Sherwin-Williams Financial and Demographic Overview
Adjustments to Segment Profit
GAAP to Adjusted Pre-Tax Income by Segment
SHERWIN-WILLIAMS
Consumer Brands Group
Performance Coatings Group
($ in millions)
2017
2018
2019
($ in millions)
2017
2018
2019
Net external sales
$
2,154.7 $
2,739.1 $
2,676.8
Net external sales
$
3,706.1 $
5,166.4 $
5,049.2
Segment profit (as reported)
$
% of sales (as reported)
202.8 $
9.4%
261.1 $
9.5%
373.2
13.9%
Segment profit (as reported)
% of sales (as reported)
$
262.8 $
7.1%
452.1 $
8.8%
379.1
7.5%
Other adjustments
Other adjustments
Trademark impairment
5.1
Trademark impairment
117.0
Inventory accounting change
23.2
Inventory accounting change
35.7
Total other adjustments
$
23.2 $
$
5.1
Total other adjustments
$
35.7 $
$
117.0
Acquisition-related costs
Acquisition-related costs
Transaction and integration costs
(1)
(1)
Transaction and integration costs
Acquisition-related amortization
(2)
Total acquistion-related costs
$
107.6
107.6 $
110.9
110.9 $
91.2
91.2
Acquisition-related amortization (2)
Total acquistion-related costs
$
183.1
183.1 $
215.8
215.8 $
215.5
215.5
Segment Profit (Adjusted)
$
% of sales (as adjusted)
333.6 $
15.5%
372.0 $
13.6%
469.5
17.5%
Segment Profit (Adjusted)
$
% of sales (as adjusted)
481.6 $
13.0%
667.9 $
12.9%
711.6
14.1%
(1) Transaction and integration costs consist primarily of professional service expenses, salaries and other employee-related expenses dedicated directly to the integration effort, and
severance expense. These costs are included in Selling, general and administrative and other expenses and Cost of goods sold.
(2) Acquisition-related amortization expense consists primarily of the amortization of intangible assets related to the Valspar acquisition and is included in Amortization.
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