Table of Contents

 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
 
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of report (Date of earliest event reported) February 14, 2011
 
Masco Corporation
(Exact name of Registrant as Specified in Charter)

Delaware	 	1-5794	 	38-1794485	
 	 	 	 	 	
(State or Other Jurisdiction
of Incorporation)	 	(Commission File Number)	 	(IRS Employer
Identification No.)	

		
21001 Van Born Road, Taylor, Michigan	 	48180	
 	 	 	
(Address of Principal Executive Offices)	 	(Zip Code)	
 		
(313) 274-7400
Registrant’s telephone number, including area code
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
      o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
      o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
      o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
      o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

   

TABLE OF CONTENTS

									
Item 2.02. Results of Operations and Financial Condition	
Item 9.01. Financial Statements and Exhibits	
SIGNATURE	
EXHIBIT INDEX	
EX-99	

Table of Contents

Item 2.02.	 	Results of Operations and Financial Condition.	
     Attached and incorporated herein by reference as Exhibit 99 is a copy of a press release dated February 14, 2011 reporting Masco Corporation’s financial results for the fourth quarter and full-year of 2010 and certain other information and supplemental information prepared for use in connection with the financial results for the fourth quarter and full-year 2010. On February 15, 2011, Masco Corporation will hold an investor conference call and web cast to discuss financial results for the fourth quarter and full-year 2010.
     This information, including the Exhibits attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liabilities of that section.

Item 9.01.	 	Financial Statements and Exhibits.	
     (d) Exhibits.
99 Press Release of Masco Corporation dated February 14, 2011 reporting Masco Corporation’s financial results for the fourth quarter and full-year 2010 and certain other information and supplemental information prepared for use in connection with the financial results for the fourth quarter and full-year 2010.
SIGNATURE
     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
 	 	 	 	 	
 	MASCO CORPORATION
 	 	
 	By:  	/s/ John G. Sznewajs	 	
 	 	Name:  	John G. Sznewajs 	 	
 	 	Title:  	Vice President, Treasurer and
Chief Financial Officer 	 	
 	
February 14, 2011

Table of Contents
EXHIBIT INDEX
99 Press Release of Masco Corporation dated February 14, 2011 reporting Masco Corporation’s financial results for the fourth quarter and full-year 2010 and certain other information and supplemental information prepared for use in connection with the financial results for the fourth quarter and full-year 2010.

					
	 	FOR IMMEDIATE RELEASE	 	Exhibit 99	
Investor / Media Contact
Maria Duey
Vice President — Investor Relations and Communications
313.792.5500
maria_duey@mascohq.com
MASCO CORPORATION REPORTS 2010 RESULTS
      2010 Full-Year Commentary

 	•	 	Sales declined three percent to $7.6 billion.	
 		
 	•	 	Results for key financial measures, as adjusted for certain items (see Exhibit A) and with a normalized tax rate of 36 percent, compared to the full-year of 2009 were as follows:	

 	•	 	Gross profit margins were 26.4 percent compared to 26.5 percent.	
 		
 	•	 	Operating profit margins were 5.7 percent compared to 5.6 percent.	
 		
 	•	 	Income was $.16 per common share compared to $.31 per common share.	

 	•	 	(Loss) from continuing operations, as reported was $(3.00) per common share compared to $(.41) per common share for the full-year of 2009.	
 		
 	•	 	We recorded a valuation allowance related to U.S. deferred tax assets and an impairment charge for goodwill and other intangible assets. These charges reduced our reported earnings by $(2.76) per common share for the full-year and fourth quarter of 2010.	
 		
 	•	 	Working capital as a percent of sales improved to 13.4 percent at December 31, 2010, compared to 14.7 percent at December 31, 2009.	
 		
 	•	 	Free cash flow (cash from operations, less capital expenditures, before dividends) approximated $290 million.	
 		
 	•	 	We ended 2010 with over $1.7 billion of cash.	
Taylor, Mich., (February 14, 2011) — Masco Corporation (NYSE: MAS) today reported that net sales from continuing operations for the year ended December 31, 2010 decreased three percent to $7.6 billion. North American sales decreased three percent and International sales were flat. In local currencies, International sales increased five percent compared with 2009.
Income from continuing operations was $.16 per common share and $.31 per common share for 2010 and 2009, respectively, excluding the items in Exhibit A and with a normalized tax rate of 36 percent. Including these items, loss from continuing operations, as reported was $(3.00) per common share and $(.41) per common share for the years ended December 31, 2010 and 2009, respectively.
“Industry conditions in 2010 continued to be challenging and it was a tough year for Masco. In many ways 2010 was a tale of two halves. We came out of 2009 with good momentum and our sales in the first half of 2010 were up two percent. As the year progressed, the expiration of the home buyer tax credit, increasing commodity costs and the competitive environment made the second half of 2010 much more challenging and our sales were down seven percent compared to second half 2009. Our installation and cabinet businesses, which are tied to new home construction and “big ticket” repair and remodel activity, were particularly hard hit. We are encouraged that in a difficult environment, our full-year adjusted gross margins (26.4 percent) and operating profit (5.7 percent) were essentially flat with 2009 even though sales were down three percent. We accomplished a lot in 2010 as we focused on strengthening our brands and improving our execution. We continued to implement the Masco Business System (MBS) across the enterprise, introduced innovative new products
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including Delta ® Touch 2 0 ® faucets, Arrow ® RED ® line of staplers, and Kilz ® Pro-X™ paint, and enhanced our financial flexibility, ending the year with $1.7 billion of cash,” said Masco’s CEO Tim Wadhams.
We continue to focus on the rationalization of our businesses, including business consolidations, plant closures, headcount reductions, system implementations and other initiatives. During 2010 and 2009, we incurred costs and charges of $208 million pre-tax ($.38 per common share, after tax) and $94 million pre-tax ($.17 per common share, after tax), respectively, related to these initiatives.
In 2010, we recorded non-cash, pre-tax impairment charges for goodwill and other intangible assets and deferred tax assets valuation allowance aggregating $1,092 million ($2.76 per common share, after tax). The impairment charge for goodwill and other intangible assets is primarily related to our Installation and Other Services segment and reflects our expectation that the recovery in new home construction will be modestly slower than previously anticipated. The charge for deferred tax assets valuation allowance reflects accounting guidance that requires a valuation allowance on deferred tax assets because we are in a three-year cumulative loss position, due to U.S. operating losses and the U.S. goodwill impairment charge, that primarily occurred in the fourth quarter of 2010. These losses negated our ability to utilize our previously identified tax planning strategy. During 2009, we recorded a non-cash pre-tax impairment charge for goodwill (in the fourth quarter) of $262 million ($.51 per common share, after tax).
We recently successfully amended our revolving credit facility to reflect the impact of our impairment charges for goodwill and other intangible assets and the valuation allowance for our deferred tax assets on our net worth; we continue to have borrowing capacity of approximately $1 billion available under the revolving credit facility.
Fourth Quarter 2010
2010 Fourth Quarter Commentary

 	•	 	Sales decreased nine percent to $1.7 billion.	
 		
 	•	 	Results for key financial measures, as adjusted for certain items (see Exhibit B) and with a normalized tax rate of 36 percent, compared to the fourth quarter of 2009 were as follows:	

 	•	 	Gross profit margins were 23.2 percent compared to 26.9 percent.	
 		
 	•	 	Operating profit margins were 1.6 percent compared to 4.8 percent.	
 		
 	•	 	(Loss) income was $(.08) per common share compared to $.05 per common share.	

