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) April 26, 2010
 
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))	

   

 

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 April 27, 2010 reporting Masco Corporation’s financial results for the first quarter of 2010 and certain other information and supplemental information prepared for use in connection with the financial results for the first quarter 2010. On April 27, 2010, Masco Corporation will hold an investor conference call and web cast to discuss financial results for the first quarter 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 2.05 Costs Associated with Exit or Disposal Activities.
     As previously announced in February 2010, the Company is combining its Builder Cabinet Group and Retail Cabinet Group to form Masco Cabinetry. In connection with this combination, the Company anticipates that it will close two manufacturing facilities associated with ready-to-assemble and other non-core in-stock assembled product lines in the first half of 2011. For further information, please see the first paragraph under the caption “Subsequent Event” in our earnings release. A copy of our earnings release is attached as an exhibit to this Current Report on Form 8-K and such paragraph is incorporated by reference herein.
Item 9.01. Financial Statements and Exhibits.
     (d) Exhibits.
99 Press Release of Masco Corporation dated April 27, 2010 reporting Masco Corporation’s financial results for the first quarter 2010 and certain other information and supplemental information prepared for use in connection with the financial results for the first quarter 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 	 	
 	
April 26, 2010

 
EXHIBIT INDEX
99 Press Release of Masco Corporation dated April 27, 2010 reporting Masco Corporation’s financial results for the first quarter 2010 and certain other information and supplemental information prepared for use in connection with the financial results for the first quarter 2010.

Exhibit 99

	 	FOR IMMEDIATE RELEASE	
Investor / Media Contact
Maria Duey
Vice President — Investor Relations
313.792.5500
maria_duey@mascohq.com
MASCO CORPORATION REPORTS FIRST QUARTER RESULTS
           2010 First Quarter Commentary

 	•	 	Sales increased three percent to $1.9 billion.	
 		
 	•	 	Markets for most of our products continue to show modest improvement.	
 		
 	•	 	Comparing the first quarter of 2010 to the first quarter of 2009:	

 	•	 	Sales to key retailers increased two percent.	
 		
 	•	 	Our International operations had another strong quarter.	
 		
 	•	 	Gross profit margins and operating profit improved significantly.	

 	•	 	Loss from continuing operations was $(.02) per common share compared to a loss of $(.24) in first quarter of 2009.	
 		
 	•	 	We issued $500 million of 7.125 percent ten-year notes and retired $300 million of debt.	
 		
 	•	 	We had $1.4 billion of cash at March 31, 2010.	
Taylor, Mich., (April 26, 2010) — Masco Corporation (NYSE: MAS) today reported that net sales from continuing operations for the quarter ended March 31, 2010 increased three percent to $1.9 billion compared with $1.8 billion for the first quarter of 2009. North American sales were flat and International sales increased 16 percent. In local currencies, International sales increased nine percent compared with the first quarter of 2009.
The first quarter of 2010 results were positively affected by increased sales volume of plumbing products and windows, a more favorable product mix of paints and stains, and the improved relationship between selling prices and commodity costs. First quarter 2010 results were also positively affected by the benefits associated with business rationalizations and other cost savings initiatives. Such increases were partially offset by lower sales volume of installation and other services and lower selling prices for certain products.
(Loss) from continuing operations was $(.02) per common share in the first quarter of 2010 compared to (loss) from continuing operations of $(.24) per common share in the first quarter of 2009.
“We are very pleased with our first quarter 2010 financial results. Excluding the benefit from foreign currency translation our sales increased modestly from the first quarter 2009 — the first positive quarterly sales comparison in the last several years. While the quarter started slowly, business activity picked up as the weather improved in both North America
 1 

