Exhibit 99

 

		FOR IMMEDIATE RELEASE

Investor / Media Contact

Maria Duey

Vice President – Investor Relations and Communications

313.792.5500

maria_duey@mascohq.com

MASCO CORPORATION REPORTS

2011 RESULTS

2011 Full-Year Commentary

 

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At $7.5 billion, net sales were relatively flat compared to 2010.

 

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Results for key financial measures, as adjusted for certain items (see Exhibit A) and with a normalized tax rate of 36 percent, compared to the full-year of 2010 were as follows:

 

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Gross profit margins were 25.1 percent compared to 26.7 percent

 

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Operating profit margins were 4.4 percent compared to 5.9 percent

 

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Income from continuing operations was $.02 per common share compared to $.23 per common share

 

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Loss from continuing operations, as reported was $(1.34) per common share compared to $(2.94) per common share in 2010.

 

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We recorded an impairment charge for goodwill and other intangible assets which reduced our reported earnings by $(.96) per common share for the full-year and fourth quarter of 2011.

 

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Working capital as a percent of sales improved to 12.2 percent at December 31, 2011, compared to 13.4 percent at December 31, 2010.

 

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Free cash flow (cash from operations, less capital expenditures, before dividends) was approximately $71 million.

 

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We ended 2011 with approximately $1.7 billion of cash.

Taylor, Mich., (February 13, 2012) — Masco Corporation (NYSE: MAS) today reported that net sales from continuing operations for the year ended December 31, 2011 at $7.5 billion were relatively flat, compared to 2010. North American sales decreased three percent and International sales increased eight percent compared to 2010. In local currencies, International sales increased three percent compared with 2010.

Income from continuing operations was $.02 per common share and $.23 per common share for 2011 and 2010, respectively, excluding the items in Exhibit A and with a normalized tax rate of 36 percent. Including these items, loss from continuing operations, as reported was $(1.34) per common share and $(2.94) per common share for the years ended December 31, 2011 and 2010, respectively.

“Our performance in 2011 was challenged by commodity cost volatility, a competitive retail environment, a flat housing environment in North America and difficult economic conditions in Europe” said Masco’s President and CEO, Tim Wadhams. “Despite these headwinds, we continued to: strengthen our leading brand positions, including the introduction of new products and programs; improve our cost structure and productivity; invest in future growth opportunities and improve our working capital management.”

 

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2011 marked the completion of our major rationalization activities, including business consolidations, plant closures, headcount reductions, system implementations and other initiatives. During 2011 and 2010, we incurred costs and charges of $121 million pre-tax ($.22 per common share, after tax) and $208 million pre-tax ($.38 per common share, after tax), respectively, related to these initiatives. “We believe these actions have better positioned our businesses for the current environment and have improved our leverage to a housing recovery,” said Mr. Wadhams.

In the fourth quarter of 2011, we recorded non-cash, pre-tax impairment charges for goodwill and other intangible assets of $494 million ($.96 per common share, after tax). The impairment charge for goodwill and other intangible assets is primarily related to our North American window business in our Other Specialty Products segment.

In the fourth quarter of 2010, we recorded non-cash, pre-tax impairment charges for goodwill and other intangible assets of $698 million ($1.68 per common share, after tax).

We recently successfully amended our revolving credit facility to reflect the impact of our impairment charges in 2011 for goodwill and other intangible assets and the valuation allowance for our deferred tax assets on our net worth. We currently have borrowing capacity of approximately $630 million available under the revolving credit facility.

Fourth Quarter 2011

2011 Fourth Quarter Commentary

 

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Sales increased one percent to over $1.7 billion

 

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Results for key financial measures, as adjusted for certain items (see Exhibit B) and with a normalized tax rate of 36 percent, compared to the fourth quarter of 2010 were as follows:

 

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Gross profit margins were 21.9 percent compared to 23.5 percent

 

•

Operating profit margins were 1.6 percent compared to 1.9 percent

 

•

Loss from continuing operations was $(.09) per common share compared to $(.08) per common share

 

•

Loss from continuing operations, as reported was $(1.42) per common share compared to $(2.92) per common share in the fourth quarter of 2010

Fourth quarter 2011 net sales from continuing operations increased one percent, to over $1.7 billion compared with $1.7 billion for the fourth quarter of 2010. North American sales increased two percent and International sales decreased one percent. In local currencies, International sales were flat compared with the fourth quarter of 2010.

Loss from continuing operations was $(.09) per common share and $(.08) per common share, for the fourth quarters of 2011 and 2010, respectively, excluding the items in Exhibit B and with a normalized tax rate of 36 percent. Including these items, loss from continuing operations, as reported, was $(1.42) per common share in the fourth quarter of 2011 compared to $(2.92) per common share in the fourth quarter of 2010.

During the fourth quarters of 2011 and 2010, we incurred business rationalization costs and charges of $61 million pre-tax ($.11 per common share, after tax) and $104 million pre-tax ($.19 per common share, after tax), respectively.

 

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Outlook 2012

“While 2011 was a difficult year, we head into 2012 with cautious optimism. The major restructuring activities impacting our Installation segment and our North American cabinet operations are behind us and those businesses experienced improving operational trends in the fourth quarter. While our efforts to reduce costs and increase revenues did not improve performance as quickly as we anticipated in 2011, we firmly believe that these actions will drive significant improvement in 2012, even if we see no improvement in the housing markets. In cabinetry, we have taken significant actions to drive improvement both in North America and Europe, but do remain concerned about general economic conditions in the UK and Europe” said Mr. Wadhams.

“We are focused on achieving our 2012 strategic initiatives, which include leveraging our brands, reducing our costs, improving our Installation and Cabinet segments and strengthening our balance sheet. We believe these initiatives, coupled with the actions we have taken over the past several years, should position us for improved results in 2012 even in a flat housing market, and continue to believe that we will outperform as the housing market recovers.”

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 2011 fourth quarter supplemental material, including a presentation in PDF format, will be distributed after the market closes on February 13, 2012 and will be available on the Company’s Web site at www.masco.com.

