Sherwin-Williams plans to expand its footprint by opening 80 to 100 new stores in the United States and Canada in 2024, demonstrating a commitment to organic growth. This expansion will increase market presence and accessibility.

The acquisition of SIC Holding GmbH expands the company's portfolio in foil coatings and industrial wood coatings. This strategic move enhances the company's technological capabilities and market reach.

The divestiture of the non-core domestic aerosol business and China architectural business allows the company to focus on core operations and strategic priorities. This streamlining enhances operational efficiency and resource allocation.

The company generated $3.522 billion in net operating cash, primarily due to higher net income and improved working capital management. This indicates effective management of cash flow and operational efficiency.

The company continues to invest in customer-focused innovation, demonstrating a commitment to meeting customer needs and driving future growth. This investment enhances product offerings and market competitiveness.

The company faces the challenge of refinancing $1.100 billion in long-term debt at higher interest rates. This will increase interest expense and impact future profitability.

The company anticipates continued inflationary pressure in 2024, particularly in housing markets. This may reduce demand for some of the company's products and negatively affect sales and earnings.

Unexpected shortages and increases in the cost of raw materials and energy may adversely affect the company's earnings or cash flow. This risk highlights the vulnerability of the company to external factors.

The company relies on information technology systems to conduct its business, and these systems are vulnerable to cyber attacks and security breaches. Such incidents could disrupt operations and have a material adverse effect on the company's business.

The company faces substantial competition from many international, national, regional, and local competitors of various sizes in the manufacture, distribution, and sale of paint, coatings, and related products. This ongoing competition may reduce sales and earnings.

Failure to keep pace with developments in key competitive areas of our business may reduce our sales and adversely affect our earnings or cash flow by resulting in decreased sales volumes, reduced prices and increased costs of manufacturing, distributing and selling our products.

Our results of operations, cash flow or financial condition may be negatively impacted if we do not successfully integrate past and future acquisitions into our existing operations and if the performance of the businesses we acquire do not meet our expectations.

Consolidated SG&A increased by $733.8 million compared to the same period in 2022 primarily due to increased employee-related expenses, including incentive-based compensation expense, expenses to support higher sales levels and net new store openings.

In 2023, certain manufacturing and distribution costs (excluding raw materials) incurred within the Consumer Brands Group were in excess of the Company's standard conversion cost estimates established at the beginning of the year.

Capital expenditures during 2023 in the Paint Stores Group were primarily attributable to the opening of new paint stores and renovations and improvements in existing stores. In the Consumer Brands Group and the Performance Coatings Group, capital expenditures during 2023 were primarily related to ongoing environmental compliance measures, manufacturing capacity expansion, operational efficiencies and maintenance projects at sites currently in operation.

The Paint Stores Group's SG&A increased $401.4 million for the year due primarily to higher employee-related expenses, increased spending from new store openings, higher costs to serve customers, increased investments in technologies and costs to support higher sales levels, including the hiring of additional sales representatives.

We use various controls, technologies, and other processes designed to identify, protect against, detect, respond to and mitigate cybersecurity risks, in alignment with frameworks established by the National Institute of Standards and Technology (NIST).

providing annual training for all employees (with more enhanced or frequent training based on role or responsibility), assessing the continued appropriateness of relevant insurance coverage and strengthening our controls and procedures to identify, detect, protect against, respond to and mitigate these threats.

The company returned $2.056 billion to shareholders in the form of cash dividends and share repurchases during the year, reflecting a commitment to shareholder value.

We have plans to continue to invest in the construction of new facilities, including our new global headquarters in downtown Cleveland, Ohio and new research and development center in the Cleveland suburb of Brecksville, and in the expansion of certain existing manufacturing and distribution facilities.

Long-term debt maturities due in 2024 are $1.100 billion and are expected to be refinanced at higher interest rates. This will increase interest expense and impact future profitability.

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.

During 2023, environmental-related liabilities increased $28.5 million to $318.9 million at December 31, 2023 primarily due to new information which impacted the estimate of required remediation at certain Major Sites and other Company locations.

We have adopted a Code of Conduct, which applies to all directors, officers and employees, including our principal executive officer, principal financial officer, principal accounting officer or controller, and persons performing similar functions, of Sherwin-Williams and our subsidiaries wherever located.

Within Paint Stores Group and Consumer Brands Group, we anticipate continued inflationary pressure in 2024 to impact consumer behavior in both the United States and Europe, particularly in housing markets.

We expect inflationary pressure to continue to impact consumer and manufacturing customer behavior during 2024, including in the United States housing market as a result of elevated mortgage rates and in global industrial markets as a result of softer demand.

International, national, and regional laws, regulations, and policies that have the effect of restricting global trade and markets and restricting the import and export of products, services and technology, or those of our customers, or for the benefit of favored industries or sectors, could interfere with our operations, supply chain, manufacturing costs and customer relationships and harm our business.