VAL
$102.61
Valspar
($.24)
(.23%)
Earnings Details
3rd Quarter July 2016
Wednesday, September 07, 2016 7:30:00 AM
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Summary

Valspar Beats

Valspar (VAL) reported 3rd Quarter July 2016 earnings of $1.57 per share on revenue of $1.1 billion. The consensus earnings estimate was $1.44 per share on revenue of $1.2 billion. The Earnings Whisper number was $1.45 per share. Revenue fell 0.6% compared to the same quarter a year ago.

Valspar Corp is engaged in the manufacture and distribution of coatings, paints and related products. The Company operates its business in two reportable segments, namely Coatings and Paints.

Results
Reported Earnings
$1.57
Earnings Whisper
$1.45
Consensus Estimate
$1.44
Reported Revenue
$1.14 Bil
Revenue Estimate
$1.18 Bil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Valspar Reports Fiscal Third Quarter 2016 Results

Reported diluted EPS of $1.44 (includes pre-tax merger related costs of $5 million)

--Adjusted diluted EPS increased 18% to $1.57

--Total volumes increased 2%, Paints segment volume up 3%, Coatings segment up 1%

--Net sales declined 1% (includes a negative 2% impact from F/X translation)

--Reported earnings before interest and taxes (EBIT) increased 3%

--Adjusted EBIT increased 7% (Adjusted EBIT margin rate up 114 bps)

Valspar (VAL):

Summary Financials

Fiscal Third Quarter 2016 (Ended July 29, 2016)
Reported
%
Adjusted*
%
Results
Change
Results
Change
2016
2015
2016
2015
Net Sales
$1,141.9
$1,149.1
(1%)
$1,141.9
$1,149.1
(1%)
Gross Profit
$421.9
$411.3
3%
$429.8
$415.6
3%
EBIT
$170.2
$165.7
3%
$186.0
$174.1
7%
Net Income
$117.0
$102.9
14%
$127.3
$108.8
17%
EPS (diluted)
$1.44
$1.25
15%
$1.57
$1.33
18%

$ millions except EPS

Notes on Net Sales and Volume: Acquisitions added 2% to net sales and 1% to volume for fiscal Q3 2016 (2% and 2% respectively for fiscal Q3 2015). Foreign currency translation negatively impacted net sales by 2% for fiscal Q3 2016 (5% for fiscal Q3 2015).

* Adjusted Results exclude certain items which are detailed in the "Reconciliation of Non-GAAP Financial Measures" included in this release. In addition to restructuring and other charges, the excluded items in fiscal Q3 2016 include $5 million of pre-tax costs incurred in connection with the proposed merger with The Sherwin-Williams Company.

CEO Comment "In the third quarter, adjusted EBIT increased 7 percent and adjusted EPS grew 18 percent. These results were highlighted by volume growth, new business wins across the portfolio and effective cost management. Coatings segment performance was led by strong volume growth in the Coil and Wood product lines. In the Paints segment, volumes grew 3 percent led by each of our International regions, and EBIT increased 28 percent," said Gary E. Hendrickson, chairman and chief executive officer.

Coatings Segment Results Fiscal third quarter 2016 net sales in the Coatings segment decreased 1 percent to $631 million. This includes the effects of foreign currency translation that negatively impacted net sales by 3 percent. Acquisitions added 1 percent to net sales in the quarter. Volumes increased 1 percent in the fiscal third quarter of 2016. Acquisitions added 1 percent to volume in the quarter. Coatings segment EBIT of $126 million increased 8 percent. Adjusted EBIT of $127 million increased 6 percent, primarily driven by benefits from productivity initiatives. Adjusted EBIT as a percent of net sales increased to 20.1% from 18.7% in the prior year.

Paints Segment Results Fiscal third quarter 2016 net sales of $445 million in the Paints segment increased slightly compared to the prior year. This includes the effects of foreign currency translation that negatively impacted net sales by 2 percent. Acquisitions added 4 percent to net sales in the quarter. Volume increased 3 percent in the fiscal third quarter of 2016. Acquisitions added 2 percent to volume in the quarter. Paints segment EBIT of $59 million increased 28 percent. Paints segment adjusted EBIT of $68 million increased 30 percent, driven by the benefits from productivity initiatives and the impact of the Quest acquisition. Adjusted EBIT as a percent of net sales increased to 15.2% from 11.7% in the prior year.

