← Filings of MAS
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| PART I. FINANCIAL INFORMATION | |
| Item 1. | Financial Statements (Unaudited): | 1 |
| Condensed Consolidated Balance Sheets - as of June 30, 2023 and December 31, 2022 | 1 |
| Condensed Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2023 and 2022 | 2 |
| Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three and Six Months Ended June 30, 2023 and 2022 | 3 |
| Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2023 and 2022 | 4 |
| Condensed Consolidated Statements of Shareholders' Equity for the Three and Six Months Ended June 30, 2023 and 2022 | 5 |
First 8 of 18 rows. The download has all of them.
Table 2 after “(In Millions, Except Share Data)”
| June 30, 2023 | December 31, 2022 | |
| ASSETS | | | |
| Current assets: | | | |
| Cash and cash investments | $380 | | $452 |
| Receivables | 1,371 | | 1,149 |
| Inventories | 1,144 | | 1,236 |
| Prepaid expenses and other | 112 | | 109 |
| Total current assets | 3,007 | | 2,946 |
First 8 of 37 rows. The download has all of them.
Table 3 after “(In Millions, Except Per Common Share Data)”
| Three Months Ended June 30, | Six Months Ended June 30, | | | | |
| 2023 | 2022 | | 2023 | 2022 | |
| Net sales | $2,127 | | $2,352 | | $4,106 | $4,553 |
| Cost of sales | 1,358 | | 1,583 | | 2,668 | 3,080 |
| Gross profit | 769 | | 769 | | 1,438 | 1,473 |
| Selling, general and administrative expenses | 366 | | 361 | | 720 | 712 |
| Operating profit | 403 | | 408 | | 718 | 761 |
| Other income (expense), net: | | | | | | |
First 8 of 21 rows. The download has all of them.
Table 4 after “(In Millions)”
| Three Months Ended June 30, | Six Months Ended June 30, | | | | |
| 2023 | 2022 | | 2023 | 2022 | |
| Net income | $278 | | $294 | | $499 | $546 |
| Less: Net income attributable to noncontrolling interest | 15 | | 16 | | 31 | 35 |
| Net income attributable to Masco Corporation | $263 | | $278 | | $468 | $511 |
| Other comprehensive (loss) income, net of tax | | | | | | |
| Cumulative translation adjustment | $(7) | | $(55) | | $15 | $(66) |
| Pension and other post-retirement benefits | — | | 1 | | — | 2 |
First 8 of 14 rows. The download has all of them.
Table 5 after “(In Millions)”
| Six Months Ended June 30, | | |
| 2023 | 2022 | |
| CASH FLOWS FROM (FOR) OPERATING ACTIVITIES: | | | |
| Cash provided by operations | $632 | | $662 |
| Increase in receivables | (243) | | (296) |
| Decrease (increase) in inventories | 95 | | (159) |
| Decrease in accounts payable and accrued liabilities, net | (36) | | (33) |
| Net cash from operating activities | 448 | | 174 |
First 8 of 28 rows. The download has all of them.
Table 6 after “(In Millions, Except Per Common Share Data)”
| Total | CommonShares($1 par value) | | Paid-In Capital | Retained (Deficit) Earnings | Accumulated Other Comprehensive Income (Loss) | | Noncontrolling Interest | | |
| Balance, January 1, 2022 | $56 | | $241 | | $— | | $(652) | | $232 | $235 |
| Total comprehensive income (loss) | 242 | | — | | — | | 233 | | (6) | 15 |
| Shares issued | 1 | | 1 | | — | | — | | — | — |
| Shares retired: | | | | | | | | | | |
| Repurchased | (364) | | (6) | | (27) | | (331) | | — | — |
| Surrendered (non-cash) | (17) | | — | | — | | (17) | | — | — |
| Cash dividends declared | (67) | | — | | — | | (67) | | — | — |
First 8 of 19 rows. The download has all of them.