 	•	 	(Loss) income from continuing operations, as reported was $(2.96) per common share compared to $(.49) per common share in the fourth quarter of 2009.	
Fourth quarter 2010 net sales from continuing operations decreased nine percent to $1.7 billion compared with $1.9 billion for the fourth quarter of 2009. North American sales decreased nine percent and International sales decreased seven percent. In local currencies, International sales were flat compared with the fourth quarter of 2009.
(Loss) income from continuing operations was $(.08) per common share and $.05 per common share, for the fourth quarters of 2010 and 2009, respectively, excluding the items in Exhibit B and with a normalized tax rate of 36 percent. Including these items, loss from continuing operations, as reported, was $(2.96) per common share in the fourth quarter of 2010 compared to $(.49) per common share in the fourth quarter of 2009.
During the fourth quarters of 2010 and 2009, we incurred business rationalization costs and charges of $104 million pre-tax ($.19 per common share, after tax; this includes a non-cash, pre-tax charge of $67 million related to a fourth quarter 2010 decision to close a cabinet facility that had previously been idled) and $27 million pre-tax ($.05 per common share, after tax), respectively.
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Outlook 2011
“The trends impacting our business including depressed new home construction, the deferral of “big ticket” repair and remodel activity and commodity cost pressures have continued into early 2011. We expect a challenging business environment, particularly in the first half of 2011; we expect the second half of 2011 to be stronger. The MBS continues to drive positive change across Masco: although we are incurring short-term costs, our Cabinet integration is on plan and we expect will ultimately drive fixed cost reductions and share gains; we have strengthened our brands, our focus on innovation is driving new opportunities and we have added outstanding talent to our leadership teams to enhance the development and execution of our business strategies,” said Tim Wadhams.
“In addition, we recently announced our agreement between Masco Contractor Services and Owens Corning, which we believe will grow sales, create efficiencies in logistics, lower working capital, provide consistent supply and better service for our customers. We are confident about the long-term fundamentals for the new home construction and home improvement markets and we are optimistic about the future. We expect that improvements in our markets and consumer spending together with the changes we are driving across Masco will create significant value for our shareholders and want to thank the Masco Team for their continued dedication to making it all happen,” said Tim Wadhams.
Headquartered in Taylor, Michigan, Masco Corporation is one of the world’s leading manufacturers of home improvement and building products, as well as a leading provider of services that include the installation of insulation and other building products.
The 2010 fourth quarter supplemental material, including a presentation in PDF format, will be distributed after the market closes on February 14, 2011 and will be available on the Company’s Web site at www.masco.com .
A conference call regarding items contained in this release is scheduled for Tuesday, February 15, 2011 at 8:00 a.m. ET. Participants in the call are asked to register five to ten minutes prior to the scheduled start time by dialing (913) 312-1393 (confirmation #5663649). The conference call will be webcast simultaneously on the Company’s Web site at www.masco.com and supplemental material, including the financial data referred to on the call and a reconciliation of non-GAAP information provided on the call, will also be available on the Web site.
A replay of the call will be available on Masco’s Web site or by phone by dialing (719) 457-0820 (replay access code #5663649) approximately two hours after the end of the call and will continue through February 22, 2011.
Masco Corporation’s press releases and other information are available through the Company’s toll free number, 1-888-MAS-NEWS, or under the Investor Relations section of Masco’s Web site at www.masco.com .
# # #
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Statements contained in this press release that reflect our views about our future performance constitute “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “believe,” “anticipate,” “appear,” “may,” “will,” “intend,” “plan,” “estimate,” “expect,” “assume,” “seek,” and similar references to future periods. These views involve risks and uncertainties that are difficult to predict and, accordingly, our actual results may differ materially from the results discussed in our forward-looking statements. We caution you against relying on any of these forward-looking statements. Our future performance may be affected by our reliance on new home construction and home improvement, our reliance on key customers, the cost and availability of raw materials, shifts in consumer preferences and purchasing practices, and our ability to achieve cost savings through the Masco Business System and other initiatives. These and other factors are discussed in detail in Item 1A, “Risk Factors” in our Annual Report on Form 10-K, as well as in our Quarterly Reports on Form 10-Q and in other filings we make with the Securities and Exchange Commission. Our forward-looking statements in this press release speak only as of the date of this press release. Factors or events that could cause our actual results to differ may emerge from time to time, and is not possible for us to predict all of them. We undertake no obligation to update publicly any forward-looking statements as a result of new information, future events or otherwise.
The Company believes that the non-GAAP performance measures and ratios that are contained herein, used in managing the business, may provide users of this financial information with additional meaningful comparisons between current results and results in prior periods. Non-GAAP performance measures and ratios should be viewed in addition to, and not as an alternative for, the Company’s reported results under accounting principles generally accepted in the United States. Additional information about the Company is contained in the Company’s filings with the Securities and Exchange Commission and is available on Masco’s Web site at www.masco.com .
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MASCO CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS  — UNAUDITED
For the Three Months and Twelve Months Ended December 31, 2010 and 2009
(In Millions, Except Per Common Share Data)
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended	 	 	Twelve Months Ended	 	
 	 	December 31,	 	 	December 31,	 	
 	 	2010	 	 	2009	 	 	2010	 	 	2009	 	
Net sales	 	$	1,735	 	 	$	1,898	 	 	$	7,592	 	 	$	7,792	 	
Cost of sales	 	 	1,427	 	 	 	1,403	 	 	 	5,752	 	 	 	5,774	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Gross profit	 	 	308	 	 	 	495	 	 	 	1,840	 	 	 	2,018	 	
Selling, general and administrative expenses	 	 	385	 	 	 	430	 	 	 	1,618	 	 	 	1,693	 	
Impairment charges for goodwill and other intangible assets	 	 	721	 	 	 	262	 	 	 	721	 	 	 	262	 	
Charge for defined-benefit plan curtailment	 	 	—	 	 	 	—	 	 	 	—	 	 	 	8	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating (loss) profit	 	 	(798	)	 	 	(197	)	 	 	(499	)	 	 	55	 	
Other income (expense), net	 	 	(55	)	 	 	(49	)	 	 	(278	)	 	 	(206	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Loss from continuing operations before income taxes	 	 	(853	)	 	 	(246	)	 	 	(777	)	 	 	(151	)	
Income tax expense (benefit)	 	 	172	 	 	 	(84	)	 	 	225	 	 	 	(49	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Loss from continuing operations	 	 	(1,025	)	 	 	(162	)	 	 	(1,002	)	 	 	(102	)	
Loss from discontinued operations, net	 	 	—	 	 	 	(12	)	 	 	—	 	 	 	(43	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Net loss	 	 	(1,025	)	 	 	(174	)	 	 	(1,002	)	 	 	(145	)	
Less: Net income attributable to non-controlling interest	 	 	9	 	 	 	11	 	 	 	41	 	 	 	38	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Net loss attributable to Masco Corporation	 	$	(1,034	)	 	$	(185	)	 	$	(1,043	)	 	$	(183	)	

Loss per common share attributable to Masco	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Corporation (diluted):	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Loss from continuing operations	 	$	(2.96	)	 	$	(0.49	)	 	$	(3.00	)	 	$	(0.41	)	
Loss from discontinued operations, net	 	 	—	 	 	 	(0.03	)	 	 	—	 	 	 	(0.12	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Net loss attributable to Masco Corporation	 	$	(2.96	)	 	$	(0.53	)	 	$	(3.00	)	 	$	(0.53	)	

Average diluted common shares outstanding	 	 	349	 	 	 	352	 	 	 	349	 	 	 	351	 	

Amounts attributable to Masco Corporation:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Loss from continuing operations	 	$	(1,034	)	 	$	(173	)	 	$	(1,043	)	 	$	(140	)	
Loss from discontinued operations, net	 	 	—	 	 	 	(12	)	 	 	—	 	 	 	(43	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Net loss attributable to Masco Corporation	 	$	(1,034	)	 	$	(185	)	 	$	(1,043	)	 	$	(183	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	
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MASCO CORPORATION
Reconciliations — Exhibit A
For the Twelve Months Ended December 31, 2010 and 2009
(In Millions, Except Per Common Share Data)
Gross Profit and Operating (Loss) Profit Reconciliations
 	 	 	 	 	 	 	 	 	
 	 	Twelve Months Ended	 	
 	 	December 31,	 	
 	 	2010	 	 	2009	 	
Sales	 	$	7,592	 	 	$	7,792	 	

Gross profit, as reported	 	$	1,840	 	 	$	2,018	 	
 	 	 	 	 	 	 	 	 	
Rationalization charges	 	 	166	 	 	 	43	 	

Gross profit, as adjusted	 	$	2,006	 	 	$	2,061	 	

Gross margin, as reported	 	 	24.2	%	 	 	25.9	%	
Gross margin, as adjusted	 	 	26.4	%	 	 	26.5	%	
 	 	 	 	 	 	 	 	 	
Operating (loss) profit, as reported	 	$	(499	)	 	$	55	 	
 	 	 	 	 	 	 	 	 	
Rationalization charges	 	 	208	 	 	 	94	 	
 	 	 	 	 	 	 	 	 	
Other one-time charges	 	 	—	 	 	 	23	 	
 	 	 	 	 	 	 	 	 	
Impairment charges for goodwill and other intangible assets	 	 	721	 	 	 	262	 	

Operating profit, as adjusted	 	$	430	 	 	$	434	 	

Operating margin, as reported	 	 	-6.6	%	 	 	0.7	%	
Operating margin, as adjusted	 	 	5.7	%	 	 	5.6	%	
 	 	 	 	 	 	 	 	 	
Earnings Per Common Share Reconciliation
 	 	 	 	 	 	 	 	 	
 	 	Twelve Months Ended	 	
 	 	December 31,	 	
 	 	2010	 	 	2009	 	
(Loss) from continuing operations before income taxes — as reported	 	$	(777	)	 	$	(151	)	
 	 	 	 	 	 	 	 	 	
Rationalization charges	 	 	208	 	 	 	94	 	
 	 	 	 	 	 	 	 	 	
Other one-time charges	 	 	—	 	 	 	23	 	
 	 	 	 	 	 	 	 	 	
Impairment charges for goodwill and other intangible assets	 	 	721	 	 	 	262	 	

Income from continuing operations before income taxes — as adjusted	 	 	152	 	 	 	228	 	
 	 	 	 	 	 	 	 	 	
Tax at 36% rate	 	 	(55	)	 	 	(82	)	
 	 	 	 	 	 	 	 	 	
Less: Net income attributable to non-controlling interest	 	 	(41	)	 	 	(38	)	

Net Income — as adjusted	 	$	56	 	 	$	108	 	

 	 	 	 	 	 	 	
Earnings per common share — as adjusted	 	$	0.16	 	 	$	0.31	 	

Shares outstanding	 	 	349	 	 	 	351	 	
 	 	 	 	 	 	 	 	 	
The Company believes that certain non-GAAP performance measures and ratios used in managing the business may provide additional meaningful comparisons between current results and results in prior periods. Non-GAAP performance measures and ratios should be viewed in addition to, and not as an alternative for, the Company’s reported results under accounting principles generally accepted in the United States.
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MASCO CORPORATION
Reconciliations — Exhibit B
For the Three Months Ended December 31, 2010 and 2009
(In Millions, Except Per Common Share Data)
Gross Profit and Operating (Loss) Profit Reconciliations
 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended	 	
 	 	December 31,	 	
 	 	2010	 	 	2009	 	
Sales	 	$	1,735	 	 	$	1,898	 	

Gross profit, as reported	 	$	308	 	 	$	495	 	
 	 	 	 	 	 	 	 	 	
Rationalization charges	 	 	95	 	 	 	15	 	

Gross profit, as adjusted	 	$	403	 	 	$	510	 	

Gross margin, as reported	 	 	17.8	%	 	 	26.1	%	
Gross margin, as adjusted	 	 	23.2	%	 	 	26.9	%	
 	 	 	 	 	 	 	 	 	
Operating (loss) profit, as reported	 	$	(798	)	 	$	(197	)	
 	 	 	 	 	 	 	 	 	
Rationalization charges	 	 	104	 	 	 	27	 	
 	 	 	 	 	 	 	 	 	
Other one-time charges	 	 	—	 	 	 	—	 	
 	 	 	 	 	 	 	 	 	
Impairment charges for goodwill and other intangible assets	 	 	721	 	 	 	262	 	

Operating profit, as adjusted	 	$	27	 	 	$	92	 	

Operating margin, as reported	 	 	-46.0	%	 	 	-10.4	%	
Operating margin, as adjusted	 	 	1.6	%	 	 	4.8	%	
 	 	 	 	 	 	 	 	 	
Earnings Per Common Share Reconciliation
 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended	 	
 	 	December 31,	 	
 	 	2010	 	 	2009	 	
(Loss) from continuing operations before income taxes — as reported	 	$	(853	)	 	$	(246	)	
 	 	 	 	 	 	 	 	 	
Rationalization charges	 	 	104	 	 	 	27	 	
 	 	 	 	 	 	 	 	 	
Other one-time charges	 	 	—	 	 	 	—	 	
 	 	 	 	 	 	 	 	 	
Impairment charges for goodwill and other intangible assets	 	 	721	 	 	 	262	 	

Income from continuing operations before income taxes — as adjusted	 	 	(28	)	 	 	43	 	
 	 	 	 	 	 	 	 	 	
Tax at 36% rate	 	 	10	 	 	 	(15	)	
 	 	 	 	 	 	 	 	 	
Less: Net income attributable to non-controlling interest	 	 	(9	)	 	 	(11	)	

