The Company signed an agreement to acquire the Brazilian decorative paints business of BASF SE, which is a leading provider of architectural paints in Brazil with annual sales of approximately $525 million. The transaction is subject to regulatory approval and customary closing conditions.

In March 2025, the Company completed the acquisition of a European coil and industrial coatings company for approximately $80 million. The acquired business is reported within the Company's Performance Coatings Group.

Capital expenditures primarily represented expenditures related to construction activities associated with the new global headquarters and research and development (R&D) center in the Administrative function. Construction of the new global headquarters and R&D center is expected to be complete in 2025.

Consolidated Selling, general and administrative expenses (SG&A) decreased $6.0 million primarily due to effective cost control in managing the operations of the business and currency translation rate changes, partially offset by modestly higher employee-related costs.

The Company has a strong liquidity position, with $199.8 million in cash and $2.148 billion of unused capacity under its credit facilities at March 31, 2025. The Company is, and expects to remain, in compliance with bank covenants.

We remain well-positioned in each of our targeted markets and continue to prioritize initiatives such as new stores and digital technologies that we believe will allow us to generate sustained and profitable above-market growth in an increasingly uncertain and competitive landscape.

During the three months ended March 31, 2025, there were no material changes to our previously disclosed risk factors, which are detailed in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2024.

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.

Due to the uncertainties involved in litigation, management is unable to predict the outcome of the litigation identified below, 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.

Net sales in the Paint Stores Group increased by 2.3% primarily due to selling price increases, which impacted Net sales by a mid-single digit percentage, partially offset by a low-single digit percentage decrease in sales volume.

increased competition or failure to keep pace with developments in key competitive areas of our business

In a macro-economic environment that remains turbulent, we are focused on being a source of stability and reliability for our customers. Our differentiated strategy, Success by Design, has not changed as we seek to provide our customers with solutions that increase their productivity and profitability.

Consolidated Selling, general and administrative expenses (SG&A) decreased $6.0 million primarily due to effective cost control in managing the operations of the business and currency translation rate changes, partially offset by modestly higher employee-related costs.

Consolidated Cost of goods sold decreased $89.7 million, or 3.2%, primarily due to a low-single digit decrease in volume and currency translation rate changes.

Core capital expenditures, which exclude expenditures associated with the new global headquarters and R&D center, are expected to be for investments in various productivity improvement and maintenance projects at existing manufacturing, distribution and R&D facilities and new store openings.

We remain well-positioned in each of our targeted markets and continue to prioritize initiatives such as new stores and digital technologies that we believe will allow us to generate sustained and profitable above-market growth.

The Administrative function's SG&A decreased $21.0 million primarily due to effective cost control in managing the operations of the business, including spending on digital project investments and lower employee-related costs.

disruptions to our information technology systems, including due to digitization efforts or cybersecurity incidents

The Company returned cash of $552.1 million to its shareholders in the form of dividends and share repurchases during the first quarter of 2025.

In February 2025, the Company's Board of Directors increased the quarterly cash dividend from $0.715 per share to $0.79 per share.

During the first three months of 2025, the Company purchased 1.0 million shares of its common stock for treasury purposes through open market purchases.

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, regulations and requirements and has implemented various programs designed to help protect the environment and promote continued compliance.

our ability to achieve our strategies or expectations relating to sustainability considerations, including as a result of evolving legal, regulatory and other standards, processes and assumptions, the pace of scientific and technological developments, increased costs, the availability of requisite suppliers, energy sources, or financing and changes in carbon markets

The Company has historically experienced, and expects to continue to experience, variability in quarterly results. The results of operations for the three months ended March 31, 2025 are not indicative of the results to be expected for the full year as our business is seasonal in nature.

general business and economic conditions in the United States and worldwide

inflation rates, interest rates, unemployment rates, labor costs, healthcare costs, recessionary conditions, geopolitical conditions, terrorist activity, armed conflicts and wars, public health crises, pandemics, outbreaks of disease and supply chain disruptions