Table 7 after “(In Millions, Except Per Common Share Data)”
| Total | CommonShares($1 par value) | | Paid-In Capital | Retained (Deficit) Earnings | Accumulated Other Comprehensive Income (Loss) | | Noncontrolling Interest | | |
| Balance, January 1, 2023 | $(262) | | $225 | | $16 | | $(947) | | $226 | $218 |
| Total comprehensive income | 243 | | — | | — | | 205 | | 17 | 21 |
| Shares issued | 6 | | 1 | | 5 | | — | | — | — |
| Shares retired: | | | | | | | | | | |
| Repurchased | (56) | | (1) | | (32) | | (23) | | — | — |
| Surrendered (non-cash) | (17) | | — | | — | | (17) | | — | — |
| Cash dividends declared | (65) | | — | | — | | (65) | | — | — |
First 8 of 18 rows. The download has all of them.
Table 8 after “Our revenues are derived from sales to customers in North America and Internationally, principally Europe. Net sales from these geographic m”
| Three Months Ended June 30, 2023 | | | | |
| Plumbing Products | Decorative Architectural Products | | Total | |
| Primary geographic markets: | | | | | |
| North America | $816 | | $902 | | $1,718 |
| International, principally Europe | 409 | | — | | 409 |
| Total | $1,225 | | $902 | | $2,127 |
| Six Months Ended June 30, 2023 | | | | |
| Plumbing Products | Decorative Architectural Products | | Total | |
First 8 of 12 rows. The download has all of them.
Table 9 after “B. REVENUE (Concluded)”
| Three Months Ended June 30, 2022 | | | | |
| Plumbing Products | Decorative Architectural Products | | Total | |
| Primary geographic markets: | | | | | |
| North America | $926 | | $979 | | $1,905 |
| International, principally Europe | 447 | | — | | 447 |
| Total | $1,373 | | $979 | | $2,352 |
| Six Months Ended June 30, 2022 | | | | |
| Plumbing Products | Decorative Architectural Products | | Total | |
First 8 of 12 rows. The download has all of them.
Table 10 after “Changes in the allowance for credit losses deducted from accounts receivable were as follows, in millions:”
| Six Months Ended June 30, 2023 | Twelve Months Ended December 31, 2022 | |
| Balance at January 1 | $8 | | $6 |
| Provision for expected credit losses during the period | 2 | | 5 |
| Write-offs charged against the allowance | (2) | | (4) |
| Recoveries of amounts previously written off | 1 | | 1 |
| Balance at end of period | $9 | | $8 |
Table 11 after “The components of inventory were as follows, in millions:”
| At June 30, 2023 | At December 31, 2022 | |
| Finished goods | $717 | | $715 |
| Raw materials | 328 | | 408 |
| Work in process | 99 | | 113 |
| Total | $1,144 | | $1,236 |
Table 12 after “Goodwill at June 30, 2023, by segment, was as follows, in millions:”
| Gross Goodwill At June 30, 2023 | Accumulated Impairment Losses | | Net Goodwill At June 30, 2023 | |
| Plumbing Products | $614 | | $(301) | | $313 |
| Decorative Architectural Products | 366 | | (139) | | 227 |
| Total | $980 | | $(440) | | $540 |
Table 13 after “The changes in the carrying amount of goodwill for the six months ended June 30, 2023, by segment, were as follows, in millions:”
| Gross Goodwill At December 31, 2022 | Accumulated Impairment Losses | | Net Goodwill At December 31, 2022 | | Foreign Currency Translation | Net Goodwill At June 30, 2023 | | |
| Plumbing Products | $611 | | $(301) | | $310 | | | $3 | $313 |
| Decorative Architectural Products | 366 | | (139) | | 227 | | | — | 227 |
| Total | $977 | | $(440) | | $537 | | | $3 | $540 |
Table 14 after “Information by segment and geographic area was as follows, in millions:”
| Three Months Ended June 30, | Six Months Ended June 30, | | | | | | | | | | | | | |
| 2023 | 2022 | | 2023 | 2022 | | 2023 | | 2022 | 2023 | 2022 | | | | |
| Net Sales (A) | Operating Profit | | Net Sales (A) | Operating Profit | | | | | | | | | | |
| Our operations by segment were: | | | | | | | | | | | | | | | |
| Plumbing Products | $1,225 | | $1,373 | | $244 | | | $238 | | $2,447 | | $2,732 | | $450 | $466 |
| Decorative Architectural Products | 902 | | 979 | | 180 | | | 192 | | 1,659 | | 1,821 | | 312 | 347 |
| Total | $2,127 | | $2,352 | | $424 | | | $430 | | $4,106 | | $4,553 | | $762 | $813 |
| Our operations by geographic area were: | | | | | | | | | | | | | | | |
First 8 of 15 rows. The download has all of them.
