Masco (MAS) 10-Q 30 Jul 20 2020 Q2 Quarterly report Financial data

Cover Page

Cover Page	6 Months Ended
	Jun. 30, 2020shares
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2020
Document Transition Report	false
Entity File Number	1-5794
Entity Registrant Name	Masco Corporation
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	38-1794485
Entity Address, Address Line One	17450 College Parkway,
Entity Address, City or Town	Livonia,
Entity Address, State or Province	MI
Entity Address, Postal Zip Code	48152
City Area Code	313
Local Phone Number	274-7400
Title of 12(b) Security	Common Stock, $1.00 par value
Trading Symbol	MAS
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)	261,532,049
Entity Central Index Key	0000062996
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019
Current Assets:
Cash and cash investments	$ 1,089	$ 697
Receivables	1,308	997
Prepaid expenses and other	78	90
Assets held for sale	0	173
Inventories:
Finished goods	460	485
Raw material	219	211
Work in process	71	58
Total inventories	750	754
Total current assets	3,225	2,711
Property and equipment, net	861	878
Operating lease right-of-use assets	163	176
Goodwill	521	509
Other intangible assets, net	259	259
Other assets	273	139
Assets held for sale	0	355
Total assets	5,302	5,027
Current Liabilities:
Accounts payable	845	697
Notes payable	407	2
Accrued liabilities	902	700
Liabilities held for sale	0	149
Total current liabilities	2,154	1,548
Long-term debt	2,372	2,771
Operating Lease, Liability, Noncurrent	150	162
Other liabilities	589	589
Liabilities held for sale	0	13
Total liabilities	5,265	5,083
Commitments and contingencies (Note P)
Masco Corporation's shareholders' equity:
Common shares, par value $1 per share Authorized shares: 1,400,000,000; Issued and outstanding: 2020 – 260,400,000; 2019 – 275,600,000	260	276
Preferred shares authorized: 1,000,000; Issued and outstanding: 2020 and 2019 – None	0	0
Paid-in capital	11	0
Retained deficit	(223)	(332)
Accumulated other comprehensive loss	(184)	(179)
Total Masco Corporation's shareholders' deficit	(136)	(235)
Noncontrolling interest	173	179
Total equity	37	(56)
Total liabilities and equity	$ 5,302	$ 5,027

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Jun. 30, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Common share, par value (in dollars per share)	$ 1	$ 1
Common shares, shares authorized (in shares)	1,400,000,000	1,400,000,000
Common shares, shares issued (in shares)	260,400,000	275,600,000
Common shares, shares outstanding (in shares)	260,400,000	275,600,000
Preferred shares, shares authorized (in shares)	1,000,000	1,000,000
Preferred shares, shares issued (in shares)	0	0
Preferred shares, shares outstanding (in shares)	0	0

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Income Statement [Abstract]
Net sales	$ 1,764	$ 1,839	$ 3,345	$ 3,352
Cost of sales	1,136	1,166	2,170	2,157
Gross profit	628	673	1,175	1,195
Selling, general and administrative expenses	289	326	611	642
Impairment charge for other intangible assets	0	0	0	9
Operating profit	339	347	564	544
Other income (expense), net:
Interest expense	(35)	(41)	(70)	(80)
Other, net	(2)	(3)	(18)	(8)
Total other income (expense), net	(37)	(44)	(88)	(88)
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest, Total	302	303	476	456
Income tax expense	82	80	115	115
Income from continuing operations	220	223	361	341
Income from discontinued operations, net	14	29	411	38
Net income	234	252	772	379
Less: Net income attributable to noncontrolling interest	10	12	18	23
Net income attributable to Masco Corporation	$ 224	$ 240	$ 754	$ 356
Basic:
Income from continuing operations (in dollars per share)	$ 0.80	$ 0.73	$ 1.27	$ 1.09
(Loss) income from discontinued operations, net (in dollars per share)	0.05	0.10	1.53	0.13
Net income (in dollars per share)	0.85	0.82	2.80	1.22
Diluted:
Income from continuing operations (in dollars per share)	0.80	0.72	1.27	1.08
(Loss) income from discontinued operations, net (in dollars per share)	0.05	0.10	1.53	0.13
Net income (in dollars per share)	$ 0.85	$ 0.82	$ 2.80	$ 1.21
Amounts attributable to Masco Corporation:
Income from continuing operations	$ 210	$ 211	$ 343	$ 318
Income from discontinued operations, net	$ 14	$ 29	$ 411	$ 38

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Statement of Comprehensive Income [Abstract]
Net income	$ 234	$ 252	$ 772	$ 379
Less: Net income attributable to noncontrolling interest	10	12	18	23
Net income attributable to Masco Corporation	224	240	754	356
Other comprehensive income (loss), net of tax (Note L):
Cumulative translation adjustment	12	5	(17)	2
Interest rate swaps	1	1	1	1
Pension and other post-retirement benefits	5	4	10	8
Other comprehensive income (loss), net of tax	18	10	(6)	11
Less: Other comprehensive income (loss) attributable to noncontrolling interest	3	4	(1)	1
Other comprehensive income (loss) attributable to Masco Corporation	15	6	(5)	10
Total comprehensive income	252	262	766	390
Less: Total comprehensive income attributable to noncontrolling interest	13	16	17	24
Total comprehensive income attributable to Masco Corporation	$ 239	$ 246	$ 749	$ 366

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
CASH FLOWS FROM (FOR) OPERATING ACTIVITIES:
Cash provided by operations	$ 283	$ 510
Increase in receivables	(342)	(285)
Increase in inventories	(12)	(28)
Increase in accounts payable and accrued liabilities, net	361	16
Net cash from operating activities	290	213
CASH FLOWS FROM (FOR) FINANCING ACTIVITIES:
Purchase of Company common stock	(602)	(289)
Cash dividends paid	(73)	(70)
Dividends paid to noncontrolling interest	(23)	(42)
Proceeds from the exercise of stock options	21	13
Employee withholding taxes paid on stock-based compensation	(22)	(16)
Increase in debt, net	5	20
Credit Agreement and other financing costs	0	(2)
Net cash for financing activities	(694)	(386)
CASH FLOWS FROM (FOR) INVESTING ACTIVITIES:
Capital expenditures	(45)	(71)
Acquisition of business, net of cash acquired	(24)	0
Proceeds from disposition of:
Businesses, net of cash disposed	865	0
Other financial investments	1	1
Property and equipment	0	15
Other, net	2	(8)
Net cash from (for) investing activities	799	(63)
Effect of exchange rate changes on cash and cash investments	(3)	2
CASH AND CASH INVESTMENTS:
Increase (decrease) for the period	392	(234)
At January 1	697	559
At June 30	$ 1,089	$ 325

CONSOLIDATED STATEMENTS OF SHAR

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) - USD ($) $ in Millions	Total	Cumulative Effect, Period of Adoption, Adjustment	Cumulative Effect, Period of Adoption, Adjusted Balance	Common Shares ($1 par value)	Common Shares ($1 par value)Cumulative Effect, Period of Adoption, Adjusted Balance	Paid-In Capital	Paid-In CapitalCumulative Effect, Period of Adoption, Adjusted Balance	Retained (Deficit) Earnings	Retained (Deficit) EarningsCumulative Effect, Period of Adoption, Adjustment	Retained (Deficit) EarningsCumulative Effect, Period of Adoption, Adjusted Balance	Accumulated Other Comprehensive (Loss) Income	Accumulated Other Comprehensive (Loss) IncomeCumulative Effect, Period of Adoption, Adjusted Balance	Noncontrolling Interest	Noncontrolling InterestCumulative Effect, Period of Adoption, Adjusted Balance
Balance at Dec. 31, 2018	$ 69			$ 294		$ 0		$ (278)			$ (127)		$ 180
Increase (Decrease) in Stockholders' Equity
Total comprehensive income	128							116			4		8
Shares issued	5			1		4
Shares retired:
Repurchased	(122)			(3)		(11)		(108)
Surrendered (non-cash)	(10)			(1)				(9)
Cash dividends declared	(35)							(35)
Stock-based compensation	7					7
Balance at Mar. 31, 2019	42			291		0		(314)			(123)		188
Balance at Dec. 31, 2018	69			294		0		(278)			(127)		180
Increase (Decrease) in Stockholders' Equity
Total comprehensive income	390
Balance at Jun. 30, 2019	71			287		0		(261)			(117)		162
Balance at Mar. 31, 2019	42			291		0		(314)			(123)		188
Increase (Decrease) in Stockholders' Equity
Total comprehensive income	262							240			6		16
Shares issued	2			1		1
Shares retired:
Repurchased	(167)			(5)		(10)		(152)
Cash dividends declared	(35)							(35)
Dividends paid to noncontrolling interest	(42)												(42)
Stock-based compensation	9					9
Balance at Jun. 30, 2019	$ 71			287		0		(261)			(117)		162
Shares retired:
Common share, par value (in dollars per share)	$ 1
Balance at Dec. 31, 2019	$ (56)		$ (57)	276	$ 276	0	$ 0	(332)		$ (333)	(179)	$ (179)	179	$ 179
Balance (Accounting Standards Update 2016-13) at Dec. 31, 2019		$ (1)							$ (1)
Increase (Decrease) in Stockholders' Equity
Total comprehensive income	514							530			(20)		4
Shares issued	11			1		10
Shares retired:
Repurchased	(602)			(14)		(28)		(560)
Surrendered (non-cash)	(13)							(13)
Cash dividends declared	(36)							(36)
Stock-based compensation	18					18
Balance at Mar. 31, 2020	(165)			263		0		(412)			(199)		183
Balance at Dec. 31, 2019	(56)		$ (57)	276	$ 276	0	$ 0	(332)		$ (333)	(179)	$ (179)	179	$ 179
Balance (Accounting Standards Update 2016-13) at Dec. 31, 2019		$ (1)							$ (1)
Increase (Decrease) in Stockholders' Equity
Total comprehensive income	766
Shares retired:
Repurchased	(602)
Balance at Jun. 30, 2020	37			260		11		(223)			(184)		173
Balance at Mar. 31, 2020	(165)			263		0		(412)			(199)		183
Increase (Decrease) in Stockholders' Equity
Total comprehensive income	252							224			15		13
Shares retired:
Repurchased	0			(3)		3
Cash dividends declared	(35)							(35)
Dividends paid to noncontrolling interest	(23)												(23)
Stock-based compensation	8					8
Balance at Jun. 30, 2020	$ 37			$ 260		$ 11		$ (223)			$ (184)		$ 173
Shares retired:
Common share, par value (in dollars per share)	$ 1

