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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-Q
(Mark One)
Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the Period Ended September 30, 2020
or
Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the transition period from              to             
Commission file number 1-04851
THE SHERWIN-WILLIAMS COMPANY
(Exact name of registrant as specified in its charter)
Ohio34-0526850
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)
101 West Prospect Avenue 
Cleveland,Ohio44115-1075
(Address of principal executive offices)(Zip Code)
(216) 566-2000
(Registrant’s telephone number including area code)
Title of each classTrading SymbolName of exchange on which registered
Common Stock, par value of $1.00 per shareSHWNew York Stock Exchange

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

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filerAccelerated filer
Non-accelerated filerSmaller reporting company
Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.   

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practical date.

Common Stock, $1.00 Par Value – 90,824,506 shares as of September 30, 2020.



TABLE OF CONTENTS
 








PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
THE SHERWIN-WILLIAMS COMPANY AND SUBSIDIARIES
STATEMENTS OF CONSOLIDATED INCOME (UNAUDITED)
(millions of dollars, except share and per share data)
 
Three Months Ended
September 30,
Nine Months Ended
September 30,
 2020201920202019
Net sales$5,122.2 $4,867.7 $13,872.9 $13,786.4 
Cost of goods sold2,666.9 2,642.1 7,319.0 7,644.3 
Gross profit2,455.3 2,225.6 6,553.9 6,142.1 
Percent to net sales47.9 %45.7 %47.2 %44.6 %
Selling, general and administrative expenses1,406.8 1,345.2 4,005.7 3,920.5 
Percent to net sales27.5 %27.6 %28.9 %28.4 %
Other general expense - net10.5 12.0 13.1 18.7 
Amortization 78.7 77.5 234.2 234.4 
Interest expense83.3 85.3 257.6 265.5 
Interest and net investment income(1.4)(0.6)(2.6)(1.6)
California litigation expense (34.7) (34.7)
Other expense - net1.8 31.1 30.6 54.9 
Income before income taxes875.6 709.8 2,015.3 1,684.4 
Income taxes 169.8 133.3 391.9 391.7 
Net income$705.8 $576.5 $1,623.4 $1,292.7 
Net income per common share:
Basic$7.80 $6.28 $17.90 $14.07 
Diluted$7.66 $6.16 $17.60 $13.82 
Weighted average shares outstanding:
Basic90,537,314 91,823,573 90,694,317 91,850,565 
Diluted92,110,229 93,604,260 92,257,788 93,510,104 

See notes to condensed consolidated financial statements.
2


THE SHERWIN-WILLIAMS COMPANY AND SUBSIDIARIES
STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME (UNAUDITED)
(millions of dollars)Three Months EndedNine Months Ended
September 30,September 30,
2020201920202019
Net income$705.8 $576.5 $1,623.4 $1,292.7 
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments (1)
75.2 (131.9)(109.1)(120.6)
Pension and other postretirement benefit adjustments:
Amounts reclassified from Other comprehensive income (loss) (2)
0.6 (0.4)1.9 (1.1)
0.6 (0.4)1.9 (1.1)
Unrealized net gains on cash flow hedges:
Amounts reclassified from Other comprehensive income (loss) (3)
(0.9)(4.0)(5.6)(7.2)
(0.9)(4.0)(5.6)(7.2)
Other comprehensive income (loss) 74.9 (136.3)(112.8)(128.9)
Comprehensive income$780.7 $440.2 $1,510.6 $1,163.8 
(1)    The three months ended September 30, 2020 includes unrealized losses of $(26.3) million, net of taxes of $8.7 million, related to net investment hedges. The three months ended September 30, 2019 includes unrealized gains of $13.9 million, net of taxes of $(4.6) million, related to net investment hedges. The nine months ended September 30, 2020 includes unrealized losses of $(26.4) million, net of taxes of $8.7 million, related to net investment hedges. The nine months ended September 30, 2019 includes unrealized gains of $8.9 million, net of taxes of $(2.9) million, related to net investment hedges. See Note 12 for additional information.
(2)    Net of taxes of $(0.2) million and $0.2 million in the three months ended September 30, 2020 and 2019, respectively. Net of taxes of $(0.5) million and $0.5 million in the nine months ended September 30, 2020 and 2019, respectively.
(3)    Net of taxes of $0.4 million and $1.7 million in the three months ended September 30, 2020 and 2019, respectively. Net of taxes of $1.8 million and $2.6 million in the nine months ended September 30, 2020 and 2019, respectively.




