SHERWIN WILLIAMS CO, 10-K filed on 2/19/2021
Annual Report
v3.20.4
Cover Page - USD ($)
 12 Months Ended
Dec. 31, 2020
Jan. 31, 2021
Jun. 30, 2020
Cover [Abstract]      
Document Type 10-K    
Document Period End Date Dec. 31, 2020    
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 $1.00    
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    
Entity Shell Company false    
Entity Public Float     $ 52,512,627,817
Entity Common Stock, Shares Outstanding   89,601,869  
Documents Incorporated by Reference Portions of our Proxy Statement for the 2021 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, 2020 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 2020    
Document Fiscal Period Focus FY    
Current Fiscal Year End Date --12-31    
v3.20.4
Statements of Consolidated Income - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Income Statement [Abstract]      
Net sales $ 18,361,700 $ 17,900,800 $ 17,534,500
Cost of goods sold 9,679,100 9,864,700 10,115,900
Gross profit $ 8,682,600 $ 8,036,100 $ 7,418,600
Percent to net sales 47.30% 44.90% 42.30%
Selling, general and administrative expenses $ 5,477,900 $ 5,274,900 $ 5,033,800
Percent to net sales 29.80% 29.50% 28.70%
Other general expense - net $ 27,700 $ 39,100 $ 189,100
Amortization 313,400 312,800 318,100
Impairment of trademarks 2,300 122,100 0
Interest expense 340,400 349,300 366,700
Interest and net investment income (3,600) (25,900) (5,200)
California litigation expense 0 (34,700) 136,300
Other expense - net 5,300 16,700 20,100
Income before income taxes 2,519,200 1,981,800 1,359,700
Income tax expense 488,800 440,500 251,000
Net income $ 2,030,400 $ 1,541,300 $ 1,108,700
Net income per share:      
Basic (in dollars per share) $ 22.45 $ 16.79 $ 11.92
Diluted (in dollars per share) $ 22.08 $ 16.49 $ 11.67
Weighted average shares outstanding:      
Basic (in shares) 90,425,861 91,803,528 92,992,457
Diluted (in shares) 91,942,623 93,446,842 94,988,070
v3.20.4
Statements of Consolidated Comprehensive Income - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Net income $ 2,030.4 $ 1,541.3 $ 1,108.7
Other comprehensive loss, net of tax:      
Foreign currency translation adjustments [1] (14.1) (49.8) (254.3)
Pension and other postretirement benefit adjustments:      
Amounts recognized in other comprehensive (loss) income [2] (19.4) (5.1) (13.5)
Amounts reclassified from other comprehensive (loss) income [3] 1.4 22.3 31.3
Pension and other postretirement benefit adjustments: (18.0) 17.2 17.8
Unrealized net gains on cash flow hedges:      
Amounts reclassified from other comprehensive loss [4] (6.7) (8.7) (6.2)
Other comprehensive loss, net of tax (38.8) (41.3) (242.7)
Comprehensive income $ 1,991.6 $ 1,500.0 $ 866.0
[1] The years ended December 31, 2020 and 2019 include unrealized losses of $(54.0) million, net of taxes, and unrealized gains of $1.1 million, net of taxes, respectively, related to net investment hedges.
[2] Net of taxes of $3.4 million, $1.3 million and $6.8 million in 2020, 2019 and 2018, respectively.
[3] Net of taxes of $(0.4) million, $(7.3) million and $(10.2) million in 2020, 2019 and 2018, respectively
[4] Net of taxes of $2.2 million, $2.8 million and $2.1 million in 2020, 2019 and 2018, respectively.
v3.20.4
Consolidated Balance Sheets - USD ($)
$ in Millions
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Current assets:      
Cash and cash equivalents $ 226.6 $ 161.8 $ 155.5
Accounts receivable, less allowance 2,078.1 2,088.9 2,018.8
Inventories 1,804.1 1,889.6 1,815.3
Other current assets 482.6 491.4 354.9
Total current assets 4,591.4 4,631.7 4,344.5
Property, plant and equipment, net 1,834.5 1,835.2 1,776.8
Goodwill 7,049.1 7,004.8 6,956.7
Intangible assets 4,471.2 4,734.5 5,201.6
Operating lease right-of-use assets 1,761.1 1,685.6
Deferred pension assets 53.1 43.0 270.7
Other assets 641.2 561.4 584.0
Total Assets 20,401.6 20,496.2 19,134.3
Current liabilities:      
Short-term borrowings 0.1 204.7 328.4
Accounts payable 2,117.8 1,876.3 1,799.4
Compensation and taxes withheld 752.7 552.7 504.5
Accrued taxes 183.5 85.7 80.8
Current portion of long-term debt 25.1 429.8 307.2
California litigation accrual 12.0 12.0 136.3
Current portion of operating lease liabilities 387.3 371.6
Other accruals 1,115.9 989.1 1,141.1
Total current liabilities 4,594.4 4,521.9 4,297.7
Long-term debt 8,266.9 8,050.7 8,708.1
Postretirement benefits other than pensions 275.6 263.0 257.6
Deferred income taxes 846.1 969.9 1,130.9
Long-term operating lease liabilities 1,434.1 1,370.7
Other long-term liabilities 1,373.7 1,196.7 1,009.3
Shareholders’ equity:      
Common stock - $1.00 par value: 89.6, 92.1, and 93.1 million shares outstanding at December 31, 2020, 2019 and 2018, respectively 89.9 119.4 118.4
Other capital 3,491.4 3,153.0 2,896.4
Retained earnings 844.3 7,366.9 6,246.5
Treasury stock, at cost (96.5) (5,836.5) (4,900.7)
Accumulated other comprehensive loss (718.3) (679.5) (629.9)
Total shareholders’ equity 3,610.8 4,123.3 3,730.7
Total Liabilities and Shareholders’ Equity $ 20,401.6 $ 20,496.2 $ 19,134.3
v3.20.4
Consolidated Balance Sheets (Parenthetical) - $ / shares
shares in Millions
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Shareholders’ equity:      
Common stock, par value (in dollars per share) $ 1.00 $ 1.00 $ 1.00
Common stock, shares outstanding (in shares) 89.6 92.1 93.1
v3.20.4
Statements of Consolidated Cash Flows - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Operating Activities      
Net income $ 2,030,400 $ 1,541,300 $ 1,108,700
Adjustments to reconcile net income to net operating cash:      
Depreciation 268,000 262,100 278,200
Non-cash lease expense 381,300 370,800
Amortization of intangible assets 313,400 312,800 318,100
Loss on extinguishment of debt 21,300 14,800
Impairment of trademarks 2,300 122,100 0
Amortization of credit facility and debt issuance costs 7,200 9,200 12,100
Provisions for environmental-related matters 37,100 23,000 176,300
Deferred income taxes (145,300) (131,100) (143,400)
Defined benefit pension plans net cost 7,600 43,100 36,400
Stock-based compensation expense 95,900 101,700 82,600
Decrease in non-traded investments 84,800 82,300 72,500
(Gain) loss on sale or disposition of assets (9,400) 16,100 12,800
Other (6,900) 10,200 (14,800)
Change in working capital accounts:      
Decrease (increase) in accounts receivable 10,300 (73,200) 18,400
Decrease (increase) in inventories 84,400 (75,500) (119,500)
Increase in accounts payable 227,200 36,200 113,800
Increase in accrued taxes 99,200 5,100 2,700
Increase in accrued compensation and taxes withheld 197,700 49,600 4,600
Decrease (increase) in refundable income taxes 40,600 (47,800) 20,100
(Decrease) increase in California litigation accrual (12,000) (59,600) 136,300
Other (50,000) 18,800 (46,700)
Change in operating lease liabilities (371,400) (368,400)
Costs incurred for environmental-related matters (39,000) (26,100) (17,700)
Other 133,900 83,800 (107,800)
Net operating cash 3,408,600 2,321,300 1,943,700
Investing Activities      
Capital expenditures (303,800) (328,900) (251,000)
Acquisitions of businesses, net of cash acquired (77,300)
Proceeds from sale of assets 60,700 6,900 38,400
Increase in other investments (79,300) (63,300) (39,000)
Net investing cash (322,400) (462,600) (251,600)
Financing Activities      
Net decrease in short-term borrowings (204,600) (122,800) (300,900)
Proceeds from long-term debt 999,000 1,332,800
Payments of long-term debt (1,204,700) (1,875,800) (852,600)
Payments for credit facility and debt issuance costs (10,000) (13,600) (5,200)
Payments of cash dividends (488,000) (420,800) (322,900)
Proceeds from stock options exercised 182,700 154,600 90,700
Treasury stock purchased (2,446,300) (778,800) (613,300)
Proceeds from treasury stock issued 182,400
Proceeds from real estate financing transactions 7,200 225,300
Other (30,600) (129,200) 32,200
Net financing cash (3,020,100) (1,846,400) (1,746,700)
Effect of exchange rate changes on cash (1,300) (6,000) 5,900
Net increase (decrease) in cash and cash equivalents 64,800 6,300 (48,700)
Cash and cash equivalents at beginning of year 161,800 155,500 204,200
Cash and cash equivalents at end of year 226,600 161,800 155,500
Taxes paid on income 437,200 407,500 292,200
Interest paid on debt $ 340,800 $ 336,100 $ 368,000
v3.20.4
Statements of Consolidated Shareholders' Equity - USD ($)
shares in Millions, $ in Millions
Total
Cumulative Effect, Period of Adoption, Adjustment
Common Stock
Other Capital
Retained Earnings
Retained Earnings
Cumulative Effect, Period of Adoption, Adjustment
Treasury Stock
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Loss
Cumulative Effect, Period of Adoption, Adjustment
Beginning balance at Dec. 31, 2017 $ 3,647.9 $ 0.0 $ 117.6 $ 2,723.2 $ 5,458.4 $ 2.3 $ (4,266.4) $ (384.9) $ (2.3)
Shareholders' Equity [Roll Forward]                  
Net income 1,108.7       1,108.7        
Other comprehensive loss (242.7)             (242.7)  
Treasury stock purchased (613.3)           (613.3)    
Stock-based compensation activity 152.2   0.8 172.4     (21.0)    
Other adjustments 0.8     0.8          
Cash dividends (322.9)       (322.9)        
Ending balance at Dec. 31, 2018 $ 3,730.7   118.4 2,896.4 6,246.5   (4,900.7) (629.9) (2.3)
Ending balance (ASU 2016-02) at Dec. 31, 2018   (8.4)       (8.4)      
Ending balance (ASU 2018-02) at Dec. 31, 2018   0.0       8.3     (8.3)
Shareholders' Equity [Roll Forward]                  
Accounting standards update [Extensible List] us-gaap:AccountingStandardsUpdate201802Member                
Net income $ 1,541.3       1,541.3        
Other comprehensive loss (41.3)             (41.3)  
Treasury stock purchased (778.8)           (778.8)    
Treasury stock transferred from defined benefit pension plan (131.8)           (131.8)    
Stock-based compensation activity 230.3   1.0 254.5     (25.2)    
Other adjustments 2.1     2.1          
Cash dividends (420.8)       (420.8)        
Ending balance at Dec. 31, 2019 $ 4,123.3 $ (3.0) $ 119.4 3,153.0 7,366.9 $ (3.0) (5,836.5) (679.5) $ (8.3)
Shareholders' Equity [Roll Forward]                  
Accounting standards update [Extensible List] us-gaap:AccountingStandardsUpdate201613Member                
Net income $ 2,030.4       2,030.4        
Other comprehensive loss (38.8)             (38.8)  
Treasury stock purchased (2,446.3)           (2,446.3)    
Treasury stock issued 182.4     61.6     120.8    
Treasury stock, retired (in shares)     (30.6)            
Treasury stock retired 0.0       (8,061.6)   8,092.2    
Stock-based compensation activity 250.8   $ 1.1 276.4     (26.7)    
Other adjustments 0.0     0.4 (0.4)        
Cash dividends (488.0)       (488.0)        
Ending balance at Dec. 31, 2020 $ 3,610.8   $ 89.9 $ 3,491.4 $ 844.3   $ (96.5) $ (718.3)  
Shareholders' Equity [Roll Forward]                  
Accounting standards update [Extensible List] us-gaap:AccountingStandardsUpdate201613Member                
v3.20.4
Statements of Consolidated Shareholders' Equity (Parenthetical) - $ / shares
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Statement of Stockholders' Equity [Abstract]      
Cash dividends (in dollars per share) $ 5.36 $ 4.52 $ 3.44
v3.20.4
Accumulated Other Comprehensive Loss
 12 Months Ended
Dec. 31, 2020
Statement of Other Comprehensive Income [Abstract]  
ACCUMULATED OTHER COMPREHENSIVE LOSS ACCUMULATED OTHER COMPREHENSIVE 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 AdjustmentsPension and Other Postretirement Benefits AdjustmentsUnrealized Net Gains on Available-for-Sale SecuritiesUnrealized Net Gains on Cash Flow HedgesTotal
Balance at January 1, 2018$(353.3)$(84.9)$2.3 $51.0 $(384.9)
Adjustment to initially adopt ASU 2016-01
(2.3)(2.3)
Amounts recognized in AOCI(254.3)(13.5)(267.8)
Amounts reclassified from AOCI31.3 (6.2)25.1 
Balance at December 31, 2018(607.6)(67.1)— 44.8 (629.9)
Reclassifications from AOCI to Retained earnings for adoption of ASU 2018-02
(19.3)11.0 (8.3)
Amounts recognized in AOCI(49.8)(5.1)(54.9)
Amounts reclassified from AOCI22.3 (8.7)13.6 
Balance at December 31, 2019(657.4)(69.2)— 47.1 (679.5)
Amounts recognized in AOCI(14.1)(19.4)(33.5)
Amounts reclassified from AOCI1.4 (6.7)(5.3)
Balance at December 31, 2020$(671.5)$(87.2)$— $40.4 $(718.3)
v3.20.4
Statements of Consolidated Comprehensive Income (Parenthetical) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Net actuarial gains (losses) and prior service costs arising during period, tax $ 3.4 $ 1.3 $ 6.8
Amortization of net actuarial gains (losses) and prior service costs included in net pension costs, tax (0.4) (7.3) (10.2)
Unrealized holding losses on cash flow hedges, amounts reclassified from other comprehensive loss, tax 2.2 2.8 $ 2.1
Net Investment Hedging      
Foreign currency translation adjustments $ (54.0) $ 1.1  
v3.20.4
Significant Accounting Policies
 12 Months Ended
Dec. 31, 2020
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
See Note 21 for further details.
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 Doubtful Accounts
Accounts receivable were recorded at the time of credit sales net of allowance for credit losses. The Company recorded an allowance for doubtful accounts of $53.5 million, $36.5 million and $45.9 million at December 31, 2020, 2019 and 2018, respectively, to reduce Accounts receivable to the net amount expected to be collected (estimated net realizable value).
Effective January 1, 2020, the Company adopted Accounting Standards Update (ASU) 2016-13, “Measurement of Credit Losses on Financial Instruments” (ASC 326) using the modified retrospective transition method, electing to not restate prior periods. This ASU replaced the incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. As a result of the transition method elected, the required comparative period disclosures are prepared in accordance with the incurred loss impairment methodology.
Under ASC 326, the Company reviews the collectibility of the Accounts receivable balance each reporting period and estimates the allowance 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 if a final determination of uncollectibility is made. All provisions for allowances for doubtful accounts are included in Selling, general and administrative expenses. See Notes 2 and 17 for further details.
Property, Plant and Equipment
Property, plant and equipment (including leasehold improvements) is stated on the basis of cost. Depreciation is provided by the straight-line method. 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. The major classes of assets and ranges of annual depreciation rates are:
Buildings
4.0% – 20.0%
Machinery and equipment
10.0% – 20.0%
Furniture and fixtures
6.7% – 33.3%
Automobiles and trucks
10.0% – 33.3%
Goodwill and Intangible Assets
Goodwill represents the cost in excess of fair value of net assets acquired in business combinations accounted for by the purchase method. Intangible assets include indefinite-lived trademarks, customer relationships and intellectual property. In accordance with the Goodwill and Other Intangibles Topic of the Financial Accounting Standards Board (FASB) Accounting Standards Codification (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 more likely than not occurred. Finite-lived intangible assets are amortized on a straight-line basis over the expected period of benefit, which ranges primarily from 15 to 20 years. See Note 5 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 whenever events or changes in circumstances indicate that the carrying amount may not be recoverable or the useful life has changed. See Note 5 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 2020, 2019, and 2018, primarily to hedge against value changes in foreign currency. There were no material foreign currency option and forward contracts outstanding at December 31, 2020, 2019 and 2018. See Note 18 for further details.
The Company also entered into cross currency swap contracts to hedge its net investment in European operations in 2020 and 2019. These contracts qualified for and were designated as net investment hedges as permitted 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 consolidated statement of cash flows. See Note 15 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. 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 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 amounts of the investments, included in Other assets, were $198.2 million, $176.2 million and $181.2 million at December 31, 2020, 2019 and 2018, respectively. The liabilities recorded on the balance sheets for estimated future capital contributions to the investments were $216.3 million, $174.4 million and $183.0 million at December 31, 2020, 2019 and 2018, respectively.
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 $51.3 million, $61.2 million and $65.6 million at December 31, 2020, 2019 and 2018, 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 2020, 2019 and 2018, including customer satisfaction settlements during the year, were as follows:
202020192018
Balance at January 1$42.3 $57.1 $151.4 
Charges to expense38.1 32.5 31.7 
Settlements(37.1)(47.3)(57.8)
Divestiture and other adjustments (68.2)
Balance at December 31$43.3 $42.3 $57.1 
Warranty accruals acquired in connection with the Valspar acquisition include warranties for certain products under extended furniture protection plans. The decrease in the accrual for product warranty claims in the year ended December 31, 2018 was primarily due to the divestiture of the furniture protection plan business in the third quarter of 2018.
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 recognition of a plan’s funded status as an asset for overfunded plans and as a liability for unfunded or underfunded plans. See Note 7 for further details.
Environmental Matters
Capital expenditures for ongoing environmental compliance measures were recorded in Property, plant and equipment, and related expenses were 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 were 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 included 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 9 and 18 for further details.
ESOP
The Company accounts for the Employee Stock Purchase and Savings Plan, its employee stock ownership plan (ESOP), in accordance with the Employee Stock Ownership Plans Subtopic of the Compensation – Stock Ownership Topic of the ASC. The Company recognized compensation expense for amounts contributed to the ESOP. See Note 12 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 13 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 were 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 were 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 were 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 and translated the local currency asset and liability accounts at year-end exchange rates while income and expense accounts were translated at average exchange rates. The resulting translation adjustments were included in accumulated other comprehensive income (loss) (AOCI), a component of Shareholders’ equity.
Revenue Recognition
The Company recognized revenue when performance obligations under the terms of the agreement were satisfied. This generally occurs with the transfer of control of our products to the customer. Collectibility of amounts recorded as revenue was probable at the time of recognition. See Note 17 for further details.
Customer and Vendor Consideration
The Company offered certain customers rebate and sales incentive programs which were classified as reductions in net sales. Such programs were in the form of volume rebates, rebates that constituted a percentage of sales or rebates for attaining certain sales goals. The Company received consideration from certain suppliers of raw materials in the form of volume rebates or rebates that constituted a percentage of purchases. These rebates were 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
Included in Costs of goods sold were costs for materials, manufacturing, distribution and related support. Distribution costs included 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 Costs of goods sold were total technical expenditures, which included research and development costs, quality control, product formulation expenditures and other similar items. Research and development costs included in technical expenditures were $97.1 million, $103.1 million and $51.9 million for 2020, 2019 and 2018, respectively.
Selling, General and Administrative Expenses
Selling costs included advertising expenses, marketing costs, employee and store costs and sales commissions. The cost of advertising was expensed as incurred. The Company incurred $363.4 million, $355.2 million and $357.8 million in advertising costs during 2020, 2019 and 2018, respectively. General and administrative expenses included human resources, legal, finance and other support and administrative functions.
Earnings Per Share
Common stock held in a revocable trust (see Note 11) was not included in outstanding shares for basic or diluted income per share calculations. Basic and diluted net income per share were calculated using the treasury stock method in accordance with the Earnings Per Share Topic of the ASC. Basic net income per share amounts were computed based on the weighted-average number of shares outstanding during the year. Diluted net income per share amounts were computed based on the weighted-average number of shares outstanding plus all dilutive securities potentially outstanding during the year. See Note 20 for further details.
Reclassifications
Certain amounts in the consolidated financial statements and notes to the consolidated financial statements for 2018 and 2019 have been reclassified to conform to the 2020 presentation.
v3.20.4
Recently Issued Accounting Pronouncements
 12 Months Ended
Dec. 31, 2020
Accounting Policies [Abstract]  
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
Adopted in 2020
Effective January 1, 2020, the Company adopted ASU 2016-13, “Measurement of Credit Losses on Financial Instruments” (ASC 326). This ASU replaced the incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. In addition, new disclosures are required. The Company adopted ASU 2016-13 using the modified retrospective transition method. The adoption of ASU 2016-13 did not result in a material cumulative-effect adjustment to the opening balance of retained earnings at January 1, 2020 and did not have a material impact on the Company’s results of operations, financial condition or liquidity. See Note 17 for additional information.
Not Yet Adopted
In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” The ASU simplifies the accounting for income taxes by removing certain exceptions to the general principles in ASC 740. The amendments also improve consistent application of and simplify U.S. GAAP for other areas of ASC 740 by clarifying and amending existing guidance. The standards update is effective for fiscal years and interim periods beginning after December 15, 2020, with early adoption permitted. The adoption of ASU 2019-12 is not expected to have a material impact on the Company’s financial position, results of operations or cash flows.
v3.20.4
Acquisitions and Divestitures
 12 Months Ended
Dec. 31, 2020
Business Combinations [Abstract]  
ACQUISITIONS AND DIVESTITURES ACQUISITIONS AND DIVESTITURES
During 2019, the Company completed the acquisition of a domestic packaging company and two European coatings companies for an aggregate purchase price of $84.4 million, including amounts withheld as security for certain representations, warranties and obligations of the sellers. These acquisitions support the growth of the Performance Coatings Group by providing new technologies and an expanded global platform. The acquisitions have been accounted for as business combinations. The results of operations of these companies have been included in the consolidated financial statements since the date of acquisition. Pro forma results of operations have not been presented as the impact on the Company’s consolidated financial results was not material.
On February 17, 2021, the Company signed a definitive agreement to divest Wattyl, an Australian and New Zealand manufacturer and seller of architectural and protective paint and coatings with annual revenue of approximately $200 million and 750 employees. The divestiture will allow the Company to focus its resources on global opportunities which align with our long-term strategies. The transaction is expected to close during the first quarter of 2021, subject to customary closing conditions. In connection with the sale, we expect to incur a loss in the first quarter of 2021 that is not material.
v3.20.4
Inventories
 12 Months Ended
Dec. 31, 2020
Inventory Disclosure [Abstract]  
INVENTORIES INVENTORIES
Included in Inventories were the following:
202020192018
Finished goods$1,427.6 $1,509.6 $1,426.4 
Work in process and raw materials376.5 380.0 388.9 
Inventories$1,804.1 $1,889.6 $1,815.3 
Inventories were stated at the lower of cost or net realizable value, with cost primarily determined on the last-in, first-out (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.
202020192018
Percentage of total inventories on LIFO72 %72 %72 %
Excess of FIFO over LIFO$312.1$339.8$377.1
The Company recorded a reserve for obsolescence of $125.8 million, $115.4 million and $105.9 million at December 31, 2020, 2019 and 2018, respectively, to reduce Inventories to their estimated net realizable value.
v3.20.4
Goodwill, Intangible and Long-Lived Assets
 12 Months Ended
Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL, INTANGIBLE AND LONG-LIVED ASSETS GOODWILL, INTANGIBLE AND LONG-LIVED ASSETS
Included in Property, plant and equipment, net were the following:
202020192018
Land$283.5 $242.1 $244.6 
Buildings1,098.0 1,044.2 979.1 
Machinery and equipment3,026.8 2,952.1 2,668.5 
Construction in progress140.5 144.0 147.9 
Property, plant and equipment, gross4,548.8 4,382.4 4,040.1 
Less allowances for depreciation2,714.3 2,547.2 2,263.3 
Property, plant and equipment, net$1,834.5 $1,835.2 $1,776.8 
In accordance with the Property, Plant and Equipment Topic of the ASC, whenever events or changes in circumstances indicate that the carrying value of long-lived assets may not be recoverable or the useful life may have changed, impairment tests are to be performed. Subsequent to the adoption of ASU 2016-02, right-of-use assets recognized in the consolidated balance sheet are considered to be long-lived assets. Undiscounted cash flows were used to calculate the recoverable value of long-lived assets to determine if such assets were not recoverable. If the carrying value of the assets was deemed to not be recoverable, the impairment to be recognized is the amount by which the carrying value of the assets exceeds the estimated fair value of the assets as determined in accordance with the Fair Value Topic of the ASC. No material impairments of long-lived assets were recorded in 2020, 2019 or 2018.
During 2019, the Company acquired three companies which resulted in the recognition of goodwill of $14.2 million and finite-lived intangibles of $34.9 million. See Note 3 for additional information related to the acquisitions.
In accordance with the Goodwill and Other Intangibles Topic of the ASC, goodwill and indefinite-lived intangible assets are tested for impairment annually, and interim impairment tests are performed whenever an event occurs or circumstances change that indicate an impairment has more likely than not occurred. October 1 has been established for the annual impairment review. At the time of impairment testing, values are estimated separately for goodwill and trademarks with indefinite lives using a valuation model, incorporating discount rates commensurate with the risks involved for each group of assets. An optional qualitative assessment may alleviate the need to perform the quantitative goodwill impairment test when impairment is unlikely.
The annual impairment review performed as of October 1, 2020 resulted in trademark impairment of $2.3 million in the Performance Coatings Group related to lower than anticipated sales of an acquired brand and no goodwill impairment.
During the fourth quarter of 2019, the Company performed a strategic review of its business lines as part of the annual planning cycle. Decisions were made during this review related to certain brands which resulted in a reduction to the long-term forecasted net sales for certain indefinite-lived trademarks acquired in the Valspar acquisition within the Performance Coatings and Consumer Brands Groups. As a result of the strategic decisions made at that time and in conjunction with the annual impairment review performed as of October 1, 2019, the Company recognized non-cash pre-tax impairment charges totaling $122.1 million related to certain recently acquired indefinite-lived trademarks. These charges included impairments totaling $117.0 million in the Performance Coatings Group and $5.1 million in the Consumer Brands Group. In the Performance Coatings Group, $75.6 million related to trademarks in North America directly associated with strategic decisions made to rebrand industrial products to the Sherwin-Williams® brand name, $25.7 million related to trademarks in the Asia Pacific region as a direct result of recent performance that reduced the long-term forecasted net sales and $15.7 million related to other recently acquired trademarks in various regions.The annual impairment review did not result in any goodwill impairment.