 

and Europe and we have strong momentum going into the second quarter, particularly on the retail side of the business,” said Masco’s CEO Tim Wadhams. “Innovative new products drove market share gains and we continued to drive strong incremental margins in the quarter. We are proud of the Masco Team, worldwide, as we continue to focus on strengthening our leadership brands and enhancing customer experience with our products and services through innovation and quality while continuing to drive lean principles to improve our execution,” said 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 the first quarters of 2010 and 2009, we incurred costs and charges of $14 million pre-tax ($.03 per common share, after tax) and $24 million pre-tax ($.04 per common share, after tax), respectively, related to these initiatives.
The unusual relationship between pre-tax income and tax expense in the first quarter of 2010 principally reflects $9 million ($.03 per common share) of additional tax expenses related to previously established accruals for changes in uncertain tax positions. In the first quarter of 2009, although the Company had a loss before income tax of $61 million, tax expense was $17 million ($.05 per common share) reflecting income tax liabilities in certain jurisdictions where losses provided no tax benefit.
We retired $300 million of floating rate notes that matured in March. On March 10, 2010, we issued $500 million of 7.125 percent ten-year notes. As a result, the Company’s interest expense is expected to increase by approximately $30 million ($.05 per common share, after tax) for the full-year 2010.
Subsequent Event
As previously announced in February 2010, the Company is combining its Builder Cabinet Group and Retail Cabinet Group to form Masco Cabinetry. Masco Cabinetry continues to review its product offerings and has determined in late April that it will discontinue the manufacture of ready-to-assemble and other non-core in-stock assembled product lines as they are not consistent with Masco Cabinetry’s strategy of growth through brand building and innovation. These product lines had aggregate annual sales of approximately $200 million in 2009. The Company anticipates it will close two manufacturing facilities associated with these products in the first half of 2011. The Company expects to incur approximately $115 million (principally recognized ratably over the next 15 months) of pre-tax charges related to the anticipated plant closures including approximately $90 million related to non-cash charges principally associated with property, plant and equipment and approximately $25 million of other cash charges. These charges, including the previously announced integration charges of approximately $40 million, will result in aggregate pre-tax charges of approximately $155 million related to the integration of the Builder and Retail Cabinet groups into Masco Cabinetry.
Based on the incremental actions outlined above, the Company anticipates that full year 2010 rationalization charges will aggregate approximately $140 million compared with the previously announced $70 million.
 2 

 

Outlook 2010
We expect that business conditions in 2010 will continue to show modest improvement compared to 2009. While we are concerned about the impact of current unemployment levels, foreclosure activity and access to financing, we believe that housing starts will improve in 2010 and will increase to a range of 600,000 to 700,000 units from 554,000 units in 2009.
While we anticipate that expenditures on repair and remodel activity will improve modestly in 2010 from 2009 levels, we believe that big-ticket items will continue to be deferred, in the short-term, until general economic conditions, credit availability and home prices improve.
We are confident that the long-term fundamentals for the new home construction and home improvement markets are positive. We believe that our strong financial position, together with our current strategy of investing in leadership brands (including: KraftMaid and Merillat cabinets, Delta and Hansgrohe faucets, Behr paint and Milgard windows), our continued focus on innovation and our commitment to lean principles will allow us to drive long-term growth and create value for our shareholders.
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 first quarter supplemental material, including a presentation in PDF format, will be distributed after the market closes on April 26, 2010 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, April 27, 2010 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) 905-3226 (confirmation #5831344). 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 #5831344) approximately two hours after the end of the call and will continue through May 4, 2010.
 3 

 

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 .
# # #
Statements contained herein, or otherwise made available, that reflect the Company’s views about its future performance may constitute “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. These views involve risks and uncertainties that are difficult to predict and the Company’s results may differ materially from the results discussed in such forward-looking statements. For further information, refer to our most recent Annual Report on Form 10-K (particularly the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections) and to any subsequent Quarterly Reports on Form 10-Q, all of which are on file with the Securities and Exchange Commission. The Company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. Certain of the financial and statistical data made available are non-GAAP financial measures as defined by the SEC’s Regulation G. The Company believes that such non-GAAP performance measures and ratios used in managing the business may provide users with 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 SEC and is available on Masco’s Web site.
 4 

 

