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 11, 2013

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:
 
 	¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)	
 
 	¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)	
 
 	¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))	
 
 	¨	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 February 11, 2013 reporting Masco Corporation’s financial results for the fourth quarter and full-year of 2012 and certain other information and supplemental information prepared for use in connection with the financial results for the fourth quarter and full-year of 2012. On February 12, 2013, Masco Corporation will hold an investor conference call and Webcast to discuss financial results for the fourth quarter and full-year of 2012.
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 11, 2013 reporting Masco Corporation’s financial results for the fourth quarter and full-year of 2012 and certain other information and supplemental information prepared for use in connection with the financial results for the fourth quarter and full-year of 2012.

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 11, 2013

EXHIBIT INDEX
99 Press Release of Masco Corporation dated February 11, 2013 reporting Masco Corporation’s financial results for the fourth quarter and full-year of 2012 and certain other information and supplemental information prepared for use in connection with the financial results for the fourth quarter and full-year of 2012.

Exhibit 99

MASCO DELIVERS STRONG GROWTH IN FOURTH QUARTER 2012
Key Highlights
 
 	•	 	Sales increased 9 percent to $1.9 billion	
 
 	•	 	North American sales increased 12 percent	
 
 	•	 	Installation segment returned to profitability	
 
 	•	 	All segments contributed to an adjusted operating margin expansion of 340 basis points	
Taylor, Mich., (February 11, 2013) — Masco Corporation (NYSE: MAS) increased profit in the fourth quarter of 2012 with strong sales and operating margin growth in North America, including continued improvement in Installation Services. All five operating segments delivered positive sales growth and improved operating profit for the first time since the housing downturn.
2012 Fourth Quarter Commentary
 
 	•	 	Net sales from continuing operations increased 9 percent to $1.9 billion, compared with $1.7 billion for fourth quarter 2011. North American sales increased 12 percent and international sales decreased 1 percent. In local currencies, international sales increased 2 percent compared with fourth quarter 2011.	
 
 	•	 	Compared to fourth quarter 2011, results for key financial measures, as adjusted for certain items (see Exhibit A) and with a normalized tax rate of 36 percent, were as follows:	
 
 	•	 	Gross profit margins were 25.0 percent compared to 21.9 percent	
 
 	•	 	Operating profit margins were 5.0 percent compared to 1.6 percent	
 
 	•	 	Income (loss) from continuing operations was $0.04 per common share compared to $(0.09) per common share	
 
 	•	 	Loss from continuing operations, as reported , was $(0.23) per common share compared to $(1.42) per common share in the fourth quarter of 2011	
 
 	•	 	We ended the fourth quarter with approximately $1.4 billion of cash	
2012 Fourth Quarter Operating Segment Results
 
 	•	 	Plumbing Products’ net sales increased 10 percent, fueled by strong performance in North America and internationally	
 
 	•	 	Decorative Architectural Products’ net sales increased 11 percent, driven by growth in core products and new programs	
 
 	•	 	North American Cabinetry’s sales increased 13 percent and operating margins improved	
 
 	•	 	Installation and Other Services achieved profitability for the first time since the fourth quarter of 2008	
 
 	•	 	Other Specialty Products’ net sales increased 6 percent and segment margins expanded, reflecting share gains and profit improvement initiatives	
 
1

“Our solid fourth quarter results reflect the successful execution of our strategic initiatives, including leveraging our brands, reducing our costs, improving our Installation and Cabinet segments and strengthening our balance sheet,” said Masco’s President and CEO, Tim Wadhams. “Our sales and margin growth represent strong performance across all of our operating segments, including a return to profitability in our Installation segment. We believe this momentum will continue into 2013.”
2012 Full-Year Commentary
 
 	•	 	Net sales increased 4 percent to $7.7 billion, compared to 2011. Excluding currency, net sales increased 5 percent	
 
 	•	 	Compared to full-year 2011, results for key financial measures, as adjusted for certain items (see Exhibit B) and with a normalized tax rate of 36 percent, were as follows:	
 
 	•	 	Gross profit margins were 26.0 percent compared to 25.1 percent	
 
 	•	 	Operating profit margins were 6.1 percent compared to 4.4 percent	
 
 	•	 	Income from continuing operations was $0.32 per common share compared to $0.02 per common share	
 