The annual impairment reviews performed as of October 1, 2018 did not result in any goodwill or trademark impairment.
A summary of changes in the Company’s carrying value of goodwill by Reportable Segment is as follows:
GoodwillThe Americas GroupConsumer Brands
Group		Performance Coatings
Group		Consolidated
Totals
Balance at January 1, 2018 (1)
$2,555.6 $2,233.2 $2,025.5 $6,814.3 
Acquisition adjustments(273.9)(413.3)900.8 213.6 
Currency and other adjustments(25.1)(66.1)20.0 (71.2)
Balance at December 31, 2018 (1)
2,256.6 1,753.8 2,946.3 6,956.7 
Acquisitions14.2 14.2 
Currency and other adjustments0.1 33.8 33.9 
Balance at December 31, 2019 (1)
2,256.6 1,753.9 2,994.3 7,004.8 
Currency and other adjustments0.7 43.6 44.3 
Balance at December 31, 2020 (1)
$2,256.6 $1,754.6 $3,037.9 $7,049.1 
(1)    Net of accumulated impairment losses of $19.4 ($10.5 million in The Americas Group, $8.1 million in the Consumer Brands Group and $0.8 million in the Performance Coatings Group).
A summary of the Company’s carrying value of intangible assets is as follows: 
Finite-Lived Intangible Assets
Trademarks
With 
Indefinite
Lives (1)
Total
Intangible
Assets
SoftwareCustomer RelationshipsIntellectual PropertyAll OtherSubtotal
December 31, 2020
Gross$166.8 $3,181.6 $1,730.3 $306.8 $5,385.5 
Accumulated amortization(142.8)(804.7)(310.0)(273.4)(1,530.9)
Net value$24.0 $2,376.9 $1,420.3 $33.4 $3,854.6 $616.6 $4,471.2 
December 31, 2019
Gross$166.4 $3,062.8 $1,730.3 $312.9 $5,272.4 
Accumulated amortization(134.8)(527.5)(223.5)(260.5)(1,146.3)
Net value$31.6 $2,535.3 $1,506.8 $52.4 $4,126.1 $608.4 $4,734.5 
December 31, 2018
Gross$165.2 $3,103.7 $1,730.3 $315.0 $5,314.2 
Accumulated amortization(127.3)(326.3)(137.0)(256.2)(846.8)
Net value$37.9 $2,777.4 $1,593.3 $58.8 $4,467.4 $734.2 $5,201.6 
(1)    Trademarks with indefinite lives as of December 31, 2020 is net of accumulated impairment losses of $124.4 million. Trademarks with indefinite lives as of December 31, 2019 is net of accumulated impairment losses of $122.1 million. There were no material accumulated impairment losses as of December 31, 2018.
Amortization of finite-lived intangible assets is estimated as follows for the next five years: $308.8 million in 2021, $306.4 million in 2022, $303.7 million in 2023, $301.0 million in 2024 and $297.3 million in 2025.
Although the Company believes its estimates of fair value related to reporting units and indefinite-lived trademarks 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.
v3.20.4
Debt
 12 Months Ended
Dec. 31, 2020
Debt Disclosure [Abstract]  
DEBT DEBT
The table below summarizes the carrying value of the Company’s outstanding debt, net of capitalized debt issuance costs:
Due Date202020192018
3.45% Senior Notes
2027$1,488.6 $1,486.8 $1,485.0 
4.50% Senior Notes
20471,230.8 1,230.1 1,229.4 
2.95% Senior Notes
2029791.7 790.7 
3.80% Senior Notes
2049542.8 542.5 
3.125% Senior Notes
2024497.7 497.0 496.3 
2.30% Senior Notes
2030495.8 
3.30% Senior Notes
2050493.7 
4.20% Senior Notes
2022405.7 411.3 416.8 
3.45% Senior Notes
2025398.3 398.0 397.6 
4.55% Senior Notes
2045394.5 394.3 394.1 
3.95% Senior Notes
2026357.8 359.3 360.8 
4.00% Senior Notes
2042296.6 296.4 296.3 
2.75% Senior Notes
2022259.6 757.1 1,242.9 
3.30% Senior Notes
2025249.5 249.4 249.3 
4.40% Senior Notes
2045239.6 239.2 238.7 
7.375% Debentures
2027119.1 119.1 119.0 
0.92% Fixed Rate Loan
202124.4 22.4 22.9 
7.45% Debentures
20973.5 3.5 3.5 
0.53% to 8.00% Promissory Notes
Through 20272.3 2.9 3.3 
Floating Rate Loan2021251.9 257.4 
2.25% Senior Notes
2020428.6 1,496.0 
7.25% Senior Notes
2019306.0 
Total (1)
8,292.0 8,480.5 9,015.3 
Less amounts due within one year25.1 429.8 307.2 
Long-term debt$8,266.9 $8,050.7 $8,708.1 
(1)     Net of capitalized debt issuance costs of $52.9 million, $50.6 million and $49.1 million at December 31, 2020, 2019 and 2018, respectively.
Maturities of long-term debt are as follows for the next five years: $25.1 million in 2021; $661.0 million in 2022; $0.3 million in 2023, $500.2 million in 2024 and $650.1 million in 2025. Interest expense on long-term debt was $320.5 million, $321.3 million and $343.1 million for 2020, 2019 and 2018, respectively.
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.
In March 2020, the Company issued $500.0 million of 2.30% Senior Notes due May 2030 and $500.0 million of 3.30% Senior Notes due May 2050 in a public offering. The net proceeds from the issuance of these notes were used to repurchase a portion of the 2.75% Senior Notes due 2022 and redeem the 2.25% Senior Notes due May 2020. The repurchase of the 2.75% Senior Notes due 2022 during the first quarter of 2020 resulted in a loss of $21.3 million recorded in Other expense - net. See Note 18.
In August 2019, the Company issued $800.0 million of 2.95% Senior Notes due 2029 and $550.0 million of 3.80% Senior Notes due 2049 in a public offering. The net proceeds from the issuance of these are being used for general corporate purposes.
In August 2019, the Company repurchased $1.010 billion of its 2.25% Senior Notes due 2020 and $490.0 million of its 2.75% Senior Notes due 2022. These repurchases resulted in a loss of $14.8 million recorded in Other expense - net. See Note 18.
In June 2019, the Company repurchased $60.9 million of its 2.25% Senior Notes due May 2020. This repurchase resulted in an insignificant gain.
Short-Term Borrowings
On July 19, 2018, the Company and three of its wholly-owned subsidiaries, Sherwin-Williams Canada, Inc., Sherwin-Williams Luxembourg S.à r.l and Sherwin-Williams UK Holding Limited (all together with the Company, the Borrowers), entered into a new five-year $2.000 billion credit agreement. This credit agreement may be used for general corporate purposes, including the financing of working capital requirements, and replaced a credit agreement dated July 16, 2015, as amended, which was terminated. This credit agreement allows the Company to extend the maturity of the facility with two one-year extension options and the Borrowers to increase the aggregate amount of the facility to $2.750 billion, both of which are subject to the discretion of each lender. In addition, the Borrowers may request letters of credit in an amount of up to $250.0 million. On October 8, 2019, the Company amended this credit agreement to, among other things, extend the maturity date to October 8, 2024. At December 31, 2020, 2019 and 2018, there were no short-term borrowings under this credit agreement.
On May 6, 2016, the Company entered into a five-year credit agreement, subsequently amended on multiple dates to extend the maturity of the agreement. This credit agreement gives the Company the right to borrow and to obtain the issuance, renewal, extension and increase of a letter of credit up to an aggregate availability of $875.0 million at December 31, 2020. In September 2017, the Company entered into an additional five-year letter of credit agreement, subsequently amended on multiple dates to extend the maturity of the agreement, with an aggregate availability of $625.0 million at December 31, 2020. Both of these credit agreements are being used for general corporate purposes. At December 31, 2020, 2019 and 2018, there were no borrowings outstanding under these credit agreements.
There were no borrowings outstanding under the Company’s domestic commercial paper program at December 31, 2020. Borrowings outstanding under the Company’s domestic commercial paper program at December 31, 2019 and 2018 were $191.9 million and $291.4 million, respectively with a weighted average interest rate of 2.1% and 3.0%, respectively. Borrowings outstanding under various foreign programs were $0.1 million, $12.8 million and $37.0 million at December 31, 2020, 2019 and 2018, respectively with a weighted average interest rate of 0.2%, 4.3% and 9.3%, respectively.
v3.20.4
Pension, Health Care and Other Postretirement Benefits
 12 Months Ended
Dec. 31, 2020
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 plans and certain health care and life insurance benefits to domestic active employees and eligible retirees. In accordance with the Retirement Benefits Topic of the ASC, the Company recognizes 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).
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 27,782, 27,030 and 26,323 active employees entitled to receive benefits under these plans at December 31, 2020, 2019 and 2018, respectively. The cost of these benefits for active employees, which includes claims incurred and claims incurred but not reported, amounted to $298.8 million, $301.6 million and $298.8 million for 2020, 2019 and 2018, respectively.
Defined Contribution Pension Plans
The Company’s annual contribution for its domestic defined contribution pension plan was $77.0 million, $72.7 million and $65.2 million for 2020, 2019 and 2018, 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 $22.5 million, $24.5 million and $19.5 million for 2020, 2019 and 2018, 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
In 2018, the Company’s domestic defined benefit pension plan was split into two separate overfunded plans: one that will continue to operate, and one that was frozen and subsequently terminated during 2018 (Terminated Plan). Active participants in the Terminated Plan were moved to the Company’s domestic defined contribution plan (Qualified Replacement Plan). The Company settled the liabilities of the Terminated Plan through a combination of (i) lump sum payments to eligible participants who elected to receive them and (ii) the purchase of annuity contracts for participants who either did not elect lump sums or were already receiving benefit payments. The lump sum payments were paid in December 2018 and resulted in a settlement charge of $37.6 million in 2018. During the first quarter of 2019, the Company purchased annuity contracts to settle the remaining liabilities of the Terminated Plan. The annuity contract purchase resulted in a settlement charge of $32.4 million in the first quarter of 2019. The remaining surplus of the Terminated Plan is being used, as prescribed in the applicable regulations, to fund Company contributions to the Qualified Replacement Plan. During 2019, the Company transferred the remaining surplus of $242.2 million to a suspense account held within a trust for the Qualified Replacement Plan. This amount included $131.8 million of Company common stock (300,000 shares). The shares are treated as treasury stock in accordance with ASC 715. See Note 11. The remaining surplus consists of investment funds held at fair value. See Note 16.
At December 31, 2020, the domestic defined benefit pension plan was overfunded, with a projected benefit obligation of $118.6 million, fair value of plan assets of $144.3 million and excess plan assets of $25.7 million. The plan was funded in accordance with all applicable regulations at December 31, 2020. At December 31, 2019, the domestic defined benefit pension plan was overfunded, with a projected benefit obligation of $103.0 million, fair value of plan assets of $125.9 million and excess plan assets of $22.9 million. At December 31, 2018, the domestic defined benefit pension plans were overfunded, with a projected benefit obligation of $524.7 million, fair value of plan assets of $777.0 million and excess plan assets of $252.3 million.
The Company has thirty-one foreign defined benefit pension plans. At December 31, 2020, 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 $231.5 million, $259.9 million, $149.6 million and $110.3 million, respectively.
The Company expects to make the following benefit payments for all domestic and foreign defined benefit pension plans: $15.9 million in 2021; $14.1 million in 2022; $15.7 million in 2023; $16.2 million in 2024; $16.7 million in 2025; and $95.2 million in 2026 through 2030. The Company expects to contribute $5.2 million to the foreign plans in 2021.
The estimated net actuarial losses and prior service costs for the defined benefit pension plans that are expected to be amortized from AOCI into the net pension costs in 2021 are $1.5 million and $1.0 million, respectively.
The following table summarizes the components of the net pension costs and AOCI related to the defined benefit pension plans:
Domestic
Defined Benefit Pension Plans		Foreign
Defined Benefit Pension Plans
202020192018202020192018
Net pension cost:
Service cost$4.4 $3.5 $7.3 $6.8 $5.9 $8.2 
Interest cost3.2 4.8 32.2 6.9 9.4 9.5 
Expected return on plan assets(6.3)(5.3)(53.0)(10.0)(10.3)(10.8)
Amortization of prior service cost1.4 1.4 3.5 
Amortization of actuarial losses1.0 1.0 1.5 
Ongoing pension cost (credit)2.7 4.4 (10.0)4.7 6.0 8.4 
  Settlement costs (credits)32.4 37.6 0.2 0.3 (0.4)
Curtailment cost0.8 
Net pension cost2.7 36.8 28.4 4.9 6.3 8.0 
Other changes in plan assets and projected benefit
obligation recognized in AOCI (before taxes):
Net actuarial losses (gains) arising during the year(4.5)(22.0)29.9 7.0 13.2 (5.1)
Prior service cost (credit) arising during the year0.2 3.1 4.6 (0.5)
Amortization of actuarial losses(1.0)(1.0)(1.5)
Amortization of prior service cost(1.4)(1.4)(3.5)
(Loss) gain recognized for settlement(32.4)(37.6)(0.2)(0.3)0.4 
Prior service cost recognized for curtailment(0.8)
(Gain) arising from curtailment(0.8)(0.7)
Exchange rate gain (loss) recognized during the year
1.7 1.0 (2.0)
Total recognized in AOCI(5.7)(52.7)(8.2)7.0 12.2 (8.2)
Total recognized in net pension cost and AOCI
$(3.0)$(15.9)$20.2 $11.9 $18.5 $(0.2)
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 - 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 35% – 65% equity securities and 35% – 55% fixed income securities.
The following tables summarize the fair value of the defined benefit pension plan assets at December 31, 2020, 2019 and 2018. The presentation is in accordance with the Retirement Benefits Topic of the ASC.
Fair value at December 31, 2020Quoted Prices
in Active Markets for Identical
Assets
(Level 1)		Significant 
Other
Observable 
Inputs
(Level 2)		Significant
Unobservable 
Inputs
(Level 3)
Investments at fair value:
Equity investments (1)
$134.9 $13.9 $121.0 
Fixed income investments (2)
182.3 24.3 158.0 
Other assets (3)
39.2 39.2 
Total investments in fair value hierarchy356.4 $38.2 $318.2 
Investments measured at NAV or its equivalent (4)
106.1 
Total investments$462.5 
Fair value at December 31, 2019Quoted Prices in Active Markets for Identical
Assets
(Level 1)		Significant 
Other
Observable 
Inputs
(Level 2)		Significant
Unobservable Inputs
(Level 3)
Investments at fair value:
Equity investments (1)
$115.7 $7.9 $107.8 
Fixed income investments (2)
173.4 29.7 143.7 
Other assets (3)
36.6 36.6 
Total investments in fair value hierarchy325.7 $37.6 $288.1 
Investments measured at NAV or its equivalent (4)
88.3 
Total investments$414.0 
Fair value at December 31, 2018Quoted Prices in Active Markets for Identical
Assets
(Level 1)		Significant 
Other
Observable 
Inputs
(Level 2)		Significant
Unobservable Inputs
(Level 3)
Investments at fair value:
Equity investments (1)
$215.8 $124.0 $91.8 
Fixed income investments (2)
609.9 462.8 147.1 
Other assets (3)
38.4 38.4 
Total investments in fair value hierarchy864.1 $586.8 $277.3 
Investments measured at NAV or its equivalent (4)
166.4 
Total investments$1,030.5 
(1)    This category includes actively managed equity assets that track primarily to the S&P 500.
(2)    This category includes government and corporate bonds that track primarily to the Barclays Capital Aggregate 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.
As of December 31, 2018 there were 300,000 shares of the Company’s common stock with a market value of $118.0 million included as equity investments in the domestic defined benefit pension plan assets. There were no shares of the Company’s common stock included as equity investments in the domestic defined benefit pension plan assets at December 31, 2020 and December 31, 2019 due to the wind-up of the Terminated Plan.
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
Defined Benefit Pension Plans		Foreign
Defined Benefit Pension Plans
202020192018202020192018
Accumulated benefit obligations
at end of year
$114.2 $97.2 $521.0 $370.2 $331.7 $280.0 
Projected benefit obligations:
Balances at beginning of year$103.0 $524.7 $916.2 $360.7 $315.8 $349.6 
Service cost4.4 3.5 7.3 6.8 5.9 8.2 
Interest cost3.2 4.8 32.2 6.9 9.4 9.5 
Actuarial losses (gains)11.0 4.4 (13.6)25.3 36.2 (21.0)
Contributions and other0.2 3.1 3.8 (0.1)0.7 1.6 
Settlements(429.3)(379.1)(4.3)(6.6)(6.3)
Effect of foreign exchange16.0 7.8 (16.3)
Benefits paid(3.2)(8.2)(42.1)(10.2)(8.5)(9.5)
Balances at end of year118.6 103.0 524.7 401.1 360.7 315.8 
Plan assets:
Balances at beginning of year125.9 777.0 1,188.6 288.1 253.5 280.0 
Actual returns on plan assets21.6 31.7 9.6 28.9 33.3 (4.9)
Contributions and other5.9 7.7 8.3 
Settlements(429.3)(379.1)(4.3)(6.6)(6.3)
Transfer related to plan termination(245.3)
Effect of foreign exchange9.8 8.7 (14.1)
Benefits paid(3.2)(8.2)(42.1)(10.2)(8.5)(9.5)
Balances at end of year144.3 125.9 777.0 318.2 288.1 253.5 
Excess (deficient) plan assets over
projected benefit obligations
$25.7 $22.9 $252.3 $(82.9)$(72.6)$(62.3)
Assets and liabilities recognized in the
Consolidated Balance Sheets:
Deferred pension assets$25.7 $22.9 $252.3 $27.4 $20.1 $18.4 
Other accruals(2.5)(2.3)(2.7)
Other long-term liabilities(107.8)(90.4)(78.0)
$25.7 $22.9 $252.3 $(82.9)$(72.6)$(62.3)
Amounts recognized in AOCI:
Net actuarial gains (losses)$2.5 $(2.0)$(56.4)$(45.4)$(37.9)$(25.7)
Prior service (costs) credits(6.2)(7.4)(5.7)0.5 
$(3.7)$(9.4)$(62.1)$(44.9)$(37.9)$(25.7)
Weighted-average assumptions used to
determine projected benefit obligations:
Discount rate2.85 %3.44 %3.60 %1.63 %2.17 %3.04 %
Rate of compensation increase3.00 %3.00 %3.17 %2.91 %3.09 %3.65 %
Weighted-average assumptions used to
determine net pension cost:
Discount rate3.44 %3.60 %3.60 %2.17 %3.04 %2.73 %
Expected long-term rate of
return on assets
5.00 %5.00 %5.00 %3.62 %4.09 %3.84 %
Rate of compensation increase3.00 %3.17 %3.33 %3.09 %3.65 %3.69 %
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 3,465, 3,481 and 3,498 retired employees entitled to receive such postretirement benefits at December 31, 2020, 2019 and 2018, respectively.
The following table summarizes the obligation and the assumptions used for other postretirement benefits:
Other Postretirement Benefits
202020192018
Benefit obligation:
Balance at beginning of year - unfunded$280.5 $274.6 $290.8 
Service cost1.5 1.5 2.0 
Interest cost7.6 11.2 10.2 
Actuarial loss (gain)19.7 12.8 (9.0)
Plan amendments1.0 (0.1)
Benefits paid(18.7)(19.6)(19.3)
Balance at end of year - unfunded$291.6 $280.5 $274.6 
Liabilities recognized in the Consolidated Balance Sheets:
Other accruals$(16.0)$(17.5)$(17.0)
Postretirement benefits other than pensions(275.6)(263.0)(257.6)
$(291.6)$(280.5) $(274.6)
Amounts recognized in AOCI:
Net actuarial losses$(62.8)$(45.1)$(32.8)
Prior service (cost) credits(0.9)1.1 6.1 
$(63.7)$(44.0)$(26.7)
Weighted-average assumptions used to determine benefit obligation:
Discount rate2.49 %3.22 %4.21 %
Health care cost trend rate - pre-656.06 %6.38 %6.69 %
Health care cost trend rate - post-655.13 %5.25 %4.94 %
Prescription drug cost increases8.25 %9.00 %9.75 %
Employer Group Waiver Plan (EGWP) trend rate8.25 %9.00 %9.75 %
Weighted-average assumptions used to determine net periodic benefit cost:
Discount rate3.22 %4.21 %3.61 %
Health care cost trend rate - pre-656.38 %6.69 %7.00 %
Health care cost trend rate - post-655.25 %4.94 %5.00 %
Prescription drug cost increases9.00 %9.75 %11.00 %
The following table summarizes the components of the net periodic benefit cost and AOCI related to postretirement benefits other than pensions:
Other Postretirement Benefits
202020192018
Net periodic benefit cost:
Service cost$1.5 $1.5 $2.0 
Interest cost7.6 11.2 10.2 
Amortization of actuarial losses2.0 0.5 2.3 
Amortization of prior service credit(1.1)(5.0)(6.6)
Net periodic benefit cost 10.0 8.2 7.9 
Other changes in projected benefit obligation recognized in
AOCI (before taxes):
Net actuarial loss (gain) arising during the year19.7 12.8 (9.0)
Prior service cost (credit) arising during the year0.9 (0.1)
Amortization of actuarial losses(2.0)(0.5)(2.3)
Amortization of prior service credit1.1 5.0 6.6 
Total recognized in AOCI19.7 17.3 (4.8)
Total recognized in net periodic benefit cost and AOCI$29.7 $25.5 $3.1 
The estimated net actuarial losses and prior service costs for other postretirement benefits that are expected to be amortized from AOCI into net periodic benefit cost in 2021 are $4.7 million and $0.3 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 2021 both decrease in each successive year until reaching 4.5% in 2027.
The Company expects to make retiree health care benefit cash payments as follows:
2021$16.1 
202216.8 
202317.0 
202418.3 
202518.3 
2026 through 203084.8 
Total expected benefit cash payments$171.3 
v3.20.4
Leases
 12 Months Ended
Dec. 31, 2020
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 Americas 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 balance sheet and expense is recognized on a straight-line basis over the lease term. Most leases do not contain an implicit discount rate. Therefore, the Company’s estimated incremental borrowing rate based on information available at the time of lease inception is used to discount lease payments to present value. Effective January 1, 2019, the Company adopted ASC 842 using the modified retrospective transition method, electing to not restate prior periods. As a result, the required comparative period disclosures for the period ended December 31, 2018, are reported in accordance with the previous accounting standard, ASC 840.
Additional lease information is summarized below:
202020192018
Operating lease cost (1)
$464.5 $452.9 $552.7 
Short-term lease cost (2)
41.1 39.7 
Variable lease cost80.7 73.6 68.2 
Operating cash outflows from operating leases (2)
$446.1 $430.9 
Leased assets obtained in exchange for new operating lease liabilities (2)
$469.9 $346.4 
Weighted average remaining lease term (2)
6.0 years6.0 years
Weighted average discount rate (2)
3.4 %3.9 %
(1)Operating lease cost for the period ended December 31, 2018, includes short-term lease cost in accordance with ASC 840 disclosure requirements.
(2)Disclosure was not required for periods reported under ASC 840.
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 balance sheet as of December 31, 2020. The reconciliation excludes short-term leases that are not recorded on the balance sheet.
Year Ending December 31,
2021$441.3 
2022388.7 
2023322.6 
2024260.3 
2025195.6 
Thereafter409.2 
Total lease payments2,017.7 
Amount representing interest(196.3)
Present value of operating lease liabilities$1,821.4 
During 2018, the Company completed transactions to sell and subsequently leaseback certain real estate properties and received proceeds totaling $225.3 million. The transactions were accounted for as financing transactions primarily due to the Company’s continuing involvement resulting from the length of the lease term in comparison to the remaining economic life of the real estate properties. The financing transactions have related future obligations of $198.9 at December 31, 2020.
v3.20.4
Other Long-Term Liabilities
 12 Months Ended
Dec. 31, 2020
Environmental Remediation Obligations [Abstract]  
OTHER LONG-TERM LIABILITIES OTHER LONG-TERM LIABILITIES
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 and regulations 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 continuously assesses its potential liability for investigation and remediation-related activities and adjusts its environmental-related accruals as information becomes available upon which more accurate costs can be reasonably estimated and as additional accounting guidelines are issued. At December 31, 2020, 2019 and 2018, the Company had accruals reported on the balance sheet as Other long-term liabilities of $300.5 million, $314.8 million and $322.5 million, respectively. Estimated costs of current investigation and remediation activities of $68.6 million, $57.6 million and $51.0 million are included in Other accruals at December 31, 2020, 2019 and 2018, respectively.
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 $114.5 million higher than the minimum accruals at December 31, 2020. 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, 2020. At December 31, 2020, $315.0 million, or 85.4% of the total accrual, related directly to the Major Sites. In the aggregate unaccrued maximum of $114.5 million at December 31, 2020, $90.8 million, or 79.3%, related to the Major Sites. The significant cost components of this liability continue to be related to remedy implementation, regulatory agency interaction, 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, waterbodies, 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. Each of the 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 has received a record of decision from the federal EPA and is currently in the remedial design phase for one operable unit and for which a remedial investigation/feasibility study has been submitted for another operable unit, (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 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, 2020, 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.
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.
v3.20.4
Litigation
 12 Months Ended
Dec. 31, 2020
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 and 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 seek 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 California 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, and 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, 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; and Lehigh and Montgomery Counties in Pennsylvania. Except for the Santa Clara County, California proceeding and the pending Pennsylvania proceedings, all of these legal proceedings have been concluded in favor of the Company and other defendants at various stages in the proceedings.