MASCO CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS — UNAUDITED
For the Three Months Ended March 31, 2010 and 2009
(In Millions, Except Per Common Share Data)
 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended	 	
 	 	March 31,	 	
 	 	2010	 	 	2009	 	
Net sales	 	$	1,852	 	 	$	1,797	 	
Cost of sales	 	 	1,360	 	 	 	1,384	 	
 	 	 	 	 	 	 	
Gross profit	 	 	492	 	 	 	413	 	
Selling, general and administrative expenses	 	 	414	 	 	 	407	 	
Charge for defined-benefit plan curtailment	 	 	—	 	 	 	8	 	
 	 	 	 	 	 	 	
Operating profit (loss)	 	 	78	 	 	 	(2	)	
Other income (expense), net	 	 	(56	)	 	 	(59	)	
 	 	 	 	 	 	 	
Income (loss) from continuing operations before income taxes	 	 	22	 	 	 	(61	)	
Income tax expense	 	 	18	 	 	 	17	 	
 	 	 	 	 	 	 	
Income (loss) from continuing operations	 	 	4	 	 	 	(78	)	
Income from discontinued operations, net	 	 	—	 	 	 	4	 	
 	 	 	 	 	 	 	
Net income (loss)	 	 	4	 	 	 	(74	)	
Less: Net income attributable to non-controlling interest	 	 	11	 	 	 	7	 	
 	 	 	 	 	 	 	
Net (loss) attributable to Masco Corporation	 	$	(7	)	 	$	(81	)	

Earnings (loss) per common share attributable to Masco Corporation (diluted):	 	 	 	 	 	 	 	 	
(Loss) from continuing operations	 	$	(0.02	)	 	$	(0.24	)	
Income from discontinued operations, net	 	 	—	 	 	 	0.01	 	
 	 	 	 	 	 	 	
Net (loss) attributable to Masco Corporation	 	$	(0.02	)	 	$	(0.23	)	

Average diluted common shares outstanding	 	 	350	 	 	 	351	 	

Amounts attributable to Masco Corporation:	 	 	 	 	 	 	 	 	
(Loss) from continuing operations	 	$	(7	)	 	$	(85	)	
Income from discontinued operations, net	 	 	—	 	 	 	4	 	
 	 	 	 	 	 	 	
Net (loss) attributable to Masco Corporation	 	$	(7	)	 	$	(81	)	
 	 	 	 	 	 	 	
 Page 1 

 

Masco Corporation
Key Financial Data As Reported — Unaudited
Q1 — 2010 and 2009 (In Millions, Except Earnings Per Share)
 	 	 	 	 	 	 	 	 	 	 	 	 	
