SHERWIN WILLIAMS COSHW
SHERWIN WILLIAMS CO Goodwill & Intangibles Disclosure
GOODWILL AND INTANGIBLE ASSETS
In 2025, the Company completed three acquisitions, which resulted in the recognition of Goodwill of $307.0 million and Intangible assets of $642.9 million. The acquisition of Suvinil accounted for $247.8 million and $608.7 million of the total Goodwill and Intangible assets recognized, respectively. Of the total intangibles acquired, $342.8 million were finite-lived intangibles and $300.1 million were indefinite-lived intangibles. The acquired finite-lived intangibles are being amortized over a weighted-average useful life of approximately 19 years.
In 2024, the Company completed the acquisition of a metal packaging coatings business, which resulted in the recognition of Goodwill of $20.9 million and finite-lived intangibles of $27.9 million. The acquired finite-lived intangibles are being amortized over a weighted-average useful life of approximately 15 years.
In 2023, the Company completed the acquisition of SIC Holding, which resulted in the recognition of Goodwill of $181.3 million and finite-lived intangibles of $110.8 million. The acquired finite-lived intangibles are being amortized over a weighted-average useful life of approximately 15 years.
See Note 3 for further information related to the acquisitions and divestitures.
In accordance with the Goodwill and Other Intangibles Topic of the ASC, goodwill at the reporting unit level and indefinite-lived intangible assets are tested for impairment annually. In addition, interim impairment tests are performed whenever required as a result of a specific event or circumstances which indicate potential impairment on a more likely than not basis. October 1 has been established for the annual impairment review. An optional qualitative assessment may alleviate the need to perform quantitative goodwill and indefinite-lived intangible asset impairment tests when there is no indication of impairment on a more likely than not basis. Should a quantitative impairment test be performed, values are estimated separately for goodwill and indefinite-lived intangible assets using applicable valuation models, incorporating discount rates commensurate with the risks involved for each group of assets.
As a result of a nonsignificant high-performance flooring business being realigned to the Paint Stores Group from the Performance Coatings Group effective January 1, 2025, the Company performed a quantitative impairment analysis for the impacted reporting units and determined both before and after the change, there was no indication of impairment. The annual impairment review performed as of October 1, 2025 resulted in no goodwill impairment and trademark impairment of $17.8 million in the Performance Coatings Group, related to restructuring activities which impacted certain trademarks in the Asia, Latin America and Europe regions.
The annual impairment review performed as of October 1, 2024 did not result in any goodwill or trademark impairment.
As a result of the Latin America architectural paint business being realigned to the Consumer Brands Group from the Paint Stores Group effective January 1, 2023, the Company performed a quantitative impairment analysis for the impacted reporting units and determined both before and after the change, there was no indication of impairment. The annual impairment review performed as of October 1, 2023 resulted in no goodwill impairment and trademark impairment of $23.9 million in the Consumer Brands Group primarily related to a trademark in Europe region.
A summary of changes in the Company’s carrying value of Goodwill by Reportable Segment is as follows:
Goodwill (1) | Paint Stores Group | Consumer Brands Group | Performance Coatings Group | Consolidated Totals | ||||||||||||||||||||||
Balance at January 1, 2023 | $ | 2,231.8 | $ | 1,801.9 | $ | 3,549.5 | $ | 7,583.2 | ||||||||||||||||||
Reclassification related to segment change (2) | 144.3 | (144.3) | — | |||||||||||||||||||||||
| Acquisitions and acquisition adjustments | 8.3 | 8.3 | ||||||||||||||||||||||||
| Currency and other adjustments | (9.1) | 43.6 | 34.5 | |||||||||||||||||||||||
Balance at December 31, 2023 | 2,376.1 | 1,792.8 | 3,457.1 | 7,626.0 | ||||||||||||||||||||||
| Acquisitions and acquisition adjustments | 48.2 | 48.2 | ||||||||||||||||||||||||
| Currency and other adjustments | (0.3) | (93.8) | (94.1) | |||||||||||||||||||||||
Balance at December 31, 2024 | 2,376.1 | 1,792.5 | 3,411.5 | 7,580.1 | ||||||||||||||||||||||
| Acquisitions and acquisition adjustments | 31.6 | 247.8 | 27.4 | 306.8 | ||||||||||||||||||||||
| Currency and other adjustments | 0.1 | (7.5) | 157.1 | 149.7 | ||||||||||||||||||||||
Balance at December 31, 2025 | $ | 2,407.8 | $ | 2,032.8 | $ | 3,596.0 | $ | 8,036.6 | ||||||||||||||||||
(1) Goodwill by reportable segment is presented net of accumulated impairment losses of $19.4 million ($10.2 million in Paint Stores Group, $8.4 million in Consumer Brands Group and $0.8 million in Performance Coatings Group) as of December 31, 2025, 2024 and 2023.