Accounting Policies

Accounting Policies	6 Months Ended
	Jun. 30, 2020
Accounting Policies [Abstract]
Accounting Policies	ACCOUNTING POLICIES In our opinion, the accompanying unaudited condensed consolidated financial statements contain all adjustments, of a normal recurring nature, necessary to fairly state our financial position at June 30, 2020, our results of operations and comprehensive income (loss) for the three-month and six-month periods ended June 30, 2020 and 2019, cash flows for the six-month period ended June 30, 2020 and 2019 and changes in shareholders' equity for the three-month and six-month periods ended June 30, 2020 and 2019. The condensed consolidated balance sheet at December 31, 2019 was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted ("GAAP") in the United States of America. Reclassifications. Certain prior year amounts have been reclassified to conform to the 2020 presentation in the condensed consolidated financial statements. In our condensed consolidated statements of cash flows, the cash flows from discontinued operations are not separately classified. Stock-Based Compensation. We issue stock-based incentives in various forms to our employees and non-employee Directors. Outstanding stock-based incentives were in the form of long-term stock awards, stock options, restricted stock units ("RSUs"), performance restricted stock units ("PRSUs") and phantom stock awards. In December 2019, our Organization and Compensation Committee of the Board of Directors (the "Compensation Committee") amended the terms of equity awards under our 2014 Long Term Stock Incentive Plan to provide that newly issued stock options, RSUs and phantom stock awards vest over a three As such, compensation expense for equity awards granted in 2020 and thereafter is recognized ratably over the shorter of the vesting period, typically three years, or the length of time until the grantee becomes retirement eligible. In February 2020, our Compensation Committee approved the grant of RSUs under the Company’s 2014 Long Term Stock Incentive Plan. We measure compensation expense for RSUs at the market price of our common stock at the grant date. Allowance for Credit Losses. We do business with a number of customers, including certain home center retailers. We monitor our exposure for credit losses on our customer receivable balances and other financial investments measured at amortized cost and the credit worthiness of our customers on an on-going basis, including requiring the completion of credit applications and performing periodic reviews of our open accounts receivable. We record allowances for doubtful accounts for estimated losses resulting from the inability of our customers to fulfill their required payment obligation to us. Allowances are estimated at each of our businesses based upon specific customer balances, where a risk of loss has been identified, and also include a provision for losses based upon historical collection experience and write-off activity as well as reasonable and supportable forecast information that considers macro-economic factors and industry-specific trends associated with our businesses, among others. Our receivables balances are generally due in less than one year. Recently Adopted Accounting Pronouncements. In June 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2016-13, "Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments," which modifies the methodology for recognizing loss impairments on certain types of financial instruments, including receivables. The new methodology requires an entity to estimate the credit losses expected over the life of an exposure. Additionally, ASU 2016-13 amends the current available-for-sale security other-than-temporary impairment model for debt securities. We adopted ASU 2016-13 and recorded a cumulative-effect adjustment to opening retained earnings on January 1, 2020. The adoption of the standard did not have a material effect on our financial position or results of operations. In August 2018, the FASB issued ASU 2018-15, "Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract," which allows for the capitalization of certain implementation costs incurred in a hosting arrangement that is a service contract. We adopted ASU 2018-15 prospectively beginning on January 1, 2020. The adoption of the standard did not have an impact on our financial position or results of operations. A. ACCOUNTING POLICIES (Concluded) In December 2019, the FASB issued ASU 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes," which simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. We early adopted ASU 2019-12 on January 1, 2020. The adoption of the standard did not have an impact on our financial position or results of operations. Recently Issued Accounting Pronouncements. In January 2020, the FASB issued ASU 2020-01, "Investments—Equity Securities (Topic 321)", "Investments—Equity Method and Joint Ventures (Topic 323)", and "Derivatives and Hedging (Topic 815): Clarifying the Interactions between Topic 321, Topic 323, and Topic 815", which clarifies that an entity should consider observable transactions when either applying or discontinuing the equity method of accounting for the purposes of applying the measurement alternative in accordance with Topic 321. ASU 2020-01 clarifies that for certain forward contracts or purchased options to acquire investments, an entity should not consider whether, upon settlement of the forward contract or exercise of the purchased option, the underlying securities would be accounted for under the equity method or the fair value option. ASU 2020-01 is effective for us for annual periods beginning January 1, 2021. Early adoption is permitted. We are currently reviewing the provisions of this new pronouncement and the impact, if any, the adoption of this guidance has on our financial position and results of operations.

Acquisitions

Acquisitions	6 Months Ended
	Jun. 30, 2020
Business Combinations [Abstract]
Acquisitions	ACQUISITIONS        In the first quarter of 2020, we acquired all of the share capital of SmarTap A.Y Ltd. ("SmarTap") for approximately $24 million in cash. SmarTap is a developer of a smart bathing system that monitors and controls the temperature and flow of water. This acquisition provides an adaptable solution for a wide range of products as it is compatible with showerheads, hand showers, spouts and shower jets. This business is included in the Plumbing Products segment. In connection with this acquisition, we recognized $12 million of goodwill, which is not tax deductible, and is related primarily to the expected synergies from combining the operations into our business. We also recognized $10 million of definite-lived intangible assets, primarily related to technology, which is being amortized on a straight-line basis over a weighted average amortization period of 5 years.

Discontinued Operations

Discontinued Operations	6 Months Ended
	Jun. 30, 2020
Discontinued Operations and Disposal Groups [Abstract]
Discontinued Operations	DISCONTINUED OPERATIONS On September 6, 2019 , we completed the divestiture of our UK Window Group business ("UKWG"), a manufacturer and distributor of windows and doors. Additionally, on November 6, 2019, we completed the divestiture of our Milgard Windows and Doors business ("Milgard"), a manufacturer and distributor of windows and doors. In the third quarter of 2019, we determined that the previously reported Windows and Other Specialty Products segment met the criteria to be classified as a discontinued operation as a result of the combined sale of UKWG and Milgard. These businesses represented all of our windows businesses and all remaining businesses in the Windows and Other Specialty Products segment. During the second quarter of 2020, a $17 million pre-tax post-closing adjustment related to the finalization of working capital items was recorded to income from discontinued operations, net in the condensed consolidated statement of operations, as a gain on the divestiture of Milgard. Of the $17 million, we received $12 million in cash as of June 30, 2020, which is presented in investing activities on the condensed consolidated statement of cash flow as proceeds from disposition of businesses, net of cash disposed. The remaining $5 million is accounted for as a short-term receivable; payable in five monthly installments throughout the remainder of 2020. All post-closing adjustments related to our divestiture of Milgard were finalized with the buyer in the second quarter of 2020. C. DISCONTINUED OPERATIONS (Continued) On November 14, 2019, we entered into a definitive agreement to sell Masco Cabinetry LLC ("Cabinetry"), a manufacturer of cabinetry products. We completed the divestiture of Cabinetry on February 18, 2020 for proceeds of approximately $989 million, including $853 million, net of cash disposed. The remaining $136 million was accounted for as preferred stock issued by a holding company of the buyer; refer to Note G for additional information. The working capital adjustment was finalized with the buyer in the second quarter of 2020, resulting in no significant changes to net proceeds. In connection with the sale, we recognized a gain on the divestiture of $585 million for the six months ended June 30, 2020, which is included in income from discontinued operations, net in the condensed consolidated statement of operations. In the fourth quarter of 2019, we determined that the previously reported Cabinetry Products segment met the criteria to be classified as a discontinued operation, as Cabinetry represented all of our cabinet businesses and all remaining businesses in the Cabinetry Products segment. We determined that the assets and liabilities for Cabinetry met the held for sale criteria in accordance with ASC 205-20, Discontinued Operations in 2019. Accordingly, the Cabinetry business' assets and liabilities were classified in the condensed consolidated balance sheet at December 31, 2019 as assets held for sale or liabilities held for sale. We ceased recording depreciation and amortization for the held for sale assets upon meeting the held for sale criteria. As the combined sale of UKWG and Milgard and the sale of Cabinetry represented a strategic shift that will have a major effect on our operations and financial results, these businesses were presented in discontinued operations separate from continuing operations for the three and six months ended June 30, 2020 and 2019, as applicable. In addition, depreciation and amortization, capital expenditures, and significant non-cash operating and investing activities related to discontinued operations were separately disclosed. The results of the windows businesses recorded in income from discontinued operations before income tax was income of $9 million and $1 million for the three and six months ended June 30, 2019, respectively. The results of the cabinetry business recorded in income (loss) from discontinued operations before income tax was income of $1 million and $35 million for the three months ended June 30, 2020 and 2019, respectively, and a loss of $8 million and income of $58 million for the six months ended June 30, 2020 and 2019, respectively. The major classes of line items constituting income from discontinued operations, net, in millions: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Net sales $ — $ 436 $ 101 $ 831 Cost of sales — 327 78 645 Gross profit — 109 23 186 Selling, general and administrative expenses (A) (1) 64 31 120 Impairment charge for goodwill (B) — — — 7 Other income (expense), net — (1) — — Income (loss) from discontinued operations 1 44 (8) 59 Gain on disposal of discontinued operations 17 — 602 — Income before income tax 18 44 594 59 Income tax expense (4) (15) (183) (21) Income from discontinued operations, net $ 14 $ 29 $ 411 $ 38 (A) In the second quarter of 2020, certain remaining liabilities were adjusted to reflect current activity related to sold businesses. (B) In the first quarter of 2019, we recognized a $7 million non-cash goodwill impairment charge related to a decline in the long-term outlook of our windows and doors business in the United Kingdom. C. DISCONTINUED OPERATIONS (Concluded) The carrying amount of major classes of assets and liabilities included as part of the Cabinetry discontinued operations, were as follows, in millions: December 31, 2019 Receivables $ 76 Prepaid expenses and other 7 Inventories 90 Property and equipment, net 157 Operating lease right-of-use assets 4 Goodwill 181 Other intangible assets, net 1 Other assets 12 Total assets classified as held for sale $ 528 Accounts payable $ 103 Accrued liabilities 46 Noncurrent operating lease liabilities 3 Other liabilities 10 Total liabilities classified as held for sale $ 162 Other selected financial information for Cabinetry, Milgard and UKWG during the period owned by us, were as follows, in millions: Six Months Ended June 30, 2020 2019 Depreciation and amortization $ — $ 18 Capital expenditures 1 19 ROU assets obtained in exchange for new lease obligations — 3 In conjunction with the divestiture of Milgard and Cabinetry, we entered into Transition Services Agreements to provide administrative services to the buyers. The fees for services rendered under each Transition Services Agreement are not expected to be material to our results of operations. As a part of the Cabinetry Transition Services Agreement, we have guaranteed Cabinetry's obligations to a third-party while Cabinetry continues to participate in our voluntary supply chain finance program to the extent Cabinetry under its new ownership becomes delinquent on its payments. The amount Cabinetry and its new owners owe under the program was $20 million at June 30, 2020. In conjunction with the Transition Services Agreement, the new owners provided a letter of credit to the third-party in the amount of $10 million. As such, the maximum exposure for us associated with this guarantee is the difference between the amount Cabinetry owes at any given point and the letter of credit. Cabinetry exited our program in June 2020 and our guarantee will end when all remaining payments have been made, which is expected to be in the fourth quarter of 2020. No significant loss has been experienced or is probable under this guarantee.