 	•	 	Loss from continuing operations, as reported, was $(0.22) per common share compared to $(1.34) per common share in 2011	
Subsequent Event
In early February we determined that our Danish ready-to-assemble cabinet business is not core to our long-term growth strategy and, accordingly, we have commenced a plan of disposition for this business. This business unit had sales of approximately $250 million in 2012.
Outlook 2013
“We expect new home construction to show strong growth in 2013, and anticipate repair and remodel to grow modestly, with big ticket items continuing to lag. Our focus this year is to successfully execute new product programs, improve profitability in Cabinets and Installation Services, and expand our brand leadership positions. We believe the actions we have taken over the past several years, including investing in our brands, reducing our cost structure and paying down debt, have strengthened our business. We believe these actions have positively positioned us to take advantage of the upturn in the housing cycle,” said Mr. Wadhams.
About Masco
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 2012 fourth quarter supplemental material, including a presentation in PDF format, is available on the Company’s website at www.masco.com .
Conference Call Details
A conference call regarding items contained in this release is scheduled for Tuesday, February 12, 2013 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 (877) 550-4056 and from outside the U.S. at (706) 679-3614. Please use the conference identification number 87003575. The conference call will be webcast simultaneously and in its entirety through the Company’s website. Shareholders, media representatives and others interested in Masco may participate in the webcast by registering through the Investor Relations section on the Company’s website.
 
2

A replay of the call will be available on Masco’s website or by phone by dialing (855) 859-2056 and from outside the U.S. at (404) 537-3406. Please use the conference identification number 87003575. The telephone replay will be available approximately two hours after the end of the call and continue through February 26, 2013.
Safe Harbor Statement
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,” “should,” “intend,” “plan,” “estimate,” “expect,” “assume,” “seek,” “forecast,” 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, our ability to improve our underperforming businesses, and our ability to maintain our competitive position in our industries. These and other factors are discussed in detail in Item 1A, “Risk Factors” in our most recent 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 it is not possible for us to predict all of them. Unless required by law, 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 website at www.masco.com .
Investor / Media Contact
Maria Duey
Vice President - Investor Relations &
Corporate Communications
313.792.5500
maria_duey@mascohq.com
# # #
 
3

MASCO CORPORATION
Condensed Consolidated Statements of Operations - Unaudited
For the Three Months and Twelve Months Ended December 31, 2012 and 2011
(dollars in millions)

 	  	Three Months Ended
December 31,	 	 	Twelve Months Ended
December 31,	 	
 	  	2012	 	 	2011	 	 	2012	 	 	2011	 	
					
Net sales	  	$	1,890	  	 	$	1,738	  	 	$	7,745	  	 	$	7,467	  	
Cost of sales	  	 	1,444	  	 	 	1,406	  	 	 	5,794	  	 	 	5,683	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gross profit	  	 	446	  	 	 	332	  	 	 	1,951	  	 	 	1,784	  	
					
Selling, general and administrative expenses	  	 	380	  	 	 	366	  	 	 	1,561	  	 	 	1,576	  	
Charge for litigation settlements, net	  	 	3	  	 	 	3	  	 	 	77	  	 	 	9	  	
Impairment charges for goodwill and other intangible assets	  	 	42	  	 	 	494	  	 	 	42	  	 	 	494	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating profit (loss)	  	 	21	  	 	 	(531	) 	 	 	271	  	 	 	(295	) 	
					
Other income (expense), net	  	 	(62	) 	 	 	(66	) 	 	 	(251	) 	 	 	(250	) 	
Gains from financial investments, net	  	 	4	  	 	 	4	  	 	 	22	  	 	 	73	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
(Loss) income from continuing operations before income taxes	  	 	(37	) 	 	 	(593	) 	 	 	42	  	 	 	(472	) 	
					
Income tax expense (benefit)	  	 	35	  	 	 	(104	) 	 	 	83	  	 	 	(49	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Loss from continuing operations	  	 	(72	) 	 	 	(489	) 	 	 	(41	) 	 	 	(423	) 	
					
Loss from discontinued operations, net	  	 	(8	) 	 	 	(79	) 	 	 	(38	) 	 	 	(110	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net loss	  	 	(80	) 	 	 	(568	) 	 	 	(79	) 	 	 	(533	) 	
					
Less: Net income attributable to non-controlling interest	  	 	7	  	 	 	5	  	 	 	35	  	 	 	42	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net loss attributable to Masco Corporation	  	$	(87	) 	 	$	(573	) 	 	$	(114	) 	 	$	(575	) 	