Net Income — as adjusted	 	$	(27	)	 	$	17	 	

 	 	 	 	 	 	 	
Earnings per common share — as adjusted	 	$	(0.08	)	 	$	0.05	 	

Shares outstanding	 	 	349	 	 	 	352	 	
The Company believes that certain non-GAAP performance measures and ratios used in managing the business may provide additional meaningful comparisons between current results and results in prior periods. Non-GAAP performance measures and ratios should be viewed in addition to, and not as an alternative for, the Company’s reported results under accounting principles generally accepted in the United States.
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Masco Corporation
Key Financial Data As Reported — Unaudited
Q4 — 2010 and 2009
(In Millions, Except Earnings Per Share)
 	 	 	 	 	 	 	 	 	 	 	 	 	
Sales & Earnings	 	12/31/2010	 	 	12/31/2009	 	 	Change	 	
Net Sales	 	$	1,735	 	 	$	1,898	 	 	 	-9	%	
Operating Loss	 	$	(798	)	 	$	(197	)	 	 	N/A	 	
Operating (Loss) % of Net Sales	 	 	-46.0	%	 	 	-10.4	%	 	 	(3,560	)bps	
Other Income (Expense), Net	 	$	(55	)	 	$	(49	)	 	$	(6	)	
Income Tax Expense (Benefit)	 	$	172	 	 	$	(84	)	 	 	N/A	 	
Loss From Continuing Operations Attributable to Masco Corporation	 	$	(1,034	)	 	$	(173	)	 	 	N/A	 	
Diluted EPS from Continuing Operations	 	$	(2.96	)	 	$	(0.49	)	 	 	N/A	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating Expenses	 	12/31/2010	 	 	12/31/2009	 	 	Change	 	
Cost of Sales	 	$	1,427	 	 	$	1,403	 	 	$	24	 	
Gross Margin	 	 	17.8	%	 	 	26.1	%	 	 	(830	)bps	
SG&A Expenses (Including GCE)	 	$	385	 	 	$	430	 	 	$	(45	)	
SG&A as a % of net sales	 	 	22.2	%	 	 	22.7	%	 	 	50	bps	
General Corporate Expense (GCE)	 	$	26	 	 	$	44	 	 	$	(18	)	
General Corp Expense as a % of net sales	 	 	1.5	%	 	 	2.3	%	 	 	80	bps	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Business Segments	 	12/31/2010	 	 	12/31/2009	 	 	Change	 	
Cabinets and Related Products:	 	 	 	 	 	 	 	 	 	 	 	 	
Net Sales	 	$	304	 	 	$	426	 	 	 	-29	%	
Operating (Loss)	 	$	(137	)	 	$	(8	)	 	 	N/A	 	
Operating (Loss) % of Net Sales	 	 	-45.1	%	 	 	-1.9	%	 	 	(4,320	)bps	
Plumbing Products:	 	 	 	 	 	 	 	 	 	 	 	 	
Net Sales	 	$	661	 	 	$	671	 	 	 	-1	%	
Operating Profit	 	$	64	 	 	$	35	 	 	 	N/A	 	
Operating Profit % of Net Sales	 	 	9.7	%	 	 	5.2	%	 	 	450	bps	
Installation and Other Services:	 	 	 	 	 	 	 	 	 	 	 	 	
Net Sales	 	$	273	 	 	$	295	 	 	 	-7	%	
Operating (Loss)	 	$	(747	)	 	$	(27	)	 	 	N/A	 	
Operating (Loss) % of Net Sales	 	 	-273.6	%	 	 	-9.2	%	 	 	(26,440	)bps	
Decorative Architectural Products:	 	 	 	 	 	 	 	 	 	 	 	 	
Net Sales	 	$	336	 	 	$	349	 	 	 	-4	%	
Operating Profit	 	$	45	 	 	$	62	 	 	 	N/A	 	
Operating Profit % of Net Sales	 	 	13.4	%	 	 	17.8	%	 	 	(440	)bps	
Other Specialty Products:	 	 	 	 	 	 	 	 	 	 	 	 	
Net Sales	 	$	161	 	 	$	157	 	 	 	3	%	
Operating Profit (Loss)	 	$	3	 	 	$	(215	)	 	 	N/A	 	
Operating Profit (Loss) % of Net Sales	 	 	1.9	%	 	 	-136.9	%	 	 	13,880	bps	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Segment Reported:	 	 	 	 	 	 	 	 	 	 	 	 	
Net Sales	 	$	1,735	 	 	$	1,898	 	 	 	-9	%	
Operating (Loss)	 	$	(772	)	 	$	(153	)	 	 	N/A	 	
Operating (Loss) % of Net Sales	 	 	-44.5	%	 	 	-8.1	%	 	 	(3,640	)bps	
 	 	 	 	 	 	 	 	 	 	 	 	 	
 Page 4 

 

Masco Corporation
Key Financial Data As Reported — Unaudited
Q4 — 2010 and 2009
(In Millions, Except Earnings Per Share)
 	 	 	 	 	 	 	 	 	 	 	 	 	
Business Regions	 	12/31/2010	 	 	12/31/2009	 	 	Change	 	
North America	 	 	 	 	 	 	 	 	 	 	 	 	
Net Sales	 	$	1,312	 	 	$	1,441	 	 	 	-9	%	
Operating (Loss)	 	$	(800	)	 	$	(168	)	 	 	N/A	 	
Operating (Loss) % of Net Sales	 	 	-61.0	%	 	 	-11.7	%	 	 	(4,930	)bps	
International, principally Europe	 	 	 	 	 	 	 	 	 	 	 	 	
Net Sales	 	$	423	 	 	$	457	 	 	 	-7	%	
Operating Profit	 	$	28	 	 	$	15	 	 	 	N/A	 	
Operating Profit % of Net Sales	 	 	6.6	%	 	 	3.3	%	 	 	330	bps	
 	 		
Other	 	12/31/2010	 	 	12/31/2009	 	 	 	 	 	
Dividend Payments	 	$	27	 	 	$	27	 	 	 	 	 	
Cash Paid for Share Repurchases	 	$	—	 	 	$	—	 	 	 	 	 	
Common Shares Repurchased	 	 	—	 	 	 	—	 	 	 	 	 	
CAPEX	 	$	49	 	 	$	55	 	 	 	 	 	
Depreciation and Amortization	 	$	137	 	 	$	64	 	 	 	 	 	
Average diluted common shares outstanding	 	 	349	 	 	 	352	 	 	 	 	 	
 Page 5 

 

Masco Corporation
Key Financial Data As Reported — Unaudited
Year-to-Date December 31, 2010 and 2009
(In Millions, Except Earnings Per Share and Working Capital Days)
 	 	 	 	 	 	 	 	 	 	 	 	 	
Sales & Earnings	 	12/31/2010	 	 	12/31/2009	 	 	Change	 	
Net Sales	 	$	7,592	 	 	$	7,792	 	 	 	-3	%	
Operating (Loss) Profit	 	$	(499	)	 	$	55	 	 	 	N/A	 	
Operating (Loss) Profit % of Net Sales	 	 	-6.6	%	 	 	0.7	%	 	 	(730	)bps	
Other Income (Expense), Net	 	$	(278	)	 	$	(206	)	 	$	(72	)	
Income Tax Expense (Benefit)	 	$	225	 	 	$	(49	)	 	 	N/A	 	
Loss From Continuing Operations Attributable to Masco Corporation	 	$	(1,043	)	 	$	(140	)	 	 	N/A	 	
Diluted EPS from Continuing Operations	 	$	(3.00	)	 	$	(0.41	)	 	 	N/A	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating Expenses	 	12/31/2010	 	 	12/31/2009	 	 	Change	 	
Cost of Sales	 	$	5,752	 	 	$	5,774	 	 	$	(22	)	
Gross Margin	 	 	24.2	%	 	 	25.9	%	 	 	(170	)bps	
SG&A Expenses (Including GCE)	 	$	1,618	 	 	$	1,701	 	 	$	(83	)	
SG&A as a % of net sales	 	 	21.3	%	 	 	21.8	%	 	 	50	bps	
General Corporate Expense (GCE)	 	$	110	 	 	$	140	 	 	$	(30	)	
General Corp Expense as a % of net sales	 	 	1.4	%	 	 	1.8	%	 	 	40	bps	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Business Segments	 	12/31/2010	 	 	12/31/2009	 	 	Change	 	
Cabinets and Related Products:	 	 	 	 	 	 	 	 	 	 	 	 	
Net Sales	 	$	1,464	 	 	$	1,674	 	 	 	-13	%	
Operating (Loss)	 	$	(250	)	 	$	(64	)	 	 	N/A	 	
Operating (Loss) % of Net Sales	 	 	-17.1	%	 	 	-3.8	%	 	 	(1,330	)bps	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Plumbing Products:	 	 	 	 	 	 	 	 	 	 	 	 	
Net Sales	 	$	2,692	 	 	$	2,564	 	 	 	5	%	
Operating Profit	 	$	331	 	 	$	237	 	 	 	N/A	 	
Operating Profit % of Net Sales	 	 	12.3	%	 	 	9.2	%	 	 	310	bps	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Installation and Other Services:	 	 	 	 	 	 	 	 	 	 	 	 	
Net Sales	 	$	1,147	 	 	$	1,256	 	 	 	-9	%	
Operating (Loss)	 	$	(834	)	 	$	(131	)	 	 	N/A	 	
Operating (Loss) % of Net Sales	 	 	-72.7	%	 	 	-10.4	%	 	 	(6,230	)bps	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Decorative Architectural Products:	 	 	 	 	 	 	 	 	 	 	 	 	
Net Sales	 	$	1,693	 	 	$	1,714	 	 	 	-1	%	
Operating Profit	 	$	345	 	 	$	375	 	 	 	N/A	 	
Operating Profit % of Net Sales	 	 	20.4	%	 	 	21.9	%	 	 	(150	)bps	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Other Specialty Products:	 	 	 	 	 	 	 	 	 	 	 	 	
Net Sales	 	$	596	 	 	$	584	 	 	 	2	%	
Operating Profit (Loss)	 	$	19	 	 	$	(199	)	 	 	N/A	 	
Operating Profit (Loss) % of Net Sales	 	 	3.2	%	 	 	-34.1	%	 	 	3,730	bps	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Segment Reported:	 	 	 	 	 	 	 	 	 	 	 	 	
Net Sales	 	$	7,592	 	 	$	7,792	 	 	 	-3	%	
Operating (Loss) Profit	 	$	(389	)	 	$	218	 	 	 	N/A	 	
Operating (Loss) Profit % of Net Sales	 	 	-5.1	%	 	 	2.8	%	 	 	(790	)bps	
 	 	 	 	 	 	 	 	 	 	 	 	 	
