Document NE2o2NMQnK9QJb8XRVyY1jM2V

The Sherwin-Williams Company 1971 Report to Shareholders 0007-SWP-035029 TABLE Or CONTENTS Financial Highbghta.. . ......... I Lanar 10 Sbaiaholdan. ................. 2 Tha Ytar m Review.............................. 5 Coatings Group................................... g Chemical! Group......................... I Auulianaa Group................................. V Spiayon Products. Inc.......................... 10 Intaoiaitonal Opatauona......................... tl Purchaamg.............................................. 12 Ptwonnel.................................................|j Financial Kama*................................... 14 Financial Sacnon...................................... IS Canadian Subaidianr Financial Sunmaap. 24 Sulwrtianaa and Licanwaa......................... 27 Products and Planca................................... 2> Dnacton and Oflkan.....lnaida Bash Cover Annual Meeting Tha annual meeting of ShanMdaa wiB bn hairt aa I0:W A.M.. Oanamtar IS. l*Tt,aa tha Sfcamoa Clavalaad Hotel, FukHa Sgaaia, Cleveland. OMo. TRANSFER AGENTS The CMoul Than Campaap Oroiiiaa. OWe aakara Tnm Campaap New Yertu New Tack REGISTRARS TRUSTEES flatnmwa 0aa Ml a m CmmttHt til h dlan id CmmIMh mmI iMk^OMliii arrtana.OMa Qm IMt 0007--SWP-035030 _ 0007-SWP-000116450 Financial Highlights Net lib*............................................................................................... Income before income taxai and extraordinary credit.......................... Income taxaa--United Suiee tad formea............................................ Income befrne extraordinary credit...................... .......................... Extraordinaey credit--ret |eia rauiltiaf from ike tele of tecurititf ot Barter, lemon A Nidwlion Lientad leee applicable income tame. . Net income........................................................................................... Cub dividaode declared: Common................................................ Ik Common Share: Income before Ktreordbrnipcredit. . . emblem........... .................... Dividend paid..................................... WorUagcapial ........................................ Ratio ofcwmnt amett to cunent HahilMee. Capital eependiterm................................. Provitiom for depmeiation...................... Aagu 31 1971 UM.d92.4l] It.HS.444 : IJ.7HMB* 1 15.lTJ.40b . 19*0 U2S.7V7.767 29,029,995 14.417,H2 I4.J42.9I] -oIS.I7S.4M 5)4.412 13.077,J9J 1.109,Ml I0.6J1.2S9 1,109,51) 10.6S6.71S 2.SS 1 US ' S.IT 2.00 1 1H.S94.6M 4.4]tnl 12,172,1]] ll.*0.0M , 2.S2 162 4.69 100 II4J09J62 4.2] ml 15.4!3,604 I0.MS.666 0007-SWF-03 5031 1 0007-SWP-000116451 I Letter To Shareholders Fiscal IfTt refected real progress ia the major coeiinp segment ofoar businem bw brought problems and disappointments in chemicals and couiainen. Total talas for the year increased to u all-time high of SSM.tn.dl3 from JJ2J.TI7.7&7 last yew. a 3J% pia. Na carniap for the year wan SlS.l7S.40t, or JIM per common share, compand to SI4.M19I J. r $131 par Man tacludiag a 104 par stare siiraordinwy credit Ian year. Our tales pattern pereileted to t peat depea pocrel economic conditions during the year. Tha tnt half was disappointing, but as the aconoaty bapa its slow upward climb during oar third quarter, sain showed renewed strength, reachini a new record for the fourth quemr. Results tor tha Anal quartar wan: sake. 1170277,199 *cnu SI5.7MJ47lMtyear.a 7.3%pin:miccminp. ST.ioajM, or Sl.az per share compand to S9JQI.23I. or 31.49 par share a year ago. Tha Coadap Croup, whom salas npresamad 79.9% of total eonsolidaiad sutaa, tqioyad a raeard par ia badl salat and uormags. Tha peifomsace ns very much better than that ofdm aorpandnu aa a wholn Pntaa eanunp ofthis poup wanup 11.9%, (isiaf to S23j9t)39 in I97| from 1I9.94SJ09 ia 1970b ou a 9.1 % lain gain. Rotas! and nitmtaaian snip through oar bnaah stana cad aatosaedua redahi sain through our autamotivo sarviea cratan aad ausomedva jabban wan tha react important ftaart in thaCoatiap Group's salm perfonaaBH. Industrial sulci wen slow dariag tht year, hut thaw wu a aoticaabla upon ia ihu fowth quarter. With detotta sigoa of intpiovimen ia iadastrial activity, aad because of no* larp industrial eaMmtn, we leak fotwatd to comianad growth ia tscul 1971 ia our eoadap bittiness. 2 In lint with our loitgranp plana, we an devoting more of our ratomcm--manpower, money and luue--to the many opportunities that taist m tha imrkitiag phase of our eoadap busin*sa. 9raad eoverep oftht market, supported by our meal inuosive advertising aad menhaadWag program. should provide aa alftctive spriaghoard for future puss. Osemieale Group tiles resnprised *,*'/, of lotal tonsolidutW salrn. Although saiea this year win only 2-4% under last year, the group continued to bo plagued with depressed price* aad increasing cost pressures. As a eoMtqutnca. pretaa resaits for iha yew showed a lose of $4,Mi.173 versus a lose of 32.2J9.0J7 ia 197a W cut pwt improvement m ehenuwl sales and eanunp only aa (ha general economy improves and companies in ihoehficti industry mow to strengthen themiehn to compen more eghediulf splast discmined foreign producer*. Thu eharenuristies of thtchemuat businne-us pertteularthe wiarive capital requirements rad tht volatility of tha bnlawa-tn such thatthis segment, even were than others, mast be under commas review. Wb have shut dew* o m and an ia praewa ofshutdag dewa a second rhemiaal apndau. both ofwhich an no teagtr proUtabie. Two athar operadeM an btta| convwtad to product* that give promise of protabshty. la Uie nent (bw moetbe wo will darenain wtwsiwr any odmr operations held iaiufldeat expectations of tadsfhesory prolitt to justify rnesiauiag tham. AuasUsrin Group sals* sscouimti for 9.2% oftotal coaaoUdasad tain. OnpM a sain gaia of 3J % owr Ian ynr, pnMi wan daam. TNa wag dtw to a MtahmadM of mrt-up sad ssrihagsawd costs afhctlag the rnatsiaer divisiaa. sod dta gwnal tartans ia demand fn datable goods which advanaiy afessd parfenaaaea of tha Oshon MaauftcnitlngCo. tubddiarf. Canmp gains hyothorsloamts of thh group wen imuftaaas 0007-SNP-035032 0007-SWP-000116452 Praa4m SemoriMti am Chunun aamie illiamm vinawpMm of the More Than pauu Stan" aeveraaegmienhaaeaMiopremim. to offset Am drum totally, resulting in a pretax prolh Ter the group ofS7.0TS.62l thia yaar venue S9.IK046 last yaw. However, we romaa improvement in both corns and salat and antkipaa that profit* will recover in the coming yaar. Our Spnyoa Products subsidiary had a racord salat yaw. and it u necessary to axpand tha production capacity of tha Anaheim. California, plant. Frata* aarmnia were Sl.429.264 compand to SI.iM.907 in 1970. With aerosol packaging growing for many products, we axpacl Steal 1972 to bt anothar bannor year. Although toll small. imamatianal Opanuiont continuad 10 grew in important*. Praia* tamings rota to Si.170.400 from SI, 176,791 last yaw. Wo an plating a gnat daai men amphasts on dwmtopmg mot* prodts. particularly ovar (ha loagarttrm. (torn this sector of oar butman. To implement th* restructuring of various segments of our buuness to a group concapt ofotgomiatloo. an oAcar designation of Croup Vico President ail estsblilhed, Tho following otOetrs warn slictad to ntar posts: Richard C. Bull. Graup Vic* Piasidont Coatings; William Moonan. Group Vico Pntidani AmuHariat; and Goorga F. Schtaudeckar, Graup Viea Pieildeat-CIwmicals At tha otgan'lndonal meeting of thn Board of Dtrectoes hsld immediauiy followiag tha Annual Sheieholdat* Masting in Docombor. 