A conference call regarding items contained in this release is scheduled for Tuesday, February 14, 2012 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 (719) 325-2397 (confirmation #1748843). 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 #1748843) approximately two hours after the end of the call and will continue through February 21, 2012.

 

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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 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, and our ability to achieve cost savings through restructuring and other initiatives. 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 Web site at www.masco.com.

# # #

 

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MASCO CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - UNAUDITED

For the Three Months and Twelve Months Ended December 31, 2011 and 2010

(In Millions, Except Per Common Share Data)

 

		Three Months Ended								Twelve Months Ended
		December 31,								December 31,
		2011				2010				2011				2010
Net sales		$	1,738			$	1,716			$	7,467			$	7,486
Cost of sales			1,406				1,407				5,683				5,653
Gross profit			332				309				1,784				1,833
Selling, general and administrative expenses			369				380				1,585				1,598
Impairment charges for goodwill and other intangible assets			494				698				494				698
Operating loss			(531	)			(769	)			(295	)			(463	)
Other income (expense), net			(62	)			(55	)			(177	)			(278	)
Loss before income taxes			(593	)			(824	)			(472	)			(741	)
Income tax (benefit) expense			(104	)			187				(49	)			240
Loss from continuing operations			(489	)			(1,011	)			(423	)			(981	)
Loss from discontinued operations, net			(79	)			(14	)			(110	)			(21	)
Net loss			(568	)			(1,025	)			(533	)			(1,002	)
Less: Net income attributable to non-controlling interest			5				9				42				41
Net loss attributable to Masco Corporation		$	(573	)		$	(1,034	)		$	(575	)		$	(1,043	)
Loss per common share attributable to Masco Corporation (diluted):
Loss from continuing operations		$	(1.42	)		$	(2.92	)		$	(1.34	)		$	(2.94	)
Loss from discontinued operations, net			(0.23	)			(0.04	)			(0.32	)			(0.06	)
Net loss attributable to Masco Corporation		$	(1.65	)		$	(2.96	)		$	(1.66	)		$	(3.00	)
Average diluted common shares outstanding			348				349				348				349
Amounts attributable to Masco Corporation:
Loss from continuing operations		$	(494	)		$	(1,020	)		$	(465	)		$	(1,022	)
Loss from discontinued operations, net			(79	)			(14	)			(110	)			(21	)
Net loss		$	(573	)		$	(1,034	)		$	(575	)		$	(1,043	)

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MASCO CORPORATION

Reconciliations - Exhibit A - UNAUDITED

For the Twelve Months Ended December 31, 2011 and 2010

(In Millions, Except Per Common Share Data)

Gross Profit and Operating Profit Reconciliations

 

		Twelve Months Ended
		December 31,
		2011				2010
Sales		$	7,467			$	7,486
Gross profit, as reported		$	1,784			$	1,833
Rationalization charges			91				166
Gross profit, as adjusted		$	1,875			$	1,999
Gross margin, as reported			23.9	%			24.5	%
Gross margin, as adjusted			25.1	%			26.7	%
Operating loss, as reported		$	(295	)		$	(463	)
Rationalization charges			121				208
Impairment of goodwill and other intangible assets			494				698
Litigation charge			9				—
Operating profit, as adjusted		$	329			$	443
Operating margin, as reported			-4.0	%			-6.2	%
Operating margin, as adjusted			4.4	%			5.9	%
Earnings Per Common Share Reconciliation
		Twelve Months Ended
		December 31,
		2011				2010
Loss before income taxes - as reported		$	(472	)		$	(741	)
Rationalization charges			121				208
Impairment of goodwill and other intangible assets			494				698
Litigation charge			9				—
(Gains) losses from financial investments			(73	)			(9	)
Impairment of financial investments			—				34
Income before income taxes - as adjusted		$	79			$	190
Tax at 36% rate			(28	)			(68	)
Less: Net income attributable to non-controlling interest			(42	)			(41	)
Net income - as adjusted		$	9			$	81
Earnings per common share - as adjusted		$	0.02			$	0.23
Shares outstanding			348				349

The Company believes that certain non-GAAP performance measures and ratios used in managing the business may provide additional meaningful comparisons between current results and results in prior periods. Non-GAAP performance measures and ratios should be viewed in addition to, and not as an alternative for, the Company’s reported results under accounting principles generally accepted in the United States.

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MASCO CORPORATION

Reconciliations - Exhibit B - UNAUDITED

For the Three Months Ended December 31, 2011 and 2010

(In Millions, Except Per Common Share Data)

Gross Profit and Operating Profit Reconciliations

 

		Three Months Ended
		December 31,
		2011				2010
Sales		$	1,738			$	1,716
Gross profit, as reported		$	332			$	309
Rationalization charges			48				95
Gross profit, as adjusted		$	380			$	404
Gross margin, as reported			19.1	%			18.0	%
Gross margin, as adjusted			21.9	%			23.5	%
Operating loss, as reported		$	(531	)		$	(769	)
Rationalization charges			61				104
Impairment of goodwill and other intangible assets			494				698
Litigation charge			3				—
Operating profit, as adjusted		$	27			$	33
Operating margin, as reported			-30.6	%			-44.8	%
Operating margin, as adjusted			1.6	%			1.9	%
Earnings Per Common Share Reconciliation
		Three Months Ended
		December 31,
		2011				2010
Loss before income taxes - as reported		$	(593	)		$	(824	)
Rationalization charges			61				104
Impairment of goodwill and other intangible assets			494				698
Litigation charge			3				—
(Gains) losses from financial investments			(4	)			(11	)
Impairment of financial investments			—				1
Loss before income taxes - as adjusted		$	(39	)		$	(32	)
Tax at 36% rate			14				12
Less: Net income attributable to non-controlling interest			(5	)			(9	)
Net loss - as adjusted		$	(30	)		$	(29	)
Loss per common share - as adjusted		$	(0.09	)		$	(0.08	)
Shares outstanding			348				349

The Company believes that certain non-GAAP performance measures and ratios used in managing the business may provide additional meaningful comparisons between current results and results in prior periods. Non-GAAP performance measures and ratios should be viewed in addition to, and not as an alternative for, the Company's reported results under accounting principles generally accepted in the United States.