Sales & Earnings	 	3/31/2010	 	 	3/31/2009	 	 	Change	 	
Net Sales	 	$	1,852	 	 	$	1,797	 	 	 	3	%	
Operating Profit (Loss)	 	$	78	 	 	$	(2	)	 	 	N/A	 	
Operating Profit (Loss) % of Net Sales	 	 	4.2	%	 	 	-0.1	%	 	 	430	bps	
Other Income (Expense), Net	 	$	(56	)	 	$	(59	)	 	 	5	%	
Income Tax Expense	 	$	18	 	 	$	17	 	 	 	N/A	 	
(Loss) From Continuing Operations Attributable to Masco Corporation	 	$	(7	)	 	$	(85	)	 	 	N/A	 	
Diluted EPS from Continuing Operations	 	$	(0.02	)	 	$	(0.24	)	 	 	N/A	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating Expenses	 	3/31/2010	 	 	3/31/2009	 	 	Change	 	
Cost of Sales	 	$	1,360	 	 	$	1,384	 	 	 	-2	%	
Gross Margin	 	 	26.6	%	 	 	23.0	%	 	 	360	bps	
SG&A Expenses (Including GCE)	 	$	414	 	 	$	407	 	 	 	2	%	
SG&A as a % of net sales	 	 	22.4	%	 	 	22.6	%	 	 	20	bps	
General Corporate Expense (GCE)	 	$	30	 	 	$	33	 	 	 	-9	%	
General Corp Expense as a % of net sales	 	 	1.6	%	 	 	1.8	%	 	 	20	bps	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Business Segments	 	3/31/2010	 	 	3/31/2009	 	 	Change	 	
Cabinets and Related Products:	 	 	 	 	 	 	 	 	 	 	 	 	
Net Sales	 	$	403	 	 	$	395	 	 	 	2	%	
Operating (Loss)	 	$	(15	)	 	$	(28	)	 	 	N/A	 	
Operating (Loss) % of Net Sales	 	 	-3.7	%	 	 	-7.1	%	 	 	340	bps	
Plumbing Products:	 	 	 	 	 	 	 	 	 	 	 	 	
Net Sales	 	$	663	 	 	$	584	 	 	 	14	%	
Operating Profit	 	$	84	 	 	$	35	 	 	 	N/A	 	
Operating Profit % of Net Sales	 	 	12.7	%	 	 	6.0	%	 	 	670	bps	
Installation and Other Services:	 	 	 	 	 	 	 	 	 	 	 	 	
Net Sales	 	$	273	 	 	$	317	 	 	 	-14	%	
Operating (Loss)	 	$	(42	)	 	$	(36	)	 	 	N/A	 	
Operating (Loss) % of Net Sales	 	 	-15.4	%	 	 	-11.4	%	 	 	(400)	bps	
Decorative Architectural Products:	 	 	 	 	 	 	 	 	 	 	 	 	
Net Sales	 	$	389	 	 	$	386	 	 	 	1	%	
Operating Profit	 	$	87	 	 	$	75	 	 	 	N/A	 	
Operating Profit % of Net Sales	 	 	22.4	%	 	 	19.4	%	 	 	300	bps	
Other Specialty Products:	 	 	 	 	 	 	 	 	 	 	 	 	
Net Sales	 	$	124	 	 	$	115	 	 	 	8	%	
Operating (Loss)	 	$	(6	)	 	$	(7	)	 	 	N/A	 	
Operating (Loss) % of Net Sales	 	 	-4.8	%	 	 	-6.1	%	 	 	130	bps	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Segment Reported:	 	 	 	 	 	 	 	 	 	 	 	 	
Net Sales	 	$	1,852	 	 	$	1,797	 	 	 	3	%	
Operating Profit	 	$	108	 	 	$	39	 	 	 	N/A	 	
Operating Profit % of Net Sales	 	 	5.8	%	 	 	2.2	%	 	 	360	bps	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Change in Key Retailer Sales	 	 	2	%	 	 	-11	%	 	 	 	 	
 Page 2 

 

Masco Corporation
Key Financial Data As Reported — Unaudited
Q1 — 2010 and 2009 (In Millions, Except Earnings Per Share)
 	 	 	 	 	 	 	 	 	 	 	 	 	
Business Regions	 	3/31/2010	 	 	3/31/2009	 	 	Change	 	
North America	 	 	 	 	 	 	 	 	 	 	 	 	
Net Sales	 	$	1,430	 	 	$	1,434	 	 	 	0	%	
Operating Profit	 	$	64	 	 	$	19	 	 	 	N/A	 	
Operating Profit % of Net Sales	 	 	4.5	%	 	 	1.3	%	 	 	320	bps	
International, principally Europe	 	 	 	 	 	 	 	 	 	 	 	 	
Net Sales	 	$	422	 	 	$	363	 	 	 	16	%	
Operating Profit	 	$	44	 	 	$	20	 	 	 	N/A	 	
Operating Profit % of Net Sales	 	 	10.4	%	 	 	5.5	%	 	 	490	bps	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Working Capital	 	3/31/2010	 	 	3/31/2009	 	 	Change	 	
Receivable Days	 	 	51	 	 	 	52	 	 	 	(1	)	
Inventory Days	 	 	53	 	 	 	50	 	 	 	3	 	
Payable Days	 	 	49	 	 	 	46	 	 	 	3	 	
Working Capital (Receivables+Inventory-Payables)	 	$	1,279	 	 	$	1,436	 	 	 	-11	%	
Working Capital as a % of Sales (As Reported TTM 1 )	 	 	16.3	%	 	 	16.0	%	 	 	(30)	bps	
 	 	 	 	 	 	 	 	 	
