10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

FORM 10-Q

(Mark One)

x Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.

For the Period Ended March 31, 2015

or

o Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.

For the transition period from to

Commission file number 1-04851

THE SHERWIN-WILLIAMS COMPANY

(Exact name of registrant as specified in its charter)

OHIO	34-0526850
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
101 West Prospect Avenue, Cleveland, Ohio	44115-1075
(Address of principal executive offices)	(Zip Code)

(216) 566-2000

(Registrant’s telephone number including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one:)

Large accelerated filer	x		Accelerated filer	o
Non-accelerated filer	o	(Do not check if a smaller reporting company)	Smaller reporting company	o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  o    No  x

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practical date.

Common Stock, $1.00 Par Value – 93,186,295 shares as of March 31, 2015.

TABLE OF CONTENTS

PART I. FINANCIAL INFORMATION
Item 1. Financial Statements	2
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	18
Item 3. Quantitative and Qualitative Disclosures About Market Risk	26
Item 4. Controls and Procedures	27
PART II. OTHER INFORMATION
Item 1. Legal Proceedings	28
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	29
Item 5. Other Information	30
Item 6. Exhibits	31
SIGNATURES	32
INDEX TO EXHIBITS	33
EX-31(a)
EX-31(b)
EX-32(a)
EX-32(b)
EX-101 INSTANCE DOCUMENT
EX-101 SCHEMA DOCUMENT
EX-101 PRESENTATION LINKBASE DOCUMENT
EX-101 CALCULATION LINKBASE DOCUMENT
EX-101 LABEL LINKBASE DOCUMENT
EX-101 DEFINITION LINKBASE DOCUMENT

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

THE SHERWIN-WILLIAMS COMPANY AND SUBSIDIARIES

STATEMENTS OF CONSOLIDATED INCOME AND COMPREHENSIVE INCOME (UNAUDITED)

Thousands of dollars, except per share data

	Three Months Ended March 31,
	2015			2014
Net sales	$	2,450,284		$	2,366,556
Cost of goods sold	1,317,835			1,300,655
Gross profit	1,132,449			1,065,901
Percent to net sales	46.2		%	45.0		%
Selling, general and administrative expenses	929,197			884,088
Percent to net sales	37.9		%	37.4		%
Other general income - net	(1,673		)	(572		)
Interest expense	12,351			16,394
Interest and net investment income	(422		)	(589		)
Other (income) expense - net	(245		)	503
Income before income taxes	193,241			166,077
Income taxes	61,837			50,620
Net income	$	131,404		$	115,457
Net income per common share:
Basic	$	1.41		$	1.16
Diluted	$	1.38		$	1.14
Average shares outstanding - basic	92,740,059			98,833,210
Average shares and equivalents outstanding - diluted	94,745,129			100,858,881
Comprehensive income	$	75,057		$	107,254

See notes to condensed consolidated financial statements.

2

THE SHERWIN-WILLIAMS COMPANY AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

Thousands of dollars

	March 31, 2015			December 31, 2014			March 31, 2014
Assets
Current assets:
Cash and cash equivalents	$	64,013		$	40,732		$	366,465
Accounts receivable, less allowance	1,234,612			1,130,565			1,174,116
Inventories:
Finished goods	981,334			841,784			898,701
Work in process and raw materials	179,916			191,743			198,082
	1,161,250			1,033,527			1,096,783
Deferred income taxes	107,869			109,087			102,473
Other current assets	198,046			252,869			227,641
Total current assets	2,765,790			2,566,780			2,967,478
Goodwill	1,149,121			1,158,346			1,174,758
Intangible assets	277,919			289,127			312,295
Deferred pension assets	250,463			250,144			303,067
Other assets	417,525			420,625			427,233
Property, plant and equipment:
Land	121,626			125,691			129,457
Buildings	691,541			698,202			705,034
Machinery and equipment	1,946,261			1,952,037			1,871,287
Construction in progress	63,419			59,330			48,946
	2,822,847			2,835,260			2,754,724
Less allowances for depreciation	1,824,415			1,814,230			1,750,330
	998,432			1,021,030			1,004,394
Total Assets	$	5,859,250		$	5,706,052		$	6,189,225
Liabilities and Shareholders’ Equity
Current liabilities:
Short-term borrowings	$	1,405,369		$	679,436		$	87,378
Accounts payable	1,174,840			1,042,182			1,130,338
Compensation and taxes withheld	249,707			360,458			232,995
Accrued taxes	77,602			86,744			76,538
Current portion of long-term debt	3,143			3,265			502,223
Other accruals	468,384			508,581			423,172
Total current liabilities	3,379,045			2,680,666			2,452,644
Long-term debt	1,122,741			1,122,715			1,122,396
Postretirement benefits other than pensions	278,771			277,892			270,485
Other long-term liabilities	609,521			628,309			690,661
Shareholders’ equity:
Common stock—$1.00 par value:
93,186,295, 94,704,173 and 99,651,879 shares outstanding at
March 31, 2015, December 31, 2014 and March 31, 2014, respectively	115,118			114,525			113,839
Preferred stock—convertible, no par value:
21,588 shares outstanding at March 31, 2014	—			—			21,588
Unearned ESOP compensation	—			—			(21,588		)
Other capital	2,187,144			2,079,639			1,951,076
Retained earnings	2,493,469			2,424,674			1,834,417
Treasury stock, at cost	(3,798,254		)	(3,150,410		)	(1,917,046		)
Cumulative other comprehensive loss	(528,305		)	(471,958		)	(329,247		)
Total shareholders' equity	469,172			996,470			1,653,039
Total Liabilities and Shareholders’ Equity	$	5,859,250		$	5,706,052		$	6,189,225

See notes to condensed consolidated financial statements.

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THE SHERWIN-WILLIAMS COMPANY AND SUBSIDIARIES

CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS (UNAUDITED)

Thousands of dollars

	Three Months Ended
	March 31, 2015			March 31, 2014
OPERATING ACTIVITIES
Net income	$	131,404		$	115,457
Adjustments to reconcile net income to net operating cash:
Depreciation	42,500			41,408
Amortization of intangible assets	6,905			7,552
Stock-based compensation expense	18,079			15,858
Provisions for qualified exit costs	761			2,897
Provisions for environmental-related matters	1,050			(434		)
Defined benefit pension plans net cost	1,787			1,813
Net increase in postretirement liability	(111		)	1,485
Other	(2,702		)	2,747
Change in working capital accounts - net	(254,221		)	(257,041		)
Costs incurred for environmental-related matters	(2,875		)	(3,384		)
Costs incurred for qualified exit costs	(1,966		)	(529		)
Other	4,321			(10,948		)
Net operating cash	(55,068		)	(83,119		)
INVESTING ACTIVITIES
Capital expenditures	(42,903		)	(29,364		)
Proceeds from sale of assets	6,677			—
Increase in other investments	(56		)	(15,705		)
Net investing cash	(36,282		)	(45,069		)
FINANCING ACTIVITIES
Net increase (decrease) in short-term borrowings	731,733			(8,932		)
Payments of long-term debt	(96		)	(680		)
Payments of cash dividends	(62,609		)	(55,090		)
Proceeds from stock options exercised	37,494			48,657
Income tax effect of stock-based compensation exercises and vesting	52,632			39,896
Treasury stock purchased	(614,911		)	(256,391		)
Other	(33,108		)	(21,766		)
Net financing cash	111,135			(254,306		)
Effect of exchange rate changes on cash	3,496			4,070
Net increase (decrease) in cash and cash equivalents	23,281			(378,424		)
Cash and cash equivalents at beginning of year	40,732			744,889
Cash and cash equivalents at end of period	$	64,013		$	366,465
Income taxes paid	$	16,044		$	13,028
Interest paid	9,381			10,359

See notes to condensed consolidated financial statements.

4

THE SHERWIN-WILLIAMS COMPANY AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Periods ended March 31, 2015 and 2014

NOTE 1—BASIS OF PRESENTATION

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information and the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included.

There have been no significant changes in critical accounting policies since December 31, 2014. Accounting estimates were revised as necessary during the first three months of 2015 based on new information and changes in facts and circumstances. Certain amounts in the 2014 condensed consolidated financial statements have been reclassified to conform to the 2015 presentation.

The Company primarily uses the last-in, first-out (LIFO) method of valuing inventory. An actual valuation of inventory under the LIFO method can be made only at the end of each year based on the inventory levels and costs at that time. Accordingly, interim LIFO calculations are based on management’s estimates of expected year-end inventory levels and costs are subject to the final year-end LIFO inventory valuation. In addition, interim inventory levels include management’s estimates of annual inventory losses due to shrinkage and other factors. The final year-end valuation of inventory is based on an annual physical inventory count performed during the fourth quarter. For further information on inventory valuations and other matters, refer to the consolidated financial statements and footnotes thereto included in the Company’s Form 10-K for the year ended December 31, 2014.

The consolidated results for the three months endedMarch 31, 2015 are not necessarily indicative of the results to be expected for the year ending December 31, 2015.

NOTE 2—IMPACT OF RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

Effective January 1, 2015, the Company adopted Accounting Standards Update (ASU) No. 2014-01, "Accounting for Investments in Qualified Affordable Housing Projects," which allows companies to elect to use the proportional amortization method to account for investments in qualified affordable housing projects if certain conditions are met. Under the proportional amortization method, which replaces the effective yield method, the cost of the investment is amortized in proportion to the tax credits and other tax benefits received to income tax expense. The adoption of ASU No. 2014-01 did not have a material effect on the Company's results of operations, financial condition or liquidity.

In May 2014, the Financial Accounting Standards Board (FASB) issued ASU No. 2014-09, "Revenue Recognition - Revenue from Contracts with Customers," which is a comprehensive revenue recognition standard that will supersede nearly all existing revenue recognition guidance under U.S. GAAP. The standard is effective for interim and annual periods beginning after December 15, 2016, however, the FASB has proposed a one-year deferral. Either full retrospective adoption or modified retrospective adoption is permitted. The Company is in the process of evaluating the impact of the standard.

NOTE 3—DIVIDENDS

Dividends paid on common stock during the first quarter of 2015 and 2014 were $.67 per common share and $.55 per common share, respectively.

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NOTE 4—CHANGES IN CUMULATIVE OTHER COMPREHENSIVE LOSS

The following tables summarize the changes in Cumulative other comprehensive loss for the three months ended March 31, 2015 and 2014:

(Thousands of dollars)
	Foreign Currency Translation Adjustments			Net Actuarial (Losses) Gains and Prior Service Costs Recognized for Employee Benefit Plans			Unrealized Net Gains (Losses) on Available-for-Sale Securities			Total Cumulative Other Comprehensive Loss
Balance at December 31, 2014	$	(354,384	)	$	(118,167	)	$	593		$	(471,958	)
Other comprehensive loss before reclassifications(1)	(56,776		)				(132		)	(56,908		)
Amounts reclassified from other comprehensive (loss) income(2)				570			(9		)	561
Net other comprehensive (loss) income	(56,776		)	570			(141		)	(56,347		)
Balance at March 31, 2015	$	(411,160	)	$	(117,597	)	$	452		$	(528,305	)

⁽¹⁾ Net of taxes of $81 for unrealized net losses on available-for-sale securities.

⁽²⁾ Net of taxes of $(206) for net actuarial losses and prior service costs recognized for employee benefit plans and $4 for realized gains on the sale of available-for-sale securities.

(Thousands of dollars)
	Foreign Currency Translation Adjustments			Net Actuarial Losses and Prior Service Costs Recognized for Employee Benefit Plans			Unrealized Net Gains (Losses) on Available-for-Sale Securities			Total Cumulative Other Comprehensive Loss
Balance at December 31, 2013	$	(250,942	)	$	(70,611	)	$	509		$	(321,044	)
Other comprehensive loss before reclassifications(3)	(8,055		)	(570		)	(65		)	(8,690		)
Amounts reclassified from other comprehensive (loss) income(4)				504			(17		)	487
Net other comprehensive (loss) income	(8,055		)	(66		)	(82		)	(8,203		)
Balance at March 31, 2014	$	(258,997	)	$	(70,677	)	$	427		$	(329,247	)

⁽³⁾ Net of taxes of $244 for net actuarial losses and prior service costs recognized for employee benefit plans and $41 for unrealized net losses on available-for-sale securities.

⁽⁴⁾ Net of taxes of $(207) for net actuarial losses and prior service costs recognized for employee benefit plans and $11 for realized gains on the sale of available-for-sale securities.

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NOTE 5—PRODUCT WARRANTIES

Changes in the Company’s accrual for product warranty claims during the first three months of 2015 and 2014, including customer satisfaction settlements, were as follows:

(Thousands of dollars)
	2015			2014
Balance at January 1	$	27,723		$	26,755
Charges to expense	5,146			6,260
Settlements	(6,721		)	(7,516		)
Balance at March 31	$	26,148		$	25,499

For further details on the Company’s accrual for product warranty claims, see Note 1 to the Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014.

NOTE 6—EXIT OR DISPOSAL ACTIVITIES

Liabilities associated with exit or disposal activities are recognized as incurred in accordance with the Exit or Disposal Cost Obligations Topic of the ASC. Qualified exit costs primarily include post-closure rent expenses, incremental post-closure costs and costs of employee terminations. Adjustments may be made to liabilities accrued for qualified exit costs if information becomes available upon which more accurate amounts can be reasonably estimated. Concurrently, property, plant and equipment is tested for impairment in accordance with the Property, Plant and Equipment Topic of the ASC, and if impairment exists, the carrying value of the related assets is reduced to estimated fair value. Additional impairment may be recorded for subsequent revisions in estimated fair value.

In the three months ended March 31, 2015, fourteen stores in the Paint Stores Group and one store in the Latin America Coatings Group were closed due to lower demand or redundancy. No provisions were incurred for the 2015 store shutdowns due to the timing of lease cancellations and movement of employees to other locations.

The following table summarizes the activity and remaining liabilities associated with qualified exit costs at March 31, 2015:

(Thousands of dollars)
Exit Plan	Balance at December 31, 2014		Provisions in Cost of goods sold or SG&A		Actual expenditures charged to accrual			Balance at March 31, 2015
Paint Stores Group stores shutdown in 2014:
Other qualified exit costs	$	280	$	142	$	(82	)	$	340
Consumer Group facilities shutdown in 2014:
Severance and related costs	2,732		509		(643		)	2,598
Other qualified exit costs	781				(296		)	485
Global Finishes Group exit of business in 2014:
Severance and related costs	104				(104		)
Other qualified exit costs	1,080		110		(21		)	1,169
Paint Stores Group facility shutdown in 2013:
Severance and related costs	654				(358		)	296
Other qualified exit costs	1,205				(98		)	1,107
Global Finishes Group stores shutdown in 2013:
Severance and related costs	28				(25		)	3
Other qualified exit costs	138				(57		)	81
Other qualified exit costs for facilities shutdown prior to 2013	1,514				(282		)	1,232
Totals	$	8,516	$	761	$	(1,966	)	$	7,311

For further details on the Company’s exit or disposal activities, see Note 5 to the Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014.

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NOTE 7—HEALTH CARE, PENSION AND OTHER BENEFITS

Shown below are the components of the Company’s net periodic benefit cost (credit) for domestic defined benefit pension plans, foreign defined benefit pension plans and postretirement benefits other than pensions:

(Thousands of dollars)	Domestic Defined Benefit Pension Plans						Foreign Defined Benefit Pension Plans						Postretirement Benefits Other than Pensions
	2015			2014			2015			2014			2015			2014
Three Months Ended March 31:
Net periodic benefit cost (credit):
Service cost	$	5,754		$	5,637		$	1,325		$	1,547		$	621		$	609
Interest cost	6,237			6,526			2,271			2,694			2,795			3,195
Expected return on assets	(13,024		)	(12,666		)	(2,431		)	(2,740		)
Amortization of:
Prior service cost (credit)	327			459									(1,132		)	(126		)
Actuarial loss	843						485			356			253
Net periodic benefit cost (credit)	$	137		$	(44	)	$	1,650		$	1,857		$	2,537		$	3,678

For further details on the Company’s health care, pension and other benefits, see Note 6 to the Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014.