Santa Clara County, California Proceeding. The Santa Clara County, California proceeding was initiated in March 2000 in the Superior Court of the State of California, County of Santa Clara. On July 17, 2019, after nearly twenty years of litigation, the Company and two other defendants—ConAgra Grocery Products Company and NL Industries, Inc.—reached an agreement in principle with the plaintiffs to resolve the litigation. The agreement provides that, in full and final satisfaction of any and all claims of the plaintiffs, the Company and the other two defendants collectively shall pay a total of $305.0 million, with the Company and the other two defendants each paying approximately $101.7 million as follows: (i) an initial payment of $25.0 million within sixty days after the entry of a dismissal order and judgment; (ii) subsequent annual payments of $12.0 million one year after the initial payment and for a period of four years thereafter; and (iii) a final payment of approximately $16.7 million on the sixth anniversary of the initial payment. Should NL Industries fail to make any of its payments required under the agreement, the Company has agreed to backstop and pay on behalf of NL Industries a maximum amount of $15.0 million. On July 24, 2019, the trial court approved the agreement, discharged the receiver, and granted a judgment of dismissal with prejudice in favor of the Company and the other two defendants. At December 31, 2020 and 2019, the Company had accruals for this agreement reported on the balance sheet of $64.7 million and $76.7 million, respectively, with $12.0 million included in Current liabilities and the remaining $52.7 million and $64.7 million, respectively, included in Other long-term liabilities.
Pennsylvania Proceedings. Two proceedings in Pennsylvania were initiated in October 2018. The County of Montgomery, Pennsylvania filed a Complaint against the Company and several other former lead-based paint and lead pigment manufacturers in the Court of Common Pleas of Montgomery County, Pennsylvania. The County of Lehigh, Pennsylvania also filed a Complaint against the Company and several other former lead-based paint and lead pigment manufacturers in the Court of Common Pleas of Lehigh County, Pennsylvania. The Company removed both actions to the United States District Court for the Eastern District of Pennsylvania on November 28, 2018. Following the plaintiffs’ efforts to remand both cases, which the defendants opposed, both cases were ordered to be remanded to state court on July 21, 2020.
In both actions, the counties request 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.
In both actions, the defendants filed preliminary objections on December 21, 2020, seeking to dismiss the complaints with prejudice. The briefing associated with the preliminary objections is scheduled to be concluded on February 23, 2021, with oral argument for the Lehigh County, Pennsylvania action scheduled for March 3, 2021.
In October 2018, the Company filed a Complaint in the United States District Court for the Eastern District of Pennsylvania against the Pennsylvania Counties of Delaware, Erie and York seeking injunctive and declaratory relief to prevent the violation of the Company’s rights under the First Amendment and Due Process Clause of the U.S. Constitution. The Company voluntarily dismissed defendant Erie County on November 9, 2018 and defendant York County on November 21, 2018. Defendant Delaware County filed a motion to dismiss the Complaint, which the federal trial court granted on October 4, 2019. The Company appealed the federal trial court’s dismissal on November 1, 2019 to the United States Court of Appeals for the Third Circuit. On July 31, 2020, the Third Circuit affirmed the federal trial court’s dismissal of the Complaint. The Company filed a petition for writ of certiorari to the United States Supreme Court on December 28, 2020.
Litigation seeking damages from alleged personal injury. The Company and other companies are defendants in a number of legal proceedings seeking monetary damages and other relief from alleged personal injuries. These proceedings include claims by children allegedly injured from ingestion of lead pigment or lead-containing paint and claims for damages allegedly incurred by the children’s parents or guardians. These proceedings generally seek compensatory and punitive damages, and seek other relief including medical monitoring costs. These proceedings include purported claims by individuals, groups of individuals and class actions.
The plaintiff in Thomas v. Lead Industries Association, et al., initiated an action in Wisconsin state court against the Company, other alleged former lead pigment manufacturers and the Lead Industries Association in September 1999. The claims against the Company and the other defendants included strict liability, negligence, negligent misrepresentation and omissions, fraudulent misrepresentation and omissions, concert of action, civil conspiracy and enterprise liability. Implicit within these claims is the theory of “risk contribution” liability (Wisconsin’s 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. The case ultimately proceeded to trial and, on November 5, 2007, the jury returned a defense verdict, finding that the plaintiff had ingested white lead carbonate, but was not brain damaged or injured as a result. The plaintiff appealed and, on December 16, 2010, the Wisconsin Court of Appeals affirmed the final judgment in favor of the Company and other defendants.
Wisconsin is the only jurisdiction to date to apply a theory of liability with respect to alleged personal injury (i.e., risk contribution/market share liability) that does not require the plaintiff to identify the manufacturer of the product that allegedly injured the plaintiff in the lead pigment and lead-based paint litigation. Although the risk contribution liability theory was applied during the Thomas trial, the constitutionality of this theory as applied to the lead pigment cases has not been judicially determined by the Wisconsin state courts. However, in an unrelated action filed in the United States District Court for the Eastern District of Wisconsin, Gibson v. American Cyanamid, et al., on November 15, 2010, the District Court held that Wisconsin’s risk contribution theory as applied in that case violated the defendants’ right to substantive due process and is unconstitutionally retroactive. The District Court’s decision in Gibson v. American Cyanamid, et al., was appealed by the plaintiff to the United States Court of Appeals for the Seventh Circuit. On July 24, 2014, the United States Court of Appeals for the Seventh Circuit reversed the judgment and remanded the case back to the District Court for further proceedings. On January 16, 2015, the defendants filed a petition for certiorari in the United States Supreme Court seeking that Court’s review of the Seventh Circuit’s decision, and on May 18, 2015, the United States Supreme Court denied the defendants’ petition. The case is currently pending in the District Court.
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 commenced on May 6, 2019 and ended on May 31, 2019, with 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). The Company filed a motion for judgment in its favor based on public policy factors under Wisconsin law. On September 20, 2019, the trial court denied the motion and entered judgment in favor of the plaintiffs. On October 18, 2019, the Company filed post-trial motions for judgment as a matter of law and for a new trial. On February 27, 2020, the trial court denied the Company’s post-trial motion for judgment as a matter of law. On April 10, 2020, the trial court granted the Company’s post-trial motion for a new trial to the extent that the damages award to plaintiff Glenn Burton, Jr. shall be remitted to $800,000, and denied the motion in all other respects. The Company filed a notice of appeal with the United States Court of Appeals for the Seventh Circuit on May 8, 2020 and its opening brief on July 17, 2020. The plaintiffs filed their opposition brief on October 7, 2020. The Company filed its reply brief on November 12, 2020. Oral argument regarding the briefs occurred on December 9, 2020, and the parties are awaiting the Seventh Circuit’s decision.
In Maniya Allen, et al. v. American Cyanamid, et al., also pending in the United States District Court for the Eastern District of Wisconsin, cases involving six of the 146 plaintiffs were selected for discovery. In Dijonae Trammell, et al. v. American Cyanamid, et al., also pending in the United States District Court for the Eastern District of Wisconsin, discovery for one of the three plaintiffs was consolidated with the six Allen cases referenced above. The parties selected four of the cases to proceed to expert discovery and to prepare for trial. The District Court previously issued an order scheduling trial in the four cases to commence on June 15, 2020, but the trial date was continued due to the COVID-19 pandemic, and no new trial date has been scheduled.
Other lead-based paint and lead pigment litigation. In Mary Lewis v. Lead Industries Association, et al. pending in the Circuit Court of Cook County, Illinois, parents seek to recover the cost of their children’s blood lead testing against the Company and three other defendants that made (or whose alleged corporate predecessors made) white lead pigments. The Circuit Court has certified a statewide class and a Chicago subclass of parents or legal guardians of children who lived in high-risk zip codes identified by the Illinois Department of Health and who were screened for lead toxicity between August 1995 and February 2008. Excluded from the class are those parents or guardians who have incurred no expense, liability or obligation to pay for the cost of their children’s blood lead testing. In 2017, the Company and other defendants moved for summary judgment on the grounds that the three named plaintiffs have not paid and have no obligation or liability to pay for their children’s blood lead testing because Medicaid paid for the children of two plaintiffs and private insurance paid for the third plaintiff without any evidence of a co-pay or deductible. The Circuit Court granted the motion, but on September 7, 2018, the Appellate Court reversed with respect to the two plaintiffs for whom Medicaid paid for their children’s testing. Defendants filed a petition with the Supreme Court of Illinois for discretionary review. By order entered January 31, 2019, that court allowed defendants’ petition for leave to appeal. On May 21, 2020, the Supreme Court of Illinois reversed the Appellate Court’s judgment, affirmed the Circuit Court’s summary judgment dismissing the claims of the two plaintiffs for whom Medicaid paid for their children’s testing, and remanded the case for further proceedings consistent with the Supreme Court’s decision. On August 19, 2020, the defendants filed their renewed motion for class decertification and entry of final judgment with the Circuit Court. The parties filed their respective briefs on the renewed motion, and oral argument occurred on February 4, 2021. The parties are awaiting the Circuit Court’s decision.
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 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. Oral argument regarding those motions occurred on October 24, 2019. The trial court entered an order on December 4, 2020, granting the liability insurers’ motion for summary judgment, denying the Company’s motion, and entering final judgment in favor of the liability insurers. The Company filed a notice of appeal to the Court of Appeals of Cuyahoga County, Ohio, Eighth Appellate District on December 21, 2020, and the liability insurers filed a notice of cross-appeal on December 30, 2020. The liability insurers’ action, which was filed on February 23, 2006 in the Supreme Court of the State of New York, County of New York, has been dismissed.
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 filed a lawsuit against the Company in the Superior Court of New Jersey Law Division in Camden County, New Jersey. The plaintiffs seek 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. On February 21, 2020, the Company filed a motion to dismiss. On April 7, 2020, the plaintiffs filed a brief in opposition. The Company filed a reply brief on April 20, 2020. An initial hearing on the motion to dismiss occurred on January 29, 2021. The hearing is scheduled to continue on April 20-21, 2021.
v3.20.4
Capital Stock
 12 Months Ended
Dec. 31, 2020
Equity [Abstract]  
CAPITAL STOCK CAPITAL STOCKAt December 31, 2020, there were 300,000,000 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 and 1,000,000 shares are designated as convertible serial preferred stock. Under the 2006 Equity and Performance Incentive Plan (2006 Employee Plan), 23,700,000 shares may be issued or transferred. An aggregate of 7,002,637, 8,258,768 and 9,643,433 shares of common stock at December 31, 2020, 2019 and 2018, respectively, were reserved for the exercise and future grants of option rights and future grants of restricted stock and restricted stock units. See Note 13 for additional information related to stock-based compensation. Shares outstanding shown in the following table included 489,904, 489,783 and 489,647 shares of common stock held in a revocable trust at December 31, 2020, 2019 and 2018, respectively. 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
in Treasury		Shares
Outstanding
Balance at January 1, 201823,676,733 93,883,645 
Shares tendered as payment for option rights exercised1,159 (1,159)
Shares issued for exercise of option rights661,599 
Shares tendered in connection with vesting of restricted stock units52,144 (52,144)
Net shares issued for vesting of restricted stock units149,821 
Treasury stock purchased1,525,000 (1,525,000)
Balance at December 31, 201825,255,036 93,116,762 
Shares tendered as payment for option rights exercised3,838 (3,838)
Shares issued for exercise of option rights901,878 
Shares tendered in connection with vesting of restricted stock units55,095 (55,095)
Net shares issued for vesting of restricted stock units160,132 
Treasury stock purchased1,675,000 (1,675,000)
Shares transferred from defined benefit pension plan (1)
300,000 (300,000)
Balance at December 31, 201927,288,969 92,144,839 
Shares tendered as payment for option rights exercised3,380 (3,380)
Shares issued for exercise of option rights957,882 
Shares tendered in connection with vesting of restricted stock units44,359 (44,359)
Net shares issued for vesting of restricted stock units128,895 
Treasury stock purchased3,900,000 (3,900,000)
Treasury stock retired(30,582,144)
Shares sold (1)
(275,000)275,000 
Balance at December 31, 2020379,564 89,558,877 
(1)    During the year ended December 31, 2019, 300,000 shares were transferred from the Company’s terminated domestic defined benefit pension plan surplus assets in connection with the plan’s termination as described in Note 7. In accordance with ASC 715, the transferred shares are treated as treasury stock. During the year ended December 31, 2020, the Company received proceeds of $182.4 million in conjunction with the issuance of 275,000 treasury shares to fund Company contributions to the domestic defined contribution plan.
Common Stock Split
On February 3, 2021, the Board of Directors approved and declared a three-for-one stock split in the form of a stock dividend. Each shareholder of record at the close of business on March 23, 2021 will receive two additional common shares for each then-held common share, to be distributed after close of trading on March 31, 2021.
v3.20.4
ESOP
 12 Months Ended
Dec. 31, 2020
Share-based Payment Arrangement [Abstract]  
ESOP ESOP
As of December 31, 2020, 42,219 employees contributed to the Company’s ESOP, a voluntary defined contribution plan available to all eligible salaried employees. 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 ESOP on behalf of participating employees, representing amounts authorized by employees to be withheld from their earnings, of $196.5 million, $180.5 million and $170.3 million in 2020, 2019 and 2018, respectively. The Company’s matching contributions to the ESOP charged to operations were $120.0 million, $111.9 million and $104.7 million for 2020, 2019 and 2018, respectively.
At December 31, 2020, there were 7,318,468 shares of the Company’s common stock being held by the ESOP, representing 8.2% of the total number of voting shares outstanding. Shares of Company common stock credited to each member’s account under the ESOP 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.
v3.20.4
Stock-Based Compensation
 12 Months Ended
Dec. 31, 2020
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 23,700,000 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 and vesting of restricted stock units (RSUs). The 2006 Employee Plan permits the granting of option rights, appreciation rights, restricted stock, RSUs, performance shares and performance units to eligible employees. At December 31, 2020, no appreciation rights, performance shares or performance units had been granted under the 2006 Employee Plan.
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 200,000 shares of common stock, plus any shares relating to awards that expire, are forfeited or canceled. The Nonemployee Director Plan permits the granting of option rights, appreciation rights, restricted stock and RSUs to members of the Board of Directors who are not employees of the Company. At December 31, 2020, no option rights or appreciation rights had been granted under the Nonemployee Director Plan.
In connection with the acquisition of Valspar in 2017, the Company assumed certain outstanding RSUs of Valspar granted under the Amended and Restated 2015 Omnibus Equity Plan. Upon close of the acquisition, the Valspar RSUs were converted into RSUs relating to common stock of the Company. The converted RSUs vested in 2020, and there were no outstanding awards at December 31, 2020.
The cost of the Company’s stock-based compensation is recorded in accordance with the Stock Compensation Topic of the ASC. At December 31, 2020, the Company had total unrecognized stock-based compensation expense of $146.0 million that is expected to be recognized over a weighted-average period of 1.07 years. Stock-based compensation expense during 2020, 2019 and 2018 was $95.9 million, $101.7 million and $82.6 million, respectively. The related tax benefit was $23.6 million, $25.1 million and $20.5 million during 2020, 2019 and 2018, respectively. Excess tax benefits from share-based payments are recognized as an income tax benefit in the statement of consolidated income when options are exercised and RSUs vest. For the years ended December 31, 2020, 2019 and 2018, the Company’s excess tax benefit from options exercised and RSUs vested reduced the income tax provision by $94.7 million, $65.2 million, and $43.4 million respectively.
Option Rights
The fair value of the Company’s option rights 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:
202020192018
Risk-free interest rate.39 %1.64 %2.99 %
Expected life of option rights5.05 years5.05 years5.05 years
Expected dividend yield of stock.88 %.87 %.89 %
Expected volatility of stock26.7 %23.2 %21.1 %
The risk-free interest rate is based upon the U.S. Treasury yield curve at the time of grant. The expected life of option rights 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 option rights. 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 option rights for non-qualified and incentive stock options have been awarded to certain officers and key employees under the 2006 Employee Plan. The option rights 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 option rights granted to eligible employees amounted to $72.0 million at December 31, 2020. 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.
The weighted-average per share grant date fair value of options granted during 2020, 2019 and 2018 was $139.69, $116.41 and $90.86, respectively. The total intrinsic value of option rights exercised during 2020, 2019, and 2018 was $407.9 million, $285.8 million and $190.2 million, respectively. The total fair value of options vested during 2020, 2019 and 2018 was $51.0 million, $43.2 million and $38.6 million, respectively. There were no outstanding option rights for nonemployee directors at December 31, 2020, 2019 and 2018.
A summary of the Company’s non-qualified and incentive stock option right activity is shown in the following table:
 202020192018
 Optioned
Shares		Weighted-
Average
Exercise
Price
Per Share		Aggregate
Intrinsic
Value
(in millions)		Optioned
Shares		Weighted-
Average
Exercise
Price
Per Share		Aggregate
Intrinsic
Value
(in millions)		Optioned
Shares		Weighted-
Average
Exercise
Price
Per Share		Aggregate
Intrinsic
Value
(in millions)
Outstanding at
beginning of year
4,039,729 $290.45 4,485,249 $238.53 4,646,313 $204.33 
Granted457,931 640.16 498,886 549.32 565,336 410.00 
Exercised(957,612)190.90 (902,166)171.37 (662,218)137.03 
Forfeited(37,905)512.40 (40,312)380.13 (60,288)327.08 
Expired(1,017)418.65 (1,928)345.68 (3,894)238.26 
Outstanding at
end of year
3,501,126 $361.01 $1,309.1 4,039,729 $290.45 $1,184.0 4,485,249 $238.53 $704.2 
Exercisable at
end of year
2,560,480 $285.20 $1,151.5 2,973,656 $226.51 $1,061.7 3,274,780 $188.48 $671.3 
The weighted-average remaining term for options outstanding at the end of 2020, 2019 and 2018 was 6.12, 6.02 and 6.09 years, respectively. The weighted-average remaining term for options exercisable at the end of 2020, 2019 and 2018 was 5.06, 4.95 and 5.01 years, respectively.
Shares reserved for future grants of option rights, restricted stock and RSUs were 3,501,511, 4,217,446 and 5,135,822 at December 31, 2020, 2019 and 2018, respectively.
RSUs
Grants of 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 2020, 2019 and 2018 grants consisted of performance-based awards that 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 $72.2 million at December 31, 2020 and is being amortized on a straight-line basis over the vesting period and is expected to be recognized over a weighted-average period of 0.91 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 $1.8 million at December 31, 2020 and 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 0.91 years.
A summary of the Company’s RSU activity for the years ended December 31 is shown in the following table:
202020192018
Outstanding at beginning of year248,172 290,402 335,796 
Granted 95,973 131,275 116,636 
Vested(128,895)(168,730)(150,576)
Forfeited(6,789)(4,775)(11,454)
Outstanding at end of year208,461  248,172 290,402 
The weighted-average per share fair value of RSUs granted during 2020, 2019 and 2018 was $581.36, $432.55 and $404.08, respectively.
v3.20.4
DERIVATIVES AND HEDGING
 12 Months Ended
Dec. 31, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVES AND HEDGING DERIVATIVES AND HEDGING
In February 2020, the Company entered into two U.S. Dollar to Euro cross currency swap contracts to hedge the Company’s net investment in its European operations. The contracts, which were designated as net investment hedges, have a notional value of $500.0 million and $244.0 million, respectively, and mature on June 1, 2024 and November 15, 2021, respectively. During the term of the $500.0 million contract, 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. During the term of the $244.0 million contract, the Company will pay floating-rate interest in Euros and receive floating-rate interest in U.S. Dollars.
On May 9, 2019, the Company entered into a U.S. Dollar to Euro cross currency swap contract with a total notional amount of $400.0 million to hedge the Company’s net investment in its European operations. This contract was designated as a net investment hedge and had a maturity date of January 15, 2022. During the term of the contract, the Company paid fixed-rate interest in Euros and received 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. In February 2020, the Company settled its $400.0 million U.S. Dollar to Euro cross currency swap contract. At the time of the settlement, an unrealized gain of $11.8 million, net of tax, was recognized in AOCI.
As of December 31, 2020, the outstanding cross currency swap contracts were in a net loss position of $85.8 million, with $31.0 million included in Other accruals and $54.8 million included in Other long-term liabilities, respectively, on the consolidated balance sheet. As of December 31, 2019, the outstanding cross currency swap contract was in a net gain position of $1.5 million and included in Other assets on the consolidated balance sheet. See Note 16 for additional information on the fair value of these contracts.
The changes in fair value of the cross currency swap contracts are recognized in the foreign currency translation adjustments component of AOCI. For the year ended December 31, 2020, an unrealized loss of $54.0 million, net of tax, was recognized in AOCI. For the year ended December 31, 2019, an unrealized gain of $1.1 million, net of tax, was recognized in AOCI.
v3.20.4
Fair Value Measurements
 12 Months Ended
Dec. 31, 2020
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS
The following methods and assumptions were used by the Company in estimating its fair value disclosures for financial instruments:
•Cash and cash equivalents: The carrying amounts reported for Cash and cash equivalents approximate fair value.
•Investments in securities: Investments classified as available-for-sale are carried at fair market value. See the recurring fair value measurements table below.
•Short-term borrowings: The carrying amounts reported for Short-term borrowings approximate fair value.
•Long-term debt (including current portion): The fair values of the Company’s publicly traded debt are based on quoted market prices. The fair values of the Company’s non-publicly traded debt are 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. See the debt table below.
The following table summarizes the Company’s assets and liabilities measured on a recurring basis in accordance with the Fair Value Measurements and Disclosures Topic of the ASC:
Fair Value at December 31,
2020		Quoted Prices in Active Markets for
Identical Assets
(Level 1)		Significant 
Other
Observable 
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
Assets:
Deferred compensation plan assets (1)
$69.2 $37.9 $31.3 
Qualified Replacement Plan assets (2)
161.5 161.5 
$230.7 $199.4 $31.3 — 
Liabilities:
Deferred compensation plan liabilities (3)
$92.2 $92.2  
Net investment hedge liability (4)
85.8 $85.8 
$178.0 $92.2 $85.8 — 
(1)The deferred compensation plan assets consists of the investment funds maintained for the 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 quotes. The cost basis of the investment funds is $58.1 million.
(2)The Qualified Replacement Plan assets consist of investment funds maintained for future contributions to the Company’s domestic defined contribution plan. See Note 7. The investments are marketable securities accounted for under the Debt and Equity Securities Topic of the ASC. The investments are valued using quoted market prices multiplied by the number of shares. The cost basis of the investment funds is $159.6 million.
(3)The Company’s liabilities under its deferred compensation plans represent the fair value of the participant shadow accounts, and the value is based on quoted market prices in active markets for identical assets.
(4)The net investment hedge liability is the fair value of the cross currency swaps (see Note 15). The fair value is based on a valuation model that uses observable inputs, including interest rate curves and foreign currency rate.
Except for the impairments described in Note 5, there were no assets and liabilities measured at fair value on a nonrecurring basis.
The table below summarizes the carrying amounts and fair values of the Company’s publicly traded debt and non-traded debt.
 December 31,
 202020192018
Carrying
Amount		Fair
Value		Carrying AmountFair
Value		Carrying AmountFair
Value
Publicly traded debt$8,265.2 $9,707.0 $8,203.2 $8,735.8 $8,731.7 $8,330.2 
Non-traded debt26.8 26.5 277.3 270.7 283.6 272.7 
v3.20.4
Revenue
 12 Months Ended
Dec. 31, 2020
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 21 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.
The Company has made payments or credits for rebates or 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 AllowanceContract Assets (Current)Contract Assets (Long-Term)Contract Liabilities (Current)Contract Liabilities (Long-Term)
Balance sheet caption:Accounts receivableOther current assetsOther assetsOther accrualsOther liabilities
Balance at December 31, 2019$2,088.9 $50.5 $178.2 $242.8 $10.4 
Balance at December 31, 20202,078.1 52.0 170.7 266.3 8.2 
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 Company’s performance and the customer’s 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 Credit Losses
The Company’s primary allowance for credit losses is the allowance for doubtful accounts. The allowance for doubtful accounts reduces the Accounts receivable balance to the estimated net realizable value. The Company reviews the collectibility of the Accounts receivable balance each reporting period and estimates the allowance 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 if a final determination of uncollectibility is made. All provisions for allowances for doubtful accounts are included in Selling, general and administrative expenses. See Note 2 for additional information.
The following table summarizes the movement in the Company’s allowance for doubtful accounts:
202020192018
Beginning balance$36.5 $45.9 $53.0 
Adjustment upon adoption of ASU 2016-13(1)
3.0 
Bad debt expense56.8 53.1 38.2 
Uncollectible accounts written off, net of recoveries(42.8)(62.5)(45.3)
Ending balance$53.5 $36.5 $45.9 
(1)The Company adopted ASU 2016-13 effective January 1, 2020, using the modified retrospective transition method, electing to not restate prior periods. Refer to Note 1 for additional detail.
v3.20.4
Other Expense (Income)
 12 Months Ended
Dec. 31, 2020
Other Income and Expenses [Abstract]  
OTHER EXPENSE (INCOME) OTHER EXPENSE (INCOME)
Other General Expense - Net
Included in Other general expense - net were the following:
202020192018
Provisions for environmental matters - net$37.1 $23.0 $176.3 
(Gain) loss on sale or disposition of assets(9.4)16.1 12.8 
Total$27.7 $39.1 $189.1 
Provisions for environmental matters–net represent initial provisions for site-specific estimated costs of environmental investigation or remediation and increases or decreases to environmental-related accruals as information becomes available upon which more accurate costs can be reasonably estimated and as additional accounting guidelines are issued. During 2018, the Company reached a series of agreements on remediation plans at one of the Company’s four major sites, resulting in a significant increase to provisions for environmental matters–net for 2018. See Note 9 for further details on the Company’s environmental-related activities.
The (gain) loss on sale or disposition of assets represents the net realized (gain) loss associated with the sale or disposal of property, plant and equipment and intangible assets previously used in the conduct of the primary business of the Company.
Other Expense - Net
Included in Other expense - net were the following:
202020192018
Investment and royalty income$(16.4)$(12.0)$(4.3)
Loss on extinguishment of debt (see Note 6)21.3 14.8 
Net expense from banking activities10.4 10.7 9.7 
Foreign currency transaction related losses7.2 19.7 7.5 
Domestic pension plan settlement expense
 32.4 37.6 
Miscellaneous pension expense (income)4.9 8.0 (10.8)
Indirect tax credits (38.7)
Other income(44.7)(32.8)(32.2)
Other expense22.6 14.6 12.6 
Total$5.3 $16.7 $20.1 
Foreign currency transaction related losses include the impact from foreign currency transactions and net realized losses from foreign currency option and forward contracts. There were no material foreign currency option and forward contracts outstanding at December 31, 2020, 2019 and 2018.
Miscellaneous pension expense (income) consists of the non-service components of net pension costs (credits). See Note 7 for information on the Domestic pension plan settlement expense and Miscellaneous pension expense (income).