Loss per common share attributable to Masco Corporation (diluted):	  				 				 				 				
Loss from continuing operations	  	$	(0.23	) 	 	$	(1.42	) 	 	$	(0.22	) 	 	$	(1.34	) 	
Loss from discontinued operations	  	 	(0.02	) 	 	 	(0.23	) 	 	 	(0.11	) 	 	 	(0.32	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net loss	  	$	(0.25	) 	 	$	(1.65	) 	 	$	(0.33	) 	 	$	(1.66	) 	

Average diluted common shares outstanding	  	 	349	  	 	 	348	  	 	 	349	  	 	 	348	  	

Amounts attributable to Masco Corporation:	  				 				 				 				
Loss from continuing operations	  	$	(79	) 	 	$	(494	) 	 	$	(76	) 	 	$	(465	) 	
Loss from discontinued operations	  	 	(8	) 	 	 	(79	) 	 	 	(38	) 	 	 	(110	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net loss attributable to Masco Corporation	  	$	(87	) 	 	$	(573	) 	 	$	(114	) 	 	$	(575	) 	

4

			
MASCO CORPORATION	  	 	
Exhibit A: Reconciliations - Unaudited	  		
For the Three Months Ended December 31, 2012 and 2011	  	(dollars in millions, except EPS)	

 	  	2012	 	 	2011	 	
Gross Profit and Operating Profit Reconciliations	  				 				
			
Net sales	  	$	1,890	  	 	$	1,738	  	

Gross profit, as reported	  	$	446	  	 	$	332	  	
			
Rationalization charges	  	 	27	  	 	 	48	  	
	  	 	 	 	 	 	 	 	
Gross profit, as adjusted	  	$	473	  	 	$	380	  	

Gross margin, as reported	  	 	23.6	% 	 	 	19.1	% 	
Gross margin, as adjusted	  	 	25.0	% 	 	 	21.9	% 	
			
Operating profit (loss), as reported	  	$	21	  	 	$	(531	) 	
			
Impairment of goodwill and other intangible assets	  	 	42	  	 	 	494	  	
Rationalization charges	  	 	31	  	 	 	61	  	
Charge for litigation settlements, net	  	 	3	  	 	 	3	  	
Gain from sales of fixed assets, net	  	 	(3	) 	 	 	—  	  	
	  	 	 	 	 	 	 	 	
Operating profit, as adjusted	  	$	94	  	 	$	27	  	

Operating margin, as reported	  	 	1.1	% 	 	 	-30.6	% 	
Operating margin, as adjusted	  	 	5.0	% 	 	 	1.6	% 	
			
Earnings Per Common Share Reconciliation	  				 				
			
Loss from continuing operations, before income taxes, as reported	  	$	(37	) 	 	$	(593	) 	
			
Impairment of goodwill and other intangible assets	  	 	42	  	 	 	494	  	
Rationalization charges	  	 	31	  	 	 	61	  	
Charge for litigation settlements, net	  	 	3	  	 	 	3	  	
Gain from sale of fixed assets, net	  	 	(3	) 	 	 	—  	  	
Gain from financial investments, net	  	 	(4	) 	 	 	(4	) 	
	  	 	 	 	 	 	 	 	
Income (loss) from continuing operations, before income taxes, as adjusted	  	 	32	  	 	 	(39	) 	
			
Tax at 36% rate	  	 	(12	) 	 	 	14	  	
			
Less: Net income attributable to non-controlling interest	  	 	7	  	 	 	5	  	
	  	 	 	 	 	 	 	 	
Net income (loss), as adjusted	  	$	13	  	 	$	(30	) 	

Income (loss) per common share, as adjusted	  	$	0.04	  	 	$	(0.09	) 	

Shares outstanding	  	 	349	  	 	 	348	  	

5

MASCO CORPORATION
Exhibit B: Reconciliations - Unaudited
For the Twelve Months Ended December 31, 2012 and 2011

 	  	2012	 	 	2011	 	
Gross Profit and Operating Profit Reconciliations	  				 				
			
Net sales	  	$	7,745	  	 	$	7,467	  	

Gross profit, as reported	  	$	1,951	  	 	$	1,784	  	
			
Rationalization charges	  	 	52	  	 	 	91	  	
Other Specialty Products - Warranty	  	 	12	  	 	 	—  	  	
	  	 	 	 	 	 	 	 	
Gross profit, as adjusted	  	$	2,015	  	 	$	1,875	  	

Gross margin, as reported	  	 	25.2	% 	 	 	23.9	% 	
Gross margin, as adjusted	  	 	26.0	% 	 	 	25.1	% 	
			
Operating profit (loss), as reported	  	$	271	  	 	$	(295	) 	
			
