Masco (MAS) 10-Q 27 Apr 22 2022 Q1 Quarterly report Financial data

Cover Page

Cover Page	3 Months Ended
	Mar. 31, 2022shares
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2022
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)	235,940,440
Entity Central Index Key	0000062996
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Current Assets:
Cash and cash investments	$ 479	$ 926
Receivables	1,502	1,171
Prepaid expenses and other	107	109
Inventories:
Finished goods	809	702
Raw material	409	383
Work in process	122	131
Total inventories	1,340	1,216
Total current assets	3,428	3,422
Property and equipment, net	892	896
Goodwill	565	568
Other intangible assets, net	379	388
Operating lease right-of-use assets	195	187
Other assets	109	114
Total assets	5,568	5,575
Current Liabilities:
Accounts payable	1,114	1,045
Notes payable	273	10
Accrued liabilities	749	884
Total current liabilities	2,136	1,939
Long-term debt	2,946	2,949
Noncurrent operating lease liabilities	179	172
Other liabilities	407	437
Total liabilities	5,668	5,497
Commitments and contingencies (Note P)
Redeemable noncontrolling interest	21	22
Masco Corporation's shareholders' equity:
Common shares, par value $1 per share Authorized shares: 1,400,000,000; Issued and outstanding: 2022 – 235,600,000; 2021 – 241,200,000	236	241
Preferred shares authorized: 1,000,000; Issued and outstanding: 2022 and 2021 – None	0	0
Paid-in capital	0	0
Retained deficit	(833)	(652)
Accumulated other comprehensive income	226	232
Total Masco Corporation's shareholders' deficit	(371)	(179)
Noncontrolling interest	250	235
Total equity	(121)	56
Total liabilities and equity	$ 5,568	$ 5,575

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Mar. 31, 2022	Dec. 31, 2021
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)	235,600,000	241,200,000
Common shares, shares outstanding (in shares)	235,600,000	241,200,000
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
	Mar. 31, 2022	Mar. 31, 2021
Income Statement [Abstract]
Net sales	$ 2,201	$ 1,970
Cost of sales	1,497	1,270
Gross profit	704	700
Selling, general and administrative expenses	351	335
Operating profit	353	365
Other income (expense), net:
Interest expense	(25)	(202)
Other, net	(1)	(6)
Total other income (expense), net	(26)	(208)
Income before income taxes	327	157
Income tax expense	75	43
Net income	252	114
Less: Net income attributable to noncontrolling interest	19	20
Net income attributable to Masco Corporation	$ 233	$ 94
Basic:
Net income (in dollars per share)	$ 0.98	$ 0.34
Diluted:
Net income (in dollars per share)	$ 0.97	$ 0.34

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Statement of Comprehensive Income [Abstract]
Net income	$ 252	$ 114
Less: Net income attributable to noncontrolling interest	19	20
Net income attributable to Masco Corporation	233	94
Other comprehensive income (loss), net of tax (Note L):
Cumulative translation adjustment	(11)	(36)
Interest rate swaps	0	7
Pension and other post-retirement benefits	1	5
Other comprehensive (loss), net of tax	(10)	(24)
Less: Other comprehensive (loss) attributable to noncontrolling interest	(4)	(12)
Other comprehensive (loss) attributable to Masco Corporation	(6)	(12)
Total comprehensive income	242	90
Less: Total comprehensive income attributable to noncontrolling interest	15	8
Total comprehensive income attributable to Masco Corporation	$ 227	$ 82

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
CASH FLOWS FROM (FOR) OPERATING ACTIVITIES:
Cash provided by operations	$ 334	$ 323
Increase in receivables	(349)	(195)
Increase in inventories	(127)	(78)
Decrease in accounts payable and accrued liabilities, net	(85)	(139)
Net cash for operating activities	(227)	(89)
CASH FLOWS FROM (FOR) FINANCING ACTIVITIES:
Retirement of notes	0	(1,326)
Purchase of Company common stock	(364)	(303)
Proceeds from revolving credit borrowings, net	263	0
Cash dividends paid	(67)	(36)
Issuance of notes, net of issuance costs	0	1,481
Debt extinguishment costs	0	(160)
Proceeds from the exercise of stock options	1	0
Employee withholding taxes paid on stock-based compensation	(17)	(14)
Decrease in debt, net	(3)	(1)
Net cash for financing activities	(187)	(359)
CASH FLOWS FROM (FOR) INVESTING ACTIVITIES:
Capital expenditures	(27)	(30)
Businesses, net of cash disposed	2	0
Other financial investments	0	1
Other, net	(1)	4
Net cash for investing activities	(26)	(25)
Effect of exchange rate changes on cash and cash investments	(7)	(13)
CASH AND CASH INVESTMENTS:
Decrease for the period	(447)	(486)
At January 1	926	1,326
At March 31	$ 479	$ 840