NOTE 8—OTHER LONG-TERM LIABILITIES

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 are determined based on currently available facts regarding each site. If the best estimate of 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. At March 31, 2015, the unaccrued maximum of the estimated range of possible outcomes is $89.4 million higher than the minimum.

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. Actual costs incurred may vary from these 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.

Included in Other long-term liabilities at March 31, 2015 and 2014 were accruals for extended environmental-related activities of $112.9 million and $83.3 million, respectively. Estimated costs of current investigation and remediation activities of $16.9 million and $15.4 million are included in Other accruals at March 31, 2015 and 2014, respectively.

Two of the Company’s currently and formerly owned manufacturing sites account for the majority of the accrual for environmental-related activities and the unaccrued maximum of the estimated range of possible outcomes at March 31, 2015. At March 31, 2015, $81.9 million, or 63.1 percent of the total accrual, related directly to these two sites. In the aggregate unaccrued maximum of $89.4 million at March 31, 2015, $58.2 million, or 65.1 percent, related to the two manufacturing sites. 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.

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. 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. 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 period 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.

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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 indefinite amount of time to conduct investigation activities at any site, the indefinite amount of time to obtain environmental agency approval, as necessary, with respect to investigation and remediation activities, and the indefinite amount of time necessary to conduct remediation activities.

For further details on the Company’s Other long-term liabilities, see Note 8 to the Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014.

NOTE 9 – 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 has not settled any material lead pigment or lead-based paint 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.

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. The Company has not accrued any amounts for such litigation. With respect to such litigation, including the public nuisance litigation, the Company does not believe that it is probable that a loss has occurred, and it is not possible to estimate the range of potential losses as there is no prior history of a loss of this nature and 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

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cannot reasonably be estimated. In the event any significant liability is determined to be attributable to the Company relating to such litigation, the recording of the liability may result in a material impact on net income for the annual or interim period during which such liability is accrued. Additionally, 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 and the County of Santa Clara, California and other public entities in the State of California. Except for the Santa Clara County, California proceeding, all of these legal proceedings have been concluded in favor of the Company and other defendants at various stages in the proceedings.

The proceedings initiated by the State of Rhode Island included two jury trials. At the conclusion of the second trial, the jury returned a verdict finding that (i) the cumulative presence of lead pigment in paints and coatings on buildings in the State of Rhode Island constitutes a public nuisance, (ii) the Company, along with two other defendants, caused or substantially contributed to the creation of the public nuisance and (iii) the Company and two other defendants should be ordered to abate the public nuisance. The Company and two other defendants appealed and, on July 1, 2008, the Rhode Island Supreme Court, among other determinations, reversed the judgment of abatement with respect to the Company and two other defendants. The Rhode Island Supreme Court’s decision reversed the public nuisance liability judgment against the Company on the basis that the complaint failed to state a public nuisance claim as a matter of law.

The Santa Clara County, California proceeding was initiated in March 2000 in the Superior Court of the State of California, County of Santa Clara. In the original complaint, the plaintiffs asserted various claims including fraud and concealment, strict product liability/failure to warn, strict product liability/design defect, negligence, negligent breach of a special duty, public nuisance, private nuisance, and violations of California’s Business and Professions Code. A number of the asserted claims were resolved in favor of the defendants through pre-trial proceedings. The named plaintiffs in the Fourth Amended Complaint, filed on March 16, 2011, are the Counties of Santa Clara, Alameda, Los Angeles, Monterey, San Mateo, Solano and Ventura, the Cities of Oakland and San Diego and the City and County of San Francisco. The Fourth Amended Complaint asserted a sole claim for public nuisance, alleging that the presence of lead pigments for use in paint and coatings in, on and around residences in the plaintiffs’ jurisdictions constitutes a public nuisance. The plaintiffs sought the abatement of the alleged public nuisance that exists within the plaintiffs’ jurisdictions. A trial commenced on July 15, 2013 and ended on August 22, 2013. The court entered final judgment on January 27, 2014, finding in favor of the plaintiffs and against the Company and two other defendants (ConAgra Grocery Products Company and NL Industries, Inc.). The final judgment held the Company jointly and severally liable with the other two defendants to pay $1.15 billion into a fund to abate the public nuisance. The Company strongly disagrees with the judgment. On February 18, 2014, the Company filed a motion for new trial and a motion to vacate the judgment. The court denied these motions on March 24, 2014. On March 28, 2014, the Company filed a notice of appeal to the Sixth District Court of Appeal for the State of California. The filing of the notice of appeal effects an automatic stay of the judgment without the requirement to post a bond. The Company believes that the judgment conflicts with established principles of law and is unsupported by the evidence. The Company has had a favorable history with respect to lead pigment and lead-based paint litigation, particularly other public nuisance litigation, and accordingly, the Company believes that it is not probable that a loss has occurred and it is not possible to estimate the range of potential loss with respect to the case.

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 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

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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. Also, in Yasmine Clark v. The Sherwin-Williams Company, et al., the Wisconsin Circuit Court, Milwaukee County, on March 25, 2014, held that the application to a pending case of Section 895.046 of the Wisconsin Statutes (which clarifies the application of the risk contribution theory) is unconstitutional as a violation of the plaintiff’s right to due process of law under the Wisconsin Constitution. On April 8, 2014, defendants filed a petition requesting the Wisconsin Court of Appeal to hear the issue as an interlocutory appeal. On August 21, 2014, the Wisconsin Court of Appeal granted defendants' petition.

Insurance coverage litigation. The Company and its liability insurers, including certain underwriters at Lloyd’s of London, initiated legal proceedings against each other to primarily 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, is currently stayed and inactive. 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, 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.

Litigation related to Consorcio Comex. As previously disclosed, the Company entered into a definitive Stock Purchase Agreement (as subsequently amended and restated, the “Purchase Agreement”), with Avisep, S.A. de C.V. (“Avisep”) and Bevisep, S.A. de C.V. (“Bevisep”) to, among other things, acquire the Mexico business of Consorcio Comex, S.A. de C.V. (the "Acquisition"). Under the terms of the Purchase Agreement, either the Company or Avisep and Bevisep had the right to terminate the Purchase Agreement in the event that the closing of the Acquisition did not occur on or prior to March 31, 2014 and such party was not in material breach of the Purchase Agreement.

On April 3, 2014, the Company sent notice to Avisep and Bevisep that the Company was terminating the Purchase Agreement. On April 3, 2014, the Company filed a complaint for declaratory judgment in the Supreme Court of the State of New York, New York County, requesting the court to declare that the Company had used commercially reasonable efforts as required under the Purchase Agreement and has not breached the Purchase Agreement. On August 7, 2014, the case was removed by Avisep and Bevisep to the United States District Court for the Southern District of New York. On April 11, 2014, Avisep and Bevisep initiated an arbitration proceeding against the Company in the International Court of Arbitration contending that the Company breached the Purchase Agreement by terminating the Purchase Agreement and not utilizing commercially reasonable efforts under the Purchase Agreement, which allegedly caused Avisep and Bevisep to incur damages. The Company believes that the claims are without merit and intends to vigorously defend against such claims.

Titanium dioxide suppliers antitrust class action lawsuit. The Company is a member of the plaintiff class related to Titanium Dioxide Antitrust Litigation that was initiated in 2010 against certain suppliers alleging various theories of relief arising from purchases of titanium dioxide made from 2003 through 2012. The Court approved a settlement less attorney fees and expense, and the Company timely submitted claims to recover its pro-rata portion of the settlement. There was no specified deadline for the claims administrator to complete the review of all claims submitted. In October 2014, the Company was

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notified that it would receive a disbursement of settlement funds, and the Company received a pro-rata disbursement net of all fees of approximately $21.4 million. The Company recorded this settlement gain in the fourth quarter of 2014.

NOTE 10—OTHER

Other general income - net

Included in Other general income - net were the following:

(Thousands of dollars)	Three Months Ended March 31,
	2015			2014
Provisions for environmental matters - net	$	1,050		$	(434	)
Gain on disposition of assets	(2,723		)	(138		)
Total	$	(1,673	)	$	(572	)

Provisions for environmental matters - net represent site-specific 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. Environmental-related accruals are not recorded net of insurance proceeds in accordance with the Offsetting Subtopic of the Balance Sheet Topic of the ASC. See Note 8 for further details on the Company’s environmental-related activities.

The gain on disposition of assets represents net realized gains associated with the disposal of fixed assets previously used in the conduct of the primary business of the Company.

Other (income) expense - net

Included in Other (income) expense - net were the following:

(Thousands of dollars)	Three Months Ended March 31,
	2015			2014
Dividend and royalty income	$	(1,081	)	$	(1,051	)
Net expense from financing activities	2,967			2,922
Foreign currency transaction related losses	1,138			2,858
Other income	(5,497		)	(6,306		)
Other expense	2,228			2,080
Total	$	(245	)	$	503

The net expense from financing activities includes the net expense relating to the change in the Company’s financing fees.

Foreign currency transaction related losses represent net realized losses on U.S. dollar-denominated liabilities of foreign subsidiaries and net realized and unrealized losses from foreign currency option and forward contracts. There were no foreign currency option and forward contracts outstanding at March 31, 2015 and 2014.

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 other items within the other income or other expense caption that were individually significant.

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NOTE 11—INCOME TAXES

The effective tax rate was 32.0 percent for the first quarter of 2015 compared to 30.5 percent for the first quarter of 2014. The increase in the effective tax rate was primarily due to the reduction in tax benefits related to federal income tax credits as well as a decrease in miscellaneous discrete tax benefits reflected in the first quarter of 2015 compared to the first quarter of 2014.

At December 31, 2014, the Company had $31.6 million in unrecognized tax benefits, the recognition of which would have an effect of $28.2 million on the current provision for income taxes. Included in the balance of unrecognized tax benefits at December 31, 2014, was $4.4 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 of items related to federal audits of partnership investments, assessed state income tax audits, state settlement negotiations currently in progress and expiring statutes in federal, foreign and state jurisdictions.

The Company classifies all income tax related interest and penalties as income tax expense. At December 31, 2014, the Company had accrued $5.7 million for the potential payment of income tax interest and penalties.

There were no significant changes to any of the balances of unrecognized tax benefits at December 31, 2014 during the first three months of 2015.

The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction, and various state and foreign jurisdictions. The IRS commenced an examination of the Company's U.S. income tax returns for the 2010, 2011 and 2012 tax years in the fourth quarter of 2013. The audits are expected to be completed during 2015.

As of March 31, 2015, the Company is subject to non-U.S. income tax examinations for the tax years of 2007 through 2014. In addition, the Company is subject to state and local income tax examinations for the tax years 2004 through 2014.

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NOTE 12—NET INCOME PER COMMON SHARE

(Thousands of dollars except per share data)	Three Months Ended March 31,
	2015			2014
Basic
Average common shares outstanding	92,740,059			98,833,210
Net income	$	131,404		$	115,457
Less net income allocated to unvested restricted shares	(475		)	(523		)
Net income allocated to common shares	$	130,929		$	114,934
Basic net income per common share	$	1.41		$	1.16
Diluted
Average common shares outstanding	92,740,059			98,833,210
Stock options and other contingently issuable shares (1)	2,005,070			2,025,671
Average common shares outstanding assuming dilution	94,745,129			100,858,881
Net income	$	131,404		$	115,457
Less net income allocated to unvested restricted shares
assuming dilution	(467		)	(515		)
Net income allocated to common shares assuming
dilution	$	130,937		$	114,942
Diluted net income per common share	$	1.38		$	1.14

⁽¹⁾  Stock options and other contingently issuable shares excluded 12,414 and 2,932 shares due to their anti-dilutive effect for the three months ended March 31, 2015 and 2014, respectively.

The Company has two classes of participating securities: common shares and restricted shares, representing 99% and 1% of outstanding shares, respectively. The restricted shares are shares of unvested restricted stock granted under the Company’s restricted stock award program. Time-based restricted shares receive non-forfeitable dividends, while dividends on performance-based restricted shares are deferred and payment is contingent upon the awards vesting. The time-based restricted shares are considered a participating security, therefore, basic and diluted earnings per share are calculated using the two-class method in accordance with the Earnings Per Share Topic of the ASC.

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NOTE 13—REPORTABLE SEGMENT INFORMATION

The Company reports 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 Disclosures Topic of the ASC. The Company has determined that it has four reportable operating segments: Paint Stores Group, Consumer Group, Global Finishes Group and Latin America Coatings Group (individually, a "Reportable Segment" and collectively, the “Reportable Segments”).

(Thousands of dollars)	Three Months Ended March 31, 2015
	Paint Stores Group		Consumer Group		Global Finishes Group		Latin America Coatings Group		Administrative			Consolidated Totals
Net external sales	$	1,461,505	$	351,690	$	469,556	$	166,231	$	1,302		$	2,450,284
Intersegment transfers			607,538		1,774		10,069		(619,381		)
Total net sales and intersegment transfers	$	1,461,505	$	959,228	$	471,330	$	176,300	$	(618,079	)	$	2,450,284
Segment profit	$	176,576	$	55,406	$	38,900	$	9,500				$	280,382
Interest expense									$	(12,351	)	(12,351		)
Administrative expenses and other									(74,790		)	(74,790		)
Income before income taxes	$	176,576	$	55,406	$	38,900	$	9,500	$	(87,141	)	$	193,241

	Three Months Ended March 31, 2014
	Paint Stores Group		Consumer Group		Global Finishes Group		Latin America Coatings Group		Administrative			Consolidated Totals
Net external sales	$	1,360,003	$	325,299	$	497,639	$	182,388	$	1,227		$	2,366,556
Intersegment transfers			546,562		1,413		10,122		(558,097		)
Total net sales and intersegment transfers	$	1,360,003	$	871,861	$	499,052	$	192,510	$	(556,870	)	$	2,366,556
Segment profit	$	146,265	$	51,088	$	46,477	$	9,987				$	253,817
Interest expense									$	(16,394	)	(16,394		)
Administrative expenses and other									(71,346		)	(71,346		)
Income before income taxes	$	146,265	$	51,088	$	46,477	$	9,987	$	(87,740	)	$	166,077

In the reportable segment financial information, Segment profit was total net sales and intersegment transfers less operating costs and expenses. Domestic intersegment transfers were accounted for at the approximate fully absorbed manufactured cost, based on normal capacity volumes, plus customary distribution costs. International intersegment transfers were accounted for at values comparable to normal unaffiliated customer sales. The Administrative segment includes the administrative expenses of the Company’s corporate headquarters site. Also included in the Administrative segment was interest expense, interest and investment income, certain expenses related to closed facilities and environmental-related matters, and other expenses which were not directly associated with the Reportable Segments. The Administrative segment did not include any significant foreign operations. Also included in the Administrative segment was 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 represented external leasing revenue of excess headquarters space or leasing of facilities no longer used by the Company in its primary businesses. Gains and losses from the sale of property were not a significant operating factor in determining the performance of the Administrative segment.

Net external sales and segment profit of all consolidated foreign subsidiaries were $456.5 million and $18.3 million, respectively, for the first quarter of 2015, and $529.2 million and $32.6 million, respectively, for the first quarter of 2014. Long-lived assets of these subsidiaries totaled $513.8 million and $621.2 million at March 31, 2015 and March 31, 2014, respectively. Domestic operations accounted for the remaining net external sales, segment profits and long-lived assets. No single geographic area outside the United States was significant relative to consolidated net external sales, income before taxes, 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 periods presented.

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NOTE 14—FAIR VALUE MEASUREMENTS

The Fair Value Measurements and Disclosures Topic of the ASC applies to the Company’s financial and non-financial assets and liabilities. The guidance applies when other standards require or permit the fair value measurement of assets and liabilities. It does not expand the use of fair value measurements. The Company did not have any fair value measurements for its non-financial assets and liabilities during the first quarter. The following table presents the Company’s financial assets and liabilities that are measured at fair value on a recurring basis, categorized using the fair value hierarchy:

(Thousands of dollars)
			Quoted Prices
			in Active				Significant
	Fair Value at		Markets for		Significant Other		Unobservable
	March 31,		Identical Assets		Observable Inputs		Inputs
	2015		(Level 1)		(Level 2)		(Level 3)
Assets:
Deferred compensation plan asset (1)	$	24,027	$	1,132	$	22,895
Liabilities:
Deferred compensation plan liability (2)	$	34,012	$	34,012

⁽¹⁾  The deferred compensation plan asset consists of the investment funds maintained for the future payments under the Company’s executive deferred compensation plan, which is structured as a rabbi trust. 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 or broker models. The cost basis of the investment funds is $23,792.

