Research Paper on Valspar Corporation 1

Research Paper on Valspar Corporation

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Research Paper on Valspar Corporation 2

TABLE OF CO TE T!
!ECT"O I II TOP"C Company Profile !inancial "tatements i# Income "tatement a# Hori$ontal %nalysis '# Vertical %nalysis ii# )alance "heet a# Hori$ontal %nalysis '# Vertical %nalysis III IV V VI VII VIII ,ey !inancial Ratios Profita'ility Trend .e't//e0era1e 2tili$ation /i3uidity Trend %sset 2tili$ation and 4fficiency Trend !inancial 5utloo6 a# !orecasted Income "tatement '# !orecasted )alance "heet c# !orecasted Ratios I9 9 %ppendi: ;or6s Cited * + 111 12 12 12 1 17 18 1( 1* 22 & ( PA#E

Research Paper on Valspar Corporation

!ECT"O " CO$PA % PROF"LE Valspar Corporation is one of the lar1est manufacturer of paints and coatin1s 'oth in North %merica and 1lo'ally#It has come a lon1 <ay since its inception in 1*-& and has made 3uite a reputation in sterlin1=0arnish> also# %lthou1h for most of its lon1 history Valspar <as a small manufacturer ho<e0er it <as in the last - years or so that it came to the mainsta1e and achie0ed !ortune 1--- status some years 'ac6# !or o0er 2-- years no< Valspar has 'eautified iconic 'uildin1s and ser0ed for reno<ned 'rands Coca?cola@ Caterpillar@ Aohn .eere 'ein1 some of them#

Ori&in o' the Co(pany an) its Transition in the *9th Century +
In 1*-&@ "amuel Tuc6 opened a paint dealership in )oston /ater on in 1*2- t<o

'usinessmen in Cam'ri1e@Bassachuets started the first commercial production of 0arnishes in the 2nited "tates#% decade later in 1*2 these t<o 'usinesses mer1ed to 'ecome Stimson & Valentine althou1h popularly 6no<n as C0arnish manufacturers @ the company <as also acti0e in import and retail trade of paints@ 'ees<a:@ oil etc# %round 1*&- Lawson and Henry Valentine 'ecame sole propreiters of the company and renamed it to Valentine & Compamy ."hortly after that /a<son Valentine hired a chemist named Charles Homer <ho <as one of the 0ery fe< chemists in those times @ he <ent on to ser0e a lot in the follo<in1 years# In 1*(- the 'usiness <as relocated to Ne< Dor6 moreo0er this year also mar6ed the ac3uisition of Minnesota Lineseed Oil Paint Company.Valentine E Company no< started speciali$in1 in vehicle finishing varnishes <hich 1a0e 1ood competition to reno<ned 4n1lish 0arnishes#In 1*(* it entered the Bid<est mar6et throu1h a Chica1o 'ranch office#In 1**2 Henry Valentine 'ecame President of the company and reopened a plant in his nati0e )oston# )y the end of the century the company had esta'lished itself in Pennsly0ania as <ell as Paris#1

Valspar: Our History

Research Paper on Valspar Corporation 7

Early 20th Century+

In 1+- @ /a<son Valentines 1randson L.Valentine Pulsifier Foined the company# Pulsifier had a de1ree in Chemistry from Har0ard# Three years later Pulsifier came for<ard <ith Valspar the first clear 0arnish# Its production 'e1an a couple of years later and for the ne:t couple of decades the company rode on its success <hich <as supported 'y an a11ressi0e ad0ertisin1 campai1n particularly in the 1+2-s#/ater on Valspar <as relaunched <ith its ne< 0ariants for instance Super Valspar, Four-Hour Valspar and some other products such Valenite 4namels <ere also intoduced# In 1+ - @ Valentine E Company ac3uired Con-Ferro Paint, Varnish Company and started operatin1 as a su'sidiary of it# etroit !raphite Company.In 1+ 2 Valspar Corporation <as formed and Valentine E Company