Rationalization charges	  	 	78	  	 	 	121	  	
Charge for litigation settlements, net	  	 	77	  	 	 	9	  	
Impairment of goodwill and other intangible assets	  	 	42	  	 	 	494	  	
Other Specialty Products - Warranty	  	 	12	  	 	 	—  	  	
Gain from sales of fixed assets, net	  	 	(8	) 	 	 	—  	  	
	  	 	 	 	 	 	 	 	
Operating profit, as adjusted	  	$	472	  	 	$	329	  	

Operating margin, as reported	  	 	3.5	% 	 	 	-4.0	% 	
Operating margin, as adjusted	  	 	6.1	% 	 	 	4.4	% 	
			
Earnings Per Common Share Reconciliation	  				 				
			
Income (loss) from continuing operations, before income taxes, as reported	  	$	42	  	 	$	(472	) 	
			
Rationalization charges	  	 	78	  	 	 	121	  	
Charge for litigation settlements, net	  	 	77	  	 	 	9	  	
Impairment of goodwill and other intangible assets	  	 	42	  	 	 	494	  	
Other Specialty Products - Warranty	  	 	12	  	 	 	—  	  	
Interest carry costs	  	 	7	  	 	 	—  	  	
Gain from sales of fixed assets, net	  	 	(8	) 	 	 	—  	  	
Gain from financial investments, net	  	 	(22	) 	 	 	(73	) 	
	  	 	 	 	 	 	 	 	
Income from continuing operations,before income taxes, as adjusted	  	 	228	  	 	 	79	  	
			
Tax at 36% rate	  	 	(82	) 	 	 	(28	) 	
			
Less: Net income attributable to non-controlling interest	  	 	35	  	 	 	42	  	
	  	 	 	 	 	 	 	 	
Net income, as adjusted	  	$	111	  	 	$	9	  	

Income per common share, as adjusted	  	$	0.32	  	 	$	0.02	  	

Shares outstanding	  	 	349	  	 	 	348	  	

6

MASCO CORPORATION
Condensed Consolidated Balance Sheets and
Other Financial Data - Unaudited
(dollars in millions)

 	  	December 31,
2012	 	  	December 31,
2011	 	
Balance Sheet	  				  				
Assets	  				  				
Current Assets:	  				  				
Cash and Cash Investments	  	$	1,351	  	  	$	1,656	  	
Receivables	  	 	965	  	  	 	914	  	
Inventories	  	 	792	  	  	 	769	  	
Prepaid Expenses and Other	  	 	109	  	  	 	70	  	
Assets Held for Sale	  	 	—  	  	  	 	20	  	
	  	 	 	 	  	 	 	 	
Total Current Assets	  	 	3,217	  	  	 	3,429	  	
Property and Equipment, Net	  	 	1,429	  	  	 	1,567	  	
Goodwill	  	 	1,894	  	  	 	1,891	  	
Other Intangible Assets, Net	  	 	151	  	  	 	196	  	
Other Assets	  	 	184	  	  	 	209	  	
Assets Held for Sale	  	 	—  	  	  	 	5	  	
	  	 	 	 	  	 	 	 	
Total Assets	  	$	6,875	  	  	$	7,297	  	

Liabilities	  				  				
Current Liabilities:	  				  				
Notes Payable	  	$	206	  	  	$	803	  	
Accounts Payable	  	 	819	  	  	 	770	  	
Accrued Liabilities	  	 	837	  	  	 	782	  	
Liabilities Held for Sale	  	 	—  	  	  	 	8	  	
	  	 	 	 	  	 	 	 	
Total Current Liabilities	  	 	1,862	  	  	 	2,363	  	
Long-Term Debt	  	 	3,422	  	  	 	3,222	  	
Deferred Income Taxes and Other	  	 	1,057	  	  	 	970	  	
	  	 	 	 	  	 	 	 	
Total Liabilities	  	 	6,341	  	  	 	6,555	  	
Shareholders’ Equity	  	 	534	  	  	 	742	  	
	  	 	 	 	  	 	 	 	
Total Liabilities and Shareholders’ Equity	  	$	6,875	  	  	$	7,297	  	

									
 	  	Year To Date	 	
 	  	December 31,
2012	 	 	December 31,
2011	 	
Other Financial Data	  				 				
Working Capital Days	  				 				
Receivable Days	  	 	47	  	 	 	47	  	
Inventory Days	  	 	52	  	 	 	52	  	
Payable Days	  	 	66	  	 	 	63	  	
Working Capital	  	$	938	  	 	$	913	  	
Working Capital as a % of Sales (LTM)	  	 	12.1	% 	 	 	12.2	% 	
			