(2) Effective January 1, 2025, the Company realigned a nonsignificant high-performance flooring business to the Paint Stores Group from the Performance Coatings Group. The Goodwill balance attributable to this business has been retrospectively adjusted to reflect this change.
A summary of the Company’s carrying value of Intangible assets is as follows:
| Finite-Lived Intangible Assets | Trademarks With Indefinite Lives (1) | Total Intangible Assets | ||||||||||||||||||||||||||||||||||||||||||
| Software | Customer Relationships | Intellectual Property | All Other | Subtotal | ||||||||||||||||||||||||||||||||||||||||
| December 31, 2025 | ||||||||||||||||||||||||||||||||||||||||||||
| Gross | $ | 231.1 | $ | 3,654.9 | $ | 2,002.3 | $ | 229.3 | $ | 6,117.6 | ||||||||||||||||||||||||||||||||||
| Accumulated amortization | (164.2) | (1,766.2) | (853.2) | (161.8) | (2,945.4) | |||||||||||||||||||||||||||||||||||||||
| Net value | $ | 66.9 | $ | 1,888.7 | $ | 1,149.1 | $ | 67.5 | $ | 3,172.2 | $ | 793.9 | $ | 3,966.1 | ||||||||||||||||||||||||||||||
| December 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||
| Gross | $ | 185.0 | $ | 3,187.8 | $ | 1,973.0 | $ | 225.8 | $ | 5,571.6 | ||||||||||||||||||||||||||||||||||
| Accumulated amortization | (154.3) | (1,489.6) | (747.7) | (154.7) | (2,546.3) | |||||||||||||||||||||||||||||||||||||||
| Net value | $ | 30.7 | $ | 1,698.2 | $ | 1,225.3 | $ | 71.1 | $ | 3,025.3 | $ | 507.9 | $ | 3,533.2 | ||||||||||||||||||||||||||||||
| December 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||
| Gross | $ | 158.2 | $ | 3,263.4 | $ | 1,968.5 | $ | 232.6 | $ | 5,622.7 | ||||||||||||||||||||||||||||||||||
| Accumulated amortization | (152.8) | (1,310.6) | (644.4) | (152.9) | (2,260.7) | |||||||||||||||||||||||||||||||||||||||
| Net value | $ | 5.4 | $ | 1,952.8 | $ | 1,324.1 | $ | 79.7 | $ | 3,362.0 | $ | 518.5 | $ | 3,880.5 | ||||||||||||||||||||||||||||||
(1) Trademarks are net of of $181.6 million as of December 31, 2025 and $163.8 million as of December 31, 2024 and 2023.
Amortization of finite-lived intangible assets is estimated as follows for the next five years: $345.3 million in 2026, $340.3 million in 2027, $337.3 million in 2028, $335.7 million in 2029 and $334.7 million in 2030.
Although the Company believes its estimates of fair value related to reporting units and indefinite-lived intangible assets are reasonable, actual financial results could differ from these estimates due to the inherent uncertainty involved in making such estimates. Changes in assumptions concerning future financial results or other underlying assumptions could have a significant impact and future impairment charges may be required.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 19, 2026 | Showing above |
| 2024 | Feb 20, 2025 | |
| 2023 | Feb 20, 2024 | |
| 2022 | Feb 22, 2023 | |
| 2021 | Feb 17, 2022 | |
| 2020 | Feb 19, 2021 | |
| 2019 | Feb 21, 2020 | |
| 2018 | Feb 22, 2019 | |
| 2017 | Feb 23, 2018 | |
| 2016 | Feb 22, 2017 | |
| 2015 | Feb 24, 2016 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.