Dividends During the quarter, the company paid a quarterly dividend of $0.33 per common share outstanding, or $26 million. Valspar is a member of the S&P High Yield Dividend Aristocrats(R), which is comprised of companies increasing dividends every year for at least 20 consecutive years.

Valspar: If it matters, we’re on it.(R) Valspar is a global leader in the coatings industry providing customers with innovative, high-quality products and value-added services. Our 11,100 employees worldwide deliver advanced coatings solutions with best-in-class appearance, performance, protection and sustainability to customers in more than 100 countries. Valspar offers a broad range of superior coatings products for the consumer market, and highly-engineered solutions for the construction, industrial, packaging and transportation markets. Founded in 1806, Valspar is headquartered in Minneapolis. Valspar’s reported net sales in fiscal 2015 were $4.4 billion and its shares are traded on the New York Stock Exchange (symbol: VAL). For more information, visit www.valspar.com and follow @valspar on Twitter.

FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (PSLRA). The PSLRA provides a safe harbor for forward-looking statements.

Forward-looking statements are based on management’s current expectations, estimates, assumptions and beliefs about future events, conditions and financial performance. Forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside our control and could cause actual results to differ materially from such statements. Any statement that is not historical in nature is a forward-looking statement. We may identify forward-looking statements with words and phrases such as "expect," "project," "forecast," "outlook," "estimate," "anticipate," "believe," "could," "may," "will," "plan to," "intend," "should" and similar words or expressions.

These risks, uncertainties and other factors include, but are not limited to, deterioration in general economic conditions, both domestic and international, that may adversely affect our business; fluctuations in availability and prices of raw materials, including raw material shortages and other supply chain disruptions, and the inability to pass along or delays in passing along raw material cost increases to our customers; dependence of internal sales and earnings growth on business cycles affecting our customers and growth in the domestic and international coatings industry; market share loss to, and pricing or margin pressure from, larger competitors with greater financial resources; significant indebtedness that restricts the use of cash flow from operations for acquisitions and other investments; our access to capital is subject to global economic and capital market conditions; dependence on acquisitions for growth, and risks related to future acquisitions, including adverse changes in the results of acquired businesses, the assumption of unforeseen liabilities and disruptions resulting from the integration of acquisitions; risks and uncertainties associated with operating in foreign markets, including achievement of profitable growth in developing markets; impact of fluctuations in foreign currency exchange rates on our financial results; loss of business with key customers; our ability to innovate in order to meet customers’ product demands, which may change based on customers’ preferences and competitive factors; damage to our reputation and business resulting from product claims or recalls, litigation, customer perception and other matters; our ability to respond to technology changes and to protect our technology; possible interruption, failure or compromise of the information systems we use to operate our business; our reliance on the efforts of vendors, government agencies, utilities and other third parties to achieve adequate compliance and avoid disruption of our business; changes in governmental regulation, including more stringent environmental, health and safety regulations; changes in accounting policies and standards and taxation requirements such as new tax laws or revised tax law interpretations; the nature, cost and outcome of pending and future litigation and other legal proceedings; unusual weather conditions adversely affecting sales; civil unrest and the outbreak of war and other significant national and international events; risks relating to our merger with Sherwin-Williams including, the possibility that the closing conditions to the contemplated transaction may not be satisfied or waived, including that a governmental entity may prohibit, delay or refuse to grant a necessary regulatory approval; delay in closing the transaction or the possibility of non-consummation of the transaction; the potential for regulatory authorities to require divestitures in connection with the proposed transaction and the possibility that Valspar stockholders consequently receive $105 per share instead of $113 per share; the occurrence of any event that could give rise to termination of the merger agreement; the risk that stockholder litigation in connection with the contemplated transaction may affect the timing or occurrence of the contemplated transaction or result in significant costs of defense, indemnification and liability; risks inherent in the achievement of cost synergies and the timing thereof; risks related to the disruption of the transaction to Valspar and its management; the effect of announcement of the transaction on Valspar’s ability to retain and hire key personnel and maintain relationships with customers, suppliers and other third parties; and other factors set forth in the risk factors section of our Annual Report on Form 10-K for the fiscal year ended October 30, 2015, as well as Valspar’s Quarterly Reports on Form 10-Q and other documents filed by Valspar with the Securities and Exchange Commission.