 Page 6 

 

Masco Corporation
Key Financial Data As Reported — Unaudited
Year-to-Date December 31, 2010 and 2009
(In Millions, Except Earnings Per Share and Working Capital Days)
 	 	 	 	 	 	 	 	 	 	 	 	 	
Business Regions	 	12/31/2010	 	 	12/31/2009	 	 	Change	 	
North America	 	 	 	 	 	 	 	 	 	 	 	 	
Net Sales	 	$	5,929	 	 	$	6,135	 	 	 	-3	%	
Operating (Loss) Profit	 	$	(543	)	 	$	93	 	 	 	N/A	 	
Operating (Loss) Profit % of Net Sales	 	 	-9.2	%	 	 	1.5	%	 	 	(1,070	)bps	
 	 	 	 	 	 	 	 	 	 	 	 	 	
International, principally Europe	 	 	 	 	 	 	 	 	 	 	 	 	
Net Sales	 	$	1,663	 	 	$	1,657	 	 	 	0	%	
Operating Profit	 	$	154	 	 	$	125	 	 	 	N/A	 	
Operating Profit % of Net Sales	 	 	9.3	%	 	 	7.5	%	 	 	180	bps	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Working Capital	 	12/31/2010	 	 	12/31/2009	 	 	Change	 	
Receivable Days	 	 	47	 	 	 	48	 	 	 	(1	)	
Inventory Days	 	 	49	 	 	 	48	 	 	 	1	 	
Payable Days	 	 	51	 	 	 	47	 	 	 	4	 	
Working Capital (Receivables+Inventory-Payables)	 	$	1,018	 	 	$	1,148	 	 	$	(130	)	
Working Capital as a % of Sales (As Reported TTM 1 )	 	 	13.4	%	 	 	14.7	%	 	 	130	bps	
 		
Other	 	12/31/2010	 	 	12/31/2009	 	 	 	 	 	
Dividend Payments	 	$	108	 	 	$	166	 	 	 	 	 	
Cash Paid for Share Repurchases 2	 	$	45	 	 	$	11	 	 	 	 	 	
Common Shares Repurchased 2	 	 	3	 	 	 	2	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
CAPEX	 	$	137	 	 	$	125	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Depreciation and Amortization	 	$	279	 	 	$	254	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Return on Invested Capital (As Reported TTM 1 )	 	 	-7.1	%	 	 	0.5	%	 	 	 	 	
Return on Invested Capital (As Reconciled TTM 1 )	 	 	2.9	%	 	 	3.6	%	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Average diluted common shares outstanding	 	 	349	 	 	 	351	 	 	 	 	 	
 		
Balance Sheet Information	 	12/31/2010	 	 	12/31/2009	 	 	 	 	 	
Long-Term Debt	 	$	4,032	 	 	$	3,604	 	 	 	 	 	
Notes Payable	 	$	66	 	 	$	364	 	 	 	 	 	
Total Debt	 	$	4,098	 	 	$	3,968	 	 	 	 	 	
Shareholders’ Equity	 	$	1,582	 	 	$	2,817	 	 	 	 	 	
Debt to Capital	 	 	72	%	 	 	58	%	 	 	 	 	
Cash	 	$	1,715	 	 	$	1,413	 	 	 	 	 	

1 - 	 	Trailing twelve months.	
 		
2 - 	 	Common shares were repurchased to offset the effect of stock award grants in the first quarters of 2010 and 2009.	
 Page 7 

 

Masco Corporation — 4th Quarter 2010
 	 	 	
Page	 	 	
1	 	Condensed Consolidated Statements of Operations — 2010 & 2009 by Quarter — Unaudited	
 	 	 	
2	 	Notes to Condensed Consolidated Statements of Operations — 2010 & 2009 by Quarter — Unaudited	
 	 	 	
3	 	2010 Quarterly Segment Data Excluding Costs and Charges for Business Rationalizations and Other Initiatives — Unaudited	
 	 	 	
4	 	2010 Quarterly Segment Data Including Costs and Charges for Business Rationalizations and Other Initiatives — Unaudited	
 	 	 	
5	 	2010 Costs and Charges for Business Rationalizations and Other Initiatives — Unaudited	
 	 	 	
6	 	2009 Quarterly Segment Data Excluding Costs and Charges for Business Rationalizations and Other Initiatives and Impairment Charges for Goodwill and Other Intangible Assets — Unaudited	
 	 	 	
7	 	2009 Quarterly Segment Data Including Costs and Charges for Business Rationalizations and Other Initiatives and Impairment Charges for Goodwill and Other Intangible Assets — Unaudited	
 	 	 	
8	 	2009 Costs and Charges for Business Rationalizations and Other Initiatives and Impairment Charges for Goodwill and Other Intangible Assets — Unaudited	
 	 	 	
9	 	Other Income (Expense), Net — 2010 & 2009 by Quarter — Unaudited	
 	 	 	
10	 	Condensed Consolidated Balance Sheets — Unaudited	
 	 	 	
 	 	GAAP Reconciliations:	
 	 	 	
11	 	Sales Growth Excluding the Effect of Acquisitions and Currency Translation — Unaudited	
 	 	 	
12	 	Operating Profit and Margins — Unaudited	
 	 	 	
13	 	Operating Profit and Shareholders’ Equity — Unaudited	
Index

 

MASCO CORPORATION
Condensed Consolidated Statements of Operations
2010 & 2009 — by Quarter — Unaudited
(dollars in millions, except per share data)
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	2010	 	 	2009	 	
 	 	 	 	 	 	Year	 	 	Qtr. 4	 	 	Qtr. 3	 	 	Qtr. 2	 	 	Qtr. 1	 	 	Year	 	 	Qtr. 4	 	 	Qtr. 3	 	 	Qtr. 2	 	 	Qtr. 1	 	
 	 	 	 	 	 	 	
 	 	 	 	Net Sales	 	$	7,592	 	 	$	1,735	 	 	$	1,957	 	 	$	2,048	 	 	$	1,852	 	 	$	7,792	 	 	$	1,898	 	 	$	2,084	 	 	$	2,013	 	 	$	1,797	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Cost of Sales	 	 	5,752	 	 	 	1,427	 	 	 	1,463	 	 	 	1,502	 	 	 	1,360	 	 	 	5,774	 	 	 	1,403	 	 	 	1,517	 	 	 	1,470	 	 	 	1,384	 	

 	 	 	 	Gross Profit	 	 	1,840	 	 	 	308	 	 	 	494	 	 	 	546	 	 	 	492	 	 	 	2,018	 	 	 	495	 	 	 	567	 	 	 	543	 	 	 	413	 	
 	 	 	 	(Gross Margin as a % of Sales)	 	 	24.2	%	 	 	17.8	%	 	 	25.2	%	 	 	26.7	%	 	 	26.6	%	 	 	25.9	%	 	 	26.1	%	 	 	27.2	%	 	 	27.0	%	 	 	23.0	%	
 	 	 	 	SG&A Expense (before lines 1, 2, 3, 4)	 	 	1,508	 	 	 	359	 	 	 	365	 	 	 	400	 	 	 	384	 	 	 	1,546	 	 	 	386	 	 	 	386	 	 	 	400	 	 	 	374	 	
 	 	 	 	(S,G&A Expense as a % of Sales)	 	 	19.9	%	 	 	20.7	%	 	 	18.7	%	 	 	19.5	%	 	 	20.7	%	 	 	19.8	%	 	 	20.3	%	 	 	18.5	%	 	 	19.9	%	 	 	20.8	%	
 	 	 	 	Operating Profit (before lines 1, 2, 3, 4)	 	 	332	 	 	 	(51	)	 	 	129	 	 	 	146	 	 	 	108	 	 	 	472	 	 	 	109	 	 	 	181	 	 	 	143	 	 	 	39	 	
 	 	 	 	(Operating Margin as a % of Sales)	 	 	4.4	%	 	 	-2.9	%	 	 	6.6	%	 	 	7.1	%	 	 	5.8	%	 	 	6.1	%	 	 	5.7	%	 	 	8.7	%	 	 	7.1	%	 	 	2.2	%	
 	1	 	 	General Corporate Expense (GCE), Net	 	 	110	 	 	 	26	 	 	 	27	 	 	 	27	 	 	 	30	 	 	 	140	 	 	 	44	 	 	 	36	 	 	 	27	 	 	 	33	 	
 	 	 	 	S,G&A Expense as a % of Sales (including lines 1,2,3,4)	 	 	30.8	%	 	 	63.7	%	 	 	20.0	%	 	 	20.8	%	 	 	22.4	%	 	 	25.2	%	 	 	36.5	%	 	 	20.6	%	 	 	21.2	%	 	 	23.1	%	
 	2	 	 	Charge for Defined-Benefit Plan Curtailment	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	8	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	8	 	
 	3	 	 	Charge for Litigation Settlement	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	7	 	 	 	—	 	 	 	7	 	 	 	—	 	 	 	—	 	
 	4	 	 	Impairment Charges for Goodwill and Other Intangible Assets	 	 	721	 	 	 	721	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	262	 	 	 	262	 	 	 	—	 	 	 	—	 	 	 	—	 	
 	 	 	 	 	 	 	
 	 	 	 	Operating Profit (Loss) per F/S	 	$	(499	)	 	$	(798	)	 	$	102	 	 	$	119	 	 	$	78	 	 	$	55	 	 	$	(197	)	 	$	138	 	 	$	116	 	 	$	(2	)	
 	 	 	 	 	 	 	
 	 	 	 	(Loss) Income Per Common Share Attributable to Masco Corporation (Diluted):	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	(Loss) Income from Continuing Operations	 	$	(3.00	)	 	$	(2.96	)	 	$	(0.02	)	 	$	0.01	 	 	$	(0.02	)	 	$	(0.41	)	 	$	(0.49	)	 	$	0.14	 	 	$	0.19	 	 	$	(0.24	)	
 	 	 	 	(Loss) Income from Discontinued Operations, Net	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	(0.12	)	 	 	(0.03	)	 	 	(0.06	)	 	 	(0.03	)	 	 	0.01	 	
 	 	 	 	 	 	 	
 	 	 	 	Net (Loss) Income	 	$	(3.00	)	 	$	(2.96	)	 	$	(0.02	)	 	$	0.01	 	 	$	(0.02	)	 	$	(0.53	)	 	$	(0.53	)	 	$	0.08	 	 	$	0.15	 	 	$	(0.23	)	
 	 	 	 	 	 	 	
Please see page 2 for Notes.
 Page 1 

 

MASCO CORPORATION
Notes To Condensed Consolidated Statements of Operations
2010 & 2009 — by Quarter — Unaudited
 
Notes:

-	 	Data exclude discontinued operations.	
 	 	 	