Other	 	3/31/2010	 	 	3/31/2009	 	
Dividend Payments	 	$	27	 	 	$	85	 	
Cash Paid for Share Repurchases 2	 	$	45	 	 	$	11	 	
Common Shares Repurchased 2	 	 	3	 	 	 	2	 	
CAPEX	 	$	26	 	 	$	27	 	
Return on Invested Capital (As Reported TTM 1 )	 	 	1.5	%	 	 	-0.9	%	
Return on Invested Capital (As Reconciled TTM 1 )	 	 	4.3	%	 	 	3.7	%	
Depreciation and Amortization	 	$	60	 	 	$	62	 	
Average diluted common shares outstanding	 	 	350	 	 	 	351	 	
 	 	 	 	 	 	 	 	 	
Balance Sheet Information	 	3/31/2010	 	 	12/31/2009	 	
Long-Term Debt	 	$	4,100	 	 	$	3,604	 	
Notes Payable	 	$	66	 	 	$	364	 	
Total Debt	 	$	4,166	 	 	$	3,968	 	
Shareholders’ Equity	 	$	2,703	 	 	$	2,817	 	
Debt to Capital	 	 	61	%	 	 	58	%	
Cash	 	$	1,378	 	 	$	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 3 

 

Masco Corporation — 1st 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 (Loss) and Margins — Unaudited	
 	 	 	
13	 	Operating (Loss) Profit and Shareholders’ Equity — Unaudited	

 

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	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	1,852	 	 	$	7,792	 	 	$	1,898	 	 	$	2,084	 	 	$	2,013	 	 	$	1,797	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Cost of Sales	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	1,360	 	 	 	5,774	 	 	 	1,403	 	 	 	1,517	 	 	 	1,470	 	 	 	1,384	 	

Gross Profit	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	492	 	 	 	2,018	 	 	 	495	 	 	 	567	 	 	 	543	 	 	 	413	 	
(Gross Margin as a % of Sales)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	26.6	%	 	 	25.9	%	 	 	26.1	%	 	 	27.2	%	 	 	27.0	%	 	 	23.0	%	
SG&A Expense (before lines 1, 2, 3, 4)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	384	 	 	 	1,546	 	 	 	386	 	 	 	386	 	 	 	400	 	 	 	374	 	
(S,G&A Expense as a % of Sales)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	20.7	%	 	 	19.8	%	 	 	20.3	%	 	 	18.5	%	 	 	19.9	%	 	 	20.8	%	
Operating Profit (before lines 1, 2, 3, 4)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	108	 	 	 	472	 	 	 	109	 	 	 	181	 	 	 	143	 	 	 	39	 	
(Operating Margin as a % of Sales)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	5.8	%	 	 	6.1	%	 	 	5.7	%	 	 	8.7	%	 	 	7.1	%	 	 	2.2	%	
1 General Corporate Expense (GCE), Net	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	30	 	 	 	140	 	 	 	44	 	 	 	36	 	 	 	27	 	 	 	33	 	
S,G&A Expense as a % of Sales (including lines 1,2,3,4)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	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	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	262	 	 	 	262	 	 	 	—	 	 	 	—	 	 	 	—	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating Profit (Loss) per F/S	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	78	 	 	$	55	 	 	$	(197	)	 	$	138	 	 	$	116	 	 	$	(2	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income (Loss) Per Common Share Attributable to	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Masco Corporation (Diluted):	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income (Loss) from Continuing Operations	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	(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 Income (Loss)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	(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 quarter of 2010 include costs and charges related to business rationalizations and other initiatives of $14 million pre-tax ($.03 per common share, after tax).	
 		