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Masco Corporation

Key Financial Data As Reported - Unaudited

Q4 - 2011 and 2010

(In Millions, Except Earnings Per Share)

 

Sales & Earnings		12/31/2011				12/31/2010				Change
Net Sales		$	1,738			$	1,716				1	%
Operating (Loss)		$	(531	)		$	(769	)			N/A
Operating (Loss) % of Net Sales			-30.6	%			-44.8	%			1,420	bps
Other Income (Expense), Net		$	(62	)		$	(55	)		$	(7	)
Income Tax (Benefit) Expense		$	(104	)		$	187				N/A
(Loss) Attributable to Masco Corporation		$	(494	)		$	(1,020	)			N/A
Diluted EPS		$	(1.42	)		$	(2.92	)			N/A
Operating Expenses		12/31/2011				12/31/2010				Change
Cost of Sales		$	1,406			$	1,407				0	%
Gross Margin			19.1	%			18.0	%			110	bps
SG&A Expenses (Including GCE)		$	369			$	380				-3	%
SG&A as a % of net sales			21.2	%			22.1	%			90	bps
General Corporate Expense (GCE)		$	23			$	26				-12	%
General Corp Expense as a % of net sales			1.3	%			1.5	%			20	bps
Business Segments		12/31/2011				12/31/2010				Change
Cabinets and Related Products:
Net Sales		$	287			$	304				-6	%
Operating (Loss)		$	(95	)		$	(137	)			N/A
Operating Loss % of Net Sales			-33.1	%			-45.1	%			1,200	bps
Plumbing Products:
Net Sales		$	674			$	661				2	%
Operating Profit		$	52			$	64				N/A
Operating Profit % of Net Sales			7.7	%			9.7	%			(200	)bps
Installation and Other Services:
Net Sales		$	285			$	254				12	%
Operating (Loss)		$	(8	)		$	(718	)			N/A
Operating Loss % of Net Sales			-2.8	%			-282.7	%			N/A	bps
Decorative Architectural Products:
Net Sales		$	348			$	336				4	%
Operating (Loss) Profit		$	(51	)		$	45				N/A
Operating (Loss) Profit % of Net Sales			-14.7	%			13.4	%			N/A	bps
Other Specialty Products:
Net Sales		$	144			$	161				-11	%
Operating (Loss) Profit		$	(403	)		$	3				N/A
Operating Profit % of Net Sales			-279.9	%			1.9	%			N/A	bps
Total Segment Reported:
Net Sales		$	1,738			$	1,716				1	%
Operating (Loss)		$	(505	)		$	(743	)			N/A
Operating (Loss) % of Net Sales			-29.1	%			-43.3	%			1,420	bps
Business Regions		12/31/2011				12/31/2010				Change
North America
Net Sales		$	1,320			$	1,293				2	%
Operating (Loss)		$	(459	)		$	(771	)			N/A
Operating (Loss) % of Net Sales			-34.8	%			-59.6	%			2,480	bps
International, principally Europe
Net Sales		$	418			$	423				-1	%
Operating (Loss) Profit		$	(46	)		$	28				N/A
Operating (Loss) Profit % of Net Sales			-11.0	%			6.6	%			(1,760	)bps

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Masco Corporation

Key Financial Data As Reported - Unaudited

Year-to-date December 31, 2011 and 2010

(In Millions, Except Earnings Per Share)

 

Sales & Earnings		12/31/2011				12/31/2010				Change
Net Sales		$	7,467			$	7,486				0	%
Operating (Loss)		$	(295	)		$	(463	)			N/A
Operating (Loss) % of Net Sales			-4.0	%			-6.2	%			220	bps
Other Income (Expense), Net		$	(177	)		$	(278	)		$	101
Income Tax (Benefit) Expense		$	(49	)		$	240				N/A
(Loss) Attributable to Masco Corporation		$	(465	)		$	(1,022	)			N/A
Diluted EPS		$	(1.34	)		$	(2.94	)			N/A
Operating Expenses		12/31/2011				12/31/2010				Change
Cost of Sales		$	5,683			$	5,653				1	%
Gross Margin			23.9	%			24.5	%			(60	)bps
SG&A Expenses (Including GCE)		$	1,585			$	1,598				-1	%
SG&A as a % of net sales			21.2	%			21.3	%			10	bps
General Corporate Expense (GCE)		$	118			$	110				7	%
General Corp Expense as a % of net sales			1.6	%			1.5	%			(10	)bps
Business Segments		12/31/2011				12/31/2010				Change
Cabinets and Related Products:
Net Sales		$	1,231			$	1,464				-16	%
Operating (Loss)		$	(206	)		$	(250	)			N/A
Operating Loss % of Net Sales			-16.7	%			-17.1	%			40	bps
Plumbing Products:
Net Sales		$	2,913			$	2,692				8	%
Operating Profit		$	322			$	331				N/A
Operating Profit % of Net Sales			11.1	%			12.3	%			(120	)bps
Installation and Other Services:
Net Sales		$	1,077			$	1,041				3	%
Operating (Loss)		$	(79	)		$	(798	)			N/A
Operating Loss % of Net Sales			-7.3	%			-76.7	%			N/A	bps
Decorative Architectural Products:
Net Sales		$	1,670			$	1,693				-1	%
Operating Profit		$	196			$	345				N/A
Operating Profit % of Net Sales			11.7	%			20.4	%			N/A	bps
Other Specialty Products:
Net Sales		$	576			$	596				-3	%
Operating (Loss) Profit		$	(401	)		$	19				N/A
Operating (Loss) Profit % of Net Sales			-69.6	%			3.2	%			N/A	bps
Total Segment Reported:
Net Sales		$	7,467			$	7,486				0	%
Operating (Loss)		$	(168	)		$	(353	)			N/A
Operating (Loss) % of Net Sales			-2.2	%			-4.7	%			250	bps

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Masco Corporation

Key Financial Data As Reported - Unaudited

Year-to-date December 31, 2011 and 2010

(In Millions, Except Earnings Per Share)