Dividend Payments	  	$	107	  	 	$	107	  	
Cash Paid for Share Repurchases	  	$	8	  	 	$	30	  	
CAPEX	  	$	119	  	 	$	151	  	
			
Average diluted common shares outstanding	  	 	349	  	 	 	348	  	
 
7

MASCO CORPORATION
Quarterly Segment Data - Unaudited
For the Three Months and Twelve Months Ended December 31, 2012 and 2011
(dollars in millions)

 	  	Q4
2012	 	 	Q4
2011	 	 	Change	 	 	YTD
2012	 	 	YTD
2011	 	 	Change	 	
							
Cabinets and Related Products	  				 				 				 				 				 				
Net sales	  	$	289	  	 	$	287	  	 	 	1	% 	 	$	1,189	  	 	$	1,231	  	 	 	-3	% 	

Operating loss, as reported	  	$	(50	) 	 	$	(95	) 	 				 	$	(120	) 	 	$	(206	) 	 				
Operating margin, as reported	  	 	-17.3	% 	 	 	-33.1	% 	 				 	 	-10.1	% 	 	 	-16.7	% 	 				
							
Rationalization charges	  	 	10	  	 	 	6	  	 				 	 	21	  	 	 	20	  	 				
Accelerated depreciation related to plant closures	  	 	14	  	 	 	7	  	 				 	 	16	  	 	 	27	  	 				
Impairment of goodwill and other intangible assets	  	 	—  	  	 	 	44	  	 				 	 	—  	  	 	 	44	  	 				
	  	 	 	 	 	 	 	 	 				 	 	 	 	 	 	 	 	 				
Operating loss, as adjusted	  	 	(26	) 	 	 	(38	) 	 				 	 	(83	) 	 	 	(115	) 	 				
Operating margin, as adjusted	  	 	-9.0	% 	 	 	-13.2	% 	 				 	 	-7.0	% 	 	 	-9.3	% 	 				
							
Depreciation and amortization	  	 	14	  	 	 	8	  	 				 	 	52	  	 	 	51	  	 				

EBITDA, as adjusted	  	$	(12	) 	 	$	(30	) 	 				 	$	(31	) 	 	$	(64	) 	 				

Plumbing Products	  				 				 				 				 				 				
Net sales	  	$	739	  	 	$	674	  	 	 	10	% 	 	$	2,955	  	 	$	2,913	  	 	 	1	% 	

Operating profit, as reported	  	$	65	  	 	$	52	  	 				 	$	307	  	 	$	322	  	 				
Operating margin, as reported	  	 	8.8	% 	 	 	7.7	% 	 				 	 	10.4	% 	 	 	11.1	% 	 				
							
Rationalization charges	  	 	5	  	 	 	2	  	 				 	 	13	  	 	 	11	  	 				
Accelerated depreciation related to plant closures	  	 	2	  	 	 	1	  	 				 	 	12	  	 	 	4	  	 				
Impairment of goodwill and other intangible assets	  	 	—  	  	 	 	1	  	 				 	 	—  	  	 	 	1	  	 				
	  	 	 	 	 	 	 	 	 				 	 	 	 	 	 	 	 	 				
Operating profit, as adjusted	  	 	72	  	 	 	56	  	 				 	 	332	  	 	 	338	  	 				
Operating margin, as adjusted	  	 	9.7	% 	 	 	8.3	% 	 				 	 	11.2	% 	 	 	11.6	% 	 				
							
Depreciation and amortization	  	 	13	  	 	 	18	  	 				 	 	57	  	 	 	64	  	 				

EBITDA, as adjusted	  	$	85	  	 	$	74	  	 				 	$	389	  	 	$	402	  	 				

Installation and Other Services	  				 				 				 				 				 				
Net sales	  	$	323	  	 	$	285	  	 	 	13	% 	 	$	1,209	  	 	$	1,077	  	 	 	12	% 	

Operating profit (loss), as reported	  	$	6	  	 	$	(8	) 	 				 	$	(19	) 	 	$	(79	) 	 				
Operating margin, as reported	  	 	1.9	% 	 	 	-2.8	% 	 				 	 	-1.6	% 	 	 	-7.3	% 	 				
							
Rationalization charges	  	 	—  	  	 	 	2	  	 				 	 	1	  	 	 	8	  	 				
Accelerated depreciation related to plant closures	  	 	—  	  	 	 	—  	  	 				 	 	—  	  	 	 	—  	  	 				
Impairment of goodwill and other intangible assets	  	 	—  	  	 	 	—  	  	 				 	 	—  	  	 	 	—  	  	 				
	  	 	 	 	 	 	 	 	 				 	 	 	 	 	 	 	 	 				