1*70. John N. Bauman submitted his resignation in kaapiag with mtahlMnd policy centring wttnmont at ago 7ft Ho hod maud iBhafrsly torn period ofaight yaws, and th* board is gnttfttl foa hi* rola in halpiag to guida tha company. Cana C. Btawar, prtsidam ofSouthwest Fonat Industries, was nomad to (U> tho recency that emotad After *1 yaws of service. Anhui I. Hokoo ratiradas Visa President and Technical Aovfcnr to dm PrtwdmM. Me. Holton's contributions to tha company and tha industry wart many and varied. To him we axprtis our warm appreciation. Two new positions ctaatad during tha yaw warn that of Diiaccw of Corporal* Development and Director of Environmental Control Tha former ennompassM an planning funcuona with particular emphasis on redoing our Iougrange pianaing activities. It tt already appnrtnt that this moaa will greatly enhance our ability to plan and control (burn growth of sals* and prota. Tha latter position is dwgnad to implement our Arm corporate commitment to have tha bast possible wotting environ* man within our plants and oIdeas and not to despoil the snvironmant around us. Wa are pleased with tha program made by tha Coatings Group dunag th# yaw. parueulariy in light of tha ganaml economic climate that prevailed. While die results m certain other arses of our huuatu were disappointing, wo iroccnddent the raps that have bean and are being taken will protnda t bum forimprovement in dune arras. We havaclaarty daflnad the problems and are vigoroualy attacking them. If the economic recovery continues at na preset! pace, nest yaw's nsufcs should meted thorn posted In 1971. On behalf of the Directors, we ihenk all of our employees for thaw efforts nod cooperation during tha year. T e^www Ctstmmi tf tit 8*rd f/i /{/ PwtiM 0007-SWP-038033 0007-SWP-000116453 0Q07-SWP-035034 0007-SWP-000116454 The Year in Review MORE THAN A MINT STORf--Him mw advntic mf-mtfctwdiiim tbeme come alive to Shewa-William* branch itm At (ha photo at loft than illuuntaa. cuitomis ham a wido chotot of patou u mart avety ptiatias iwad. Thajr aba find IwtpM cotar latocuoa aid*, amhomadra adriaa aw hoar to patot, plai a mi BomptomtM ot painting loot*. At befta piHK ttora that It"Mere Thai a Mm Stan.'* many othar dfconung eetopaaaan ara available ia (hara bright. madam thopa. At indkatad to the photo at Mb balow. waHpapar. earpetmg, drapery maiatui*. eveo lamp* andT unfinished furniture may ba selected to a relaxed and comfaitabla atmosphere. At pointed out in the Letter to Shareholders, important changes were made in our organiza tion during the year. The various parts of our business have been restructured into groups and each placed under the direction ot* a. group vice president. Heretofore, responsibility for research, production, distribution, marketing and accounting had been divided along functional tines. Now all these responsibilities are divisionalized in accordance with the business interests of each segment of the corporation. This change speeds decision making, provides mote affective communication and insures faster action in relation to market changes. The restructuring is reflected ia the reports from the group vice presidents that follow. All comparisons to last year have been made after reworking last year's figures to conform with the new concept of organization. To round out the reports from each of the group vice presidents, we have included review* from other executives in which their particular areas of responsibility are covered. We believe their comments and observation* will give you a more complete view of th operations of your company. Individually, the reports focus on the various parti of our business; collectively, they reflect the strengths with which your company faces the future. Wo are confident w will success* fully meet the chaUengre and opportunities that surely lie ahead. 0007-SWP-035035 0007-SWP-000116455 Th* Coating* Group "Vigorous sdvcrtising and merchandisiai effort*. coupled with a continuing cow redueuon program... poiat toward highly *au*factory main in our coding* sale* usd proAct." RMmdG.BuB Grow* v NihM Cotmigi The Coiling* Group isresponsible for the production, marketing and distribution of paint*. varnishes. lacquer* and allied maienal* supplied to retail cusromerv dealert, painting contractor!, industrial mamtenanee customers, architect*, automotive rtltniihen and uten of factory* applied (bushes. The group alio markets painting toots, wallpaper, door caterings, dr*pent*, decoralive occastoties. unpointed furniture and related items. Sales gams were made in all sections of the group. Again the branch organisation contributed the largest than of our results. Branch wore tales set new highs. At year's end. we were operating t*T branch turn in the United States. During the tear II ntw ones wr* opened.while W were closed. ?Jwer relocated and 23 wen remodeled and expanded. Even though we hod fewer branch stem in operation at year's end. the total tquaro footage of the worts was greater thea a fear agw These changes an ta keeping with our planned program to prpv ide mom complete write* aad keep pace with changing market conditions brought about by popuUnoo >hift* and changing retail buying habits. We moved into Id additional limed departments. due#? m mass merchandising outlets, dunng the year. However, the total number efiuch deportment* wt now opmato declined to 279 from JIO a year ago. This redacts the continuation of programs established tom* nme ago by tome retail chains under which they eventually take over operattou of these department* themtelves. However.' these departments continue to sad products which we manufacture. Sales to dealers hcM up well. As mpcctad. deeler-ewned buying organizations and multiptonni* retailing concerns were our best dealer customers wuh th* imaUar independent outlets accounting for a shrinking proportion of vales. Sales to painting contractors and to industrial maintenance customers began to show improvement during the second quarter of th* year and have continued that pattern. The former were spurred by the increase m housing >un. Not only did this affect tales for new construction, but slso ndeconiiofi and home improvement. Increased ttnphaiit on maintenance by industry helped vales of industrial maintenance products. These <uit were olsoabettedby ouretpuded colorsty ling sen ice to indu-uv which assisu industrial management in making effective functional use ofcolor. We also enjoyed an encouraging gam mi sales through architects. This earn* largely aa a result of our sustained effort in this market dating the law few years. The Beau Monde* color synem. introduced: at midyear. i> Hnding excellent acceptance among architects os a further ard in color end Arndt selection. Automotive rednidi sales by Sherwm.Williams and th* Martm-Senour. Acme and Rogers divisions continued to expand as they have for tom* years. Thu is a iteadily growing market on which we am placing considerable wnphata. Daring the ynr. Itv* new aatomeuve service centers were wtabHtbnd. railing to 41 the total of >uch ipeciahnd centers serving the many facuts of this market. For much of the year, sales of industnall dmshes suffered from the slowdown in induitnal activity. However, voles vtarted to move upward in the middle of the third quarter and continued to show renewed strength. Finishes tor the building industry wet* consider*Me factor in the vales turn-around. Coil codings for metal udmf. roof decking and othar boildiiig components coturtbumd wrongly. a> did matenaii for factory Anithing of wood component*. The vurvup of several mayor etoettodepotituM Into by customers also led to increased tales. s 0007-SWP-035036 0007-SWP-000116456 Operating cow in th* group's 12 planti continued to improve dvsnng the year. Heavy emphasis n bang put on inventory management to keep stocks m balance wuh demand. The efficiency of th management system was evidenesd by otir ability to radon imwiioms wbilo maintaining a high level ofwnna to customers during tlw ynr. The system also eiimmat** dosing plana for inventory parpom tinea ukinp of finished peed* inventories now done cyclkeUy throughout the year. tarty In the Steal year era doted thoW. W. Law-tea plant at Pittsburgh. Thia erasdooo when tt beeanw evident that othtr plums could mors edlmntty produce equivalent output. We am discontinuing varnish and lacquer production u Dayton fat the tamo teuton. ' Environmental quality control continusi to hold a hiph priority in our operation*. At Oakland. California. *e are pionetnnp a new approach to control of vapor* from the varnish plant. Thi* involvoa the uao of low tampan> turn condensen which am eapocod to tolvt tree--some odor problem, eliminate hydrocarhoo emotions and recover what hid been discharged lam the atmoipheee. Typical of other current activities ia environmental control am: chaapaa tat vaeWb produednn meihodan Gibbsboro. Now Jonay. to riiuiinoa* air pollutiM: tntullatton of wuna water train--at frrtHilas at Morrow. Georgia. and Loa Angria* so affeaM standard* can be met: andconsetucdoo of a uttllpp tank at the Newarh plant to (iimiiime discharge of obpctioiiaM* material* into th* mnnieipel lewipe ryitam A number of othee pro--ts at venous piaats are ah* uaderwey, and tiiU other* are m thernguteesing stag*, We have made substantial propraa ia the flirther develop, ment of practical powder coatings. Thee* coatingt at* paint in a solid rather than a liquid form. The ponder tt applied to an object, Dually by electrostatic tpray. me object is then subjected to hut. and the powder is converted imo e cutod. continuous