 

Business Regions		12/31/2011				12/31/2010				Change
North America
Net Sales		$	5,669			$	5,823				-3	%
Operating (Loss)		$	(259	)		$	(507	)			N/A
Operating (Loss) % of Net Sales			-4.6	%			-8.7	%			410	bps
International, principally Europe
Net Sales		$	1,798			$	1,663				8	%
Operating Profit		$	91			$	154				N/A
Operating Profit % of Net Sales			5.1	%			9.3	%			(420	)bps
Working Capital		12/31/2011				12/31/2010
Receivable Days			47				47				—
Inventory Days			52				49				3
Payable Days			63				51				12
Working Capital (Receivables+Inventory-Payables)		$	913			$	1,018				-10	%
Working Capital as a % of Sales (As Reported TTM1)			12.2	%			13.4	%			(120	)bps
Other		12/31/2011				12/31/2010
Dividend Payments		$	107			$	108
Cash Paid for Share Repurchases2		$	30			$	45
Common Shares Repurchased2			2				3
CAPEX		$	151			$	137
Depreciation and Amortization		$	263			$	279
Average diluted common shares outstanding			348				349
Balance Sheet Information
Long-Term Debt		$	3,222			$	4,032
Notes Payable		$	803			$	66
Total Debt		$	4,025			$	4,098
Shareholders’ Equity		$	742			$	1,582
Debt to Capital			84	%			72	%
Cash		$	1,656			$	1,715

¹ - Trailing Twelve Months

² - Common shares were repurchased to offset the effect of stock award grants in the first quarters of 2011 and 2010.

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Masco Corporation - 4th Quarter 2011

 

Page
1		Condensed Consolidated Statements of Operations - 2011 & 2010 by Quarter - Unaudited
2		Notes to Condensed Consolidated Statements of Operations - 2011 & 2010 by Quarter - Unaudited
3		2011 Quarterly Segment Data Excluding Costs and Charges for Business Rationalizations and Other Initiatives and Impairment Charges for Goodwill and Other Intangible Assets - Unaudited
4		2011 Quarterly Segment Data Including Costs and Charges for Business Rationalizations and Other Initiatives and Impairment Charges for Goodwill and Other Intangible Assets - Unaudited
5		2011 Costs and Charges for Business Rationalizations and Other Initiatives and Impairment Charges for Goodwill and Other Intangible Assets - Unaudited
6		2010 Quarterly Segment Data Excluding Costs and Charges for Business Rationalizations and Other Initiatives and Impairment Charges for Goodwill and Other Intangible Assets - Unaudited
7		2010 Quarterly Segment Data Including Costs and Charges for Business Rationalizations and Other Initiatives and Impairment Charges for Goodwill and Other Intangible Assets - Unaudited
8		2010 Costs and Charges for Business Rationalizations and Other Initiatives and Impairment Charges for Goodwill and Other Intangible Assets - Unaudited
9		Other Income (Expense), Net - 2011 & 2010 by Quarter - Unaudited
10		Condensed Consolidated Balance Sheets - Unaudited
		GAAP Reconciliations:
11		Sales Growth Excluding the Effect of Acquisitions and Currency Translation - Unaudited
12		Operating Profit and Margins - Unaudited

 

Index

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MASCO CORPORATION

Condensed Consolidated Statements of Operations

2011 & 2010 - by Quarter - Unaudited

(dollars in millions, except per share data)

 

				2011																				2010
				Year				Qtr. 4				Qtr. 3				Qtr. 2				Qtr. 1				Year				Qtr. 4				Qtr. 3				Qtr. 2				Qtr. 1
		Net Sales		$	7,467			$	1,738			$	1,978			$	1,998			$	1,753			$	7,486			$	1,716			$	1,933			$	2,018			$	1,819
		Cost of Sales			5,683				1,406				1,483				1,466				1,328				5,653				1,407				1,441				1,475				1,330
		Gross Profit			1,784				332				495				532				425				1,833				309				492				543				489
		(Gross Margin as a % of Sales)			23.9	%			19.1	%			25.0	%			26.6	%			24.2	%			24.5	%			18.0	%			25.5	%			26.9	%			26.9	%
		SG&A Expense (before lines 1, 2, 3)			1,458				343				353				395				367				1,488				354				360				394				380
		(S,G&A Expense as a % of Sales)			19.5	%			19.7	%			17.8	%			19.8	%			20.9	%			19.9	%			20.6	%			18.6	%			19.5	%			20.9	%
		Operating Profit (before lines 1, 2, 3)			326				(11	)			142				137				58				345				(45	)			132				149				109
		(Operating Margin as a % of Sales)			4.4	%			-0.6	%			7.2	%			6.9	%			3.3	%			4.6	%			-2.6	%			6.8	%			7.4	%			6.0	%
1		General Corporate Expense (GCE), Net			118				23				27				36				32				110				26				27				27				30
		S,G&A Expense as a % of Sales (including lines 1, 2, 3)			27.7	%			49.5	%			19.3	%			21.8	%			22.8	%			30.7	%			62.8	%			20.0	%			20.9	%			22.5	%
2		Charge for Litigation Settlement			9				3				1				5				—				—				—				—				—				—
3		Impairment Charges for Goodwill and Other Intangible Assets			494				494				—				—				—				698				698				—				—				—
		Operating (Loss) Profit per F/S		$	(295	)		$	(531	)		$	114			$	96			$	26			$	(463	)		$	(769	)		$	105			$	122			$	79
		(Loss) Income Per Common Share Attributable to
		Masco Corporation (Diluted):
		Net (Loss) Income		$	(1.66	)		$	(1.65	)		$	0.10			$	0.02			$	(0.13	)		$	(3.00	)		$	(2.96	)		$	(0.02	)		$	(0.01	)		$	(0.02	)

Please see page 2 for Notes.

 

Page 1

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MASCO CORPORATION

Notes To Condensed Consolidated Statements of Operations

2011 & 2010 - by Quarter - Unaudited

Notes:

 

•

Data exclude discontinued operations.