Operating profit (loss), as adjusted	  	 	6	  	 	 	(6	) 	 				 	 	(18	) 	 	 	(71	) 	 				
Operating margin, as adjusted	  	 	1.9	% 	 	 	-2.1	% 	 				 	 	-1.5	% 	 	 	-6.6	% 	 				
							
Depreciation and amortization	  	 	8	  	 	 	8	  	 				 	 	30	  	 	 	32	  	 				

EBITDA, as adjusted	  	$	14	  	 	$	2	  	 				 	$	12	  	 	$	(39	) 	 				

8

MASCO CORPORATION
Quarterly Segment Data - Unaudited
For the Three Months and Twelve Months Ended December 31, 2012 and 2011
(dollars in millions)

 	  	Q4
2012	 	 	Q4
2011	 	 	Change	 	 	YTD
2012	 	 	YTD
2011	 	 	Change	 	
							
Decorative Architectural Products	  				 				 				 				 				 				
Net sales	  	$	386	  	 	$	348	  	 	 	11	% 	 	$	1,818	  	 	$	1,670	  	 	 	9	% 	

Operating profit (loss), as reported	  	$	65	  	 	$	(51	) 	 				 	$	329	  	 	$	196	  	 				
Operating margin, as reported	  	 	16.8	% 	 	 	-14.7	% 	 				 	 	18.1	% 	 	 	11.7	% 	 				
							
Rationalization charges	  	 	—  	  	 	 	11	  	 				 	 	—  	  	 	 	12	  	 				
Accelerated depreciation related to plant closures	  	 	—  	  	 	 	—  	  	 				 	 	—  	  	 	 	—  	  	 				
Impairment of goodwill and other intangible assets	  	 	—  	  	 	 	75	  	 				 	 	—  	  	 	 	75	  	 				
	  	 	 	 	 	 	 	 	 				 	 	 	 	 	 	 	 	 				
Operating profit, as adjusted	  	 	65	  	 	 	35	  	 				 	 	329	  	 	 	283	  	 				
Operating margin, as adjusted	  	 	16.8	% 	 	 	10.1	% 	 				 	 	18.1	% 	 	 	16.9	% 	 				
							
Depreciation and amortization	  	 	3	  	 	 	3	  	 				 	 	15	  	 	 	15	  	 				

EBITDA, as adjusted	  	$	68	  	 	$	38	  	 				 	$	344	  	 	$	298	  	 				

Other Specialty Products	  				 				 				 				 				 				
Net sales	  	$	153	  	 	$	144	  	 	 	6	% 	 	$	574	  	 	$	576	  	 	 	0	% 	

Operating loss, as reported	  	$	(35	) 	 	$	(403	) 	 				 	$	(31	) 	 	$	(401	) 	 				
Operating margin, as reported	  	 	-22.9	% 	 	 	-279.9	% 	 				 	 	-5.4	% 	 	 	-69.6	% 	 				
							
Rationalization charges	  	 	—  	  	 	 	6	  	 				 	 	1	  	 	 	6	  	 				
Accelerated depreciation related to plant closures	  	 	—  	  	 	 	23	  	 				 	 	—  	  	 	 	25	  	 				
Impairment of goodwill and other intangible assets	  	 	42	  	 	 	374	  	 				 	 	42	  	 	 	374	  	 				
Warranty	  	 	—  	  	 	 	—  	  	 				 	 	12	  	 	 	—  	  	 				
	  	 	 	 	 	 	 	 	 				 	 	 	 	 	 	 	 	 				
Operating p.rofit, as adjusted	  	 	7	  	 	 	—  	  	 				 	 	24	  	 	 	4	  	 				
Operating margin, as adjusted	  	 	4.6	% 	 	 	0.0	% 	 				 	 	4.2	% 	 	 	0.7	% 	 				
							
Depreciation and amortization	  	 	5	  	 	 	6	  	 				 	 	21	  	 	 	23	  	 				

EBITDA, as adjusted	  	$	12	  	 	$	6	  	 				 	$	45	  	 	$	27	  	 				

Total	  				 				 				 				 				 				
Net sales	  	$	1,890	  	 	$	1,738	  	 	 	9	% 	 	$	7,745	  	 	$	7,467	  	 	 	4	% 	

