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Sherwin-Williams To Take $77 Mln Charges In Q2 On DC Solar Investment

Sherwin-Williams Co. (SHW) said it will take a charge of about $77 million in the second quarter of 2019 to reflect the entire loss of the investment with DC Solar Solutions and related expected tax benefits. The company has determined that it is more likely than not that the tax benefits expected to be received by the company related to the investments will no longer be ultimately realizable.

The company said it invested in projects that support historic rehabilitation, affordable housing, and renewable energy. During 2011, and 2013 through 2017, the Company invested in federal renewable energy tax credit funds exclusively with DC Solar Solutions Inc. and certain of its affiliates related to mobile solar generators.

In December 2018, the company became aware of an ongoing investigation by federal authorities, which included the seizure of DC Solar's assets. The ompany promptly initiated an investigation, Sherwin-Williams said.

In February 2019, DC Solar filed for Chapter 11 (reorganization) bankruptcy protection, and the company learned of an affidavit from a special agent of the Federal Bureau of Investigation alleging that DC Solar was operating a fraudulent "Ponzi-like scheme" involving mobile solar generators sold to investors. In March 2019, the bankruptcy case was converted to Chapter 7 (liquidation).

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