-	 	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 — Unaudited
(dollars in millions)
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Year	 	 	Qtr. 4	 	 	Qtr. 3	 	 	Qtr. 2	 	 	Qtr. 1	 	
 	 	 	
Net Sales:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
- Cabinets and Related Products	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	403	 	
- Plumbing Products	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	663	 	
- Installation and Other Services	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	273	 	
- Decorative Architectural Products	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	389	 	
- Other Specialty Products	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	124	 	
 	 	 	
- Total	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	1,852	 	

- North America	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	1,430	 	
- International, principally Europe	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	422	 	
 	 	 	
- Total, as above	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	1,852	 	

Operating (Loss) Profit:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
- Cabinets and Related Products	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	(4	)	
- Plumbing Products	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	85	 	
- Installation and Other Services	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(40	)	
- Decorative Architectural Products	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	87	 	
- Other Specialty Products	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(6	)	
 	 	 	
- Total	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	122	 	

- North America	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	76	 	
- International, principally Europe	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	46	 	
 	 	 	
- Total, as above	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	122	 	

General Corporate Expense (GCE), Net	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	30	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Loss on Corporate Fixed Assets, Net	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Charge for Litigation Settlement	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	

Operating Profit (after GCE and Adjustments)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	92	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Other Income (Expense), Net	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(56	)	

Income (Loss) from Continuing Operations before Income Taxes	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	36	 	

Margins:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
- Cabinets and Related Products	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	-1.0	%	
- Plumbing Products	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	12.8	%	
- Installation and Other Services	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	-14.7	%	
- Decorative Architectural Products	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	22.4	%	
- Other Specialty Products	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	-4.8	%	
- Total	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	6.6	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
- North America	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	5.3	%	
- International, principally Europe	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	10.9	%	
- Total, as above	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	6.6	%	

 	 	Notes:	
-	 	Data exclude discontinued operations.	
-	 	Operating (loss) profit and margins by segment and geographic area are before general corporate expense and loss on corporate fixed	
-	 	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 — Unaudited
(dollars in millions)
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Year	 	 	Qtr. 4	 	 	Qtr. 3	 	 	Qtr. 2	 	 	Qtr. 1	 	
 	 	 	
Net Sales:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
- Cabinets and Related Products	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	403	 	
- Plumbing Products	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	663	 	
- Installation and Other Services	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	273	 	
- Decorative Architectural Products	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	389	 	
- Other Specialty Products	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	124	 	
 	 	 	
- Total	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	1,852	 	

- North America	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	1,430	 	
- International, principally Europe	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	422	 	
 	 	 	
- Total, as above	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	1,852	 	

Operating (Loss) Profit:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
- Cabinets and Related Products	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	(15	)	
- Plumbing Products	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	84	 	
- Installation and Other Services	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(42	)	
- Decorative Architectural Products	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	87	 	
- Other Specialty Products	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(6	)	
 	 	 	
- Total	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	108	 	

- North America	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	64	 	
- International, principally Europe	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	44	 	
 	 	 	
- Total, as above	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	108	 	

General Corporate Expense (GCE), Net	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	30	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Loss on Corporate Fixed Assets, Net	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Charge for Litigation Settlement	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	

Operating Profit (after GCE and Adjustments)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	78	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Other Income (Expense), Net	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(56	)	

Income (Loss) from Continuing Operations before Income Taxes	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	22	 	

Margins:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
- Cabinets and Related Products	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	-3.7	%	
- Plumbing Products	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	12.7	%	
- Installation and Other Services	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	-15.4	%	
- Decorative Architectural Products	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	22.4	%	
- Other Specialty Products	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	-4.8	%	
- Total	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	5.8	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
- North America	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	4.5	%	
- International, principally Europe	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	10.4	%	
- Total, as above	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	5.8	%	

 	 	Notes:	
-	 	Data exclude discontinued operations.	
-	 	Operating (loss) profit and margins by segment and geographic area are before general corporate expense and loss on corporate fixed	
-	 	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
(in millions)
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Year	 	 	Qtr. 4	 	 	Qtr. 3	 	 	Qtr. 2	 	 	Qtr. 1	 	
 	 	 	
Business Rationalizations & Other Initiatives	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
- Cabinets and Related Products	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	11	 	
- Plumbing Products	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	1	 	
- Installation and Other Services	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	2	 	
- Decorative Architectural Products	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	
- Other Specialty Products	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	
 	 	 	
