Group | |||
Segment Reporting Information [Line Items] | |||
Net sales | 6,843.1 | 6,793.5 | 6,003.8 |
Performance Coatings Group | Intersegment transfers | |||
Segment Reporting Information [Line Items] | |||
Net sales | (197.8) | (203.7) | (149.7) |
Performance Coatings Group | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Net sales | 7,040.9 | 6,997.2 | 6,153.5 |
Segment profit | 991.6 | 734.9 | 486.2 |
Income before income taxes | $ 991.6 | $ 734.9 | $ 486.2 |
% to net sales | 14.50% | 10.80% | 8.10% |
Identifiable assets | $ 8,266.6 | $ 8,296.8 | $ 8,388.6 |
Capital expenditures | 32.6 | 38.7 | 90.8 |
Depreciation | 26 | 29.1 | 66.2 |
Amortization | $ 253 | $ 232 | $ 218.9 |
Valuation and Qualifying Acco_2
Valuation and Qualifying Accounts and Reserves (Schedule II) (Details) - Deferred Tax Asset Valuation Allowance - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning balance | $ 97.5 | $ 97.2 | $ 104.6 |
Additions (deductions) | 9.1 | 0.3 | (7.4) |
Ending balance | $ 106.6 | $ 97.5 | $ 97.2 |