*9,0s an) On-ar)s+

In 1+8*@ Valspar Corp# ac3uired "o#$#ote Paint Company and its head3uarters <ere mo0ed to Roc6ford@Illinois# It <as a definin1 ac3uisition for Valspar Corp# 'ecause Roc6cote had 'een in the paint 'usiness for more than t<o decades and o<ned important and nota'le companies li6e Colour Corporation of %meri#a and Midwest Syntheti#s. The 1+&-s sa< a period of commenda'le 1ro<th for Valspar as it a0era1ed t<o ac3uisitions a year#In 1+(- another historic mer1er <as made <ith Minnesota Paints &n#. @ head3uarters <ere a1ain s<itched to Binneapolis# %s a result of this mer1er <ithin t<o years Valspars earnin1s reached G1#8 B# %c3uisitions continued in the late (-s#

*9.0s an) Early *990s +

In 1+( @ %u1us ;ertele the former president of Binnesota Paints too6 char1e#;uteles succession chan1ed thin1s dramatically for Valspar ele0atin1 its ran6in1 from 1-th to the 8th lar1est coatin1s company in North %merica#

Research Paper on Valspar Corporation 8

%c3uisitons continued <ith some of the nota'le 'ein1 'nterprise Paint Companies in 1+*(@ (he M#Clos$ey Corporation in 1+*+#

$i) 90s an) Beyon)+

In 1++7@ "i#hard "ompala Foined Valspar as its President @ a year later he 'ecame the C45 follo<ed 'y Chairman in 1++*# !rom 1++&?+( Valspar completed the ac3uisition of Coating Unit of (O(%L S.% <hose operations <ere spread throu1h 4urope and Central %sia# In 1++* the company ac3uired %n)ol Pty. Ltd. a su'sidiary of e*ter Corporation@ %n$ol Pty# /td# <as a ma6er of pac6a1in1 and industrial coatin1s and had a stron1 prescence in 4urope <ith re0enues of G 2-* million in1++( in 4urope alone# Valspars consumer 'usiness also 1ot a 'oost in 1++* <ith the ac3uistion of Plasti-+ote Co.&n#. <hich <as a consumer aerosol and speciality paint manufacturer in 'oth 2, and "candini0ia# In !e' 2---@ %n1us ;urtele resi1ned from the )oard after - 1lorious years of ser0ice @ lea0in1 a le1acy of 0ision and dedication# Post millenium ac3uisitons continued as <ell as openin1 of ne< facilities@ Valspar conitnues to 1ro< 1lo'ally# In 2--2@ 28H of sales <ere made of sales outside 2"# "ales of all product lines also further increased in 2-- and as a result of continued focus on safety standards and its impro0ements Valspar <as placed in the elite class of safest manufacturers in 2"# In 2--7@ Valspar achie0ed record re0enues of G2#8 )illion# Rich Rompala retired from Valspar after 1- years of ser0ice# )ill Bansfield succeeded him in 2--8 as President and Chief 4:ecuti0e#

Research Paper on Valspar Corporation &

"4CTI5N II F" A C"AL !TATE$E T!+

"nco(e !tate(ent+
/ori0ontal Analysis+
Consoli)ate) "nco(e !tate(ent2
(figures in millions)

200. @7* Re0enue Cost of "ales #ross Pro'it Operatin& E3penses+ "ellin1@General E %dministrati0e 4:penses Research E .e0elopment costs .epreciation/%mortisation Total Operatin& "nco(e Interest e:pense 5ther income/=e:pense> "nco(e 4e'ore Ta3 Income Ta: et "nco(e A'ter Ta3 2 =2@88> +( ( =8* -> =+ (> =(# +> =&*7# +> 2+2# 1 =8 *> =&# +> 22(# 2 =((# +> 17+#

2001 @27 + =2@2( (> +( 2 =8& &> =+ -> =8# +> =&&1# +> 1-# 1 =& 2> 11# + 2&-# =*(# (> 1(2#