- Total	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	14	 	

- North America	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	12	 	
- International, principally Europe	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	2	 	
 	 	 	
- Total, as above	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	14	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
General Corporate Expense (GCE), Net	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	

- Total	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	14	 	

 	 	 	
		
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	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	(58	)	 	$	(225	)	 	$	(56	)	 	$	(56	)	 	$	(57	)	 	$	(56	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income from Cash and Cash Investments	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	1	 	 	 	7	 	 	 	1	 	 	 	2	 	 	 	1	 	 	 	3	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Other Interest Income	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	1	 	 	 	2	 	 	 	1	 	 	 	1	 	 	 	—	 	 	 	—	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Realized Gains (Losses) from Financial Investments, Net	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	3	 	 	 	3	 	 	 	—	 	 	 	—	 	 	 	—	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Impairment Charges for Financial Investments	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	(10	)	 	 	—	 	 	 	—	 	 	 	(7	)	 	 	(3	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Other, Net	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	17	 	 	 	2	 	 	 	4	 	 	 	14	 	 	 	(3	)	

Total Other Income (Expense), Net	 	$	—	 	 	$	—	 	 	$	—	 	 	$	—	 	 	$	(56	)	 	$	(206	)	 	$	(49	)	 	$	(49	)	 	$	(49	)	 	$	(59	)	

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

 

MASCO CORPORATION
 Condensed Consolidated Balance Sheets — Unaudited
 (in millions)
 	 	 	 	 	 	 	 	 	
 	 	March 31,	 	 	December 31,	 	
 	 	2010	 	 	2009	 	
Assets	 	 	 	 	 	 	 	 	
Current Assets:	 	 	 	 	 	 	 	 	
Cash and Cash Investments	 	$	1,378	 	 	$	1,413	 	
Receivables	 	 	1,147	 	 	 	983	 	
Prepaid Expenses and Other	 	 	310	 	 	 	312	 	
Inventories	 	 	805	 	 	 	743	 	
 	 	 	 	 	 	 	
Total Current Assets	 	 	3,640	 	 	 	3,451	 	
Property and Equipment, Net	 	 	1,920	 	 	 	1,981	 	
Goodwill	 	 	3,095	 	 	 	3,108	 	
Other Intangible Assets, Net	 	 	286	 	 	 	290	 	
Other Assets	 	 	345	 	 	 	345	 	
Total Assets	 	$	9,286	 	 	$	9,175	 	

Liabilities	 	 	 	 	 	 	 	 	
Current Liabilities:	 	 	 	 	 	 	 	 	
Notes Payable	 	$	66	 	 	$	364	 	
Accounts Payable	 	 	673	 	 	 	578	 	
Accrued Liabilities	 	 	777	 	 	 	839	 	
 	 	 	 	 	 	 	
Total Current Liabilities	 	 	1,516	 	 	 	1,781	 	
Long-Term Debt	 	 	4,100	 	 	 	3,604	 	
Deferred Income Taxes and Other	 	 	967	 	 	 	973	 	
 	 	 	 	 	 	 	
Total Liabilities	 	 	6,583	 	 	 	6,358	 	
Shareholders’ Equity	 	 	2,703	 	 	 	2,817	 	
 	 	 	 	 	 	 	
Total Liabilities and Shareholders’ Equity	 	$	9,286	 	 	$	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	 	 	 	 	
 	 	March 31,	 	 	 	 	
 	 	2010	 	 	2009	 	 	% Δ	 	
Net Sales, As Reported	 	$	1,852	 	 	$	1,797	 	 	 	3	%	
- Acquisitions	 	 	—	 	 	 	—	 	 	 	 	 	
- Currency Translation	 	 	(36	)	 	 	—	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	
Net Sales, Excluding Acquisitions and Currency Translation	 	$	1,816	 	 	$	1,797	 	 	 	1	%	