⁽²⁾  The deferred compensation plan liability is the Company’s liability under its executive deferred compensation plan. The liability represents the fair value of the participant shadow accounts, and the value is based on quoted market prices.

NOTE 15—DEBT

The table below summarizes the carrying amount and fair value of the Company’s publicly traded debt and non-publicly traded debt in accordance with the Fair Value Measurements and Disclosures Topic of the ASC. The fair values of the Company’s publicly traded debt are based on quoted market prices. The fair values of the Company’s non-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.

(Thousands of dollars)	March 31, 2015				March 31, 2014
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Publicly traded debt	$	1,120,982	$	1,165,804	$	1,620,714	$	1,629,928
Non-traded debt	4,902		4,655		3,905		3,683

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NOTE 16—NON-TRADED INVESTMENTS

The Company has invested in the U.S. affordable housing and historic renovation real estate markets. These non-traded investments 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 No. 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 No. 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 amount of the affordable housing and historic renovation investments, included in Other assets, was $223.8 million and $237.7 million at March 31, 2015 and 2014, respectively. The liability for estimated future capital contributions to the investments was $196.8 million and $213.0 million at March 31, 2015 and 2014, respectively.

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Item 2. MANAGEMENT’S DISCUSSION AND

ANALYSIS OF FINANCIAL CONDITION AND

RESULTS OF OPERATIONS

SUMMARY

The Sherwin-Williams Company, founded in 1866, and its consolidated wholly owned subsidiaries (collectively, the “Company”) are 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 and Asia. The Company is structured into four reportable segments—Paint Stores Group, Consumer Group, Global Finishes Group and Latin America Coatings Group (collectively, the “Reportable Segments”)—and an Administrative segment in the same way it is internally organized for assessing performance and making decisions regarding allocation of resources. See pages 6 through 15 and Note 18, on pages 71 through 73, in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 for more information concerning the Reportable Segments.

The Company’s financial condition, liquidity and cash flow continued to be strong through the first three months of 2015 primarily due to improved operating results in our Paint Stores and Consumer Groups. Net working capital decreased$1.128 billion at March 31, 2015 compared to the end of the first quarter of 2014 due to a significant increase in current liabilities and a significant decrease in current assets. Current portion of long-term debt decreased$499.1 million resulting from the 3.125% Senior Notes becoming due in 2014 while cash and cash equivalents decreased$302.5 million resulting primarily from treasury stock purchases. The Company has been able to arrange sufficient short-term borrowing capacity at reasonable rates, and the Company has sufficient total available borrowing capacity to fund its current operating needs. Net operating cash improved$28.1 million in the first three months of 2015 to a cash usage of $55.1 million from a cash usage of $83.1 million in 2014 primarily due to improved operating results in the core business.

Consolidated net sales increased3.5 percent in the first quarter of 2015 to $2.450 billion from $2.367 billion in the first quarter of 2014 due primarily to higher paint sales volume in our Paint Stores and Consumer Groups. Consolidated gross profit as a percent of consolidated net sales increased in the first quarter to 46.2 percent from 45.0 percent in 2014 due primarily to increased paint volume and improved operating efficiency. Selling, general and administrative expenses (SG&A) increased as a percent of consolidated net sales to 37.9 percent from 37.4 percent in the first quarter of 2014 primarily due to timing of net new store openings and expenses related to the launch of a new paint program at a national retailer. Interest expense decreased$4.0 million in the first quarter of 2015. The effective income tax rate for the first quarter of 2015 was 32.0 percent compared to 30.5 percent in 2014. Diluted net income per common share increased to $1.38 per share for the first quarter of 2015 from $1.14 per share a year ago.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

The preparation and fair presentation of the consolidated unaudited interim financial statements and accompanying notes included in this report are the responsibility of management. The financial statements and footnotes have been prepared in accordance with U.S. generally accepted accounting principles for interim financial statements and contain certain amounts that were based upon management’s best estimates, judgments and assumptions that were believed to be reasonable under the circumstances. Management considered the impact of the uncertain economic environment and utilized certain outside sources of economic information when developing the basis for their estimates and assumptions. The impact of the global economic conditions on the estimates and assumptions used by management was believed to be reasonable under the circumstances. Management used assumptions based on historical results, considering the current economic trends, and other assumptions to form the basis for determining appropriate carrying values of assets and liabilities that were not readily available from other sources. Actual results could differ from those estimates. Also, materially different amounts may result under materially different conditions, materially different economic trends or from using materially different assumptions. However, management believes that any materially different amounts resulting from materially different conditions or material changes in facts or circumstances are unlikely to significantly impact the current valuation of assets and liabilities that were not readily available from other sources.

A comprehensive discussion of the Company’s critical accounting policies and management estimates and significant accounting policies followed in the preparation of the financial statements is included in Management’s Discussion and Analysis of Financial Condition and Results of Operations and in Note 1, on pages 44 through 47, in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. There have been no significant changes in critical accounting policies, management estimates or accounting policies followed since the year ended December 31, 2014.

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FINANCIAL CONDITION, LIQUIDITY AND CASH FLOW

Overview

The Company’s financial condition, liquidity and cash flow remained strong through the first three months of 2015 primarily due to improved operating results in our Paint Stores and Consumer Groups. Net working capital decreased$1.128 billion at March 31, 2015 compared to the end of the first quarter of 2014 due to a significant increase in current liabilities and a significant decrease in current assets. Cash and cash equivalents decreased$302.5 million, primarily due to treasury stock purchases, partially offset by an increase in accounts receivable of $60.5 million and an increase in inventories of $64.5 million. Short-term borrowings increased$1.318 billion, primarily due to treasury stock purchases, accounts payable increased$44.5 million and all other current liabilities increased$63.0 million from March 31, 2014 while current portion of long-term debt decreased$499.1 million resulting from the 3.125% Senior Notes becoming due in 2014. The Company continues to maintain sufficient short-term borrowing capacity at reasonable rates, and the Company has sufficient cash on hand and total available borrowing capacity to fund its current operating needs. In the first three months of 2015, accounts receivable increased$104.0 million when normal seasonal trends typically require significant growth in this category and inventories increased$127.7 million. Accounts payable increased$132.7 million, primarily due to the seasonal increase in need for working capital, and all other current liabilities decreased$160.2 million, primarily due to timing of accrued taxes, while short-term borrowings increased$725.9 million, primarily due to treasury stock purchases. The Company’s current ratio was 0.82 at March 31, 2015 compared to 1.21 at March 31, 2014 and 0.96 at December 31, 2014. Total debt at March 31, 2015increased$819.3 million to $2.531 billion from $1.712 billion at March 31, 2014 and increased as a percentage of total capitalization to 84.4 percent from 50.9 percent at the end of the first quarter last year. Total debt increased$725.8 million from December 31, 2014 and increased as a percentage of total capitalization from 64.4 percent to 84.4 percent. At March 31, 2015, the Company had remaining borrowing ability of $877.1 million. Net operating cash improved$28.1 million in the first three months of 2015 to a cash usage of $55.1 million from a cash usage of $83.1 million in 2014. In the twelve month period from April 1, 2014 through March 31, 2015, the Company generated net operating cash of $1.110 billion, used$301.3 million in investing activities, and used$1.102 billion in financing activities. In that same period, the Company invested $214.1 million in capital additions and improvements, made payments on total debt of $833.5 million, purchased $1.847 billion in treasury stock and paid $222.8 million in cash dividends to its shareholders of common stock.

Net Working Capital, Debt and Other Long-Term Assets and Liabilities

Cash and cash equivalents increased$23.3 million during the first three months of 2015. Cash and cash equivalents on hand funded cash requirements for increased sales and normal seasonal increases in working capital, capital expenditures of $42.9 million, payments of cash dividends of $62.6 million, and treasury stock purchases of $614.9 million. At March 31, 2015, the Company’s current ratio was 0.82 compared to 0.96 at December 31, 2014 and 1.21 a year ago. The decrease resulted primarily from the increase in short-term debt.

Goodwill and intangible assets decreased$20.4 million from December 31, 2014 and decreased$60.0 million from March 31, 2014. The net decrease during the first three months of 2015 was due to amortization of $6.9 million and foreign currency translation of $14.0 million partially offset by capitalization of software of $0.5 million. The net decrease over the twelve month period from March 31, 2014 resulted from amortization of $29.2 million and foreign currency translation of $37.3 million partially offset by capitalization of software of $6.5 million. See Note 4, on pages 48 and 49, in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 for more information concerning goodwill and intangible assets.

Deferred pension assets increased$0.3 million during the first three months of 2015 and decreased$52.6 million from March 31, 2014. The decrease in the last twelve months was due primarily to increased projected benefit obligations resulting from changes in actuarial assumptions partially offset by increases in the fair market value of equity securities held by the Company’s defined benefit pension plans. See Note 6, on pages 52 through 57, in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 for more information concerning the Company’s benefit plan assets.

Other assets at March 31, 2015decreased$3.1 million in the first three months of 2015 and decreased$9.7 million from a year ago. The twelve month decrease was due primarily to decreases in investments in affordable housing and historic renovation real estate properties.

Net property, plant and equipment decreased$22.6 million in the first three months of 2015 and decreased$6.0 million in the twelve months since March 31, 2014. The decrease in the first three months was primarily due to depreciation expense of $42.5 million, sale or disposition of fixed assets of $4.0 million and changes in currency translation rates of $18.9 million partially offset by capital expenditures of $42.9 million. Since March 31, 2014, depreciation expense of $170.2 million, changes in currency translation rates of $38.7 million and dispositions or sale of assets with remaining net book value of $8.1 million were partially offset by capital expenditures of $214.1 million. Capital expenditures during the first three months of 2015 primarily represented expenditures associated with improvements and normal equipment replacement in manufacturing and distribution

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facilities in the Consumer Group, normal equipment replacement in the Paint Stores and Global Finishes Groups, and replacement or upgraded aviation equipment and information systems hardware in the Administrative Segment.

There were $791.3 million in borrowings outstanding under the Company's domestic commercial paper program at March 31, 2015 with a weighted-average interest rate of 0.3 percent. Borrowings outstanding under short-term revolving and letter of credit agreements at March 31, 2015 were $575.0 million with a weighted-average interest rate of 0.8 percent. Short-term borrowings outstanding under various foreign programs at March 31, 2015 were $39.1 million with a weighted average interest rate of 4.3 percent. The Company had unused capacity of $258.7 million at March 31, 2015 under the commercial paper program that is backed by the Company’s revolving credit agreement. There were no significant changes in long-term debt during the first quarter of 2015. See Note 7, on page 58, in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 for more information concerning the Company’s debt.

Long-term liabilities for postretirement benefits other than pensions did not change significantly from December 31, 2014 and increased$8.3 million from March 31, 2014. The increase in the liability was due to the increase in the actuarially determined postretirement benefit obligation resulting from changes in actuarial assumptions partially offset by favorable claims experience. See Note 6, on pages 52 through 57, in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 for more information concerning the Company’s benefit plan obligations.

Other long-term liabilities at March 31, 2015decreased$18.8 million in the first three months of 2015 primarily due to a decrease in non-current deferred tax liabilities, and decreased$81.1 million from a year ago primarily due to a decrease in long-term commitments related to affordable housing and historic renovation real estate properties and non-current deferred tax liabilities, partially offset by an increase in accruals for extended environmental-related liabilities.

Environmental-Related Liabilities

The operations of the Company, like those of other companies in the same industry, are subject to various federal, state and local 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.

Depreciation of capital expenditures and other expenses related to ongoing environmental compliance measures were included in the normal operating expenses of conducting business. The Company’s capital expenditures, depreciation and other expenses related to ongoing environmental compliance measures were not material to the Company’s financial condition, liquidity, cash flow or results of operations during the first three months of 2015. Management does not expect that such capital expenditures, depreciation and other expenses will be material to the Company’s financial condition, liquidity, cash flow or results of operations in 2015. See Note 8 for further information on environmental-related long-term liabilities.

Contractual Obligations, Commercial Commitments and Warranties

Short-term borrowings increased$725.9 million to $1.405 billion at March 31, 2015 from $679.4 million at December 31, 2014. Total long-term debt was $1.126 billion at March 31, 2015 and December 31, 2014 and decreased$498.7 million from $1.625 billion at March 31, 2014. See the Financial Condition, Liquidity and Cash Flow section of this report for more information. There have been no other significant changes to the Company’s contractual obligations and commercial commitments in the first quarter of 2015 as summarized in Management’s Discussion and Analysis of Financial Condition and Results of Operations in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014.

Changes to the Company’s accrual for product warranty claims in the first three months of 2015 are disclosed in Note 5.

Litigation

See Note 9 for information concerning litigation.

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Shareholders’ Equity

Shareholders’ equity decreased$527.3 million to $469.2 million at March 31, 2015 from $996.5 million at December 31, 2014 and decreased$1.184 billion from $1.653 billion at March 31, 2014. The decrease in Shareholders’ equity for the first three months of 2015 resulted primarily from purchases of treasury stock of $614.9 million, cash dividends paid on common stock of $62.6 million, and an increase in Cumulative other comprehensive loss of $56.3 million partially offset by net income of $131.4 million and an increase in Other capital of $107.5 million, resulting primarily from stock option exercises. Since March 31, 2014, purchases of treasury stock for $1.847 billion, cash dividends paid on common stock of $222.8 million, and an increase in Cumulative other comprehensive loss of $199.1 million more than offset increases from net income of $881.8 million and an increase in Other capital of $236.1 million in twelve months. During the first three months of 2015, the Company purchased 2.00 million shares of its common stock for treasury purposes through open market purchases. The Company purchased 7.63 million shares of its common stock since March 31, 2014 for treasury. The Company acquires its common stock for general corporate purposes, and depending on its cash position and market conditions, it may acquire additional shares in the future. The Company had remaining authorization at March 31, 2015 to purchase 3.23 million shares of its common stock. At a meeting held on February 18, 2015, the Board of Directors increased the quarterly cash dividend from $.55 per common share to $.67 per common share. This quarterly dividend will result in an annual dividend for 2015 of $2.68 per common share or a 30.5 percent payout of 2014 diluted net income per common share.

Cash Flow

Net operating cash improved$28.1 million in the first three months of 2015 to a cash usage of $55.1 million from a cash usage of $83.1 million in 2014 primarily due to an increase in net income of $15.9 million and decreases in cash used for working capital. Net investing cash usagedecreased$8.8 million in the first three months of 2015 to a usage of $36.3 million from a usage of $45.1 million in 2014 primarily due to decreased cash used for other investments partially offset by higher capital expenditures. Net financing cash increased $365.4 million to a source of $111.1 million in the first three months of 2015 from a usage of $254.3 million in 2014 primarily due to net increases in short-term borrowings of $740.7 million partially offset by increases in treasury stock purchases of $358.5 million in the first three months of 2015. In the twelve month period from April 1, 2014 through March 31, 2015, the Company generated net operating cash of $1.110 billion, used$301.3 million in investing activities and used$1.102 billion in financing activities. In that same period, the Company invested $214.1 million in capital additions and improvements, made payments on total debt of $500.1 million, increased short-term borrowings by $1.332 billion, purchased $1.847 billion in treasury stock and paid $222.8 million in cash dividends to its shareholders of common stock.