Revenue

Revenue	6 Months Ended
	Jun. 30, 2020
Revenues [Abstract]
Revenue	REVENUE Our revenues are derived primarily from sales to customers in North America and Internationally, principally Europe. Net sales from these geographic markets, by segment, were as follows, in millions: Three Months Ended June 30, 2020 Plumbing Products Decorative Architectural Products Total Primary geographic markets: North America $ 584 $ 896 $ 1,480 International, principally Europe 284 — 284 Total $ 868 $ 896 $ 1,764 Six Months Ended June 30, 2020 Plumbing Products Decorative Architectural Products Total Primary geographic markets: North America $ 1,216 $ 1,522 $ 2,738 International, principally Europe 607 — 607 Total $ 1,823 $ 1,522 $ 3,345 Three Months Ended June 30, 2019 Plumbing Products Decorative Architectural Products Total Primary geographic markets: North America $ 661 $ 827 $ 1,488 International, principally Europe 351 — 351 Total $ 1,012 $ 827 $ 1,839 Six Months Ended June 30, 2019 Plumbing Products Decorative Architectural Products Total Primary geographic markets: North America $ 1,259 $ 1,400 $ 2,659 International, principally Europe 693 — 693 Total $ 1,952 $ 1,400 $ 3,352 Our contract asset balance was $2 million at both June 30, 2020 and December 31, 2019. Our contract liability balance was $17 million and $40 million at June 30, 2020 and December 31, 2019, respectively. We reversed $3 million and $1 million of revenue for the three-month periods ended June 30, 2020 and 2019, respectively, related to performance obligations settled in previous quarters of the same year. We recognized $2 million and $5 million of revenue for the three-month and six-month periods ended June 30, 2020, respectively, and $1 million of revenue for both the three-month and six-month periods ended June 30, 2019 related to performance obligations settled in previous years. Changes in the allowance for credit losses deducted from accounts receivable were as follows, in millions: Six Months Ended Balance at January 1 (after adopting ASU 2016-13) $ 5 Provision for expected credit losses during the period 2 Write-offs charged against the allowance (1) Recoveries of amounts previously written off 1 Balance at end of period $ 7

Depreciation and Amortization

Depreciation and Amortization	6 Months Ended
	Jun. 30, 2020
Depreciation, Depletion and Amortization [Abstract]
Depreciation and Amortization	DEPRECIATION AND AMORTIZATION Depreciation and amortization expense, including discontinued operations, was $66 million and $82 million for the six-month periods ended June 30, 2020 and 2019, respectively.

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets	6 Months Ended
	Jun. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Other Intangible Assets	GOODWILL AND OTHER INTANGIBLE ASSETS The changes in the carrying amount of goodwill for the six-month period ended June 30, 2020, by segment, were as follows, in millions: Gross Goodwill At June 30, 2020 Accumulated Net Goodwill At June 30, 2020 Plumbing Products $ 578 $ (340) $ 238 Decorative Architectural Products 358 (75) 283 Total $ 936 $ (415) $ 521 Gross Goodwill At December 31, 2019 Accumulated Net Goodwill At December 31, 2019 Acquisitions Net Goodwill At June 30, 2020 Plumbing Products $ 566 $ (340) $ 226 $ 12 $ 238 Decorative Architectural Products 358 (75) 283 — 283 Total $ 924 $ (415) $ 509 $ 12 $ 521 The carrying value of our other indefinite-lived intangible assets was $76 million at both June 30, 2020 and December 31, 2019, and principally included registered trademarks. During the first quarter of 2019, we recognized a $9 million impairment charge related to a registered trademark in our Decorative Architectural Products segment due to a change in the long-term net sales projections of lighting products. The carrying value of our definite-lived intangible assets was $183 million (net of accumulated amortization of $61 million) and $183 million (net of accumulated amortization of $48 million) at June 30, 2020 and December 31, 2019, respectively, and principally included customer relationships.

Fair Value of Financial Investm

Fair Value of Financial Investments	6 Months Ended
	Jun. 30, 2020
Fair Value Disclosures [Abstract]
Fair Value Of Financial Investments	FAIR VALUE OF FINANCIAL INVESTMENTS In conjunction with our divestiture of Cabinetry, we received preferred stock of ACProducts Holding, Inc., the holding company of the buyer, with a liquidation preference of $150 million. The preferred stock has a coupon of 8 percent until the first anniversary of issuance, 9 percent after the first anniversary and until the second anniversary of issuance, and 10 percent after the second anniversary of issuance and until the seventh anniversary of issuance. After which, the rate will increase by 50 basis points up to a maximum of 15 percent for each annual period occurring during and after the seventh anniversary until all shares have been redeemed in full. We do not have the ability to exercise significant influence, and the fair value of this security is not readily available. We have elected to measure this investment at cost (less impairment, if any) adjusted for observable price changes in orderly transactions for the identical or similar investments of the same issuer for subsequent measurements of fair value. As the preferred stock was received in conjunction with the sale of Cabinetry, we determined the cost to be the fair value of the preferred stock at the time of sale. The fair value of the preferred stock was measured on a non-recurring basis, and estimated using discounted cash flow and option pricing models (Level 3 inputs). The significant unobservable inputs used to value the preferred stock included: time to exit (deemed maturity) since the preferred stock is not mandatorily redeemable, discount rate used to determine the present value of expected cash flows, which included the spread on company specific debt and the risk-free rate of return, the liquidation preference and the coupon rate. On the date of acquisition, the fair value of this investment was determined to be $136 million and was included in other assets in our condensed consolidated balance sheet. G. FAIR VALUE OF FINANCIAL INVESTMENTS (Concluded) Dividends earned on this investment are included within other income (expense), net in our condensed consolidated statement of operations with a corresponding increase to our basis in the investment. We had dividend income of $4 million for both the three-month and six-month periods ended June 30, 2020. As such, the preferred stock was reported at the carrying value of $140 million in other assets in our condensed consolidated balance sheet at June 30, 2020. Fair Value of Debt. The fair value of our short-term and long-term fixed-rate debt instruments is based principally upon modeled market prices for the same or similar issues, which are Level 1 inputs. The aggregate estimated market value of our short-term and long-term debt at June 30, 2020 was approximately $3.1 billion, compared with the aggregate carrying value of $2.8 billion. The aggregate estimated market value of our short-term and long-term debt at December 31, 2019 was approximately $3.0 billion, compared with the aggregate carrying value of $2.8 billion.

Warranty Liability

Warranty Liability	6 Months Ended
	Jun. 30, 2020
Product Warranties Disclosures [Abstract]
Warranty Liability	WARRANTY LIABILITY Changes in our warranty liability were as follows, in millions: Six Months Ended Twelve Months Ended December 31, 2019 Balance at January 1 $ 84 $ 81 Accruals for warranties issued during the period 15 34 Accruals related to pre-existing warranties — 1 Settlements made (in cash or kind) during the period (16) (31) Other, net (including currency translation) (1) (1) Balance at end of period $ 82 $ 84

Debt

Debt	6 Months Ended
	Jun. 30, 2020
Debt Disclosure [Abstract]
Debt	DEBT On March 13, 2019, we entered into a credit agreement (the “Credit Agreement”) with an aggregate commitment of $1.0 billion and a maturity date of March 13, 2024. Under the Credit Agreement, at our request and subject to certain conditions, we can increase the aggregate commitment up to an additional $500 million with the current lenders or new lenders. Upon entry into the Credit Agreement, our credit agreement dated March 28, 2013, as amended, with an aggregate commitment of $750 million, was terminated. The Credit Agreement provides for an unsecured revolving credit facility available to us and one of our foreign subsidiaries, in U.S. dollars, European euros, British Pounds Sterling, Canadian dollars and certain other currencies for revolving credit loans, swingline loans and letters of credit. Borrowings under the revolving credit loans denominated in any agreed upon currency other than U.S. dollars are limited to $500 million, equivalent. We can also borrow swingline loans up to $100 million and obtain letters of credit of up to $25 million; outstanding letters of credit under the Credit Agreement reduce our borrowing capacity. At June 30, 2020, we had no outstanding standby letters of credit under the Credit Agreement. Revolving credit loans bear interest under the Credit Agreement, at our option, at (A) a rate per annum equal to the greater of (i) the JPMorgan Chase Bank, N.A. prime rate, (ii) the Federal Reserve Bank of New York effective rate plus 0.50% and (iii) if available, adjusted LIBO Rate plus 1.0% (the "Alternative Base Rate"); plus an applicable margin based upon our then-applicable corporate credit ratings; or (B) if available, adjusted LIBO Rate plus an applicable margin based upon our then-applicable corporate credit ratings. The foreign currency revolving credit loans bear interest at a rate equal to adjusted LIBO Rate, if available, plus an applicable margin based upon our then-applicable corporate credit ratings. The Credit Agreement contains financial covenants requiring us to maintain (A) a net leverage ratio, as adjusted for certain items, not exceeding 4.0 to 1.0, and (B) a minimum interest coverage ratio, as adjusted for certain items, not less than 2.5 to 1.0.