Indirect tax credits includes a gain of $33.5 million recognized by Sherwin-Williams do Brasil Industria e Comercio Ltda. (Sherwin-Williams Brazil) in the fourth quarter of 2019 related to the recovery of certain social contribution (PIS/COFINS) taxes paid over gross sales including ICMS receipts, a type of state level value-added tax in Brazil. In 2014, Sherwin-Williams Brazil filed a lawsuit against the Brazilian tax authorities to challenge the inclusion of ICMS on the PIS/COFINS tax base. During 2019, Sherwin-Williams Brazil received a favorable final, non-appealable decision against the Brazilian tax authorities. Upon clarification regarding monetization of the credits, the Company recognized the benefit. The Brazilian Office of the Attorney General of the National Treasury has sought clarification from the Brazilian Federal Supreme Court of certain matters, including the amount (i.e. gross or net credit amount) and timing of these credits. As a result of the COVID-19 pandemic, the Supreme Court has postponed the hearing on the clarification sought by the Brazilian Office of the Attorney General of the National Treasury. No date for the hearing has been rescheduled. If the Brazilian tax authorities challenge the amount or timing of these credits, the Company may become subject to new litigation related to the indirect tax credits already monetized or it could affect the Company’s ability to monetize future indirect tax credits.
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 in December 31, 2020, 2019 and 2018.
v3.20.4
Income Taxes
 12 Months Ended
Dec. 31, 2020
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
In response to the COVID-19 outbreak, global legislation concerning income taxes was passed throughout 2020. The Company assessed the applicability of the stimulus elements within the global legislation, and it did not have a material impact on the Company’s consolidated financial statements. The primary benefit to the Company was the delay of payment of U.S. federal and state income taxes as well as U.S. federal payroll withholding taxes until subsequent periods.
During 2019, the Company recorded an increase to the tax provision of $74.3 million related to the reversal of all net tax benefits recognized in previous tax years from federal renewable energy tax credit funds with DC Solar Solutions, Inc. and certain of its affiliates. The facts relating to the Company’s investments in the funds continue to be developed. In 2020, there were no adjustments recognized in the Company’s tax provision for this matter.
During the second quarter of 2018, the Company made purchase accounting adjustments related to the Valspar acquisition which resulted in the reversal of $27.5 million of income tax benefits related to the remeasurement of U.S. deferred tax liabilities.
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, 2020, 2019 and 2018 were as follows:
202020192018
Deferred tax assets:
Environmental and other similar items$82.9 $83.5 $84.5 
Employee related and benefit items166.6 129.3 97.0 
Operating lease liabilities448.9 430.6 
Other items 232.8 204.0 161.6 
Total deferred tax assets931.2 847.4 343.1 
Deferred tax liabilities:
Intangible assets and Property, plant, and equipment1,156.4 1,232.6 1,303.6 
LIFO inventories87.6 80.5 64.5 
Operating lease right-of-use assets434.0 417.8 
Other items 31.7 28.1 29.5 
Total deferred tax liabilities1,709.7 1,759.0 1,397.6 
Net deferred tax liabilities
$778.5 $911.6 $1,054.5 
As of December 31, 2020, 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 $104.6 million, $84.6 million and $73.5 million at December 31, 2020, 2019 and 2018, respectively. The increase in the valuation allowance in 2020 is primarily due to net operating losses of certain foreign subsidiaries. The Company has $19.4 million of domestic net operating loss carryforwards acquired through acquisitions that have expiration dates through the tax year 2037, foreign tax credits of $22.5 million that expire in calendar years 2027 through 2029 and foreign net operating losses of $355.7 million. The foreign net operating losses are related to various jurisdictions that provide for both indefinite carryforward periods and others with carryforward periods that range from the tax years 2020 to 2040.
Significant components of the provisions for income taxes were as follows:
202020192018
Current:
Federal$457.7 $440.1 $288.8 
Foreign92.0 71.1 53.2 
State and local84.4 60.4 52.4 
Total current634.1 571.6 394.4 
Deferred:
Federal(102.7)(83.7)(102.1)
Foreign(19.0)(32.3)(35.3)
State and local(23.6)(15.1)(6.0)
Total deferred(145.3)(131.1)(143.4)
Total provisions for income taxes$488.8 $440.5 $251.0 
Under provisions of the Tax Cuts and Jobs Act (Tax Act), the Company received an income tax benefit of $12.0 million, $10.4 million and $8.6 million in 2020, 2019 and 2018, respectively, related to foreign derived intangible income and incurred income tax expense of $7.0 million, $7.9 million and $5.5 million in 2020, 2019 and 2018, respectively, related to Global Intangible Low Taxed Income (GILTI). The Company has made an accounting policy election to record GILTI as a period cost.
Significant components of income before income taxes as used for income tax purposes, were as follows:
202020192018
Domestic$2,317.9 $1,899.6 $1,309.3 
Foreign201.3 82.2 50.4 
$2,519.2 $1,981.8 $1,359.7 
A reconciliation of the statutory federal income tax rate to the effective tax rate follows: 
202020192018
Statutory federal income tax rate21.0 %21.0 %21.0 %
Effect of:
State and local income taxes2.5 2.3 3.2 
Investment vehicles(0.8)(1.3)(1.2)
Employee share-based payments(3.8)(3.3)(3.2)
Research and development credits(0.5)(1.1)(1.3)
Amended returns and refunds0.3 0.1 (1.6)
Tax credit reversal3.7 
Other - net0.7 0.8 (0.3)
Subtotal19.4 %22.2 %16.6 %
Effect of Tax Act1.9 
Reported effective tax rate19.4 %22.2 %18.5 %
The decrease in the effective tax rate for 2020 compared to 2019 was primarily due to the reversal of certain partnership tax credits in 2019 that did not recur in 2020, partially offset by a reduction in research and development credits.
The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction, and various state and foreign jurisdictions. The IRS is currently auditing the Company’s 2013, 2014, 2015, and 2016 income tax returns. As a result of these audits, certain adjustments have been assessed. The Company has filed a protest and submitted additional information for consideration. The Company is evaluating the adjustments and believes that it is adequately reserved for any potential exposure. As of December 31, 2020, the U.S. federal statute of limitations has not expired for the 2013 through 2019 tax years.
As of December 31, 2020, the Company is subject to non-U.S. income tax examinations for the tax years of 2013 through 2019. In addition, the Company is subject to state and local income tax examinations for the tax years 1998 through 2020.
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
202020192018
Balance at beginning of year$203.0 $89.5 $59.0 
Additions from the Valspar acquisition
12.4 
Additions based on tax positions related to the current year13.8 14.9 12.9 
Additions for tax positions of prior years16.4 107.9 11.0 
Reductions for tax positions of prior years(3.3)(3.6)(2.0)
Settlements(2.0)(1.4)
Lapses of statutes of limitations(0.9)(5.7)(2.4)
Balance at end of year$227.0 $203.0 $89.5 
The increase in unrecognized tax benefits was primarily due to the reversal of tax benefits recognized in previous tax years from federal research and development credits. Other increases in the balance of unrecognized tax benefits at December 31, 2020 were related to a number of positions taken on current and amended income tax returns filed in the U.S. federal, and various state and foreign jurisdictions. At December 31, 2020, 2019 and 2018, the Company had unrecognized tax benefits of $216.3 million, $195.3 million, $83.0 million, respectively, the recognition of which would have an effect on the effective tax rate.
Included in the balance of unrecognized tax benefits at December 31, 2020 is $16.8 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, 2020, there was an increase in income tax interest and penalties of $4.0 million. There was an increase in income tax interest and penalties of $1.6 million and a decrease of $4.9 million for the years ended December 31, 2019 and 2018, respectively. The Company accrued $30.3 million, $26.2 million and $24.8 million at December 31, 2020, 2019 and 2018, respectively, for the potential payment of interest and penalties.
v3.20.4
Net Income Per Share
 12 Months Ended
Dec. 31, 2020
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.
(millions of dollars, except share and per share data)202020192018
Basic
Net income$2,030.4 $1,541.3 $1,108.7 
Average shares outstanding90,425,861 91,803,528 92,992,457 
Basic net income per share$22.45 $16.79 $11.92 
Diluted
Net income$2,030.4 $1,541.3 $1,108.7 
Average shares outstanding assuming dilution:
Average shares outstanding90,425,861 91,803,528 92,992,457 
Stock options and other contingently issuable shares (1)
1,501,142 1,601,213 1,938,586 
Non-vested restricted stock grants15,620 42,101 57,027 
Average shares outstanding assuming dilution91,942,623 93,446,842 94,988,070 
Diluted net income per share$22.08 $16.49 $11.67 
(1)Stock options and other contingently issuable shares excludes 318,947, 449,167 and 28,321 shares at December 31, 2020, 2019 and 2018, respectively, due to their anti-dilutive effect.
v3.20.4
Reportable Segment Information
 12 Months Ended
Dec. 31, 2020
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 allocation of resources in accordance with the Segment Reporting Topic of the ASC. The Company has three reportable operating segments: The Americas 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 chief operating decision maker (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 he has 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 assessment 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 of this report.
The Americas Group consisted of 4,774 company-operated specialty paint stores in the United States, Canada, Latin America and the Caribbean region at December 31, 2020. 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 Americas Group sells a variety of architectural paints, coatings and related products through dedicated dealers, home centers, distributors, hardware stores and other retailers throughout Latin America. The Americas Group meets regional customer demands through developing, licensing, manufacturing, distributing and selling a variety of architectural paints, coatings and related products in North and South America. The loss of any single customer would not have a material adverse effect on the business of this segment. At December 31, 2020, The Americas Group
consisted of operations from subsidiaries in 10 foreign countries. During 2020, this segment opened 16 net new stores, consisting of 56 new stores opened (53 in the United States, 1 in Canada, 1 in Mexico and 1 in South America) and 40 stores closed (10 in the United States, 6 in Canada, 17 in South America and 7 in Mexico). In 2019 and 2018, this segment opened 62 and 76 net new stores, respectively. The CODM uses discrete financial information about The Americas Group, supplemented with information by geographic region, product type and customer type, to assess performance of and allocate resources to The Americas Group as a whole. In accordance with ASC 280-10-50-9, The Americas 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 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 and distributors throughout North America, as well as in Australia, New Zealand, China and Europe. 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 55% of the total sales of the Consumer Brands Group in 2020 were intersegment transfers of products primarily sold through The Americas Group. At December 31, 2020, the Consumer Brands Group consisted of operations in the United States and subsidiaries in 6 foreign countries. 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 had sales to certain customers that, individually, may be a significant portion of the sales and related profitability of the segment. This segment incurred most of the Company’s capital expenditures related to ongoing environmental compliance measures at sites currently in operation. The CODM uses discrete financial information about the Consumer Brands Group, supplemented with information by product type and customer type, to assess 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. Sherwin-Williams® and other controlled brand products are distributed through The Americas Group and this segment’s 282 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 2020, this segment opened 1 new branch and did not close any branches for a net increase of 1 branch. At December 31, 2020, the Performance Coatings Group consisted of operations in the United States and subsidiaries in 44 foreign countries. The CODM uses discrete financial information about the Performance Coatings Group, supplemented with information about geographic divisions, business units and subsidiaries, to assess 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. Also included in the Administrative segment is 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 Segments. The Administrative segment does not include any significant foreign operations. 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. Sales of this segment represent external leasing revenue of excess headquarters space or leasing of facilities no longer used by the Company in its primary businesses. Material gains and losses from the sale of property are infrequent and not a significant operating factor in determining the performance of the Administrative segment.
Net external sales of all consolidated foreign subsidiaries were $3.581 billion, $3.679 billion and $4.028 billion for 2020, 2019 and 2018, respectively.
Long-lived assets consisted of Property, plant and equipment, Goodwill, Intangible assets, Operating lease right-of-use assets, Deferred pension assets and Other assets. The aggregate total of long-lived assets for the Company was $15.810 billion, $15.865 billion and, $14.790 billion at December 31, 2020, 2019 and 2018, respectively. Long-lived assets of consolidated foreign subsidiaries totaled $3.167 billion, $3.211 billion and $3.290 billion at December 31, 2020, 2019 and 2018, respectively.
Total Assets of the Company were $20.402 billion, $20.496 billion and $19.134 billion at December 31, 2020, 2019 and 2018, respectively. Total assets of consolidated foreign subsidiaries were $4.834 billion, $4.829 billion and $4.809 billion, which represented 23.7%, 23.6% and 25.1% of the Company’s total assets at December 31, 2020, 2019 and 2018, respectively.
No single geographic area outside the United States was significant relative to consolidated net external 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 was total net sales and intersegment transfers less operating costs and expenses. 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 headquarters property, plant and equipment. The margin for each reportable segment was based upon total net sales and intersegment transfers. Domestic intersegment transfers were 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 were accounted for at values comparable to normal unaffiliated customer sales. All intersegment transfers are eliminated within the Administrative segment.
2020
The Americas GroupConsumer Brands
Group		Performance Coatings GroupAdministrativeConsolidated
Totals
Net external sales$10,383.2 $3,053.4 $4,922.4 $2.7 $18,361.7 
Intersegment transfers3,688.4 137.1 (3,825.5)— 
Total net sales and intersegment transfers$10,383.2 $6,741.8 $5,059.5 $(3,822.8)$18,361.7 
Segment profit$2,294.1 $579.6 $500.1 $3,373.8 
Interest expense$(340.4)(340.4)
Administrative expenses and other(514.2)(514.2)
Income before income taxes
$2,294.1 $579.6 $500.1 $(854.6)$2,519.2 
% to net external sales22.1 %19.0 %10.2 %
Identifiable assets$5,386.6 $5,387.4 $8,071.1 $1,556.5 $20,401.6 
Capital expenditures63.9 89.8 43.0 107.1 303.8 
Depreciation73.0 87.6 69.1 38.3 268.0 
Amortization4.5 90.0 213.9 5.0 313.4 
2019
The Americas GroupConsumer Brands
Group		Performance Coatings
Group		AdministrativeConsolidated
Totals
Net external sales$10,171.9 $2,676.8 $5,049.2 $2.9 $17,900.8 
Intersegment transfers3,607.0 116.2 (3,723.2)— 
Total net sales and intersegment transfers$10,171.9 $6,283.8 $5,165.4 $(3,720.3)$17,900.8 
Segment profit$2,056.5 $373.2 $379.1 $2,808.8 
California litigation expense provision reduction$34.7 34.7 
Interest expense$(349.3)(349.3)
Administrative expenses and other(512.4)(512.4)
Income before income taxes
$2,056.5 $373.2 $379.1 $(827.0)$1,981.8 
% to net external sales20.2 %13.9 %7.5 %
Identifiable assets$5,399.1 $5,600.8 $8,175.6 $1,320.7 $20,496.2 
Capital expenditures73.3 133.4 84.2 38.0 328.9 
Depreciation72.2 81.1 70.9 37.9 262.1 
Amortization4.8 90.3 212.9 4.8 312.8 
2018
The Americas GroupConsumer Brands
Group		Performance Coatings
Group		AdministrativeConsolidated
Totals
Net external sales$9,625.1 $2,739.1 $5,166.4 $3.9 $17,534.5 
Intersegment transfers0.5 3,460.2 22.4 (3,483.1)— 
Total net sales and intersegment transfers$9,625.6 $6,199.3 $5,188.8 $(3,479.2)$17,534.5 
Segment profit$1,898.4 $261.1 $452.1 $2,611.6 
California litigation expense$(136.3)(136.3)
Interest expense$(366.7)(366.7)
Administrative expenses and other(748.9)(748.9)
Income before income taxes
$1,898.4 $261.1 $452.1 $(1,251.9)$1,359.7 
% to net external sales19.7 %9.5 %8.8 %
Identifiable assets$4,070.9 $5,385.3 $8,535.2 $1,142.9 $19,134.3 
Capital expenditures69.5 95.7 60.8 25.0 251.0 
Depreciation72.3 88.8 77.6 39.5 278.2 
Amortization4.8 97.5 210.7 5.1 318.1 
v3.20.4
Summary of Quarterly Results of Operations (Unaudited)
 12 Months Ended
Dec. 31, 2020
Quarterly Financial Data [Abstract]  
SUMMARY OF QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) SUMMARY OF QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) 
The following tables summarize the unaudited quarterly results of operations for the years ended December 31, 2020 and 2019.
2020
1st Quarter2nd Quarter3rd Quarter4th Quarter
Full Year (1)
Net sales$4,146.7 $4,604.0 $5,122.2 $4,488.8 $18,361.7 
Gross profit1,889.7 2,208.9 2,455.3 2,128.7 8,682.6 
Net income 321.7 595.9 705.8 407.0 2,030.4 
Net income per share:
Basic$3.53 $6.59 $7.80 $4.54 $22.45 
Diluted$3.46 $6.48 $7.66 $4.46 $22.08 
2019
1st Quarter2nd Quarter3rd Quarter4th Quarter
Full Year (1)
Net sales$4,040.9 $4,877.8 $4,867.7 $4,114.4 $17,900.8 
Gross profit1,735.1 2,181.4 2,225.6 1,894.0 8,036.1 
Net income245.2 471.0 576.5 248.6 1,541.3 
Net income per share:
Basic$2.67 $5.13 $6.28 $2.71 $16.79 
Diluted$2.62 $5.03 $6.16 $2.66 $16.49 
(1)    The sum of the quarterly earnings per share data may not equal the full year amount as the computations of the weighted average shares outstanding for each quarter and the full year are calculated independently.
v3.20.4
Valuation and Qualifying Accounts and Reserves (Schedule II)
 12 Months Ended
Dec. 31, 2020
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, 2020, 2019 and 2018 is set forth below. All other schedules for which provision is made in the applicable accounting regulations of the Securities and Exchange Commission 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)202020192018
Beginning balance$84.6 $73.5 $44.1 
Additions (deductions) (1)
20.0 7.4 10.6 
Acquired balances— 3.7 18.8 
Ending balance$104.6 $84.6 $73.5 
(1) Additions (deductions) did not have a material impact on the Income Statement in 2020, 2019 or 2018.
v3.20.4
Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 2020
Accounting Policies [Abstract]  
Consolidation 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
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 doubtful accounts
Accounts Receivable and Allowance for Doubtful Accounts
Accounts receivable were recorded at the time of credit sales net of allowance for credit losses. The Company recorded an allowance for doubtful accounts of $53.5 million, $36.5 million and $45.9 million at December 31, 2020, 2019 and 2018, respectively, to reduce Accounts receivable to the net amount expected to be collected (estimated net realizable value).
Effective January 1, 2020, the Company adopted Accounting Standards Update (ASU) 2016-13, “Measurement of Credit Losses on Financial Instruments” (ASC 326) using the modified retrospective transition method, electing to not restate prior periods. This ASU replaced the incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. As a result of the transition method elected, the required comparative period disclosures are prepared in accordance with the incurred loss impairment methodology.
Under ASC 326, the Company reviews the collectibility of the Accounts receivable balance each reporting period and estimates the allowance 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 if a final determination of uncollectibility is made. All provisions for allowances for doubtful accounts are included in Selling, general and administrative expenses. See Notes 2 and 17 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 provided by the straight-line method. 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. The major classes of assets and ranges of annual depreciation rates are:
Buildings
4.0% – 20.0%
Machinery and equipment
10.0% – 20.0%
Furniture and fixtures
6.7% – 33.3%
Automobiles and trucks
10.0% – 33.3%
Goodwill
Goodwill and Intangible Assets
Goodwill represents the cost in excess of fair value of net assets acquired in business combinations accounted for by the purchase method. Intangible assets include indefinite-lived trademarks, customer relationships and intellectual property. In accordance with the Goodwill and Other Intangibles Topic of the Financial Accounting Standards Board (FASB) Accounting Standards Codification (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 more likely than not occurred. Finite-lived intangible assets are amortized on a straight-line basis over the expected period of benefit, which ranges primarily from 15 to 20 years. See Note 5 for further details.
Intangible assets
Goodwill and Intangible Assets
Goodwill represents the cost in excess of fair value of net assets acquired in business combinations accounted for by the purchase method. Intangible assets include indefinite-lived trademarks, customer relationships and intellectual property. In accordance with the Goodwill and Other Intangibles Topic of the Financial Accounting Standards Board (FASB) Accounting Standards Codification (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 more likely than not occurred. Finite-lived intangible assets are amortized on a straight-line basis over the expected period of benefit, which ranges primarily from 15 to 20 years. See Note 5 for further details.
Impairment of long-lived assets 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 whenever events or changes in circumstances indicate that the carrying amount may not be recoverable or the useful life has changed.
Derivatives
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 2020, 2019, and 2018, primarily to hedge against value changes in foreign currency. There were no material foreign currency option and forward contracts outstanding at December 31, 2020, 2019 and 2018. See Note 18 for further details.
The Company also entered into cross currency swap contracts to hedge its net investment in European operations in 2020 and 2019. These contracts qualified for and were designated as net investment hedges as permitted 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 consolidated statement of cash flows. See Note 15 for further details.
Non-traded investments Non-Traded InvestmentsThe 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. 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 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.
Standby letters of credit 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.
Product warranties 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.Warranty accruals acquired in connection with the Valspar acquisition include warranties for certain products under extended furniture protection plans. The decrease in the accrual for product warranty claims in the year ended December 31, 2018 was primarily due to the divestiture of the furniture protection plan business in the third quarter of 2018.
Defined benefit pension and other postretirement benefit plans 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 recognition of a plan’s funded status as an asset for overfunded plans and as a liability for unfunded or underfunded plans.
Environmental matters Environmental MattersCapital expenditures for ongoing environmental compliance measures were recorded in Property, plant and equipment, and related expenses were 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 were 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 included 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.
ESOP ESOPThe Company accounts for the Employee Stock Purchase and Savings Plan, its employee stock ownership plan (ESOP), in accordance with the Employee Stock Ownership Plans Subtopic of the Compensation – Stock Ownership Topic of the ASC. The Company recognized compensation expense for amounts contributed to the ESOP.
Stock-based compensation Stock-Based Compensation The cost of the Company’s stock-based compensation is recorded in accordance with the Stock Compensation Topic of the ASC.
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 were 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 were 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 were 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 and translated the local currency asset and liability accounts at year-end exchange rates while income and expense accounts were translated at average exchange rates. The resulting translation adjustments were included in accumulated other comprehensive income (loss) (AOCI), a component of Shareholders’ equity.
Revenue Recognition/Cost of Goods Sold Revenue RecognitionThe Company recognized revenue when performance obligations under the terms of the agreement were satisfied. This generally occurs with the transfer of control of our products to the customer. Collectibility of amounts recorded as revenue was probable at the time of recognition.Costs of Goods Sold Included in Costs of goods sold were costs for materials, manufacturing, distribution and related support. Distribution costs included 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 Costs of goods sold were total technical expenditures, which included research and development costs, quality control, product formulation expenditures and other similar items.
Customer and vendor consideration
Customer and Vendor Consideration
The Company offered certain customers rebate and sales incentive programs which were classified as reductions in net sales. Such programs were in the form of volume rebates, rebates that constituted a percentage of sales or rebates for attaining certain sales goals. The Company received consideration from certain suppliers of raw materials in the form of volume rebates or rebates that constituted a percentage of purchases. These rebates were 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.
Selling, general and administrative expenses
Selling, General and Administrative Expenses
Selling costs included advertising expenses, marketing costs, employee and store costs and sales commissions. The cost of advertising was expensed as incurred. The Company incurred $363.4 million, $355.2 million and $357.8 million in advertising costs during 2020, 2019 and 2018, respectively. General and administrative expenses included human resources, legal, finance and other support and administrative functions.
Earnings per share Earnings Per Share Common stock held in a revocable trust (see Note 11) was not included in outstanding shares for basic or diluted income per share calculations. Basic and diluted net income per share were calculated using the treasury stock method in accordance with the Earnings Per Share Topic of the ASC. Basic net income per share amounts were computed based on the weighted-average number of shares outstanding during the year. Diluted net income per share amounts were computed based on the weighted-average number of shares outstanding plus all dilutive securities potentially outstanding during the year.
Reclassification
Reclassifications
Certain amounts in the consolidated financial statements and notes to the consolidated financial statements for 2018 and 2019 have been reclassified to conform to the 2020 presentation.
Recently Issued Accounting Pronouncements RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
Adopted in 2020
Effective January 1, 2020, the Company adopted ASU 2016-13, “Measurement of Credit Losses on Financial Instruments” (ASC 326). This ASU replaced the incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. In addition, new disclosures are required. The Company adopted ASU 2016-13 using the modified retrospective transition method. The adoption of ASU 2016-13 did not result in a material cumulative-effect adjustment to the opening balance of retained earnings at January 1, 2020 and did not have a material impact on the Company’s results of operations, financial condition or liquidity. See Note 17 for additional information.
Not Yet Adopted
In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” The ASU simplifies the accounting for income taxes by removing certain exceptions to the general principles in ASC 740. The amendments also improve consistent application of and simplify U.S. GAAP for other areas of ASC 740 by clarifying and amending existing guidance. The standards update is effective for fiscal years and interim periods beginning after December 15, 2020, with early adoption permitted. The adoption of ASU 2019-12 is not expected to have a material impact on the Company’s financial position, results of operations or cash flows.
v3.20.4
Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2020
Accounting Policies [Abstract]  
Classes of Assets and Ranges of Annual Depreciation Rates The major classes of assets and ranges of annual depreciation rates are:
Buildings
4.0% – 20.0%
Machinery and equipment
10.0% – 20.0%
Furniture and fixtures
6.7% – 33.3%
Automobiles and trucks
10.0% – 33.3%
Included in Property, plant and equipment, net were the following:
202020192018
Land$283.5 $242.1 $244.6 
Buildings1,098.0 1,044.2 979.1 
Machinery and equipment3,026.8 2,952.1 2,668.5 
Construction in progress140.5 144.0 147.9 
Property, plant and equipment, gross4,548.8 4,382.4 4,040.1 
Less allowances for depreciation2,714.3 2,547.2 2,263.3 
Property, plant and equipment, net$1,834.5 $1,835.2 $1,776.8 
Changes in the Company's Accrual for Product Warranty Claims Changes in the Company’s accrual for product warranty claims during 2020, 2019 and 2018, including customer satisfaction settlements during the year, were as follows:
202020192018
Balance at January 1$42.3 $57.1 $151.4 
Charges to expense38.1 32.5 31.7 
Settlements(37.1)(47.3)(57.8)
Divestiture and other adjustments (68.2)
Balance at December 31$43.3 $42.3 $57.1 
v3.20.4
Inventories (Tables)
 12 Months Ended
Dec. 31, 2020
Inventory Disclosure [Abstract]  
Schedule of Inventories
Included in Inventories were the following:
202020192018
Finished goods$1,427.6 $1,509.6 $1,426.4 
Work in process and raw materials376.5 380.0 388.9 
Inventories$1,804.1 $1,889.6 $1,815.3 
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.