film. Thu method of applyin* a cootinp hat many advantages. not the least of which it th* fret that it permits highly efficient us* of canunp material* with pollwioit problems lately, if not wholly, etimmaied. Plans for eommamal production of powder cottinpt am now naarmp Completion. Wstar-disptned coteinpa that include sediment or diu pcrsioni of resin* in water haro now bum developed. Such coauap* h*ve many of ihe charactrrtticr of laics emulsion paints. For industrial applications, they provide hard, durable finishes baaed on tuch ratins u aikyds and polyesters with all th* idnaapi of wiier-based systems. Among other raseorah end development projects brought to commercial usefulness are: hiph enerpy curmp fillers and deer finishes for plywood end herdiiioeid: urethane foam miMfieis with a hiph potential for ippficauoo in th* furniture. building component end other held*: and hiph ham luustam polyester compositions for tlectncal laminatm end other eioctriett end uses. W* am working toward the virtual elimination of lead from all ratidantial paint*. Is amicipubon of retulauont restricting ihe lend content of such products, we have established new fonnuiat that will rnaMi us to men the proposed requirementt by me end of this calender veer. We have a(M diaunaied mercurial compounds both u a boctoriddo and as a mildewed* in all of our coatings. Fiscal 1072 appears to be a promrsinf ysar for growth in our coatings tale* **d profits- Vigorous tdvertismg and marahaadialag efforts. coupted srith a continuing cost teducrion profram and the ttpetted improvamem m the economy, pone toward highly sausfhctony result*. 0007-SWP-035037 y 0007-SWP-000116457 1 "TBl undock l$riht< iapnniriagMua look ban AitmAa mw products m pa into piojiMioit tkijr c m bt cmn to bclrtsr both take aai'enmiup." n I Products of the Chemicals Croop include pigmena, organic and inorganic chemicals. chemical imarmediatat. teaok chemicals, consumer spatially cbanucal products and contract custom chemicals. Then products aaa sold to a wide variety of induMnea. for soma tine now, tha ctemkal industry gaaanlly haa boon sufibring from lack of talaa volume, daptassad price* and ineraaimg coats. All of then conditions owe redacted in ilia parfonnaaaa of tha Chamicais Croup during iWt. Saks declined from the year before tad aa operating lorn wu sustained. Shortfrlk in antidpntad tain rtvonM stammad from a numbar of cueumstoneaa. Tha deprassad state ofaha graphic arts indusuy leriomiy afbnk organic pigment sales. Price erosion in commodity chemicals, largely the result of intensified foreign competition, alee contributed to lower sake revenue. Increased utut costs non dun in part to tha fret that several pleats operated at a rata dgidkantly uadat capacity because of declining sales and industry oveeu capacity. Concurrently, increased labor coats, rising priest of raw mnanek and purchased Servian and iaeraeaad expenditures nkang to poUunoa coanob aba contnbutsd to higher costa. With an eye to improving prodtahility. certain marginal operations haye beM rioted down, fhchaiie sahydride production at Chicago and the korgaak agricultural chemicals aparatlont at gonad Brook. New iersey. wen ditcontinuad during the year, trhwtiilad phasing out af linseed oil producrion at Clmknd one began and k to be ramplamd within n fcw mamba Bscaum of tha virtual dimlaadoo ofland from paiaa fonnuktiooe. the naatdbnufo oftraded rice oidda k being pbamd oat at tha Coffbynlln. Kaataa, plant. Theta facslitka an bahtg coavertad to a new ptoesas for thra oxide manufacture which will gnstiy menace our capacity and also improve aur product quality, thastby tnabiing us to serve new markets. Plant an being developed to change the phthalk anhydride plant over production of isophihsknnnk. an mttnaediate for tgncuUural and poiymarahMiicala. Concurrently, we an evahiating a numbso of InorgNue chamiaak that mm bo profitably productid in soma ofour other aaitting (ballikc. Thu mligHranni of ntraieh tahontonra begun last year was eompkted thin year, aad the numbel reduced from four to three, each specifically orieatad to broader areas ofintatmi. The realignment will inertese the efficiency oftotal laboratory effort. Several nape wen uken during Urn year toward develop ing mors profitabk means of marketing (iiacsoimi products. la lino with the corporals objective ofserving more directly the ultimata users ofour products, s taxtik chemicals division was enebtishad to provide more induwve service to the tftxnk industry which we have loog icnod with our Shctdya color Him Similarly, we have enlarged the scope ofour consumer specialty products effort to iaduda act only die Acme line of gaidcu rhemirals. bos ah# lines of swimming pool chamkak, boadag chemicals and other raeisuioaal and household prodaca of intereM to consumers. A Metak Protaction Ventura, cowaataed with marketing chamkak thra contribute to corrosion rcnmaca of various metak. wot orgamrad. Wo sm this ac a pioaasiog taka chaaaii fbr triatek aad several haw ehemicsk. addltioeelly. wt ere developing pigment (oncemwas for direct use is tha plastic* field. EJKMI to make afi af oar plsaa pollution-free art coatinaiiig. Cunaady, equipment to control odorous ttniaioat it being inttalkd at da prpate rhamcalt plana is Chkaga. aad a wants water quality imptavamaat pratjeat k bang eraned through at Athabuk. The outlook fiat tha Chamkak Cnap is pranking is wt took ian tha Atnira As spewing la thogmni economy is certain to be tefiected In chemicalsake, rodc o m reduction effora made thk yeat should begk to havwfawmbk effect in tba asm tana. As saw produca are put into production, theyc m boeapecad to bekar both sakeand earainga. 0007-SWP-035038 0007-SWP-000116458 ?-7 r' , "Prapacte to th* AnxiHarien Group an highly Mwaa^tag: Than appear to ha no obstadea ia tho wny of further prowth." Cna Vie* PnMeat Auaihenai Included in the Auatliane* Croup are th# Conlainur. Deshkr Products and Printing divisions. and iha Osborn Manufacturing Co.. Rubbers* Co. and Rubbers*! Co. i Canadas. Lid. Although talas of tho group rota. isreings war* undar Ian year. Tht dip in earning* it directly annbutabla to three factors: a IJ-waan unk* at th# Saa Leandro, California, container plain which mad* it naaasury to iuppty many customers from otter piants as constdrwbiy incraasad cost: eontrauad higteMhamaxpacud coast m bringing th n*w Elgin columnar lima into full production; and lower salat of Osborn Manufacturing Co. brought about by the general downturn in th* matal working industry. Container division salat volume rose and aocountad for 55.9*, of total group salat. However, tenungs daciinad in he face of ruing caste. A large portion of th* sale* increase was duo to considarabt* growth m demand far aerosol contaiaan and improved salat of cootainan for paint and charcoal lighter fluid. At naiad. Osborn Manufacturing sal** daciinad. aceoantmg for JO*; of group sate*. The oparnting aarmageof this subttdiary wan under those ofa year ago. However, th* projected incraas* m sates ofindustrial pow*r4ri**n brushat and grinding wheals, glut a substantial borklcg of machinery order*, indicate an iigwotawat ia fiscal 1972. In Cemuny. although th* Sdunta * Ludwig subsidiary ofOtberu achtemd n salua increase. tho operation incurred a lota duo to probtenu mvoivad ia itarMig ofa new giant and tho inmductMO of now technology tea mw mnrktt, Th* Rubbers* Co. had an inrtaasa in bosh sales and tamings over th* previous yam's teste. Its talas corngriaad of group sates. A naw French license*. flhodianeti, S. K. began producing nylon btuthaa during th* yarn. Rubbers*! Co. (Canada), Ltd., alto snjoynd intproved sates and Mnungs vm 1*70 with of total impute*. Th* printing division product* lebete. sutionary aad advenssing-tnttctendisiag sates aids far all domestic tad international wgmancs of th* company. Typical of ik* divtsion's production during th* year ware 25 million color cards, 61 million Ubste. *00.000 earnings and a variety of sates promotion materials. Th* Oashter Products division had th* most productive year in os Niitaey. Pncncnity ill of its production *tt supplied to tte Coatings Group and to the Rubbers* Co. Mint an now being made to mark* more of tte division's output to outsMte customers. Th* Auxiliaries Group mad* major plant invastmants oaty at th* Elgas. Illinois, conuinar plant. There; tt.IS2.000 was invattad in two naw maul lithographing lias*, a gritoa oblong conuinar production lint, a quart oblong container production tine and an additional aerosol container production linn. Another aerosol eomaiaer tine it seheduted for 1972. Two pollution control projects an now underway at the group's pteou. One involves the installation of after* burners on ovate at th* Chicago ecntamw lithographing faculties. Tham incinenton am to dntwaed that product* of combustion fom tte evens wtflte convened to carbon disxidn aad smut, solving an odor pollution problem. At Osborn's bruh pteat ia Henderson, Kentucky, a watu water dhrenioa protect ia underway to riimmate th* possibiity of polluting strsumia that ana. A new wood waste disposal syatcat ia now bang enQineered for th* Henderson location. This will siimsnatt sir-born* sawdust and burn eil wood waitet to supply hast for the kiln dryer*. Prospect* for tho Anaiiiamt Group an highly encourag ing. Although iha Mwcoanimr Unas at Elgin an not yet operating at satiafototy capacity, wa aspect to tan slow, bur steady, improvement- With these added facilities, conation production still iocnmn to enable us tuenpw utin non ftitty on expanding sites opponiiaitics. At sand aariter. in view ofOsborn's current order backlog. w expeacits sate* to improvn luOsiaamUy. There appear to be no obsteciei in th* my offarther growth for th* ocher segments of th* group. 