SHW · 10-Q · 2026Q1 · Full report

Real Estate Financing

SHERWIN WILLIAMS CO · 2026-04-28 · Importance 64 · Surprise 42

The Company entered a sale-leaseback/real estate financing for its new global headquarters (transaction closed December 2022) that did not qualify as an asset sale for US GAAP and thus remains on the balance sheet as property, plant and equipment with a financing liability. The Company received final proceeds of $800 million for the new global headquarters in 2025 and allocates payments between interest and repayment of the financing liability over the life of the agreement. The arrangement includes the construction period and an initial lease term that extends for 30 years thereafter, with options to extend. Proceeds are recognized in Financing Activities and the related assets remain depreciated in PPE.

Key facts