CONSOLIDATED STATEMENTS OF SHAR

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) - USD ($) $ in Millions	Total	Common Shares ($1 par value)	Paid-In Capital	Retained Earnings (Deficit)	Accumulated Other Comprehensive  (Loss) Income	Noncontrolling Interest
Balance at Dec. 31, 2020	$ 421	$ 258	$ 0	$ 79	$ (142)	$ 226
Increase (Decrease) in Stockholders' Equity
Total comprehensive income (loss)	90			94	(12)	8
Shares issued	0	1	(1)	0
Shares retired:
Repurchased	(303)	(6)	(27)	(270)
Surrendered (non-cash)	(13)	0		(13)
Redeemable noncontrolling interest - redemption adjustment	(6)			(6)
Stock-based compensation	28		28
Balance at Mar. 31, 2021	217	253	0	(116)	(154)	234
Balance at Dec. 31, 2021	56	241	0	(652)	232	235
Increase (Decrease) in Stockholders' Equity
Total comprehensive income (loss)	242			233	(6)	15
Shares issued	1	1	0
Shares retired:
Repurchased	(364)	(6)	(27)	(331)
Surrendered (non-cash)	(17)			(17)
Redeemable noncontrolling interest - redemption adjustment	1			1
Cash dividends declared	(67)			(67)
Stock-based compensation	27		27
Balance at Mar. 31, 2022	$ (121)	$ 236	$ 0	$ (833)	$ 226	$ 250

CONSOLIDATED STATEMENTS OF SH_2

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) (Parenthetical) - $ / shares	Mar. 31, 2022	Dec. 31, 2021	Mar. 31, 2021
Statement of Stockholders' Equity [Abstract]
Common share, par value (in dollars per share)	$ 1	$ 1	$ 1

ACCOUNTING POLICIES

ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2022
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 March 31, 2022 and our results of operations, comprehensive income (loss), cash flows and changes in shareholders' equity for the three-month periods ended March 31, 2022 and 2021. The condensed consolidated balance sheet at December 31, 2021 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. Recently Adopted Accounting Pronouncements. In August 2020, the Financial Accounting Standards Board ("FASB") issued ASU 2020-06, “Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity.” ASU 2020-06 simplifies the accounting for convertible instruments by reducing the number of accounting models for convertible debt instruments and convertible preferred stock. We adopted this standard for annual periods beginning January 1, 2022. The adoption of this new standard did not impact our financial position or results of operations. In October 2021, the FASB issued ASU 2021-08, “Business Combinations (Topic 805): Accounting for Acquired Contract Assets and Contract Liabilities from Contracts with Customers.” ASU 2021-08 requires contract assets and contract liabilities acquired in a business combination to be recognized in accordance with Topic 606 as if the acquirer had originated the contracts. We adopted this standard for annual periods beginning January 1, 2022. The adoption of this new standard did not impact our financial position or results of operations.

ACQUISITIONS

ACQUISITIONS	3 Months Ended
	Mar. 31, 2022
Business Combination and Asset Acquisition [Abstract]
ACQUISITIONS	ACQUISITIONS In the third quarter of 2021, we acquired all of the share capital of Steamist, Inc. ("Steamist") for approximately $56 million in cash. Steamist is a manufacturer of residential steam bath products that are complementary to many of our plumbing products. This business is included in our Plumbing Products segment. In connection with this acquisition, we recognized $31 million of definite-lived intangible assets, primarily related to customer relationships. The definite-lived intangible assets are being amortized on a straight-line basis over a weighted average amortization period of 11 years. We also recognized $29 million of goodwill, which is not tax deductible, and is related primarily to the expected synergies from combining the operations into our business. Working capital and other adjustments were finalized with the seller in the fourth quarter of 2021, resulting in no significant changes. In the first quarter of 2021, we acquired a 75.1 percent equity interest in Easy Sanitary Solutions B.V. ("ESS"), for approximately €47 million ($58 million), including $52 million of cash and $6 million of debt that will be paid out over two years less any pending or settled indemnity matters. The cash payment was made to a third-party notary on December 29, 2020 for the acquisition of this equity interest in advance of the transaction closing on January 4, 2021. ESS is a manufacturer of shower channel drains and offers a wide range of products for barrier-free showering and bathroom wall niches. This business is included in our Plumbing Products segment. In connection with this acquisition, we recognized $32 million of definite-lived intangible assets, primarily related to customer relationships. The definite-lived intangible assets are being amortized on a straight-line basis over a weighted average amortization period of 10 years. We also recognized $35 million of goodwill, which is not tax deductible, and is related primarily to the expected synergies from combining the operations into our business. The remaining 24.9 percent equity interest in ESS is subject to a call and put option that is exercisable by us or the sellers, respectively, any time after December 31, 2023. The redemption value of the call and put option is the same and based on a floating EBITDA value. The call and put options were determined to be embedded within the redeemable noncontrolling interest and are recorded as temporary equity in the condensed consolidated balance sheet. We elected to adjust the redeemable noncontrolling interest to its full redemption amount directly into retained deficit.