Operating income (loss), as reported—segment	  	$	51	  	 	$	(505	) 	 				 	$	466	  	 	$	(168	) 	 				
General corporate expense (GCE)	  	 	(30	) 	 	 	(23	) 	 				 	 	(126	) 	 	 	(118	) 	 				
Gain from sales of fixed assets, net	  	 	3	  	 	 	—  	  	 				 	 	8	  	 	 	—  	  	 				
Charge for litigation settlements, net	  	 	(3	) 	 	 	(3	) 	 				 	 	(77	) 	 	 	(9	) 	 				
	  	 	 	 	 	 	 	 	 				 	 	 	 	 	 	 	 	 				
Operating income (loss), as reported	  	 	21	  	 	 	(531	) 	 				 	 	271	  	 	 	(295	) 	 				
Operating margin, as reported	  	 	1.1	% 	 	 	-30.6	% 	 				 	 	3.5	% 	 	 	-4.0	% 	 				
							
Rationalization charges - segment	  	 	15	  	 	 	27	  	 				 	 	36	  	 	 	57	  	 				
Accelerated depreciation - segment	  	 	16	  	 	 	31	  	 				 	 	28	  	 	 	56	  	 				
Rationalization charges - GCE	  	 	—  	  	 	 	3	  	 				 	 	14	  	 	 	5	  	 				
Accelerated depreciation - GCE	  	 	—  	  	 	 	—  	  	 				 	 	—  	  	 	 	3	  	 				
Gain from sales of fixed assets	  	 	(3	) 	 	 	—  	  	 				 	 	(8	) 	 	 	—  	  	 				
Charge for litigation settlements, net	  	 	3	  	 	 	3	  	 				 	 	77	  	 	 	9	  	 				
Impairment of goodwill and other intangible assets	  	 	42	  	 	 	494	  	 				 	 	42	  	 	 	494	  	 				
Other Specialty Products - Warranty	  	 	—  	  	 	 	—  	  	 				 	 	12	  	 	 	—  	  	 				
	  	 	 	 	 	 	 	 	 				 	 	 	 	 	 	 	 	 				
Operating income, as adjusted	  	 	94	  	 	 	27	  	 				 	 	472	  	 	 	329	  	 				
Operating margin, as adjusted	  	 	5.0	% 	 	 	1.6	% 	 				 	 	6.1	% 	 	 	4.4	% 	 				
							
Depreciation and amortization - segment	  	 	43	  	 	 	43	  	 				 	 	175	  	 	 	185	  	 				
Depreciation and amortization - non-operating	  	 	1	  	 	 	1	  	 				 	 	11	  	 	 	19	  	 				

EBITDA, as adjusted	  	$	138	  	 	$	71	  	 				 	$	658	  	 	$	533	  	 				

9

MASCO CORPORATION
North American and International Data - Unaudited
For the Three Months and Twelve Months Ended December 31, 2012 and 2011
(dollars in millions)

 	  	Q4
2012	 	 	Q4
2011	 	 	Change	 	 	YTD
2012	 	 	YTD
2011	 	 	Change	 	
							
North American	  				 				 				 				 				 				
Net sales	  	$	1,475	  	 	$	1,320	  	 	 	12	% 	 	$	6,046	  	 	$	5,669	  	 	 	7	% 	

Operating profit (loss), as reported	  	$	35	  	 	$	(459	) 	 				 	$	360	  	 	$	(259	) 	 				
Operating margin, as reported	  	 	2.4	% 	 	 	-34.8	% 	 				 	 	6.0	% 	 	 	-4.6	% 	 				
							
Rationalization charges	  	 	10	  	 	 	20	  	 				 	 	25	  	 	 	49	  	 				
Accelerated depreciation related to plant closures	  	 	14	  	 	 	24	  	 				 	 	25	  	 	 	49	  	 				
Impairment of goodwill and other intangible assets	  	 	42	  	 	 	450	  	 				 	 	42	  	 	 	450	  	 				
Other Specialty Products - Warranty	  	 	—  	  	 	 	—  	  	 				 	 	12	  	 	 	—  	  	 				
	  	 	 	 	 	 	 	 	 				 	 	 	 	 	 	 	 	 				
Operating profit, as adjusted	  	 	101	  	 	 	35	  	 				 	 	464	  	 	 	289	  	 				
Operating margin, as adjusted	  	 	6.8	% 	 	 	2.7	% 	 				 	 	7.7	% 	 	 	5.1	% 	 				
							