2 Chan&e (#2H 1-H -#8H

2#8H (#*H #+H #8H ?8#*H ?&#8H ?18*H ?12#&H ?11#1H ?1 #7H

Valspar Corp- Income Statement MSN Money

Research Paper on Valspar Corporation (

Re0enue has seen a little increase prior to last year similarly Cost of sales ha0e also increased a little 'it indicatin1 o0erall increase in 'usiness acti0ity 'ut said that Gross Profit hasnt increased#5peratin1 e:penses ha0e also increased 'ut only to a little e:tent ho<e0er .epreciation has increased considera'ly resultin1 in 5perain1 income to fall in 2--* 'esides increased 'usiness acti0ity# Interest e:pense reduced in 2--* ho<e0er other e:penses ha0e 'een incurred this year <hich <as an income fi1ure last year#Income ta: also sa< a reduction in this year# Net income reduced this year# Vertical Analysis+
Consoli)ate) "nco(e !tate(ent (figures in millions) 200. Re0enue Cost of "ales #ross Pro'it Operatin& E3penses+ "ellin1@General E %dministrati0e 4:penses Research E .e0elopment costs .epreciation/%mortisation Total Operatin& "nco(e Interest e:pense 5ther income/=e:pense> "nco(e 4e'ore Ta3 Income Ta: et "nco(e A'ter Ta3 @7* 2 2@88 +( ( 8* + ( (# + &*7# + 2+2# 1 8 * &# + 22(# 2 ((# + 17+# -#2H 1+#(H *#7H 1#(H -#2H &#8H 2#2H 7# H 2#*H 8# + &&1# + 1-# 1 & 2 11# + 2&-# *(# ( 1(2# -#2H 2-#7H +#8H 1#+H -#7H *#-H 2#(H 8# H 1&#(H & + 2#*H 1--#-H (1#+H 2*#1H 2001 @27 + 2@2( ( +( 2 8& 1(#7H 1--H (-#1H 2+#+H 2005 2@+(*# 2@-(2# +-&# 811# * # 8# 8++# -(# 7&# # * 28(# 2 *2#2 1(8# 1--H &+#&H -#7H -#-H 1(#2H 2#*H -#2H 2-#1H 1-# H 1#8H -#1H *#&H 2#*H 8#+H

Research Paper on Valspar Corporation *

Balance !heet+
/ori0ontal Analysis+ % summarised hori$ontal analysis has 'een 1i0en 'elo< for further reference please see detailed hori$ontal analysis of 'alance sheet in %ppendi: %# Consoli)ate) Balance !heet as at 6*st Octo4er7 200.6 (figures in millions of $) 2--* 1@-7&#8 Total Current %ssets 2@7( #2 Total /on1?term %ssets Total Assets @81+#(
Total Current /ia'ilities Total /on1?term /ia'ilities

2--( 1@-2+#( 2@722# @782 1@-2*#+ 1@--7#( 2@- #& 1@71(# @78-#+

Chan1e 1#&H 2#1H 2H ?17#7H 17#*H ? 7#+H 2H

**-# 1@18 #2 2@- #8 1@7*&#7 @81+#+

Total /ia'ilities Total 43uity Total Lia4ilities an) !harehol)er8s E9uity

Current assets ha0e increased only sli1htly this year as a result of reduction in in0entory le0els <hich is a <ise mo0e 'ecause in0entroy le0els should 'e 6ept to a minimum and an increase in other current assets <hich is intended to impro0e o0erall li3uidity#"imilarly lon1?term assets ha0e seen a little increase this year 'esides reduction in property@ plant and e3uipment and other lon1?term assets 'ut intan1i'le assets ha0e increased# Current lia'ilities ha0e 'een considera'ly reduced# 5n the <hole assets and lia'ilities ha0e 'een some<hat the same as last year#

Valspar Corp Balance Sheet MSN Money

Research Paper on Valspar Corporation +

Vertical Analysis+ % summarised 0ertical analysis has 'een 1i0en 'elo< ho<e0er for further reference please see detailed 0ertical analysis in %ppendi: )#
Consoli)ate) Balance !heet (figures in millions)