 

•

Operating results for the fourth quarter of 2011 include non-cash impairment charges for goodwill and other intangible assets of $494 million pre-tax ($.96 per common share, after tax).

 

•

Operating results for the first, second, third and fourth quarters of 2011 include costs and charges related to business rationalizations and other initiatives of $32 million pre-tax ($.06 per common share, after tax), $15 million pre-tax ($.03 per common share, after tax), $13 million pre-tax ($.02 per common share, after tax) and $61 million pre-tax ($.11 per common share, after tax), respectively.

 

•

Operating results for the second, third and fourth quarters of 2011 include mark-to-market gains (losses) on metal commodity hedges of ($1) million pre-tax, ($10) million pre-tax ($.02 per common share, after tax) and $4 million pre-tax ($.01 per common share, after tax), respectively.

 

•

Operating results for the second, third and fourth quarters of 2011 include litigation settlement expenses of $5 million pre-tax ($0.1 per common share, after tax), $1 million pre-tax and $3 million pre-tax ($.01 per common share, after tax), respectively.

 

•

Net income (loss) for the first, second, third and fourth quarters of 2011 include income from financial investments of $17 million pre-tax ($.03 per common share, after tax), $33 million pre-tax ($.06 per common share, after tax), $19 million pre-tax ($.03 per common share, after tax) and $4 million pre-tax ($.01 per common share, after tax), respectively.

 

•

Operating results for the fourth quarter of 2010 include non-cash impairment charges for goodwill and other intangible assets of $698 million pre-tax ($1.68 per common share, after tax).

 

•

Operating results for the first, second, third and fourth quarters of 2010 include costs and charges related to business rationalizations and other initiatives of $14 million pre-tax ($.03 per common share, after tax), $51 million pre-tax ($.09 per common share, after tax), $39 million pre-tax ($.07 per common share, after tax) and $104 million pre-tax ($.19 per common share, after tax), respectively.

 

•

Operating results for the first, second, third and fourth quarters of 2010 include mark-to-market gains (losses) on metal commodity hedges of $1 million pre-tax, ($2) million pre-tax, $4 million pre-tax ($.01 per common share, after tax), and $4 million pre-tax ($.01 per common share, after tax).

 

•

Net income (loss) for the second and fourth quarters of 2010 include non-cash impairment charges for financial investments of $33 million pre-tax ($.06 per common share, after tax) and $1 million pre-tax respectively.

 

•

Net income (loss) for the second, third and fourth quarters of 2010 include income (loss) from financial investments of $1 million pre-tax, ($3) million pre-tax ($.01 per common share, after tax) and $11 million pre-tax ($.02 per common share, after tax), respectively.

 

Page 2

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MASCO CORPORATION

Quarterly Segment Data - 2011

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		$	1,231			$	287			$	307			$	330			$	307
-    Plumbing Products			2,913				674				768				761				710
-    Installation and Other Services			1,077				285				287				270				235
-    Decorative Architectural Products			1,670				348				455				492				375
-    Other Specialty Products			576				144				161				145				126
-    Total		$	7,467			$	1,738			$	1,978			$	1,998			$	1,753
-    North America		$	5,669			$	1,320			$	1,496			$	1,539			$	1,314
-    International, principally Europe			1,798				418				482				459				439
-    Total, as above		$	7,467			$	1,738			$	1,978			$	1,998			$	1,753
Operating (Loss) Profit:
-    Cabinets and Related Products		$	(115	)		$	(38	)		$	(27	)		$	(21	)		$	(29	)
-    Plumbing Products			338				56				92				100				90
-    Installation and Other Services			(71	)			(6	)			(13	)			(19	)			(33	)
-    Decorative Architectural Products			283				35				88				90				70
-    Other Specialty Products			4				—				14				—				(10	)
-    Total		$	439			$	47			$	154			$	150			$	88
-    North America		$	289			$	35			$	103			$	105			$	46
-    International, principally Europe			150				12				51				45				42
-    Total, as above		$	439			$	47			$	154			$	150			$	88
General Corporate Expense (GCE), Net			110				20				26				34				30
Charge for Litigation Settlement			9				3				1				5				—
Operating (Loss) Profit (after GCE and Adjustments)			320				24				127				111				58
Other Income (Expense), Net			(177	)			(62	)			(41	)			(32	)			(42	)
(Loss) Income before Income Taxes		$	143			$	(38	)		$	86			$	79			$	16
Margins:
-    Cabinets and Related Products			-9.3	%			-13.2	%			-8.8	%			-6.4	%			-9.4	%
-    Plumbing Products			11.6	%			8.3	%			12.0	%			13.1	%			12.7	%
-    Installation and Other Services			-6.6	%			-2.1	%			-4.5	%			-7.0	%			-14.0	%
-    Decorative Architectural Products			16.9	%			10.1	%			19.3	%			18.3	%			18.7	%
-    Other Specialty Products			0.7	%			0.0	%			8.7	%			0.0	%			-7.9	%
-    Total			5.9	%			2.7	%			7.8	%			7.5	%			5.0	%
-    North America			5.1	%			2.7	%			6.9	%			6.8	%			3.5	%
-    International, principally Europe			8.3	%			2.9	%			10.6	%			9.8	%			9.6	%
-    Total, as above			5.9	%			2.7	%			7.8	%			7.5	%			5.0	%

Notes:

 

•

Data exclude discontinued operations.

 

•

Operating (loss) profit and margins by segment and geographic area are before general corporate expense.

 

•

See 2011 Costs and Charges for Business Rationalizations and Other Initiatives - page 5.