0007-SWP-035039 0007-SWP-000116459 A highly spseiaiirsd subsidiary. Sprayon Product!. Inc., pcowidcc atrosol packaging seme* to many indumtM. through in custom division. The company alto poekagm snd markets broad Una ofindustrial product! undar the Sprayoa labd throuph tu industrial supply division. Continuwi an upward timd. saiai in the 1971 fiscal you rota la a new record. They made up of total consolidated sales. Earnings ware also higher than in IIreal 197a Althauph paclapinp of coumgb for the Coming! Croup, u wall ai for many other eoauaps nsuiiifKmrm, it a major sefmeni of the custom division's bostnees, pncktging of othar types of product! is growing ttaaddy. Thu volume of such materials is window cleaners, metal deanurf end fbbric protector* if increadap at a pond pace. Alan of prowinp imponanca are manricli Ibr the auim motive aftsr-market--viayt cleaners. enpina itapraassn, carburetor denning compounds sad sum body undercoM. The electroam industry is coamboting mcintoa packaging growth tbroupft increasing dmnnd Ibr sptcuibMl cltMing MHfiab u| oiltfitaiNiiadljf* oncand products. Another am ofprotnnap prowtk it the adhesive Add. Pressure sensitive rdkwivee. ss wall ae sdhsstv far floor ula, padkagndosamn photo mouan aad many otlwr uses, ate new being lurrariftilly paekapad in aerosol container!. In a major btaakthreaph. Sprayoa laocndy flsvrlapodn method ofaerosol packapmp both pipmsated snd clear shetlK. overeenung t lumber of difleuk nduskat problems in the process. The technological aduavemeota am expected to have application in pnekaputp othar dUliealMb-hMdia products. Tha Industrial supply division continues to expend its line of product!. At the am time, die division is adding ns eatmawo jobber distributing orgstaeaiico. At year's end that organization mdtidad 491 jobbers. Tha number istapacudioincreasaabout 10 % in tha coming year. Thanks to utpped-up elWciency through iraasuica toksn at both the Psdford Heights, Ohio, aad Ahohorn. California, piaata. Sprayon found it Memory to msmuct only very nunor prim inenasm during did year despite tiling c o m Further c o b control mvesum now in elTbct indude tha usa of leased truehs which is rasuliing in lubsteimal livings on freight rheigm As tha veeiety ofproduct! being parkigog hot incrotrod, tha need for stepped up duality control prncadimi hat alM iaeroasad. Tide notd it being met by tlw use of sophtadeamd Uumunenu designed to saAguaid the quality ofboth tha now produeta and thorn which the subsidiary haa pashtgod for some time. In tha pem. Sprtyoo haa not generaiad pollution problems. The nauna of its operanons is such that the prabahihiy of Allen pollution is extremely low. If problem do davdep, wo ire cenMeat the advanced dewgn of Sptayoa's piann will permit them to be tflbetrvxiy handled by existiag facilitiec. The eerosoi peeksping industry tppears to be headed for coatmued growth ao theeenvenience of in "push-boitoo" diipenian it jairodurod mm an increasing numbsr of product fldd*. For tavtrai ybtn. Spnyoe hat kept poet with tha industry's program, sad we eapsc): to maintaia our strong positron. 0007-SWP-035040 0007-SWP-000116460 Th major function of International Operation! a ih maoufhctun and marketing at eeatingi euuide tli* United Su ms . Canada and Fuerto Rico. In addition, this diviaioa seekt la npaad tha compaay'i participation ia market* abroad. VUm ofwhatt)MaMti wtnidiarMt an oporatod ia Mnico, tnuil and dw Verfieriandi. cod there an ttctnicn ia I? otharcatioBiaa. Tin diviaioa alto kai whetty-owiwd wMdiariaa waving u ialaa orgaataatioat baaad inMaim and Jamawa. pirn an International Technical Laboratory In Cleveland. Grow revenuee and net income for die year lacmeaod modestly over a year ago. Earninga. however, were adhered advawdy by iha luatebto economic condition! ia aaaaa fempn eaaatnaa and by dhappointing rtauka in (ha Motherland* oparadea. Capaaaaa durinp tba yaar iacraaaad for aararal rtaiaaa. A main prt occupation af ilia dtvaioa ia the drvtiopnwor and oiininp of management and wafffar foreign need* ofaaitdnf operation! aad for upaaaiaa lawadiaia return an no* taa from aapaaaaa of dtia kind. Tha operation of tha International Tachaieal Laboratory wan aipandad a provide dw bioadar tirhniaal baaa datmad aocamary far dw fonm grewih of dw dMtion. Dann| dw year thta laboratory pan iamaiad aiiiniaaa to a number at onarcoaa IhctotHo in gauging plant raquinanaMa and ia pradncdan wtkalgam Duriap dw yaar licoaao agroaaiHir* wan npaad with paint manufacturers is Australia. Now Zealand. and CottnRkn. At the vary dote of the year, we entered into a jam vtnturt far paint manufhcturo in Panama, la thit wa will ba auaeiand with an aaiatiag Ikanaaa of tong naadiag and wnh local iatafem, Additional joint venture potcibilitiet and acquisition! an currently baing explored. la Mniea. operation! cantiaiwd to enjoy steady growth aad wvaa new branch Mom. patterned targaiy after theta in North Amotion. wan etubiithed. Tha Maueaa company now operates U such branch uom. Vttifohtiahen Ralston. N. V.. in dw Mthbedandt opened a dfth branch non daring dw yaar at ftootendaai. Tha nenan branch Ron is expenraemal and in it Ralston plana to MR mat* intmtiveiy some ot tha new mnrhanditing caocepta we believe can funiior tapend sales. In Europe there appears to be de*aia|enf a dtutyaunetf nwrhei with indications that new and dillhrent appeoachet at setting will ba needed . Ii it our philosophy that dw imarten of the company. In tubiirtiarwe and itt Mrenrear. can ba served baH through caaidiiwiian an aregioaal bids. In May the dm regional waatiag at conducMd for repratemaiiva* ofconpaniaa ia II tana Amman and Caribbean canntrWa At tha Hawing new awahatiiig aad manapenwni ooncapw wen ecaadaed. Major rapt wan takaa to achieve aaeform padmgiag of timslnr products thrniighaur the regieo. Wa bdim that tlut uniformity It a pnnquiriw re malting flwnblu raipenal advotwung pcogntaa aanirary for arealerated talas growth. Early ia tha 1*72 local yaar aw wid c mo m tlw new position of Mutgw--European Ragtco. This move datignnd in gw foitiwr SHtsuncs to our European tuhddiatan aad Ueaaaaaa. whh dw uiliaMM objective of iiifnatiog prnarniioo into dw European market. We era coottdeo* dm under the regional concept rasulti witt he at adhetivu aa thota now bang achieved in Lada America. 