200. Total Current %ssets 1@-7& 2+#(H

2001 1@-2+#( 2+#*H +&*#2

2005 -# H

Total /on1?term %ssets Total Assets

2@7( @82-

(-# H 1--H

2@722# @782#-

(-#2H 1--#-H

2@22 #2 @1+1#7

&+#(H 1--#-H

Total Current /ia'ilities Total /on1?term /ia'ilities Total /ia'ilities

**1@18 2@- 7

28#-H 2#*H 8(#*H

1@-2*#+ 1@--8 2@- 7

2+#*H 2+#1H 8*#+H

1@1+&#2 ( & 1@+ 2

(#8H 2 #1H &-#8H

Total 43uity

1@7*&

72#2H

1@71(#

71#1H

1@28*#8

+#7H

Total Lia4ilities an) !harehol)er8s E9uity

@82-

1--#-H

@78-#+

1--H

@1+-#&

1--H

Research Paper on Valspar Corporation 1-

!ECT"O """ :E% RAT"O CALC;LAT"O +

Valspar Corp< Pro'ita4ility Gross Profit Bar1in Net Profit Bar1in Return on 43uity Return on %ssets Li9ui)ity Current Ratio Iuic6 Ratio >e4t?Le=era&e Interest Co0er /e0era1e Ratio .e't/43uity Ratio E''iciency Recei0a'le Turno0er In0entory Turno0er %sset Turno0er &# *#+ 1 (#1 (#2 -#+ 8#1 2#7 -#&2 1(#2 2#2 -#( 1#2 -#+ 2#2 1# 2*#1H 7# H +#*H 7# H 2*# H &#*H 12H &#8H "n)ustry a=era&e4

Gross profit mar1in is almost same as the industry a0era1e althou1h it should had 'een 'etter 6eepin1 in mind its hu1e reputation and access to mar6ets <orld<ide#Net profit mar1in is 'elo< industry a0era1e <hich indicates that Valspar hasnt 'een a'le to mana1e operatin1 e:penses <ith the increase in 'usiness acti0ity resultin1 in a decrease in profits instead#"imilarly Return on 43uity and Return on %ssets are also 'elo< industry a0era1e <hich sho<s that Valspar is 1i0in1 'elo< a0era1e return on its in0estments# /i3uidity for Valspar is 'elo< the industry norm and is an area of concern 'ecause deterioratin1 li3uidity can ruin a 'usiness e0en if it is ma6in1 profits#!or ar1ument sa6e

Valspar Corp !ey "atios MSN Money

Research Paper on Valspar Corporation 11

thou1h Current ratio is considera'ly 'elo< industry 'esides Iuic6 ratio <hich is a little 'elo< industry a0era1e# %lthou1h Valspar is not hi1hly 1eared 'ut for any future 'orro<in1s thin1s are not 0ery fa0oura'le either#Interest co0er for Valspar is much 'elo< industry a0era1e said that it seems enou1h to co0er current commitments 'ut doesnt encoura1e additional financin1# .e't/43uity and /e0era1e ratio on the other hand are almost the same as industry a0era1es# Tal6in1 of efficiency Valspar has performed 'etter than industry for instance In0entory turno0er is much 1reater than industry a0era1e <hich sho<s that Valspar is 6eepin1 optimum le0els of in0entory#"imilarly %sset turno0er is sli1htly 'etter than industry norm 'ut Recei0a'les turno0er is 'elo< industry a0era1e <hic indicates that Valspar should lo<er le0els of recei0a'les#

!ECT"O "V PROF"TAB"L"T% TRE >+

2--* Gross Profit Bar1in Net Profit Bar1in Return on 43uity Return on %ssets 2*#1H 7# H +#*H 7# H