Table 15 after “Other, net, which is included in other income (expense), net, was as follows, in millions:”
| Three Months Ended June 30, | Six Months Ended June 30, | | | | |
| 2023 | 2022 | | 2023 | 2022 | |
| Net periodic pension and post-retirement benefit expense | $(3) | | $(3) | | $(6) | $(5) |
| Income from cash and cash investments | 1 | | 1 | | 2 | 1 |
| Foreign currency transaction losses | (1) | | (6) | | — | (2) |
| Realized gains from private equity funds | — | | — | | 1 | — |
| Contingent consideration (A) | — | | 28 | | — | 24 |
| Loss on sale of businesses, net | — | | (3) | | — | (1) |
First 8 of 10 rows. The download has all of them.
Table 16 after “Reconciliations of the numerators and denominators used in the computations of basic and diluted income per common share were as follows, in”
| Three Months Ended June 30, | Six Months Ended June 30, | | | | |
| 2023 | 2022 | | 2023 | 2022 | |
| Numerator (basic and diluted): | | | | | | |
| Net income | $263 | | $278 | | $468 | $511 |
| Less: Allocation to redeemable noncontrolling interest | — | | 1 | | — | — |
| Less: Allocation to unvested restricted stock awards | — | | 1 | | — | 2 |
| Net income attributable to common shareholders | $263 | | $276 | | $468 | $509 |
| Denominator: | | | | | | |
First 8 of 11 rows. The download has all of them.
Table 17 after “The following stock options, restricted stock units and performance restricted stock units were excluded from the computation of weighted-av”
| Three Months Ended June 30, | Six Months Ended June 30, | | | | |
| 2023 | 2022 | 2023 | | 2022 | |
| Number of stock options | 897 | 670 | 843 | | 599 | |
| Number of restricted stock units | 113 | 249 | 202 | | 17 | |
| Number of performance restricted stock units | 15 | — | | 15 | | — |
Table 18 after “Changes in our warranty liability were as follows, in millions:”
| Six Months Ended June 30, 2023 | Twelve Months Ended December 31, 2022 | |
| Balance at January 1 | $80 | | $80 |
| Accruals for warranties issued during the period | 19 | | 40 |
| Accruals related to pre-existing warranties | 3 | | (3) |
| Settlements made (in cash or kind) during the period | (20) | | (34) |
| Other, net (including currency translation) | 1 | | (3) |
| Balance at end of period | $83 | | $80 |
Table 19 after “Below is a summary of our net sales, in millions, for the three and six months ended June 30, 2023 and 2022:”
| Three Months Ended June 30, | Six Months Ended June 30, | | | | | | | | |
| 2023 | 2022 | | Change | 2023 | 2022 | | Change | | |
| Net sales, as reported | $2,127 | | $2,352 | | $(225) | | $4,106 | | $4,553 | $(447) |
| Currency translation | 4 | | — | | 4 | | 34 | | — | 34 |
| Net sales, excluding the effect of currency translation | $2,131 | | $2,352 | | $(221) | | $4,140 | | $4,553 | $(413) |
Table 20 after “Below is a summary of our gross profit, in millions, and gross margin for the three and six months ended June 30, 2023 and 2022:”
| Three Months Ended June 30, | Six Months Ended June 30, | | | | | | | |
