FORM 8-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): January 26, 2012

 

 

The Sherwin-Williams Company

(Exact Name of Registrant as Specified in Charter)

 

 

 

Ohio   1-04851   34-0526850
(State or Other Jurisdiction
of Incorporation)
 

(Commission

File Number)

 

(IRS Employer

Identification No.)

 

101 West Prospect Avenue

Cleveland, Ohio

  44115
(Address of Principal Executive Offices)   (Zip Code)

(216) 566-2000

(Registrant’s telephone number, including area code)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 


Item 2.02.   Results of Operations and Financial Condition.

On January 26, 2012, The Sherwin-Williams Company (the “Company”) issued a press release announcing its financial results for the fourth quarter and year ended December 31, 2011 and certain other information. A copy of this press release is furnished with this Report as Exhibit 99 and is incorporated herein by reference.

 

Item 8.01.   Other Events.

The Company is also filing this Current Report on Form 8-K for the purpose of conforming its historical business segment information to reflect a change in its reportable operating segments based on continued revenue growth and geographic expansion of its Global Finishes Group.

The voluntary supplemental information included in this Form 8-K updates the Company’s business segment information to reflect the change in reportable operating segments for each calendar quarter of 2011 and the years ended December 31, 2011, 2010 and 2009. There is no impact on the Company’s previously reported consolidated balance sheets, statements of consolidated income, cash flows and shareholders’ equity and comprehensive income, and the previously reported financial statements have not been updated to reflect any financial results or other changes subsequent to that date. As required by the Segment Reporting Topic of the Accounting Standards Codification, consolidated financial statements issued by the Company for the year ended December 31, 2011 and in the future will reflect the change in the Company’s reportable operating segments.

Change in Reportable Operating Segments

Effective December 31, 2011, the Company expanded its reportable operating segments from three to four due to continued revenue growth and geographic expansion of its Global Finishes Group. The Latin America Coatings Group, previously aggregated within the Global Finishes Group, will now stand on its own as an individual reportable operating segment. The Paint Stores Group, Consumer Group and Administrative Segments remain unchanged. The Company’s revised reportable segments are as follows:

 

   

Paint Stores Group. The Paint Stores Group Segment consisted of 3,450 company-operated specialty paint stores in the United States, Canada, Puerto Rico, Virgin Islands, Trinidad and Tobago, St. Maarten and Jamaica at December 31, 2011. Each store in this segment is engaged in the related business activity of selling paint, coatings and related products to end-use customers.

 

   

Consumer Group. The Consumer Group Segment develops, manufactures and distributes a variety of paint, coatings and related products to third-party customers primarily in the United States and Canada, and the Paint Stores Group and Global Finishes Group. Approximately 62 percent of the total sales of the Consumer Group in 2011 were inter-segment transfers of products primarily sold through the Paint Stores Group and Global Finishes Group.

 

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Global Finishes Group. The Global Finishes Group Segment develops, licenses, manufactures, distributes and sells a variety of architectural paint and coatings, protective and marine products, automotive finishes and refinish products, original equipment manufacturers (OEM) coatings and related products primarily in North and South America, Europe and Asia. This segment licenses certain technology and trade names worldwide. Sherwin-Williams® and other controlled brand products are distributed through the Paint Stores Group and this segment’s 303 company-operated branches and by a direct sales staff and outside sales representatives to retailers, dealers, jobbers, licensees and other third party distributors.

 

   

Latin America Coatings Group. The Latin America Coatings Group Segment develops, licenses, manufactures, distributes and sells a variety of architectural paint and coatings, and related products in North and South America. This segment meets the demands of its customers for consistent regional product development, manufacturing and distribution presence and approach to doing business. Sherwin-Williams® and other controlled brand products are distributed through this segment’s 265 company-operated specialty paint stores and by a direct sales staff and outside sales representatives to retailers, dealers, licensees and other third party distributors.

 

   

Administrative. The Administrative Segment includes the administrative expenses of the Company’s corporate headquarters site, as well as interest expense, interest and investment income, certain expenses related to closed facilities and environmental-related matters, and other expenses which are not directly associated with the Reportable Operating Segments. Also included in the Administrative Segment is 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 headquarters site, and disposal of idle facilities.