2--( -H 8# H 12H 8H

2--& -#7H 8#+H 1 #*H 8#8H

)oth Gross mar1in and Net Bar1in has reduced for Valspar o0er the years and if this continues thin1s dont seem 1ood for Valspar# Boreo0er Return on assets and e3uity has also reduced o0er the years and this doesnt send a 1ood si1nal to in0estors/shareholders <ho later on may 'ecome disheartened and pull out their in0estment alto1ether#

Research Paper on Valspar Corporation 12

!ECT"O V >EBT?LEVERA#E ;T"L"@AT"O +

2--* 8#1 2#7 -#&2 2--( 8 -#87 2--& &#( -#7

Interest Co0er /e0era1e Ratio .e't/43uity Ratio

Valspar has someho< mana1ed to maintain interest co0er 'ut in 2--( interest co0er sa< a fall of more than -H# .e't/43uity ratio <hich has 'een much 'etter than the industry a0era1e o0er the years has seen a consistent increase o0er the years and althou1h Valspar is not hi1hly 1eared 'ut still an eye should 'e 6ept on 1earin1 le0els#

!ECT"O V" L"A;">"T% TRE >+

2--* 1#2 -#+ 2--( 1 -#(2 2--& -#* -#8(

Current Ratio Iuic6 Ratio

Valspar has ta6en steps to impro0e its li3uidity o0er the years as can 'e seen#%lthou1h its li3uidity is still 'elo< industry a0era1e 'ut if this increase continues in follo<in1 years Valspar <ill reach an ade3uate li3uidity position#

!ECT"O V"" A!!ET ;T"L"@AT"O A > EFF"C"E C% TRE >+

2--* &# *#+ 1 2--( & (#* -#+7 2--& &#2& (# 8 -#+

Recei0a'le Turno0er In0entory Turno0er %sset Turno0er

Valspar has impro0ed its efficiency o0er the years and is commenda'le the least#In0entory turno0er has considera'ly increased this year# %lthou1h recei0a'les turno0er sa< a drop last year 'ut Valspar did <ell to impro0e it this year#

Research Paper on Valspar Corporation 1

!ECT"O V""" F" A C"AL O;TLOO: + The <orld economy is in a <orse economic crisis since the Great .epression if not 1reater than that and many analysts say that this is Fust the 'e1innin1 @ 2--+ <ill see the <rath of it and thin1s are not e:pected to re?1roup 'efore mid 2-1-#8 2" has seen a si1nficant economic meltdo<n <ith many industries see6in1 financial 'ailouts to sa0e their 0ery e:istence @ and 'i1 names fallin1 apart for instance Citi,roup@ Ford Motors to name a fe<# Valspar has o0er the years di0esified itself in the 1lo'al mar6et considera'ly and said that has 'een a'le to ma6e profits 'esides the economic crisis# In 2--+ Valspar foresees that its re0enues in product lines ser0in1 54B industrial mar6ets <hich are a'out 7- percent of the company@ <ill come under increasin1 pressure # Ho<e0er@ they e:pect that a 'alance <ould 'e someho< made throu1h re0enue from other product lines <hich represents a'out &- percent of the companys re0enues and include Pac6a1in1 product line and Paints se1ment@ <hich are e:pected to perform <ell since it has 'een consistent performer 'oth in the 2" and 1lo'ally# Valspars Huarun operations in China are focused on the domestic Chinese mar6et ha0e 'een performin1 <ell and are hoped to do so in 2--+# Valspar intends to continue to in0estin1 in their 'randin1 platforms in 2--+ <hich <ill further stren1then its mar6et position# This lon1?term strate1y <ill 1enerate stron1 and more consistent returns to shareholders&#

$lo%al &conomic Outloo' (nite) Nations Valspar +nnual "eport 2,,-

Research Paper on Valspar Corporation 17

Forecaste) "nco(e !tate(ent+ % forecast income statement for 2--+ has 'een presented 'elo<#Hori$ontal and 0ertical analysis and prior year 1ro<th patterns ha0e 'een used in preparin1 the forecast# Consoli)ate) "nco(e !tate(ent BForecastC 'or year en)e) 2009< (figures in millions of $)