DIVESTITURES

DIVESTITURES	3 Months Ended
	Mar. 31, 2022
Discontinued Operations and Disposal Groups [Abstract]
DIVESTITURES	DIVESTITURESOn May 31, 2021, we completed the divestiture of our Hüppe GmbH ("Hüppe") business, a manufacturer of shower enclosures and shower trays. The sale of Hüppe did not represent a strategic shift that will have a major effect on our operations and financial results and therefore was not presented as discontinued operations. Prior to the divestiture, the results of the business were included in our Plumbing Products segment. During the first quarter of 2022, we recorded a $2 million pre-tax post-closing gain related to the finalization of working capital items in other, net in our condensed consolidated statement of operations.

REVENUE

REVENUE	3 Months Ended
	Mar. 31, 2022
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 March 31, 2022 Plumbing Products Decorative Architectural Products Total Primary geographic markets: North America $ 892 $ 842 $ 1,734 International, principally Europe 467 — 467 Total $ 1,359 $ 842 $ 2,201 Three Months Ended March 31, 2021 Plumbing Products Decorative Architectural Products Total Primary geographic markets: North America $ 808 $ 721 $ 1,529 International, principally Europe 441 — 441 Total $ 1,249 $ 721 $ 1,970 Our contract asset balance was $2 million and $1 million at March 31, 2022 and December 31, 2021, respectively. Our contract liability balance was $28 million and $67 million at March 31, 2022 and December 31, 2021, respectively. We recognized $5 million and $1 million of revenue for the three-month periods ended March 31, 2022 and 2021, respectively, related to performance obligations settled in previous years. D. REVENUE (Concluded) Changes in the allowance for credit losses deducted from accounts receivable were as follows, in millions: Three Months Ended Twelve Months Ended December 31, 2021 Balance at January 1 $ 6 $ 7 Provision for expected credit losses during the period 2 1 Write-offs charged against the allowance (1) (2) Recoveries of amounts previously written off 1 1 Other (A) — (1) Balance at end of period $ 8 $ 6 (A) As a result of Hüppe being divested in May 2021, $1 million for the year end December 31, 2021 was removed from allowance for credit losses.

DEPRECIATION AND AMORTIZATION

DEPRECIATION AND AMORTIZATION	3 Months Ended
	Mar. 31, 2022
Depreciation, Depletion and Amortization [Abstract]
DEPRECIATION AND AMORTIZATION	DEPRECIATION AND AMORTIZATION Depreciation and amortization expense was $35 million and $43 million for the three-month periods ended March 31, 2022 and 2021, respectively.

GOODWILL AND OTHER INTANGIBLE A

GOODWILL AND OTHER INTANGIBLE ASSETS	3 Months Ended
	Mar. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL AND OTHER INTANGIBLE ASSETS	GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill at March 31, 2022, by segment, was as follows, in millions: Gross Goodwill At March 31, 2022 Accumulated Net Goodwill At March 31, 2022 Plumbing Products $ 620 $ (301) $ 319 Decorative Architectural Products 366 (120) 246 Total $ 986 $ (421) $ 565 The changes in the carrying amount of goodwill for the three-month period ended March 31, 2022, by segment, were as follows, in millions: Gross Goodwill At December 31, 2021 Accumulated Net Goodwill At December 31, 2021 Other (B) Net Goodwill At March 31, 2022 Plumbing Products (A) $ 623 $ (301) $ 322 $ (3) $ 319 Decorative Architectural Products 366 (120) 246 — 246 Total $ 989 $ (421) $ 568 $ (3) $ 565 (A) As a result of Hüppe being divested in May 2021, both gross goodwill and accumulated impairment losses for the Plumbing Products segment were reduced by $39 million. (B) Other consists of the effect of foreign currency translation. The carrying value of our other indefinite-lived intangible assets was $109 million at both March 31, 2022 and December 31, 2021, and principally included registered trademarks. The carrying value of our definite-lived intangible assets was $270 million (net of accumulated amortization of $83 million) and $279 million (net of accumulated amortization of $75 million) at March 31, 2022 and December 31, 2021, respectively, and principally included customer relationships.