| 2023 | 2022 | | Favorable / (Unfavorable) | 2023 | 2022 | Favorable / (Unfavorable) | | |
| Gross profit | $769 | $769 | | $— | $1,438 | $1,473 | $(35) | | |
| Gross margin | 36.2% | | 32.7% | | 350 bps | 35.0% | | 32.4% | 260 bps |
Table 21 after “Below is a summary of our selling, general and administrative expenses, in millions, and selling, general and administrative expenses as a p”
| Three Months Ended June 30, | Six Months Ended June 30, | | | | | | | |
| 2023 | 2022 | | (Favorable) / Unfavorable | 2023 | 2022 | (Favorable) / Unfavorable | | |
| Selling, general and administrative expenses | $366 | $361 | | $5 | $720 | $712 | $8 | | |
| Selling, general and administrative expenses as percentage of net sales | 17.2% | | 15.3% | | 190 bps | 17.5% | | 15.6% | 190 bps |
Table 22 after “Below is a summary of our operating profit, in millions, and operating profit margin for the three and six months ended June 30, 2023 and 20”
| Three Months Ended June 30, | Six Months Ended June 30, | | | | | | | |
| 2023 | 2022 | | Favorable / (Unfavorable) | 2023 | 2022 | Favorable / (Unfavorable) | | |
| Operating profit | $403 | $408 | | $(5) | $718 | $761 | $(43) | | |
| Operating profit margin | 18.9% | | 17.3% | | 160 bps | 17.5% | | 16.7% | 80 bps |
Table 23 after “Below is a summary of our interest expense, in millions, for the three and six months ended June 30, 2023 and 2022:”
| Three Months Ended June 30, | Six Months Ended June 30, | | | | | | | | |
| 2023 | 2022 | | Favorable / (Unfavorable) | 2023 | 2022 | | Favorable / (Unfavorable) | | |
| Interest expense | $(28) | | $(28) | | $— | | $(56) | | $(53) | $(3) |
Table 24 after “Below is a summary of our other, net, in millions, for the three and six months ended June 30, 2023 and 2022:”
| Three Months Ended June 30, | Six Months Ended June 30, | | | | | | | | |
| 2023 | 2022 | | Favorable / (Unfavorable) | 2023 | 2022 | | Favorable / (Unfavorable) | | |
| Other, net | $(1) | | $17 | | $(18) | | $(3) | | $16 | $(19) |
Table 25 after “Below is a summary of our income tax expense, in millions, and our effective tax rate for the three and six months ended June 30, 2023 and 2”
| Three Months Ended June 30, | Six Months Ended June 30, | | | | | | | | |
| 2023 | 2022 | | (Favorable) / Unfavorable | 2023 | 2022 | | (Favorable) / Unfavorable | | |
| Income tax expense | $96 | $103 | | $(7) | $160 | $178 | | $(18) | | |
| Effective tax rate | 26% | | 26% | | —% | | 24% | | 25% | (1)% |
Table 26 after “Below is a summary of our net income and diluted income per common share, in millions, except per share data, for the three and six months e”
| Three Months Ended June 30, | Six Months Ended June 30, | | | | | | | | |
| 2023 | 2022 | | Favorable / (Unfavorable) | 2023 | 2022 | | Favorable / (Unfavorable) | | |
| Net income | $263 | | $278 | | $(15) | | $468 | | $511 | $(43) |
| Diluted income per common share | $1.16 | | $1.18 | | $(0.02) | | $2.07 | | $2.15 | $(0.08) |
Table 27 after “The following tables set forth our net sales and operating profit information by business segment and geographic area, dollars in millions.”