See notes to condensed consolidated financial statements.

3


THE SHERWIN-WILLIAMS COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(millions of dollars, except per share data)September 30,
2020
December 31,
2019
September 30,
2019
Assets
Current assets:
Cash and cash equivalents$619.9 $161.8 $189.6 
Accounts receivable, net2,454.5 2,088.9 2,479.0 
Inventories1,672.8 1,889.6 1,825.0 
Other current assets428.4 491.4 414.1 
Total current assets5,175.6 4,631.7 4,907.7 
Property, plant and equipment, net1,780.0 1,835.2 1,798.3 
Goodwill7,005.6 7,004.8 6,958.7 
Intangible assets4,498.7 4,734.5 4,889.3 
Operating lease right-of-use assets1,738.6 1,685.6 1,659.0 
Other assets611.2 604.4 651.3 
Total assets$20,809.7 $20,496.2 $20,864.3 
Liabilities and Shareholders’ Equity
Current liabilities:
Short-term borrowings$0.2 $204.7 $435.7 
Accounts payable2,056.2 1,876.3 2,028.4 
Compensation and taxes withheld654.5 552.7 538.9 
Accrued taxes165.2 85.7 95.0 
Current portion of long-term debt24.1 429.8 429.6 
California litigation accrual12.0 12.0 12.0 
Current portion of operating lease liabilities379.5 371.6 364.4 
Other accruals1,066.6 989.1 961.8 
Total current liabilities4,358.3 4,521.9 4,865.8 
Long-term debt8,266.9 8,050.7 8,043.0 
Postretirement benefits other than pensions262.3 263.0 261.0 
Deferred income taxes956.7 969.9 1,096.9 
Long-term operating lease liabilities1,421.3 1,370.7 1,352.2 
Other long-term liabilities1,336.9 1,196.7 1,222.5 
Shareholders’ equity:
  Common stock—$1.00 par value:
90.8 million, 92.1 million and 92.3 million shares outstanding
at September 30, 2020, December 31, 2019 and September 30, 2019, respectively
120.4 119.4 119.2 
Other capital3,373.3 3,153.0 3,079.3 
Retained earnings8,619.5 7,366.9 7,224.3 
Treasury stock, at cost(7,113.6)(5,836.5)(5,632.8)
Accumulated other comprehensive loss(792.3)(679.5)(767.1)
Total shareholders' equity4,207.3 4,123.3 4,022.9 
Total liabilities and shareholders’ equity$20,809.7 $20,496.2 $20,864.3 


See notes to condensed consolidated financial statements.
4


THE SHERWIN-WILLIAMS COMPANY AND SUBSIDIARIES
CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS (UNAUDITED)
(millions of dollars)Nine Months Ended
 September 30,
2020
September 30,
2019
OPERATING ACTIVITIES
Net income$1,623.4 $1,292.7 
Adjustments to reconcile net income to net operating cash:
Depreciation200.0 195.0 
Non-cash lease expense276.1 275.7 
Amortization of intangible assets234.2 234.4 
Loss on extinguishment of debt21.3 14.8 
Amortization of credit facility and debt issuance costs5.5 7.3 
Stock-based compensation expense72.9 70.9 
Provisions for environmental-related matters20.8 17.9 
Defined benefit pension plans net cost5.8 40.4 
Deferred income taxes2.1 (43.4)
Other(4.0)(16.9)
Change in working capital accounts - net312.2 (259.6)
Change in operating lease liabilities(270.6)(272.3)
Costs incurred for environmental-related matters(24.2)(20.0)
Other88.3 124.5 
Net operating cash2,563.8 1,661.4 
INVESTING ACTIVITIES
Capital expenditures(193.8)(224.8)
Acquisitions of businesses, net of cash acquired (72.6)
Proceeds from sale of assets38.8 6.9 
(Increase) decrease in other investments(21.6)2.0 
Net investing cash(176.6)(288.5)
FINANCING ACTIVITIES
Net (decrease) increase in short-term borrowings(204.5)109.0 
Proceeds from long-term debt999.0 1,332.8 
Payments of long-term debt(1,204.7)(1,875.7)
Payments for credit facility and debt issuance costs(10.0)(13.0)
Payments of cash dividends(367.8)(314.9)
Proceeds from stock options exercised135.7 111.2 
Treasury stock purchased(1,294.7)(577.8)
Proceeds from treasury stock issued57.4  
Other(26.6)(113.3)
Net financing cash(1,916.2)(1,341.7)
Effect of exchange rate changes on cash(12.9)2.9 
Net increase in cash and cash equivalents458.1 34.1 
Cash and cash equivalents at beginning of year161.8 155.5 
Cash and cash equivalents at end of period$619.9 $189.6 
Income taxes paid$300.9 $310.1 
Interest paid243.0 246.8 