Re0enue 1 Cost of "ales 2 Gross Profit 5peratin1 e:penses 5peratin1 income Interest e:pense 7 Income 'efore Ta: Income Ta: 8 Income after Ta:

@(-* =2@(& > +78 =(2&> 21+ =8+> 1&=+ > &*

1# 2#

"ales ha0e 1ro<n (#2H o0er last year ho<e0er a0era1e 1ro<th rate for last fi0e years is +#18 H# "ince the <orld economy is still in depression sales <ill 1ro< 'ut at a deteriorated rate# Cost of "ales ha0e 1ro<n 1-H from last year moreo0er they represented (-H of re0enue=as per 0ertical analysis ># 5peratin1 e:penses ha0e increased #8H o0er last years moreo0er it has represented some<hat 2-H o0er the last years = as per 0ertical analysis ># Interest e:pense decreased this year and it represents some<hat 1#( H of re0enue =as per 0ertical analysis> on an a0era1e #

7#

8#

Income Ta: o0er the years has 'een 2#8H of re0enue on an a0era1e= as per 0ertical analysis> #

Research Paper on Valspar Corporation 18

Forecaste) Balance !heet+ % forecast 'alance sheet has 'een presented 'elo<# Hori$ontal and 0ertical analysis and prior year data has 'een used in preparin1 the forecast# Consoli)ate) 4alance sheet B'orecastC as at 6*st Octo4er 2009< (figures in millions of $) A!!ET! Cash 1 Recei0a'les 2 In0entory 5ther current assets 7 Total current assets Property@ palnt and e3uipment?net 8 Intan1i'les & 5ther /on1?term assets ( Total Lon&Dter( Assets Total Assets L"AB"L"T"E! %ccounts Paya'le * %ccrued 4:penses + "hort?tern notes paya'le 15ther lia'ilities Total Current Lia4ilities /on1?term .e't 11 5ther lia'ilities Total Lon&Dter( Lia4ilities Total Lia4ilities EA;"T% Retained 4arnin1s 12 5ther 43uity Total E9uity

+2#78 8(7#8 2&+#8 11& *0,2<4, 7+2 2-1(#8 1-#78 2,*9<9, 6,12<4 71+#8 2*2 12*#& 87#8 ..4<5 (88 7-(#8 **52<, 2041<* 12-2 2&*452

Research Paper on Valspar Corporation 1& Total !harehol)ers an) E9uity

6,09<*

1#
2# #

Cash has increased 'y & H o0er last year and an increase is e:pected in 2--+ 'ut only a'out H# Recei0a'les ha0e increased 'y 8 H o0er last year moreo0er they represent 18#8H of total assets on a0era1e@ recei0a'les are e:pected to remain same <ith only a small increase# In0entory le0els reduced this year and they represent some<hat *H of total assets@ in0entory le0els are e:pected to remain <ith smaller reduction in 2--+#

7# 8#

5ther current assets ha0e increased 'y 7H o0er last year and they represent H of total assets ho<e0er they are e:pected to decrease in 2--+# Property@ plant and e3uipment has fallen 'y almost 8 H this year and they are 17 H of total assets@ despite the decrease this year they are e:pected to remain same ne:t year since no intentions ha0e 'een made of future disposals or purchases#

&# (#

Intan1i'le assets increased 'y 7#8 H o0er last year and represent half of total assets@ a further 'ut more smaller increase is e:pected ne:t year# 5ther lon1?term assets sa< a reduction of a'o0e 7-H in 2--* and this fi1ure seems to further reduce in 2--+#

*#

%ccounts paya'le increased 'y *H in 2--*@ ho<e0er this increase has 'een more or less consistent o0er the last 8 years or so and accounts paya'le are e:pected to increase in 2--+ <ith the increasin1 'usiness acti0ity# %ccrued e:penses increased 'y +H o0er last year and they are also e:pected to increase in 2--+