We caution investors not to place undue reliance on any such forward-looking statements, which speak only as of the date on which such statements were made. We undertake no obligation to subsequently revise any forward-looking statement to reflect new information, events or circumstances after the date of such statement, except as required by law.

THE VALSPAR CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
For the Three and Nine Months Ended July 29, 2016 and July 31, 2015
(Dollars in thousands, except per share amounts)
Three Months Ended
Nine Months Ended
July 29,
July 31,
July 29,
July 31,
2016
2015
2016
2015
Net Sales
$
1,141,942
$
1,149,126
$
3,084,495
$
3,243,084
Cost of Sales
718,052
733,572
1,935,176
2,094,956
Restructuring Charges - Cost of Sales
1,943
1,319
7,304
7,398
Acquisition-related Charges - Cost of Sales
--
2,952
--
2,952
Gross Profit
421,947
411,283
1,142,015
1,137,778
Research and Development
36,211
34,951
104,330
99,590
Selling, General and Administrative
207,461
206,432
610,006
600,310
Restructuring Charges - Operating Expenses
3,302
3,280
8,708
5,994
Proposed Merger-related Charges - Operating Expenses
4,616
--
22,856
--
Acquisition-related Charges - Operating Expenses
16
892
1,141
892
Operating Expenses
251,606
245,555
747,041
706,786
Gain on Sale of Certain Assets
--
--
--
48,001
Income From Operations
170,341
165,728
394,974
478,993
Interest Expense
23,082
22,622
68,286
59,178
Other (Income) Expense, Net
103
70
1,469
799
Income Before Income Taxes
147,156
143,036
325,219
419,016
Income Taxes
30,168
40,174
75,773
121,866
Net Income
$
116,988
$
102,862
$
249,446
$
297,150
Average Number of Shares O/S - basic
79,124,763
80,020,089
78,947,072
80,857,078
Average Number of Shares O/S - diluted
81,185,695
81,999,701
80,904,905
82,910,996
Net Income per Common Share - basic
$
1.48
$
1.29
$
3.16
$
3.68
Net Income per Common Share - diluted
$
1.44
$
1.25
$
3.08
$
3.58
THE VALSPAR CORPORATION
SEGMENT INFORMATION (UNAUDITED AND SUBJECT TO RECLASSIFICATION)
For the Three and Nine Months Ended July 29, 2016 and July 31, 2015
(Dollars in thousands)
Three Months Ended
Nine Months Ended
July 29,
July 31,
July 29,
July 31,
2016
2015
2016
2015
Coatings Segment
Net Sales
$
631,034
$
640,225
$
1,762,033
$
1,858,103
Earnings Before Interest and Taxes (EBIT)
126,333
117,311
335,252
360,942
Key Metrics (GAAP):
Sales Growth
(1.4 %)
(6.5 %)
(5.2 %)
(0.7 %)
EBIT, % of Net Sales
20.0 %
18.3 %
19.0 %
19.4 %
Key Metrics (non-GAAP)(1):
Adjusted EBIT
$
127,139
$
119,911
$
337,334
$
320,450
Adjusted EBIT, % of Net Sales
20.1 %
18.7 %
19.1 %
17.2 %
Paints Segment
Net Sales
$
445,421
$
443,844
$
1,143,578
$
1,209,346
EBIT
58,933
45,897
105,494
117,797
Key Metrics (GAAP):
Sales Growth
0.4 %
(7.5 %)
(5.4 %)
(8.5 %)
EBIT, % of Net Sales
13.2 %
10.3 %
9.2 %
9.7 %
Key Metrics (non-GAAP)(1):
Adjusted EBIT
$
67,500
$
51,740
$
124,718
$
127,533
Adjusted EBIT, % of Net Sales
15.2 %
11.7 %
10.9 %
10.5 %
Other and Administrative
Net Sales
$
65,487
$
65,057
$
178,884
$
175,635
EBIT
(15,028 )
2,450
(47,241 )
(545 )
Key Metrics (GAAP):
Sales Growth
0.7 %
(0.0 %)
1.8 %
2.6 %
EBIT, % of Net Sales
(22.9 %)
3.8 %
(26.4 %)
(0.3 %)
Key Metrics (non-GAAP)(1):
Adjusted EBIT
$
(8,657 )
$
2,450
$
(22,671 )
$
(554 )
Adjusted EBIT, % of Net Sales
(13.2 %)
3.8 %
(12.7 %)
(0.3 %)
(1)
The information on this page includes non-GAAP financial measures.