 

Page 3

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MASCO CORPORATION

Quarterly Segment Data - 2011

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		$	1,231			$	287			$	307			$	330			$	307
-    Plumbing Products			2,913				674				768				761				710
-    Installation and Other Services			1,077				285				287				270				235
-    Decorative Architectural Products			1,670				348				455				492				375
-    Other Specialty Products			576				144				161				145				126
-    Total		$	7,467			$	1,738			$	1,978			$	1,998			$	1,753
-    North America		$	5,669			$	1,320			$	1,496			$	1,539			$	1,314
-    International, principally Europe			1,798				418				482				459				439
-    Total, as above		$	7,467			$	1,738			$	1,978			$	1,998			$	1,753
Operating (Loss) Profit:
-    Cabinets and Related Products		$	(206	)		$	(95	)		$	(34	)		$	(27	)		$	(50	)
-    Plumbing Products			322				52				91				95				84
-    Installation and Other Services			(79	)			(8	)			(15	)			(21	)			(35	)
-    Decorative Architectural Products			196				(51	)			88				90				69
-    Other Specialty Products			(401	)			(403	)			12				—				(10	)
-    Total		$	(168	)		$	(505	)		$	142			$	137			$	58
-    North America		$	(259	)		$	(459	)		$	92			$	92			$	16
-    International, principally Europe			91				(46	)			50				45				42
-    Total, as above		$	(168	)		$	(505	)		$	142			$	137			$	58
General Corporate Expense (GCE), Net			118				23				27				36				32
Charge for Litigation Settlement			9				3				1				5				—
Operating (Loss) Profit (after GCE and Adjustments)			(295	)			(531	)			114				96				26
Other Income (Expense), Net			(177	)			(62	)			(41	)			(32	)			(42	)
(Loss) Income before Income Taxes		$	(472	)		$	(593	)		$	73			$	64			$	(16	)
Margins:
-    Cabinets and Related Products			-16.7	%			-33.1	%			-11.1	%			-8.2	%			-16.3	%
-    Plumbing Products			11.1	%			7.7	%			11.8	%			12.5	%			11.8	%
-    Installation and Other Services			-7.3	%			-2.8	%			-5.2	%			-7.8	%			-14.9	%
-    Decorative Architectural Products			11.7	%			-14.7	%			19.3	%			18.3	%			18.4	%
-    Other Specialty Products			-69.6	%			-279.9	%			7.5	%			0.0	%			-7.9	%
-    Total			-2.2	%			-29.1	%			7.2	%			6.9	%			3.3	%
-    North America			-4.6	%			-34.8	%			6.1	%			6.0	%			1.2	%
-    International, principally Europe			5.1	%			-11.0	%			10.4	%			9.8	%			9.6	%
-    Total, as above			-2.2	%			-29.1	%			7.2	%			6.9	%			3.3	%

Notes:

 

•

Data exclude discontinued operations.

 

•

Operating (loss) profit and margins by segment and geographic area are before general corporate expense.

 

•

See 2011 Costs and Charges for Business Rationalizations and Other Initiatives - page 5.

 

Page 4

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MASCO CORPORATION

Quarterly Segment Data - 2011

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		$	47			$	13			$	7			$	6			$	21
-    Plumbing Products			15				3				1				5				6
-    Installation and Other Services			8				2				2				2				2
-    Decorative Architectural Products			12				11				—				—				1
-    Other Specialty Products			31				29				2				—				—
-    Total		$	113			$	58			$	12			$	13			$	30
-    North America		$	98			$	44			$	11			$	13			$	30
-    International, principally Europe			15				14				1				—				—
-    Total, as above		$	113			$	58			$	12			$	13			$	30
General Corporate Expense (GCE), Net			8				3				1				2				2
-    Total		$	121			$	61			$	13			$	15			$	32
Goodwill and Other Intangible Assets Impairment
-    Cabinets and Related Products		$	44			$	44			$	—			$	—			$	—
-    Plumbing Products			1				1				—				—				—
-    Installation and Other Services			—				—				—				—				—
-    Decorative Architectural Products			75				75				—				—				—
-    Other Specialty Products			374				374				—				—				—
-    Total		$	494			$	494			$	—			$	—			$	—
-    North America		$	450			$	450			$	—			$	—			$	—
-    International, principally Europe			44				44				—				—				—
-    Total, as above		$	494			$	494			$	—			$	—			$	—

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

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MASCO CORPORATION

Quarterly Segment Data - 2010

Excluding Costs and Charges for Business Rationalizations and Other Initiatives

and Impairment Charges for Goodwill and Other Intangible Assets - Unaudited

(dollars in millions)

 

		Year				Qtr. 4				Qtr. 3				Qtr. 2				Qtr. 1
Net Sales:
-    Cabinets and Related Products		$	1,464			$	304			$	357			$	400			$	403
-    Plumbing Products			2,692				661				686				682				663
-    Installation and Other Services			1,041				254				268				279				240
-    Decorative Architectural Products			1,693				336				463				505				389
-    Other Specialty Products			596				161				159				152				124
-    Total		$	7,486			$	1,716			$	1,933			$	2,018			$	1,819
-    North America		$	5,823			$	1,293			$	1,504			$	1,629			$	1,397
-    International, principally Europe			1,663				423				429				389				422
-    Total, as above		$	7,486			$	1,716			$	1,933			$	2,018			$	1,819
Operating (Loss) Profit:
-    Cabinets and Related Products		$	(71	)		$	(46	)		$	(27	)		$	6			$	(4	)
-    Plumbing Products			347				70				100				92				85
-    Installation and Other Services			(93	)			(19	)			(17	)			(18	)			(39	)
-    Decorative Architectural Products			350				50				104				109				87
-    Other Specialty Products			19				3				11				11				(6	)
-    Total		$	552			$	58			$	171			$	200			$	123
-    North America		$	386			$	27			$	119			$	163			$	77
-    International, principally Europe			166				31				52				37				46
-    Total, as above		$	552			$	58			$	171			$	200			$	123
General Corporate Expense (GCE), Net			109				25				27				27				30
Operating Profit (after GCE and Adjustments)			443				33				144				173				93
Other Income (Expense), Net			(278	)			(55	)			(64	)			(103	)			(56	)
(Loss) Income before Income Taxes		$	165			$	(22	)		$	80			$	70			$	37
Margins:
-    Cabinets and Related Products			-4.8	%			-15.1	%			-7.6	%			1.5	%			-1.0	%
-    Plumbing Products			12.9	%			10.6	%			14.6	%			13.5	%			12.8	%
-    Installation and Other Services			-8.9	%			-7.5	%			-6.3	%			-6.5	%			-16.3	%
-    Decorative Architectural Products			20.7	%			14.9	%			22.5	%			21.6	%			22.4	%
-    Other Specialty Products			3.2	%			1.9	%			6.9	%			7.2	%			-4.8	%
-    Total			7.4	%			3.4	%			8.8	%			9.9	%			6.8	%
-    North America			6.6	%			2.1	%			7.9	%			10.0	%			5.5	%
-    International, principally Europe			10.0	%			7.3	%			12.1	%			9.5	%			10.9	%
-    Total, as above			7.4	%			3.4	%			8.8	%			9.9	%			6.8	%

Notes:

 

•

Data exclude discontinued operations.