See notes to condensed consolidated financial statements.
5


THE SHERWIN-WILLIAMS COMPANY AND SUBSIDIARIES
STATEMENTS OF CONSOLIDATED SHAREHOLDERS' EQUITY (UNAUDITED)
(millions of dollars, except per share data)Common
Stock
Other
Capital
Retained EarningsTreasury
Stock
Accumulated Other Comprehensive LossTotal
Balance at December 31, 2019$119.4 $3,153.0 $7,366.9 $(5,836.5)$(679.5)$4,123.3 
Net income321.7 321.7 
Other comprehensive loss(221.6)(221.6)
Adjustment to initially adopt
ASU 2016-13
(3.0)(3.0)
Treasury stock purchased(890.3)(890.3)
Treasury stock issued
13.543.957.4 
Stock-based compensation activity0.3 48.7 (24.8)24.2 
Other adjustments0.3 0.3 
Cash dividends -- $1.34 per share
(122.9)(122.9)
Balance at March 31, 2020$119.7 $3,215.5 $7,562.7 $(6,707.7)$(901.1)$3,289.1 
Net income595.9 595.9 
Other comprehensive income33.9 33.9 
Stock-based compensation activity0.3 73.3 (0.3)73.3 
Other adjustments0.3 0.1 0.4 
Cash dividends -- $1.34 per share
(122.7)(122.7)
Balance at June 30, 2020$120.0 $3,289.1 $8,036.0 $(6,708.0)$(867.2)$3,869.9 
Net income705.8 705.8 
Other comprehensive loss74.9 74.9 
Treasury stock purchased(404.4)(404.4)
Stock-based compensation activity0.4 84.5 (1.2)83.7 
Other adjustments(0.3)(0.1)(0.4)
Cash dividends -- $1.34 per share
(122.2)(122.2)
Balance at September 30, 2020$120.4 $3,373.3 $8,619.5 $(7,113.6)$(792.3)$4,207.3 




See notes to condensed consolidated financial statements.

6


THE SHERWIN-WILLIAMS COMPANY AND SUBSIDIARIES
STATEMENTS OF CONSOLIDATED SHAREHOLDERS' EQUITY (UNAUDITED)
(millions of dollars, except per share data)Common
Stock
Other
Capital
Retained EarningsTreasury
Stock
Accumulated Other Comprehensive LossTotal
Balance at December 31, 2018$118.4 $2,896.4 $6,246.5 $(4,900.7)$(629.9)$3,730.7 
Net income245.2 245.2 
Other comprehensive income6.0 6.0 
Adjustment to initially adopt
ASU 2016-02
(8.4)(8.4)
Adjustment to initially adopt
ASU 2018-02
8.3 (8.3)— 
Treasury stock purchased(305.1)(305.1)
Treasury stock transferred to
qualified replacement plan
(131.8)(131.8)
Stock-based compensation activity0.3 47.6  (21.3)26.6 
Other adjustments1.6 0.1 1.7 
Cash dividends -- $1.13 per share
(104.8)(104.8)
Balance at March 31, 2019$118.7 $2,945.6 $6,386.9 $(5,358.9)$(632.2)$3,460.1 
Net income471.0 471.0 
Other comprehensive income1.4 1.4 
Treasury stock purchased(145.4)(145.4)
Stock-based compensation activity0.2 65.0 65.2 
Other adjustments0.1 0.1 0.2 
Cash dividends -- $1.13 per share
(105.0)(105.0)
Balance at June 30, 2019$118.9 $3,010.7 $6,753.0 $(5,504.3)$(630.8)$3,747.5 
Net income576.5 576.5 
Other comprehensive loss(136.3)(136.3)
Treasury stock purchased(127.3)(127.3)
Stock-based compensation activity0.3 68.4 0.1 (1.2)67.6 
Other adjustments0.2 (0.2) — 
Cash dividends -- $1.13 per share
(105.1)(105.1)
Balance at September 30, 2019$119.2 $3,079.3 $7,224.3 $(5,632.8)$(767.1)$4,022.9 