Please refer to the "RECONCILIATION OF NON-GAAP FINANCIAL MEASURES"
included in this release for detailed information.
THE VALSPAR CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
As of July 29, 2016 and July 31, 2015
(Dollars in thousands)
July 29,
July 31,
2016
2015
Assets
Current Assets:
Cash and Cash Equivalents
$
170,223
$
342,647
Restricted Cash
836
1,628
Accounts and Notes Receivable, Net
828,689
876,800
Inventories
523,637
512,609
Deferred Income Taxes
32,898
28,120
Prepaid Expenses and Other
137,228
103,241
Total Current Assets
1,693,511
1,865,045
Goodwill
1,286,591
1,304,831
Intangibles, Net
627,939
653,020
Other Assets
125,462
117,415
Long-Term Deferred Income Taxes
10,056
6,893
Property, Plant & Equipment, Net
646,522
630,814
Total Assets
$
4,390,081
$
4,578,018
Liabilities and Stockholders’ Equity
Current Liabilities:
Short-term Debt
$
242,208
$
474,169
Current Portion of Long-Term Debt
150,101
158,091
Trade Accounts Payable
563,078
554,493
Income Taxes Payable
19,485
43,530
Other Accrued Liabilities
421,717
390,590
Total Current Liabilities
1,396,589
1,620,873
Long-Term Debt, Net of Current Portion
1,557,001
1,706,950
Long-term Deferred Income Taxes
242,977
226,798
Other Long-Term Liabilities
152,112
139,188
Total Liabilities
3,348,679
3,693,809
Stockholders’ Equity
1,041,402
884,209
Total Liabilities and Stockholders’ Equity
$
4,390,081
$
4,578,018
THE VALSPAR CORPORATION
SELECTED INFORMATION (UNAUDITED AND SUBJECT TO RECLASSIFICATION)
For the Three and Nine Months Ended July 29, 2016 and July 31, 2015
(Dollars in thousands)
Three Months Ended
Nine Months Ended
July 29,
July 31,
July 29,
July 31,
2016
2015
2016
2015
Depreciation and Amortization
$
23,480
$
22,566
$
71,163
$
68,058
Capital Expenditures
28,605
19,647
89,159
60,846
Dividends Paid
26,152
24,105
78,307
73,056
THE VALSPAR CORPORATION
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED)
For the Three Months Ended July 29, 2016 and July 31, 2015
(Dollars in thousands, except per share amounts)
The following information provides reconciliations of non-GAAP
financial measures from operations, which are presented in the
accompanying news release, to the most comparable financial measures
calculated and presented in accordance with accounting principles
generally accepted in the U.S. ("GAAP"). The company has provided
non-GAAP financial measures, which are not calculated or presented
in accordance with GAAP, as information supplemental and in addition
to the financial measures presented in the accompanying news release
that are calculated and presented in accordance with GAAP. Such
non-GAAP financial measures should not be considered superior to, as
a substitute for, or as an alternative to, and should be considered
in conjunction with, the GAAP financial measures presented in the
news release. The non-GAAP financial measures in the accompanying
news release may differ from similar measures used by other
companies. The following tables reconcile gross profit, operating
expenses, net income (GAAP financial measures) and earnings before
interest and taxes (EBIT) for the periods presented to adjusted
gross profit, adjusted operating expenses, adjusted net income and
adjusted EBIT (non-GAAP financial measures) for the periods
presented.
Three Months Ended
Three Months Ended
July 29, 2016
July 31, 2015
Dollars
% of Net Sales
Dollars
% of Net Sales