0007-SWP--035041 it 0007-SWP-000116461 Purchasing is corporate function vim tin Purctiaeiag Department negotiating contracts and commitment!. and providing pracunmut tervtcas for th# Coatings Chamkals ud Aiuuliarm Group*. Tht Purchasing Deportment it cmmalind. with tpcciaiittt concentrating on ipeeiAc maiarials and servfcn. This tho mum the tcooowitt mode potnMo through targe quantity purchases. In dm imtmu ofefficiency, tho purchasing function t* alio eurcnad at tub plantto tapaffita prociuommi of maiarialt and tupplias for local use and to meet local production raquiratnoafs. Among tho raw mafanalt pwchaaad an nude, baryta* and criratim ora* and one concumaaa far pigamut and chamwal maanfoetara: pigmanm, lataaaa. oil* and patm* Icum and coal tar solvents for coatings production; and a variety of chemicals and chemhai iMarmadiau* far raain and chamicol operation*. Other hmapanharad iaatada a plate and cold rolled trad far ooataioar mtaafaatnre; cairooa and dram flu padtagag ooa prodoea: prop* iantt for aaroaol packaging; natural and tynritadc bristle tad trim for hcuihtei lumbar for berah handlai: Ikbrtc for paint rattan: and ad plaal and offioeeqaipmaat andtuppHao The Purchasing Dapratmeat cstablishai the sounae ef supply for Uw many decorating and tolatad producte re-sold in our braaeii stone udkuaddapanmtats. Tha actual porchaauig of tudunatadali it Handled loaatty in accordance with corpontt pwebadag guiddinaa. No Mfioua difficulties wart anpanaacad m Mowing adaguaN suppUas during tha year. In anucipadon of a pontMa work Roppaga ui the wad industry at midyear, tin ptaM purchase* aaia mmandly inctiuWl to anum unintemtpaad production of metal concaifwis. Overall, priest hdd fairly itandy, with dacreata* on tome naira ofhetdagincnasM an others to a Urge extant. Intagard to purchased tervieei. two gaiiant bright rale Increases by both the railroads and tha truck line* naira a major coactra. To olftat tome of these lacteares. am ua non operating laued truck fiesta when this is feasible. To raitbar itrangtlian the corporate purthatiing function. Haney L. Ptepho hat baen named Aunuat Viet Pratidaat Purchasing. Mr. PUpha brutgt to our purchaa* ing orgutamtioa vahiaMn *penis* puiad it previous sssignmants within the corporation. Time mcompnaied technical ud plant operations. angUmenng and planning. Ha was mom taranrly Corporate Director of Cngmccnng. A racont otpnliHoaal chugt indudad tha consolidation of tltn spariaKrad laaiad dapaitmom purchasing function into tha corporal* Purchasing Daputmmt. UTra activity wat formariy camnd through at Datrort. Wa briicv* it cu bo aioca sWIctivety pmfonotd at haodoutrtett tn conjaacBco witk prarurantent sarricn for braock wort uparatiant. Wa imiripata no major wpply problem in 'Urn yrar ihnd. Time is no tvidanet alibis time to suggHttlm daralopmant of any cndral situttiora id ora ttaM of intamt However, it teems likely that the avenge price of purchased materials and services will be modmsely higher. 12 0007-SWP-035042 0007-SWP-000116462 . wawtDslsoiatk inrrand motivitiaa farad maahpi ofoaroortt fem so they may Dad both chattanpt and uiuftetiea la thair day-to-day task*." All ptnonati polkiti an idmimiarvd by ibt Corporal* Pmonnai OtpaniMM. Rnpoosibilibti com tb full lptetrum of mattm rsUtadto ratployats. indudinf ftcnuUMat eempMWMa. contract nstriiarinni. miamp and amployaa comimuucatioaa. Howtvar. iha panoand function is broadly dacantnliaad with panaaari manapan lacaiad at all produan* untu. major laboratonas and m taka rapons. At thaandoffiscal WT| wa had XUUdamployaH. adaenaat of431 from tha ptavioga yaar. tMt daemon waalatpty tha mult of tha tUmination or eoMOfidaMoti of ftuMtioai uadar a vary afltatiwa Ptodt Improvamot Ptofma. Labor contract napotiatioaa warn cosdartid aa 10 Imadaaa dwfai tha yaar. SipM of tha maltiag aoatncta aio Mr thin yaan. Uw ocbar too for too yaan. laeaaaa or local CHcamttaaeaa, tha earn of iha aa* aoamm aaiM contidaiaHy, boa all onto aoH oUNo tha iaofi ofaani manta by otbar compoaiaa dmiag Iha aaoM parted- Tha contract at tha Saa Laaadao aaomaar ptaot ana obtaiaad only alto a tbiaaoMMh aMfeh A walk ttoppapa at tbo Nawark plant and aaotbar at tha Mom** piaai. both Oaa Vtafafal^fa^l^M^^^wf^laf^ldM^poofo^lyiSaai^MwaMa ^l^V^ppM^p at^f* lplpMp^^raatd^^^Mppwli^M^^^^pap Coatnat aapartafeoa sohadalad Ibr l*TJ iavato rix Duriai tba yaar, 34> aapiayaaa atada wt adtha TaMoa Aid Baa andtr which tha company pcartdm hmaarti aid (bt woriMthuad adaaadaa m tts uadmfndaaia and pnduata (avsla. Efforts iatba National Affiaaaaof nnaamwa program to trail and plaaa hardoora imrmpioyad wart continued. A total ofM persons uadansent training. Our mtntioa nm comports vry favorably with tha national autrapn. Manpower planning activities in all ami of our bunntu Hava been IbHbar intensified ia Uao with evanll eorporata lonp-raiipe planning. Tha objective is to hire wellqualifisd pwph available for m assipimenta aa thru develop. Wa an making strong tiforts to starch out tha taiaat alraady ia tha orgMUMon. provide effective gindaaae far it and ba toady to mova ptopia into new and imm eballioifnt postpone aa oppomttnitiaa opto. This ptopna baa many hen, indudloiian Assessment Pragmas to identity ipiailli capabtHwaa. and aataasiva in-canto tntaaa ia wlda variant of slkilla. Tha program ofoomaaaicatiag on a penoo-to-penoa baaia with taptoyaai concaraug banadn availsbit to them aa aaaban of.tha orgaaiaatioa baa recentd entbusiawtt aaaaptiari It i* bias tapandad to provide iafbnaatiea eo gaaemlcorporam objectives aad penmens la 8sal 1*71. we plaa to broeden tba nope of iha employee eoattMaicatiew pragmas to Htchida diseuiMM of load itjabn and wsaita within tha framework of corpenieaime.Ai the same time, aora thoreugb effect will bama* to deseratine employee utiuudciaadctactieoa to pragma! and plaaa of the corporation. W# will also mk ioeaaaad motivation for ah members of tha wotfc (baa n they aay lad bc-u ohatttagt and sattabatioa la thalr day a day taafca. 0007-SWP--035043 13 "Our * financial condtton it mroag and in good baianca. This prosndm us within cxedtoal baa* and conndmbto IWxibrtity to support th* growth mm tnvisigw" MhaCn* Vwt rnodwa--Timms i Ai pan of th* restructuring of th* Company into oparaung group*. our aceounung ha* boon laorganiMd so that wt can report comparably on each ganaral bunnoss area. Following is a schedule of prttai operating lawks for 1971 nanus 1970 for each of the reporting unit*, the income figures have been computed after full absorption by cadi of the units of all direct and indirect costs and allocation to those units of all corporal* costs, including interest, pensions snd general adimamrsiise esptnre. This approach prasndst year management with much more precise information relative to the profitability of each segment of the business. Since nil costs have been fully rejected in the operations of each amt. the total of the income figures agrees exactly with the amount of pretax income reported in tht corporal* Statement of Consolidated Income. Snta Cosimat-- Chonucab.. .. AiHdMnm... . . . Spnyon......... ........... linamauonal. .. . U2S.SM 133)74 5I.OOS 14.2*1 11.447 Touts 5SJ4A42 1971 (Thmusede os Ostlers) Tool '*.% *4% 9 2*J 1 3.0*5 SSSSk Tu m 5i3j w -U4l '.OH l.4 I.1N nw f Tool 11.7*5 -U.7*; su*; a s *; 44*4 tOMJ Seta 5401.4)1 51J47 4*J0t IXJ07 10.421 `Haj 197B --------- of Toad leosmo Ti m 7*j*; JISJ4I h i *5 UN 92*5 14*5 9,134 I.IIJ ill I.I7T S2MN of Torsi M.4`; .17*. ns*; J*5 40*; -- Chutes Ssta 534.411 .1.3*1 3J02 i .i 1.03* SUM taeomt Bifeft Ti m 51.740 -3.303 -2.051 511 153 5J4? Turn--The prnsia for l!. S. end foraun meeme tasrn hr fbnl 1971 aewwm is $I1.*I0.01L Other tssm Hummed to nan Thus issea MMumsd to 115.027,311, up Asm II3402J32 la 197*. OnWredr loselliaa Si |.740MO* telfiled iMi yew. Cash OindMdi Imre hem pert mwy mwsmm ISM. romi fiyndiiiri earing H7I on-- n liunjll. eompeied tab Il*.4*l40t fbe left BwieniUdn is 1*71 leulM 511.93043*. up hum SldMMdd m in* Chari WwdWii Nsgerimlem we mpramm hr the poodle (ttafesMMa afmeClMlwd Hmeed oU mdlta* the beund Oreek. >ew lenee. unwiiude dent At dee lime a saeeera damwdl be with clemdewas n* be incurred in 1971A psswa hw hem eisaaea ta comr ihoee euunusa ceem Snwmf Amnrsri Condlita--Ourm* die yew a S23JMl MH tlmeoew lUvoSun* Cndfc Aareemua am eeaeueud tah a greua of SaaSL we aa eat reemaa Uw rnsa fw any eudHienal dnenosig dunag iho l7i Hical yew, mean for snuoaat Sorrownw. Woriunf espial el Aupuei 31. sen mernemd to SINJM.*ut hem SISdJPMU I47d Curran ISM *04.411 so I. Owns theyew 51,303.000 ermiasl ernouei of ilw Compony's ).U`l Pstamau Oue Iset er ispymhnnd lo meet smsmg ha* mensem aMn Kns beewne dhm VonI IPS. An--i Abe hiSll isesess far tot 1971 54.731,03* eornpws* W HUSM M lira C-- of me pemine plun nere msitad durina die yew prandtog imprei smnm rw me ptmapeeo. Than shiagmea--usllaaimes venous amm tuning mine I97g heel yew. CtabtaSta* tohwTta-lirit aver SJCOulsnsdempie-- cunendy ire pemrieuwa dwell rtfelw reyioll Oeduninne m the run *M aastianw April I. Isas. An Au-- yi. i*TI. 119.31* shams ofComm** Stash. nnssmuag 3.1*. of *o total 14 0007-SWP-035044 0007-SWP-000116464 0007-SWP-035045 Statement of Consolidated Income N salat............... OUmt incenw--nit. Carta and Mptaaaa, includiitf dapnciation (principally uniaht-iim) of311,920,036 ia 1971 and SKM4S.4M iaT970: Cost of product* sold......................................................... Sdlin*. aaatni *o4 adiamranv txpcsaaa................... FtatiMt--NMa F................................................................ Id c mm Mbia Income Ti m ud Exmordlaary Cndk r Ended Anita n 1971 S3S4.692.413 1.326.074 53d.Olt.4ar i 19*0 3323,7*7.767 1,130,939 526.911.726 313.134,727 139.930.43a 4.9JJA54 3J90JOB S27.13J.04I 31,115,444 132.314.375 134,312400 4,430.634 6.739.220 *7,*11.731 29,029,993 ttaitad Stmt--Met* B: Payable cuneatiy . . Defend................... FoiKa*.................. ( coot Beta* Extraotdiaary Credit Extraordinary cradit--oat pin lauMna draw the tala of McvncNi of Bara*. JtatoaANtebo&cw Liaitad tea applicable income taxes of 1332,000 .................................... Nstfi 11,000,000 1.311.331 1.1*1.117 I3.7IO.OW 15.173,400 13.041.000 3W.03J 1.039.029 14.417.012 14,542.913 1 -01 15.173,400 334.412 5 132)77.393 SUMMIAMlWlldHliflBIMill I If 0007-SWP- 03 5046 0007-SWP-000116466 # TUB SHIRWIN.WILLIAMS COMPANY Aod Coatolidand SuNiiiiiiw Statement of Changes in Consolidated Financial Position Smrci if Fmtdt From oparciioai: Income befor* mnordiaaty credit........................................... Add back ctaaifUta operettas aotnvdriap Audi: FroviswafordepneUtta................................................... Incrsass iaMacanvei defend Marti lamam taxm. . . . Fuads provided from oparatioai exetusiva of extraordinary audit.......................... ............... Exmotdiaaiy cndii.................................................................. Frocaads from uia of 6.13% CoauanUa Subordinated Debaatuns....................................................... Daanasa ia rtvotvinp credit aotaa............................................... Froeseds from sale of suek under stock opttapta................... Vr 6add Amass ic , - -- ; U11 1970 5 15.175.4M 9 14,34X91) 11.920,0)6 I.4IX235 2i.sr.rr9 2t.5r.779 -0-0-- -- 253.719 1 2l.7ll.49t 10,643.666 695.IJI 25.U3.730 5X462 26.4IS.2l2 4o.ooa.ooo l23.000.000) 13,000,000 50,625 S 41466437 AppUcst,wo tf Fundi Cash dividends daelaiad.............................................................. Additions to proparty, pleat aad equip*--t net of normal ratiraataata........................................................... Purchase of common therm for treasury..................................... Purchase of 9.4} Dabaatune................................................... Increase ia working capital........................................................ Other--oat.............................................................. ... ................. S 11,740,900 11,721.767 ma^SM* I.J03M0 4,115.43d <176405) 5^X761490 5 11,766.296 14.470.122 59X063 --0-- 14.5)3,77* <06.376 5 41.466,637 Ckamgu h Wiring Cmpiml--fsrnua (Qtrwsii) Cask and shon-tcem tamanaata............................................... Trad* h h mim Me^Mhls ....................................................... Iavenlorisa.................................................................................... Recoverable Matal iacams taaaa......................................... Ttadt saaeuats payable............................................................... Psatica, insert* aad ocher accruals............................................ Ineomaiasas ................................................................................. Other--act........................................................... ... ..................... laenaio la Wotfcias Capital $ (d.171,541) 7,194,792 1.319.233 Qaa 190,191 <64X2623 2.239,776 <337,799) S 4,1*3,436 S 1X433.206 6.6U.272 9.119,136 (XIM.749) (1.061.295) 1X39X3)1) (6,9X633) 176,370 $ HJ3X77I See noc m to consolidated floaadal mmmt mm. 0007-SWP-035047 0007-SWP-000116467 Statement of Consolidated Shareholders* Equity Social SsUmn st Stptomktr 1,2969.............................. Stock S9.195.430 Sain S protend nock: 123 thud wood apem xdw of uocfc opdoao . 4,441 Conusoa Stock iinaod. 32 duno upoo raovorrioa of 23 item of Stria* A protend itock tad 2 item ofSotte I ptotetod node................................. M9 item opoo oxatdoo of Mock opriooo . . . (U37) -- Otter...................................................................... -- Not lace--.............................................................. - Cud tfiridaedo dodand: Sorioo A proton* Mock--30.00 par item . . . . Serin B protend tuck--34.40 par iteoo . . . . Comma*--SZOQpariten.................................. -- -- fuitteoo of 20,600 cootno* item far imowy . . BsJsmei at AmftM it, 297V -- 9,190,742 -------- rT 3a1-9-0o1- 313342,130 J23 5430 - -- -- -- 33441.037 Otter Cflftel 313*7341 llttaiood larsiaff 31114,271312 4,740 112 23,112 (*D - -- -- -- 13,077493 -- -- -- 1.2M430 (290490) (113,407) (10,634,713) -- (M.09ft40t Co mo o Stock to TVmiw ? I (97.706) ma -- -- -- (59246)) (669,139) Coomoo ttoek Luaod: 31 duito cpo* coofonioo of II item............. oisvnmApnnwMBi ****** 6,130 item upea norciao ofMock opriaao . . . (640) -- -- CkkfMkokfocM: Soria A protend Mack--3400 par iteoa . . . . Bahmt* ri Apri 31$ 1971 _ -- ,190,102 194 n.430 - -- W.Wfl# 444 213431 - -- -- 15.173.400 -- -- 31404.901 (290.024) (113417) (10411439) 3191424417 -- -- -. -- --_ 3(640.159) Sot BPfeN 10 COfUOMltf^ i--cil dOMBlIb r* 0007-SWP-035048 0007-SWP-000116468 Notes to Consolidated Financial Statements Augun 31, 1971 NOTE A--PRINCIPLES OF CONSOLIDATION The eonsoiidated Anancial statements include lit tinum eanx tubtrdiaries except Tha Shtrwm-WiUi*** Company of Canada. Limited fmajority ownodL The Company's aquity in iha conaoUduad aat aaaM of that subsidiary imnaaiail to S9.I4I.OOO at Aodust II, I9TI. For dm yaar andad Aufuat 31,1971. tlw Company'* tquity m thatamings waa SI60.00a So dividends wan racaivad during the yaar. iMercompany transactions hava ban aiimineted. Appropriata ratal ofexchange )i*v# barn aaad to tmaalaaa formin currency amounts into Unitad Suws doflan, and tha tffcct, which waa not sigmlteant, waa indudad in consolidated ineoiiw. SOTS B-INCOME TAXES The Company Has racopvixed tlw deferred incoma tax liabthtta and benadn nutting from timinf diffmnen bo* twain dnanetd and tax accounting. The principal diflktarien rtlaia to dapiaciatlon and rascoex. NOTE C--LONG-TERM DEST Tha 5.43% Dabamunt Oua 1993 and the 6.23% Com vtrtiMo Subordinated Oabantuias Dm 1995ata ladoomaMa in whela or in put u tlw option of tha Company at tha raw* of toe% and 103.94% respectively and u dachainp rata to 100% in 1917 and 1990 rnpnttaly. Tha ratatad indentures require aanaal dnkiag fund paymaata of $2,000,000 for rach of tha nun, rommadai in 197} lb tha 3.43%Oabantumand in 1991 farthcl33%Dbntatex Tha Convertible Suberdinatad Oabaannaa aia convartibh* into Common Stock itMa than ankiol u adjaaonant in certain enan. A revolving credit agnaanat an* poop ofhnnka anti* tin the Ccmpaay to borrow at prinarata up to 133,000.000 in tha font of non* dm June I. 1974. a ta-ef (4% i* chargtf on theununri portionofihtaadkcoMaiinNat.Tho tgmnant nqaiia tha Cumpay to owiatiun maanlldita nat currant ana of on lam that $1234)00.0001 Tbo Company haa not yat borrowad undv tMtafnamm. NOTE O-CAPITAL STOCK Autfc' rind and istuad sham of (ha vinous dusts of stock at August II, 1971: SHAKES Author!zed issued Serial Preferred Stock: .... S4.Q0 CumulativeConventWe Pnftrnd Stock. Serin A.. 1,300,000 *06 34.40Cumnlatta Convertible Prefund Stock, Sana i.. 184.913 Common Slock (including 12.300 ihuas haM in tnoury)............................... 13,000,000 3,341,867 Tha thane of Satin A and Sarin preferred Mock an convertibia at ban convarsio* pnen of $97.93 and 342.30 par shara ofCommon Stock, mpactivdy. taking aach than of pwfaoad stock at 3100 Tor this purpose. Tha holders of tha psafbmd stock am astided to oan von for nch than. Tha Company may rattan tha Suits A prefund stock comtnmdng In 1973 as 3104 per sham aad as a declining imnant tack yen in HOP par sham in 1910 and thereafter, and tha Serin I prrihtrad slock at SI09 until December. 1971, and at dacHmag anoants to SI00 in 1991 and then* aAar. Tka iggm* praftnonofthe Serial Preferred Stack io involuntary liquidation it 125.191,900. At Augnn 31. t97l, w tfiptii of 1,641.191 sham of Cannon Stock waa maned for coavarsioa of Serial Fnfbnad Stock, coamnlmi of Convertible Subordinated Dcbctnm and excreta of Stock option. 