FAIR VALUE OF FINANCIAL INVESTM

FAIR VALUE OF FINANCIAL INVESTMENTS	3 Months Ended
	Mar. 31, 2022
Fair Value Disclosures [Abstract]
FAIR VALUE OF FINANCIAL INVESTMENTS	FAIR VALUE OF FINANCIAL INSTRUMENTS Kraus Acquisition Contingent Consideration. As described in Note B, we may be obligated to pay up to an additional $50 million in 2023 for the Kraus acquisition contingent upon the achievement of certain financial performance metrics for the year ending December 31, 2022. The measurement of the liability for contingent consideration is based on significant inputs that are not observable in the market, and are therefore classified as Level 3 inputs. Examples of utilized unobservable inputs are estimated future revenues and earnings of the acquired business and an applicable discount rate. The estimate of the liability may fluctuate if there are changes in the forecast of the acquired business' future revenues and earnings, as a result of actual levels achieved, or in the discount rate used to determine the present value of contingent future cash flows. All subsequent remeasurements from the initial estimate at the time of acquisition are recorded in other, net in our condensed consolidated statements of operations, as described in Note N. The fair value of the liability was estimated to be $28 million and $24 million as of March 31, 2022 and December 31, 2021, respectively, using probability weighted discounted cash flows and a discount rate that reflects the uncertainty surrounding the expected outcomes, which we believe is appropriate and representative of a market participant assumption. 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 March 31, 2022 was approximately $3.1 billion, compared with the aggregate carrying value of $3.2 billion. The aggregate estimated market value of our short-term and long-term debt at December 31, 2021 was approximately $3.2 billion, compared with the aggregate carrying value of $3.0 billion.

WARRANTY LIABILITY

WARRANTY LIABILITY	3 Months Ended
	Mar. 31, 2022
Product Warranties Disclosures [Abstract]
WARRANTY LIABILITY	WARRANTY LIABILITY Changes in our warranty liability were as follows, in millions: Three Months Ended Twelve Months Ended December 31, 2021 Balance at January 1 $ 80 $ 83 Accruals for warranties issued during the period 9 38 Accruals related to pre-existing warranties 1 (8) Settlements made (in cash or kind) during the period (8) (31) Other, net (including currency translation and acquisitions) — (2) Balance at end of period $ 82 $ 80