North America Net Sales, As Reported	 	$	1,430	 	 	$	1,434	 	 	 	0	%	
- Acquisitions	 	 	—	 	 	 	—	 	 	 	 	 	
- Currency Translation	 	 	(10	)	 	 	—	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	
North America Net Sales, Excluding Acquisitions and Currency Translation	 	$	1,420	 	 	$	1,434	 	 	 	-1	%	

International Net Sales, As Reported	 	$	422	 	 	$	363	 	 	 	16	%	
- Acquisitions	 	 	—	 	 	 	—	 	 	 	 	 	
- Currency Translation	 	 	(26	)	 	 	—	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	
International Net Sales, Excluding Acquisitions and Currency Translation	 	$	396	 	 	$	363	 	 	 	9	%	

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 driving growth.	
 		
-	 	The Company also presents information comparing results of International operations from one period to another using constant exchange rates. To present this information, 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 in order to assess how the underlying businesses performed 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.	
 Page 11 

 

MASCO CORPORATION
GAAP Reconciliation of Operating Profit (Loss) and Margins — Unaudited
(dollars in millions)
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended March 31,	 	
 	 	2010	 	 	2009	 	
 	 	$	 	 	Margin	 	 	$	 	 	Margin	 	
Operating Profit (Loss), As Reported	 	$	78	 	 	 	4.2	%	 	$	(2	)	 	 	-0.1	%	
Impairment Charges for Goodwill and Other	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Intangible Assets	 	 	—	 	 	 	 	 	 	 	—	 	 	 	 	 	
Business Rationalizations and Other Initiatives	 	 	14	 	 	 	 	 	 	 	24	 	 	 	 	 	
Charge for Litigation Settlement	 	 	—	 	 	 	 	 	 	 	—	 	 	 	 	 	
Charge for Defined-Benefit Plan Curtailment	 	 	—	 	 	 	 	 	 	 	8	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating Profit, As Reconciled	 	$	92	 	 	 	5.0	%	 	$	30	 	 	 	1.7	%	

Notes:  	 	 	
 		
-	 	Data exclude discontinued operations.	
 		
-	 	The Company believes that certain non-GAAP performance measures and ratios, 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.	
 Page 12 

 

MASCO CORORATION
GAAP Reconciliation of Operating Profit and Shareholders’ Equity — Unaudited
(in millions)
 	 	 	 	 	
 	 	Twelve	 	
 	 	Months Ended	 	
 	 	March 31,	 	
 	 	2010	 	
Operating Profit, As Reported	 	$	131	 	
 	 	 	 	 	
Impairment Charges for Goodwill and Other Intangible Assets, Continuing Operations	 	 	262	 	
 	 	 	 	 	
Charge for Defined-Benefit Plan Curtailment	 	 	—	 	
 	 	 	 	 	
Charge for Litigation Settlement	 	 	7	 	
 	 	 	 	
Operating Profit, As Reconciled	 	$	400	 	

 	 	Twelve Months Ended	 	
 	 	March 31,	 	
 	 	2010	 	 	2009	 	
Shareholders’ Equity, As Reported	 	$	2,703	 	 	$	2,866	 	
 	 	 	 	 	 	 	 	 	
Impairment Charges for Goodwill and Other	 	 	 	 	 	 	 	 	
Intangible Assets (after tax)	 	 	180	 	 	 	445	 	
 	 	 	 	 	 	 	 	 	
Charge for Defined-Benefit Plan Curtailment (after tax)	 	 	—	 	 	 	5	 	
 	 	 	 	 	 	 	 	 	
Charge for Litigation Settlement (after tax)	 	 	4	 	 	 	6	 	
 	 	 	 	 	 	 	
Shareholders’ Equity, As Reconciled	 	$	2,887	 	 	$	3,322	 	

Notes:  	 	 	
 		
-	 	Data exclude discontinued operations.	
 		
-	 	The Company believes that certain non-GAAP performance measures and ratios, 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.	
 		
-	 	This information is provided as detail for the calculation of return on invested capital (“ROIC”) which is calculated as after-tax operating profit (last twelve months, as reconciled) divided by the total of average debt (net of average cash) and average shareholders’ equity.	
 Page 13