0007-SWP-035049 19 0007-SWP-000116469 THI SHERWIN-WILLIAMS. COMPANY And Coajolidatetl Subsidiaries NOTE E-NET INCOME HA COMMON SHARE Net income pv common there has been computed beied oa the avenge aurnbar of shares ouisuadieg during tha year sfter dadacting the dividend reqeirtmsats oftha Serial fttftnud Stock. Nat income pet common ihaie unnuag fill dilution alto assumae the comwrskm cif the Series A preferred stock and the 6.0% Convertible Subordinated Dabaatusae (after adding to net income internal on tha de> bentune net of income taass) and the teartise of ttodt optiona (arith the proceeds from options uaad to pvichaae Common Stack ofthe Company). NOTE F--RETIREMENT PLANS Substantially all employees of the Company tad its do* mastic luhndiariaa. ho maat eastern requinmaata at to age and length of service, panidpaat in aoncoainbutary peaslon plant. The Company's policy it to accrue contri butions far itt peasion ftinda lapteesatlng normal coat and amortiaiion of unfunded prior service com ever JOyean. At dm meet recent actuarial determination dean, the assets ofdm pension flinch and the belaaoa thest accrual tscaadad tha actuarially compand value of vaatad banafta. NOTE G--LEASES Bnechm. offices sad certain warehouses and planu art lasted for various periods. Tha rental tsptnsa of leased prvmiias for the yaar sndad August )|. |97|. aggregated approaimualy S17.XO.aOO. Approiunsteiy M*; of these reatale refcta to leueas expiriag ia flvo yean or less. NOTE H-STOCX OPTIONS Oaring Steal 1971. tha ehaieheldon approved a restato naal of tha Company's Mock apnea plan authorizing the issuance of an additional 200000 shares of Coalman Stock teeffieew end key emplayem. Options are granted at pntet not lam dun Otir market vaint efthe shatet at dmn ofgrank Tha optiona ate txercuablt to Die b u m of ont-haif or oae-Bfth of tha optioaad ihana far each full year of em ployment following the date of gnat, and asgito live or ten yean after data of gnnk During dm year, options erne graatad Tor I7S.I SO sharer. 4.130 optioae were esercieed at in aggregate price of S251.711. end optieee for 50.660 ihana were canceled. At Augaet 31.1971. options fat 209,357 ahum were outstandiag at aa agpegam price ofSI0.IJ7.0ld. options for 72.4J7 shams were cxctcisablk and ll.lll shares ware reserved tor latere gnat*. 0007-SWP-035050 20 0007-SWP-000116470 Consolidated Balance Sheet Alices Currmt Asuts Cash............................................................... ...................... . Skort-urm lovairinaan at c m (approaimata markat)............... Trada iccouia racaivaMa. laas allowaacaa (31.313,000 fa 197!; SI,311.000 is 1170) . . . ...................... rnvMtomt--u ioacr of c o m (avara or 8nt-(a, Sift-out mathod) or maifcaa: Finishad OMKhaadiaa.......................................................... Work io prscaaa, raw mautiak ud nippbaa...................... Praaaidaa. Damnad fadanl iacoma tawaa--Nota 0, Total Cunaoc Aiara faaaaMMs* mtd Qtbtr Amt* Comma* sham of Tha Sharwin-WilUama Coapaay of Canada. Uoaitad--*1 coat--No( A.................................... Racai*ablaa.ad*aaMaaadotlMraaMta........................................ Pnfnty, PLmmt mmd Bfmifmmt--om dm bada ofcom Macttaeqr aad acuipmatt . . Laia allowaacaa for dapradatioa Aapa.ll 1971 3 12.655.112 5.000,000 70,591,935 1970 S 12.113.723 11,000,000 63.444,161 100.713,333 44.419.351 147.U2.WI 5.644,174 2.437.747 241.4M.tfl 104.314,963 41.491.691 145.IU.45d 5,201.275 2.524.213 240,117,100 4.112.744 UM4H Ml 1.432 3,402490 73.131471 151.424.114 239.640443 101.239.793 131.420431 3390.491.7J9 4,112.764 4.494.671 S.677,417 3.349.630 73426.032 IS0.9tl.22l 230.113,903 91.301.979 131.611.921 3311.106,443 fiahin^o and ^hirrhniiim* Cmrrmt liaMUm Now payaMa...................... -....................................... Trada aecouatt payaMt Compaaiaiioo and aaoa Paimo*. imamt aad or Dividaada payabta oa j Taxaa, othar thaa > lacomataxaa . ............................................................................. S 2,117,030 11,791494 14.021431 13474421 277,410 1.104431 6.699.137 3 2.117,010 14,643,413 13J44.4U 13,034,164 277,420 3.349.413 1.939.43) t Total Cwraaa Liabffldaa 55494471 36.607,630 Lm^Ttrm DrM-NMfC 3.43 V. Dabaatamlaaaladm of S1J03400 in uaaawy ia 1971)............................................ .................... 63i% Coaaarwlila TabarUnam riihaamm.................. 44,697,000 40.000000 50,000,000 40i000.000 11497400 90.000,000 Dt/trrtdfaaarTaaaa NmB................................. 1,331444 7.0H.909 SkmtMmf ffaaky Canfal Mfc--Noma O wd H: fail iidriir MtOampar mat........................................ OtiWCUM ....................................................... ... Uwihntimnuay.................................................................................... Lata eott ofcommoa tfaara ia trmmay...................................... 3,243,734 9.199.102 33,164,669 1,504,941 191.324.917 213,414440 6W.IS9 234,924.790 1390491.739 3,163.133 9.196.742 33.346.017 1.219.234 116490.409 23l.924.4i6 619.139 ` 231.236,561 5307106.463 Sn Bom ib c o h o UmK flnackdi II OO07-SWP-035051 0007-SWP-000116471 THE SHERWIN-WIUJAMS COMPANY And Couaolidatcd Subsidiaries Five-Year Comparison Year Ended August II Vat talas................................. Income before income taaea and eamocdinary name . . Incoma taae*--United Siataa and foreijn.......................... N income.......................... Earainppre share of Comawa Slack: Income before eatraordfnaiycmdit............... Vet income.................. Cash do* per sham oT Common Stock.................. Eanrinpaaaprecaat of saia*. . Return on invested apical-- Common Stock (0). . . . Cash dividends declared: Piafaicd.............................. Comma*.......................... Cash dividends par sham of Common Slack................... Number of shamholdon: i miiivOt ss Common.......................... Pnftcred and common sharsholden1 equity. . . . Common shareholders* squiip. Pec sham.............................. Capital aaponditim............... PrevisiaM Tor depreciation. . WorUnp capital...................... 1971 SSS4.6924I3 :s.sss.44 IJ.7I0.0JI IJ.I7S.40S 1970 isis.'ttw 39,0:4,995 196V S49S.139.I34 I960 S4S2.S26.W0 J0.47l.73l 36471.096 14,467,062 IS47T.39KA) 11.129.912 1*441414 17461.239 11969,663 1967 S4i7.40t.220 36421914 17.161421 19465.24J :.is 2.63 J.17 174\ 242 2.62(A) 4.69 247* 64** 3.29 3.29 5.16 J.76* 9.01* 346 1.36 S.tt 4.20* 94** 3.44 3.44 4.86 4.64* 10.19* S 1,109.641 I0.4JI.2S4 S 1,109462 I0.6S4.7IS S I.0W.I7J 10.6SQ.I41 I 299,4441 10,616410 3 276.057 I0.S6S.9S7 2.00 2.00 2.00 200 200 1.027 9.901(C) 1,071 6.916(0 1,071 1476(0 1.260 6452 93 8.094 5234,9241790 209.032.690 39.33 12472133 11.920434 18119*490 J23I434.34J 203442465 J6.SJ 15,463,604 I0.64S.664 164.209412 S22I.466.9SI 202462451 36.03 30.721.716 9461119 14947146* $220449.767 194,641167 36.64 3IJ03.399 7,6*3471 16291164* S213.264.7J7 116.940.337 35.25 26,991456 6.578.007 144.231414 S I 1 *i carnal HakSUm............... Total asams...................... Numberof amplcpaw .... 4.42tO 1 S390.4tl.7S9 20.034 443 ta 1 UU.106.4U 20,463 4.71ml 3137474,4*7 204*2 4.93 to 1 3324132,101 19.403 4.77 ta | 5306.873.794 18.633 Akcer t^Niy mv MMm aaaW as VWw iu l (A) tndedm 1334,403 M aria ate tust. squri lo 30.10 a sham. (torn tbe sals of mcnritim of Oancr. Jentoa A ^1* A m I * -- ~ a (I) Baaad on eommoa shafilioidare' aerie at bopinainiofjreor. (Q In addition to (ha reriemrad tharehoidem. there wan beaeSrtri thareholdenpaitidauinf is Company1* Stock Purchase and Savinas Plan Oar salaried emptoyeee(MU ta 1971. 7.066ia1470*3 7430 in 1964). a 0007--SWP--035052 0007-SWP-000116472 Cm* Flaw THE SHERWIN-WILLIAMS COMPANY And Consolidated Subsidiaries l> MILLIONS Ca^m liywOOT m4 i\ vutuoss IMP IMl '* IfM lift sat DMMs h* Casa m9mr in bq u ak i ** 0007-SWP-03S053 0007-SWP-000116473 Consolidated Balance Sheet The Sherwin-Williams Company* Exprtttad t| Alia* 11 Assets Qtmnt AiuU Tiada manats rtcaivtMt. Ims Uo w mc m l7*(W>ia 1971; 3147,700 la 1970) . Otter amaats nerivsbls............................................ Iiwsatcrits it tht low of coal (vscst or (m-ia. 8m art wstSod) ac msrtst: Fjaatei latsrfcaadlta................................................... Work ia prams, rw rials sad isppMst ..... Pupsri sxprows............................................................. IttemanbMlaeaMisM........... ................... Total Cumat As ms / assist--read Otkrr Amrt* CornaMa skins ofThe Cut* Whist Ua4 Coapaa? of Csntdt Limiad (30% oi*4) strati................... Mlinrilaiianas aaiithia sad adsaasts......................... CarrmUlUMtim risMIfrft* and Trsds issaasst wM.... ShaschoMcn' hyrods, eoansasadaa sad othas Tasa* oihar nan i Eqoitp 1971 $ 621.0(0 (>941,(It 17,493 I.3SJJ97 2,431.411 1*91*909 433.943 11,900322 200,000 51.494 251,494 (07.443 3,691.1(9 1.24*733 UMXMJ4S 4344040 323.703,439 3 4341,723 (01.133 371037 70.939 3.712,130 1970 3 674,1(9 3073,071 92023 1.293.006 2.614,206 10.907012 4(3.450 2(4.307 14,419032 20*000 6*410 26*410 607.442 3.647.497 (.01*734 1*2(3,493 9.717030 *36*443 32303*227 9*0(3024 512.034 56*433 5.1(3093 ti 9 I tI P I 1041.904 344000 1.61*343 56(050 OpWliftM Wots A. . . Giatiih--sd saipha Muss A iteooa sdWstarkli U 3019.109 23*720 I20MUM3 117040 23.440 130440(3 sttjaga 306*000 22*729 12,22*699 -015.911.419 31305*27 0007-SWP-035054 0007-SWP-000116474 o Canada, Limited and Subsidiary d la Canadian Doll*** Sh o t w b of Cooaolidated Income, Retained Earnings, Capital Surplu* and Contributed Surplus laeome . Met tain.................................................................. Retained Earnings Com and axpanam (iadodtaf dtpndatioe eomnuMd prinemlto o* a deefiMf Warn imUmS of S42*J*2ia 1*71 aas S4H75* la 1*70): Cootof product! tdO.................. .................................... Sadias, raaeral ud admutittratlve axpanam.................. Company aad povenunafit pendon con.......................... tatanot oa current debt*.................................................... laeona Btfen taaoen Ttaaa aad lataoidlaaijr Credit Income man......................................................................... loroma lafcaa bawdw> Cwdt Extraordinary credit--prccatdt Ikon tin tala ofthe Omau Crate DivMaa on September 1, 1*4* in eamn of iba aaa canyins ralnn of the taaaiMe anau aold net of the ia> coam tax An........................................................... Nat Iacaaa Salaam at ha|iaaind ofyear...................................................... Add--Nat intent far tfea year. .............................. DeductQuit dWdmdt daritiadi ftadtwad IT par duta................................................... Comment par itara (1*70--10178).............................. W ifyi ai. S . a | !* > --a^laaa---Uat| A _ ...... Iolanta at End orYnr VtMWdwIAMIO it 1*71 S37.151140 35.000 37.IH.140 1970 S33.374.432 60.000 33,634.432 Z1.WI.47* 1JJ41.40I 303,4*7 203.41* 3*.443.331 747J0* 3313300 404.2M 21.423.364 I2.979.4I* 4*2.013 230.617 33.U3.6IS 492.747 206.000 216.747 --0-- JJOMOJ S12J2s a w 409JO* 12A3SJOO 23UW I'Qimi 23144* 117.240 333.13d sizgogu 1.662.000 M.94*747 310,664.692 1,944,747 12,637,43* 242JQO 164.340 410.740 --0-- 410.740 312J26A** Sutplun tin oaat af HaSam Ifar caamMatian of MOi pndhmd ibanaaf apmaainaafSlOSaado-NetaA . . I_JJIU40 rnmNwiniSilw Surplus IS* aaaam of tfea par rah* of MO* pmSamd atone oer tbo amt afpordbatc for caaoaliiriaa--Men A .... I23JW rnmnaniMB hum* 0007-SWP-0350S5 u 0007-SWP-000116475 <$? The Sbcrwia*WiUiuu Compaop of Canada, Limited And Subsidiary Iiymnf ia fmidlM DoUara Statement of Source and Application of Funda Source of Funda From opantioai: Vtt income ..................................................................... FrevniM for depndatiaa................................................ (Clio) lom on db^sal of property and eqidpeieat . . . Dehrmd h u m tu credit (daductioa).......................... Total Pnat Opentiaaa Proceeds from dupoaal of propgty tod rqtapmaot . . . . Dacraaaaftwaaaa) iomitrallaaaoMi mcafriMsi aadadvaarm Dactoaaa la nat Carnot uaau............... Vast *4i>4 Aaam h 1971 1970 1 409,109 429.262 13.071) (3.430) 131,94) 9,47) 7,914 64.344 L2!2. 31,944 -47 434.739 19.193 (22.750) 2J79,949 34941 (20,994) -OU39M34 Application of AddlUsaa w proparty, plaat and rqaipmaai...................... DMdsbdepaid................................................... ... Purchase of pnlbrredihiiat for caotaUatica................... n astertu SaS1?*? ............... Innaaaa ia oat carnet amata................................................ S 411.4)1 234,314 II7J40 144*39 915*1^ 1 *20.033 410.740 -0-- 114.714 1.444.423 S2.393J34 Notaa to the CooaoUdacad Ffaaodal fauauaii NOTI A--DoHap tha joar 1,409 pOmi tluiaa two purehand far naaralhHna aad tba Compaaqr kaa aat caMo as ooa available for dfauihadoo capital tarpiaa of IIPJ4P ia complianea with laoha dl of tha Caaada Corpamha Act The dAnase betwaao the east of pamhaes and tha par vahm of tha aharaa aa penhaaed (S2MdO) Jathoou as a contnbutad mrptaa aa waaicad by tha Aat NOTI S-- Itapca* amenta to tha Compup'i ptaalaw plan haiae eiaaaad addMoaal leaa (aim oMfpuioae aiisiap Arm tawltaa raadatad pilar to Aapm3l. J97I, This amaaat ia ippanahanlUp 11,200000 (at Aaaaat 31. 1*70-1133,000) aod ia aaanrdtana ifth acoapti< accoaathu pciaoptw wtll bp sharped to apnatlsas over tha merhiap Uvaa at tha i | ' 1 ! Accountants' Repose To Tha (A mtf Aanmut im art do mtoi waSiyaJwSdiSflhSMwafdS1 tarthf' H. IfTI. i ia, tm. 0007-SWP-035056 0007-SWP-000116476 Subsidiaries and Licensees Consolidated Subsidiaries Domestic The Otbom Muutemriag Company jprayoa Product*, Inc. RuMwnat Company Compaid* Sherwie-WBIiami, SJ*. da C.V. Mexico City, D. F, Mcxice ftubhanaa Compeay (Grade) Liadtad Gnvaahotft, Ootciio, Caaodo Verflhbriefcaa Rclaioa N. V. Zeiat, Netheriaade Foreign The nwptn>Wiiuam Co. of Puerto llieo, (nc. Sea Juaa, Puerto Rico The Shanrie-WIUtara Co. |V ladiea) Ltd. KioMoa, laaaiaa SharwfowWaHaa* (Europe) Seeded Aaooyme Aataetp, Batata* F(aakeab*Tt,C*nMay Unconsolidated Subsidiaries Sh*r*ia>W9liaaw da Brad S/A Tiata* a Virata*............................................ Tha Shanda-WWtaata Ceaipaay o< Canada. Liaiind. . ............................. The Carter White Lead Cumpaa; of Cicada Uadiad <i0% nenad aaccaialldatad)....................................................... Taritat Aaoeyaee dee Marhlaaa Othara.-.......................................................... Sae Paulo, Paxil Moatnal, Caaado MoaMaL Caaado Parti, France Licensees 'AkMehpi Syd hraia(hadat) `Artral Sc* da Mattna Vanda at Eaaaaa D'tmpruaarta (Prance) *Ooaald Micphraon Onicp, Lai. (EaptaM) Fcbrtaa S. A. (Beta*) Mo b mc k W Edboa LpA. (Italy) SharerimWintami dta Ecuador FaMca Nacicaai da Planna LA. ShmaimWta** da Craw America. UL Shmwto>WU* da Com JUw. SJL Plnrhta tahaaoa 4 Co. (Ne trclaad). Lid. Fbaaac Aadtaa *A. (CMa> Wtadtace*. IA (Pttaaa) CoaMcWSJh. Fftkitai Narioml Mn w m Shcnria-Wttiaaw da Colombia SJi. Sherrie-Wan-- Eipadolu. U Shfat* PUai Cow. Ltd. (Japoa) --- *--------lulaatrlai I il inrnimtft CaiCmHaft 0007-SWP-035057 V 0007-SWP-000116477 Produces and Plants Principal Product! Paiata Eoamala Vairuihaa Lacqoan Stains \arewlSpcciaitidaZiMPi|maota*Ud>opma Maul Containds Industrial Powar-Drivaa and Maiatanaaca Sriuhaa Cetond nfMBta Syathatk Fan Craaoi Soccharia Barium aad Strontium Chtmicait Fouadiy Maebiaafy and Equipmaaa FiaiaUef Madtiaary and Griadtag Whaab Orpak Chamicala Titanium Dioxide Kfawi Tamili Mating aad Dyatog Colon Paiat IwabnXoBata aad Othar Paiating diwaamHaa Poamdc Pluaa Aanhnim. California Aakubala^OWd Bodford Haighta, Ohio Bend Brack, Now Janap Chicago. IKiaoil Ohio CMsadqOhio Coiforrifln. Kanma CrniMd. Maryland Dayton, Ohio OwAMktiiH Elgia, lUiaoia Oariaad, Taaaa Gibbabero, Nt* Janay Oraaaibom. Noath CaroNaa Hubbard, OMd Lao Angrtan. Califawid Mom*. Oaoqia Noonak, Nu ianay faHIbraia SiiliialNiiCUiMi Printing Center North OhaNtod, OMa Rcflcwdi CttiTff mnm, mimii Amiga Pinna Tht A. . Scandal Cnmnhai*, Chanda Maxico Cby, Matiao Mootml. Ctandn a wiaakHi Cauda 2oiskp Nk Mu mIi rwndu. Xicbtial Ceotar CowkjMh UMi 0007-SWP-035D58 0007-SWP-000116478 THE SHERWIN-WILLIAMS COMPANY faMdad in tad* EXECUTIVE OFFICES [01 Ptetfta Annuo. X. V. CltnUod, Ohio 44111 Directors E. Colin Baldwin Omrmmtfitt QmfAnum* 00m ICeth 1 Bs mo s Onnm hw C^-- Wilfctfcyor , ss* tWInMtr Ofkm lUplIliMCdfKIMl 0MtC Imwt hvMhv SMtahnihMiatat Richard 0. Bull Ol Wr Pi h i4w Csp w o h m c . rw M* Auriac--/! * Rctat f. Hnai| Joha A. Hill AwWar ItQM CWWW sfAn-- AllfC. Hot-- is-- Dap, C4--r A ass* Vidor Holt. Jr. no (-- Tl A Kb-- Ca William Moooaa Or--* nMhMHimi RohsrtW Rams-- TumooMondn--* Gaorfi P. Irfihadarlrsr WaharO.Sp--oat Iota O. Wri*hs DOWN* TAW In. Arthur W. Srsudsi Officers E. Colin Baldwin Omtmmvfrh ttmim* CSufCmwnti O0nr Wtiur O. Spsncsr Aw-- Richard 0, feU tt--W Hl hwAi ' Cnw| William Moonaa Owo Hi* Ar*4r Amapnci Gsoipp r. SchUudorirr Pi* Mr* Awt* Cimwh waiian C. ruM Ac* Aw mM--nwm Robsn P. Hwinip nwArariaO A^Ss Siq Richard*. Cm* Ac* Ai*4ii* Aw| Virpl A. Kalli* Harvty L. Ptopfco 4m Mr* A*4h * .Area**** Sanaa P. Col* Alia D. Childs Frsak H. Clark Frsak C. Koilaih --a Dmb mp WilHws P. Ini-- 4mmv Sk f v mpj t A* m y*M pad. this Annual Raoact -- prims* ft Hi* S--na-WilNams Mcmnt Comae. Nscth Ok--*. Ohio. Maw at (ha Wd u*#d a* onduarian eamsMi pMrnana wppHs* hr dw Shsmis -- CM--li Own. 0007-SWP-035059 0007-SWP-000116479 Tbt SbcrwifeWifflaas Coaptay 101 PraqMa At c w m, N. W,, OrrtUod, Ohio 44U5 i 0007--SWP--035060 Tie Sherwin-Williams Company 101 Protpect Avenue, N. W., Cleveland, Ohio 44115 0007-SWP-035061 0007-SWP-000116481