Why Invest in SHW? slide image

Why Invest in SHW?

Regulation G Reconciliation Adjusted EPS Year Ended December 31, 2017 Tax Year Ended December 31, 2018 Year Ended December 31, 2019 Tax Year Ended December 31, 2020 Tax Effect (1) Tax Pre-Tax Effect (1) After-Tax Pre-Tax After-Tax Pre-Tax After-Tax Pre-Tax Effect (1) Effect (1) $ 6.21 $ 3.89 $ 5.50 Year Ended December 31, 2021 Year Ended December 31, 2022 After-Tax Pre-Tax Effect Tax (1) After-Tax Pre-Tax Tax (1) Effect After-Tax Diluted net income per share from continuing operations Severance and other Trademark impairment Loss on divestiture Brazil indirect tax credit California litigation expense Solar tax credit investment loss $ 7.36 0.44 0.11 0.33 $ 6.98 $ 7.72 0.18 0.06 0.03 0.01 0.15 0.05 0.41 0.07 0.34 (0.18) (0.06) (0.12) 0.48 0.12 0.36 (0.12) (0.03) (0.09) (0.26) 0.26 Pension plan settlement expense 0.13 0.03 0.10 0.12 0.03 0.09 Environmental expense provision 0.58 0.14 0.44 One-time benefit from deferred tax benefits 2.35 (2.35) Total other adjustments $ $ 2.35 $ (2.35) $ 1.19 $ 0.29 $ 0.90 $ 0.26 $ (0.21) $ 0.47 $ $ $ $ 0.41 $ 0.07 $ 0.34 $ 0.24 $ 0.04 $ 0.20 Transaction and integration costs (2) 0.49 0.20 0.29 0.55 0.03 0.52 Acquisition-related amortization expense (3) 1.02 0.31 0.71 1.15 0.28 0.87 0.29 1.10 0.06 0.26 0.23 0.84 1.10 0.27 0.83 1.10 0.27 0.83 1.06 0.25 0.81 Inventory accounting change 0.21 0.05 0.16 Total acquisition-related costs $ 1.72 $ 0.56 $ 1.16 $ 1.70 $ 0.31 $ 1.39 $ 1.39 $ 0.32 $ 1.07 $ 1.10 $ 0.27 $ 0.83 $ 1.10 $ 0.27 $ 0.83 $ 1.06 $ 0.25 $ 0.81 Adjusted diluted net income per share $ 5.02 $ 6.18 $ 7.04 $ 8.19 $ 8.15 $ 8.73 (1) The tax effect is calculated based on the statutory rate and the nature of the item, unless otherwise noted. (2) 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. (3) Acquisition-related amortization expense consists primarily of the amortization of intangible assets related to the Valspar acquisition and is included in Amortization. SHERWIN-WILLIAMS. 34
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