Depreciation and amortization	  	 	33	  	 	 	35	  	 				 	 	129	  	 	 	139	  	 				

EBITDA, as adjusted	  	$	134	  	 	$	70	  	 				 	$	593	  	 	$	428	  	 				

International	  				 				 				 				 				 				
Net sales	  	$	415	  	 	$	418	  	 	 	-1	% 	 	$	1,699	  	 	$	1,798	  	 	 	-6	% 	

Operating profit (loss), as reported	  	$	16	  	 	$	(46	) 	 				 	 	106	  	 	 	91	  	 				
Operating margin, as reported	  	 	3.9	% 	 	 	-11.0	% 	 				 	 	6.2	% 	 	 	5.1	% 	 				
							
Rationalization charges	  	 	5	  	 	 	7	  	 				 	 	11	  	 	 	8	  	 				
Accelerated depreciation related to plant closures	  	 	2	  	 	 	7	  	 				 	 	3	  	 	 	7	  	 				
Impairment of goodwill and other intangible assets	  	 	—  	  	 	 	44	  	 				 	 	—  	  	 	 	44	  	 				
	  	 	 	 	 	 	 	 	 				 	 	 	 	 	 	 	 	 				
Operating profit, as adjusted	  	 	23	  	 	 	12	  	 				 	 	120	  	 	 	150	  	 				
Operating margin, as adjusted	  	 	5.5	% 	 	 	2.9	% 	 				 	 	7.1	% 	 	 	8.3	% 	 				
							
Depreciation and amortization	  	 	10	  	 	 	8	  	 				 	 	46	  	 	 	46	  	 				

EBITDA, as adjusted	  	$	33	  	 	$	20	  	 				 	$	166	  	 	$	196	  	 				

Total	  				 				 				 				 				 				
Net sales	  	$	1,890	  	 	$	1,738	  	 	 	9	% 	 	$	7,745	  	 	$	7,467	  	 	 	4	% 	

Operating income (loss), as reported - segment	  	$	51	  	 	$	(505	) 	 				 	$	466	  	 	$	(168	) 	 				
General corporate expense (GCE)	  	 	(30	) 	 	 	(23	) 	 				 	 	(126	) 	 	 	(118	) 	 				
Gain from sales of fixed assets, net	  	 	3	  	 	 	—  	  	 				 	 	8	  	 	 	—  	  	 				
Charge for litigation settlements, net	  	 	(3	) 	 	 	(3	) 	 				 	 	(77	) 	 	 	(9	) 	 				
	  	 	 	 	 	 	 	 	 				 	 	 	 	 	 	 	 	 				
Operating income (loss), as reported	  	 	21	  	 	 	(531	) 	 				 	 	271	  	 	 	(295	) 	 				
Operating margin, as reported	  	 	1.1	% 	 	 	-30.6	% 	 				 	 	3.5	% 	 	 	-4.0	% 	 				
							
Rationalization charges - segment	  	 	15	  	 	 	27	  	 				 	 	36	  	 	 	57	  	 				
Accelerated depreciation - segment	  	 	16	  	 	 	31	  	 				 	 	28	  	 	 	56	  	 				
Rationalization charges - GCE	  	 	—  	  	 	 	3	  	 				 	 	14	  	 	 	5	  	 				
Accelerated depreciation - GCE	  	 	—  	  	 	 	—  	  	 				 	 	—  	  	 	 	3	  	 				
Gain from sales of fixed assets, net	  	 	(3	) 	 	 	—  	  	 				 	 	(8	) 	 	 	—  	  	 				
Charge for litigation settlements, net	  	 	3	  	 	 	3	  	 				 	 	77	  	 	 	9	  	 				
Impairment of goodwill and other intangible assets	  	 	42	  	 	 	494	  	 				 	 	42	  	 	 	494	  	 				
Other Specialty Products - Warranty	  	 	—  	  	 	 	—  	  	 				 	 	12	  	 	 	—  	  	 				
	  	 	 	 	 	 	 	 	 				 	 	 	 	 	 	 	 	 				
Operating income, as adjusted	  	 	94	  	 	 	27	  	 				 	 	472	  	 	 	329	  	 				
Operating margin, as adjusted	  	 	5.0	% 	 	 	1.6	% 	 				 	 	6.1	% 	 	 	4.4	% 	 				
							
Depreciation and amortization - segment	  	 	43	  	 	 	43	  	 				 	 	175	  	 	 	185	  	 				
Depreciation and amortization - non-operating	  	 	1	  	 	 	1	  	 				 	 	11	  	 	 	19	  	 				

EBITDA, as adjusted	  	$	138	  	 	$	71	  	 				 	$	658	  	 	$	533	  	 				

10