-	 	Operating results for the first, second, third and fourth quarters of 2010 include costs and charges related to business rationalizations and other initiatives of $14 million pre-tax ($.03 per common share, after tax), $51 million pre-tax ($.09 per common share, after tax), $39 million pre-tax ($.07 per common share, after tax), and $104 million pre-tax ($.19 per common share, after tax), respectively.	
 	 	 	
-	 	Operating results for the fourth quarter of 2010 include non-cash impairment charges for goodwill and other intangible assets of $721 million pre-tax ($1.70 per common share, after tax).	
 	 	 	
-	 	Operating results for the second and fourth quarters of 2010 include non-cash impairment charges for financial investments of $33 million pre-tax ($.06 per common share, after tax) and $1 million pre-tax, respectively.	
 	 	 	
-	 	Operating results for the fourth quarter of 2009 include non-cash impairment charges for goodwill and other intangible assets of $262 million pre-tax ($.51 per common share, after tax).	
 	 	 	
-	 	Operating results for the first, second, third and fourth quarters of 2009 include costs and charges related to business rationalizations and other initiatives of $24 million pre-tax ($.04 per common share, after tax), $22 million pre-tax ($.04 per common share, after tax), $21 million pre-tax ($.04 per common share, after tax), and $27 million pre-tax ($.05 per common share, after tax), respectively.	
 	 	 	
-	 	Operating results for the third quarter of 2009 include litigation settlement expense of $7 million pre-tax ($.01 per common share, after tax).	
 	 	 	
-	 	Operating results for the second quarter of 2009 include accelerated stock compensation expense of $6 million pre-tax ($.01 per common share, after tax).	
 	 	 	
-	 	Operating results for the first quarter of 2009 include a non-cash charge of $8 million pre-tax ($.01 per common share, after tax) related to the curtailment and remeasurement of certain of the Company’s defined-benefit pension plans.	
 	 	 	
-	 	Income from continuing operations for the first and second quarters of 2009 includes non-cash impairment charges for financial investments of $3 million pre-tax ($.01 per common share, after tax) and $7 million pre-tax ($.01 per common share, after tax), respectively.	
 	 	 	
-	 	(Loss) income from discontinued operations for the fourth quarter of 2009 include loss of $19 million pre-tax ($.04 per common share, after tax) on the disposition of a European business unit in the Plumbing Products segment.	
 	 	 	
-	 	(Loss) income from discontinued operations for the third quarter of 2009 include loss of $22 million pre-tax ($.06 per common share, after tax) on the disposition of a European business unit in the Plumbing Products segment.	
 Page 2 

 

MASCO CORPORATION
Quarterly Segment Data — 2010
Excluding Costs and Charges for Business Rationalizations and Other Initiatives
and Impairment Charges for Goodwill and Other Intangible Assets — Unaudited
(dollars in millions)
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Year	 	 	Qtr. 4	 	 	Qtr. 3	 	 	Qtr. 2	 	 	Qtr. 1	 	
 	 	 	
Net Sales:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
- Cabinets and Related Products	 	$	1,464	 	 	$	304	 	 	$	357	 	 	$	400	 	 	$	403	 	
- Plumbing Products	 	 	2,692	 	 	 	661	 	 	 	686	 	 	 	682	 	 	 	663	 	
- Installation and Other Services	 	 	1,147	 	 	 	273	 	 	 	292	 	 	 	309	 	 	 	273	 	
- Decorative Architectural Products	 	 	1,693	 	 	 	336	 	 	 	463	 	 	 	505	 	 	 	389	 	
- Other Specialty Products	 	 	596	 	 	 	161	 	 	 	159	 	 	 	152	 	 	 	124	 	
 	 	 	
- Total	 	$	7,592	 	 	$	1,735	 	 	$	1,957	 	 	$	2,048	 	 	$	1,852	 	

- North America	 	$	5,929	 	 	$	1,312	 	 	$	1,528	 	 	$	1,659	 	 	$	1,430	 	
- International, principally Europe	 	 	1,663	 	 	 	423	 	 	 	429	 	 	 	389	 	 	 	422	 	
 	 	 	
- Total, as above	 	$	7,592	 	 	$	1,735	 	 	$	1,957	 	 	$	2,048	 	 	$	1,852	 	

Operating (Loss) Profit:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
- Cabinets and Related Products	 	$	(71	)	 	$	(46	)	 	$	(27	)	 	$	6	 	 	$	(4	)	
- Plumbing Products	 	 	347	 	 	 	70	 	 	 	100	 	 	 	92	 	 	 	85	 	
- Installation and Other Services	 	 	(106	)	 	 	(25	)	 	 	(20	)	 	 	(21	)	 	 	(40	)	
- Decorative Architectural Products	 	 	350	 	 	 	50	 	 	 	104	 	 	 	109	 	 	 	87	 	
- Other Specialty Products	 	 	19	 	 	 	3	 	 	 	11	 	 	 	11	 	 	 	(6	)	
 	 	 	
- Total	 	$	539	 	 	$	52	 	 	$	168	 	 	$	197	 	 	$	122	 	

- North America	 	$	373	 	 	$	21	 	 	$	116	 	 	$	160	 	 	$	76	 	
- International, principally Europe	 	 	166	 	 	 	31	 	 	 	52	 	 	 	37	 	 	 	46	 	
 	 	 	
- Total, as above	 	$	539	 	 	$	52	 	 	$	168	 	 	$	197	 	 	$	122	 	

General Corporate Expense (GCE), Net	 	 	109	 	 	 	25	 	 	 	27	 	 	 	27	 	 	 	30	 	

Operating Profit (after GCE and Adjustments)	 	 	430	 	 	 	27	 	 	 	141	 	 	 	170	 	 	 	92	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Other Income (Expense), Net	 	 	(278	)	 	 	(55	)	 	 	(64	)	 	 	(103	)	 	 	(56	)	

Income from Continuing Operations before Income Taxes	 	$	152	 	 	$	(28	)	 	$	77	 	 	$	67	 	 	$	36	 	

Margins:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
- Cabinets and Related Products	 	 	-4.8	%	 	 	-15.1	%	 	 	-7.6	%	 	 	1.5	%	 	 	-1.0	%	
- Plumbing Products	 	 	12.9	%	 	 	10.6	%	 	 	14.6	%	 	 	13.5	%	 	 	12.8	%	
- Installation and Other Services	 	 	-9.2	%	 	 	-9.2	%	 	 	-6.8	%	 	 	-6.8	%	 	 	-14.7	%	
- Decorative Architectural Products	 	 	20.7	%	 	 	14.9	%	 	 	22.5	%	 	 	21.6	%	 	 	22.4	%	
- Other Specialty Products	 	 	3.2	%	 	 	1.9	%	 	 	6.9	%	 	 	7.2	%	 	 	-4.8	%	
- Total	 	 	7.1	%	 	 	3.0	%	 	 	8.6	%	 	 	9.6	%	 	 	6.6	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
- North America	 	 	6.3	%	 	 	1.6	%	 	 	7.6	%	 	 	9.6	%	 	 	5.3	%	
- International, principally Europe	 	 	10.0	%	 	 	7.3	%	 	 	12.1	%	 	 	9.5	%	 	 	10.9	%	
- Total, as above	 	 	7.1	%	 	 	3.0	%	 	 	8.6	%	 	 	9.6	%	 	 	6.6	%	

Notes:		
 		
-	 	Data exclude discontinued operations.	
 		
-	 	Operating (loss) profit and margins by segment and geographic area are before general corporate expense.	
 		
-	 	See 2010 Costs and Charges for Business Rationalizations and Other Initiatives — page 5.	
 Page 3 

 

MASCO CORPORATION
Quarterly Segment Data — 2010
Including Costs and Charges for Business Rationalizations and Other Initiatives
and Impairment Charges for Goodwill and Other Intangible Assets — Unaudited
(dollars in millions)
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Year	 	 	Qtr. 4	 	 	Qtr. 3	 	 	Qtr. 2	 	 	Qtr. 1	 	
 	 	 	
Net Sales:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
- Cabinets and Related Products	 	$	1,464	 	 	$	304	 	 	$	357	 	 	$	400	 	 	$	403	 	
- Plumbing Products	 	 	2,692	 	 	 	661	 	 	 	686	 	 	 	682	 	 	 	663	 	
- Installation and Other Services	 	 	1,147	 	 	 	273	 	 	 	292	 	 	 	309	 	 	 	273	 	
- Decorative Architectural Products	 	 	1,693	 	 	 	336	 	 	 	463	 	 	 	505	 	 	 	389	 	
- Other Specialty Products	 	 	596	 	 	 	161	 	 	 	159	 	 	 	152	 	 	 	124	 	
 	 	 	
- Total	 	$	7,592	 	 	$	1,735	 	 	$	1,957	 	 	$	2,048	 	 	$	1,852	 	

- North America	 	$	5,929	 	 	$	1,312	 	 	$	1,528	 	 	$	1,659	 	 	$	1,430	 	
- International, principally Europe	 	 	1,663	 	 	 	423	 	 	 	429	 	 	 	389	 	 	 	422	 	
 	 	 	
- Total, as above	 	$	7,592	 	 	$	1,735	 	 	$	1,957	 	 	$	2,048	 	 	$	1,852	 	

Operating (Loss) Profit:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
- Cabinets and Related Products	 	$	(250	)	 	$	(137	)	 	$	(61	)	 	$	(37	)	 	$	(15	)	
- Plumbing Products	 	 	331	 	 	 	64	 	 	 	97	 	 	 	86	 	 	 	84	 	
- Installation and Other Services	 	 	(834	)	 	 	(747	)	 	 	(22	)	 	 	(23	)	 	 	(42	)	
- Decorative Architectural Products	 	 	345	 	 	 	45	 	 	 	104	 	 	 	109	 	 	 	87	 	
- Other Specialty Products	 	 	19	 	 	 	3	 	 	 	11	 	 	 	11	 	 	 	(6	)	
 	 	 	
- Total	 	$	(389	)	 	$	(772	)	 	$	129	 	 	$	146	 	 	$	108	 	

- North America	 	$	(543	)	 	$	(800	)	 	$	79	 	 	$	114	 	 	$	64	 	
- International, principally Europe	 	 	154	 	 	 	28	 	 	 	50	 	 	 	32	 	 	 	44	 	
 	 	 	