Market Risk

The Company is exposed to market risk associated with interest rate, foreign currency and commodity fluctuations. The Company occasionally utilizes derivative instruments as part of its overall financial risk management policy, but does not use derivative instruments for speculative or trading purposes. In the first three months of 2015, the Company entered into forward currency exchange contracts with maturity dates of less than twelve months to hedge against value changes in foreign currency. The Company believes it may be exposed to continuing market risk from foreign currency exchange rate and commodity price fluctuations. However, the Company does not expect that foreign currency exchange rate and commodity price fluctuations or hedging contract losses will have a material adverse effect on the Company’s financial condition, results of operations or cash flows.

Financial Covenant

Certain borrowings contain a consolidated leverage covenant. The covenant states the Company’s leverage ratio is not to exceed 3.25 to 1.00. The leverage ratio is defined as the ratio of total indebtedness (the sum of Short-term borrowings, Current portion of long-term debt and Long-term debt) at the reporting date to consolidated “Earnings Before Interest, Taxes, Depreciation, and Amortization” (EBITDA) for the twelve month period ended on the same date. Refer to the “Results of Operations” caption below for a reconciliation of EBITDA to Net income. At March 31, 2015, the Company was in compliance with the covenant. The Company’s Notes, Debentures and revolving credit agreements contain various default and cross-default provisions. 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. See Note 7, on page 58, in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 for more information concerning the Company’s debt and related covenant.

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RESULTS OF OPERATIONS

Shown below are net sales and income before taxes by segment for the first quarter:

(Thousands of dollars)	Three Months Ended March 31,
	2015		2014		Change
Net Sales:
Paint Stores Group	$	1,461,505	$	1,360,003	7.5	%
Consumer Group	351,690		325,299		8.1	%
Global Finishes Group	469,556		497,639		-5.6	%
Latin America Coatings Group	166,231		182,388		-8.9	%
Administrative	1,302		1,227		6.1	%
Total	$	2,450,284	$	2,366,556	3.5	%

(Thousands of dollars)	Three Months Ended March 31,
	2015			2014			Change
Income Before Income Taxes:
Paint Stores Group	$	176,576		$	146,265		20.7	%
Consumer Group	55,406			51,088			8.5	%
Global Finishes Group	38,900			46,477			-16.3	%
Latin America Coatings Group	9,500			9,987			-4.9	%
Administrative	(87,141		)	(87,740		)	0.7	%
Total	$	193,241		$	166,077		16.4	%

Consolidated net sales increased in the first quarter of 2015 due primarily to higher paint sales volume in our Paint Stores and Consumer Groups, partially offset by unfavorable currency translation rate changes that decreased consolidated net sales 3.1 percent in the quarter.

Net sales of all consolidated foreign subsidiaries were down13.7 percent to $456.5 million in the quarter versus $529.2 million in the same period last year. The decrease in net sales for all consolidated foreign subsidiaries in the quarter was due primarily to a 12.8 percentnegative impact of foreign translation rate changes. Net sales of all operations other than consolidated foreign subsidiaries were up8.5 percent to $1.994 billion in the quarter as compared to $1.837 billion in the same period last year.

Net sales in the Paint Stores Group increased in the first quarter due primarily to higher architectural paint sales volume. Net sales from stores open for more than twelve calendar months increased6.4 percent in the quarter compared to last year’s comparable period. Sales of non-paint products increased by 14.5 percent over last year’s first quarter. A discussion of changes in volume versus pricing for sales of products other than paint is not pertinent due to the wide assortment of general merchandise sold. Net sales of the Consumer Group increased in the first quarter due primarily to the new paint program launch at a national retailer. Net sales in the Global Finishes Group stated in U.S. dollars decreased in the first quarter due primarily to unfavorable currency translation rate changes, which decreased net sales by 6.9 percent in the quarter. Net sales in the Latin America Coatings Group stated in U.S. dollars decreased in the first quarter, which can primarily be attributed to unfavorable currency translation rate changes partially offset by selling price increases. Currency translation rate changes decreased net sales by 13.9 percent in the quarter. Net sales in the Administrative segment, which primarily consist of external leasing revenue of excess headquarters space and leasing of facilities no longer used by the Company in its primary business, were essentially flat in the first quarter.

Consolidated gross profit increased$66.5 million in the first quarter of 2015 compared to the same period in 2014. As a percent of sales, consolidated gross profit increased to 46.2 percent in the quarter from 45.0 percent in the first quarter of 2014. The percent to sales and dollar increases were primarily due to increased paint sales volume.

The Paint Stores Group’s gross profit was higher than last year by $56.5 million in the first quarter due to higher paint sales volume. The Paint Stores Group’s gross profit margins increased in the quarter compared to the same period last year also due primarily to higher paint sales volume. The Consumer Group’s gross profit increased by $26.4 million in the quarter compared to the same period last year primarily due to increased sales volume. The Consumer Group's gross profit margins increased as a percent of sales for the first quarter compared to the same period last year primarily due to increased sales volume and

22

improved manufacturing volumes and operating efficiency. The Global Finishes Group’s gross profit decreased$13.2 million in the first quarter compared to the same period last year, when stated in U.S. dollars, primarily due to unfavorable currency translation rate changes and decreased sales. The Global Finishes Group’s gross profit margins were down as a percent of sales in the quarter compared to the same period last year due primarily to lower sales. The Latin America Coatings Group’s gross profit decreased by $5.3 million in the first quarter from the same period in the prior year, when stated in U.S. dollars, primarily due to increasing raw material costs and unfavorable currency translation rate changes. The Administrative segment’s gross profit increased by $2.2 million in the first quarter compared to the same period last year.

Selling, general and administrative expenses (SG&A) increased$45.1 million in the first quarter of 2015 versus last year due primarily to increased expenses to support higher sales levels and net new store openings as well as the impact from a new paint program launch at a national retailer. As a percent of sales, consolidated SG&A increased to 37.9 percent in the quarter of 2015 from 37.4 percent primarily due to those same reasons.

The Paint Stores Group’s SG&A increased$26.4 million in the first quarter due primarily to net new store openings and general comparable store expenses to support higher sales levels. The Consumer Group’s SG&A was up$22.2 million in the quarter compared to the same period last year primarily due to a new paint program launch at a national retailer. The Global Finishes Group’s SG&A decreased$5.8 million in the quarter primarily due to currency translation rate changes. The Latin America Coatings Group’s SG&A decreased$2.8 million in the first quarter due to currency translation rate changes partially offset by timing of spending. The Administrative segment’s SG&A increased$5.1 million in the first quarter primarily due to information systems costs.

Other general expense—net decreased$1.1 million in the first quarter primarily due to gain on sale of assets partially offset by increased provisions for environmental expenses in the Paint Stores Group and Administrative segment, respectively.

Other (income) expense—net improved$0.7 million in the first quarter primarily due to decreased foreign currency transaction losses in both the Global Finishes and Latin America Coatings Groups.

Consolidated income before income taxes increased$27.2 million in the first quarter due to higher segment profits in Paint Stores and Consumer Groups partially offset by lower segment profits in the Global Finishes and Latin America Coatings Groups.

The effective income tax rate of 32.0 percent for the first quarter of 2015 was higher than the 30.5 percent effective income tax rate for the first quarter of 2014 primarily due to the reduction in tax benefits related to federal income tax credits as well as a decrease in miscellaneous discrete tax benefits reflected in the first quarter of 2015 compared to first quarter of 2014.

Net income for the first quarter of 2015increased$15.9 million to $131.4 million from $115.5 million in the first quarter of 2014. Diluted net income per common share increased21.1 percent from $1.14 per share in the first quarter of 2014 to $1.38 per share for the first quarter of 2015.

Management considers a measurement that is not in accordance with U.S. generally accepted accounting principles a useful measurement of the operational profitability of the Company. Some investment professionals also utilize such a measurement as an indicator of the value of profits and cash that are generated strictly from operating activities, putting aside working capital and certain other balance sheet changes. For this measurement, management increases net income for significant non-operating and non-cash expense items to arrive at an amount known as “Earnings Before Interest, Taxes, Depreciation and Amortization” (EBITDA). The reader is cautioned that the following value for EBITDA should not be compared to other entities unknowingly. EBITDA should not be considered an alternative to net income or cash flows from operating activities as an indicator of operating performance or as a measure of liquidity. The reader should refer to the determination of net income and cash flows from operating activities in accordance with U. S. generally accepted accounting principles disclosed in the Statements of Consolidated Income and Comprehensive Income and Statements of Consolidated Cash Flows. EBITDA as used by management is calculated as follows:

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(Thousands of dollars)	Three Months Ended March 31,
	2015		2014
Net income	$	131,404	$	115,457
Interest expense	12,351		16,394
Income taxes	61,837		50,620
Depreciation	42,500		41,408
Amortization	6,905		7,552
EBITDA	$	254,997	$	231,431

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CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

Certain statements contained in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and elsewhere in this report constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are based upon management’s current expectations, estimates, assumptions and beliefs concerning future events and conditions and may discuss, among other things, anticipated future performance (including sales and earnings), expected growth, future business plans and the costs and potential liability for environmental-related matters and the lead pigment and lead-based paint litigation. Any statement that is not historical in nature is a forward-looking statement and may be identified by the use of words and phrases such as “expects,” “anticipates,” “believes,” “will,” “will likely result,” “will continue,” “plans to” and similar expressions.

Readers are cautioned not to place undue reliance on any forward-looking statements. Forward-looking statements are necessarily subject to risks, uncertainties and other factors, many of which are outside the control of the Company, that could cause actual results to differ materially from such statements and from the Company’s historical results and experience. These risks, uncertainties and other factors include such things as: (a) general business conditions, strengths of retail and manufacturing economies and the growth in the coatings industry; (b) competitive factors, including pricing pressures and product innovation and quality; (c) changes in raw material and energy supplies and pricing; (d) changes in the Company’s relationships with customers and suppliers; (e) the Company’s ability to attain cost savings from productivity initiatives; (f) the Company’s ability to successfully integrate past and future acquisitions into its existing operations, as well as the performance of the businesses acquired; (g) changes in general domestic economic conditions such as inflation rates, interest rates, tax rates, unemployment rates, higher labor and healthcare costs, recessions, and changing government policies, laws and regulations; (h) risks and uncertainties associated with the Company’s expansion into and its operations in Asia, Europe, South America and other foreign markets, including general economic conditions, inflation rates, recessions, foreign currency exchange rates, foreign investment and repatriation restrictions, legal and regulatory constraints, civil unrest and other external economic and political factors; (i) the achievement of growth in foreign markets, such as Asia, Europe and South America; (j) increasingly stringent domestic and foreign governmental regulations, including those affecting health, safety and the environment; (k) inherent uncertainties involved in assessing the Company’s potential liability for environmental-related activities; (l) other changes in governmental policies, laws and regulations, including changes in accounting policies and standards and taxation requirements (such as new tax laws and new or revised tax law interpretations); (m) the nature, cost, quantity and outcome of pending and future litigation and other claims, including the lead pigment and lead-based paint litigation, and the effect of any legislation and administrative regulations relating thereto; and (n) unusual weather conditions.

Readers are cautioned that it is not possible to predict or identify all of the risks, uncertainties and other factors that may affect future results and that the above list should not be considered to be a complete list. Any forward-looking statement speaks only as of the date on which such statement is made, and the Company undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

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Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The Company is exposed to market risk associated with interest rate, foreign currency and commodity fluctuations. The Company occasionally utilizes derivative instruments as part of its overall financial risk management policy, but does not use derivative instruments for speculative or trading purposes. The Company enters into option and forward currency exchange contracts and commodity swaps to hedge against value changes in foreign currency and commodities. The Company believes it may experience continuing losses from foreign currency translation and commodity price fluctuations. However, the Company does not expect currency translation, transaction, commodity price fluctuations or hedging contract losses to have a material adverse effect on the Company’s financial condition, results of operations or cash flows. There were no material changes in the Company’s exposure to market risk since the disclosure included in Management’s Discussion and Analysis of Financial Condition and Results of Operations in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014.

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Item 4. CONTROLS AND PROCEDURES

As of the end of the period covered by this report, we carried out an evaluation, under the supervision and with the participation of our Chairman and Chief Executive Officer and our Senior Vice President—Finance and Chief Financial Officer, of the effectiveness of our disclosure controls and procedures pursuant to Rule 13a-15 and Rule 15d-15 of the Securities Exchange Act of 1934, as amended (“Exchange Act”). Based upon that evaluation, our Chairman and Chief Executive Officer and our Senior Vice President—Finance and Chief Financial Officer concluded that as of the end of the period covered by this report our disclosure controls and procedures were effective to ensure that information required to be disclosed by us in reports we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in Securities and Exchange Commission rules and forms, and accumulated and communicated to our management including our Chairman and Chief Executive Officer and our Senior Vice President—Finance and Chief Financial Officer, to allow timely decisions regarding required disclosure.

There were no changes in our internal control over financial reporting identified in connection with the evaluation that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II. OTHER INFORMATION

Item 1. Legal Proceedings.

For information with respect to certain environmental-related matters and legal proceedings, see the information included under the captions entitled “Environmental-Related Liabilities” and “Litigation” of “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and Notes 8 and 9 of the “Notes to Condensed Consolidated Financial Statements,” which is incorporated herein by reference.

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Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

A summary of the repurchase activity for the Company’s first quarter is as follows:

Period		Total Number of Shares Purchased	Average Price Paid Per Share		Number of Shares Purchased as Part of a Publicly Announced Plan	Number of Shares That May Yet Be Purchased Under the Plan
January 1 - January 31
	Share repurchase program (1)					5,225,000
	Employee transactions (2)	4,395	$	262.60		NA
February 1 - February 28
	Share repurchase program (1)	2,000,000	$	287.75	2,000,000	3,225,000
	Employee transactions (2)	1,056	275.61			NA
March 1 - March 31
	Share repurchase program (1)					3,225,000
	Employee transactions (2)	113,020	285.14			NA
Total
	Share repurchase program (1)	2,000,000	$	287.75	2,000,000	3,225,000
	Employee transactions (2)	118,471	284.22			NA

⁽¹⁾  All shares were purchased through the Company’s publicly announced share repurchase program. The Company had remaining authorization at March 31, 2015 to purchase 3,225,000 shares. There is no expiration date specified for the program. The Company intends to repurchase stock under the program in the future.

⁽²⁾  All shares were delivered to satisfy the exercise price and/or tax withholding obligations by employees who exercised stock options or had shares of restricted stock vest.

In the fourth quarter of 2014, the Company entered into an accelerated share repurchase (ASR) agreement with a third party financial institution to repurchase 1,600,000 shares of the Company's common stock. Under this agreement, the Company paid $394.6 million to the financial institution and received an initial delivery of 1,600,000 shares. The transaction was completed in the first quarter of 2015, at which time the Company paid a settlement of $39.4 million. The settlement was determined with reference to the average price of the Company's common stock over the term of the agreement. The $394.6 million initial payment and the $39.4 million settlement payment are included in Treasury stock in the accompanying Consolidated Balance Sheet as of March 31, 2015 and in Treasury stock purchases in the accompanying Condensed Statement of Consolidated Cash Flows for the three months then ended.

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Item 5. Other Information.

During the three months ended March 31, 2015, the Audit Committee of the Board of Directors of the Company approved permitted non-audit services to be performed by Ernst & Young LLP, the Company’s independent registered public accounting firm. These non-audit services were approved within categories related to domestic advisory tax and tax compliance services and international tax compliance.

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Item 6. Exhibits.