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jun. 30, 2020
Share-based Payment Arrangement [Abstract]
Stock-Based Compensation	STOCK-BASED COMPENSATION Our 2014 Long Term Stock Incentive Plan provides for the issuance of stock-based incentives in various forms to our employees and non-employee Directors. At June 30, 2020, outstanding stock-based incentives were in the form of long-term stock awards, stock options, restricted stock units, performance restricted stock units, and phantom stock awards. Pre-tax compensation expense included in income from continuing operations for these stock-based incentives was as follows, in millions: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Long-term stock awards $ 3 $ 5 $ 7 $ 10 Stock options 2 1 5 2 Restricted stock units 3 — 11 — Performance restricted stock units — 1 1 2 Phantom stock awards and stock appreciation rights 2 1 2 2 Total $ 10 $ 8 $ 26 $ 16 Long-Term Stock Awards. Prior to the amendment of our 2014 Long Term Stock Incentive Plan in December 2019, we granted long-term stock awards to our key employees and non-employee Directors. These grants did not cause net share dilution due to our practice of repurchasing and retiring an equal number of shares in the open market. We did not grant shares of long-term stock awards in the six-month period ended June 30, 2020. Our long-term stock award activity was as follows, shares in millions: Six Months Ended June 30, 2020 2019 Unvested stock award shares at January 1 2 2 Weighted average grant date fair value $ 34 $ 30 Stock award shares granted — 1 Weighted average grant date fair value $ — $ 36 Stock award shares vested 1 1 Weighted average grant date fair value $ 32 $ 25 Stock award shares forfeited — — Weighted average grant date fair value $ 35 $ 31 Unvested stock award shares at June 30 1 2 Weighted average grant date fair value $ 36 $ 34 J. STOCK-BASED COMPENSATION (Continued) At June 30, 2020 and 2019, there was $28 million and $55 million, respectively, of total unrecognized compensation expense related to unvested stock awards; such awards had a weighted average remaining vesting period of three years at both June 30, 2020 and 2019. The total market value (at the vesting date) of stock award shares which vested was $30 million during both the six-month periods ended June 30, 2020 and 2019. Stock Options. Stock options are granted to certain key employees. The exercise price equals the market price of our common stock at the grant date. Beginning in 2020, stock options become exercisable (vest ratably) over three years beginning on the first anniversary from the grant date. Stock options granted prior to 2020 become exercisable (vest ratably) over five years. We granted 420,840 stock options in the six-month period ended June 30, 2020 with a grant date weighted average exercise price of approximately $48 per share. In the six-month period ended June 30, 2020, 16,240 stock options were forfeited (including options that expired unexercised). Our stock option activity was as follows, shares in millions: Six Months Ended June 30, 2020 2019 Option shares outstanding, January 1 3 4 Weighted average exercise price $ 27 $ 21 Option shares granted 1 1 Weighted average exercise price $ 48 $ 36 Option shares exercised 1 1 Aggregate intrinsic value on date of exercise (A) $ 23 million $ 17 million Weighted average exercise price $ 17 $ 11 Option shares forfeited — — Weighted average exercise price $ 42 $ 36 Option shares outstanding, June 30 3 4 Weighted average exercise price $ 33 $ 25 Weighted average remaining option term (in years) 7 6 Option shares vested and expected to vest, June 30 3 4 Weighted average exercise price $ 33 $ 25 Aggregate intrinsic value (A) $ 46 million $ 52 million Weighted average remaining option term (in years) 7 6 Option shares exercisable (vested), June 30 1 2 Weighted average exercise price $ 27 $ 20 Aggregate intrinsic value (A) $ 34 million $ 45 million Weighted average remaining option term (in years) 5 4 (A) Aggregate intrinsic value is calculated using our stock price at each respective date, less the exercise price (grant date price), multiplied by the number of shares. J. STOCK-BASED COMPENSATION (Concluded) At June 30, 2020 and 2019, there was $8 million and $11 million, respectively, of unrecognized compensation expense (using the Black-Scholes option pricing model at the grant date) related to unvested stock options; such options had a weighted average remaining vesting period of three years at both June 30, 2020 and 2019. The weighted average grant date fair value of option shares granted and the assumptions used to estimate those values using a Black-Scholes option pricing model were as follows: Six Months Ended June 30, 2020 2019 Weighted average grant date fair value $ 10.67 $ 8.81 Risk-free interest rate 1.53 % 2.57 % Dividend yield 1.14 % 1.35 % Volatility factor 24.00 % 25.00 % Expected option life 6 years 6 years Restricted Stock Units. Restricted stock units are granted to our key employees and non-employee Directors. These grants did not cause net share dilution due to our practice of repurchasing and retiring an equal number of shares in the open market. The grant date fair value is based on the fair value of our common stock. These units will vest and be settled in shares ratably over three years. We granted 432,170 restricted stock units in the six-month period ended June 30, 2020 with a weighted average grant date fair value of $47 per share. In the six-month period ended June 30, 2020, 5,870 restricted stock units were forfeited. At June 30, 2020, there was $9 million of unrecognized compensation expense related to unvested restricted stock units; such units had a weighted average remaining vesting period of two years. Performance Restricted Stock Units. Under our Long Term Incentive Program, we grant performance restricted stock units to certain senior executives. These performance restricted stock units will vest and share awards will be issued at no cost to the employees, subject to our achievement of specified performance metrics established by our Compensation Committee over a three-year performance period and the recipient's continued employment through the share award date. During the six-month period ended June 30, 2020, we granted 133,390 performance restricted stock units with a grant date fair value of approximately $34 per share and 151,724 shares were issued. During the six-month period ended June 30, 2019, we granted 126,680 performance restricted stock units with a grant date fair value of approximately $39 per share. No performance restricted stock units were forfeited in either period.

Employee Retirement Plans

Employee Retirement Plans	6 Months Ended
	Jun. 30, 2020
Retirement Benefits [Abstract]
Employee Retirement Plans	EMPLOYEE RETIREMENT PLANS Net periodic pension cost for our defined-benefit pension plans, with the exception of service cost, is recorded in other income (expense), net, in our condensed consolidated statement of operations. Net periodic pension cost for our defined-benefit pension plans was as follows, in millions: Three Months Ended June 30, 2020 2019 Qualified Non-Qualified Qualified Non-Qualified Interest cost $ 7 $ 1 $ 9 $ 2 Expected return on plan assets (5) — (11) — Amortization of net loss 5 1 6 — Net periodic pension cost $ 7 $ 2 $ 4 $ 2 Six Months Ended June 30, 2020 2019 Qualified Non-Qualified Qualified Non-Qualified Service cost $ 1 $ — $ 1 $ — Interest cost 13 2 19 3 Expected return on plan assets (11) — (22) — Amortization of net loss 11 2 10 1 Net periodic pension cost $ 14 $ 4 $ 8 $ 4 As of January 1, 2010, substantially all of our domestic and foreign qualified and domestic non-qualified defined-benefit pension plans were frozen to future benefit accruals. In December 2019, our Board of Directors approved the termination of our qualified domestic defined-benefit pension plans in 2021.

Reclassifications From Accumula

Reclassifications From Accumulated Other Comprehensive Loss	6 Months Ended
	Jun. 30, 2020
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]
Reclassifications From Accumulated Other Comprehensive Loss	RECLASSIFICATIONS FROM ACCUMULATED OTHER COMPREHENSIVE LOSS The reclassifications from accumulated other comprehensive loss to the condensed consolidated statements of operations were as follows, in millions: Amounts Reclassified Amounts Reclassified Accumulated Other Comprehensive Loss Three Months Ended June 30, Six Months Ended June 30, Statement of Operations Line Item 2020 2019 2020 2019 Amortization of defined-benefit pension and other post-retirement benefits: Actuarial losses, net $ 6 $ 6 $ 13 $ 11 Other income (expense), net Tax (benefit) (1) (2) (3) (3) Net of tax $ 5 $ 4 $ 10 $ 8 Interest rate swaps $ 1 $ 1 $ 1 $ 1 Interest expense Tax (benefit) — — — — Net of tax $ 1 $ 1 $ 1 $ 1

Segment Information

Segment Information	6 Months Ended
	Jun. 30, 2020
Segment Reporting [Abstract]
Segment Information	SEGMENT INFORMATION Information by segment and geographic area was as follows, in millions: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 2020 2019 2020 2019 Net Sales (A) Operating Profit (Loss) Net Sales (A) Operating Profit (Loss) Operations by segment: Plumbing Products $ 868 $ 1,012 $ 155 $ 198 $ 1,823 $ 1,952 $ 312 $ 351 Decorative Architectural Products 896 827 201 173 1,522 1,400 296 246 Total $ 1,764 $ 1,839 $ 356 $ 371 $ 3,345 $ 3,352 $ 608 $ 597 Operations by geographic area: North America $ 1,480 $ 1,488 $ 321 $ 316 $ 2,738 $ 2,659 $ 531 $ 497 International, principally Europe 284 351 35 55 607 693 77 100 Total $ 1,764 $ 1,839 356 371 $ 3,345 $ 3,352 608 597 General corporate expense, net (17) (24) (44) (53) Operating profit 339 347 564 544 Other income (expense), net (37) (44) (88) (88) Income from continuing operations before income taxes $ 302 $ 303 $ 476 $ 456 (A) Inter-segment sales were not material.

