Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

Sherwin-Williams Co., consolidated cash flow statement

US$ in thousands

12 months ended:	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Net income	1,864,400)	2,030,400)	1,541,300)	1,108,746)	1,772,262)
Loss from discontinued operations	—)	—)	—)	—)	41,540)
Depreciation	263,100)	268,000)	262,100)	278,169)	284,997)
Non-cash lease expense	400,700)	381,300)	370,800)	—)	—)
Amortization of intangible assets	309,500)	313,400)	312,800)	318,112)	206,764)
Loss on divestiture of business	111,900)	—)	—)	—)	—)
Amortization of inventory purchase accounting adjustments	—)	—)	—)	—)	54,924)
(Gain) loss on extinguishment of debt	(1,400)	21,300)	14,800)	—)	—)
Impairment of trademarks	—)	2,300)	122,100)	—)	2,022)
Amortization of credit facility and debt issuance costs	6,400)	7,200)	9,200)	12,133)	8,313)
Provisions for environmental-related matters	(4,000)	37,100)	23,000)	176,297)	15,443)
Deferred income taxes	(80,300)	(145,300)	(131,100)	(143,378)	(606,135)
Defined benefit pension plans net cost	6,800)	7,600)	43,100)	36,371)	18,153)
Stock-based compensation expense	97,700)	95,900)	101,700)	82,588)	90,292)
Decrease in non-traded investments	53,600)	84,800)	82,300)	72,453)	65,703)
(Gain) loss on sale or disposition of assets	(6,100)	(9,400)	16,100)	12,825)	5,422)
Other	(6,400)	(6,900)	10,200)	(14,779)	33,689)
(Increase) decrease in accounts receivable	(287,800)	10,300)	(73,200)	18,424)	(49,850)
(Increase) decrease in inventories	(228,100)	84,400)	(75,500)	(119,510)	(89,959)
Increase (decrease) in accounts payable	346,100)	227,200)	36,200)	113,786)	166,687)
Increase (decrease) in accrued taxes	(32,700)	99,200)	5,100)	2,717)	(20,878)
Increase (decrease) in accrued compensation and taxes withheld	(10,900)	197,700)	49,600)	4,640)	11,286)
(Increase) decrease in refundable income taxes	(38,500)	40,600)	(47,800)	20,092)	(15,520)
Other	(46,800)	(62,000)	(40,800)	89,560)	16,270)
Change in working capital accounts	(298,700)	597,400)	(146,400)	129,709)	18,036)
Change in operating lease liabilities	(401,400)	(371,400)	(368,400)	—)	—)
Costs incurred for environmental-related matters	(41,300)	(39,000)	(26,100)	(17,718)	(13,792)
Adjustments to reconcile net income to net operating cash	410,100)	1,244,300)	696,200)	942,782)	225,371)
Other	(29,900)	133,900)	83,800)	(107,828)	(113,665)
Net operating cash	2,244,600)	3,408,600)	2,321,300)	1,943,700)	1,883,968)
Capital expenditures	(372,000)	(303,800)	(328,900)	(250,957)	(222,767)
Acquisitions of businesses, net of cash acquired	(210,900)	—)	(77,300)	—)	(8,810,315)
Proceeds from divestiture of business	122,500)	—)	—)	—)	—)
Proceeds from sale of assets	14,800)	60,700)	6,900)	38,354)	47,246)
Other	(30,800)	(79,300)	(63,300)	(39,037)	(61,526)
Net investing cash	(476,400)	(322,400)	(462,600)	(251,640)	(9,047,362)
Net increase (decrease) in short-term borrowings	763,900)	(204,600)	(122,800)	(300,942)	356,320)
Proceeds from long-term debt	994,800)	999,000)	1,332,800)	—)	8,275,169)
Payments of long-term debt	(422,900)	(1,204,700)	(1,875,800)	(852,627)	(1,852,812)
Payments for credit facility and debt issuance costs	(11,500)	(10,000)	(13,600)	(5,185)	(49,376)
Payments of cash dividends	(587,100)	(488,000)	(420,800)	(322,934)	(319,029)
Proceeds from stock options exercised	192,800)	182,700)	154,600)	90,745)	143,579)
Treasury stock purchased	(2,752,300)	(2,446,300)	(778,800)	(613,312)	—)
Proceeds from treasury stock issued	11,700)	182,400)	—)	—)	—)
Proceeds from real estate financing transactions	—)	—)	7,200)	225,345)	—)
Other	(23,400)	(30,600)	(129,200)	32,257)	(39,761)
Net financing cash	(1,834,000)	(3,020,100)	(1,846,400)	(1,746,653)	6,514,090)
Effect of exchange rate changes on cash	4,900)	(1,300)	(6,000)	5,885)	(36,276)
Net increase (decrease) in cash and cash equivalents	(60,900)	64,800)	6,300)	(48,708)	(685,580)
Cash and cash equivalents at beginning of year	226,600)	161,800)	155,500)	204,213)	889,793)
Cash and cash equivalents at end of year	165,700)	226,600)	161,800)	155,505)	204,213)

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

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Cash flow statement item	Description	The company
Net operating cash	Amount of cash inflow (outflow) from operating activities, excluding discontinued operations. Operating activity cash flows include transactions, adjustments, and changes in value not defined as investing or financing activities.	Sherwin-Williams Co. net operating cash increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.
Net investing cash	Amount of cash inflow (outflow) of investing activities, excluding discontinued operations. Investing activity cash flows include making and collecting loans and acquiring and disposing of debt or equity instruments and property, plant, and equipment and other productive assets.	Sherwin-Williams Co. net investing cash increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.
Net financing cash	Amount of cash inflow (outflow) of financing activities, excluding discontinued operations. Financing activity cash flows include obtaining resources from owners and providing them with a return on, and a return of, their investment; borrowing money and repaying amounts borrowed, or settling the obligation; and obtaining and paying for other resources obtained from creditors on long-term credit.	Sherwin-Williams Co. net financing cash decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.

Sherwin-Williams Co. (NYSE:SHW)

Cash Flow Statement