202020192018
Percentage of total inventories on LIFO72 %72 %72 %
Excess of FIFO over LIFO$312.1$339.8$377.1
v3.20.4
Goodwill, Intangible and Long-Lived Assets (Tables)
 12 Months Ended
Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]  
Property, Plant and Equipment The major classes of assets and ranges of annual depreciation rates are:
Buildings
4.0% – 20.0%
Machinery and equipment
10.0% – 20.0%
Furniture and fixtures
6.7% – 33.3%
Automobiles and trucks
10.0% – 33.3%
Included in Property, plant and equipment, net were the following:
202020192018
Land$283.5 $242.1 $244.6 
Buildings1,098.0 1,044.2 979.1 
Machinery and equipment3,026.8 2,952.1 2,668.5 
Construction in progress140.5 144.0 147.9 
Property, plant and equipment, gross4,548.8 4,382.4 4,040.1 
Less allowances for depreciation2,714.3 2,547.2 2,263.3 
Property, plant and equipment, net$1,834.5 $1,835.2 $1,776.8 
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:
GoodwillThe Americas GroupConsumer Brands
Group		Performance Coatings
Group		Consolidated
Totals
Balance at January 1, 2018 (1)
$2,555.6 $2,233.2 $2,025.5 $6,814.3 
Acquisition adjustments(273.9)(413.3)900.8 213.6 
Currency and other adjustments(25.1)(66.1)20.0 (71.2)
Balance at December 31, 2018 (1)
2,256.6 1,753.8 2,946.3 6,956.7 
Acquisitions14.2 14.2 
Currency and other adjustments0.1 33.8 33.9 
Balance at December 31, 2019 (1)
2,256.6 1,753.9 2,994.3 7,004.8 
Currency and other adjustments0.7 43.6 44.3 
Balance at December 31, 2020 (1)
$2,256.6 $1,754.6 $3,037.9 $7,049.1 
(1)    Net of accumulated impairment losses of $19.4 ($10.5 million in The Americas Group, $8.1 million in the Consumer Brands Group and $0.8 million in the Performance Coatings Group).
Summary of the Carrying Value of 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
Intangible
Assets
SoftwareCustomer RelationshipsIntellectual PropertyAll OtherSubtotal
December 31, 2020
Gross$166.8 $3,181.6 $1,730.3 $306.8 $5,385.5 
Accumulated amortization(142.8)(804.7)(310.0)(273.4)(1,530.9)
Net value$24.0 $2,376.9 $1,420.3 $33.4 $3,854.6 $616.6 $4,471.2 
December 31, 2019
Gross$166.4 $3,062.8 $1,730.3 $312.9 $5,272.4 
Accumulated amortization(134.8)(527.5)(223.5)(260.5)(1,146.3)
Net value$31.6 $2,535.3 $1,506.8 $52.4 $4,126.1 $608.4 $4,734.5 
December 31, 2018
Gross$165.2 $3,103.7 $1,730.3 $315.0 $5,314.2 
Accumulated amortization(127.3)(326.3)(137.0)(256.2)(846.8)
Net value$37.9 $2,777.4 $1,593.3 $58.8 $4,467.4 $734.2 $5,201.6 
(1)    Trademarks with indefinite lives as of December 31, 2020 is net of accumulated impairment losses of $124.4 million. Trademarks with indefinite lives as of December 31, 2019 is net of accumulated impairment losses of $122.1 million. There were no material accumulated impairment losses as of December 31, 2018.
v3.20.4
Debt (Tables)
 12 Months Ended
Dec. 31, 2020
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:
Due Date202020192018
3.45% Senior Notes
2027$1,488.6 $1,486.8 $1,485.0 
4.50% Senior Notes
20471,230.8 1,230.1 1,229.4 
2.95% Senior Notes
2029791.7 790.7 
3.80% Senior Notes
2049542.8 542.5 
3.125% Senior Notes
2024497.7 497.0 496.3 
2.30% Senior Notes
2030495.8 
3.30% Senior Notes
2050493.7 
4.20% Senior Notes
2022405.7 411.3 416.8 
3.45% Senior Notes
2025398.3 398.0 397.6 
4.55% Senior Notes
2045394.5 394.3 394.1 
3.95% Senior Notes
2026357.8 359.3 360.8 
4.00% Senior Notes
2042296.6 296.4 296.3 
2.75% Senior Notes
2022259.6 757.1 1,242.9 
3.30% Senior Notes
2025249.5 249.4 249.3 
4.40% Senior Notes
2045239.6 239.2 238.7 
7.375% Debentures
2027119.1 119.1 119.0 
0.92% Fixed Rate Loan
202124.4 22.4 22.9 
7.45% Debentures
20973.5 3.5 3.5 
0.53% to 8.00% Promissory Notes
Through 20272.3 2.9 3.3 
Floating Rate Loan2021251.9 257.4 
2.25% Senior Notes
2020428.6 1,496.0 
7.25% Senior Notes
2019306.0 
Total (1)
8,292.0 8,480.5 9,015.3 
Less amounts due within one year25.1 429.8 307.2 
Long-term debt$8,266.9 $8,050.7 $8,708.1 
(1)     Net of capitalized debt issuance costs of $52.9 million, $50.6 million and $49.1 million at December 31, 2020, 2019 and 2018, respectively.
v3.20.4
Pension, Health Care and Other Postretirement Benefits (Tables)
 12 Months Ended
Dec. 31, 2020
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
Defined Benefit Pension Plans		Foreign
Defined Benefit Pension Plans
202020192018202020192018
Net pension cost:
Service cost$4.4 $3.5 $7.3 $6.8 $5.9 $8.2 
Interest cost3.2 4.8 32.2 6.9 9.4 9.5 
Expected return on plan assets(6.3)(5.3)(53.0)(10.0)(10.3)(10.8)
Amortization of prior service cost1.4 1.4 3.5 
Amortization of actuarial losses1.0 1.0 1.5 
Ongoing pension cost (credit)2.7 4.4 (10.0)4.7 6.0 8.4 
  Settlement costs (credits)32.4 37.6 0.2 0.3 (0.4)
Curtailment cost0.8 
Net pension cost2.7 36.8 28.4 4.9 6.3 8.0 
Other changes in plan assets and projected benefit
obligation recognized in AOCI (before taxes):
Net actuarial losses (gains) arising during the year(4.5)(22.0)29.9 7.0 13.2 (5.1)
Prior service cost (credit) arising during the year0.2 3.1 4.6 (0.5)
Amortization of actuarial losses(1.0)(1.0)(1.5)
Amortization of prior service cost(1.4)(1.4)(3.5)
(Loss) gain recognized for settlement(32.4)(37.6)(0.2)(0.3)0.4 
Prior service cost recognized for curtailment(0.8)
(Gain) arising from curtailment(0.8)(0.7)
Exchange rate gain (loss) recognized during the year
1.7 1.0 (2.0)
Total recognized in AOCI(5.7)(52.7)(8.2)7.0 12.2 (8.2)
Total recognized in net pension cost and AOCI
$(3.0)$(15.9)$20.2 $11.9 $18.5 $(0.2)
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, 2020, 2019 and 2018. The presentation is in accordance with the Retirement Benefits Topic of the ASC.
Fair value at December 31, 2020Quoted Prices
in Active Markets for Identical
Assets
(Level 1)		Significant 
Other
Observable 
Inputs
(Level 2)		Significant
Unobservable 
Inputs
(Level 3)
Investments at fair value:
Equity investments (1)
$134.9 $13.9 $121.0 
Fixed income investments (2)
182.3 24.3 158.0 
Other assets (3)
39.2 39.2 
Total investments in fair value hierarchy356.4 $38.2 $318.2 
Investments measured at NAV or its equivalent (4)
106.1 
Total investments$462.5 
Fair value at December 31, 2019Quoted Prices in Active Markets for Identical
Assets
(Level 1)		Significant 
Other
Observable 
Inputs
(Level 2)		Significant
Unobservable Inputs
(Level 3)
Investments at fair value:
Equity investments (1)
$115.7 $7.9 $107.8 
Fixed income investments (2)
173.4 29.7 143.7 
Other assets (3)
36.6 36.6 
Total investments in fair value hierarchy325.7 $37.6 $288.1 
Investments measured at NAV or its equivalent (4)
88.3 
Total investments$414.0 
Fair value at December 31, 2018Quoted Prices in Active Markets for Identical
Assets
(Level 1)		Significant 
Other
Observable 
Inputs
(Level 2)		Significant
Unobservable Inputs
(Level 3)
Investments at fair value:
Equity investments (1)
$215.8 $124.0 $91.8 
Fixed income investments (2)
609.9 462.8 147.1 
Other assets (3)
38.4 38.4 
Total investments in fair value hierarchy864.1 $586.8 $277.3 
Investments measured at NAV or its equivalent (4)
166.4 
Total investments$1,030.5 
(1)    This category includes actively managed equity assets that track primarily to the S&P 500.
(2)    This category includes government and corporate bonds that track primarily to the Barclays Capital Aggregate 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
Defined Benefit Pension Plans		Foreign
Defined Benefit Pension Plans
202020192018202020192018
Accumulated benefit obligations
at end of year
$114.2 $97.2 $521.0 $370.2 $331.7 $280.0 
Projected benefit obligations:
Balances at beginning of year$103.0 $524.7 $916.2 $360.7 $315.8 $349.6 
Service cost4.4 3.5 7.3 6.8 5.9 8.2 
Interest cost3.2 4.8 32.2 6.9 9.4 9.5 
Actuarial losses (gains)11.0 4.4 (13.6)25.3 36.2 (21.0)
Contributions and other0.2 3.1 3.8 (0.1)0.7 1.6 
Settlements(429.3)(379.1)(4.3)(6.6)(6.3)
Effect of foreign exchange16.0 7.8 (16.3)
Benefits paid(3.2)(8.2)(42.1)(10.2)(8.5)(9.5)
Balances at end of year118.6 103.0 524.7 401.1 360.7 315.8 
Plan assets:
Balances at beginning of year125.9 777.0 1,188.6 288.1 253.5 280.0 
Actual returns on plan assets21.6 31.7 9.6 28.9 33.3 (4.9)
Contributions and other5.9 7.7 8.3 
Settlements(429.3)(379.1)(4.3)(6.6)(6.3)
Transfer related to plan termination(245.3)
Effect of foreign exchange9.8 8.7 (14.1)
Benefits paid(3.2)(8.2)(42.1)(10.2)(8.5)(9.5)
Balances at end of year144.3 125.9 777.0 318.2 288.1 253.5 
Excess (deficient) plan assets over
projected benefit obligations
$25.7 $22.9 $252.3 $(82.9)$(72.6)$(62.3)
Assets and liabilities recognized in the
Consolidated Balance Sheets:
Deferred pension assets$25.7 $22.9 $252.3 $27.4 $20.1 $18.4 
Other accruals(2.5)(2.3)(2.7)
Other long-term liabilities(107.8)(90.4)(78.0)
$25.7 $22.9 $252.3 $(82.9)$(72.6)$(62.3)
Amounts recognized in AOCI:
Net actuarial gains (losses)$2.5 $(2.0)$(56.4)$(45.4)$(37.9)$(25.7)
Prior service (costs) credits(6.2)(7.4)(5.7)0.5 
$(3.7)$(9.4)$(62.1)$(44.9)$(37.9)$(25.7)
Weighted-average assumptions used to
determine projected benefit obligations:
Discount rate2.85 %3.44 %3.60 %1.63 %2.17 %3.04 %
Rate of compensation increase3.00 %3.00 %3.17 %2.91 %3.09 %3.65 %
Weighted-average assumptions used to
determine net pension cost:
Discount rate3.44 %3.60 %3.60 %2.17 %3.04 %2.73 %
Expected long-term rate of
return on assets
5.00 %5.00 %5.00 %3.62 %4.09 %3.84 %
Rate of compensation increase3.00 %3.17 %3.33 %3.09 %3.65 %3.69 %
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
202020192018
Benefit obligation:
Balance at beginning of year - unfunded$280.5 $274.6 $290.8 
Service cost1.5 1.5 2.0 
Interest cost7.6 11.2 10.2 
Actuarial loss (gain)19.7 12.8 (9.0)
Plan amendments1.0 (0.1)
Benefits paid(18.7)(19.6)(19.3)
Balance at end of year - unfunded$291.6 $280.5 $274.6 
Liabilities recognized in the Consolidated Balance Sheets:
Other accruals$(16.0)$(17.5)$(17.0)
Postretirement benefits other than pensions(275.6)(263.0)(257.6)
$(291.6)$(280.5) $(274.6)
Amounts recognized in AOCI:
Net actuarial losses$(62.8)$(45.1)$(32.8)
Prior service (cost) credits(0.9)1.1 6.1 
$(63.7)$(44.0)$(26.7)
Weighted-average assumptions used to determine benefit obligation:
Discount rate2.49 %3.22 %4.21 %
Health care cost trend rate - pre-656.06 %6.38 %6.69 %
Health care cost trend rate - post-655.13 %5.25 %4.94 %
Prescription drug cost increases8.25 %9.00 %9.75 %
Employer Group Waiver Plan (EGWP) trend rate8.25 %9.00 %9.75 %
Weighted-average assumptions used to determine net periodic benefit cost:
Discount rate3.22 %4.21 %3.61 %
Health care cost trend rate - pre-656.38 %6.69 %7.00 %
Health care cost trend rate - post-655.25 %4.94 %5.00 %
Prescription drug cost increases9.00 %9.75 %11.00 %
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 postretirement benefits other than pensions:
Other Postretirement Benefits
202020192018
Net periodic benefit cost:
Service cost$1.5 $1.5 $2.0 
Interest cost7.6 11.2 10.2 
Amortization of actuarial losses2.0 0.5 2.3 
Amortization of prior service credit(1.1)(5.0)(6.6)
Net periodic benefit cost 10.0 8.2 7.9 
Other changes in projected benefit obligation recognized in
AOCI (before taxes):
Net actuarial loss (gain) arising during the year19.7 12.8 (9.0)
Prior service cost (credit) arising during the year0.9 (0.1)
Amortization of actuarial losses(2.0)(0.5)(2.3)
Amortization of prior service credit1.1 5.0 6.6 
Total recognized in AOCI19.7 17.3 (4.8)
Total recognized in net periodic benefit cost and AOCI$29.7 $25.5 $3.1 
Expected Retiree Health Care Benefit Cash Payments
The Company expects to make retiree health care benefit cash payments as follows:
2021$16.1 
202216.8 
202317.0 
202418.3 
202518.3 
2026 through 203084.8 
Total expected benefit cash payments$171.3 
v3.20.4
Leases (Tables)
 12 Months Ended
Dec. 31, 2020
Leases [Abstract]  
Additional Lease Information
Additional lease information is summarized below:
202020192018
Operating lease cost (1)
$464.5 $452.9 $552.7 
Short-term lease cost (2)
41.1 39.7 
Variable lease cost80.7 73.6 68.2 
Operating cash outflows from operating leases (2)
$446.1 $430.9 
Leased assets obtained in exchange for new operating lease liabilities (2)
$469.9 $346.4 
Weighted average remaining lease term (2)
6.0 years6.0 years
Weighted average discount rate (2)
3.4 %3.9 %
(1)Operating lease cost for the period ended December 31, 2018, includes short-term lease cost in accordance with ASC 840 disclosure requirements.
(2)Disclosure was not required for periods reported under ASC 840.
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 balance sheet as of December 31, 2020. The reconciliation excludes short-term leases that are not recorded on the balance sheet.
Year Ending December 31,
2021$441.3 
2022388.7 
2023322.6 
2024260.3 
2025195.6 
Thereafter409.2 
Total lease payments2,017.7 
Amount representing interest(196.3)
Present value of operating lease liabilities$1,821.4 
v3.20.4
Capital Stock (Tables)
 12 Months Ended
Dec. 31, 2020
Equity [Abstract]  
Common Shares in Treasury and Common Shares Outstanding
Shares
in Treasury		Shares
Outstanding
Balance at January 1, 201823,676,733 93,883,645 
Shares tendered as payment for option rights exercised1,159 (1,159)
Shares issued for exercise of option rights661,599 
Shares tendered in connection with vesting of restricted stock units52,144 (52,144)
Net shares issued for vesting of restricted stock units149,821 
Treasury stock purchased1,525,000 (1,525,000)
Balance at December 31, 201825,255,036 93,116,762 
Shares tendered as payment for option rights exercised3,838 (3,838)
Shares issued for exercise of option rights901,878 
Shares tendered in connection with vesting of restricted stock units55,095 (55,095)
Net shares issued for vesting of restricted stock units160,132 
Treasury stock purchased1,675,000 (1,675,000)
Shares transferred from defined benefit pension plan (1)
300,000 (300,000)
Balance at December 31, 201927,288,969 92,144,839 
Shares tendered as payment for option rights exercised3,380 (3,380)
Shares issued for exercise of option rights957,882 
Shares tendered in connection with vesting of restricted stock units44,359 (44,359)
Net shares issued for vesting of restricted stock units128,895 
Treasury stock purchased3,900,000 (3,900,000)
Treasury stock retired(30,582,144)
Shares sold (1)
(275,000)275,000 
Balance at December 31, 2020379,564 89,558,877 
(1)    During the year ended December 31, 2019, 300,000 shares were transferred from the Company’s terminated domestic defined benefit pension plan surplus assets in connection with the plan’s termination as described in Note 7. In accordance with ASC 715, the transferred shares are treated as treasury stock. During the year ended December 31, 2020, the Company received proceeds of $182.4 million in conjunction with the issuance of 275,000 treasury shares to fund Company contributions to the domestic defined contribution plan.
v3.20.4
Stock-Based Compensation (Tables)
 12 Months Ended
Dec. 31, 2020
Share-based Payment Arrangement [Abstract]  
Weighted-Average Assumptions Used for Estimating the Fair Value of Option Rights
The fair value of the Company’s option rights 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:
202020192018
Risk-free interest rate.39 %1.64 %2.99 %
Expected life of option rights5.05 years5.05 years5.05 years
Expected dividend yield of stock.88 %.87 %.89 %
Expected volatility of stock26.7 %23.2 %21.1 %
Summary of Non-Qualified and Incentive Stock Option Right Activity
A summary of the Company’s non-qualified and incentive stock option right activity is shown in the following table:
 202020192018
 Optioned
Shares		Weighted-
Average
Exercise
Price
Per Share		Aggregate
Intrinsic
Value
(in millions)		Optioned
Shares		Weighted-
Average
Exercise
Price
Per Share		Aggregate
Intrinsic
Value
(in millions)		Optioned
Shares		Weighted-
Average
Exercise
Price
Per Share		Aggregate
Intrinsic
Value
(in millions)
Outstanding at
beginning of year
4,039,729 $290.45 4,485,249 $238.53 4,646,313 $204.33 
Granted457,931 640.16 498,886 549.32 565,336 410.00 
Exercised(957,612)190.90 (902,166)171.37 (662,218)137.03 
Forfeited(37,905)512.40 (40,312)380.13 (60,288)327.08 
Expired(1,017)418.65 (1,928)345.68 (3,894)238.26 
Outstanding at
end of year
3,501,126 $361.01 $1,309.1 4,039,729 $290.45 $1,184.0 4,485,249 $238.53 $704.2 
Exercisable at
end of year
2,560,480 $285.20 $1,151.5 2,973,656 $226.51 $1,061.7 3,274,780 $188.48 $671.3 
Summary of RSU Activity
A summary of the Company’s RSU activity for the years ended December 31 is shown in the following table:
202020192018
Outstanding at beginning of year248,172 290,402 335,796 
Granted 95,973 131,275 116,636 
Vested(128,895)(168,730)(150,576)
Forfeited(6,789)(4,775)(11,454)
Outstanding at end of year208,461  248,172 290,402 
v3.20.4
Accumulated Other Comprehensive Loss (Tables)
 12 Months Ended
Dec. 31, 2020
Statement of Other Comprehensive Income [Abstract]  
Components of accumulated other comprehensive loss
The components of AOCI, including the reclassification adjustments for items that were reclassified from AOCI to net income, are shown below.
Foreign Currency Translation AdjustmentsPension and Other Postretirement Benefits AdjustmentsUnrealized Net Gains on Available-for-Sale SecuritiesUnrealized Net Gains on Cash Flow HedgesTotal
Balance at January 1, 2018$(353.3)$(84.9)$2.3 $51.0 $(384.9)
Adjustment to initially adopt ASU 2016-01
(2.3)(2.3)
Amounts recognized in AOCI(254.3)(13.5)(267.8)
Amounts reclassified from AOCI31.3 (6.2)25.1 
Balance at December 31, 2018(607.6)(67.1)— 44.8 (629.9)
Reclassifications from AOCI to Retained earnings for adoption of ASU 2018-02
(19.3)11.0 (8.3)
Amounts recognized in AOCI(49.8)(5.1)(54.9)
Amounts reclassified from AOCI22.3 (8.7)13.6 
Balance at December 31, 2019(657.4)(69.2)— 47.1 (679.5)
Amounts recognized in AOCI(14.1)(19.4)(33.5)
Amounts reclassified from AOCI1.4 (6.7)(5.3)
Balance at December 31, 2020$(671.5)$(87.2)$— $40.4 $(718.3)
v3.20.4
Fair Value Measurements (Tables)
 12 Months Ended
Dec. 31, 2020
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 on a recurring basis in accordance with the Fair Value Measurements and Disclosures Topic of the ASC:
Fair Value at December 31,
2020		Quoted Prices in Active Markets for
Identical Assets
(Level 1)		Significant 
Other
Observable 
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
Assets:
Deferred compensation plan assets (1)
$69.2 $37.9 $31.3 
Qualified Replacement Plan assets (2)
161.5 161.5 
$230.7 $199.4 $31.3 — 
Liabilities:
Deferred compensation plan liabilities (3)
$92.2 $92.2  
Net investment hedge liability (4)
85.8 $85.8 
$178.0 $92.2 $85.8 — 
(1)The deferred compensation plan assets consists of the investment funds maintained for the 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 quotes. The cost basis of the investment funds is $58.1 million.
(2)The Qualified Replacement Plan assets consist of investment funds maintained for future contributions to the Company’s domestic defined contribution plan. See Note 7. The investments are marketable securities accounted for under the Debt and Equity Securities Topic of the ASC. The investments are valued using quoted market prices multiplied by the number of shares. The cost basis of the investment funds is $159.6 million.
(3)The Company’s liabilities under its deferred compensation plans represent the fair value of the participant shadow accounts, and the value is based on quoted market prices in active markets for identical assets.
(4)The net investment hedge liability is the fair value of the cross currency swaps (see Note 15). The fair value is based on a valuation model that uses observable inputs, including interest rate curves and foreign currency rate.
Carrying Amount and Fair Value of Debt
The table below summarizes the carrying amounts and fair values of the Company’s publicly traded debt and non-traded debt.
 December 31,
 202020192018
Carrying
Amount		Fair
Value		Carrying AmountFair
Value		Carrying AmountFair
Value
Publicly traded debt$8,265.2 $9,707.0 $8,203.2 $8,735.8 $8,731.7 $8,330.2 
Non-traded debt26.8 26.5 277.3 270.7 283.6 272.7 
v3.20.4
Revenue (Tables)
 12 Months Ended
Dec. 31, 2020
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 AllowanceContract Assets (Current)Contract Assets (Long-Term)Contract Liabilities (Current)Contract Liabilities (Long-Term)
Balance sheet caption:Accounts receivableOther current assetsOther assetsOther accrualsOther liabilities
Balance at December 31, 2019$2,088.9 $50.5 $178.2 $242.8 $10.4 
Balance at December 31, 20202,078.1 52.0 170.7 266.3 8.2 
Schedule of allowance for doubtful accounts
The following table summarizes the movement in the Company’s allowance for doubtful accounts:
202020192018
Beginning balance$36.5 $45.9 $53.0 
Adjustment upon adoption of ASU 2016-13(1)
3.0 
Bad debt expense56.8 53.1 38.2 
Uncollectible accounts written off, net of recoveries(42.8)(62.5)(45.3)
Ending balance$53.5 $36.5 $45.9 
(1)The Company adopted ASU 2016-13 effective January 1, 2020, using the modified retrospective transition method, electing to not restate prior periods. Refer to Note 1 for additional detail.
v3.20.4
Other Expense (Income) (Tables)
 12 Months Ended
Dec. 31, 2020
Other Income and Expenses [Abstract]  
Other General Expense, Net
Included in Other general expense - net were the following:
202020192018
Provisions for environmental matters - net$37.1 $23.0 $176.3 
(Gain) loss on sale or disposition of assets(9.4)16.1 12.8 
Total$27.7 $39.1 $189.1 
Other (Income) Expense, Net
Included in Other expense - net were the following:
202020192018
Investment and royalty income$(16.4)$(12.0)$(4.3)
Loss on extinguishment of debt (see Note 6)21.3 14.8 
Net expense from banking activities10.4 10.7 9.7 
Foreign currency transaction related losses7.2 19.7 7.5 
Domestic pension plan settlement expense
 32.4 37.6 
Miscellaneous pension expense (income)4.9 8.0 (10.8)
Indirect tax credits (38.7)
Other income(44.7)(32.8)(32.2)
Other expense22.6 14.6 12.6 
Total$5.3 $16.7 $20.1 
v3.20.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2020
Income Tax Disclosure [Abstract]  
Significant Components of Deferred Tax Assets and Liabilities
Significant components of the Company’s deferred tax assets and liabilities as of December 31, 2020, 2019 and 2018 were as follows:
202020192018
Deferred tax assets:
Environmental and other similar items$82.9 $83.5 $84.5 
Employee related and benefit items166.6 129.3 97.0 
Operating lease liabilities448.9 430.6 
Other items 232.8 204.0 161.6 
Total deferred tax assets931.2 847.4 343.1 
Deferred tax liabilities:
Intangible assets and Property, plant, and equipment1,156.4 1,232.6 1,303.6 
LIFO inventories87.6 80.5 64.5 
Operating lease right-of-use assets434.0 417.8 
Other items 31.7 28.1 29.5 
Total deferred tax liabilities1,709.7 1,759.0 1,397.6 
Net deferred tax liabilities
$778.5 $911.6 $1,054.5 
Significant Components of the Provisions for Income Taxes
Significant components of the provisions for income taxes were as follows:
202020192018
Current:
Federal$457.7 $440.1 $288.8 
Foreign92.0 71.1 53.2 
State and local84.4 60.4 52.4 
Total current634.1 571.6 394.4 
Deferred:
Federal(102.7)(83.7)(102.1)
Foreign(19.0)(32.3)(35.3)
State and local(23.6)(15.1)(6.0)
Total deferred(145.3)(131.1)(143.4)
Total provisions for income taxes$488.8 $440.5 $251.0 
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:
202020192018
Domestic$2,317.9 $1,899.6 $1,309.3 
Foreign201.3 82.2 50.4 
$2,519.2 $1,981.8 $1,359.7 
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: 
202020192018
Statutory federal income tax rate21.0 %21.0 %21.0 %
Effect of:
State and local income taxes2.5 2.3 3.2 
Investment vehicles(0.8)(1.3)(1.2)
Employee share-based payments(3.8)(3.3)(3.2)
Research and development credits(0.5)(1.1)(1.3)
Amended returns and refunds0.3 0.1 (1.6)
Tax credit reversal3.7 
Other - net0.7 0.8 (0.3)
Subtotal19.4 %22.2 %16.6 %
Effect of Tax Act1.9 
Reported effective tax rate19.4 %22.2 %18.5 %
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:
202020192018
Balance at beginning of year$203.0 $89.5 $59.0 
Additions from the Valspar acquisition
12.4 
Additions based on tax positions related to the current year13.8 14.9 12.9 
Additions for tax positions of prior years16.4 107.9 11.0 
Reductions for tax positions of prior years(3.3)(3.6)(2.0)
Settlements(2.0)(1.4)
Lapses of statutes of limitations(0.9)(5.7)(2.4)
Balance at end of year$227.0 $203.0 $89.5 
v3.20.4
Net Income Per Share (Tables)
 12 Months Ended
Dec. 31, 2020
Earnings Per Share [Abstract]  
Net Income Per Share
Basic and diluted net income per share are calculated using the treasury stock method.