See notes to condensed consolidated financial statements.

7


THE SHERWIN-WILLIAMS COMPANY AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
(millions of dollars, unless otherwise noted)
Periods ended September 30, 2020 and 2019
NOTE 1—BASIS OF PRESENTATION
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (US GAAP) for interim financial information and the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by US GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included.
There have been no significant changes in significant accounting policies since December 31, 2019, except as described in Note 2.
In April 2020, the Financial Accounting Standards Board (FASB) provided guidance on accounting for lease concessions due to the economic effects of the COVID-19 pandemic. In accordance with the guidance, the Company has elected not to evaluate whether certain lessor-provided concessions related to the COVID-19 pandemic were contemplated in the original contract and has elected to treat all COVID-19 related concessions as lease modifications in accordance with ASC 842.
Accounting estimates were revised as necessary during the first nine months of 2020 based on new information and changes in facts and circumstances. Certain amounts in the 2019 condensed consolidated financial statements have been reclassified to conform to the 2020 presentation.
The Company primarily uses the last-in, first-out (LIFO) method of valuing inventory. An actual valuation of inventory under the LIFO method can be made only at the end of each year based on the inventory levels and costs at that time. Accordingly, interim LIFO calculations are based on management’s estimates of expected year-end inventory levels and costs are subject to the final year-end LIFO inventory valuation. In addition, interim inventory levels include management’s estimates of annual inventory losses due to shrinkage and other factors. For further information on inventory valuations and other matters, refer to the consolidated financial statements and footnotes thereto included in the Company’s Form 10-K for the year ended December 31, 2019.
The Company has historically experienced, and expects to continue to experience, variability in quarterly results. The results of operations for the three and nine months ended September 30, 2020 are not indicative of the results to be expected for the full year as business is seasonal in nature with the majority of Net sales for the Reportable Segments traditionally occurring during the second and third quarters. However, periods of economic downturn can alter the Company's seasonal patterns.
NOTE 2—RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
Effective January 1, 2020, the Company adopted Accounting Standards Update (ASU) 2016-13, “Measurement of Credit Losses on Financial Instruments” (ASC 326). This ASU replaces the incurred loss impairment methodology in current US GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. In addition, new disclosures are required. The Company adopted ASU 2016-13 using the modified retrospective transition method. The adoption of ASU 2016-13 did not result in a material cumulative-effect adjustment to the opening balance of retained earnings at January 1, 2020 and did not have a material impact on the Company's results of operations, financial condition or liquidity. See Note 3 for additional information.
8