Other Income (Expense), Net

Other Income (Expense), Net	6 Months Ended
	Jun. 30, 2020
Other Income and Expenses [Abstract]
Other Income (Expense), Net	OTHER INCOME (EXPENSE), NET 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, 2020 2019 2020 2019 Income from cash and cash investments $ 1 $ — $ 2 $ 1 Foreign currency transaction gains (losses) 2 2 (7) 2 Net periodic pension and post-retirement benefit cost (8) (6) (16) (11) Dividend income 4 — 4 — Other items, net (1) 1 (1) — Total other, net $ (2) $ (3) $ (18) $ (8)

Income Per Common Share

Income Per Common Share	6 Months Ended
	Jun. 30, 2020
Earnings Per Share [Abstract]
Income Per Common Share	INCOME PER COMMON SHARE Reconciliations of the numerators and denominators used in the computations of basic and diluted income per common share were as follows, in millions: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Numerator (basic and diluted): Income from continuing operations $ 210 $ 211 $ 343 $ 318 Less: Allocation to unvested restricted stock awards 2 2 3 2 Income from continuing operations attributable to common shareholders 208 209 340 316 Income from discontinued operations, net 14 29 411 38 Less: Allocation to unvested restricted stock awards — — 3 — Income from discontinued operations, net attributable to common shareholders 14 29 408 38 Net income attributable to common shareholders $ 222 $ 238 $ 748 $ 354 Denominator: Basic common shares (based upon weighted average) 262 289 267 291 Add: Stock option dilution 1 1 1 1 Diluted common shares 263 290 268 292 For the three-month and six-month periods ended June 30, 2020 and 2019, we allocated dividends and undistributed earnings to the unvested restricted stock awards. Additionally, 762,000 and 672,000 common shares for the three-month and six-month periods ended June 30, 2020, respectively, and 1.3 million and 1.2 million common shares for the three-month and six-month periods ended June 30, 2019, respectively, related to stock options, and 20,000 common shares related to performance restricted stock units for the three-month and six-month periods ended June 30, 2019 were excluded from the computation of diluted income per common share due to their antidilutive effect. In September 2019, our Board of Directors authorized the repurchase, for retirement, of up to $2.0 billion of shares of our common stock in open-market transactions or otherwise. In the first six-months of 2020, we repurchased and retired 16.5 million shares of our common stock for approximately $602 million. This included 0.4 million shares to offset the dilutive impact of restricted stock units granted in the first half of the year as well as 1.2 million shares received at no additional cost from the settlement of the accelerated stock repurchase transaction initiated in November 2019. At June 30, 2020, we had $900 million remaining under the 2019 repurchase authorization. On the basis of amounts paid (declared), cash dividends per common share were $0.135 ($0.135) and $0.270 ($0.270) for the three-month and six-month periods ended June 30, 2020, respectively, and $0.120 ($0.120) and $0.240 ($0.240) for the three-month and six-month periods ended June 30, 2019, respectively.

Other Commitments and Contingen

Other Commitments and Contingencies	6 Months Ended
	Jun. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
Other Commitments and Contingencies	OTHER COMMITMENTS AND CONTINGENCIES We are involved in claims and litigation, including class actions, mass torts and regulatory proceedings, which arise in the ordinary course of our business. The types of matters may include, among others: competition, product liability, employment, warranty, advertising, contract, personal injury, environmental, intellectual property, and insurance coverage. We believe we have adequate defenses in these matters and that the likelihood that the outcome of these matters would have a material adverse effect on us is remote. However, there is no assurance that we will prevail in these matters, and we could, in the future, incur judgments, enter into settlements of claims or revise our expectations regarding the outcome of these matters, which could materially impact our results of operations.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2020
Income Tax Disclosure [Abstract]
Income Taxes	INCOME TAXES Our effective tax rate was 27 percent and 26 percent for the three-month periods ended June 30, 2020 and 2019, respectively. The increase in the tax rate was primarily due to an additional $1 million income tax benefit on stock-based compensation recognized in the second quarter of 2019 and the recording of a valuation allowance against deferred tax assets in certain jurisdictions in the second quarter of 2020. Our effective tax rate was 24 percent and 25 percent for the six-month periods ended June 30, 2020 and 2019, respectively. The decrease in the tax rate was primarily due to an additional $1 million income tax benefit on stock-based compensation and an additional $3 million state income tax benefit from a reduction in the liability for uncertain tax positions resulting from the expiration of statutes of limitation recognized in the first half of 2020.

Accounting Policies (Policies)

Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2020
Accounting Policies [Abstract]
Reclassifications	Reclassifications. Certain prior year amounts have been reclassified to conform to the 2020 presentation in the condensed consolidated financial statements. In our condensed consolidated statements of cash flows, the cash flows from discontinued operations are not separately classified.
Compensation Related Costs	Stock-Based Compensation. We issue stock-based incentives in various forms to our employees and non-employee Directors. Outstanding stock-based incentives were in the form of long-term stock awards, stock options, restricted stock units ("RSUs"), performance restricted stock units ("PRSUs") and phantom stock awards. In December 2019, our Organization and Compensation Committee of the Board of Directors (the "Compensation Committee") amended the terms of equity awards under our 2014 Long Term Stock Incentive Plan to provide that newly issued stock options, RSUs and phantom stock awards vest over a three As such, compensation expense for equity awards granted in 2020 and thereafter is recognized ratably over the shorter of the vesting period, typically three years, or the length of time until the grantee becomes retirement eligible. In February 2020, our Compensation Committee approved the grant of RSUs under the Company’s 2014 Long Term Stock Incentive Plan. We measure compensation expense for RSUs at the market price of our common stock at the grant date.
Credit Loss, Financial Instrument	Allowance for Credit Losses. We do business with a number of customers, including certain home center retailers. We monitor our exposure for credit losses on our customer receivable balances and other financial investments measured at amortized cost and the credit worthiness of our customers on an on-going basis, including requiring the completion of credit applications and performing periodic reviews of our open accounts receivable. We record allowances for doubtful accounts for estimated losses resulting from the inability of our customers to fulfill their required payment obligation to us. Allowances are estimated at each of our businesses based upon specific customer balances, where a risk of loss has been identified, and also include a provision for losses based upon historical collection experience and write-off activity as well as reasonable and supportable forecast information that considers macro-economic factors and industry-specific trends associated with our businesses, among others. Our receivables balances are generally due in less than one year.
Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements	Recently Adopted Accounting Pronouncements. In June 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2016-13, "Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments," which modifies the methodology for recognizing loss impairments on certain types of financial instruments, including receivables. The new methodology requires an entity to estimate the credit losses expected over the life of an exposure. Additionally, ASU 2016-13 amends the current available-for-sale security other-than-temporary impairment model for debt securities. We adopted ASU 2016-13 and recorded a cumulative-effect adjustment to opening retained earnings on January 1, 2020. The adoption of the standard did not have a material effect on our financial position or results of operations. In August 2018, the FASB issued ASU 2018-15, "Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract," which allows for the capitalization of certain implementation costs incurred in a hosting arrangement that is a service contract. We adopted ASU 2018-15 prospectively beginning on January 1, 2020. The adoption of the standard did not have an impact on our financial position or results of operations. A. ACCOUNTING POLICIES (Concluded) In December 2019, the FASB issued ASU 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes," which simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. We early adopted ASU 2019-12 on January 1, 2020. The adoption of the standard did not have an impact on our financial position or results of operations. Recently Issued Accounting Pronouncements. In January 2020, the FASB issued ASU 2020-01, "Investments—Equity Securities (Topic 321)", "Investments—Equity Method and Joint Ventures (Topic 323)", and "Derivatives and Hedging (Topic 815): Clarifying the Interactions between Topic 321, Topic 323, and Topic 815", which clarifies that an entity should consider observable transactions when either applying or discontinuing the equity method of accounting for the purposes of applying the measurement alternative in accordance with Topic 321. ASU 2020-01 clarifies that for certain forward contracts or purchased options to acquire investments, an entity should not consider whether, upon settlement of the forward contract or exercise of the purchased option, the underlying securities would be accounted for under the equity method or the fair value option. ASU 2020-01 is effective for us for annual periods beginning January 1, 2021. Early adoption is permitted. We are currently reviewing the provisions of this new pronouncement and the impact, if any, the adoption of this guidance has on our financial position and results of operations.

Discontinued Operations (Tables

Discontinued Operations (Tables)	6 Months Ended
	Jun. 30, 2020
Discontinued Operations and Disposal Groups [Abstract]
Schedule of Discontinued Operations	The major classes of line items constituting income from discontinued operations, net, in millions: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Net sales $ — $ 436 $ 101 $ 831 Cost of sales — 327 78 645 Gross profit — 109 23 186 Selling, general and administrative expenses (A) (1) 64 31 120 Impairment charge for goodwill (B) — — — 7 Other income (expense), net — (1) — — Income (loss) from discontinued operations 1 44 (8) 59 Gain on disposal of discontinued operations 17 — 602 — Income before income tax 18 44 594 59 Income tax expense (4) (15) (183) (21) Income from discontinued operations, net $ 14 $ 29 $ 411 $ 38 (A) In the second quarter of 2020, certain remaining liabilities were adjusted to reflect current activity related to sold businesses. (B) In the first quarter of 2019, we recognized a $7 million non-cash goodwill impairment charge related to a decline in the long-term outlook of our windows and doors business in the United Kingdom. The carrying amount of major classes of assets and liabilities included as part of the Cabinetry discontinued operations, were as follows, in millions: December 31, 2019 Receivables $ 76 Prepaid expenses and other 7 Inventories 90 Property and equipment, net 157 Operating lease right-of-use assets 4 Goodwill 181 Other intangible assets, net 1 Other assets 12 Total assets classified as held for sale $ 528 Accounts payable $ 103 Accrued liabilities 46 Noncurrent operating lease liabilities 3 Other liabilities 10 Total liabilities classified as held for sale $ 162 Six Months Ended June 30, 2020 2019 Depreciation and amortization $ — $ 18 Capital expenditures 1 19 ROU assets obtained in exchange for new lease obligations — 3

Revenue (Tables)

Revenue (Tables)	6 Months Ended
	Jun. 30, 2020
Revenues [Abstract]
Disaggregation of Revenue	Our revenues are derived primarily from sales to customers in North America and Internationally, principally Europe. Net sales from these geographic markets, by segment, were as follows, in millions: Three Months Ended June 30, 2020 Plumbing Products Decorative Architectural Products Total Primary geographic markets: North America $ 584 $ 896 $ 1,480 International, principally Europe 284 — 284 Total $ 868 $ 896 $ 1,764 Six Months Ended June 30, 2020 Plumbing Products Decorative Architectural Products Total Primary geographic markets: North America $ 1,216 $ 1,522 $ 2,738 International, principally Europe 607 — 607 Total $ 1,823 $ 1,522 $ 3,345 Three Months Ended June 30, 2019 Plumbing Products Decorative Architectural Products Total Primary geographic markets: North America $ 661 $ 827 $ 1,488 International, principally Europe 351 — 351 Total $ 1,012 $ 827 $ 1,839 Six Months Ended June 30, 2019 Plumbing Products Decorative Architectural Products Total Primary geographic markets: North America $ 1,259 $ 1,400 $ 2,659 International, principally Europe 693 — 693 Total $ 1,952 $ 1,400 $ 3,352
Financing Receivable, Allowance for Credit Loss	Changes in the allowance for credit losses deducted from accounts receivable were as follows, in millions: Six Months Ended Balance at January 1 (after adopting ASU 2016-13) $ 5 Provision for expected credit losses during the period 2 Write-offs charged against the allowance (1) Recoveries of amounts previously written off 1 Balance at end of period $ 7

