The Paint Stores Group opened 84 new stores and closed 5 locations, resulting in a net increase of 79 stores. The Consumer Brands Group opened 18 new stores and closed 2 locations, resulting in a net increase of 16 new stores.

The Performance Coatings Group acquired a metal packaging coatings business for approximately $80 million, expanding its product offerings and market reach. The company also signed an agreement to acquire a European coil and industrial coatings company.

The Company completed the divestiture of a non-core domestic aerosol business within the Consumer Brands Group, generating a gain of $20.1 million. This move aligns with the company's strategy to focus on core operations and improve efficiency.

Selling, general and administrative (SG&A) expenses increased by 5.0% due to investments in long-term growth strategies, including expenses to support net new store openings and digital technologies and higher employee-related costs.

The company has a strong liquidity position, with $210.4 million in cash and $3.274 billion of unused capacity under its credit facilities. The capital deployment strategy remains balanced and consistent, with a target debt-to-EBITDA leverage ratio of 2 to 2.5 times.

Construction of the Company's new global headquarters and R&D center is expected to be completed in 2025, leading to additional costs of approximately $100 million, including approximately $80 million of Selling, general and administrative expenses and approximately $20 million of Interest expense.

Protracted duration of economic downturns in cyclical segments of the economy may depress the demand for some of our products and adversely affect our sales, earnings, cash flow or financial condition.

Unexpected shortages and increases in the cost of raw materials and energy may adversely affect our earnings or cash flow.

Disruptions to our information technology systems, including due to digitization efforts or cybersecurity incidents, may interfere with our operating and financial processes, result in the compromise or loss of critical and confidential information and severely harm our business.

Increased competition or failure to keep pace with developments in key competitive areas of our business may reduce our sales, earnings or cash flow performance.

Although we have an extensive customer base, the loss of any of our largest customers could adversely affect our sales, earnings or cash flow.

Policy changes affecting international trade could adversely impact the demand for our products and our competitive position.

Catastrophic events, adverse weather conditions and natural disasters (including those that may be related to climate change or otherwise) may temporarily reduce the demand for some of our products, impact our ability to meet the demand for our products or cause supply chain disruptions and increased costs, and could have a negative effect on our sales, earnings or cash flow.

Unexpected shortages and increases in the cost of raw materials and energy may adversely affect our earnings or cash flow.

A number of factors may adversely affect the labor force available to us or increase labor costs generally, including high employment levels, population migration, unemployment programs and subsidies, immigration laws and volatility in general macroeconomic factors impacting the labor market.

Disruptions to our information technology systems, including due to digitization efforts or cybersecurity incidents, may interfere with our operating and financial processes, result in the compromise or loss of critical and confidential information and severely harm our business.

Increased competition or failure to keep pace with developments in key competitive areas of our business may reduce our sales, earnings or cash flow performance.

In connection with our digitization initiative, we have begun a multi-year phased process to upgrade and harmonize certain components of our information technology systems, including our financial processing systems. We are making significant investments in this complex, enterprise-wide initiative.

Our capital deployment strategy remains balanced and consistent. We have a strong liquidity position, with $210.4 million in cash and $3.274 billion of unused capacity under our credit facilities at December 31, 2024 and expect to end 2025 within our target debt-to-EBITDA leverage ratio of 2 to 2.5 times.

The Company also returned cash of $2.462 billion to shareholders in the form of cash dividends and share repurchases during the year.

In 2025, the Company expects to spend slightly less than 2024 for capital expenditures, which it will fund primarily through the generation of operating cash. Core capital expenditures are expected to be for investments in various productivity improvement and maintenance projects at existing manufacturing, distribution and research and development facilities and new store openings.

We may not achieve our strategies or expectations relating to sustainability considerations, which could expose us to potential liabilities, increased costs, reputational harm and other adverse effects on our business.

Our business, reputation, image and brands could be damaged by negative publicity.

We are required to comply with, and may become subject to additional, numerous complex and increasingly stringent domestic and foreign health, safety and environmental laws, regulations and requirements, the cost of which is likely to increase and may adversely affect our results of operations, cash flow or financial condition.

We operate all over the world serving customers in more than 120 countries. Our business, operations and business plans and strategies are sensitive to global and regional business and economic conditions.

Policy changes affecting international trade could adversely impact the demand for our products and our competitive position.

Fluctuations in foreign currency exchange rates and changing monetary policies could adversely affect our results of operations, cash flow, liquidity or financial condition.