NOTE 3REVENUE
The Company manufactures and sells paint, stains, supplies, equipment and floor covering through company-operated stores, branded and private label products through retailers, and a broad range of industrial coatings directly to global manufacturing customers through company-operated branches. A large portion of the Company’s revenue is recognized at a point in time and made to customers who are not engaged in a long-term supply agreement or any form of contract with the Company. These sales are paid for at the time of sale in cash, credit card or on account with the vast majority of customers having terms between 30 and 60 days, not to exceed one year. Many customers who purchase on account take advantage of early payment discounts offered by paying within 30 days of being invoiced. The Company estimates variable consideration for these sales on the basis of both historical information and current trends to estimate the expected amount of discounts to which customers are likely to be entitled.
The remaining revenue is governed by long-term supply agreements and related purchase orders (“contracts”) that specify shipping terms and aspects of the transaction price including rebates, discounts and other sales incentives, such as advertising support. Contracts are at standalone pricing. The performance obligation in these contracts is determined by each of the individual purchase orders and the respective stated quantities, with revenue being recognized at a point in time when obligations under the terms of the agreement are satisfied. This generally occurs with the transfer of control of our products to the customer. Sales, value add, and other taxes we collect concurrent with revenue-producing activities are excluded from revenue.
Refer to Note 17 for the Company's disaggregation of Net sales by reportable segment. As the reportable segments are aligned by similar economic factors, trends and customers, this disaggregation best depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors.
The Company has made payments or credits for rebates or incentives at the beginning of a long-term contract where future revenue is expected and before satisfaction of performance obligations. Under these circumstances, the Company recognizes a contract asset and amortizes these prepayments over the expected benefit life of the long-term contract typically on a straight-line basis.
The majority of variable consideration in the Company’s contracts include a form of volume rebate, discounts, and other incentives, where the customer receives a retrospective percentage rebate based on the amount of their purchases. In these situations, the rebates are accrued as a fixed percentage of sales and recorded as a reduction of net sales until paid to the customer per the terms of the contract. Forms of variable consideration such as tiered rebates, whereby a customer receives a retrospective price decrease dependent on the volume of their purchases, are calculated using a forecasted percentage to determine the most likely amount to accrue. Management creates a baseline calculation using historical sales and then utilizing forecast information, estimates the anticipated sales volume each quarter to calculate the expected reduction to sales. The remainder of the transaction price is fixed as agreed upon with the customer, limiting estimation of revenues including constraints.
The Company’s Accounts receivable and current and long-term contract assets and liabilities are summarized in the following table.
Accounts Receivable, Less AllowanceContract
Assets
(Current)
Contract
Assets
(Long-Term)
Contract Liabilities (Current)Contract Liabilities (Long-Term)
Balance at December 31, 2019$2,088.9 $50.5 $178.2 $242.8 $10.4 
Balance at September 30, 20202,454.5 49.0 177.8 243.9 10.7 
The difference between the opening and closing balances of the Company’s contract assets and contract liabilities primarily results from the timing difference between the Company’s performance and the customer’s payment.
Provisions for estimated returns are established and the expected costs continue to be recognized as contra-revenue per ASC 606 when the products are sold. The Company only offers an assurance type warranty on products sold, and there is no material service to the customer beyond fixing defects that existed at the time of sale and no warranties are sold separately.
Warranty liabilities are excluded from the table above. Amounts recognized during the quarter from deferred revenue were not material. The Company records a right of return liability within each of its operations to accrue for expected customer returns. Historical actual returns are used to estimate future returns as a percentage of current sales. Obligations for returns and refunds were not material individually or in the aggregate.
9


Allowance for Credit Losses
The Company's primary allowance for credit losses is the allowance for doubtful accounts. The allowance for doubtful accounts reduces the Accounts receivable balance to the net amount expected to be collected (estimated net realizable value). The Company reviews the collectibility of the Accounts receivable balance each reporting period and estimates the allowance based on historical bad debt experience, aging of accounts receivable, current creditworthiness of customers, current economic factors, as well as reasonable and supportable forward-looking information. Accounts receivable balances are written-off against the allowance if a final determination of uncollectibility is made. All provisions for allowances for doubtful accounts are included in Selling, general and administrative expenses. During the first nine months of 2020, the Company recognized approximately $21 million of incremental bad debt expense related to the expected impact from the COVID-19 pandemic. See Note 2 for additional information.
The following table summarizes the movement in the Company's allowance for doubtful accounts:
Balance at December 31, 2019$36.5 
Adjustment upon adoption of ASU 2016-133.0 
Bad debt expense63.6 
Uncollectible accounts written off, net of recoveries(26.0)
Balance at September 30, 2020$77.1 

NOTE 4INVENTORIES
Included in Inventories were the following:
September 30,December 31,September 30,
202020192019
Finished goods$1,342.4 $1,509.6 $1,474.9 
Work in process and raw materials330.4 380.0 350.1 
Inventories$1,672.8 $1,889.6 $1,825.0 