(millions of dollars, except share and per share data)202020192018
Basic
Net income$2,030.4 $1,541.3 $1,108.7 
Average shares outstanding90,425,861 91,803,528 92,992,457 
Basic net income per share$22.45 $16.79 $11.92 
Diluted
Net income$2,030.4 $1,541.3 $1,108.7 
Average shares outstanding assuming dilution:
Average shares outstanding90,425,861 91,803,528 92,992,457 
Stock options and other contingently issuable shares (1)
1,501,142 1,601,213 1,938,586 
Non-vested restricted stock grants15,620 42,101 57,027 
Average shares outstanding assuming dilution91,942,623 93,446,842 94,988,070 
Diluted net income per share$22.08 $16.49 $11.67 
(1)Stock options and other contingently issuable shares excludes 318,947, 449,167 and 28,321 shares at December 31, 2020, 2019 and 2018, respectively, due to their anti-dilutive effect.
v3.20.4
Reportable Segment Information (Tables)
 12 Months Ended
Dec. 31, 2020
Segment Reporting [Abstract]  
Reportable Segment Financial Information
In the reportable segment financial information that follows, Segment profit was total net sales and intersegment transfers less operating costs and expenses. 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 headquarters property, plant and equipment. The margin for each reportable segment was based upon total net sales and intersegment transfers. Domestic intersegment transfers were 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 were accounted for at values comparable to normal unaffiliated customer sales. All intersegment transfers are eliminated within the Administrative segment.
2020
The Americas GroupConsumer Brands
Group		Performance Coatings GroupAdministrativeConsolidated
Totals
Net external sales$10,383.2 $3,053.4 $4,922.4 $2.7 $18,361.7 
Intersegment transfers3,688.4 137.1 (3,825.5)— 
Total net sales and intersegment transfers$10,383.2 $6,741.8 $5,059.5 $(3,822.8)$18,361.7 
Segment profit$2,294.1 $579.6 $500.1 $3,373.8 
Interest expense$(340.4)(340.4)
Administrative expenses and other(514.2)(514.2)
Income before income taxes
$2,294.1 $579.6 $500.1 $(854.6)$2,519.2 
% to net external sales22.1 %19.0 %10.2 %
Identifiable assets$5,386.6 $5,387.4 $8,071.1 $1,556.5 $20,401.6 
Capital expenditures63.9 89.8 43.0 107.1 303.8 
Depreciation73.0 87.6 69.1 38.3 268.0 
Amortization4.5 90.0 213.9 5.0 313.4 
2019
The Americas GroupConsumer Brands
Group		Performance Coatings
Group		AdministrativeConsolidated
Totals
Net external sales$10,171.9 $2,676.8 $5,049.2 $2.9 $17,900.8 
Intersegment transfers3,607.0 116.2 (3,723.2)— 
Total net sales and intersegment transfers$10,171.9 $6,283.8 $5,165.4 $(3,720.3)$17,900.8 
Segment profit$2,056.5 $373.2 $379.1 $2,808.8 
California litigation expense provision reduction$34.7 34.7 
Interest expense$(349.3)(349.3)
Administrative expenses and other(512.4)(512.4)
Income before income taxes
$2,056.5 $373.2 $379.1 $(827.0)$1,981.8 
% to net external sales20.2 %13.9 %7.5 %
Identifiable assets$5,399.1 $5,600.8 $8,175.6 $1,320.7 $20,496.2 
Capital expenditures73.3 133.4 84.2 38.0 328.9 
Depreciation72.2 81.1 70.9 37.9 262.1 
Amortization4.8 90.3 212.9 4.8 312.8 
2018
The Americas GroupConsumer Brands
Group		Performance Coatings
Group		AdministrativeConsolidated
Totals
Net external sales$9,625.1 $2,739.1 $5,166.4 $3.9 $17,534.5 
Intersegment transfers0.5 3,460.2 22.4 (3,483.1)— 
Total net sales and intersegment transfers$9,625.6 $6,199.3 $5,188.8 $(3,479.2)$17,534.5 
Segment profit$1,898.4 $261.1 $452.1 $2,611.6 
California litigation expense$(136.3)(136.3)
Interest expense$(366.7)(366.7)
Administrative expenses and other(748.9)(748.9)
Income before income taxes
$1,898.4 $261.1 $452.1 $(1,251.9)$1,359.7 
% to net external sales19.7 %9.5 %8.8 %
Identifiable assets$4,070.9 $5,385.3 $8,535.2 $1,142.9 $19,134.3 
Capital expenditures69.5 95.7 60.8 25.0 251.0 
Depreciation72.3 88.8 77.6 39.5 278.2 
Amortization4.8 97.5 210.7 5.1 318.1 
v3.20.4
Summary of Quarterly Results of Operations (Unaudited) (Tables)
 12 Months Ended
Dec. 31, 2020
Quarterly Financial Data [Abstract]  
Summary of Quarterly Results of Operations
The following tables summarize the unaudited quarterly results of operations for the years ended December 31, 2020 and 2019.
2020
1st Quarter2nd Quarter3rd Quarter4th Quarter
Full Year (1)
Net sales$4,146.7 $4,604.0 $5,122.2 $4,488.8 $18,361.7 
Gross profit1,889.7 2,208.9 2,455.3 2,128.7 8,682.6 
Net income 321.7 595.9 705.8 407.0 2,030.4 
Net income per share:
Basic$3.53 $6.59 $7.80 $4.54 $22.45 
Diluted$3.46 $6.48 $7.66 $4.46 $22.08 
2019
1st Quarter2nd Quarter3rd Quarter4th Quarter
Full Year (1)
Net sales$4,040.9 $4,877.8 $4,867.7 $4,114.4 $17,900.8 
Gross profit1,735.1 2,181.4 2,225.6 1,894.0 8,036.1 
Net income245.2 471.0 576.5 248.6 1,541.3 
Net income per share:
Basic$2.67 $5.13 $6.28 $2.71 $16.79 
Diluted$2.62 $5.03 $6.16 $2.66 $16.49 
(1)    The sum of the quarterly earnings per share data may not equal the full year amount as the computations of the weighted average shares outstanding for each quarter and the full year are calculated independently.
v3.20.4
Significant Accounting Policies - Narrative (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2020
USD ($)
numberOfDebtInstruments
Dec. 31, 2019
USD ($)
numberOfDebtInstruments
Dec. 31, 2018
USD ($)
numberOfDebtInstruments
Dec. 31, 2017
USD ($)
Significant Accounting Policies [Line Items]        
Number of derivative contracts outstanding | numberOfDebtInstruments 0 0 0  
Allowance for doubtful accounts $ 53.5 $ 36.5 $ 45.9 $ 53.0
Identifiable assets 20,401.6 20,496.2 19,134.3  
Amounts outstanding under standby letter of credit agreements 51.3 61.2 65.6  
Not Primary Beneficiary        
Significant Accounting Policies [Line Items]        
Identifiable assets 198.2 176.2 181.2  
Liabilities $ 216.3 174.4 183.0  
Minimum        
Significant Accounting Policies [Line Items]        
Useful life of intangible assets 15 years      
Maximum        
Significant Accounting Policies [Line Items]        
Useful life of intangible assets 20 years      
Cost of Goods Sold        
Significant Accounting Policies [Line Items]        
Research and development costs included in technical expenditures $ 97.1 103.1 51.9  
SG&A        
Significant Accounting Policies [Line Items]        
Advertising cost $ 363.4 $ 355.2 $ 357.8  
v3.20.4
Significant Accounting Policies - Classes of Assets and Ranges of Annual Depreciation Rates (Details)
 12 Months Ended
Dec. 31, 2020
Buildings | Minimum  
Classes of assets and ranges of annual depreciation rates  
Annual depreciation rate on assets 4.00%
Buildings | Maximum  
Classes of assets and ranges of annual depreciation rates  
Annual depreciation rate on assets 20.00%
Machinery and equipment | Minimum  
Classes of assets and ranges of annual depreciation rates  
Annual depreciation rate on assets 10.00%
Machinery and equipment | Maximum  
Classes of assets and ranges of annual depreciation rates  
Annual depreciation rate on assets 20.00%
Furniture and fixtures | Minimum  
Classes of assets and ranges of annual depreciation rates  
Annual depreciation rate on assets 6.70%
Furniture and fixtures | Maximum  
Classes of assets and ranges of annual depreciation rates  
Annual depreciation rate on assets 33.30%
Automobiles and trucks | Minimum  
Classes of assets and ranges of annual depreciation rates  
Annual depreciation rate on assets 10.00%
Automobiles and trucks | Maximum  
Classes of assets and ranges of annual depreciation rates  
Annual depreciation rate on assets 33.30%
v3.20.4
Significant Accounting Policies - Changes in Product Warranty Accruals (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Company's accrual for product warranty claims      
Beginning Balance $ 42.3 $ 57.1 $ 151.4
Charges to expense 38.1 32.5 31.7
Settlements (37.1) (47.3) (57.8)
Divestiture and other adjustments (68.2)
Ending Balance $ 43.3 $ 42.3 $ 57.1
v3.20.4
Acquisitions and Divestitures - Narrative (Details)
$ in Thousands
 12 Months Ended
Feb. 17, 2021
USD ($)
employee
Dec. 31, 2019
USD ($)
company
Business Acquisition [Line Items]    
Number of companies acquired | company   3
Purchase price | $   $ 84,400
Wattyl | Subsequent event    
Business Acquisition [Line Items]    
Revenue from divestiture | $ $ 200,000  
Employees in divestiture | employee 750  
European Coating Companies    
Business Acquisition [Line Items]    
Number of companies acquired | company   2
v3.20.4
Inventories (Details) - USD ($)
$ in Millions
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Inventory Disclosure [Abstract]      
Finished goods $ 1,427.6 $ 1,509.6 $ 1,426.4
Work in process and raw materials 376.5 380.0 388.9
Inventories $ 1,804.1 $ 1,889.6 $ 1,815.3
v3.20.4
Inventories - FIFO (Details) - USD ($)
$ in Millions
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Inventory Disclosure [Abstract]      
Percentage of total inventories on LIFO 72.00% 72.00% 72.00%
Excess of FIFO over LIFO $ 312.1 $ 339.8 $ 377.1
Reserve for obsolescence $ 125.8 $ 115.4 $ 105.9
v3.20.4
Goodwill, Intangible and Long-Lived Assets - Property Plant Equipment, Net (Details) - USD ($)
$ in Millions
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Finite-Lived Intangible Assets [Line Items]      
Property, plant and equipment, gross $ 4,548.8 $ 4,382.4 $ 4,040.1
Less allowances for depreciation 2,714.3 2,547.2 2,263.3
Property, plant and equipment, net 1,834.5 1,835.2 1,776.8
Land      
Finite-Lived Intangible Assets [Line Items]      
Property, plant and equipment, gross 283.5 242.1 244.6
Buildings      
Finite-Lived Intangible Assets [Line Items]      
Property, plant and equipment, gross 1,098.0 1,044.2 979.1
Machinery and equipment      
Finite-Lived Intangible Assets [Line Items]      
Property, plant and equipment, gross 3,026.8 2,952.1 2,668.5
Construction in progress      
Finite-Lived Intangible Assets [Line Items]      
Property, plant and equipment, gross $ 140.5 $ 144.0 $ 147.9
v3.20.4
Goodwill, Intangible and Long-Lived Assets - Narrative (Details)
 12 Months Ended
Oct. 01, 2020
USD ($)
Oct. 01, 2019
USD ($)
Oct. 01, 2018
USD ($)
Dec. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
company
Dec. 31, 2018
USD ($)
Acquired Indefinite-lived Intangible Assets [Line Items]            
Impairment of long-lived assets       $ 0 $ 0 $ 0
Number of companies acquired | company         3  
Goodwill recognized         $ 14,200,000 213,600,000
Finite-lived assets acquired         34,900,000  
Impairment of intangible assets       2,300,000 $ 122,100,000 0
Impairment of trademarks     $ 0      
Amortization of finite-lived intangible assets for the next five years:            
2021       308,800,000    
2022       306,400,000    
2023       303,700,000    
2024       301,000,000.0    
2025       297,300,000    
The Americas Group            
Acquired Indefinite-lived Intangible Assets [Line Items]            
Goodwill recognized           (273,900,000)
Performance Coatings Group            
Acquired Indefinite-lived Intangible Assets [Line Items]            
Goodwill recognized           900,800,000
Consumer Brands Group            
Acquired Indefinite-lived Intangible Assets [Line Items]            
Goodwill recognized           $ (413,300,000)
Trademarks            
Acquired Indefinite-lived Intangible Assets [Line Items]            
Impairment of intangible assets   $ 122,100,000   $ 15,700,000    
Trademarks | Performance Coatings Group            
Acquired Indefinite-lived Intangible Assets [Line Items]            
Impairment of intangible assets $ 2,300,000 117,000,000.0        
Trademarks | Consumer Brands Group            
Acquired Indefinite-lived Intangible Assets [Line Items]            
Impairment of intangible assets   5,100,000        
North America | Trademarks | Performance Coatings Group            
Acquired Indefinite-lived Intangible Assets [Line Items]            
Impairment of intangible assets   75,600,000        
Asia Pacific | Trademarks | Performance Coatings Group            
Acquired Indefinite-lived Intangible Assets [Line Items]            
Impairment of intangible assets   $ 25,700,000        
v3.20.4
Goodwill, Intangible and Long-Lived Assets - Summary of Changes in the Carrying Value of Goodwill by Reportable Segment (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Carrying value of goodwill by reportable operating segment      
Opening balance $ 7,004.8 $ 6,956.7 $ 6,814.3
Acquisition adjustments   14.2 213.6
Acquisitions   14.2  
Currency and other adjustments 44.3 33.9 (71.2)
Closing balance 7,049.1 7,004.8 6,956.7
Accumulated impairment losses 19.4    
The Americas Group      
Carrying value of goodwill by reportable operating segment      
Opening balance 2,256.6 2,256.6 2,555.6
Acquisition adjustments     (273.9)
Acquisitions    
Currency and other adjustments (25.1)
Closing balance 2,256.6 2,256.6 2,256.6
Accumulated impairment losses 10.5    
Consumer Brands Group      
Carrying value of goodwill by reportable operating segment      
Opening balance 1,753.9 1,753.8 2,233.2
Acquisition adjustments     (413.3)
Acquisitions    
Currency and other adjustments 0.7 0.1 (66.1)
Closing balance 1,754.6 1,753.9 1,753.8
Accumulated impairment losses 8.1    
Performance Coatings Group      
Carrying value of goodwill by reportable operating segment      
Opening balance 2,994.3 2,946.3 2,025.5
Acquisition adjustments     900.8
Acquisitions   14.2  
Currency and other adjustments 43.6 33.8 20.0
Closing balance 3,037.9 $ 2,994.3 $ 2,946.3
Accumulated impairment losses $ 0.8    
v3.20.4
Goodwill, Intangible and Long-Lived Assets - Summary of the Carrying Value of Intangible Assets (Details) - USD ($)
$ in Millions
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Carrying value of intangible assets      
Gross $ 5,385.5 $ 5,272.4 $ 5,314.2
Accumulated amortization (1,530.9) (1,146.3) (846.8)
Net value 3,854.6 4,126.1 4,467.4
Trademarks with indefinite lives 616.6 608.4 734.2
Total Intangible Assets 4,471.2 4,734.5 5,201.6
Accumulated impairment losses 19.4    
Trademarks      
Carrying value of intangible assets      
Accumulated impairment losses 124.4   122.1
Software      
Carrying value of intangible assets      
Gross 166.8 166.4 165.2
Accumulated amortization (142.8) (134.8) (127.3)
Net value 24.0 31.6 37.9
Customer Relationships      
Carrying value of intangible assets      
Gross 3,181.6 3,062.8 3,103.7
Accumulated amortization (804.7) (527.5) (326.3)
Net value 2,376.9 2,535.3 2,777.4
Intellectual Property      
Carrying value of intangible assets      
Gross 1,730.3 1,730.3 1,730.3
Accumulated amortization (310.0) (223.5) (137.0)
Net value 1,420.3 1,506.8 1,593.3
All Other      
Carrying value of intangible assets      
Gross 306.8 312.9 315.0
Accumulated amortization (273.4) (260.5) (256.2)
Net value $ 33.4 $ 52.4 $ 58.8
v3.20.4
Debt - Long-term Debt (Details) - USD ($)
$ in Millions
Dec. 31, 2020
Dec. 31, 2019
Aug. 31, 2019
Dec. 31, 2018
Long-term debt        
Total long-term debt $ 8,292.0 $ 8,480.5   $ 9,015.3
Less amounts due within one year 25.1 429.8   307.2
Long-term debt 8,266.9 8,050.7   8,708.1
Capitalized debt issuance costs 52.9 50.6   49.1
3.45% Senior Notes | Senior Notes        
Long-term debt        
Total long-term debt $ 1,488.6 1,486.8   1,485.0
Interest rate 3.45%      
4.50% Senior Notes | Senior Notes        
Long-term debt        
Total long-term debt $ 1,230.8 1,230.1   1,229.4
Interest rate 4.50%      
2.95% Senior Notes | Senior Notes        
Long-term debt        
Total long-term debt $ 791.7 790.7  
Interest rate 2.95%   2.95%  
3.80% Senior Notes | Senior Notes        
Long-term debt        
Total long-term debt $ 542.8 542.5    
Interest rate 3.80%   3.80%  
3.125% Senior Notes | Senior Notes        
Long-term debt        
Total long-term debt $ 497.7 497.0   496.3
Interest rate 3.125%      
2.30% Senior Notes | Senior Notes        
Long-term debt        
Total long-term debt $ 495.8      
Interest rate 2.30%      
3.30% Senior Notes | Senior Notes        
Long-term debt        
Total long-term debt $ 493.7      
Interest rate 3.30%      
4.20% Senior Notes | Senior Notes        
Long-term debt        
Total long-term debt $ 405.7 411.3   416.8
Interest rate 4.20%      
3.45% Senior Notes | Senior Notes        
Long-term debt        
Total long-term debt $ 398.3 398.0   397.6
Interest rate 3.45%      
4.55% Senior Notes | Senior Notes        
Long-term debt        
Total long-term debt $ 394.5 394.3   394.1
Interest rate 4.55%      
3.95% Senior Notes | Senior Notes        
Long-term debt        
Total long-term debt $ 357.8 359.3   360.8
Interest rate 3.95%      
4.00% Senior Notes | Senior Notes        
Long-term debt        
Total long-term debt $ 296.6 296.4   296.3
Interest rate 4.00%      
2.75% Senior Notes | Senior Notes        
Long-term debt        
Total long-term debt $ 259.6 757.1   1,242.9
Interest rate 2.75%      
3.30% Senior Notes | Senior Notes        
Long-term debt        
Total long-term debt $ 249.5 249.4   249.3
Interest rate 3.30%      
4.40% Senior Notes | Senior Notes        
Long-term debt        
Total long-term debt $ 239.6 239.2   238.7
Interest rate 4.40%      
7.375% Debentures | Debentures        
Long-term debt        
Total long-term debt $ 119.1 119.1   119.0
Interest rate 7.375%      
0.92% Fixed Rate Loan | Debentures        
Long-term debt        
Total long-term debt $ 24.4 22.4   22.9
Interest rate 0.92%      
7.45% Debentures | Debentures        
Long-term debt        
Total long-term debt $ 3.5 3.5   3.5
Interest rate 7.45%      
0.53% to 8.00% Promissory Notes | Debentures        
Long-term debt        
Total long-term debt $ 2.3 2.9   3.3
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 8.00%      
Floating Rate Loan | Debentures        
Long-term debt        
Total long-term debt   251.9   257.4
2.25% Senior Notes | Senior Notes        
Long-term debt        
Total long-term debt   $ 428.6   1,496.0
Interest rate   2.25%    
7.25% Senior Notes | Senior Notes        
Long-term debt        
Total long-term debt       $ 306.0
Interest rate       7.25%
v3.20.4
Debt - Long-term Borrowings (Details) - USD ($)
$ in Millions
 1 Months Ended 3 Months Ended 12 Months Ended
Aug. 31, 2019
Mar. 31, 2020
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Jun. 30, 2020
Debt Instrument [Line Items]            
Long-term debt maturing in 2021     $ 25.1      
Long-term debt maturing in 2022     661.0      
Long-term debt maturing in 2023     0.3      
Long-term debt maturing in 2024     500.2      
Long-term debt maturing in 2025     650.1      
Interest expense on long-term debt     320.5 $ 321.3 $ 343.1  
Loss on extinguishment of debt     $ 21.3 $ 14.8  
Senior Notes | 2.30% Senior Notes Due May 2030            
Debt Instrument [Line Items]            
Interest rate   2.30%        
Long-term debt issued   $ 500.0        
Senior Notes | 3.30% Senior Notes Due May 2050            
Debt Instrument [Line Items]            
Interest rate   3.30%        
Long-term debt issued   $ 500.0        
Senior Notes | Senior Notes 2.75%, Due June 2022            
Debt Instrument [Line Items]            
Debt repurchased $ 490.0          
Interest rate 2.75% 2.75%        
Loss on extinguishment of debt   $ 21.3        
Senior Notes | 2.25% Senior Notes Due May 2020            
Debt Instrument [Line Items]            
Debt repurchased $ 1,010.0         $ 60.9
Interest rate 2.25% 2.25%       2.25%
Loss on extinguishment of debt $ (14.8)          
Senior Notes | 2.95% Senior Notes            
Debt Instrument [Line Items]            
Interest rate 2.95%   2.95%      
Long-term debt issued $ 800.0          
Senior Notes | 3.80% Senior Notes            
Debt Instrument [Line Items]            
Interest rate 3.80%   3.80%      
Long-term debt issued $ 550.0          
v3.20.4
Debt - Short-term Borrowings (Details)
 12 Months Ended
Jul. 19, 2018
USD ($)
option
Dec. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Dec. 31, 2018
USD ($)
Short Term Debt [Line Items]        
Short-term borrowings outstanding   $ 100,000 $ 204,700,000 $ 328,400,000
Commercial Paper        
Short Term Debt [Line Items]        
Weighted average interest rate     2.10% 3.00%
Five Year Credit Agreement, July 2018 | Line of Credit        
Short Term Debt [Line Items]        
Maximum borrowing capacity $ 2,000,000,000.000      
Debt instrument term 5 years      
Number of extension options | option 2      
Extension term 1 year      
Maximum borrowing capacity after exercising extension option $ 2,750,000,000      
Short-term borrowings outstanding   $ 0 $ 0 $ 0
Five Year Credit Agreement, July 2018 | Letter of Credit        
Short Term Debt [Line Items]        
Maximum borrowing capacity $ 250,000,000.0      
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   $ 875,000,000.0    
Letter Of Credit Agreement | Letter of Credit        
Short Term Debt [Line Items]        
Debt instrument term   5 years    
Five Year Credit Agreement, September 2017 | Line of Credit        
Short Term Debt [Line Items]        
Maximum borrowing capacity   $ 625,000,000.0    
Domestic Commercial Paper Program | Commercial Paper        
Short Term Debt [Line Items]        
Short-term borrowings outstanding   0 191,900,000 291,400,000
Foreign Programs | Commercial Paper        
Short Term Debt [Line Items]        
Short-term borrowings outstanding   $ 100,000 $ 12,800,000 $ 37,000,000.0
Weighted average interest rate   0.20% 4.30% 9.30%