31(a)	Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer (filed herewith).
31(b)	Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer (filed herewith).
32(a)	Section 1350 Certification of Chief Executive Officer (filed herewith).
32(b)	Section 1350 Certification of Chief Financial Officer (filed herewith).
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document

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Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		THE SHERWIN-WILLIAMS COMPANY
April 22, 2015	By:	/s/ Allen J. Mistysyn
		Allen J. Mistysyn
		Senior Vice President-Corporate Controller
April 22, 2015	By:	/s/ Catherine M. Kilbane
		Catherine M. Kilbane
		Senior Vice President, General
		Counsel and Secretary

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INDEX TO EXHIBITS
Exhibit No.	Exhibit Description
31(a)	Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer (filed herewith).
31(b)	Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer (filed herewith).
32(a)	Section 1350 Certification of Chief Executive Officer (filed herewith).
32(b)	Section 1350 Certification of Chief Financial Officer (filed herewith).
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document

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EX-31.A

EXHIBIT 31(a)

CERTIFICATION

I, Christopher M. Connor, certify that:

1. I have reviewed this quarterly report on Form 10-Q of The Sherwin-Williams Company;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	April 22, 2015	/s/ Christopher M. Connor
		Christopher M. Connor
		Chairman and Chief Executive Officer

EX-31.B

EXHIBIT 31(b)

CERTIFICATION

I, Sean P. Hennessy, certify that:

1. I have reviewed this quarterly report on Form 10-Q of The Sherwin-Williams Company;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	April 22, 2015	/s/ Sean P. Hennessy
		Sean P. Hennessy
		Senior Vice President-Finance and
		Chief Financial Officer

EX-32.A

EXHIBIT 32(a)

SECTION 1350 CERTIFICATION

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of The Sherwin-Williams Company (the "Company") for the period ended March 31, 2015 as furnished with the Securities and Exchange Commission on the date hereof (the "Report"), I, Christopher M. Connor, Chairman and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated:	April 22, 2015	/s/ Christopher M. Connor
		Christopher M. Connor
		Chairman and Chief
		Executive Officer

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to The Sherwin-Williams Company and will be retained by The Sherwin-Williams Company and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.B

EXHIBIT 32(b)

SECTION 1350 CERTIFICATION

CERTIFICATION OF CHIEF FINANCIAL OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of The Sherwin-Williams Company (the "Company") for the period ended March 31, 2015 as furnished with the Securities and Exchange Commission on the date hereof (the "Report"), I, Sean P. Hennessy, Senior Vice President-Finance and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated:	April 22, 2015	/s/ Sean P. Hennessy
		Sean P. Hennessy
		Senior Vice President-Finance and Chief Financial Officer

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to The Sherwin-Williams Company and will be retained by The Sherwin-Williams Company and furnished to the Securities and Exchange Commission or its staff upon request.

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Net Income Per Common Share

3 Months Ended

Mar. 31, 2015

Earnings Per Share [Abstract]

NET INCOME PER COMMON SHARE

NET INCOME PER COMMON SHARE

(Thousands of dollars except per share data)	Three Months Ended March 31,
	2015			2014
Basic
Average common shares outstanding	92,740,059			98,833,210
Net income	$	131,404		$	115,457
Less net income allocated to unvested restricted shares	(475		)	(523		)
Net income allocated to common shares	$	130,929		$	114,934
Basic net income per common share	$	1.41		$	1.16
Diluted
Average common shares outstanding	92,740,059			98,833,210
Stock options and other contingently issuable shares (1)	2,005,070			2,025,671
Average common shares outstanding assuming dilution	94,745,129			100,858,881
Net income	$	131,404		$	115,457
Less net income allocated to unvested restricted shares
assuming dilution	(467		)	(515		)
Net income allocated to common shares assuming
dilution	$	130,937		$	114,942
Diluted net income per common share	$	1.38		$	1.14

⁽¹⁾  Stock options and other contingently issuable shares excluded 12,414 and 2,932 shares due to their anti-dilutive effect for the three months ended March 31, 2015 and 2014, respectively.

The Company has two classes of participating securities: common shares and restricted shares, representing 99% and 1% of outstanding shares, respectively. The restricted shares are shares of unvested restricted stock granted under the Company’s restricted stock award program. Time-based restricted shares receive non-forfeitable dividends, while dividends on performance-based restricted shares are deferred and payment is contingent upon the awards vesting. The time-based restricted shares are considered a participating security, therefore, basic and diluted earnings per share are calculated using the two-class method in accordance with the Earnings Per Share Topic of the ASC.

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Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $)	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014
Statement of Financial Position [Abstract]
Common stock, par value (usd per share)	$ 1	$ 1	$ 1
Common stock, shares outstanding	93,186,295	94,704,173	99,651,879
Preferred stock, par value (usd per share)
Preferred stock, shares outstanding	0	0	21,588

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Product Warranties

3 Months Ended

Mar. 31, 2015

Product Warranties Disclosures [Abstract]

PRODUCT WARRANTIES

PRODUCT WARRANTIES

Changes in the Company’s accrual for product warranty claims during the first three months of 2015 and 2014, including customer satisfaction settlements, were as follows:

(Thousands of dollars)
	2015			2014
Balance at January 1	$	27,723		$	26,755
Charges to expense	5,146			6,260
Settlements	(6,721		)	(7,516		)
Balance at March 31	$	26,148		$	25,499

For further details on the Company’s accrual for product warranty claims, see Note 1 to the Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014.

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Product Warranties (Tables)

3 Months Ended

Mar. 31, 2015

Product Warranties Disclosures [Abstract]

Company's accrual for product warranty claims

Changes in the Company’s accrual for product warranty claims during the first three months of 2015 and 2014, including customer satisfaction settlements, were as follows:

(Thousands of dollars)
	2015			2014
Balance at January 1	$	27,723		$	26,755
Charges to expense	5,146			6,260
Settlements	(6,721		)	(7,516		)
Balance at March 31	$	26,148		$	25,499

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Reportable Segment Information

3 Months Ended

Mar. 31, 2015

Segment Reporting [Abstract]

REPORTABLE SEGMENT INFORMATION

REPORTABLE SEGMENT INFORMATION

The Company reports 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 Disclosures Topic of the ASC. The Company has determined that it has four reportable operating segments: Paint Stores Group, Consumer Group, Global Finishes Group and Latin America Coatings Group (individually, a "Reportable Segment" and collectively, the “Reportable Segments”).

(Thousands of dollars)	Three Months Ended March 31, 2015
	Paint Stores Group		Consumer Group		Global Finishes Group		Latin America Coatings Group		Administrative			Consolidated Totals
Net external sales	$	1,461,505	$	351,690	$	469,556	$	166,231	$	1,302		$	2,450,284
Intersegment transfers			607,538		1,774		10,069		(619,381		)
Total net sales and intersegment transfers	$	1,461,505	$	959,228	$	471,330	$	176,300	$	(618,079	)	$	2,450,284
Segment profit	$	176,576	$	55,406	$	38,900	$	9,500				$	280,382
Interest expense									$	(12,351	)	(12,351		)
Administrative expenses and other									(74,790		)	(74,790		)
Income before income taxes	$	176,576	$	55,406	$	38,900	$	9,500	$	(87,141	)	$	193,241

	Three Months Ended March 31, 2014
	Paint Stores Group		Consumer Group		Global Finishes Group		Latin America Coatings Group		Administrative			Consolidated Totals
Net external sales	$	1,360,003	$	325,299	$	497,639	$	182,388	$	1,227		$	2,366,556
Intersegment transfers			546,562		1,413		10,122		(558,097		)
Total net sales and intersegment transfers	$	1,360,003	$	871,861	$	499,052	$	192,510	$	(556,870	)	$	2,366,556
Segment profit	$	146,265	$	51,088	$	46,477	$	9,987				$	253,817
Interest expense									$	(16,394	)	(16,394		)
Administrative expenses and other									(71,346		)	(71,346		)
Income before income taxes	$	146,265	$	51,088	$	46,477	$	9,987	$	(87,740	)	$	166,077

In the reportable segment financial information, Segment profit was total net sales and intersegment transfers less operating costs and expenses. Domestic intersegment transfers were accounted for at the approximate fully absorbed manufactured cost, based on normal capacity volumes, plus customary distribution costs. International intersegment transfers were accounted for at values comparable to normal unaffiliated customer sales. The Administrative segment includes the administrative expenses of the Company’s corporate headquarters site. Also included in the Administrative segment was interest expense, interest and investment income, certain expenses related to closed facilities and environmental-related matters, and other expenses which were not directly associated with the Reportable Segments. The Administrative segment did not include any significant foreign operations. Also included in the Administrative segment was 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 represented external leasing revenue of excess headquarters space or leasing of facilities no longer used by the Company in its primary businesses. Gains and losses from the sale of property were not a significant operating factor in determining the performance of the Administrative segment.

Net external sales and segment profit of all consolidated foreign subsidiaries were $456.5 million and $18.3 million, respectively, for the first quarter of 2015, and $529.2 million and $32.6 million, respectively, for the first quarter of 2014. Long-lived assets of these subsidiaries totaled $513.8 million and $621.2 million at March 31, 2015 and March 31, 2014, respectively. Domestic operations accounted for the remaining net external sales, segment profits and long-lived assets. No single geographic area outside the United States was significant relative to consolidated net external sales, income before taxes, 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 periods presented.

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Litigation (Details) (USD $)	0 Months Ended		3 Months Ended
	Jul. 01, 2008 defendant jury_trial	Jan. 27, 2014 defendant	Dec. 31, 2014
Trial by Jury, State of Rhode Island [Member]
Loss Contingencies [Line Items]
Number of jury trials	2
Number of additional defendants	2
Santa Clara County, California Proceeding [Member]
Loss Contingencies [Line Items]
Number of additional defendants		2
Amount payable jointly and severally for litigation		$ 1,150,000,000
Titanium Dioxide Antitrust Litigation [Member]
Loss Contingencies [Line Items]
Settlement gain related to litigation settlement			$ 21,400,000

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Other (Tables)

3 Months Ended

Mar. 31, 2015

Other Income and Expenses [Abstract]

Other general expense - net

Included in Other general income - net were the following:

(Thousands of dollars)	Three Months Ended March 31,
	2015			2014
Provisions for environmental matters - net	$	1,050		$	(434	)
Gain on disposition of assets	(2,723		)	(138		)
Total	$	(1,673	)	$	(572	)

Other (income) expense - net

Included in Other (income) expense - net were the following:

(Thousands of dollars)	Three Months Ended March 31,
	2015			2014
Dividend and royalty income	$	(1,081	)	$	(1,051	)
Net expense from financing activities	2,967			2,922
Foreign currency transaction related losses	1,138			2,858
Other income	(5,497		)	(6,306		)
Other expense	2,228			2,080
Total	$	(245	)	$	503

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Health Care, Pension and Other Benefits (Tables)

3 Months Ended

Mar. 31, 2015

Compensation and Retirement Disclosure [Abstract]

Components of net periodic benefit costs for pension and other employee benefit plans

Shown below are the components of the Company’s net periodic benefit cost (credit) for domestic defined benefit pension plans, foreign defined benefit pension plans and postretirement benefits other than pensions:

(Thousands of dollars)	Domestic Defined Benefit Pension Plans						Foreign Defined Benefit Pension Plans						Postretirement Benefits Other than Pensions
	2015			2014			2015			2014			2015			2014
Three Months Ended March 31:
Net periodic benefit cost (credit):
Service cost	$	5,754		$	5,637		$	1,325		$	1,547		$	621		$	609
Interest cost	6,237			6,526			2,271			2,694			2,795			3,195
Expected return on assets	(13,024		)	(12,666		)	(2,431		)	(2,740		)
Amortization of:
Prior service cost (credit)	327			459									(1,132		)	(126		)
Actuarial loss	843						485			356			253
Net periodic benefit cost (credit)	$	137		$	(44	)	$	1,650		$	1,857		$	2,537		$	3,678

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Non-Traded Investments (Details Textual) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Non Traded Investments (Textual) [Abstract]
Carrying amount of the investments, included in other assets	$ 223.8	$ 237.7
Liability for estimated future capital contributions to the investments	$ 196.8	$ 213.0

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Product Warranties (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Company's accrual for product warranty claims
Balance at January 1	$ 27,723	$ 26,755
Charges to expense	5,146	6,260
Settlements	(6,721)	(7,516)
Balance at March 31	$ 26,148	$ 25,499

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Income Taxes (Details Textual) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Effective tax rate (percent)	32.00%	30.50%
Unrecognized tax benefits			$ 31,600,000
Unrecognized tax benefits adjusted			28,200,000
Amount of unrecognized tax benefits where significant change is reasonably possible	0		4,400,000
Accrued income tax interest and penalties			$ 5,700,000

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Debt (Tables)

3 Months Ended

Mar. 31, 2015

Debt Disclosure [Abstract]

Carrying amount and fair value of debt

The table below summarizes the carrying amount and fair value of the Company’s publicly traded debt and non-publicly traded debt in accordance with the Fair Value Measurements and Disclosures Topic of the ASC. The fair values of the Company’s publicly traded debt are based on quoted market prices. The fair values of the Company’s non-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.

(Thousands of dollars)	March 31, 2015				March 31, 2014
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Publicly traded debt	$	1,120,982	$	1,165,804	$	1,620,714	$	1,629,928
Non-traded debt	4,902		4,655		3,905		3,683

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Reportable Segment Information (Details Textual) (USD $)	3 Months Ended
	Mar. 31, 2015 segment	Mar. 31, 2014
Segment Reporting Information [Line Items]
Number of operating segments	4
Reportable Segment Information (Textual) [Abstract]
Net external sales	$ 2,450,284,000	$ 2,366,556,000
Segment profit	280,382,000	253,817,000
Foreign Countries [Member]
Reportable Segment Information (Textual) [Abstract]
Net external sales	456,500,000	529,200,000
Segment profit	18,300,000	32,600,000
Long-lived assets	$ 513,800,000	$ 621,200,000

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Exit or Disposal Activities (Tables)

3 Months Ended

Mar. 31, 2015

Restructuring and Related Activities [Abstract]

Summary of activity and remaining liabilities associated with qualified exit costs

The following table summarizes the activity and remaining liabilities associated with qualified exit costs at March 31, 2015:

(Thousands of dollars)
Exit Plan	Balance at December 31, 2014		Provisions in Cost of goods sold or SG&A		Actual expenditures charged to accrual			Balance at March 31, 2015
Paint Stores Group stores shutdown in 2014:
Other qualified exit costs	$	280	$	142	$	(82	)	$	340
Consumer Group facilities shutdown in 2014:
Severance and related costs	2,732		509		(643		)	2,598
Other qualified exit costs	781				(296		)	485
Global Finishes Group exit of business in 2014:
Severance and related costs	104				(104		)
Other qualified exit costs	1,080		110		(21		)	1,169
Paint Stores Group facility shutdown in 2013:
Severance and related costs	654				(358		)	296
Other qualified exit costs	1,205				(98		)	1,107
Global Finishes Group stores shutdown in 2013:
Severance and related costs	28				(25		)	3
Other qualified exit costs	138				(57		)	81
Other qualified exit costs for facilities shutdown prior to 2013	1,514				(282		)	1,232
Totals	$	8,516	$	761	$	(1,966	)	$	7,311

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Basis of Presentation

3 Months Ended

Mar. 31, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

BASIS OF PRESENTATION

BASIS OF PRESENTATION

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information and the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included.

There have been no significant changes in critical accounting policies since December 31, 2014. Accounting estimates were revised as necessary during the first three months of 2015 based on new information and changes in facts and circumstances. Certain amounts in the 2014 condensed consolidated financial statements have been reclassified to conform to the 2015 presentation.

The Company primarily uses the last-in, first-out (LIFO) method of valuing inventory. An actual valuation of inventory under the LIFO method can be made only at the end of each year based on the inventory levels and costs at that time. Accordingly, interim LIFO calculations are based on management’s estimates of expected year-end inventory levels and costs are subject to the final year-end LIFO inventory valuation. In addition, interim inventory levels include management’s estimates of annual inventory losses due to shrinkage and other factors. The final year-end valuation of inventory is based on an annual physical inventory count performed during the fourth quarter. For further information on inventory valuations and other matters, refer to the consolidated financial statements and footnotes thereto included in the Company’s Form 10-K for the year ended December 31, 2014.

The consolidated results for the three months endedMarch 31, 2015 are not necessarily indicative of the results to be expected for the year ending December 31, 2015.

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Dividends

3 Months Ended

Mar. 31, 2015

Dividends [Abstract]

DIVIDENDS

DIVIDENDS

Dividends paid on common stock during the first quarter of 2015 and 2014 were $.67 per common share and $.55 per common share, respectively.