+#

1-# "hort?term notes paya'le almost hal0ed this year and is e:pected to remain some<hat same for the follo<in1 year# 11# /on1?term de't <ill remain almost the same in 2--+ since Valspar intends to further impro0e its le0era1e#

12# Retained earnin1s are e:pected to increase only sli1htly in 2--+ and one cant 'e too optimistic in a depression era such as this#

Research Paper on Valspar Corporation 1(

Forecaste) Ratios+ The follo<in1 ratios ha0e 'een calculated usin1 the forecast income statements and 'alance sheets prepared a'o0e#
2009 Pro'ita4ility Gross Profit Bar1in Net Profit Bar1in Return on 43uity Return on %ssets Li9ui)ity Current Ratio Iuic6 Ratio >e4t?Le=era&e Interest Co0er /e0era1e Ratio .e't/43uity Ratio E''iciency Recei0a'le Turno0er In0entory Turno0er %sset Turno0er &#8 1-#28 1#-7 #( 2#& -#* 1#1+ -#** 28#8H 1#*H 7#(H 1#+H

Research Paper on Valspar Corporation 1*

APPE >"CE!ce+ Appen)i3 A+

Consoli)ate) Balance !heet
(figures in millions)

200. Assets
Cash and "hort?term in0estments Recei0a'les In0entory Prepaid 4:penses 5ther current assets Total Current Assets

2001

2 Chan&e

+-#1 8&8 2(1#7 ** 2 1@-7&#8

*8 8 (#+ 2+1#( *+#8 28#& 1@-2+#(

&H 8H ?(H 28H 1#&H

Property@ palnt and e3uipment?net Good<ill?net Intan1i'les?net 5ther /on1?term assets Total Lon&Dter( Assets

7*+#( 1@ 8 &1+#8 11 2@7( #2 @81+#(

817 1@2++ 8+-#( 1*#& 2@722# @782

?7#(H 7#2H 7#+H ?7-#+H 2#1H 2H

Total Assets Lia4ilities an) !harehol)er8s E9uity

Lia4ilities
%ccounts Paya'le %ccrued 4:penses "hort?tern notes paya'le Current portion of Capital leases 5ther lia'ilities

7--#* 2&+#* 18+#8 8-#2

(1#7 27( 2&(#8 1-7

(#+H +#2H ?7-#7H ?1--H 1&#(H

Research Paper on Valspar Corporation 1+

Total Current Lia4ilities /on1?term .e't .eferred Income Ta: 5ther lia'ilities Total Lon&Dter( Lia4ilities

**-# (& 227#* 1&8#7 1@18 #2 2@#8

1@-2*#+ &7+ 2 + 11&#( 1@--7#( 2@#&

?17#7H 1(#&H ?8#+H 71#(H 17#*H ?

Total Lia4ilities E9uity

Redeema'le Preferred "toc6 Common "toc6 %dditional Paid?in Capital Retained 4arnin1s Common Treasury "toc6 5ther 43uity

#& 8+#2 1#1 1@1*=2-(#8> +1@7*&#7

(# 8+#2 12# 1@1-* =1*-#(> *1#2 1@71(#

?1-H ? &H &#8H 17#*H 1-#*H 7#+H

Total E9uity Total Lia4ilities an) !harehol)er8s E9uity

@81+#+

@78-#+

2H

Research Paper on Valspar Corporation 2-

Appen)i3 B+
Consoli)ate) Balance !heet (figures in millions) 2--* 2--( 2--&

Assets Cash and "hort?term in0estments Recei0a'les In0entory Prepaid 4:penses 5ther current assets Total Current Assets + -#1 8 &8 2( 1#7 ** 2 1@-7&#8 (#(H 2#8H -#+H 2+#(H 1#( * +#8 2 8#& 1@-2+#( -#(H 2+#*H 2#7 +&*#2 1#-H -# H 2#&H +-#1 2#*H 1&#1H (#+ 2+ *#8H 2*1#* *#*H 2#&H *8 8 18#&H 7(8#( 17#+H 2#8H **#27 2#*H