- Total, as above	 	$	(389	)	 	$	(772	)	 	$	129	 	 	$	146	 	 	$	108	 	

General Corporate Expense (GCE), Net	 	 	110	 	 	 	26	 	 	 	27	 	 	 	27	 	 	 	30	 	

Operating Profit (after GCE and Adjustments)	 	 	(499	)	 	 	(798	)	 	 	102	 	 	 	119	 	 	 	78	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Other Income (Expense), Net	 	 	(278	)	 	 	(55	)	 	 	(64	)	 	 	(103	)	 	 	(56	)	

Income from Continuing Operations before Income Taxes	 	$	(777	)	 	$	(853	)	 	$	38	 	 	$	16	 	 	$	22	 	

Margins:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
- Cabinets and Related Products	 	 	-17.1	%	 	 	-45.1	%	 	 	-17.1	%	 	 	-9.3	%	 	 	-3.7	%	
- Plumbing Products	 	 	12.3	%	 	 	9.7	%	 	 	14.1	%	 	 	12.6	%	 	 	12.7	%	
- Installation and Other Services	 	 	-72.7	%	 	 	-273.6	%	 	 	-7.5	%	 	 	-7.4	%	 	 	-15.4	%	
- Decorative Architectural Products	 	 	20.4	%	 	 	13.4	%	 	 	22.5	%	 	 	21.6	%	 	 	22.4	%	
- Other Specialty Products	 	 	3.2	%	 	 	1.9	%	 	 	6.9	%	 	 	7.2	%	 	 	-4.8	%	
- Total	 	 	-5.1	%	 	 	-44.5	%	 	 	6.6	%	 	 	7.1	%	 	 	5.8	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
- North America	 	 	-9.2	%	 	 	-61.0	%	 	 	5.2	%	 	 	6.9	%	 	 	4.5	%	
- International, principally Europe	 	 	9.3	%	 	 	6.6	%	 	 	11.7	%	 	 	8.2	%	 	 	10.4	%	
- Total, as above	 	 	-5.1	%	 	 	-44.5	%	 	 	6.6	%	 	 	7.1	%	 	 	5.8	%	

Notes:	 	 	
 		
-	 	Data exclude discontinued operations.	
 		
-	 	Operating (loss) profit and margins by segment and geographic area are before general corporate expense.	
 		
-	 	See 2010 Costs and Charges for Business Rationalizations and Other Initiatives — page 5.	
 Page 4 

 

MASCO CORPORATION
Quarterly Segment Data — 2010
Costs and Charges for Business Rationalizations and Other Initiatives
and Impairment Charges for Goodwill and Other Intangible Assets — Unaudited
(in millions)
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Year	 	 	Qtr. 4	 	 	Qtr. 3	 	 	Qtr. 2	 	 	Qtr. 1	 	
Business Rationalizations & Other Initiatives	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
- Cabinets and Related Products	 	$	179	 	 	$	91	 	 	$	34	 	 	$	43	 	 	$	11	 	
- Plumbing Products	 	 	15	 	 	 	5	 	 	 	3	 	 	 	6	 	 	 	1	 	
- Installation and Other Services	 	 	8	 	 	 	2	 	 	 	2	 	 	 	2	 	 	 	2	 	
- Decorative Architectural Products	 	 	5	 	 	 	5	 	 	 	—	 	 	 	—	 	 	 	—	 	
- Other Specialty Products	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
 	 	 	
- Total	 	$	207	 	 	$	103	 	 	$	39	 	 	$	51	 	 	$	14	 	

- North America	 	$	195	 	 	$	100	 	 	$	37	 	 	$	46	 	 	$	12	 	
- International, principally Europe	 	 	12	 	 	 	3	 	 	 	2	 	 	 	5	 	 	 	2	 	
 	 	 	
- Total, as above	 	$	207	 	 	$	103	 	 	$	39	 	 	$	51	 	 	$	14	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
General Corporate Expense (GCE), Net	 	 	1	 	 	 	1	 	 	 	—	 	 	 	—	 	 	 	—	 	

- Total	 	$	208	 	 	$	104	 	 	$	39	 	 	$	51	 	 	$	14	 	

Goodwill and Other Intangible Assets Impairment	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
- Cabinets and Related Products	 	$	—	 	 	$	—	 	 	$	—	 	 	$	—	 	 	$	—	 	
- Plumbing Products	 	 	1	 	 	 	1	 	 	 	—	 	 	 	—	 	 	 	—	 	
- Installation and Other Services	 	 	720	 	 	 	720	 	 	 	—	 	 	 	—	 	 	 	—	 	
- Decorative Architectural Products	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
- Other Specialty Products	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
 	 	 	
- Total	 	$	721	 	 	$	721	 	 	$	—	 	 	$	—	 	 	$	—	 	

- North America	 	$	721	 	 	$	721	 	 	$	—	 	 	$	—	 	 	$	—	 	
- International, principally Europe	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
 	 	 	
- Total, as above	 	$	721	 	 	$	721	 	 	$	—	 	 	$	—	 	 	$	—	 	

			
Notes:	 	 	
 		
-	 	Data exclude discontinued operations.	
 		
-	 	Business rationalizations and other initiatives include costs and charges for business consolidations, plant closures, headcount reductions, system implementations and other initiatives.	
 Page 5 

 

MASCO CORPORATION
Quarterly Segment Data – 2009
Excluding Costs and Charges for Business Rationalizations and Other Initiatives
and Impairment Charges for Goodwill and Other Intangible Assets – Unaudited
(dollars in millions)
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Year	 	 	Qtr. 4	 	 	Qtr. 3	 	 	Qtr. 2	 	 	Qtr. 1	 	
Net Sales:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
- Cabinets and Related Products	 	$	1,674	 	 	$	426	 	 	$	434	 	 	$	419	 	 	$	395	 	
- Plumbing Products	 	 	2,564	 	 	 	671	 	 	 	678	 	 	 	631	 	 	 	584	 	
- Installation and Other Services	 	 	1,256	 	 	 	295	 	 	 	332	 	 	 	312	 	 	 	317	 	
- Decorative Architectural Products	 	 	1,714	 	 	 	349	 	 	 	474	 	 	 	505	 	 	 	386	 	
- Other Specialty Products	 	 	584	 	 	 	157	 	 	 	166	 	 	 	146	 	 	 	115	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
- Total	 	$	7,792	 	 	$	1,898	 	 	$	2,084	 	 	$	2,013	 	 	$	1,797	 	

- North America	 	$	6,135	 	 	$	1,441	 	 	$	1,630	 	 	$	1,630	 	 	$	1,434	 	
- International, principally Europe	 	 	1,657	 	 	 	457	 	 	 	454	 	 	 	383	 	 	 	363	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
- Total, as above	 	$	7,792	 	 	$	1,898	 	 	$	2,084	 	 	$	2,013	 	 	$	1,797	 	

Operating (Loss) Profit:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
- Cabinets and Related Products	 	$	(21	)	 	$	9	 	 	$	(9	)	 	$	(2	)	 	$	(19	)	
- Plumbing Products	 	 	295	 	 	 	80	 	 	 	99	 	 	 	78	 	 	 	38	 	
- Installation and Other Services	 	 	(107	)	 	 	(25	)	 	 	(27	)	 	 	(27	)	 	 	(28	)	
- Decorative Architectural Products	 	 	376	 	 	 	62	 	 	 	123	 	 	 	116	 	 	 	75	 	
- Other Specialty Products	 	 	27	 	 	 	8	 	 	 	16	 	 	 	8	 	 	 	(5	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
- Total	 	$	570	 	 	$	134	 	 	$	202	 	 	$	173	 	 	$	61	 	

- North America	 	$	394	 	 	$	75	 	 	$	139	 	 	$	141	 	 	$	39	 	
- International, principally Europe	 	 	176	 	 	 	59	 	 	 	63	 	 	 	32	 	 	 	22	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
- Total, as above	 	$	570	 	 	$	134	 	 	$	202	 	 	$	173	 	 	$	61	 	

General Corporate Expense (GCE), Net	 	 	136	 	 	 	42	 	 	 	36	 	 	 	27	 	 	 	31	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Accelerated Stock Compensation Expense	 	 	6	 	 	 	—	 	 	 	—	 	 	 	6	 	 	 	—	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Loss on Corporate Fixed Assets, Net	 	 	2	 	 	 	—	 	 	 	—	 	 	 	2	 	 	 	—	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Charge for Litigation Settlement	 	 	7	 	 	 	—	 	 	 	7	 	 	 	—	 	 	 	—	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Charge for Defined-Benefit Plan Curtailment	 	 	8	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	8	 	

Operating Profit (after GCE and Adjustments)	 	 	411	 	 	 	92	 	 	 	159	 	 	 	138	 	 	 	22	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Other Income (Expense), Net	 	 	(206	)	 	 	(49	)	 	 	(49	)	 	 	(49	)	 	 	(59	)	

Income (Loss) from Continuing Operations before Income Taxes	 	$	205	 	 	$	43	 	 	$	110	 	 	$	89	 	 	$	(37	)	

Margins:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
- Cabinets and Related Products	 	 	-1.3	%	 	 	2.1	%	 	 	-2.1	%	 	 	-0.5	%	 	 	-4.8	%	
- Plumbing Products	 	 	11.5	%	 	 	11.9	%	 	 	14.6	%	 	 	12.4	%	 	 	6.5	%	
- Installation and Other Services	 	 	-8.5	%	 	 	-8.5	%	 	 	-8.1	%	 	 	-8.7	%	 	 	-8.8	%	
- Decorative Architectural Products	 	 	21.9	%	 	 	17.8	%	 	 	25.9	%	 	 	23.0	%	 	 	19.4	%	
- Other Specialty Products	 	 	4.6	%	 	 	5.1	%	 	 	9.6	%	 	 	5.5	%	 	 	-4.3	%	
- Total	 	 	7.3	%	 	 	7.1	%	 	 	9.7	%	 	 	8.6	%	 	 	3.4	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
- North America	 	 	6.4	%	 	 	5.2	%	 	 	8.5	%	 	 	8.7	%	 	 	2.7	%	
- International, principally Europe	 	 	10.6	%	 	 	12.9	%	 	 	13.9	%	 	 	8.4	%	 	 	6.1	%	
- Total, as above	 	 	7.3	%	 	 	7.1	%	 	 	9.7	%	 	 	8.6	%	 	 	3.4	%	

Notes:		
 		
-	 	Data exclude discontinued operations.	
 		
-	 	Operating (loss) profit and margins by segment and geographic area are before general corporate expense, charge for defined-benefit plan curtailment, accelerated stock compensation expense, loss on corporate fixed assets, net and charge for litigation settlement.	
 		