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Exit or Disposal Activities

3 Months Ended

Mar. 31, 2015

Restructuring and Related Activities [Abstract]

EXIT OR DISPOSAL ACTIVITIES

EXIT OR DISPOSAL ACTIVITIES

Liabilities associated with exit or disposal activities are recognized as incurred in accordance with the Exit or Disposal Cost Obligations Topic of the ASC. Qualified exit costs primarily include post-closure rent expenses, incremental post-closure costs and costs of employee terminations. Adjustments may be made to liabilities accrued for qualified exit costs if information becomes available upon which more accurate amounts can be reasonably estimated. Concurrently, property, plant and equipment is tested for impairment in accordance with the Property, Plant and Equipment Topic of the ASC, and if impairment exists, the carrying value of the related assets is reduced to estimated fair value. Additional impairment may be recorded for subsequent revisions in estimated fair value.

In the three months ended March 31, 2015, fourteen stores in the Paint Stores Group and one store in the Latin America Coatings Group were closed due to lower demand or redundancy. No provisions were incurred for the 2015 store shutdowns due to the timing of lease cancellations and movement of employees to other locations.

The following table summarizes the activity and remaining liabilities associated with qualified exit costs at March 31, 2015:

(Thousands of dollars)
Exit Plan	Balance at December 31, 2014		Provisions in Cost of goods sold or SG&A		Actual expenditures charged to accrual			Balance at March 31, 2015
Paint Stores Group stores shutdown in 2014:
Other qualified exit costs	$	280	$	142	$	(82	)	$	340
Consumer Group facilities shutdown in 2014:
Severance and related costs	2,732		509		(643		)	2,598
Other qualified exit costs	781				(296		)	485
Global Finishes Group exit of business in 2014:
Severance and related costs	104				(104		)
Other qualified exit costs	1,080		110		(21		)	1,169
Paint Stores Group facility shutdown in 2013:
Severance and related costs	654				(358		)	296
Other qualified exit costs	1,205				(98		)	1,107
Global Finishes Group stores shutdown in 2013:
Severance and related costs	28				(25		)	3
Other qualified exit costs	138				(57		)	81
Other qualified exit costs for facilities shutdown prior to 2013	1,514				(282		)	1,232
Totals	$	8,516	$	761	$	(1,966	)	$	7,311

For further details on the Company’s exit or disposal activities, see Note 5 to the Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014.

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Changes in Cumulative Other Comprehensive Loss

3 Months Ended

Mar. 31, 2015

Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]

CHANGES IN CUMULATIVE OTHER COMPREHENSIVE LOSS

CHANGES IN CUMULATIVE OTHER COMPREHENSIVE LOSS

The following tables summarize the changes in Cumulative other comprehensive loss for the three months ended March 31, 2015 and 2014:

(Thousands of dollars)
	Foreign Currency Translation Adjustments			Net Actuarial (Losses) Gains and Prior Service Costs Recognized for Employee Benefit Plans			Unrealized Net Gains (Losses) on Available-for-Sale Securities			Total Cumulative Other Comprehensive Loss
Balance at December 31, 2014	$	(354,384	)	$	(118,167	)	$	593		$	(471,958	)
Other comprehensive loss before reclassifications(1)	(56,776		)				(132		)	(56,908		)
Amounts reclassified from other comprehensive (loss) income(2)				570			(9		)	561
Net other comprehensive (loss) income	(56,776		)	570			(141		)	(56,347		)
Balance at March 31, 2015	$	(411,160	)	$	(117,597	)	$	452		$	(528,305	)

⁽¹⁾ Net of taxes of $81 for unrealized net losses on available-for-sale securities.

⁽²⁾ Net of taxes of $(206) for net actuarial losses and prior service costs recognized for employee benefit plans and $4 for realized gains on the sale of available-for-sale securities.

(Thousands of dollars)
	Foreign Currency Translation Adjustments			Net Actuarial Losses and Prior Service Costs Recognized for Employee Benefit Plans			Unrealized Net Gains (Losses) on Available-for-Sale Securities			Total Cumulative Other Comprehensive Loss
Balance at December 31, 2013	$	(250,942	)	$	(70,611	)	$	509		$	(321,044	)
Other comprehensive loss before reclassifications(3)	(8,055		)	(570		)	(65		)	(8,690		)
Amounts reclassified from other comprehensive (loss) income(4)				504			(17		)	487
Net other comprehensive (loss) income	(8,055		)	(66		)	(82		)	(8,203		)
Balance at March 31, 2014	$	(258,997	)	$	(70,677	)	$	427		$	(329,247	)

⁽³⁾ Net of taxes of $244 for net actuarial losses and prior service costs recognized for employee benefit plans and $41 for unrealized net losses on available-for-sale securities.

⁽⁴⁾ Net of taxes of $(207) for net actuarial losses and prior service costs recognized for employee benefit plans and $11 for realized gains on the sale of available-for-sale securities.

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Net Income Per Common Share (Details) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2015 class		Mar. 31, 2014
Basic
Average common shares outstanding	92,740,059		98,833,210
Net income	$ 131,404		$ 115,457
Less net income allocated to unvested restricted shares	(475)		(523)
Net income allocated to common shares	130,929		114,934
Basic net income per common share (in dollars per share)	$ 1.41		$ 1.16
Diluted
Average common shares outstanding	92,740,059		98,833,210
Stock options and other contingently issuable shares	2,005,070	[1]	2,025,671	[1]
Average common shares outstanding assuming dilution	94,745,129		100,858,881
Net income	131,404		115,457
Less net income allocated to unvested restricted shares assuming dilution	(467)		(515)
Net income allocated to common shares assuming dilution	$ 130,937		$ 114,942
Diluted net income per common share (in dollars per share)	$ 1.38		$ 1.14
Average common shares outstanding, anti-dilutive (in shares)	12,414		2,932
Classes of participating securities	2
Percent common shares representing outstanding shares	99.00%
Percent restricted shares representing outstanding shares	1.00%

[1] Stock options and other contingently issuable shares excluded 12,414 and 2,932 shares due to their anti-dilutive effect for the three months ended March 31, 2015 and 2014, respectively.

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Net Income Per Common Share (Tables)

3 Months Ended

Mar. 31, 2015

Earnings Per Share [Abstract]

Computation of net income per common share

(Thousands of dollars except per share data)	Three Months Ended March 31,
	2015			2014
Basic
Average common shares outstanding	92,740,059			98,833,210
Net income	$	131,404		$	115,457
Less net income allocated to unvested restricted shares	(475		)	(523		)
Net income allocated to common shares	$	130,929		$	114,934
Basic net income per common share	$	1.41		$	1.16
Diluted
Average common shares outstanding	92,740,059			98,833,210
Stock options and other contingently issuable shares (1)	2,005,070			2,025,671
Average common shares outstanding assuming dilution	94,745,129			100,858,881
Net income	$	131,404		$	115,457
Less net income allocated to unvested restricted shares
assuming dilution	(467		)	(515		)
Net income allocated to common shares assuming
dilution	$	130,937		$	114,942
Diluted net income per common share	$	1.38		$	1.14

⁽¹⁾  Stock options and other contingently issuable shares excluded 12,414 and 2,932 shares due to their anti-dilutive effect for the three months ended March 31, 2015 and 2014, respectively.

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Dividends (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Dividends [Abstract]
Dividends paid per common share (in dollars per share)	$ 0.67	$ 0.55

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Other Long-Term Liabilities (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2015 ManufacturingSite	Mar. 31, 2014
Other Long-Term Liabilities (Textual) [Abstract]
Amount by which unaccrued maximum of estimated range exceeds minimum	$ 89.4
Accruals for extended environmental-related activities	112.9	83.3
Estimated costs of current investigation and remediation activities included in other accruals	16.9	15.4
Number of manufacturing sites accounting for the majority of the accrual for environmental-related activities	2
Accruals for environmental-related activities of two sites	81.9
Percentage of accrual for environmental-related activities related to two sites	63.10%
Amount of unaccrued maximum related to two sites	$ 58.2
Percentage of aggregate unaccrued maximum related to two sites	65.10%

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Debt (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Publicly traded debt [Member]
Financial Instruments
Carrying Amount	$ 1,120,982	$ 1,620,714
Fair Value	1,165,804	1,629,928
Non-traded debt [Member]
Financial Instruments
Carrying Amount	4,902	3,905
Fair Value	$ 4,655	$ 3,683

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Consolidated Balance Sheets (Unaudited) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014
Current assets:
Cash and cash equivalents	$ 64,013	$ 40,732	$ 366,465
Accounts receivable, less allowance	1,234,612	1,130,565	1,174,116
Inventories:
Finished goods	981,334	841,784	898,701
Work in process and raw materials	179,916	191,743	198,082
Total net inventory	1,161,250	1,033,527	1,096,783
Deferred income taxes	107,869	109,087	102,473
Other current assets	198,046	252,869	227,641
Total current assets	2,765,790	2,566,780	2,967,478
Goodwill	1,149,121	1,158,346	1,174,758
Intangible assets	277,919	289,127	312,295
Deferred pension assets	250,463	250,144	303,067
Other assets	417,525	420,625	427,233
Property, plant and equipment:
Land	121,626	125,691	129,457
Buildings	691,541	698,202	705,034
Machinery and equipment	1,946,261	1,952,037	1,871,287
Construction in progress	63,419	59,330	48,946
Total gross property, plant and equipment	2,822,847	2,835,260	2,754,724
Less allowances for depreciation	1,824,415	1,814,230	1,750,330
Total net property, plant and equipment	998,432	1,021,030	1,004,394
Total Assets	5,859,250	5,706,052	6,189,225
Current liabilities:
Short-term borrowings	1,405,369	679,436	87,378
Accounts payable	1,174,840	1,042,182	1,130,338
Compensation and taxes withheld	249,707	360,458	232,995
Accrued taxes	77,602	86,744	76,538
Current portion of long-term debt	3,143	3,265	502,223
Other accruals	468,384	508,581	423,172
Total current liabilities	3,379,045	2,680,666	2,452,644
Long-term debt	1,122,741	1,122,715	1,122,396
Postretirement benefits other than pensions	278,771	277,892	270,485
Other long-term liabilities	609,521	628,309	690,661
Shareholders’ equity:
Common stock - $1.00 par value 93,186,295, 94,704,173 and 99,651,879 shares outstanding at March 31, 2015, December 31, 2014 and March 31, 2014 respectively	115,118	114,525	113,839
Preferred stock - convertible, no par value: 21,588 shares outstanding at March 31, 2014	0	0	21,588
Unearned ESOP compensation	0	0	(21,588)
Other capital	2,187,144	2,079,639	1,951,076
Retained earnings	2,493,469	2,424,674	1,834,417
Treasury stock, at cost	(3,798,254)	(3,150,410)	(1,917,046)
Cumulative other comprehensive loss	(528,305)	(471,958)	(329,247)
Total shareholders' equity	469,172	996,470	1,653,039
Total Liabilities and Shareholders’ Equity	$ 5,859,250	$ 5,706,052	$ 6,189,225

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Litigation

3 Months Ended

Mar. 31, 2015

Loss Contingency, Information about Litigation Matters [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 has not settled any material lead pigment or lead-based paint 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.

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. The Company has not accrued any amounts for such litigation. With respect to such litigation, including the public nuisance litigation, the Company does not believe that it is probable that a loss has occurred, and it is not possible to estimate the range of potential losses as there is no prior history of a loss of this nature and 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. In the event any significant liability is determined to be attributable to the Company relating to such litigation, the recording of the liability may result in a material impact on net income for the annual or interim period during which such liability is accrued. Additionally, 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 and the County of Santa Clara, California and other public entities in the State of California. Except for the Santa Clara County, California proceeding, all of these legal proceedings have been concluded in favor of the Company and other defendants at various stages in the proceedings.

The proceedings initiated by the State of Rhode Island included two jury trials. At the conclusion of the second trial, the jury returned a verdict finding that (i) the cumulative presence of lead pigment in paints and coatings on buildings in the State of Rhode Island constitutes a public nuisance, (ii) the Company, along with two other defendants, caused or substantially contributed to the creation of the public nuisance and (iii) the Company and two other defendants should be ordered to abate the public nuisance. The Company and two other defendants appealed and, on July 1, 2008, the Rhode Island Supreme Court, among other determinations, reversed the judgment of abatement with respect to the Company and two other defendants. The Rhode Island Supreme Court’s decision reversed the public nuisance liability judgment against the Company on the basis that the complaint failed to state a public nuisance claim as a matter of law.

The Santa Clara County, California proceeding was initiated in March 2000 in the Superior Court of the State of California, County of Santa Clara. In the original complaint, the plaintiffs asserted various claims including fraud and concealment, strict product liability/failure to warn, strict product liability/design defect, negligence, negligent breach of a special duty, public nuisance, private nuisance, and violations of California’s Business and Professions Code. A number of the asserted claims were resolved in favor of the defendants through pre-trial proceedings. The named plaintiffs in the Fourth Amended Complaint, filed on March 16, 2011, are the Counties of Santa Clara, Alameda, Los Angeles, Monterey, San Mateo, Solano and Ventura, the Cities of Oakland and San Diego and the City and County of San Francisco. The Fourth Amended Complaint asserted a sole claim for public nuisance, alleging that the presence of lead pigments for use in paint and coatings in, on and around residences in the plaintiffs’ jurisdictions constitutes a public nuisance. The plaintiffs sought the abatement of the alleged public nuisance that exists within the plaintiffs’ jurisdictions. A trial commenced on July 15, 2013 and ended on August 22, 2013. The court entered final judgment on January 27, 2014, finding in favor of the plaintiffs and against the Company and two other defendants (ConAgra Grocery Products Company and NL Industries, Inc.). The final judgment held the Company jointly and severally liable with the other two defendants to pay $1.15 billion into a fund to abate the public nuisance. The Company strongly disagrees with the judgment. On February 18, 2014, the Company filed a motion for new trial and a motion to vacate the judgment. The court denied these motions on March 24, 2014. On March 28, 2014, the Company filed a notice of appeal to the Sixth District Court of Appeal for the State of California. The filing of the notice of appeal effects an automatic stay of the judgment without the requirement to post a bond. The Company believes that the judgment conflicts with established principles of law and is unsupported by the evidence. The Company has had a favorable history with respect to lead pigment and lead-based paint litigation, particularly other public nuisance litigation, and accordingly, the Company believes that it is not probable that a loss has occurred and it is not possible to estimate the range of potential loss with respect to the case.

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 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. Also, in Yasmine Clark v. The Sherwin-Williams Company, et al., the Wisconsin Circuit Court, Milwaukee County, on March 25, 2014, held that the application to a pending case of Section 895.046 of the Wisconsin Statutes (which clarifies the application of the risk contribution theory) is unconstitutional as a violation of the plaintiff’s right to due process of law under the Wisconsin Constitution. On April 8, 2014, defendants filed a petition requesting the Wisconsin Court of Appeal to hear the issue as an interlocutory appeal. On August 21, 2014, the Wisconsin Court of Appeal granted defendants' petition.

Insurance coverage litigation. The Company and its liability insurers, including certain underwriters at Lloyd’s of London, initiated legal proceedings against each other to primarily 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, is currently stayed and inactive. 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, 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.

Litigation related to Consorcio Comex. As previously disclosed, the Company entered into a definitive Stock Purchase Agreement (as subsequently amended and restated, the “Purchase Agreement”), with Avisep, S.A. de C.V. (“Avisep”) and Bevisep, S.A. de C.V. (“Bevisep”) to, among other things, acquire the Mexico business of Consorcio Comex, S.A. de C.V. (the "Acquisition"). Under the terms of the Purchase Agreement, either the Company or Avisep and Bevisep had the right to terminate the Purchase Agreement in the event that the closing of the Acquisition did not occur on or prior to March 31, 2014 and such party was not in material breach of the Purchase Agreement.