v3.20.4
Pension, Health Care and Other Postretirement Benefits - Narrative (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2020
USD ($)
pension_plan
employee
shares
Dec. 31, 2019
USD ($)
employee
shares
Dec. 31, 2018
USD ($)
employee
shares
Dec. 31, 2017
USD ($)
Health care plans        
Treasury stock, value, transferred from defined benefit plan   $ 131.8    
Minimum | Equity Securities        
Expected defined benefit payments        
Target allocation percentage of plan assets in equity securities 35.00%      
Minimum | Fixed Income Securities        
Expected defined benefit payments        
Target allocation percentage of plan assets in equity securities 35.00%      
Maximum | Equity Securities        
Expected defined benefit payments        
Target allocation percentage of plan assets in equity securities 65.00%      
Maximum | Fixed Income Securities        
Expected defined benefit payments        
Target allocation percentage of plan assets in equity securities 55.00%      
Postretirement Health Coverage        
Health care plans        
Number of active employees entitled to receive benefits under health care plans | employee 27,782 27,030 26,323  
Cost of benefits includes claims incurred and claims incurred but not reported under health care plans $ 298.8 $ 301.6 $ 298.8  
Defined Benefit Pension        
Health care plans        
Fair value of plan assets 356.4 325.7 864.1  
Expected defined benefit payments        
Expected cash payments, 2021 15.9      
Expected cash payments, 2022 14.1      
Expected cash payments, 2023 15.7      
Expected cash payments, 2024 16.2      
Expected cash payments, 2025 16.7      
Expected cash payments, 2026-2030 95.2      
Amortization of actuarial losses 1.5      
Amortization of prior service cost (credit) 1.0      
Defined Benefit Pension | Domestic Defined Benefit Pension Plans        
Health care plans        
Contributions by company 77.0 72.7 65.2  
Settlement charge   32.4 37.6  
Accumulated benefit obligation 114.2 97.2 521.0  
Projected benefit obligation 118.6 103.0 524.7 $ 916.2
Fair value of plan assets 144.3 125.9 777.0 1,188.6
Excess (deficient) plan assets over projected benefit obligations $ 25.7 $ 22.9 $ 252.3  
Expected defined benefit payments        
Equity investment in domestic defined benefit pension plan assets (in shares) | shares 0 0 300,000  
Defined Benefit Pension | Domestic Defined Benefit Pension Plans | Equity Securities        
Expected defined benefit payments        
Market value of common shares invested in defined benefit pension plan assets     $ 118.0  
Defined Benefit Pension | Domestic Defined Benefit Pension Plans | Minimum        
Health care plans        
Contributions by company (percentage) 2.00%      
Defined Benefit Pension | Domestic Defined Benefit Pension Plans | Maximum        
Health care plans        
Contributions by company (percentage) 7.00%      
Defined Benefit Pension | Foreign Defined Benefit Pension Plans        
Health care plans        
Contributions by company $ 22.5 $ 24.5 19.5  
Settlement charge 0.2 0.3 (0.4)  
Accumulated benefit obligation 370.2 331.7 280.0  
Projected benefit obligation 401.1 360.7 315.8 349.6
Fair value of plan assets 318.2 288.1 253.5 280.0
Excess (deficient) plan assets over projected benefit obligations $ (82.9) (72.6) (62.3)  
Number of defined benefit plans | pension_plan 31      
Expected defined benefit payments        
Estimated future employer contributions $ 5.2      
Defined Benefit Pension | Overfunded Plan | Domestic Defined Benefit Pension Plans        
Health care plans        
Projected benefit obligation 118.6 103.0 524.7  
Fair value of plan assets 144.3 125.9 777.0  
Excess (deficient) plan assets over projected benefit obligations 25.7 22.9 252.3  
Defined Benefit Pension | Unfunded Plan | Foreign Defined Benefit Pension Plans        
Health care plans        
Accumulated benefit obligation 231.5      
Projected benefit obligation 259.9      
Fair value of plan assets 149.6      
Excess (deficient) plan assets over projected benefit obligations $ (110.3)      
Number of foreign defined benefit pension plans unfunded or underfunded | pension_plan 26      
Postretirement Benefits Other than Pensions        
Health care plans        
Projected benefit obligation $ 291.6 $ 280.5 $ 274.6 $ 290.8
Expected defined benefit payments        
Expected cash payments, 2021 16.1      
Expected cash payments, 2022 16.8      
Expected cash payments, 2023 17.0      
Expected cash payments, 2024 18.3      
Expected cash payments, 2025 18.3      
Expected cash payments, 2026-2030 84.8      
Amortization of actuarial losses 4.7      
Amortization of prior service cost (credit) $ 0.3      
Number of retired employees entitled to receive postretirement benefits | employee 3,465 3,481 3,498  
Defined benefit plan ultimate health care cost trend rate and prescription drug cost increase rate (percentage) 4.50%      
Replacement plan | Defined Benefit Pension        
Health care plans        
Surplus transferred upon termination and replacement   $ 242.2    
Treasury stock, value, transferred from defined benefit plan   $ 131.8    
Shares of company stock included in transfer (in shares) | shares   300,000    
v3.20.4
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 Thousands
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Domestic Defined Benefit Pension Plans      
Net pension cost:      
Service cost $ 4,400 $ 3,500 $ 7,300
Interest cost 3,200 4,800 32,200
Expected return on plan assets (6,300) (5,300) (53,000)
Amortization of prior service cost 1,400 1,400 3,500
Ongoing pension cost (credit) 2,700 4,400 (10,000)
Settlement costs (credits)   32,400 37,600
Curtailment cost     800
Net pension cost 2,700 36,800 28,400
Other changes in plan assets and projected benefit obligation recognized in AOCI (before taxes):      
Net actuarial losses (gains) arising during the year (4,500) (22,000) 29,900
Prior service cost (credit) arising during the year 200 3,100 4,600
Amortization of prior service cost (1,400) (1,400) (3,500)
(Loss) gain recognized for settlement   (32,400) (37,600)
Prior service cost recognized for curtailment     (800)
(Gain) arising from curtailment     (800)
Total recognized in AOCI (5,700) (52,700) (8,200)
Total recognized in net pension cost and AOCI (3,000) (15,900) 20,200
Foreign Defined Benefit Pension Plans      
Net pension cost:      
Service cost 6,800 5,900 8,200
Interest cost 6,900 9,400 9,500
Expected return on plan assets (10,000) (10,300) (10,800)
Amortization of actuarial losses 1,000 1,000 1,500
Ongoing pension cost (credit) 4,700 6,000 8,400
Settlement costs (credits) 200 300 (400)
Net pension cost 4,900 6,300 8,000
Other changes in plan assets and projected benefit obligation recognized in AOCI (before taxes):      
Net actuarial losses (gains) arising during the year 7,000 13,200 (5,100)
Prior service cost (credit) arising during the year (500)    
Amortization of actuarial losses (1,000) (1,000) (1,500)
(Loss) gain recognized for settlement (200) (300) 400
(Gain) arising from curtailment   (700)  
Exchange rate gain (loss) recognized during the year 1,700 1,000 (2,000)
Total recognized in AOCI 7,000 12,200 (8,200)
Total recognized in net pension cost and AOCI $ 11,900 $ 18,500 $ (200)
v3.20.4
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, 2020
Dec. 31, 2019
Dec. 31, 2018
Defined Benefit Plan Disclosure [Line Items]      
Investments in fair value hierarchy $ 356.4 $ 325.7 $ 864.1
Total investments 462.5 414.0 1,030.5
Fair Value Measured at NAV or Equivalent      
Defined Benefit Plan Disclosure [Line Items]      
Investments measured at NAV or its equivalent 106.1 88.3 166.4
Quoted Prices in Active Markets for Identical Assets (Level 1)      
Defined Benefit Plan Disclosure [Line Items]      
Investments in fair value hierarchy 38.2 37.6 586.8
Significant  Other Observable  Inputs (Level 2)      
Defined Benefit Plan Disclosure [Line Items]      
Investments in fair value hierarchy 318.2 288.1 277.3
Equity investments      
Defined Benefit Plan Disclosure [Line Items]      
Investments in fair value hierarchy 134.9 115.7 215.8
Equity investments | Quoted Prices in Active Markets for Identical Assets (Level 1)      
Defined Benefit Plan Disclosure [Line Items]      
Investments in fair value hierarchy 13.9 7.9 124.0
Equity investments | Significant  Other Observable  Inputs (Level 2)      
Defined Benefit Plan Disclosure [Line Items]      
Investments in fair value hierarchy 121.0 107.8 91.8
Fixed income investments      
Defined Benefit Plan Disclosure [Line Items]      
Investments in fair value hierarchy 182.3 173.4 609.9
Fixed income investments | Quoted Prices in Active Markets for Identical Assets (Level 1)      
Defined Benefit Plan Disclosure [Line Items]      
Investments in fair value hierarchy 24.3 29.7 462.8
Fixed income investments | Significant  Other Observable  Inputs (Level 2)      
Defined Benefit Plan Disclosure [Line Items]      
Investments in fair value hierarchy 158.0 143.7 147.1
Other assets      
Defined Benefit Plan Disclosure [Line Items]      
Investments in fair value hierarchy 39.2 36.6 38.4
Other assets | Significant  Other Observable  Inputs (Level 2)      
Defined Benefit Plan Disclosure [Line Items]      
Investments in fair value hierarchy $ 39.2 $ 36.6 $ 38.4
v3.20.4
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, 2020
Dec. 31, 2019
Dec. 31, 2018
Assets and liabilities recognized in the Consolidated Balance Sheets:      
Deferred pension assets $ 53.1 $ 43.0 $ 270.7
Other accruals (1,115.9) (989.1) (1,141.1)
Other long-term liabilities $ (1,373.7) $ (1,196.7) $ (1,009.3)
Domestic Defined Benefit Pension Plans      
Weighted-average assumptions used to determine projected benefit obligations:      
Rate of compensation increase (percentage) 3.00% 3.00% 3.17%
Weighted-average assumptions used to determine net pension cost:      
Rate of compensation increase (percentage) 3.00% 3.17% 3.33%
Foreign Defined Benefit Pension Plans      
Weighted-average assumptions used to determine projected benefit obligations:      
Rate of compensation increase (percentage) 2.91% 3.09% 3.65%
Weighted-average assumptions used to determine net pension cost:      
Rate of compensation increase (percentage) 3.09% 3.65% 3.69%
Defined Benefit Pension      
Plan assets:      
Balances at beginning of year $ 325.7 $ 864.1  
Balances at end of year 356.4 325.7 $ 864.1
Defined Benefit Pension | Domestic Defined Benefit Pension Plans      
Defined Benefit Plan Disclosure [Line Items]      
Accumulated benefit obligations at end of year 114.2 97.2 521.0
Projected benefit obligations:      
Balances at beginning of year 103.0 524.7 916.2
Service cost 4.4 3.5 7.3
Interest cost 3.2 4.8 32.2
Actuarial losses (gains) 11.0 4.4 (13.6)
Contributions and other 0.2 3.1 3.8
Settlements   (429.3) (379.1)
Benefits paid (3.2) (8.2) (42.1)
Balances at end of year 118.6 103.0 524.7
Plan assets:      
Balances at beginning of year 125.9 777.0 1,188.6
Actual returns on plan assets 21.6 31.7 9.6
Settlements   (429.3) (379.1)
Transfer related to plan termination   (245.3)  
Benefits paid (3.2) (8.2) (42.1)
Balances at end of year 144.3 125.9 777.0
Excess (deficient) plan assets over projected benefit obligations 25.7 22.9 252.3
Assets and liabilities recognized in the Consolidated Balance Sheets:      
Deferred pension assets 25.7 22.9 252.3
Total 25.7 22.9 252.3
Amounts recognized in AOCI:      
Net actuarial losses 2.5 (2.0) (56.4)
Prior service costs (6.2) (7.4) (5.7)
Total amounts recognized $ (3.7) $ (9.4) $ (62.1)
Weighted-average assumptions used to determine projected benefit obligations:      
Discount rate 2.85% 3.44% 3.60%
Weighted-average assumptions used to determine net pension cost:      
Discount rate 3.44% 3.60% 3.60%
Expected long-term rate of return on assets (percentage) 5.00% 5.00% 5.00%
Defined Benefit Pension | Foreign Defined Benefit Pension Plans      
Defined Benefit Plan Disclosure [Line Items]      
Accumulated benefit obligations at end of year $ 370.2 $ 331.7 $ 280.0
Projected benefit obligations:      
Balances at beginning of year 360.7 315.8 349.6
Service cost 6.8 5.9 8.2
Interest cost 6.9 9.4 9.5
Actuarial losses (gains) 25.3 36.2 (21.0)
Contributions and other (0.1) 0.7 1.6
Settlements (4.3) (6.6) (6.3)
Effect of foreign exchange 16.0 7.8 (16.3)
Benefits paid (10.2) (8.5) (9.5)
Balances at end of year 401.1 360.7 315.8
Plan assets:      
Balances at beginning of year 288.1 253.5 280.0
Actual returns on plan assets 28.9 33.3 (4.9)
Contributions and other 5.9 7.7 8.3
Settlements (4.3) (6.6) (6.3)
Effect of foreign exchange 9.8 8.7 (14.1)
Benefits paid (10.2) (8.5) (9.5)
Balances at end of year 318.2 288.1 253.5
Excess (deficient) plan assets over projected benefit obligations (82.9) (72.6) (62.3)
Assets and liabilities recognized in the Consolidated Balance Sheets:      
Deferred pension assets 27.4 20.1 18.4
Other accruals (2.5) (2.3) (2.7)
Other long-term liabilities (107.8) (90.4) (78.0)
Total (82.9) (72.6) (62.3)
Amounts recognized in AOCI:      
Net actuarial losses (45.4) (37.9) (25.7)
Prior service costs 0.5    
Total amounts recognized $ (44.9) $ (37.9) $ (25.7)
Weighted-average assumptions used to determine projected benefit obligations:      
Discount rate 1.63% 2.17% 3.04%
Weighted-average assumptions used to determine net pension cost:      
Discount rate 2.17% 3.04% 2.73%
Expected long-term rate of return on assets (percentage) 3.62% 4.09% 3.84%
v3.20.4
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, 2020
Dec. 31, 2019
Dec. 31, 2018
Liabilities recognized in the Consolidated Balance Sheets:      
Other accruals $ (1,115.9) $ (989.1) $ (1,141.1)
Postretirement benefits other than pensions (275.6) (263.0) (257.6)
Postretirement Benefits Other than Pensions      
Benefit obligation:      
Balances at beginning of year 280.5 274.6 290.8
Service cost 1.5 1.5 2.0
Interest cost 7.6 11.2 10.2
Actuarial loss (gain) 19.7 12.8 (9.0)
Plan amendments 1.0 (0.1)
Benefits paid (18.7) (19.6) (19.3)
Balances at end of year 291.6 280.5 274.6
Liabilities recognized in the Consolidated Balance Sheets:      
Other accruals (16.0) (17.5) (17.0)
Postretirement benefits other than pensions (275.6) (263.0) (257.6)
Total liabilities recognized (291.6) (280.5) (274.6)
Amounts recognized in AOCI:      
Net actuarial losses (62.8) (45.1) (32.8)
Prior service (cost) credits (0.9) 1.1 6.1
Total amounts recognized $ (63.7) $ (44.0) $ (26.7)
Weighted-average assumptions used to determine benefit obligation:      
Discount rate 2.49% 3.22% 4.21%
Health care cost trend rate - pre-65 6.06% 6.38% 6.69%
Health care cost trend rate - post-65 5.13% 5.25% 4.94%
Prescription drug cost increases 8.25% 9.00% 9.75%
Employer Group Waiver Plan (EGWP) trend rate 8.25% 9.00% 9.75%
Weighted-average assumptions used to determine net periodic benefit cost:      
Discount rate 3.22% 4.21% 3.61%
Health care cost trend rate - pre-65 6.38% 6.69% 7.00%
Health care cost trend rate - post-65 5.25% 4.94% 5.00%
Prescription drug cost increases 9.00% 9.75% 11.00%
v3.20.4
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, 2020
Dec. 31, 2019
Dec. 31, 2018
Net periodic benefit cost:      
Service cost $ 1.5 $ 1.5 $ 2.0
Interest cost 7.6 11.2 10.2
Amortization of actuarial losses 2.0 0.5 2.3
Amortization of prior service credit (1.1) (5.0) (6.6)
Net periodic benefit cost 10.0 8.2 7.9
Other changes in projected benefit obligation recognized in AOCI (before taxes):      
Net actuarial loss (gain) arising during the year 19.7 12.8 (9.0)
Prior service cost (credit) arising during the year 0.9 (0.1)
Amortization of actuarial losses (2.0) (0.5) (2.3)
Amortization of prior service credit 1.1 5.0 6.6
Total recognized in AOCI 19.7 17.3 (4.8)
Total recognized in net pension cost and AOCI $ 29.7 $ 25.5 $ 3.1
v3.20.4
Pension, Health Care and Other Postretirement Benefits - Expected Retiree Health Care Benefit Cash Payments (Details) - Postretirement Benefits Other than Pensions
$ in Millions
Dec. 31, 2020
USD ($)
Expected Cash Payments  
2021 $ 16.1
2022 16.8
2023 17.0
2024 18.3
2025 18.3
2026 through 2030 84.8
Total expected benefit cash payments $ 171.3
v3.20.4
Leases - Additional Lease Information (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2020
USD ($)
renewal_option
Dec. 31, 2019
USD ($)
Dec. 31, 2018
USD ($)
Leases [Abstract]      
Renewal term | renewal_option 1    
Operating lease cost $ 464.5 $ 452.9 $ 552.7
Short-term lease cost 41.1 39.7  
Variable lease cost 80.7 73.6 $ 68.2
Operating cash outflows from operating leases 446.1 430.9  
Leased assets obtained in exchange for new operating lease liabilities $ 469.9 $ 346.4  
Weighted average remaining lease term for operating leases 6 years 6 years  
Weighted average discount rate for operating leases 3.40% 3.90%  
v3.20.4
Leases - Maturities of Operating Lease Liabilities (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Leases [Abstract]      
2021 $ 441.3    
2022 388.7    
2023 322.6    
2024 260.3    
2025 195.6    
Thereafter 409.2    
Total lease payments 2,017.7    
Amount representing interest (196.3)    
Present value of operating lease liabilities 1,821.4    
Proceeds from real estate financing transactions $ 7.2 $ 225.3
Transactions related to future obligations $ 198.9    
v3.20.4
Other Long-Term Liabilities (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2020
USD ($)
OPERABLE_UNIT
ManufacturingSite
Dec. 31, 2019
USD ($)
Dec. 31, 2018
USD ($)
Loss Contingencies [Line Items]      
Accruals for extended environmental-related activities $ 300.5 $ 314.8 $ 322.5
Estimated costs of current investigation and remediation activities included in other accruals 68.6 $ 57.6 $ 51.0
Amount by which unaccrued maximum of estimated range exceeds minimum $ 114.5    
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 $ 315.0    
Percentage of accrual for environmental-related activities related to sites accounting for the majority of the accrual for environmental-related activities 85.40%    
Amount of unaccrued maximum related to sites accounting for the majority of the accrual for environmental-related activities $ 90.8    
Percentage of aggregate unaccrued maximum related to sites accounting for the majority of the accrual for environmental-related activities 79.30%    
Remaining number of operable units | ManufacturingSite 3    
Environmental costs, remedy implementation      
Loss Contingencies [Line Items]      
Regulatory agency significant cost components liability 85.00%    
Environmental costs, regulatory agency interaction      
Loss Contingencies [Line Items]      
Regulatory agency significant cost components liability 10.00%    
Environmental costs, project management nd other costs      
Loss Contingencies [Line Items]      
Regulatory agency significant cost components liability 5.00%    
NEW JERSEY      
Loss Contingencies [Line Items]      
Number of operable units | OPERABLE_UNIT 6    
v3.20.4
Litigation (Details)
$ in Thousands
 1 Months Ended 12 Months Ended
Apr. 10, 2020
USD ($)
Jul. 17, 2019
USD ($)
option_plan
May 31, 2019
USD ($)
defendant
plaintiff
Oct. 31, 2018
case
Dec. 31, 2020
USD ($)
plaintiff
case
defendant
Dec. 31, 2017
plaintiff
Sep. 22, 2020
USD ($)
Dec. 31, 2019
USD ($)
Santa Clara County, California Proceeding                
Loss Contingencies [Line Items]                
Number of additional defendants | option_plan   2            
Amount awarded to plaintiffs   $ 305,000            
Amount awarded per defendant   101,700            
Initial payment amount   $ 25,000            
Dismissal order and judgment period   60 days            
Subsequent annual payments amount   $ 12,000            
Term of subsequent annual payments   4 years            
Final payment amount   $ 16,700            
Maximum amount agreed to backstop and pay on behalf of other defendant   $ 15,000            
Loss Contingency, Receivable, Current         $ 64,700     $ 76,700
Accrual included in current liabilities             $ 12,000  
Accrual included in long-term liabilities         $ 52,700     $ 64,700
Pennsylvania Proceedings                
Loss Contingencies [Line Items]                
Number of proceedings initiated | case       2        
Ravon Owens v. American Cyanamid, et al., Cesar Sifuentes v. American Cyanamid, et al., and Glenn Burton, Jr. v. American Cyanamid, et al.                
Loss Contingencies [Line Items]                
Number of additional defendants | defendant     2          
Amount awarded to plaintiffs     $ 6,000          
Number of cases consolidated | case         3      
Number of plaintiffs | plaintiff     3          
Amount awarded per plaintiff     $ 2,000          
Loss Contingency, Damages Sought, Value $ 800              
Maniya Allen, et al. v. American Cyanamid, et al.                
Loss Contingencies [Line Items]                
Number of plaintiffs | plaintiff         146      
Number of plaintiffs selected for discovery | plaintiff         6      
Number of cases selected for discovery | case         4      
Dijonae Trammell, et al. v. American Cyanamid, et al.                
Loss Contingencies [Line Items]                
Number of plaintiffs | plaintiff         3      
Number of plaintiffs consolidated with another case | plaintiff         1      
Mary Lewis v. Lead Industries Association, et al.                