| Three Months Ended June 30, | PercentChange | | Six Months Ended June 30, | PercentChange | | | | | |
| 2023 | 2022 | | 2023 vs. 2022 | 2023 | 2022 | | 2023 vs. 2022 | | |
| Net Sales: | | | | | | | | | | |
| Plumbing Products | $1,225 | | $1,373 | | (11)% | | $2,447 | | $2,732 | (10)% |
| Decorative Architectural Products | 902 | | 979 | | (8)% | | 1,659 | | 1,821 | (9)% |
| Total | $2,127 | | $2,352 | | (10)% | | $4,106 | | $4,553 | (10)% |
| North America | $1,718 | | $1,905 | | (10)% | | $3,273 | | $3,639 | (10)% |
| International, principally Europe | 409 | | 447 | | (9)% | | 833 | | 914 | (9)% |
First 8 of 9 rows. The download has all of them.
Table 28 after “The following tables set forth our net sales and operating profit information by business segment and geographic area, dollars in millions.”
| Three Months Ended June 30, | PercentChange | | Six Months Ended June 30, | PercentChange | | | | | |
| 2023 | 2022 | | 2023 vs. 2022 | 2023 | 2022 | | 2023 vs. 2022 | | |
| Operating Profit (A): | | | | | | | | | | |
| Plumbing Products | $244 | | $238 | | 3% | | $450 | | $466 | (3)% |
| Decorative Architectural Products | 180 | | 192 | | (6)% | | 312 | | 347 | (10)% |
| Total | $424 | | $430 | | (1)% | | $762 | | $813 | (6)% |
| North America | $358 | | $356 | | 1% | | $624 | | $656 | (5)% |
| International, principally Europe | 66 | | 74 | | (11)% | | 138 | | 157 | (12)% |
First 8 of 11 rows. The download has all of them.
Table 29 after “The following table provides information regarding the repurchase of our common stock for the three months ended June 30, 2023 under the 202”
| Period | Total Number Of Shares Purchased | Average Price Paid Per Common Share | | Total Number Of Shares Purchased As Part Of Publicly Announced Plans or Programs | Maximum Value Of Shares That May Yet Be Purchased Under The Plans Or Programs | |
| 4/1/23 - 4/30/23 | 517,434 | | $49.32 | | 517,434 | $1,919,001,671 |
| 5/1/23 - 5/31/23 | — | | $— | | — | $1,919,001,671 |
| 6/1/23 - 6/30/23 | — | | $— | | — | $1,919,001,671 |
| Total for the quarter | 517,434 | | $49.32 | | 517,434 | $1,919,001,671 |
Table 30 after “Exhibits”
| 10.a | Severance and Release Agreement dated May 31, 2023 between Masco Corporation and John G. Sznewajs. |
| 10.b | Agreement dated May 31, 2023 between Masco Corporation and John G. Sznewajs. |
| 10.c | Severance and Release Agreement dated July 7, 2023 between Masco Corporation and Richard A. O'Reagan. |
| 31.a | Certification by Chief Executive Officer required by Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934. |
| 31.b | Certification by Chief Financial Officer required by Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934. |
| 32 | Certifications required by Rule 13a-14(b) or Rule 15d-14(b) of the Securities Exchange Act of 1934 and Section 1350 of Chapter 63 of Title 18 of the United States Code. |
| 101 | The following financial information from Masco Corporation's Quarterly Report on Form 10-Q for the quarter ended June 30, 2023, formatted in Inline XBRL: (i) the Condensed Consolidated Balance Sheets, (ii) the Condensed Consolidated Statements of Operations, (iii) the Condensed Consolidated Statements of Comprehensive Income (Loss), (iv) the Condensed Consolidated Statements of Cash Flows, (v) the Condensed Consolidated Statements of Shareholders' Equity, and (vi) Notes to Condensed Consolidated Financial Statements. |
| 104 | Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101) |