On April 3, 2014, the Company sent notice to Avisep and Bevisep that the Company was terminating the Purchase Agreement. On April 3, 2014, the Company filed a complaint for declaratory judgment in the Supreme Court of the State of New York, New York County, requesting the court to declare that the Company had used commercially reasonable efforts as required under the Purchase Agreement and has not breached the Purchase Agreement. On August 7, 2014, the case was removed by Avisep and Bevisep to the United States District Court for the Southern District of New York. On April 11, 2014, Avisep and Bevisep initiated an arbitration proceeding against the Company in the International Court of Arbitration contending that the Company breached the Purchase Agreement by terminating the Purchase Agreement and not utilizing commercially reasonable efforts under the Purchase Agreement, which allegedly caused Avisep and Bevisep to incur damages. The Company believes that the claims are without merit and intends to vigorously defend against such claims.

Titanium dioxide suppliers antitrust class action lawsuit. The Company is a member of the plaintiff class related to Titanium Dioxide Antitrust Litigation that was initiated in 2010 against certain suppliers alleging various theories of relief arising from purchases of titanium dioxide made from 2003 through 2012. The Court approved a settlement less attorney fees and expense, and the Company timely submitted claims to recover its pro-rata portion of the settlement. There was no specified deadline for the claims administrator to complete the review of all claims submitted. In October 2014, the Company was notified that it would receive a disbursement of settlement funds, and the Company received a pro-rata disbursement net of all fees of approximately $21.4 million. The Company recorded this settlement gain in the fourth quarter of 2014.

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Condensed Statements of Consolidated Cash Flows (Unaudited) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
OPERATING ACTIVITIES
Net income	$ 131,404	$ 115,457
Adjustments to reconcile net income to net operating cash:
Depreciation	42,500	41,408
Amortization of intangible assets	6,905	7,552
Stock-based compensation expense	18,079	15,858
Provisions for qualified exit costs	761	2,897
Provisions for environmental-related matters	1,050	(434)
Defined benefit pension plans net cost	1,787	1,813
Net increase in postretirement liability	(111)	1,485
Other	(2,702)	2,747
Change in working capital accounts - net	(254,221)	(257,041)
Costs incurred for environmental-related matters	(2,875)	(3,384)
Costs incurred for qualified exit costs	(1,966)	(529)
Other	4,321	(10,948)
Net operating cash	(55,068)	(83,119)
INVESTING ACTIVITIES
Capital expenditures	(42,903)	(29,364)
Proceeds from sale of assets	6,677	0
Increase in other investments	(56)	(15,705)
Net investing cash	(36,282)	(45,069)
FINANCING ACTIVITIES
Net increase (decrease) in short-term borrowings	731,733	(8,932)
Payments of long-term debt	(96)	(680)
Payments of cash dividends	(62,609)	(55,090)
Proceeds from stock options exercised	37,494	48,657
Income tax effect of stock-based compensation exercises and vesting	52,632	39,896
Treasury stock purchased	(614,911)	(256,391)
Other	(33,108)	(21,766)
Net financing cash	111,135	(254,306)
Effect of exchange rate changes on cash	3,496	4,070
Net increase (decrease) in cash and cash equivalents	23,281	(378,424)
Cash and cash equivalents at beginning of year	40,732	744,889
Cash and cash equivalents at end of period	64,013	366,465
Income taxes paid	16,044	13,028
Interest paid	$ 9,381	$ 10,359

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Statements of Consolidated Income and Comprehensive Income (Unaudited) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Income Statement [Abstract]
Net sales	$ 2,450,284	$ 2,366,556
Cost of goods sold	1,317,835	1,300,655
Gross profit	1,132,449	1,065,901
Percent to net sales	46.20%	45.00%
Selling, general and administrative expenses	929,197	884,088
Percent to net sales	37.90%	37.40%
Other general income - net	(1,673)	(572)
Interest expense	12,351	16,394
Interest and net investment income	(422)	(589)
Other (income) expense - net	(245)	503
Income before income taxes	193,241	166,077
Income taxes	61,837	50,620
Net income	131,404	115,457
Net income per common share:
Basic (in dollars per share)	$ 1.41	$ 1.16
Diluted (in dollars per share)	$ 1.38	$ 1.14
Average shares outstanding - basic (in shares)	92,740,059	98,833,210
Average shares and equivalents outstanding - diluted (in shares)	94,745,129	100,858,881
Comprehensive income	$ 75,057	$ 107,254

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Reportable Segment Information (Tables)

3 Months Ended

Mar. 31, 2015

Segment Reporting [Abstract]

Reportable segment information

(Thousands of dollars)	Three Months Ended March 31, 2015
	Paint Stores Group		Consumer Group		Global Finishes Group		Latin America Coatings Group		Administrative			Consolidated Totals
Net external sales	$	1,461,505	$	351,690	$	469,556	$	166,231	$	1,302		$	2,450,284
Intersegment transfers			607,538		1,774		10,069		(619,381		)
Total net sales and intersegment transfers	$	1,461,505	$	959,228	$	471,330	$	176,300	$	(618,079	)	$	2,450,284
Segment profit	$	176,576	$	55,406	$	38,900	$	9,500				$	280,382
Interest expense									$	(12,351	)	(12,351		)
Administrative expenses and other									(74,790		)	(74,790		)
Income before income taxes	$	176,576	$	55,406	$	38,900	$	9,500	$	(87,141	)	$	193,241

	Three Months Ended March 31, 2014
	Paint Stores Group		Consumer Group		Global Finishes Group		Latin America Coatings Group		Administrative			Consolidated Totals
Net external sales	$	1,360,003	$	325,299	$	497,639	$	182,388	$	1,227		$	2,366,556
Intersegment transfers			546,562		1,413		10,122		(558,097		)
Total net sales and intersegment transfers	$	1,360,003	$	871,861	$	499,052	$	192,510	$	(556,870	)	$	2,366,556
Segment profit	$	146,265	$	51,088	$	46,477	$	9,987				$	253,817
Interest expense									$	(16,394	)	(16,394		)
Administrative expenses and other									(71,346		)	(71,346		)
Income before income taxes	$	146,265	$	51,088	$	46,477	$	9,987	$	(87,740	)	$	166,077

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Changes in Cumulative Other Comprehensive Loss (Tables)

3 Months Ended

Mar. 31, 2015

Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]

Changes in Cumulative Other Comprehensive Loss

The following tables summarize the changes in Cumulative other comprehensive loss for the three months ended March 31, 2015 and 2014:

(Thousands of dollars)
	Foreign Currency Translation Adjustments			Net Actuarial (Losses) Gains and Prior Service Costs Recognized for Employee Benefit Plans			Unrealized Net Gains (Losses) on Available-for-Sale Securities			Total Cumulative Other Comprehensive Loss
Balance at December 31, 2014	$	(354,384	)	$	(118,167	)	$	593		$	(471,958	)
Other comprehensive loss before reclassifications(1)	(56,776		)				(132		)	(56,908		)
Amounts reclassified from other comprehensive (loss) income(2)				570			(9		)	561
Net other comprehensive (loss) income	(56,776		)	570			(141		)	(56,347		)
Balance at March 31, 2015	$	(411,160	)	$	(117,597	)	$	452		$	(528,305	)

⁽¹⁾ Net of taxes of $81 for unrealized net losses on available-for-sale securities.

⁽²⁾ Net of taxes of $(206) for net actuarial losses and prior service costs recognized for employee benefit plans and $4 for realized gains on the sale of available-for-sale securities.

(Thousands of dollars)
	Foreign Currency Translation Adjustments			Net Actuarial Losses and Prior Service Costs Recognized for Employee Benefit Plans			Unrealized Net Gains (Losses) on Available-for-Sale Securities			Total Cumulative Other Comprehensive Loss
Balance at December 31, 2013	$	(250,942	)	$	(70,611	)	$	509		$	(321,044	)
Other comprehensive loss before reclassifications(3)	(8,055		)	(570		)	(65		)	(8,690		)
Amounts reclassified from other comprehensive (loss) income(4)				504			(17		)	487
Net other comprehensive (loss) income	(8,055		)	(66		)	(82		)	(8,203		)
Balance at March 31, 2014	$	(258,997	)	$	(70,677	)	$	427		$	(329,247	)

⁽³⁾ Net of taxes of $244 for net actuarial losses and prior service costs recognized for employee benefit plans and $41 for unrealized net losses on available-for-sale securities.

⁽⁴⁾ Net of taxes of $(207) for net actuarial losses and prior service costs recognized for employee benefit plans and $11 for realized gains on the sale of available-for-sale securities.

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Fair Value Measurements (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Assets:
Deferred compensation plan asset	$ 1,132	[1]
Liabilities:
Deferred compensation plan liability	34,012	[2]
Significant Other Observable Inputs (Level 2) [Member]
Assets:
Deferred compensation plan asset	22,895	[1]
Fair Value Measurements (Textual) [Abstract]
Cost basis of the investment funds	23,792
Estimate of Fair Value Measurement [Member]
Assets:
Deferred compensation plan asset	24,027	[1]
Liabilities:
Deferred compensation plan liability	$ 34,012	[2]

[1] The deferred compensation plan asset consists of the investment funds maintained for the future payments under the Company’s executive deferred compensation plan, which is structured as a rabbi trust. 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 or broker models. The cost basis of the investment funds is $23,792.

[2] The deferred compensation plan liability is the Company’s liability under its executive deferred compensation plan. The liability represents the fair value of the participant shadow accounts, and the value is based on quoted market prices.

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Other (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015 OptionPlan Contract	Mar. 31, 2014 OptionPlan Contract
Other general income - net
Provisions for environmental matters - net	$ 1,050	$ (434)
Gain on disposition of assets	(2,723)	(138)
Total	(1,673)	(572)
Other (income) expense - net
Dividend and royalty income	(1,081)	(1,051)
Net expense from financing activities	2,967	2,922
Foreign currency transaction related losses	1,138	2,858
Other income	(5,497)	(6,306)
Other expense	2,228	2,080
Total	$ (245)	$ 503
Number of foreign currency option outstanding	0	0
Number of foreign forward contracts outstanding	0	0

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Exit or Disposal Activities (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Summary of activity and remaining liabilities associated with qualified exit costs
Balance at December 31, 2014	$ 8,516
Provisions in Cost of goods sold or SG&A	761	2,897
Actual expenditures charged to accrual	(1,966)	(529)
Balance at March 31, 2015	7,311
Paint Stores Group [Member]
Exit or Disposal Activities (Textual) [Abstract]
Stores closed	14
Latin America Coatings Group [Member]
Exit or Disposal Activities (Textual) [Abstract]
Stores closed	1
Severance and related costs [Member] | Paint Stores Group [Member] | Facilities Shut Down in 2013 [Member]
Summary of activity and remaining liabilities associated with qualified exit costs
Balance at December 31, 2014	654
Actual expenditures charged to accrual	(358)
Balance at March 31, 2015	296
Severance and related costs [Member] | Consumer Group [Member] | Facilities Shutdown in 2014 [Member]
Summary of activity and remaining liabilities associated with qualified exit costs
Balance at December 31, 2014	2,732
Provisions in Cost of goods sold or SG&A	509
Actual expenditures charged to accrual	(643)
Balance at March 31, 2015	2,598
Severance and related costs [Member] | Global Finishes Group [Member] | Exit of Business in 2014 [Member]
Summary of activity and remaining liabilities associated with qualified exit costs
Balance at December 31, 2014	104
Actual expenditures charged to accrual	(104)
Severance and related costs [Member] | Global Finishes Group [Member] | Stores Shut Down in 2013 [Member]
Summary of activity and remaining liabilities associated with qualified exit costs
Balance at December 31, 2014	28
Actual expenditures charged to accrual	(25)
Balance at March 31, 2015	3
Other qualified exit costs [Member] | Facilities Shutdown Prior to 2013 [Member]
Summary of activity and remaining liabilities associated with qualified exit costs
Balance at December 31, 2014	1,514
Actual expenditures charged to accrual	(282)
Balance at March 31, 2015	1,232
Other qualified exit costs [Member] | Paint Stores Group [Member] | Stores Shutdown In 2014 [Member]
Summary of activity and remaining liabilities associated with qualified exit costs
Balance at December 31, 2014	280
Provisions in Cost of goods sold or SG&A	142
Actual expenditures charged to accrual	(82)
Balance at March 31, 2015	340
Other qualified exit costs [Member] | Paint Stores Group [Member] | Facilities Shut Down in 2013 [Member]
Summary of activity and remaining liabilities associated with qualified exit costs
Balance at December 31, 2014	1,205
Actual expenditures charged to accrual	(98)
Balance at March 31, 2015	1,107
Other qualified exit costs [Member] | Consumer Group [Member] | Facilities Shutdown in 2014 [Member]
Summary of activity and remaining liabilities associated with qualified exit costs
Balance at December 31, 2014	781
Actual expenditures charged to accrual	(296)
Balance at March 31, 2015	485
Other qualified exit costs [Member] | Global Finishes Group [Member] | Exit of Business in 2014 [Member]
Summary of activity and remaining liabilities associated with qualified exit costs
Balance at December 31, 2014	1,080
Provisions in Cost of goods sold or SG&A	110
Actual expenditures charged to accrual	(21)
Balance at March 31, 2015	1,169
Other qualified exit costs [Member] | Global Finishes Group [Member] | Stores Shut Down in 2013 [Member]
Summary of activity and remaining liabilities associated with qualified exit costs
Balance at December 31, 2014	138
Actual expenditures charged to accrual	(57)
Balance at March 31, 2015	$ 81

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Health Care, Pension and Other Benefits (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Domestic Defined Benefit Pension Plans [Member]
Net periodic benefit cost (credit):
Service cost	$ 5,754	$ 5,637
Interest cost	6,237	6,526
Expected return on assets	(13,024)	(12,666)
Amortization of:
Prior service cost (credit)	327	459
Actuarial loss	843
Net periodic benefit cost (credit)	137	(44)
Foreign Defined Benefit Pension Plans [Member]
Net periodic benefit cost (credit):
Service cost	1,325	1,547
Interest cost	2,271	2,694
Expected return on assets	(2,431)	(2,740)
Amortization of:
Actuarial loss	485	356
Net periodic benefit cost (credit)	1,650	1,857
Postretirement Benefits Other than Pensions [Member]
Net periodic benefit cost (credit):
Service cost	621	609
Interest cost	2,795	3,195
Amortization of:
Prior service cost (credit)	(1,132)	(126)
Actuarial loss	253
Net periodic benefit cost (credit)	$ 2,537	$ 3,678

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Other Long-Term Liabilities

3 Months Ended

Mar. 31, 2015

Environmental Remediation Obligations [Abstract]

OTHER LONG-TERM LIABILITIES

OTHER LONG-TERM LIABILITIES

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 are determined based on currently available facts regarding each site. If the best estimate of 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. At March 31, 2015, the unaccrued maximum of the estimated range of possible outcomes is $89.4 million higher than the minimum.

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. Actual costs incurred may vary from these 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.

Included in Other long-term liabilities at March 31, 2015 and 2014 were accruals for extended environmental-related activities of $112.9 million and $83.3 million, respectively. Estimated costs of current investigation and remediation activities of $16.9 million and $15.4 million are included in Other accruals at March 31, 2015 and 2014, respectively.

Two of the Company’s currently and formerly owned manufacturing sites account for the majority of the accrual for environmental-related activities and the unaccrued maximum of the estimated range of possible outcomes at March 31, 2015. At March 31, 2015, $81.9 million, or 63.1 percent of the total accrual, related directly to these two sites. In the aggregate unaccrued maximum of $89.4 million at March 31, 2015, $58.2 million, or 65.1 percent, related to the two manufacturing sites. 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.

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. 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. 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 period 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 indefinite amount of time to conduct investigation activities at any site, the indefinite amount of time to obtain environmental agency approval, as necessary, with respect to investigation and remediation activities, and the indefinite amount of time necessary to conduct remediation activities.

For further details on the Company’s Other long-term liabilities, see Note 8 to the Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014.