Goodwill and Other Intangible_2

Goodwill and Other Intangible Assets (Tables)	6 Months Ended
	Jun. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of changes in carrying amount of goodwill	The changes in the carrying amount of goodwill for the six-month period ended June 30, 2020, by segment, were as follows, in millions: Gross Goodwill At June 30, 2020 Accumulated Net Goodwill At June 30, 2020 Plumbing Products $ 578 $ (340) $ 238 Decorative Architectural Products 358 (75) 283 Total $ 936 $ (415) $ 521 Gross Goodwill At December 31, 2019 Accumulated Net Goodwill At December 31, 2019 Acquisitions Net Goodwill At June 30, 2020 Plumbing Products $ 566 $ (340) $ 226 $ 12 $ 238 Decorative Architectural Products 358 (75) 283 — 283 Total $ 924 $ (415) $ 509 $ 12 $ 521

Warranty Liability (Tables)

Warranty Liability (Tables)	6 Months Ended
	Jun. 30, 2020
Product Warranties Disclosures [Abstract]
Schedule of changes in the Company's warranty liability	Changes in our warranty liability were as follows, in millions: Six Months Ended Twelve Months Ended December 31, 2019 Balance at January 1 $ 84 $ 81 Accruals for warranties issued during the period 15 34 Accruals related to pre-existing warranties — 1 Settlements made (in cash or kind) during the period (16) (31) Other, net (including currency translation) (1) (1) Balance at end of period $ 82 $ 84

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2020
Share-based Payment Arrangement [Abstract]
Schedule of pre-tax compensation expense and the related income tax benefit for these stock-based incentives	Pre-tax compensation expense included in income from continuing operations for these stock-based incentives was as follows, in millions: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Long-term stock awards $ 3 $ 5 $ 7 $ 10 Stock options 2 1 5 2 Restricted stock units 3 — 11 — Performance restricted stock units — 1 1 2 Phantom stock awards and stock appreciation rights 2 1 2 2 Total $ 10 $ 8 $ 26 $ 16
Schedule of the Company's long-term stock award activity	Our long-term stock award activity was as follows, shares in millions: Six Months Ended June 30, 2020 2019 Unvested stock award shares at January 1 2 2 Weighted average grant date fair value $ 34 $ 30 Stock award shares granted — 1 Weighted average grant date fair value $ — $ 36 Stock award shares vested 1 1 Weighted average grant date fair value $ 32 $ 25 Stock award shares forfeited — — Weighted average grant date fair value $ 35 $ 31 Unvested stock award shares at June 30 1 2 Weighted average grant date fair value $ 36 $ 34
Schedule of the Company's stock option activity	Our stock option activity was as follows, shares in millions: Six Months Ended June 30, 2020 2019 Option shares outstanding, January 1 3 4 Weighted average exercise price $ 27 $ 21 Option shares granted 1 1 Weighted average exercise price $ 48 $ 36 Option shares exercised 1 1 Aggregate intrinsic value on date of exercise (A) $ 23 million $ 17 million Weighted average exercise price $ 17 $ 11 Option shares forfeited — — Weighted average exercise price $ 42 $ 36 Option shares outstanding, June 30 3 4 Weighted average exercise price $ 33 $ 25 Weighted average remaining option term (in years) 7 6 Option shares vested and expected to vest, June 30 3 4 Weighted average exercise price $ 33 $ 25 Aggregate intrinsic value (A) $ 46 million $ 52 million Weighted average remaining option term (in years) 7 6 Option shares exercisable (vested), June 30 1 2 Weighted average exercise price $ 27 $ 20 Aggregate intrinsic value (A) $ 34 million $ 45 million Weighted average remaining option term (in years) 5 4 (A) Aggregate intrinsic value is calculated using our stock price at each respective date, less the exercise price (grant date price), multiplied by the number of shares.
Schedule of weighted average grant date fair value of option shares granted and the assumptions used to estimate those values using a Black-Scholes option pricing model	The weighted average grant date fair value of option shares granted and the assumptions used to estimate those values using a Black-Scholes option pricing model were as follows: Six Months Ended June 30, 2020 2019 Weighted average grant date fair value $ 10.67 $ 8.81 Risk-free interest rate 1.53 % 2.57 % Dividend yield 1.14 % 1.35 % Volatility factor 24.00 % 25.00 % Expected option life 6 years 6 years

Employee Retirement Plans (Tabl

Employee Retirement Plans (Tables)	6 Months Ended
	Jun. 30, 2020
Retirement Benefits [Abstract]
Schedule of net periodic pension cost for the Company's defined-benefit pension plans	Net periodic pension cost for our defined-benefit pension plans, with the exception of service cost, is recorded in other income (expense), net, in our condensed consolidated statement of operations. Net periodic pension cost for our defined-benefit pension plans was as follows, in millions: Three Months Ended June 30, 2020 2019 Qualified Non-Qualified Qualified Non-Qualified Interest cost $ 7 $ 1 $ 9 $ 2 Expected return on plan assets (5) — (11) — Amortization of net loss 5 1 6 — Net periodic pension cost $ 7 $ 2 $ 4 $ 2 Six Months Ended June 30, 2020 2019 Qualified Non-Qualified Qualified Non-Qualified Service cost $ 1 $ — $ 1 $ — Interest cost 13 2 19 3 Expected return on plan assets (11) — (22) — Amortization of net loss 11 2 10 1 Net periodic pension cost $ 14 $ 4 $ 8 $ 4

Reclassifications From Accumu_2

Reclassifications From Accumulated Other Comprehensive Loss (Tables)	6 Months Ended
	Jun. 30, 2020
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]
Schedule of reclassifications from accumulated other comprehensive (loss) income to the condensed consolidated statements of operations	The reclassifications from accumulated other comprehensive loss to the condensed consolidated statements of operations were as follows, in millions: Amounts Reclassified Amounts Reclassified Accumulated Other Comprehensive Loss Three Months Ended June 30, Six Months Ended June 30, Statement of Operations Line Item 2020 2019 2020 2019 Amortization of defined-benefit pension and other post-retirement benefits: Actuarial losses, net $ 6 $ 6 $ 13 $ 11 Other income (expense), net Tax (benefit) (1) (2) (3) (3) Net of tax $ 5 $ 4 $ 10 $ 8 Interest rate swaps $ 1 $ 1 $ 1 $ 1 Interest expense Tax (benefit) — — — — Net of tax $ 1 $ 1 $ 1 $ 1

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Jun. 30, 2020
Segment Reporting [Abstract]
Schedule of information by segment and geographic area	Information by segment and geographic area was as follows, in millions: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 2020 2019 2020 2019 Net Sales (A) Operating Profit (Loss) Net Sales (A) Operating Profit (Loss) Operations by segment: Plumbing Products $ 868 $ 1,012 $ 155 $ 198 $ 1,823 $ 1,952 $ 312 $ 351 Decorative Architectural Products 896 827 201 173 1,522 1,400 296 246 Total $ 1,764 $ 1,839 $ 356 $ 371 $ 3,345 $ 3,352 $ 608 $ 597 Operations by geographic area: North America $ 1,480 $ 1,488 $ 321 $ 316 $ 2,738 $ 2,659 $ 531 $ 497 International, principally Europe 284 351 35 55 607 693 77 100 Total $ 1,764 $ 1,839 356 371 $ 3,345 $ 3,352 608 597 General corporate expense, net (17) (24) (44) (53) Operating profit 339 347 564 544 Other income (expense), net (37) (44) (88) (88) Income from continuing operations before income taxes $ 302 $ 303 $ 476 $ 456 (A) Inter-segment sales were not material.

Other Income (Expense), Net (Ta

Other Income (Expense), Net (Tables)	6 Months Ended
	Jun. 30, 2020
Other Income and Expenses [Abstract]
Schedule of components of other, net, which is included in other income (expense), net	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, 2020 2019 2020 2019 Income from cash and cash investments $ 1 $ — $ 2 $ 1 Foreign currency transaction gains (losses) 2 2 (7) 2 Net periodic pension and post-retirement benefit cost (8) (6) (16) (11) Dividend income 4 — 4 — Other items, net (1) 1 (1) — Total other, net $ (2) $ (3) $ (18) $ (8)

Income Per Common Share (Tables

Income Per Common Share (Tables)	6 Months Ended
	Jun. 30, 2020
Earnings Per Share [Abstract]
Schedule of reconciliations of the numerators and denominators used in the computations of basic and diluted earnings per common share	Reconciliations of the numerators and denominators used in the computations of basic and diluted income per common share were as follows, in millions: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Numerator (basic and diluted): Income from continuing operations $ 210 $ 211 $ 343 $ 318 Less: Allocation to unvested restricted stock awards 2 2 3 2 Income from continuing operations attributable to common shareholders 208 209 340 316 Income from discontinued operations, net 14 29 411 38 Less: Allocation to unvested restricted stock awards — — 3 — Income from discontinued operations, net attributable to common shareholders 14 29 408 38 Net income attributable to common shareholders $ 222 $ 238 $ 748 $ 354 Denominator: Basic common shares (based upon weighted average) 262 289 267 291 Add: Stock option dilution 1 1 1 1 Diluted common shares 263 290 268 292

Accounting Policies Accounting

Accounting Policies Accounting Policies (Details)	6 Months Ended
	Jun. 30, 2020
Long-term stock awards
Stock-based compensation
Vesting period	3 years
Minimum
Stock-based compensation
Vesting period	3 years

Acquisitions (Details)