 

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In the tables below, the Company has updated its unaudited quarterly and annual data to reflect the change in reportable operating segments for the quarters ended March 31, 2011, June 30, 2011 and September 30, 2011, and for the years ended December 31, 2011, 2010 and 2009:

Thousands of dollars

 

     Quarter ended March 31, 2011  
     Net               
     External      Segment     Intersegment  
     Sales      Profit     Transfers  

Paint Stores Group

   $ 929,267       $ 68,857     

Consumer Group

     294,930         41,091      $ 418,148   

Global Finishes Group

     435,317         19,438        1,298   

Latin America Coatings Group

     194,849         17,372        8,440   

Administrative

     1,223         (52,045     2,572   
  

 

 

    

 

 

   

 

 

 
   $ 1,855,586       $ 94,713      $ 430,458   
  

 

 

    

 

 

   

 

 

 

 

     Quarter ended June 30, 2011  
     Net
External
Sales
     Segment
Profit
    Intersegment
Transfers
 

Paint Stores Group

   $ 1,299,047       $ 206,631     

Consumer Group

     375,634         61,371      $ 576,422   

Global Finishes Group

     482,695         30,249        2,072   

Latin America Coatings Group

     196,176         15,821        9,537   

Administrative

     1,199         (57,056     2,443   
  

 

 

    

 

 

   

 

 

 
   $ 2,354,751       $ 257,016      $ 590,474   
  

 

 

    

 

 

   

 

 

 

 

     Quarter ended September 30, 2011  
     Net
External
Sales
     Segment
Profit
    Intersegment
Transfers
 

Paint Stores Group

   $ 1,417,765       $ 236,886     

Consumer Group

     351,579         41,022      $ 615,307   

Global Finishes Group

     497,023         27,569        2,326   

Latin America Coatings Group

     217,328         15,939        11,083   

Administrative

     1,225         (61,140     2,528   
  

 

 

    

 

 

   

 

 

 
   $ 2,484,920       $ 260,276      $ 631,244   
  

 

 

    

 

 

   

 

 

 

 

     Quarter ended December 31, 2011  
     Net
External
Sales
     Segment
Profit
    Intersegment
Transfers
 

Paint Stores Group

   $ 1,133,747       $ 133,369     

Consumer Group

     252,138         30,170      $ 480,791   

Global Finishes Group

     463,291         13,015        3,770   

Latin America Coatings Group

     220,098         26,362        9,691   

Administrative

     1,168         (73,373     2,577   
  

 

 

    

 

 

   

 

 

 
   $ 2,070,442       $ 129,543      $ 496,829   
  

 

 

    

 

 

   

 

 

 

 

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Thousands of dollars

 

     Year ended December 31, 2011  
     Net
External
Sales
     Segment
Profit
    Intersegment
Transfers
 

Paint Stores Group

   $ 4,779,826       $ 645,743     

Consumer Group

     1,274,281         173,654      $ 2,090,668   

Global Finishes Group

     1,878,326         90,271        9,466   

Latin America Coatings Group

     828,451         75,494        38,751   

Administrative

     4,815         (243,614     10,120   
  

 

 

    

 

 

   

 

 

 
   $ 8,765,699       $ 741,548      $ 2,149,005   
  

 

 

    

 

 

   

 

 

 

 

     Year ended December 31, 2010  
     Net
External
Sales
     Segment
Profit
    Intersegment
Transfers
 

Paint Stores Group

   $ 4,381,238       $ 619,578     

Consumer Group

     1,297,731         203,974      $ 1,769,900   

Global Finishes Group

     1,417,142         64,675        3,640   

Latin America Coatings Group

     675,175         59,005        33,604   

Administrative

     5,138         (269,448     10,094   
  

 

 

    

 

 

   

 

 

 
   $ 7,776,424       $ 677,784      $ 1,817,238   
  

 

 

    

 

 

   

 

 

 

 

     Year ended December 31, 2009  
     Net
External
Sales
     Segment
Profit
    Intersegment
Transfers
 

Paint Stores Group

   $ 4,209,353       $ 600,176     

Consumer Group

     1,225,167         157,354      $ 1,715,207   

Global Finishes Group

     1,116,845         14,117        2,108   

Latin America Coatings Group

     536,630         50,897        28,282   

Administrative

     6,254         (199,727     10,091   
  

 

 

    

 

 

   

 

 

 
   $ 7,094,249       $ 622,817      $ 1,755,688   
  

 

 

    

 

 

   

 

 

 

Item 9.01.  Financial Statements and Exhibits.

 

  (d) Exhibits.

The following Exhibit is furnished with this Report:

 

Exhibit No.

  

Exhibit Description

99    Press Release of The Sherwin-Williams Company, dated January 26, 2012.

 

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

    THE SHERWIN-WILLIAMS COMPANY
January 26, 2012     By:        /s/  L.E. Stellato        
    L.E. Stellato
    Senior Vice President, General Counsel and Secretary

EXHIBIT INDEX

 

Exhibit No.

  

Exhibit Description

99    Press Release of The Sherwin-Williams Company, dated January 26, 2012.

 

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