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Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2015

Fair Value Disclosures [Abstract]

Financial assets and liabilities measured at fair value on a recurring basis

The following table presents the Company’s financial assets and liabilities that are measured at fair value on a recurring basis, categorized using the fair value hierarchy:

(Thousands of dollars)
			Quoted Prices
			in Active				Significant
	Fair Value at		Markets for		Significant Other		Unobservable
	March 31,		Identical Assets		Observable Inputs		Inputs
	2015		(Level 1)		(Level 2)		(Level 3)
Assets:
Deferred compensation plan asset (1)	$	24,027	$	1,132	$	22,895
Liabilities:
Deferred compensation plan liability (2)	$	34,012	$	34,012

⁽¹⁾  The deferred compensation plan asset consists of the investment funds maintained for the future payments under the Company’s executive deferred compensation plan, which is structured as a rabbi trust. 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 or broker models. The cost basis of the investment funds is $23,792.

⁽²⁾  The deferred compensation plan liability is the Company’s liability under its executive deferred compensation plan. The liability represents the fair value of the participant shadow accounts, and the value is based on quoted market prices.

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Reportable Segment Information (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Reportable segment information
Total net sales and intersegment transfers	$ 2,450,284	$ 2,366,556
Segment profit	280,382	253,817
Interest expense	(12,351)	(16,394)
Administrative expenses and other	(74,790)	(71,346)
Income before income taxes	193,241	166,077
Paint Stores Group [Member]
Reportable segment information
Total net sales and intersegment transfers	1,461,505	1,360,003
Segment profit	176,576	146,265
Income before income taxes	176,576	146,265
Consumer Group [Member]
Reportable segment information
Total net sales and intersegment transfers	959,228	871,861
Segment profit	55,406	51,088
Income before income taxes	55,406	51,088
Global Finishes Group [Member]
Reportable segment information
Total net sales and intersegment transfers	471,330	499,052
Segment profit	38,900	46,477
Income before income taxes	38,900	46,477
Latin America Coatings Group [Member]
Reportable segment information
Total net sales and intersegment transfers	176,300	192,510
Segment profit	9,500	9,987
Income before income taxes	9,500	9,987
Administrative [Member]
Reportable segment information
Total net sales and intersegment transfers	(618,079)	(556,870)
Interest expense	(12,351)	(16,394)
Administrative expenses and other	(74,790)	(71,346)
Income before income taxes	(87,141)	(87,740)
Operating Segments [Member] | Paint Stores Group [Member]
Reportable segment information
Total net sales and intersegment transfers	1,461,505	1,360,003
Operating Segments [Member] | Consumer Group [Member]
Reportable segment information
Total net sales and intersegment transfers	351,690	325,299
Operating Segments [Member] | Global Finishes Group [Member]
Reportable segment information
Total net sales and intersegment transfers	469,556	497,639
Operating Segments [Member] | Latin America Coatings Group [Member]
Reportable segment information
Total net sales and intersegment transfers	166,231	182,388
Corporate, Non-Segment [Member] | Administrative [Member]
Reportable segment information
Total net sales and intersegment transfers	1,302	1,227
Intersegment Transfers [Member] | Consumer Group [Member]
Reportable segment information
Total net sales and intersegment transfers	607,538	546,562
Intersegment Transfers [Member] | Global Finishes Group [Member]
Reportable segment information
Total net sales and intersegment transfers	1,774	1,413
Intersegment Transfers [Member] | Latin America Coatings Group [Member]
Reportable segment information
Total net sales and intersegment transfers	10,069	10,122
Intersegment Eliminations [Member] | Administrative [Member]
Reportable segment information
Total net sales and intersegment transfers	$ (619,381)	$ (558,097)

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Income Taxes

3 Months Ended

Mar. 31, 2015

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

The effective tax rate was 32.0 percent for the first quarter of 2015 compared to 30.5 percent for the first quarter of 2014. The increase in the effective tax rate was primarily due to the reduction in tax benefits related to federal income tax credits as well as a decrease in miscellaneous discrete tax benefits reflected in the first quarter of 2015 compared to the first quarter of 2014.

At December 31, 2014, the Company had $31.6 million in unrecognized tax benefits, the recognition of which would have an effect of $28.2 million on the current provision for income taxes. Included in the balance of unrecognized tax benefits at December 31, 2014, was $4.4 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 of items related to federal audits of partnership investments, assessed state income tax audits, state settlement negotiations currently in progress and expiring statutes in federal, foreign and state jurisdictions.

The Company classifies all income tax related interest and penalties as income tax expense. At December 31, 2014, the Company had accrued $5.7 million for the potential payment of income tax interest and penalties.

There were no significant changes to any of the balances of unrecognized tax benefits at December 31, 2014 during the first three months of 2015.

The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction, and various state and foreign jurisdictions. The IRS commenced an examination of the Company's U.S. income tax returns for the 2010, 2011 and 2012 tax years in the fourth quarter of 2013. The audits are expected to be completed during 2015.

As of March 31, 2015, the Company is subject to non-U.S. income tax examinations for the tax years of 2007 through 2014. In addition, the Company is subject to state and local income tax examinations for the tax years 2004 through 2014.

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Health Care, Pension and Other Benefits

3 Months Ended

Mar. 31, 2015

Compensation and Retirement Disclosure [Abstract]

HEALTH CARE, PENSION AND OTHER BENEFITS

HEALTH CARE, PENSION AND OTHER BENEFITS

Shown below are the components of the Company’s net periodic benefit cost (credit) for domestic defined benefit pension plans, foreign defined benefit pension plans and postretirement benefits other than pensions:

(Thousands of dollars)	Domestic Defined Benefit Pension Plans						Foreign Defined Benefit Pension Plans						Postretirement Benefits Other than Pensions
	2015			2014			2015			2014			2015			2014
Three Months Ended March 31:
Net periodic benefit cost (credit):
Service cost	$	5,754		$	5,637		$	1,325		$	1,547		$	621		$	609
Interest cost	6,237			6,526			2,271			2,694			2,795			3,195
Expected return on assets	(13,024		)	(12,666		)	(2,431		)	(2,740		)
Amortization of:
Prior service cost (credit)	327			459									(1,132		)	(126		)
Actuarial loss	843						485			356			253
Net periodic benefit cost (credit)	$	137		$	(44	)	$	1,650		$	1,857		$	2,537		$	3,678

For further details on the Company’s health care, pension and other benefits, see Note 6 to the Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014.

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Impact of Recently Issued Accounting Pronouncements

3 Months Ended

Mar. 31, 2015

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

IMPACT OF RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

IMPACT OF RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

Effective January 1, 2015, the Company adopted Accounting Standards Update (ASU) No. 2014-01, "Accounting for Investments in Qualified Affordable Housing Projects," which allows companies to elect to use the proportional amortization method to account for investments in qualified affordable housing projects if certain conditions are met. Under the proportional amortization method, which replaces the effective yield method, the cost of the investment is amortized in proportion to the tax credits and other tax benefits received to income tax expense. The adoption of ASU No. 2014-01 did not have a material effect on the Company's results of operations, financial condition or liquidity.

In May 2014, the Financial Accounting Standards Board (FASB) issued ASU No. 2014-09, "Revenue Recognition - Revenue from Contracts with Customers," which is a comprehensive revenue recognition standard that will supersede nearly all existing revenue recognition guidance under U.S. GAAP. The standard is effective for interim and annual periods beginning after December 15, 2016, however, the FASB has proposed a one-year deferral. Either full retrospective adoption or modified retrospective adoption is permitted. The Company is in the process of evaluating the impact of the standard.

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Changes in Cumulative Other Comprehensive Loss (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015		Mar. 31, 2014
Changes in Net Other Comprehensive (Loss) Income [Roll Forward]
Beginning balance	$ (471,958)		$ (321,044)
Other comprehensive income (loss) before reclassifications	(56,908)	[1]	(8,690)	[2]
Amounts reclassified from other comprehensive income (loss)	561	[3]	487	[4]
Net other comprehensive (loss) income	(56,347)		(8,203)
Ending balance	(528,305)		(329,247)
Tax effect for unrealized net gains on available-for-sale securities before reclassifications	81		41
Tax effect for net actuarial losses and prior service costs recognized for employee benefit plans for amounts reclassified from other comprehensive loss	(206)		(207)
Tax effect for net actuarial losses and prior service costs recognized for employee benefit plans before reclassifications			244
Tax effect for realized gains on the sale of available-for-sale securities for amounts reclassified from other comprehensive loss	4		11
Foreign Currency Translation Adjustments [Member]
Changes in Net Other Comprehensive (Loss) Income [Roll Forward]
Beginning balance	(354,384)		(250,942)
Other comprehensive income (loss) before reclassifications	(56,776)	[1]	(8,055)	[2]
Amounts reclassified from other comprehensive income (loss)		[3]
Net other comprehensive (loss) income	(56,776)		(8,055)
Ending balance	(411,160)		(258,997)
Net Actuarial (Losses) Gains and Prior Service Costs Recognized for Employee Benefit Plans [Member]
Changes in Net Other Comprehensive (Loss) Income [Roll Forward]
Beginning balance	(118,167)		(70,611)
Other comprehensive income (loss) before reclassifications			(570)	[2]
Amounts reclassified from other comprehensive income (loss)	570	[3]	504	[4]
Net other comprehensive (loss) income	570		(66)
Ending balance	(117,597)		(70,677)
Unrealized Net Gains (Losses) on Available-for-Sale Securities [Member]
Changes in Net Other Comprehensive (Loss) Income [Roll Forward]
Beginning balance	593		509
Other comprehensive income (loss) before reclassifications	(132)	[1]	(65)	[2]
Amounts reclassified from other comprehensive income (loss)	(9)	[3]	(17)	[4]
Net other comprehensive (loss) income	(141)		(82)
Ending balance	$ 452		$ 427

[1] Net of taxes of $81 for unrealized net losses on available-for-sale securities.

[2] Net of taxes of $244 for net actuarial losses and prior service costs recognized for employee benefit plans and $41 for unrealized net losses on available-for-sale securities.

[3] Net of taxes of $(206) for net actuarial losses and prior service costs recognized for employee benefit plans and $4 for realized gains on the sale of available-for-sale securities.

[4] Net of taxes of $(207) for net actuarial losses and prior service costs recognized for employee benefit plans and $11 for realized gains on the sale of available-for-sale securities.

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Fair Value Measurements

3 Months Ended

Mar. 31, 2015

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS

The Fair Value Measurements and Disclosures Topic of the ASC applies to the Company’s financial and non-financial assets and liabilities. The guidance applies when other standards require or permit the fair value measurement of assets and liabilities. It does not expand the use of fair value measurements. The Company did not have any fair value measurements for its non-financial assets and liabilities during the first quarter. The following table presents the Company’s financial assets and liabilities that are measured at fair value on a recurring basis, categorized using the fair value hierarchy:

(Thousands of dollars)
			Quoted Prices
			in Active				Significant
	Fair Value at		Markets for		Significant Other		Unobservable
	March 31,		Identical Assets		Observable Inputs		Inputs
	2015		(Level 1)		(Level 2)		(Level 3)
Assets:
Deferred compensation plan asset (1)	$	24,027	$	1,132	$	22,895
Liabilities:
Deferred compensation plan liability (2)	$	34,012	$	34,012

⁽¹⁾  The deferred compensation plan asset consists of the investment funds maintained for the future payments under the Company’s executive deferred compensation plan, which is structured as a rabbi trust. 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 or broker models. The cost basis of the investment funds is $23,792.

⁽²⁾  The deferred compensation plan liability is the Company’s liability under its executive deferred compensation plan. The liability represents the fair value of the participant shadow accounts, and the value is based on quoted market prices.

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Other

3 Months Ended

Mar. 31, 2015

Other Income and Expenses [Abstract]

OTHER

OTHER

Other general income - net

Included in Other general income - net were the following:

(Thousands of dollars)	Three Months Ended March 31,
	2015			2014
Provisions for environmental matters - net	$	1,050		$	(434	)
Gain on disposition of assets	(2,723		)	(138		)
Total	$	(1,673	)	$	(572	)

Provisions for environmental matters - net represent site-specific 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. Environmental-related accruals are not recorded net of insurance proceeds in accordance with the Offsetting Subtopic of the Balance Sheet Topic of the ASC. See Note 8 for further details on the Company’s environmental-related activities.

The gain on disposition of assets represents net realized gains associated with the disposal of fixed assets previously used in the conduct of the primary business of the Company.

Other (income) expense - net

Included in Other (income) expense - net were the following:

(Thousands of dollars)	Three Months Ended March 31,
	2015			2014
Dividend and royalty income	$	(1,081	)	$	(1,051	)
Net expense from financing activities	2,967			2,922
Foreign currency transaction related losses	1,138			2,858
Other income	(5,497		)	(6,306		)
Other expense	2,228			2,080
Total	$	(245	)	$	503

The net expense from financing activities includes the net expense relating to the change in the Company’s financing fees.

Foreign currency transaction related losses represent net realized losses on U.S. dollar-denominated liabilities of foreign subsidiaries and net realized and unrealized losses from foreign currency option and forward contracts. There were no foreign currency option and forward contracts outstanding at March 31, 2015 and 2014.

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 other items within the other income or other expense caption that were individually significant.

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Basis of Presentation (Policies)

3 Months Ended

Mar. 31, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Accounting Policy

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information and the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included.

Inventory Policy

The Company primarily uses the last-in, first-out (LIFO) method of valuing inventory. An actual valuation of inventory under the LIFO method can be made only at the end of each year based on the inventory levels and costs at that time. Accordingly, interim LIFO calculations are based on management’s estimates of expected year-end inventory levels and costs are subject to the final year-end LIFO inventory valuation. In addition, interim inventory levels include management’s estimates of annual inventory losses due to shrinkage and other factors. The final year-end valuation of inventory is based on an annual physical inventory count performed during the fourth quarter. For further information on inventory valuations and other matters, refer to the consolidated financial statements and footnotes thereto included in the Company’s Form 10-K for the year ended December 31, 2014.

New Accounting Pronouncements Policy

Effective January 1, 2015, the Company adopted Accounting Standards Update (ASU) No. 2014-01, "Accounting for Investments in Qualified Affordable Housing Projects," which allows companies to elect to use the proportional amortization method to account for investments in qualified affordable housing projects if certain conditions are met. Under the proportional amortization method, which replaces the effective yield method, the cost of the investment is amortized in proportion to the tax credits and other tax benefits received to income tax expense. The adoption of ASU No. 2014-01 did not have a material effect on the Company's results of operations, financial condition or liquidity.

In May 2014, the Financial Accounting Standards Board (FASB) issued ASU No. 2014-09, "Revenue Recognition - Revenue from Contracts with Customers," which is a comprehensive revenue recognition standard that will supersede nearly all existing revenue recognition guidance under U.S. GAAP. The standard is effective for interim and annual periods beginning after December 15, 2016, however, the FASB has proposed a one-year deferral. Either full retrospective adoption or modified retrospective adoption is permitted. The Company is in the process of evaluating the impact of the standard.

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Debt

3 Months Ended

Mar. 31, 2015

Debt Disclosure [Abstract]

DEBT

DEBT

The table below summarizes the carrying amount and fair value of the Company’s publicly traded debt and non-publicly traded debt in accordance with the Fair Value Measurements and Disclosures Topic of the ASC. The fair values of the Company’s publicly traded debt are based on quoted market prices. The fair values of the Company’s non-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.

(Thousands of dollars)	March 31, 2015				March 31, 2014
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Publicly traded debt	$	1,120,982	$	1,165,804	$	1,620,714	$	1,629,928
Non-traded debt	4,902		4,655		3,905		3,683

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Document and Entity Information	3 Months Ended
	Mar. 31, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	SHERWIN WILLIAMS CO
Entity Central Index Key	0000089800
Document Type	10-Q
Document Period End Date	Mar. 31, 2015
Amendment Flag	false
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding	93,186,295

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Non-Traded Investments

3 Months Ended

Mar. 31, 2015

Non-Traded Investments [Abstract]

NON-TRADED INVESTMENTS

NON-TRADED INVESTMENTS

The Company has invested in the U.S. affordable housing and historic renovation real estate markets. These non-traded investments 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 No. 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 No. 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 amount of the affordable housing and historic renovation investments, included in Other assets, was $223.8 million and $237.7 million at March 31, 2015 and 2014, respectively. The liability for estimated future capital contributions to the investments was $196.8 million and $213.0 million at March 31, 2015 and 2014, respectively.