Coatings Segment
EBIT
$
126,333
20.0 %
$
117,311
18.3 %
Restructuring Charges - Cost of Sales
22
0.0 %
825
0.1 %
Restructuring Charges - Operating Expense
768
0.1 %
1,775
0.3 %
Acquisition-related Charges - Operating Expense
16
0.0 %
-
0.0 %
Gain on Sale of Certain Assets
-
0.0 %
-
0.0 %
Adjusted EBIT(1)
$
127,139
20.1 %
$
119,911
18.7 %
Paints Segment
EBIT
$
58,933
13.2 %
$
45,897
10.3 %
Restructuring Charges - Cost of Sales
1,921
0.4 %
494
0.1 %
Acquisition-related Charges - Cost of Sales
-
0.0 %
2,952
0.7 %
Impairment of Certain Long-lived Assets - Cost of Sales
5,867
1.3 %
-
0.0 %
Restructuring Charges - Operating Expense
779
0.2 %
1,505
0.3 %
Acquisition-related Charges - Operating Expense
-
0.0 %
892
0.2 %
Adjusted EBIT(1)
$
67,500
15.2 %
$
51,740
11.7 %
Other and Administrative
EBIT
$
(15,028 )
(22.9 %)
$
2,450
3.8 %
Restructuring Charges - Operating Expense
1,755
2.7 %
-
0.0 %
Proposed Merger-related Charges - Operating Expenses
4,616
7.0 %
-
0.0 %
Adjusted EBIT(1)
$
(8,657 )
(13.2 %)
$
2,450
3.8 %
Total
Gross Profit
$
421,947
36.9 %
$
411,283
35.8 %
Restructuring Charges - Cost of Sales
1,943
0.2 %
1,319
0.1 %
Acquisition-related Charges - Cost of Sales
-
0.0 %
2,952
0.3 %
Impairment of Certain Long-lived Assets - Cost of Sales
5,867
0.5 %
-
0.0 %
Adjusted Gross Profit(1)
$
429,757
37.6 %
$
415,554
36.2 %
Operating Expenses
$
251,606
22.0 %
$
245,555
21.4 %
Restructuring Charges - Operating Expense
(3,302 )
(0.3 %)
(3,280 )
(0.3 %)
Proposed Merger-related Charges - Operating Expenses
(4,616 )
(0.4 %)
-
0.0 %
Acquisition-related Charges - Operating Expense
(16 )
(0.0 %)
(892 )
(0.1 %)
Adjusted Operating Expenses(1)
$
243,672
21.3 %
$
241,383
21.0 %
EBIT
$
170,238
14.9 %
$
165,658
14.4 %
Restructuring Charges - Total
5,245
0.5 %
4,599
0.4 %
Proposed Merger-related Charges - Total
4,616
0.4 %
-
0.0 %
Acquisition-related Charges - Total
16
0.0 %
3,844
0.3 %
Impairment of Certain Long-lived Assets - Total
5,867
0.5 %
-
0.0 %
Gain on Sale of Certain Assets - Total
-
0.0 %
-
0.0 %
Adjusted EBIT(1)
$
185,982
16.3 %
$
174,101
15.2 %
(1) The data in this schedule has been individually rounded
and therefore may not sum.
THE VALSPAR CORPORATION
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED)
For the Nine Months Ended July 29, 2016 and July 31, 2015
(Dollars in thousands, except per share amounts)
Nine Months Ended
Nine Months Ended
July 29, 2016
July 31, 2015
Dollars
% of Net Sales
Dollars
% of Net Sales
Coatings Segment
EBIT
$
335,252
19.0 %
$
360,942
19.4 %
Restructuring Charges - Cost of Sales
94
0.0 %
3,776
0.2 %
Restructuring Charges - Operating Expense
1,062
0.1 %
3,733
0.2 %
Acquisition-related Charges - Operating Expense
926
0.1 %
-
0.0 %
Gain on Sale of Certain Assets
-
0.0 %
(48,001 )
(2.6 %)
Adjusted EBIT(1)
$
337,334
19.1 %
$
320,450
17.2 %
Paints Segment
EBIT
$
105,494
9.2 %
$
117,797
9.7 %
Restructuring Charges - Cost of Sales
7,210
0.6 %
3,622
0.3 %
Acquisition-related Charges - Cost of Sales
-
0.0 %
2,952
0.2 %
Impairment of Certain Long-lived Assets - Cost of Sales
5,867
0.5 %
-
0.0 %
Restructuring Charges - Operating Expense
5,932
0.5 %
2,270
0.2 %
Acquisition-related Charges - Operating Expense
215
0.0 %
892
0.1 %
Adjusted EBIT(1)
$
124,718
10.9 %
$
127,533
10.5 %
Other and Administrative
EBIT
$
(47,241 )
(26.4 %)
$
(545 )
(0.3 %)
Restructuring Charges - Operating Expense
1,714
1.0 %
(9 )
(0.0 %)