Acquisitions (Details) - USD ($)	3 Months Ended	6 Months Ended
	Mar. 31, 2020	Jun. 30, 2020
Business Acquisition [Line Items]
Goodwill, acquired during period		$ 12,000,000
SmarTap
Business Acquisition [Line Items]
Payments to acquire businesses	$ 24,000,000
Goodwill, acquired during period	12,000,000
Finite-lived intangible assets acquired	$ 10,000,000
Weighted average useful life (in years)	5 years

Discontinued Operations - Narra

Discontinued Operations - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Businesses, net of cash disposed			$ 865	$ 0
Discontinued Operations, Disposed of by Sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain on disposal of discontinued operations	$ 17	$ 0	602	0
Income before income tax, discontinued operations	18	44	594	59
Masco Cabinetry
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Income before income tax, discontinued operations	1	35	8	58
Masco Cabinetry | Discontinued Operations, Held-for-sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Businesses, net of cash disposed			989
Gain (loss) on disposition of business			585
Milgard and UKWG
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Income before income tax, discontinued operations		$ 9		$ 1
Milgard [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain on disposal of discontinued operations	17
Businesses, net of cash disposed	12
Short term receivable from divestiture of businesses, payable in five monthly installments	5		5
Cash and Cash Equivalents | Masco Cabinetry | Discontinued Operations, Disposed of by Sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Businesses, net of cash disposed			853
ACProducts Preferred Stock | Masco Cabinetry | Discontinued Operations, Held-for-sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from divestiture of businesses			136
Masco Cabinetry | Financial Guarantee
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Guarantor obligations, maximum exposure, undiscounted	20		20
Masco Cabinetry
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Letters of credit outstanding, amount	$ 10		$ 10

Discontinued Operations - Incom

Discontinued Operations - Income Statement (Details) - USD ($) $ in Millions	3 Months Ended			6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2020	Jun. 30, 2019
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
(Loss) income from discontinued operations, net	$ 14	$ 29		$ 411	$ 38
Discontinued Operations, Disposed of by Sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net sales	0	436		101	831
Cost of sales	0	327		78	645
Gross profit	0	109		23	186
Selling, general and administrative expenses (A)	(1)	64		31	120
Impairment charge for goodwill	0	0		0	7
Other income (expense), net	0	(1)		0	0
Income (loss) from discontinued operations	1	44		(8)	59
Gain on disposal of discontinued operations	17	0		602	0
Income before income tax	18	44		594	59
Income tax benefit (expense)	(4)	(15)		(183)	(21)
(Loss) income from discontinued operations, net	$ 14	$ 29		$ 411	$ 38
UK Window Group | Discontinued Operations, Disposed of by Sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Noncash goodwill impairment			$ 7

Discontinued Operations - Balan

Discontinued Operations - Balance Sheet (Details) - USD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Operating lease right-of-use assets	$ 163	$ 176
Other assets	0	355
Noncurrent operating lease liabilities	$ 150	162
Masco Cabinetry | Discontinued Operations, Held-for-sale or Disposed of by Sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Receivables		76
Prepaid expenses and other		7
Inventories		90
Property and equipment, net		157
Operating lease right-of-use assets		4
Goodwill		181
Other intangible assets, net		1
Other assets		12
Total assets classified as held for sale		528
Accounts payable		103
Accrued liabilities		46
Noncurrent operating lease liabilities		3
Other liabilities		10
Total liabilities classified as held for sale		$ 162

Discontinued Operations - Addit

Discontinued Operations - Additional Information (Details) - Discontinued Operations, Held-for-sale or Disposed of by Sale - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Depreciation and amortization	$ 0	$ 18
Capital expenditures	1	19
ROU assets obtained in exchange for new lease obligations	$ 0	$ 3

Revenue (Details)

Revenue (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Disaggregation of Revenue [Line Items]
Net sales	$ 1,764	$ 1,839	$ 3,345	$ 3,352
Contract with customer, asset, gross, current	2		2		$ 2
Contract with customer, liability	17		17		$ 40
Contract with customer, liability, revenue recognized	3	1
Performance obligation satisfied in previous period	2	1	5	1
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at January 1 (after adopting ASU 2016-13)			5
Provision for expected credit losses during the period			2
Write-offs charged against the allowance			(1)
Recoveries of amounts previously written off			1
Balance at end of period	7		7
Plumbing Products
Disaggregation of Revenue [Line Items]
Net sales	868	1,012	1,823	1,952
Decorative Architectural Products
Disaggregation of Revenue [Line Items]
Net sales	896	827	1,522	1,400
North America
Disaggregation of Revenue [Line Items]
Net sales	1,480	1,488	2,738	2,659
North America | Plumbing Products
Disaggregation of Revenue [Line Items]
Net sales	584	661	1,216	1,259
North America | Decorative Architectural Products
Disaggregation of Revenue [Line Items]
Net sales	896	827	1,522	1,400
International, principally Europe
Disaggregation of Revenue [Line Items]
Net sales	284	351	607	693
International, principally Europe | Plumbing Products
Disaggregation of Revenue [Line Items]
Net sales	284	351	607	693
International, principally Europe | Decorative Architectural Products
Disaggregation of Revenue [Line Items]
Net sales	$ 0	$ 0	$ 0	$ 0

Depreciation and Amortization (

Depreciation and Amortization (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Depreciation, Depletion and Amortization [Abstract]
Depreciation and amortization expense	$ 66	$ 82

Goodwill and Other Intangible_3

Goodwill and Other Intangible Assets - Goodwill Rollforward (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2020	Dec. 31, 2019
Goodwill [Line Items]
Gross goodwill		$ 936	$ 924
Accumulated Impairment Losses		(415)	(415)
Net goodwill	$ 521	521	509
Goodwill [Roll Forward]
Gross goodwill		936	924
Accumulated Impairment Losses		(415)	(415)
Net Goodwill, December 31, 2019	509
Acquisitions	12
Net Goodwill, June 30, 2020	521
Plumbing Products
Goodwill [Line Items]
Gross goodwill		578	566
Accumulated Impairment Losses		(340)	(340)
Net goodwill	226	238	226
Goodwill [Roll Forward]
Gross goodwill		578	566
Accumulated Impairment Losses		(340)	(340)
Net Goodwill, December 31, 2019	226
Acquisitions	12
Net Goodwill, June 30, 2020	238
Decorative Architectural Products
Goodwill [Line Items]
Gross goodwill		358	358
Accumulated Impairment Losses		(75)	(75)
Net goodwill	283	283	283
Goodwill [Roll Forward]
Gross goodwill		358	358
Accumulated Impairment Losses		$ (75)	$ (75)
Net Goodwill, December 31, 2019	283
Acquisitions	0
Net Goodwill, June 30, 2020	$ 283

Goodwill and Other Intangible_4

Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Jun. 30, 2020	Dec. 31, 2019
Goodwill [Line Items]
Other indefinite-lived intangible assets		$ 76	$ 76
Carrying value of definite-lived intangible assets		183	183
Accumulated amortization		$ 61	$ 48
Decorative Architectural Products
Goodwill [Line Items]
Impairment of intangible assets	$ 9

Fair Value of Financial Inves_2

Fair Value of Financial Investments (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Feb. 18, 2020	Dec. 31, 2019
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments, fair value disclosure					$ 136,000,000
Dividend income	$ 4,000,000	$ 0	$ 4,000,000	$ 0
Estimate of Fair Value Measurement
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated market value of long-term and short-term debt	3,100,000,000		3,100,000,000			$ 3,000,000,000
Carrying Value Reported Value Measurement
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Aggregate carrying value of long-term and short-term debt	2,800,000,000		$ 2,800,000,000			$ 2,800,000,000
ACProducts Preferred Stock
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Preferred stock, coupon rate, percentage until first anniversary issuance			8.00%
Preferred stock, coupon rate, percentage after the first anniversary until the second anniversary issuance			9.00%
Preferred stock, coupon rate, percentage after the second anniversary until the seventh anniversary issuance			10.00%
Preferred stock, percentage of coupon rate increase			5000.00%
Preferred stock, coupon rate, maximum percentage			15.00%
ACProducts Preferred Stock | Other Assets
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investments	140,000,000		$ 140,000,000
ACProducts Holding, Inc
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Preferred stock, liquidation preference, value	$ 150,000,000		$ 150,000,000

Warranty Liability (Details)

Warranty Liability (Details) - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward]
Balance at the beginning of the period	$ 84	$ 81
Accruals for warranties issued during the period	15	34
Accruals related to pre-existing warranties	0	1
Settlements made (in cash or kind) during the period	(16)	(31)
Other, net (including currency translation)	(1)	(1)
Balance at the end of the period	$ 82	$ 84

Debt (Details)

Debt (Details) - USD ($)	Mar. 13, 2019	Jun. 30, 2020	Mar. 28, 2013
Credit Agreement dated March 13, 2019
Debt
Borrowing capacity, maximum	$ 1,000,000,000
Increase in maximum borrowing capacity	$ 500,000,000
Maximum net leverage ratio	4
Minimum interest coverage ratio	2.5
Borrowings outstanding		$ 0
Credit Agreement dated March 13, 2019 | Federal funds effective rate
Debt
Interest rate, basis spread (as a percent)	0.50%
Credit Agreement dated March 13, 2019 | Libor rate
Debt
Interest rate, basis spread (as a percent)	1.00%
Credit Agreement dated March 13, 2019 | Revolver
Debt
Borrowing capacity, maximum	$ 500,000,000
Credit Agreement dated March 13, 2019 | Swingline loans
Debt
Borrowing capacity, maximum	100,000,000
Credit Agreement dated March 13, 2019 | Letters of credit
Debt
Borrowing capacity, maximum	$ 25,000,000
Letters of credit outstanding, amount		$ 0
Credit Agreement dated March 28, 2013
Debt
Borrowing capacity, maximum			$ 750,000,000

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Stock-based compensation
Pre-tax compensation expense	$ 10	$ 8	$ 26	$ 16
Long-term stock awards
Stock-based compensation
Pre-tax compensation expense	3	5	7	10
Stock options
Stock-based compensation
Pre-tax compensation expense	2	1	5	2
Restricted stock units
Stock-based compensation
Pre-tax compensation expense	3	0	11	0
Performance Restricted Stock Units
Stock-based compensation
Pre-tax compensation expense	0	1	1	2
Phantom stock awards and stock appreciation rights
Stock-based compensation
Pre-tax compensation expense	$ 2	$ 1	$ 2	$ 2