Loss Contingencies [Line Items]                
Number of defendants | defendant         3      
Number of plaintiffs whose claims were paid by private insurance or medicaid | plaintiff           3    
Number of plaintiffs whose claims were paid by medicaid | plaintiff           2    
v3.20.4
Capital Stock - Narrative (Details)
Mar. 21, 2021
Feb. 03, 2021
Dec. 31, 2020
shares
Dec. 31, 2019
shares
Dec. 31, 2018
shares
Class of Stock [Line Items]          
Common stock authorized (in shares)     300,000,000    
Preferred stock authorized (in shares)     30,000,000    
Common stock reserved for exercise and future grants of restricted stock (in shares)     7,002,637 8,258,768 9,643,433
Common stock held in revocable trust (in shares)     489,904 489,783 489,647
Forecast          
Class of Stock [Line Items]          
Stock split 2        
Subsequent event          
Class of Stock [Line Items]          
Stock split   3      
2006 Employee Plan          
Class of Stock [Line Items]          
Common shares issuable or transferable (in shares)     23,700,000    
Cumulative Preferred Stock          
Class of Stock [Line Items]          
Preferred stock authorized (in shares)     3,000,000    
Convertible Preferred Stock          
Class of Stock [Line Items]          
Preferred stock authorized (in shares)     1,000,000    
v3.20.4
Capital Stock - Common Shares in Treasury and Common Shares Outstanding (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Reconciliation Of Common Stock And Treasury Stock Balances [Roll Forward]      
Balance (in shares) 92,100,000 93,100,000  
Shares sold (in shares) 275,000    
Balance (in shares) 89,600,000 92,100,000 93,100,000
Proceeds from treasury stock issued $ 182,400
Shares in Treasury      
Reconciliation Of Common Stock And Treasury Stock Balances [Roll Forward]      
Balance (in shares) 27,288,969 25,255,036 23,676,733
Shares tendered as payment for option rights exercised (in shares) 3,380 3,838 1,159
Shares tendered in connection with vesting of restricted stock units (in shares) 44,359 55,095 52,144
Treasury stock purchased (in shares) (3,900,000) (1,675,000) (1,525,000)
Shares transferred from defined benefit pension plan (in shares)   (300,000)  
Treasury stock, retired (in shares) (30,582,144)    
Shares sold (in shares) 275,000    
Balance (in shares) 379,564 27,288,969 25,255,036
Shares Outstanding      
Reconciliation Of Common Stock And Treasury Stock Balances [Roll Forward]      
Balance (in shares) 92,144,839 93,116,762 93,883,645
Shares tendered as payment for option rights exercised (in shares) (3,380) (3,838) (1,159)
Shares issued for exercise of option rights (in shares) 957,882 901,878 661,599
Shares tendered in connection with vesting of restricted stock units (in shares) (44,359) (55,095) (52,144)
Net shares issued for vesting of restricted stock units (in shares) 128,895 160,132 149,821
Treasury stock purchased (in shares) (3,900,000) (1,675,000) (1,525,000)
Shares transferred from defined benefit pension plan (in shares)   (300,000)  
Shares sold (in shares) 275,000    
Balance (in shares) 89,558,877 92,144,839 93,116,762
v3.20.4
ESOP (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2020
USD ($)
employee
shares
Dec. 31, 2019
USD ($)
Dec. 31, 2018
USD ($)
Share-based Payment Arrangement [Abstract]      
Number of employees contributing to company's ESOP | employee 42,219    
Participants percentage contribution on a pretax basis only of their annual compensation (up to the lesser of) 50.00%    
Percentage of matching contribution to ESOP Plan by employer 100.00%    
Percentage of eligible contribution plan up to which employer contributes (up to) 6.00%    
Company contributions to ESOP on behalf of participating employees representing amounts authorized by employees to be withheld from their earnings on pre-tax basis $ 196.5 $ 180.5 $ 170.3
Company's matching contributions to the ESOP $ 120.0 $ 111.9 $ 104.7
Employee stock ownership plan common stock shares held in ESOP (in shares) | shares 7,318,468    
Percentage of total voting shares outstanding held by the ESOP 8.20%    
v3.20.4
Stock-Based Compensation - Narrative (Details)
$ / shares in Units, $ in Millions
 12 Months Ended
Dec. 31, 2020
USD ($)
right
$ / shares
shares
Dec. 31, 2019
USD ($)
$ / shares
shares
Dec. 31, 2018
USD ($)
$ / shares
shares
Dec. 31, 2017
shares
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]        
Unrecognized stock-based compensation expense $ 146.0      
Unrecognized stock-based compensation expense, weighted-average period recognition (in years) 1 year 25 days      
Stock-based compensation expense $ 95.9 $ 101.7 $ 82.6  
Income tax benefit related to stock-based compensation expense 23.6 25.1 20.5  
Effective income tax rate reconciliation, tax expense (benefit), share-based payment arrangement, amount $ 94.7 $ 65.2 $ 43.4  
Expiration period 10 years      
Weighted-average per share fair value of option rights granted during the year (in dollars per share) | $ / shares $ 139.69 $ 116.41 $ 90.86  
Intrinsic value of exercised option rights $ 1,309.1 $ 1,184.0 $ 704.2  
Fair value of options vested $ 51.0 $ 43.2 $ 38.6  
Outstanding option rights (in shares) | shares 3,501,126 4,039,729 4,485,249 4,646,313
Weighted average remaining term for options outstanding 6 years 1 month 13 days 6 years 7 days 6 years 1 month 2 days  
Weighted average remaining term for options exercisable 5 years 21 days 4 years 11 months 12 days 5 years 3 days  
Shares reserved for future grants of option rights restricted stock (in shares) | shares 3,501,511 4,217,446 5,135,822  
Employees        
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]        
Intrinsic value of exercised option rights $ 407.9 $ 285.8 $ 190.2  
Restricted Stock        
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]        
Award vesting period 3 years      
Weighted-average fair value of restricted stock granted during the year (in dollars per share) | $ / shares $ 581.36 $ 432.55 $ 404.08  
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      
Outstanding option rights (in shares) | shares 0 0 0  
Stock Option        
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]        
Unrecognized stock-based compensation expense $ 72.0      
Award vesting period 3 years      
Unrecognized stock-based compensation expense, weighted-average period recognition (in years) 1 year 1 month 6 days      
Vesting percentage 33.00%      
Restricted Stock        
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]        
Vesting percentage 33.00%      
Restricted Stock | Employees        
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]        
Unrecognized stock-based compensation expense $ 72.2      
Unrecognized stock-based compensation expense, weighted-average period recognition (in years) 10 months 28 days      
Restricted Stock | Non-Employee Directors        
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]        
Unrecognized stock-based compensation expense $ 1.8      
Award vesting period 3 years      
Unrecognized stock-based compensation expense, weighted-average period recognition (in years) 10 months 28 days      
2006 Employee Plan        
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]        
Number of shares authorized (in shares) | shares 23,700,000      
Number of appreciation rights, performance shares or performance units granted | right 0      
Nonemployee Director Plan        
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]        
Number of shares authorized (in shares) | shares 200,000      
v3.20.4
Stock-Based Compensation - Weighted-Average Assumptions Used for Estimating the Fair Value of Option Rights (Details)
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Share-based Payment Arrangement [Abstract]      
Risk-free interest rate 0.39% 1.64% 2.99%
Expected life of option rights 5 years 18 days 5 years 18 days 5 years 18 days
Expected dividend yield of stock 0.88% 0.87% 0.89%
Expected volatility of stock 26.70% 23.20% 21.10%
v3.20.4
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, 2020
Dec. 31, 2019
Dec. 31, 2018
Optioned Shares      
Outstanding beginning of year (in shares) 4,039,729 4,485,249 4,646,313
Granted (in shares) 457,931 498,886 565,336
Exercised (in shares) (957,612) (902,166) (662,218)
Forfeited (in shares) (37,905) (40,312) (60,288)
Expired (in shares) (1,017) (1,928) (3,894)
Outstanding end of year (in shares) 3,501,126 4,039,729 4,485,249
Exercisable at end of year (in shares) 2,560,480 2,973,656 3,274,780
Weighted- Average Exercise Price Per Share      
Outstanding beginning of year (in dollars per share) $ 290.45 $ 238.53 $ 204.33
Granted (in dollars per share) 640.16 549.32 410.00
Exercised (in dollars per share) 190.90 171.37 137.03
Forfeited (in dollars per share) 512.40 380.13 327.08
Expired (in dollars per share) 418.65 345.68 238.26
Outstanding end of year (in dollars per share) 361.01 290.45 238.53
Exercisable at end of year (in dollars per share) $ 285.20 $ 226.51 $ 188.48
Aggregate Intrinsic Value      
Outstanding end of year $ 1,309.1 $ 1,184.0 $ 704.2
Exercisable at end of year $ 1,151.5 $ 1,061.7 $ 671.3
v3.20.4
Stock-Based Compensation - Summary of RSU Activity (Details) - Restricted Stock - shares
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Summary of the Company's restricted stock activity      
Outstanding at beginning of year (in shares) 248,172 290,402 335,796
Granted (in shares) 95,973 131,275 116,636
Vested (in shares) (128,895) (168,730) (150,576)
Forfeited (in shares) (6,789) (4,775) (11,454)
Outstanding at end of year (in shares) 208,461 248,172 290,402
v3.20.4
Accumulated Other Comprehensive Loss (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
AOCI Including Portion Attributable to Noncontrolling Interest [Abstract]        
Beginning balance $ 4,123.3 $ 3,730.7 $ 3,647.9  
Amounts recognized in AOCI (33.5) (54.9) (267.8)  
Amounts reclassified from AOCI (5.3) 13.6 25.1  
Ending balance $ 3,610.8 $ 4,123.3 $ 3,730.7 $ 3,647.9
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Cumulative Effect, Period of Adoption, Adjustment        
AOCI Including Portion Attributable to Noncontrolling Interest [Abstract]        
Beginning balance $ (3.0)   $ 0.0  
Ending balance   $ (3.0)   $ 0.0
Foreign Currency Translation Adjustments        
AOCI Including Portion Attributable to Noncontrolling Interest [Abstract]        
Beginning balance (657.4) (607.6) (353.3)  
Amounts recognized in AOCI (14.1) (49.8) (254.3)  
Ending balance (671.5) (657.4) (607.6) (353.3)
Pension and Other Postretirement Benefits Adjustments        
AOCI Including Portion Attributable to Noncontrolling Interest [Abstract]        
Beginning balance (69.2) (67.1) (84.9)  
Amounts recognized in AOCI (19.4) (5.1) (13.5)  
Amounts reclassified from AOCI 1.4 22.3 31.3  
Ending balance (87.2) (69.2) (67.1) (84.9)
Pension and Other Postretirement Benefits Adjustments | Cumulative Effect, Period of Adoption, Adjustment        
AOCI Including Portion Attributable to Noncontrolling Interest [Abstract]        
Beginning balance (19.3)      
Ending balance   (19.3)    
Unrealized Net Gains on Available-for-Sale Securities        
AOCI Including Portion Attributable to Noncontrolling Interest [Abstract]        
Beginning balance 0.0 0.0 2.3  
Ending balance 0.0 0.0 0.0 2.3
Unrealized Net Gains on Available-for-Sale Securities | Cumulative Effect, Period of Adoption, Adjustment        
AOCI Including Portion Attributable to Noncontrolling Interest [Abstract]        
Beginning balance   (2.3)    
Ending balance     (2.3)  
Unrealized Net Gains on Cash Flow Hedges        
AOCI Including Portion Attributable to Noncontrolling Interest [Abstract]        
Beginning balance 47.1 44.8 51.0  
Amounts reclassified from AOCI (6.7) (8.7) (6.2)  
Ending balance 40.4 47.1 44.8 51.0
Unrealized Net Gains on Cash Flow Hedges | Cumulative Effect, Period of Adoption, Adjustment        
AOCI Including Portion Attributable to Noncontrolling Interest [Abstract]        
Beginning balance 11.0      
Ending balance   11.0    
Total        
AOCI Including Portion Attributable to Noncontrolling Interest [Abstract]        
Beginning balance (679.5) (629.9) (384.9)  
Ending balance (718.3) (679.5) (629.9) (384.9)
Total | Cumulative Effect, Period of Adoption, Adjustment        
AOCI Including Portion Attributable to Noncontrolling Interest [Abstract]        
Beginning balance $ (8.3) (2.3) (2.3)  
Ending balance   $ (8.3) $ (2.3) $ (2.3)
v3.20.4
DERIVATIVES AND HEDGING (Details)
 1 Months Ended 12 Months Ended
Feb. 29, 2020
USD ($)
derivativeInstrument
Dec. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Derivative [Line Items]      
Number of derivative instruments held | derivativeInstrument 2    
Gain on foreign currency translation adjustments recognized in AOCI $ 11,800,000    
Change in unrealized gain (loss) on foreign currency fair value hedging instruments   $ 54,000,000.0 $ 1,100,000
Euro Cross Currency Swap 1      
Derivative [Line Items]      
Notional amount 500,000,000.0    
Euro Cross Currency Swap 2      
Derivative [Line Items]      
Notional amount 244,000,000.0    
Cross Currency Swap Contract      
Derivative [Line Items]      
Notional amount $ 400,000,000.0    
Derivative liability   85,800,000  
Derivative asset     $ 1,500,000
Cross Currency Swap Contract | Other accruals      
Derivative [Line Items]      
Derivative liability   31,000,000.0  
Cross Currency Swap Contract | Other liabilities      
Derivative [Line Items]      
Derivative liability   $ 54,800,000  
v3.20.4
Fair Value Measurements (Details) - Fair Value, Measurements, Recurring
$ in Millions
Dec. 31, 2020
USD ($)
Fair Value  
Assets:  
Total assets $ 230.7
Liabilities:  
Deferred compensation plan liabilities 92.2
Net investment hedge liability 85.8
Total liabilities 178.0
Fair Value | Deferred Compensation Plan Assets  
Assets:  
Debt securities 69.2
Fair Value | Qualified Replacement Plan Assets  
Assets:  
Debt securities 161.5
Quoted Prices in Active Markets for Identical Assets (Level 1)  
Assets:  
Total assets 199.4
Liabilities:  
Deferred compensation plan liabilities 92.2
Total liabilities 92.2
Quoted Prices in Active Markets for Identical Assets (Level 1) | Deferred Compensation Plan Assets  
Assets:  
Debt securities 37.9
Quoted Prices in Active Markets for Identical Assets (Level 1) | Qualified Replacement Plan Assets  
Assets:  
Debt securities 161.5
Significant  Other Observable  Inputs (Level 2)  
Assets:  
Total assets 31.3
Liabilities:  
Deferred compensation plan liabilities
Net investment hedge liability 85.8
Total liabilities 85.8
Significant  Other Observable  Inputs (Level 2) | Deferred Compensation Plan Assets  
Assets:  
Debt securities 31.3
Liabilities:  
Cost basis of investment funds 58.1
Significant  Other Observable  Inputs (Level 2) | Qualified Replacement Plan Assets  
Liabilities:  
Cost basis of investment funds 159.6
Significant Unobservable Inputs (Level 3)  
Assets:  
Total assets 0.0
Liabilities:  
Total liabilities $ 0.0
v3.20.4
Fair Value Measurements - Carrying Amount and Fair Value of Debt (Details) - USD ($)
$ in Millions
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Publicly traded debt | Carrying Amount      
Debt Instrument [Line Items]      
Debt fair value $ 8,265.2 $ 8,203.2 $ 8,731.7
Publicly traded debt | Fair Value      
Debt Instrument [Line Items]      
Debt fair value 9,707.0 8,735.8 8,330.2
Non-traded debt | Carrying Amount      
Debt Instrument [Line Items]      
Debt fair value 26.8 277.3 283.6
Non-traded debt | Fair Value      
Debt Instrument [Line Items]      
Debt fair value $ 26.5 $ 270.7 $ 272.7
v3.20.4
Revenue - Accounts Receivable and Current and Long-Term Contract Assets and Liabilities (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Revenue from Contract with Customer [Abstract]      
Payment terms 30 and 60 days    
Accounts Receivable, Less Allowance $ 2,078.1 $ 2,088.9 $ 2,018.8
Contract Assets (Current) 52.0 50.5  
Contract Assets (Long-Term) 170.7 178.2  
Contract Liabilities (Current) 266.3 242.8  
Contract Liabilities (Long-Term) $ 8.2 $ 10.4  
v3.20.4
Revenue - Allowance For Doubtful Accounts (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2017
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]        
Beginning balance $ 36.5 $ 45.9 $ 53.0  
Bad debt expense 56.8 53.1 38.2  
Uncollectible accounts written off, net of recoveries (42.8) (62.5) (45.3)  
Ending balance $ 53.5 $ 36.5 $ 45.9 $ 53.0
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Cumulative Effect, Period of Adoption, Adjustment        
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]        
Ending balance $ 3.0      
v3.20.4
Other Expense (Income) - Other General Expense, Net (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Other Income and Expenses [Abstract]      
Provisions for environmental matters - net $ 37.1 $ 23.0 $ 176.3
(Gain) loss on sale or disposition of assets (9.4) 16.1 12.8
Total $ 27.7 $ 39.1 $ 189.1
v3.20.4
Other Expense (Income) - Other Expense, Net (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Other Income and Expenses [Abstract]      
Investment and royalty income $ (16.4) $ (12.0) $ (4.3)
Loss on extinguishment of debt 21.3 14.8
Net expense from banking activities 10.4 10.7 9.7
Foreign currency transaction related losses 7.2 19.7 7.5
Domestic pension plan settlement expense 32.4 37.6
Miscellaneous pension expense (income) 4.9 8.0 (10.8)
Indirect tax credits (38.7)
Other income (44.7) (32.8) (32.2)
Other expense 22.6 14.6 12.6
Total $ 5.3 $ 16.7 $ 20.1
v3.20.4
Other Expense (Income) - Narrative (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2020
USD ($)
option_plan
Dec. 31, 2019
USD ($)
option_plan
Dec. 31, 2018
USD ($)
option_plan
Tax Credit Carryforward [Line Items]      
Number of foreign currency option outstanding | option_plan 0 0 0
Number of foreign forward contracts outstanding | option_plan 0 0 0
Indirect tax credits | $ $ 38.7
Brazil      
Tax Credit Carryforward [Line Items]      
Indirect tax credits | $ $ (33.5)    
v3.20.4
Income Taxes - Narrative (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Jun. 30, 2018
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Business Acquisition [Line Items]        
Valuation reserves for other deferred tax assets   $ 104.6 $ 84.6 $ 73.5
Income tax benefit related to foreign derived intangible income   12.0 10.4 8.6
Income tax expense related to Global Intangible Low Taxed Income   7.0 7.9 5.5
Unrecognized tax benefits adjusted   216.3 195.3 83.0
Amount of unrecognized tax benefits where significant change is reasonably possible   16.8    
Income tax interest and penalties   4.0 1.6 4.9
Accrued income tax interest and penalties   30.3 26.2 $ 24.8
Domestic        
Business Acquisition [Line Items]        
Net operating loss carryforward   19.4    
Foreign        
Business Acquisition [Line Items]        
Net operating loss carryforward   355.7    
Foreign tax credits   $ 22.5    
Valspar        
Business Acquisition [Line Items]        
Provisional reduction of income taxes $ 27.5      
Adjustment        
Business Acquisition [Line Items]        
Tax credit     $ 74.3  
v3.20.4
Income Taxes - Significant Components of Deferred Tax Assets and Liabilities (Details) - USD ($)
$ in Millions
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Deferred tax assets:      
Environmental and other similar items $ 82.9 $ 83.5 $ 84.5
Employee related and benefit items 166.6 129.3 97.0
Operating lease liabilities 448.9 430.6  
Other items 232.8 204.0 161.6
Total deferred tax assets 931.2 847.4 343.1
Deferred tax liabilities:      
Intangible assets and Property, plant, and equipment 1,156.4 1,232.6 1,303.6
LIFO inventories 87.6 80.5 64.5
Operating lease right-of-use assets 434.0 417.8  
Other items 31.7 28.1 29.5
Total deferred tax liabilities 1,709.7 1,759.0 1,397.6
Net deferred tax liabilities $ 778.5 $ 911.6 $ 1,054.5
v3.20.4
Income Taxes - Significant Components of the Provisions for Income Taxes (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Current:      
Federal $ 457.7 $ 440.1 $ 288.8
Foreign 92.0 71.1 53.2
State and local 84.4 60.4 52.4
Total current 634.1 571.6 394.4
Deferred:      
Federal (102.7) (83.7) (102.1)
Foreign (19.0) (32.3) (35.3)
State and local (23.6) (15.1) (6.0)
Total deferred (145.3) (131.1) (143.4)
Total provisions for income taxes $ 488.8 $ 440.5 $ 251.0
v3.20.4
Income Taxes - Significant Components of Income Before Income Taxes as Used for Income Tax Purposes (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Components of income before income taxes as used for income tax purposes      
Domestic $ 2,317.9 $ 1,899.6 $ 1,309.3
Foreign 201.3 82.2 50.4
Income before income taxes $ 2,519.2 $ 1,981.8 $ 1,359.7
v3.20.4
Income Taxes - Reconciliation of the Statutory Federal Income Tax Rate to the Effective Tax Rate (Details)
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Reconciliation of the statutory federal income tax rate to the effective tax rate      
Statutory federal income tax rate 21.00% 21.00% 21.00%
Effect of:      
State and local income taxes 2.50% 2.30% 3.20%
Investment vehicles (0.80%) (1.30%) (1.20%)
Employee share-based payments (3.80%) (3.30%) (3.20%)
Research and development credits (0.50%) (1.10%) (1.30%)
Amended returns and refunds 0.30% 0.10% (1.60%)
Tax credit reversal   3.70%  
Other - net 0.70% 0.80% (0.30%)
Pre-adjusted effective tax rate 19.40% 22.20% 16.60%
Effect of Tax Act     0.019
Reported effective tax rate 19.40% 22.20% 18.50%
v3.20.4
Income Taxes - Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefits (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Reconciliation of unrecognized tax benefits      
Balance at beginning of year $ 203.0 $ 89.5 $ 59.0
Additions from the Valspar acquisition 12.4
Additions based on tax positions related to the current year 13.8 14.9 12.9
Additions for tax positions of prior years 16.4 107.9 11.0
Reductions for tax positions of prior years (3.3) (3.6) (2.0)
Settlements (2.0) (1.4)
Lapses of statutes of limitations (0.9) (5.7) (2.4)
Balance at end of year $ 227.0 $ 203.0 $ 89.5
v3.20.4
Net Income Per Share (Details) - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended 12 Months Ended
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Basic                      
Net income $ 407.0 $ 705.8 $ 595.9 $ 321.7 $ 248.6 $ 576.5 $ 471.0 $ 245.2 $ 2,030.4 $ 1,541.3 $ 1,108.7
Average common shares outstanding (in shares)                 90,425,861 91,803,528 92,992,457
Basic (in dollars per share) $ 4.54 $ 7.80 $ 6.59 $ 3.53 $ 2.71 $ 6.28 $ 5.13 $ 2.67 $ 22.45 $ 16.79 $ 11.92
Diluted                      
Net income $ 407.0 $ 705.8 $ 595.9 $ 321.7 $ 248.6 $ 576.5 $ 471.0 $ 245.2 $ 2,030.4 $ 1,541.3 $ 1,108.7
Average shares outstanding assuming dilution:                      
Average common shares outstanding (in shares)                 90,425,861 91,803,528 92,992,457
Stock options and other contingently issuable shares (in shares)                 1,501,142 1,601,213 1,938,586
Non-vested restricted stock grants (in shares)                 15,620 42,101 57,027
Average common shares outstanding assuming dilution (in shares)                 91,942,623 93,446,842 94,988,070
Diluted (in dollars per share) $ 4.46 $ 7.66 $ 6.48 $ 3.46 $ 2.66 $ 6.16 $ 5.03 $ 2.62 $ 22.08 $ 16.49 $ 11.67
Net Income Per Common Share (Textual) [Abstract]                      
Anti-dilutive shares (in shares)                 318,947 449,167 28,321
v3.20.4
Reportable Segment Information - Narrative (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2020
USD ($)
store
segment
branch
foreign_country
option_plan
Dec. 31, 2019
USD ($)
store
Dec. 31, 2018
USD ($)
store
Segment Reporting Information [Line Items]      
Number of reporting segments | segment 3    
Number of operating segments | segment 3    
Long lived assets | $ $ 15,810.0 $ 15,865.0 $ 14,790.0
Identifiable assets | $ $ 20,401.6 $ 20,496.2 $ 19,134.3
Percent of assets of consolidated foreign subsidiaries to Company's assets 23.70% 23.60% 25.10%
Non-US      
Segment Reporting Information [Line Items]      
Net external sales | $ $ 3,581.0 $ 3,679.0 $ 4,028.0
Long lived assets | $ 3,167.0 3,211.0 3,290.0
Identifiable assets | $ $ 4,834.0 $ 4,829.0 $ 4,809.0
The Americas Group      
Segment Reporting Information [Line Items]      
Number of company-operated stores 4,774    
Number of subsidiaries in foreign countries | foreign_country 10    
Number of net new stores 16 62 76
New stores opened 56    
Number of stores closed 40    
The Americas Group | United States      
Segment Reporting Information [Line Items]      
New stores opened 53    
Number of stores closed 10    
The Americas Group | Canada      
Segment Reporting Information [Line Items]      
New stores opened 1    
Number of stores closed | option_plan 6    
The Americas Group | South America      
Segment Reporting Information [Line Items]      
New stores opened 1    
Number of stores closed 17    
The Americas Group | Mexico      
Segment Reporting Information [Line Items]      
New stores opened | option_plan 1    
Number of stores closed 7    
Consumer Brands Group      
Segment Reporting Information [Line Items]      
Number of subsidiaries in foreign countries | foreign_country 6    
Percent of sales of one group including intersegment transfers represented products sold through other stores group 55.00%    
Performance Coatings Group      
Segment Reporting Information [Line Items]      
Number of company-operated stores | branch 282    
Number of subsidiaries in foreign countries | foreign_country 44    
New stores opened | branch 1    
Net decrease in stores | branch (1)    
v3.20.4
Reportable Segment Information - Reportable Segment Financial Information (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Segment Reporting Information [Line Items]                      
Net sales $ 4,488,800 $ 5,122,200 $ 4,604,000 $ 4,146,700 $ 4,114,400 $ 4,867,700 $ 4,877,800 $ 4,040,900 $ 18,361,700 $ 17,900,800 $ 17,534,500
Segment profit                 3,373,800 2,808,800 2,611,600
California litigation expense                 0 34,700 (136,300)
Interest expense                 (340,400) (349,300) (366,700)
Administrative expenses and other                 (514,200) (512,400) (748,900)
Income before income taxes                 2,519,200 1,981,800 1,359,700
Identifiable assets 20,401,600       20,496,200       20,401,600 20,496,200 19,134,300
Capital expenditures                 303,800 328,900 251,000
Depreciation                 268,000 262,100 278,200
Amortization                 313,400 312,800 318,100
Administrative                      
Segment Reporting Information [Line Items]                      
Net sales                 2,700 2,900 3,900
Corporate and eliminations                      
Segment Reporting Information [Line Items]                      
Net sales                 (3,822,800) (3,720,300) (3,479,200)
California litigation expense                   34,700 (136,300)
Interest expense                 (340,400) (349,300) (366,700)
Administrative expenses and other                 (514,200) (512,400) (748,900)
Income before income taxes                 (854,600) (827,000) (1,251,900)
Identifiable assets 1,556,500       1,320,700       1,556,500 1,320,700 1,142,900
Capital expenditures                 107,100 38,000 25,000
Depreciation                 38,300 37,900 39,500
Amortization                 5,000 4,800 5,100
Intersegment transfers                      
Segment Reporting Information [Line Items]                      
Net sales                 3,825,500 (3,723,200) (3,483,100)
The Americas Group                      
Segment Reporting Information [Line Items]                      
Net sales                 10,383,200 10,171,900 9,625,100
The Americas Group | Intersegment transfers                      
Segment Reporting Information [Line Items]                      
Net sales                     500
The Americas Group | Operating Segments                      
Segment Reporting Information [Line Items]                      
Net sales                 10,383,200 10,171,900 9,625,600
Segment profit                 2,294,100 2,056,500 1,898,400
Income before income taxes                 $ 2,294,100 $ 2,056,500 $ 1,898,400
% to net external sales                 22.10% 20.20% 19.70%
Identifiable assets 5,386,600       5,399,100       $ 5,386,600 $ 5,399,100 $ 4,070,900
Capital expenditures                 63,900 73,300 69,500
Depreciation                 73,000 72,200 72,300
Amortization                 4,500 4,800 4,800
Consumer Brands Group                      
Segment Reporting Information [Line Items]                      
Net sales                 3,053,400 2,676,800 2,739,100
Consumer Brands Group | Intersegment transfers                      
Segment Reporting Information [Line Items]                      
Net sales                 (3,688,400) (3,607,000) 3,460,200
Consumer Brands Group | Operating Segments                      
Segment Reporting Information [Line Items]                      
Net sales                 6,741,800 6,283,800 6,199,300
Segment profit                 579,600 373,200 261,100
Income before income taxes                 $ 579,600 $ 373,200 $ 261,100
% to net external sales                 19.00% 13.90% 9.50%
Identifiable assets 5,387,400       5,600,800       $ 5,387,400 $ 5,600,800 $ 5,385,300
Capital expenditures                 89,800 133,400 95,700
Depreciation                 87,600 81,100 88,800
Amortization                 90,000 90,300 97,500
Performance Coatings Group                      
Segment Reporting Information [Line Items]                      
Net sales                 4,922,400 5,049,200 5,166,400
Performance Coatings Group | Intersegment transfers                      
Segment Reporting Information [Line Items]                      
Net sales                 (137,100) (116,200) 22,400
Performance Coatings Group | Operating Segments                      
Segment Reporting Information [Line Items]                      
Net sales                 5,059,500 5,165,400 5,188,800
Segment profit                 500,100 379,100 452,100
Income before income taxes                 $ 500,100 $ 379,100 $ 452,100
% to net external sales                 10.20% 7.50% 8.80%
Identifiable assets $ 8,071,100       $ 8,175,600       $ 8,071,100 $ 8,175,600 $ 8,535,200
Capital expenditures                 43,000 84,200 60,800
Depreciation                 69,100 70,900 77,600
Amortization                 $ 213,900 $ 212,900 $ 210,700
v3.20.4
Summary of Quarterly Results of Operations (Unaudited) (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Selected Quarterly Financial Information [Abstract]                      
Net sales $ 4,488,800 $ 5,122,200 $ 4,604,000 $ 4,146,700 $ 4,114,400 $ 4,867,700 $ 4,877,800 $ 4,040,900 $ 18,361,700 $ 17,900,800 $ 17,534,500
Gross profit 2,128,700 2,455,300 2,208,900 1,889,700 1,894,000 2,225,600 2,181,400 1,735,100 8,682,600 8,036,100 7,418,600
Net income $ 407,000 $ 705,800 $ 595,900 $ 321,700 $ 248,600 $ 576,500 $ 471,000 $ 245,200 $ 2,030,400 $ 1,541,300 $ 1,108,700
Net income per share:                      
Basic (in dollars per share) $ 4.54 $ 7.80 $ 6.59 $ 3.53 $ 2.71 $ 6.28 $ 5.13 $ 2.67 $ 22.45 $ 16.79 $ 11.92
Diluted (in dollars per share) $ 4.46 $ 7.66 $ 6.48 $ 3.46 $ 2.66 $ 6.16 $ 5.03 $ 2.62 $ 22.08 $ 16.49 $ 11.67
v3.20.4
Valuation and Qualifying Accounts and Reserves (Schedule II) (Details) - Deferred Tax Asset Valuation Allowance - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]      
Beginning balance $ 84.6 $ 73.5 $ 44.1
Additions (deductions) 20.0 7.4 10.6
Acquired balances 0.0 3.7 18.8
Ending balance $ 104.6 $ 84.6 $ 73.5