 

•

Operating (loss) profit and margins by segment and geographic area are before general corporate expense.

 

•

See 2010 Costs and Charges for Business Rationalizations and Other Initiatives - page 8.

 

Page 6

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MASCO CORPORATION

Quarterly Segment Data - 2010

Including Costs and Charges for Business Rationalizations and Other Initiatives

and Impairment Charges for Goodwill and Other Intangible Assets - Unaudited

(dollars in millions)

 

		Year				Qtr. 4				Qtr. 3				Qtr. 2				Qtr. 1
Net Sales:
-    Cabinets and Related Products		$	1,464			$	304			$	357			$	400			$	403
-    Plumbing Products			2,692				661				686				682				663
-    Installation and Other Services			1,041				254				268				279				240
-    Decorative Architectural Products			1,693				336				463				505				389
-    Other Specialty Products			596				161				159				152				124
-    Total		$	7,486			$	1,716			$	1,933			$	2,018			$	1,819
-    North America		$	5,823			$	1,293			$	1,504			$	1,629			$	1,397
-    International, principally Europe			1,663				423				429				389				422
-    Total, as above		$	7,486			$	1,716			$	1,933			$	2,018			$	1,819
Operating (Loss) Profit:
-    Cabinets and Related Products		$	(250	)		$	(137	)		$	(61	)		$	(37	)		$	(15	)
-    Plumbing Products			331				64				97				86				84
-    Installation and Other Services			(798	)			(718	)			(19	)			(20	)			(41	)
-    Decorative Architectural Products			345				45				104				109				87
-    Other Specialty Products			19				3				11				11				(6	)
-    Total		$	(353	)		$	(743	)		$	132			$	149			$	109
-    North America		$	(507	)		$	(771	)		$	82			$	117			$	65
-    International, principally Europe			154				28				50				32				44
-    Total, as above		$	(353	)		$	(743	)		$	132			$	149			$	109
General Corporate Expense (GCE), Net			110				26				27				27				30
Operating (Loss) Profit (after GCE and Adjustments)			(463	)			(769	)			105				122				79
Other Income (Expense), Net			(278	)			(55	)			(64	)			(103	)			(56	)
(Loss) Income before Income Taxes		$	(741	)		$	(824	)		$	41			$	19			$	23
Margins:
-    Cabinets and Related Products			-17.1	%			-45.1	%			-17.1	%			-9.3	%			-3.7	%
-    Plumbing Products			12.3	%			9.7	%			14.1	%			12.6	%			12.7	%
-    Installation and Other Services			-76.7	%			-282.7	%			-7.1	%			-7.2	%			-17.1	%
-    Decorative Architectural Products			20.4	%			13.4	%			22.5	%			21.6	%			22.4	%
-    Other Specialty Products			3.2	%			1.9	%			6.9	%			7.2	%			-4.8	%
-    Total			-4.7	%			-43.3	%			6.8	%			7.4	%			6.0	%
-    North America			-8.7	%			-59.6	%			5.5	%			7.2	%			4.7	%
-    International, principally Europe			9.3	%			6.6	%			11.7	%			8.2	%			10.4	%
-    Total, as above			-4.7	%			-43.3	%			6.8	%			7.4	%			6.0	%

Notes:

 

•

Data exclude discontinued operations.

 

•

Operating (loss) profit and margins by segment and geographic area are before general corporate expense.

 

•

See 2010 Costs and Charges for Business Rationalizations and Other Initiatives - page 8.

 

Page 7

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MASCO CORPORATION

Quarterly Segment Data - 2010

Costs and Charges for Business Rationalizations and Other Initiatives

and Impairment Charges for Goodwill and Other Intangible Assets - Unaudited

(in millions)

 

		Year				Qtr. 4				Qtr. 3				Qtr. 2				Qtr. 1
Business Rationalizations & Other Initiatives
-    Cabinets and Related Products		$	179			$	91			$	34			$	43			$	11
-    Plumbing Products			15				5				3				6				1
-    Installation and Other Services			8				2				2				2				2
-    Decorative Architectural Products			5				5				—				—				—
-    Other Specialty Products			—				—				—				—				—
-    Total		$	207			$	103			$	39			$	51			$	14
-    North America		$	195			$	100			$	37			$	46			$	12
-    International, principally Europe			12				3				2				5				2
-    Total, as above		$	207			$	103			$	39			$	51			$	14
General Corporate Expense (GCE), Net			1				1				—				—				—
-    Total		$	208			$	104			$	39			$	51			$	14
Goodwill and Other Intangible Assets Impairment
-    Cabinets and Related Products		$	—			$	—			$	—			$	—			$	—
-    Plumbing Products			1				1				—				—				—
-    Installation and Other Services			697				697				—				—				—
-    Decorative Architectural Products			—				—				—				—				—
-    Other Specialty Products			—				—				—				—				—
-    Total		$	698			$	698			$	—			$	—			$	—
-    North America		$	698			$	698			$	—			$	—			$	—
-    International, principally Europe			—				—				—				—				—
-    Total, as above		$	698			$	698			$	—			$	—			$	—

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.