-	 	See 2009 Costs and Charges for Business Rationalizations and Other Initiatives — page 8.	
 Page 6 

 

MASCO CORPORATION
Quarterly Segment Data — 2009
Including Costs and Charges for Business Rationalizations and Other Initiatives
and Impairment Charges for Goodwill and Other Intangible Assets — Unaudited
(dollars in millions)
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Year	 	 	Qtr. 4	 	 	Qtr. 3	 	 	Qtr. 2	 	 	Qtr. 1	 	
Net Sales:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
- Cabinets and Related Products	 	$	1,674	 	 	$	426	 	 	$	434	 	 	$	419	 	 	$	395	 	
- Plumbing Products	 	 	2,564	 	 	 	671	 	 	 	678	 	 	 	631	 	 	 	584	 	
- Installation and Other Services	 	 	1,256	 	 	 	295	 	 	 	332	 	 	 	312	 	 	 	317	 	
- Decorative Architectural Products	 	 	1,714	 	 	 	349	 	 	 	474	 	 	 	505	 	 	 	386	 	
- Other Specialty Products	 	 	584	 	 	 	157	 	 	 	166	 	 	 	146	 	 	 	115	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
- Total	 	$	7,792	 	 	$	1,898	 	 	$	2,084	 	 	$	2,013	 	 	$	1,797	 	

- North America	 	$	6,135	 	 	$	1,441	 	 	$	1,630	 	 	$	1,630	 	 	$	1,434	 	
- International, principally Europe	 	 	1,657	 	 	 	457	 	 	 	454	 	 	 	383	 	 	 	363	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
- Total, as above	 	$	7,792	 	 	$	1,898	 	 	$	2,084	 	 	$	2,013	 	 	$	1,797	 	

Operating (Loss) Profit:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
- Cabinets and Related Products	 	$	(64	)	 	$	(8	)	 	$	(16	)	 	$	(12	)	 	$	(28	)	
- Plumbing Products	 	 	237	 	 	 	35	 	 	 	93	 	 	 	74	 	 	 	35	 	
- Installation and Other Services	 	 	(131	)	 	 	(27	)	 	 	(34	)	 	 	(34	)	 	 	(36	)	
- Decorative Architectural Products	 	 	375	 	 	 	62	 	 	 	122	 	 	 	116	 	 	 	75	 	
- Other Specialty Products	 	 	(199	)	 	 	(215	)	 	 	16	 	 	 	7	 	 	 	(7	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
- Total	 	$	218	 	 	$	(153	)	 	$	181	 	 	$	151	 	 	$	39	 	

- North America	 	$	93	 	 	$	(168	)	 	$	123	 	 	$	119	 	 	$	19	 	
- International, principally Europe	 	 	125	 	 	 	15	 	 	 	58	 	 	 	32	 	 	 	20	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
- Total, as above	 	$	218	 	 	$	(153	)	 	$	181	 	 	$	151	 	 	$	39	 	

General Corporate Expense (GCE), Net	 	 	140	 	 	 	44	 	 	 	36	 	 	 	27	 	 	 	33	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Accelerated Stock Compensation Expense	 	 	6	 	 	 	—	 	 	 	—	 	 	 	6	 	 	 	—	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Loss on Corporate Fixed Assets, Net	 	 	2	 	 	 	—	 	 	 	—	 	 	 	2	 	 	 	—	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Charge for Litigation Settlement	 	 	7	 	 	 	—	 	 	 	7	 	 	 	—	 	 	 	—	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Charge for Defined-Benefit Plan Curtailment	 	 	8	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	8	 	

Operating (Loss) Profit (after GCE and Adjustments)	 	 	55	 	 	 	(197	)	 	 	138	 	 	 	116	 	 	 	(2	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Other Income (Expense), Net	 	 	(206	)	 	 	(49	)	 	 	(49	)	 	 	(49	)	 	 	(59	)	

Income (Loss) from Continuing Operations before Income Taxes	 	$	(151	)	 	$	(246	)	 	$	89	 	 	$	67	 	 	$	(61	)	

Margins:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
- Cabinets and Related Products	 	 	-3.8	%	 	 	-1.9	%	 	 	-3.7	%	 	 	-2.9	%	 	 	-7.1	%	
- Plumbing Products	 	 	9.2	%	 	 	5.2	%	 	 	13.7	%	 	 	11.7	%	 	 	6.0	%	
- Installation and Other Services	 	 	-10.4	%	 	 	-9.2	%	 	 	-10.2	%	 	 	-10.9	%	 	 	-11.4	%	
- Decorative Architectural Products	 	 	21.9	%	 	 	17.8	%	 	 	25.7	%	 	 	23.0	%	 	 	19.4	%	
- Other Specialty Products	 	 	-34.1	%	 	 	-136.9	%	 	 	9.6	%	 	 	4.8	%	 	 	-6.1	%	
- Total	 	 	2.8	%	 	 	-8.1	%	 	 	8.7	%	 	 	7.5	%	 	 	2.2	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
- North America	 	 	1.5	%	 	 	-11.7	%	 	 	7.5	%	 	 	7.3	%	 	 	1.3	%	
- International, principally Europe	 	 	7.5	%	 	 	3.3	%	 	 	12.8	%	 	 	8.4	%	 	 	5.5	%	
- Total, as above	 	 	2.8	%	 	 	-8.1	%	 	 	8.7	%	 	 	7.5	%	 	 	2.2	%	

Notes:	
 		
-	 	Data exclude discontinued operations.	
 		
-	 	Operating (loss) profit and margins by segment and geographic area are before general corporate expense, charge for defined benefit plan curtailment, accelerated stock compensation expense, loss on corporate fixed assets, net and charge for litigation settlement.	
 		
-	 	See 2009 Costs and Charges for Business Rationalizations and Other Initiatives — page 8.	
 Page 7 

 

MASCO CORPORATION
Quarterly Segment Data — 2009
Costs and Charges for Business Rationalizations and Other Initiatives
and Impairment Charges for Goodwill and Other Intangible Assets — Unaudited
(in millions)
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Year	 	 	Qtr. 4	 	 	Qtr. 3	 	 	Qtr. 2	 	 	Qtr. 1	 	
Business Rationalizations & Other Initiatives	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
- Cabinets and Related Products	 	$	43	 	 	$	17	 	 	$	7	 	 	$	10	 	 	$	9	 	
- Plumbing Products	 	 	19	 	 	 	6	 	 	 	6	 	 	 	4	 	 	 	3	 	
- Installation and Other Services	 	 	24	 	 	 	2	 	 	 	7	 	 	 	7	 	 	 	8	 	
- Decorative Architectural Products	 	 	1	 	 	 	—	 	 	 	1	 	 	 	—	 	 	 	—	 	
- Other Specialty Products	 	 	3	 	 	 	—	 	 	 	—	 	 	 	1	 	 	 	2	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
- Total	 	$	90	 	 	$	25	 	 	$	21	 	 	$	22	 	 	$	22	 	

- North America	 	$	78	 	 	$	20	 	 	$	16	 	 	$	22	 	 	$	20	 	
- International, principally Europe	 	 	12	 	 	 	5	 	 	 	5	 	 	 	—	 	 	 	2	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
- Total, as above	 	$	90	 	 	$	25	 	 	$	21	 	 	$	22	 	 	$	22	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
General Corporate Expense (GCE), Net	 	 	4	 	 	 	2	 	 	 	—	 	 	 	—	 	 	 	2	 	

- Total	 	$	94	 	 	$	27	 	 	$	21	 	 	$	22	 	 	$	24	 	

Goodwill and Other Intangible Assets Impairment	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
- Cabinets and Related Products	 	$	—	 	 	$	—	 	 	$	—	 	 	$	—	 	 	$	—	 	
- Plumbing Products	 	 	39	 	 	 	39	 	 	 	—	 	 	 	—	 	 	 	—	 	
- Installation and Other Services	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
- Decorative Architectural Products	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
- Other Specialty Products	 	 	223	 	 	 	223	 	 	 	—	 	 	 	—	 	 	 	—	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
- Total	 	$	262	 	 	$	262	 	 	$	—	 	 	$	—	 	 	$	—	 	

- North America	 	$	223	 	 	$	223	 	 	$	—	 	 	$	—	 	 	$	—	 	
- International, principally Europe	 	 	39	 	 	 	39	 	 	 	—	 	 	 	—	 	 	 	—	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
- Total, as above	 	$	262	 	 	$	262	 	 	$	—	 	 	$	—	 	 	$	—	 	

			
Notes:	
 		
-	 	Data exclude discontinued operations.	
 		
-	 	Business rationalizations and other initiatives include costs and charges for business consolidations, plant closures, headcount reductions, system implementations and other initiatives.	
 Page 8 

 

MASCO CORPORATION
Other Income (Expense), Net
2010 & 2009 — by Quarter — Unaudited
(in millions)
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	2010	 	 	2009	 	
 	 	Year	 	 	Qtr. 4	 	 	Qtr. 3	 	 	Qtr. 2	 	 	Qtr. 1	 	 	Year	 	 	Qtr. 4	 	 	Qtr. 3	 	 	Qtr. 2	 	 	Qtr. 1	 	
Interest Expense	 	$	(251	)	 	$	(63	)	 	$	(63	)	 	$	(67	)	 	$	(58	)	 	$	(225	)	 	$	(56	)	 	$	(56	)	 	$	(57	)	 	$	(56	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income from Cash and Cash Investments	 	 	6	 	 	 	2	 	 	 	2	 	 	 	1	 	 	 	1	 	 	 	7	 	 	 	1	 	 	 	2	 	 	 	1	 	 	 	3	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Other Interest Income	 	 	1	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	1	 	 	 	2	 	 	 	1	 	 	 	1	 	 	 	—	 	 	 	—	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Realized Gains (Losses) from Financial Investments, Net	 	 	9	 	 	 	11	 	 	 	(3	)	 	 	1	 	 	 	—	 	 	 	3	 	 	 	3	 	 	 	—	 	 	 	—	 	 	 	—	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Impairment Charges for Financial Investments	 	 	(34	)	 	 	(1	)	 	 	—	 	 	 	(33	)	 	 	—	 	 	 	(10	)	 	 	—	 	 	 	—	 	 	 	(7	)	 	 	(3	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Other, Net	 	 	(9	)	 	 	(4	)	 	 	—	 	 	 	(5	)	 	 	—	 	 	 	17	 	 	 	2	 	 	 	4	 	 	 	14	 	 	 	(3	)	

Total Other Income (Expense), Net	 	$	(278	)	 	$	(55	)	 	$	(64	)	 	$	(103	)	 	$	(56	)	 	$	(206	)	 	$	(49	)	 	$	(49	)	 	$	(49	)	 	$	(59	)	

			
Notes:	
 		
-	 	Data exclude discontinued operations.	
 		