Stock-Based Compensation - Long

Stock-Based Compensation - Long-Term Stock Award (Details) - Long-term stock awards - USD ($) $ / shares in Units, shares in Millions, $ in Millions	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Unvested stock award shares
Balance at the beginning of the period (in shares)	2	2
Granted (in shares)	0	1
Vested (in shares)	1	1
Forfeited (in shares)	0	0
Balance at the end of the period (in shares)	1	2
Weighted average grant date fair value
Balance at the beginning of the period (in dollars per share)	$ 34	$ 30
Granted (in dollars per share)	0	36
Vested (in dollars per share)	32	25
Forfeited (in dollars per share)	35	31
Balance at the end of the period (in dollars per share)	$ 36	$ 34
Additional disclosures
Total unrecognized compensation expense	$ 28	$ 55
Weighted average remaining vesting period	3 years	3 years
Total market value (at the vesting date) of stock award shares	$ 30	$ 30

Stock-Based Compensation - Stoc

Stock-Based Compensation - Stock Options (Details) - USD ($) $ / shares in Units, $ in Millions	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Stock Options
Grant date intrinsic value (in dollars per share)	$ 48
Shares
Granted (in shares)	420,840
Forfeited (in shares)	16,240
Stock options
Shares
Outstanding at the beginning of the period (in shares)	3,000,000	4,000,000
Granted (in shares)	1,000,000	1,000,000
Exercised (in shares)	1,000,000	1,000,000
Forfeited (in shares)	0	0
Outstanding at the end of the period (in shares)	3,000,000	4,000,000
Vested and expected to vest at the end of the period (in shares)	3,000,000	4,000,000
Exercisable at the end of the period (in shares)	1,000,000	2,000,000
Weighted average exercise price
Outstanding at the beginning of the period (in dollars per share)	$ 27	$ 21
Granted (in dollars per share)	48	36
Exercised (in dollars per share)	17	11
Forfeited (in dollars per share)	42	36
Outstanding at the end of the period (in dollars per share)	33	25
Vested and expected to vest at the end of the period (in dollars per share)	33	25
Exercisable at the end of the period (in dollars per share)	$ 27	$ 20
Aggregate intrinsic value
Exercised	$ 23	$ 17
Vested and expected to vest at the end of the period	46	52
Exercisable at the end of the period	$ 34	$ 45
Weighted average remaining option term
Outstanding at the end of the period	7 years	6 years
Vested and expected to vest at the end of the period	7 years	6 years
Exercisable at the end of the period	5 years	4 years
Additional disclosures
Total unrecognized compensation expense	$ 8	$ 11
Weighted average remaining vesting period	3 years	3 years
Five Year Vesting | Stock options
Stock Options
Vesting period	5 years
Three Year Vesting | Stock options
Stock Options
Vesting period	3 years

Stock-Based Compensation - Opti

Stock-Based Compensation - Option Pricing Assumptions and Estimates (Details) - Stock options - $ / shares	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Stock Options
Weighted average grant date fair value (in dollars per share)	$ 10.67	$ 8.81
Risk-free interest rate (as a percent)	1.53%	2.57%
Dividend yield (as a percent)	1.14%	1.35%
Volatility factor (as a percent)	24.00%	25.00%
Expected option life	6 years	6 years

Stock-Based Compensation - Rest

Stock-Based Compensation - Restricted Stock Units (Details) - USD ($) $ / shares in Units, $ in Millions	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Restricted stock units
Stock-based compensation
Period for recognition	3 years
Granted (in shares)	432,170
Granted (in dollars per share)	$ 47
Forfeited (in shares)	5,870
unrecognized compensation expense	$ 9
Weighted average remaining vesting period	2 years
Stock options
Stock-based compensation
Weighted average remaining vesting period	3 years	3 years
LTIP Program | Performance Restricted Stock Units
Stock-based compensation
Granted (in shares)	133,390	126,680
Granted (in dollars per share)	$ 34	$ 39
Forfeited (in shares)	0
Shares issued in period (in shares)	151,724

Employee Retirement Plans (Deta

Employee Retirement Plans (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Qualified
Net periodic pension cost for the company's defined-benefit pension plans
Service cost			$ 1	$ 1
Interest cost	$ 7	$ 9	13	19
Expected return on plan assets	(5)	(11)	(11)	(22)
Amortization of net loss	5	6	11	10
Net periodic pension cost	7	4	14	8
Non-Qualified
Net periodic pension cost for the company's defined-benefit pension plans
Service cost			0	0
Interest cost	1	2	2	3
Expected return on plan assets	0	0	0	0
Amortization of net loss	1	0	2	1
Net periodic pension cost	$ 2	$ 2	$ 4	$ 4

Reclassifications From Accumu_3

Reclassifications From Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Reclassifications from accumulated other comprehensive (loss) income
Other income (expense), net	$ 37	$ 44	$ 88	$ 88
Tax (benefit)	82	80	115	115
Reclassifications, after tax	(234)	(252)	(772)	(379)
Interest Expense	35	41	70	80
Reclassification out of Accumulated Other Comprehensive Income | Actuarial losses, net
Reclassifications from accumulated other comprehensive (loss) income
Other income (expense), net	6	6	13	11
Tax (benefit)	(1)	(2)	(3)	(3)
Reclassifications, after tax	5	4	10	8
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Gain (Loss), Cash Flow Hedge, Including Noncontrolling Interest
Reclassifications from accumulated other comprehensive (loss) income
Tax (benefit)	0	0	0	0
Reclassifications, after tax	(1)	(1)	(1)	(1)
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Gain (Loss), Cash Flow Hedge, Including Noncontrolling Interest | Interest Rate Swap
Reclassifications from accumulated other comprehensive (loss) income
Interest Expense	$ 1	$ 1	$ 1	$ 1

Segment Information (Details)

Segment Information (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Segment Information
Net sales	$ 1,764	$ 1,839	$ 3,345	$ 3,352
Operating Profit (Loss)	339	347	564	544
Other income (expense), net	(37)	(44)	(88)	(88)
Income from continuing operations before income taxes	302	303	476	456
North America
Segment Information
Net sales	1,480	1,488	2,738	2,659
International, principally Europe
Segment Information
Net sales	284	351	607	693
Plumbing Products
Segment Information
Net sales	868	1,012	1,823	1,952
Plumbing Products | North America
Segment Information
Net sales	584	661	1,216	1,259
Plumbing Products | International, principally Europe
Segment Information
Net sales	284	351	607	693
Decorative Architectural Products
Segment Information
Net sales	896	827	1,522	1,400
Decorative Architectural Products | North America
Segment Information
Net sales	896	827	1,522	1,400
Decorative Architectural Products | International, principally Europe
Segment Information
Net sales	0	0	0	0
Operating Segments
Segment Information
Net sales	1,764	1,839	3,345	3,352
Operating Profit (Loss)	356	371	608	597
Operating Segments | Plumbing Products
Segment Information
Net sales	868	1,012	1,823	1,952
Operating Profit (Loss)	155	198	312	351
Operating Segments | Decorative Architectural Products
Segment Information
Net sales	896	827	1,522	1,400
Operating Profit (Loss)	201	173	296	246
Geographic Areas
Segment Information
Net sales	1,764	1,839	3,345	3,352
Operating Profit (Loss)	356	371	608	597
Geographic Areas | North America
Segment Information
Net sales	1,480	1,488	2,738	2,659
Operating Profit (Loss)	321	316	531	497
Geographic Areas | International, principally Europe
Segment Information
Net sales	284	351	607	693
Operating Profit (Loss)	35	55	77	100
Corporate, Non-Segment
Segment Information
General corporate expense, net	$ (17)	$ (24)	$ (44)	$ (53)

Other Income (Expense), Net (De

Other Income (Expense), Net (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Other Income and Expenses [Abstract]
Income from cash and cash investments	$ 1	$ 0	$ 2	$ 1
Foreign currency transaction gains (losses)	2	2	(7)	2
Net periodic pension and post-retirement benefit cost	(8)	(6)	(16)	(11)
Dividend income	4	0	4	0
Other items, net	(1)	1	(1)	0
Total other, net	$ (2)	$ (3)	$ (18)	$ (8)

Income Per Common Share (Detail

Income Per Common Share (Details) - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Numerator (basic and diluted):
Income from continuing operations	$ 210	$ 211	$ 343	$ 318
Less: Allocation to unvested restricted stock awards	2	2	3	2
Income from continuing operations attributable to common shareholders	208	209	340	316
Income from discontinued operations, net	14	29	411	38
Less: Allocation to unvested restricted stock awards	0	0	3	0
Income from discontinued operations, net attributable to common shareholders	14	29	408	38
Net income attributable to common shareholders	$ 222	$ 238	$ 748	$ 354
Denominator:
Basic common shares (based upon weighted average) (in shares)	262	289	267	291
Add: Stock option dilution (in shares)	1	1	1	1
Diluted common shares (in shares)	263	290	268	292

Income Per Common Share - Narra

Income Per Common Share - Narrative (Details) - USD ($)	3 Months Ended				6 Months Ended
	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2020	Jun. 30, 2019	Sep. 17, 2019
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Amount authorized for repurchase							$ 2,000,000,000
Stock repurchased during period (in shares)					16,500,000
Stock repurchased and retired during period	$ 0	$ 602,000,000	$ 167,000,000	$ 122,000,000	$ 602,000,000
Remaining authorized repurchase amount	$ 900,000,000				$ 900,000,000
Dividends
Cash dividends per common share paid (in dollars per share)	$ 0.135		$ 0.120		$ 0.270	$ 0.240
Cash dividends per common share declared (in dollars per share)	$ 0.135		$ 0.120		$ 0.270	$ 0.240
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive effect on computation of diluted earnings per common share (in shares)	762,000		1,300,000		672,000	1,200,000
Performance Restricted Stock Units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive effect on computation of diluted earnings per common share (in shares)			20,000			20,000
Long-term stock awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Stock repurchased and retired during period to offset dilutive impact of awards granted (in shares)					400,000
Common Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Stock repurchased during period, additional shares (in shares)	1,200,000

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Income Tax Disclosure [Abstract]
Effective tax rate (as a percent)	27.00%	26.00%	24.00%	25.00%
Income tax reconciliation, share-based compensation cost	$ 1		$ 1
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Amount			$ 3