 

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MASCO CORPORATION

Other Income (Expense), Net

2011 & 2010 - by Quarter - Unaudited

(in millions)

 

		2011																				2010
		Year				Qtr. 4				Qtr. 3				Qtr. 2				Qtr. 1				Year				Qtr. 4				Qtr. 3				Qtr. 2				Qtr. 1
Interest Expense		$	(254	)		$	(64	)		$	(63	)		$	(64	)		$	(63	)		$	(251	)		$	(63	)		$	(63	)		$	(67	)		$	(58	)
Income from Cash and Cash Investments			8				3				2				1				2				6				2				2				1				1
Other Interest Income			1				—				1				—				—				1				—				—				—				1
Realized Gains (Losses) from Financial Investments, Net			73				4				19				33				17				9				11				(3	)			1				—
Impairment Charges for Financial Investments			—				—				—				—				—				(34	)			(1	)			—				(33	)			—
Other, Net			(5	)			(5	)			—				(2	)			2				(9	)			(4	)			—				(5	)			—
Total Other Income (Expense), Net		$	(177	)		$	(62	)		$	(41	)		$	(32	)		$	(42	)		$	(278	)		$	(55	)		$	(64	)		$	(103	)		$	(56	)

Notes:

 

•

Data exclude discontinued operations.

 

•

Other, Net, in 2011 includes currency gains (losses) of $2 million, $(3) million, $1 million, and $(5) million for the first, second, third, and fourth quarters, respectively.

 

•

Other, Net, in 2010 includes currency (losses) gains of ($1) million, ($5) million, $4 million and $— for the first, second, third and fourth quarters, respectively.

 

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MASCO CORPORATION

Condensed Consolidated Balance Sheets - Unaudited

(in millions)

 

		December 31,				December 31,
		2011				2010
Assets
Current Assets:
Cash and Cash Investments		$	1,656			$	1,715
Receivables			914				888
Inventories			769				732
Prepaid Expenses and Other			70				129
Assets held for sale			20				—
Total Current Assets			3,429				3,464
Property and Equipment, Net			1,567				1,737
Goodwill			1,891				2,383
Other Intangible Assets, Net			196				269
Other Assets			209				287
Assets Held for Sale			5				—
Total Assets		$	7,297			$	8,140
Liabilities
Current Liabilities:
Notes Payable		$	803			$	66
Accounts Payable			770				602
Accrued Liabilities			782				819
Liabilities Held for Sale			8				—
Total Current Liabilities			2,363				1,487
Long-Term Debt			3,222				4,032
Deferred Income Taxes and Other			970				1,039
Total Liabilities			6,555				6,558
Shareholders’ Equity			742				1,582
Total Liabilities and Shareholders’ Equity		$	7,297			$	8,140

 

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MASCO CORPORATION

GAAP Reconciliation of Sales Growth

Excluding the Effect of Acquisitions and Currency Translation - Unaudited

(dollars in millions)

 

		Three Months Ended December 31,
		2011				2010				% r
Net Sales, As Reported		$	1,738			$	1,716				1	%
-    Acquisitions			—				—
-    Currency Translation			4				—
Net Sales, Excluding Acquisitions and Currency Translation		$	1,742			$	1,716				2	%
North America Net Sales, As Reported		$	1,320			$	1,293				2	%
-    Acquisitions			—				—
-    Currency Translation			1				—
North America Net Sales, Excluding Acquisitions and Currency Translation		$	1,321			$	1,293				2	%
International Net Sales, As Reported		$	418			$	423				-1	%
-    Acquisitions			—				—
-    Currency Translation			3				—
International Net Sales, Excluding Acquisitions and Currency Translation		$	421			$	423				0	%
		Twelve Months Ended December 31,
		2011				2010				% r
As Reported		$	7,467			$	7,486				0	%
-    Acquisitions			—				—
-    Currency Translation			(88	)			—
Net Sales, Excluding Acquisitions and Currency Translation		$	7,379			$	7,486				-1	%
North America Net Sales, As Reported		$	5,669			$	5,823				-3	%
-    Acquisitions			—				—
-    Currency Translation			(9	)			—
North America Net Sales, Excluding Acquisitions and Currency Translation		$	5,660			$	5,823				-3	%
International Net Sales, As Reported		$	1,798			$	1,663				8	%
-    Acquisitions			—				—
-    Currency Translation			(79	)			—
International Net Sales, Excluding Acquisitions and Currency Translation		$	1,719			$	1,663				3	%

Notes:

 

•

Data exclude discontinued operations.

 

•

The Company presents information comparing results from one period to another excluding the results of businesses acquired in order to assess the performance of the underlying businesses and to assess to what extent acquisitions are impacting growth.

 

•

The Company also presents information comparing results of International operations from one period to another using constant exchange rates. Current period results for foreign entities are converted into U.S. dollars using the prior period’s exchange rates, rather than exchange rates for the current period. The Company presents this information to assess how the underlying businesses performed in local currencies before taking into account currency fluctuations.

 

•

The currency translation effect on North American net sales includes currency translation related to Canadian business units.

 

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MASCO CORPORATION

GAAP Reconciliation of Operating Profit and Margins - Unaudited

(dollars in millions)

 

		Three Months Ended December 31,
		2011								2010
		$				Margin				$				Margin
Operating Loss, As Reported		$	(531	)			-30.6	%		$	(769	)			-44.8	%
Business Rationalizations and Other Initiatives			61								104
Impairment Charges for Goodwill and Other Intangible Assets			494								698
Charges for Litigation Settlements			3								—
Operating Profit, As Reconciled		$	27				1.6	%		$	33				1.9	%
		Twelve Months Ended December 31,
		2011								2010
		$				Margin				$				Margin
Operating Loss, As Reported		$	(295	)			-4.0	%		$	(463	)			-6.2	%
Business Rationalizations and Other Initiatives			121								208
Impairment Charges for Goodwill and Other Intangible Assets			494								698
Charges for Litigation Settlements			9								—
Operating Profit, As Reconciled		$	329				4.4	%		$	443				5.9	%

Notes:

 

•

Data exclude discontinued operations.

 

•

The Company believes that certain non-GAAP performance measures and ratios used in managing the business may provide additional meaningful comparisons between current results and results in prior periods. Non-GAAP performance measures and ratios should be viewed in addition to, and not as an alternative for, the Company’s reported results under accounting principles generally accepted in the United States.

 

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