Proposed Merger-related Charges - Operating Expenses
22,856
12.8 %
-
0.0 %
Adjusted EBIT(1)
$
(22,671 )
(12.7 %)
$
(554 )
(0.3 %)
Total
Gross Profit
$
1,142,015
37.0 %
$
1,137,778
35.1 %
Restructuring Charges - Cost of Sales
7,304
0.2 %
7,398
0.2 %
Acquisition-related Charges - Cost of Sales
-
0.0 %
2,952
0.1 %
Impairment of Certain Long-lived Assets - Cost of Sales
5,867
0.2 %
-
0.0 %
Adjusted Gross Profit(1)
$
1,155,186
37.5 %
$
1,148,128
35.4 %
Operating Expenses
$
747,041
24.2 %
$
706,786
21.8 %
Restructuring Charges - Operating Expense
(8,708 )
(0.3 %)
(5,994 )
(0.2 %)
Proposed Merger-related Charges - Operating Expenses
(22,856 )
(0.7 %)
-
0.0 %
Acquisition-related Charges - Operating Expense
(1,141 )
(0.0 %)
(892 )
(0.0 %)
Adjusted Operating Expenses(1)
$
714,336
23.2 %
$
699,900
21.6 %
EBIT
$
393,505
12.8 %
$
478,194
14.7 %
Restructuring Charges - Total
16,012
0.5 %
13,392
0.4 %
Proposed Merger-related Charges - Total
22,856
0.7 %
-
0.0 %
Acquisition-related Charges - Total
1,141
0.0 %
3,844
0.1 %
Impairment of Certain Long-lived Assets - Total
5,867
0.2 %
-
0.0 %
Gain on Sale of Certain Assets - Total
-
0.0 %
(48,001 )
(1.5 %)
Adjusted EBIT(1)
$
439,381
14.2 %
$
447,429
13.8 %
(1) The data in this schedule has been individually rounded
and therefore may not sum.
THE VALSPAR CORPORATION
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED)
For the Three and Nine Months Ended July 29, 2016 and July 31, 2015
(Dollars in thousands, except per share amounts)
Three Months Ended
Nine Months Ended
July 29, 2016
July 31, 2015
July 29, 2016
July 31, 2015
Net Income
$
116,988
$
102,862
$
249,446
$
297,150
Restructuring Charges - Total(1)
5,245
4,599
16,012
13,392
Proposed Merger-related Charges - Total(2)
4,616
-
22,856
-
Acquisition-related Charges - Total(3)
16
3,844
1,141
3,844
Impairment of Certain Long-lived Assets - Total(4)
5,867
-
5,867
-
Gain on Sale of Certain Assets - Total(5)
-
-
-
(48,001 )
Total Pre-tax Adjustments
$
15,744
$
8,443
$
45,876
$
(30,765 )
Income Taxes Impact - Total(6)
(5,414 )
(2,529 )
(16,500 )
5,430
Adjusted Net Income
$
127,318
$
108,776
$
278,822
$
271,815
Average Number of Shares O/S - diluted
81,185,695
81,999,701
80,904,905
82,910,996
Adjusted Net Income per Common Share - diluted
$
1.57
$
1.33
$
3.45
$
3.28
(1) Represents severance and employee benefits,
asset-related charges and exit costs related to restructuring
activities.
(2) Represents costs incurred related to the pending merger
with The Sherwin-Williams Company including employee-related
expenses, professional services and regulatory fees.
(3) Represents professional fees and acquisition-related
charges associated with other acquisition-related activity.
(4) Represents impairment of a certain asset group in our
Consumer Paints product line.
(5) Represents gain on sale of a non-strategic specialty
product offering in our Coatings segment.
(6) Represents the tax effect of restructuring charges,
proposed merger-related charges, acquisition-related charges,
impairment of certain long-lived assets and gain on sale of
certain assets calculated using the effective tax rate of the
jurisdiction in which the charges were incurred.

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SOURCE: Valspar

Valspar
Investor Contact:
Bill Seymour, 612-656-1328
william.seymour@valspar.com
or
Media Contact:
Kimberly A. Welch, 612-656-1347
kim.welch@valspar.com