Property@ palnt and e3uipment?net Good<ill?net Intan1i'les?net 5ther /on1?term assets Total Lon&Dter( Assets

7* +#( 1@ 8 &1 +#8 11 2@7( #2 1(#&H -# H (-# H -#( *#& 2@722# *#7H ++ 1 #+H 17

8 17#+H 1@2 (#&H 8+ 1(#1H 1 -#8H (-#2H &8#& 2@22 #2 2#1H &+#(H &2 11# H 1 & 71#+H 78+#& 17#7H

Total Assets

@81+#(

1--#-H

@782#-

1--#-H

@1+1#7

1--#-H

Lia4ilities an) !harehol)er8s E9uity

Lia4ilities %ccounts Paya'le %ccrued 4:penses 7--#* 2&+#* 11#7H (#(H (1#7 27( 1-#*H (#2H &* 2*& 11#8H +H

Research Paper on Valspar Corporation 21

"hort?tern notes paya'le Current portion of Capital leases 5ther lia'ilities Total Current Lia4ilities

18+#8

7#8H

2&(#8

(#(H

1 +

7#7H

8-#2 **-#

? 1#7H 28H

1-7 1@-2*#+

2#+H 1#2H 2+#*H

88 #2 1@1+&#2

11H 1#(H (#8H

/on1?term .e't .eferred Income Ta: 5ther lia'ilities Total Lon&Dter( Lia4ilities

(& 227#* 1&8#7 1@18

21#(H &#7H 7#(H 2#*H

&7+ 2 + 11&#( 1@--8

1*#*H &#+H #7H 2+#1H

8-# 1++#* 1*8#* ( &

11H &# H 8#*H 2 #1H

Total Lia4ilities

2@- 7

8(#*H

2@- 7

8*#+H

1@+ 2

&-#8H

E9uity

Redeema'le Preferred "toc6 Common "toc6

#& 8+#2

1H 1#(H

(# 8+#2

1#1H 1#(H

1*#(2 &-#2

-#&H 1#+H

%dditional Paid?in Capital Retained 4arnin1s

1#1 1@1*-

+#7H #8H

12# 1@1-*

+H 2#1H

2& 1--(

1-#2H 1#&H

Common Treasury "toc6 5ther 43uity Total E9uity

=2-(#8> +1@7*&#7

?8#+H 2#&H 72#2H

=1*-#(> *1#2 1@71(#

?8#2H 2#7H 71#1H

?1((#8 27#1 1@28*#8

?8#&H -#*H +#7H

Total Lia4ilities an) !harehol)er8s E9uity

@81+#+

1--H

@78-#+

1--H

@1+-#&

1--H

Research Paper on Valspar Corporation 22

EOR:! C"TE> Valspar Corp# Our Histor =n#d> retrie0ed from JhttpK//<<<#0alspar1lo'al#com/corp/a'out/ourhistory#FspL0alsparM

Valspar Corp# !ncome Statement "##$ =n#d> retrie0ed from

JhttpK//moneycentral#msn#com/in0estor/in0su'/results/statemnt#asp:N"ym'olO2"H %V%/M

Valspar Corp# %alance Sheet "##$ =n#d> retrie0ed from JhttpK//moneycentral#msn#com/in0estor/in0su'/results/statemnt#asp:N "ym'olO2"KV%/Elst"tatementO)alanceEstmtVie<O%nnM Valspar Corp# &e 'atios =n#d#> retrie0ed from JhttpK//moneycentral#msn#com/in0estor/in0su'/results/compare#aspN"ym'olO2"H aV%/M Valspar Corp# (nnual 'eport "##$ =n#d> retrie0ed from JhttpK//in0estors#0alspar#com/phoeni:#$htmlNcO*--*&EpOirol?reports%nnualM 2nited Nations )lo*al +conomic Outloo, "##- =n#d> retrie0ed from JhttpK//<<<#scri'd#com/doc/1-8-788&/2N?2--+?Glo'al?!inancial?5utloo6M