-	 	Other, Net, in 2010 includes currency (losses) gains of ($1) million, ($5) million, $4 million and $-— for the first, second, third and fourth quarters, respectively.	
 		
-	 	Other, Net, in 2009 includes currency (losses) gains of ($2) million, $11 million, $5 million, and $3 million for the first, second, third and fourth quarters, respectively.	
 Page 9 

 

MASCO CORPORATION
Condensed Consolidated Balance Sheets- Unaudited
(in millions)
 	 	 	 	 	 	 	 	 	
 	 	December 31,	 	 	December 31,	 	
 	 	2010	 	 	2009	 	
Assets	 	 	 	 	 	 	 	 	
Current Assets:	 	 	 	 	 	 	 	 	
Cash and Cash Investments	 	$	1,715	 	 	$	1,413	 	
Receivables	 	 	888	 	 	 	983	 	
Inventories	 	 	732	 	 	 	743	 	
Prepaid Expenses and Other	 	 	129	 	 	 	312	 	
 	 	 	 	 	 	 	
Total Current Assets	 	 	3,464	 	 	 	3,451	 	
Property and Equipment, Net	 	 	1,737	 	 	 	1,981	 	
Goodwill	 	 	2,383	 	 	 	3,108	 	
Other Intangible Assets, Net	 	 	269	 	 	 	290	 	
Other Assets	 	 	287	 	 	 	345	 	
 	 	 	 	 	 	 	
Total Assets	 	$	8,140	 	 	$	9,175	 	

Liabilities	 	 	 	 	 	 	 	 	
Current Liabilities:	 	 	 	 	 	 	 	 	
Notes Payable	 	$	66	 	 	$	364	 	
Accounts Payable	 	 	602	 	 	 	578	 	
Accrued Liabilities	 	 	819	 	 	 	839	 	
 	 	 	 	 	 	 	
Total Current Liabilities	 	 	1,487	 	 	 	1,781	 	
Long-Term Debt	 	 	4,032	 	 	 	3,604	 	
Deferred Income Taxes and Other	 	 	1,039	 	 	 	973	 	
 	 	 	 	 	 	 	
Total Liabilities	 	 	6,558	 	 	 	6,358	 	
Shareholders’ Equity	 	 	1,582	 	 	 	2,817	 	
 	 	 	 	 	 	 	
Total Liabilities and Shareholders’ Equity	 	$	8,140	 	 	$	9,175	 	
 	 	 	 	 	 	 	
 Page 10 

 

MASCO CORPORATION
GAAP Reconciliation of Sales Growth
Excluding the Effect of Acquisitions and Currency Translation- Unaudited
(dollars in millions)
 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended	 	 	 	 	
 	 	December 31,	 	 	 	 	
 	 	2010	 	 	2009	 	 	% ∆	 	
Net Sales, As Reported	 	$	1,735	 	 	$	1,898	 	 	 	-9	%	
- Acquisitions	 	 	—	 	 	 	—	 	 	 	 	 	
- Currency Translation	 	 	30	 	 	 	—	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	
Net Sales, Excluding Acquisitions and Currency Translation	 	$	1,765	 	 	$	1,898	 	 	 	-7	%	

North America Net Sales, As Reported	 	$	1,312	 	 	$	1,441	 	 	 	-9	%	
- Acquisitions	 	 	—	 	 	 	—	 	 	 	 	 	
- Currency Translation	 	 	(2	)	 	 	—	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	
North America Net Sales, Excluding Acquisitions and Currency Translation	 	$	1,310	 	 	$	1,441	 	 	 	-9	%	

International Net Sales, As Reported	 	$	423	 	 	$	457	 	 	 	-7	%	
- Acquisitions	 	 	—	 	 	 	—	 	 	 	 	 	
- Currency Translation	 	 	32	 	 	 	—	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	
International Net Sales, Excluding Acquisitions and Currency Translation	 	$	455	 	 	$	457	 	 	 	0	%	

 	 	Twelve Months Ended	 	 	 	 	
 	 	December 31,	 	 	 	 	
 	 	2010	 	 	2009	 	 	% ∆	 	
As Reported	 	$	7,592	 	 	$	7,792	 	 	 	-3	%	
- Acquisitions	 	 	—	 	 	 	—	 	 	 	 	 	
- Currency Translation	 	 	48	 	 	 	—	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	
Net Sales, Excluding Acquisitions and Currency Translation	 	$	7,640	 	 	$	7,792	 	 	 	-2	%	

North America Net Sales, As Reported	 	$	5,929	 	 	$	6,135	 	 	 	-3	%	
- Acquisitions	 	 	—	 	 	 	—	 	 	 	 	 	
- Currency Translation	 	 	(22	)	 	 	—	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	
North America Net Sales, Excluding Acquisitions and Currency Translation	 	$	5,907	 	 	$	6,135	 	 	 	-4	%	

International Net Sales, As Reported	 	$	1,663	 	 	$	1,657	 	 	 	0	%	
- Acquisitions	 	 	—	 	 	 	—	 	 	 	 	 	
- Currency Translation	 	 	70	 	 	 	—	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	
International Net Sales, Excluding Acquisitions and Currency Translation	 	$	1,733	 	 	$	1,657	 	 	 	5	%	

			
Notes:	
 		
-	 	Data exclude discontinued operations.	
 		
-	 	The Company presents information comparing results from one period to another excluding the results of businesses acquired in order to assess the performance of the underlying businesses and to assess to what extent acquisitions are impacting growth.	
 		
-	 	The Company also presents information comparing results of International operations from one period to another using constant exchange rates. Current period results for foreign entities are converted into U.S. dollars using the prior period’s exchange rates, rather than exchange rates for the current period. The Company presents this information to assess how the underlying businesses performed in local currencies before taking into account currency fluctuations.	
 		
-	 	The currency translation effect on North American net sales includes currency translation related to Canadian business units.	
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MASCO CORPORATION
GAAP Reconciliation of Operating (Loss) Profit and Margins- Unaudited
(dollars in millions)
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended December 31,	 	
 	 	2010	 	 	2009	 	
 	 	$	 	 	Margin	 	 	$	 	 	Margin	 	
Operating (Loss) Profit, As Reported	 	$	(798	)	 	 	-46.0	%	 	$	(197	)	 	 	-10.4	%	
Impairment Charges for Goodwill and Other	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Intangible Assets	 	 	721	 	 	 	 	 	 	 	262	 	 	 	 	 	
Business Rationalizations and Other Initiatives	 	 	104	 	 	 	 	 	 	 	27	 	 	 	 	 	
Charge for Litigation Settlement	 	 	—	 	 	 	 	 	 	 	—	 	 	 	 	 	
Charge for Defined-Benefit Plan Curtailment	 	 	—	 	 	 	 	 	 	 	—	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating Profit, As Reconciled	 	$	27	 	 	 	1.6	%	 	$	92	 	 	 	4.8	%	

 	 	Twelve Months Ended December 31,	 	
 	 	2010	 	 	2009	 	
 	 	$	 	 	Margin	 	 	$	 	 	Margin	 	
Operating (Loss) Profit, As Reported	 	$	(499	)	 	 	-6.6	%	 	$	55	 	 	 	0.7	%	
Impairment Charges for Goodwill and Other	 	 	721	 	 	 	 	 	 	 	262	 	 	 	 	 	
Intangible Assets	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Business Rationalizations and Other Initiatives	 	 	208	 	 	 	 	 	 	 	94	 	 	 	 	 	
Charge for Litigation Settlement	 	 	—	 	 	 	 	 	 	 	7	 	 	 	 	 	
Charge for Defined-Benefit Plan Curtailment	 	 	—	 	 	 	 	 	 	 	8	 	 	 	 	 	
Loss on Sale of Corporate Assets, Net	 	 	—	 	 	 	 	 	 	 	2	 	 	 	 	 	
Accelerated Stock Compensation Expense	 	 	—	 	 	 	 	 	 	 	6	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating Profit, As Reconciled	 	$	430	 	 	 	5.7	%	 	$	434	 	 	 	5.6	%	

			
Notes:	
 		
-	 	Data exclude discontinued operations.	
 		
-	 	The Company believes that certain non-GAAP performance measures and ratios used in managing the business may provide additional meaningful comparisons between current results and results in prior periods. Non-GAAP performance measures and ratios should be viewed in addition to, and not as an alternative for, the Company’s reported results under accounting principles generally accepted in the United States.	
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MASCO CORPORATION
GAAP Reconciliation of Operating Loss and Shareholders’ Equity- Unaudited
(in millions)
 	 	 	 	 	
 	 	Twelve	 	
 	 	Months Ended	 	
 	 	31-Dec	 	
 	 	2010	 	
Operating Loss, As Reported	 	$	(499	)	
Impairment Charges for Goodwill and Other Intangible Assets, Continuing Operations	 	 	721	 	
Charge for Defined-Benefit Plan Curtailment	 	 	—	 	
Charge for Litigation Settlement	 	 	—	 	
 	 	 	 	
Operating Profit, As Reconciled	 	$	222	 	

 	 	Twelve Months Ended	 	
 	 	December 31,	 	
 	 	2010	 	 	2009	 	
Shareholders’ Equity, As Reported	 	$	1,582	 	 	$	2,817	 	
Impairment Charges for Goodwill and Other Intangible Assets (after tax)	 	 	593	 	 	 	180	 	
Charge for Defined-Benefit Plan Curtailment (after tax)	 	 	—	 	 	 	5	 	
Charge for Litigation Settlement (after tax)	 	 	—	 	 	 	4	 	
 	 	 	 	 	 	 	
Shareholders’ Equity, As Reconciled	 	$	2,175	 	 	$	3,006	 	

			
Notes:	
 		
-	 	Data exclude discontinued operations.	
 		
-	 	The Company believes that certain non-GAAP performance measures and ratios used in managing the business may provide additional meaningful comparisons between current results and results in prior periods. Non-GAAP performance measures and ratios should be viewed in addition to, and not as an alternative for, the Company’s reported results under accounting principles generally accepted in the United States.	
 		
-	 	This information is provided as detail for the calculation of return on invested capital (“ROIC”) which is after-tax operating profit (last twelve months, as reconciled) divided by the total of average debt (net of average cash) and average shareholders’ equity.	
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