NOTE 5GOODWILL, INTANGIBLE AND LONG-LIVED ASSETS
Included in Property, plant and equipment, net were the following:
September 30,December 31,September 30,
202020192019
Land$276.2 $242.1 $239.4 
Buildings1,061.4 1,044.2 1,006.7 
Machinery and equipment2,971.5 2,952.1 2,837.5 
Construction in progress109.6 144.0 179.5 
Property, plant and equipment, gross4,418.7 4,382.4 4,263.1 
Less allowances for depreciation2,638.7 2,547.2 2,464.8 
Property, plant and equipment, net$1,780.0 $1,835.2 $1,798.3 
In accordance with the Goodwill and Other Intangibles Topic of the ASC, goodwill and indefinite-lived intangible assets are tested for impairment annually during the fourth quarter, and interim impairment tests are performed whenever an event occurs or circumstances change that indicate an impairment has more likely than not occurred.
As of September 30, 2020, the Company considered the current and expected future economic and market conditions surrounding the COVID-19 pandemic and its potential impact on each of the reporting units and intangible assets. During this review, management considered the Company's current market capitalization, forecasts for reporting units, as well as the results of the annual 2019 impairment tests performed during the fourth quarter of 2019. The Company determined it was not more likely than not that the goodwill and intangible assets were impaired, and thus, a triggering event had not occurred which would require an interim impairment test to be performed.
10


Although the Company believes its assumptions and estimates of fair value related to reporting units and indefinite-lived trademarks are reasonable, actual financial results could differ from those estimates due to the inherent uncertainty involved in making such estimates. Changes in assumptions concerning future financial results (including sales projections which have a significant impact on the valuation of trademarks under the royalty savings method) or other underlying assumptions could have a significant impact and future impairment charges could be required.
NOTE 6DEBT
In March 2020, the Company issued $500.0 million of 2.30% Senior Notes due May 2030 and $500.0 million of 3.30% Senior Notes due May 2050 (collectively the “New Notes”) in a public offering. The net proceeds from the issuance of the New Notes were used to repurchase a portion of the 2.75% Senior Notes due 2022 and redeem the 2.25% Senior Notes due May 2020. The repurchase of the 2.75% Senior Notes due 2022 during the first quarter of 2020 resulted in a loss of $21.3 million recorded in Other expense - net.
On September 14, 2020, the Company amended its five-year credit agreement entered into on May 6, 2016. The primary purpose of the amendment was to extend the maturity of $75.0 million of the commitments available for borrowing and obtaining the issuance, renewal, extension and increase of a revolving letter of credit from June 20, 2021 to June 20, 2025.
In August 2019, the Company repurchased $1.010 billion of its 2.25% Senior Notes due May 2020 and $490.0 million of its 2.75% Senior Notes due June 2022. These repurchases resulted in a loss of $14.8 million recorded in Other expense - net.
In August 2019, the Company issued $800.0 million of 2.95% Senior Notes due 2029 and $550.0 million of 3.80% Senior Notes due 2049 in a public offering. The net proceeds from the issuance of the Senior Notes were used for general corporate purposes.
In June 2019, the Company repurchased $60.9 million of its 2.25% Senior Notes due May 2020. This repurchase resulted in an insignificant gain.
For further details on the Company’s debt, see Note 7 to the Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019.
11


NOTE 7PENSION, HEALTH CARE AND POSTRETIREMENT BENEFITS OTHER THAN PENSIONS
The following table summarizes the components of the Company’s net periodic benefit cost for domestic defined benefit pension plans, foreign defined benefit pension plans and postretirement benefits other than pensions:
Domestic Defined
Benefit Pension Plans
Foreign Defined
Benefit Pension Plans
Postretirement
Benefits Other than
Pensions
 202020192020201920202019
Three Months Ended September 30:
  Net periodic benefit cost:
Service cost$1.2 $0.7 $1.7 $1.5 $0.3 $0.4 
Interest cost0.8 1.2 1.9 2.5 2.0 2.8 
Expected return on assets(1.6)(1.3)(2.6)(2.8)
Recognition of:
Unrecognized prior service cost (credit)0.3 0.4   (0.3)(1.3)
Unrecognized actuarial loss0.3 0.2 0.5 0.1 
Net periodic benefit cost$0.7 $1.0 $1.3 $1.4 $2.5 $2.0