DEBT

DEBT	3 Months Ended
	Mar. 31, 2022
Debt Disclosure [Abstract]
DEBT	DEBTOn March 4, 2021, we issued $600 million of 1.500% Notes due February 15, 2028, $600 million of 2.000% Notes due February 15, 2031 and $300 million of 3.125% Notes due February 15, 2051. We received proceeds of $1,495 million, net of discount, for the issuance of these Notes. The Notes are senior indebtedness and are redeemable at our option at the applicable redemption price. On March 22, 2021, proceeds from the debt issuances, together with cash on hand, were used to repay and early retire our $326 million 5.950% Notes due March 15, 2022, $500 million 4.450% Notes due April 1, 2025, and $500 million 4.375% Notes due April 1, 2026. In connection with these early retirements, we incurred a loss on debt extinguishment of $168 million for the three-month period ended March 31, 2021, which was recorded as interest expense in the condensed consolidated statement of operations. I. DEBT (Continued) On March 13, 2019, we entered into a credit agreement (the “2019 Credit Agreement”) with an aggregate commitment of $1.0 billion and a maturity date of March 13, 2024. On December 22, 2021, we amended the 2019 Credit Agreement with the bank group (the "Amended Credit Agreement"). The 2019 Credit Agreement was amended to (i) expand the “Agreed Currencies” for which loans thereunder may be denominated outside of the swingline facility to include British Pounds Sterling and Canadian Dollars, together with their applicable interest rate benchmark, (ii) replace the London Interbank Offering Rate (“LIBOR”) with the Euro Interbank Offered Rate (“EURIBOR”) as the interest rate benchmark for purposes of loans denominated in Euros and (iii) provide mechanics for the replacement of a benchmark for an applicable Agreed Currency upon the occurrence of certain specified events. Under the Amended Credit Agreement, the replacement reference interest rate benchmark for loans denominated in U.S. dollars upon the eventual discontinuation of LIBOR will have a benchmark adjustment applied based on its historical relationship to LIBOR, which can be either the term Secured Overnight Financing Rate (“SOFR”) plus a spread, daily simple SOFR plus a spread, or another alternative interest rate index selected by the Administrative Agent and us. Under the Amended 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. The Amended 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 Amended Credit Agreement reduce our borrowing capacity. At March 31, 2022, we had no outstanding standby letters of credit under the Amended Credit Agreement. Revolving credit loans denominated in U.S. Dollars bear interest under the Amended Credit Agreement at 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) adjusted LIBO Rate plus 1.0%; plus an applicable margin based upon our then-applicable corporate credit ratings. Foreign currency revolving credit loans denominated in Canadian Dollars bear interest under the Amended Credit Agreement at a rate per annum equal to the greater of (i) the rate equal to the PRIMCAN Index rate and (ii) the CDOR Rate for a one month interest period, plus 1.0%; plus an applicable margin based upon our then-applicable corporate credit ratings. Foreign currency revolving credit loans denominated in Pounds Sterling bear interest under the Amended Credit Agreement at a rate per annum equal to the Daily Simple SONIA plus 0.0326%. Foreign currency revolving credit loans denominated in Euros bear interest at the adjusted EURIBOR Rate, plus an applicable margin based upon our then-applicable corporate credit ratings. The various benchmarks are subject to applicable floors as specified in the Amended Credit Agreement. The Amended Credit Agreement also provides mechanics for the replacement of a benchmark upon the occurrence of certain specified events. The Amended 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. In order for us to borrow under the Amended Credit Agreement, there must not be any default in our covenants in the Amended Credit Agreement (i.e., in addition to the two financial covenants, principally limitations on subsidiary debt, negative pledge restrictions, legal compliance requirements and maintenance of properties and insurance) and our representations and warranties in the Amended Credit Agreement must be true in all material respects on the date of borrowing (i.e., principally no material adverse change or litigation likely to result in a material adverse change, since December 31, 2018, no material ERISA or environmental non-compliance, and no material tax deficiency). We were in compliance with all covenants and $263 million was borrowed and outstanding at a weighted average interest rate of 1.5798% at March 31, 2022. I. DEBT (Concluded) Subsequent Events On April 26, 2022, we entered into a revolving credit agreement (the “2022 Credit Agreement”) with an aggregate commitment of $1.0 billion and a maturity date of April 26, 2027. Under the 2022 Credit Agreement, the swingline loans borrowing capacity increased to $125 million. All other material terms are substantially the same as the Amended Credit Agreement as described above, including the two financial covenants. Upon entry into the 2022 Credit Agreement, our 2019 Credit Agreement dated March 13, 2019, as amended, with an aggregate commitment of $1.0 billion, was terminated. On April 26, 2022, we entered into a 364-day $500 million senior unsecured delayed draw term loan due April 26, 2023 with a syndicate of lenders. The senior unsecured term loan and commitments thereunder are subject to prepayment or termination at our option and the loans will bear interest at SOFR plus a spread adjustment and 0.70%. The covenants are substantially the same as those in the 2022 Credit Agreement.

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	3 Months Ended
	Mar. 31, 2022
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 March 31, 2022, outstanding stock-based incentives were in the form of restricted stock units, performance restricted stock units, stock options, long-term stock awards and phantom stock awards. Pre-tax compensation expense for these stock-based incentives was as follows, in millions: Three Months Ended March 31, 2022 2021 Restricted stock units $ 19 $ 19 Performance restricted stock units 1 2 Stock options 5 4 Long-term stock awards 2 3 Phantom stock awards — 2 Total $ 27 $ 30 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. We granted 581,660 restricted stock units in the three-month period ended March 31, 2022 with a weighted average grant date fair value of $59 per share. J. STOCK-BASED COMPENSATION (Continued) Our restricted stock unit activity was as follows, units in millions: Three Months Ended March 31, 2022 2021 Unvested restricted stock units at January 1 1 — Weighted average grant date fair value $ 54 $ 47 Restricted stock units granted 1 1 Weighted average grant date fair value $ 59 $ 56 Restricted stock units vested 1 — Weighted average grant date fair value $ 53 $ 48 Restricted stock units forfeited — — Weighted average grant date fair value $ 55 $ 53 Unvested restricted stock units at March 31 1 1 Weighted average grant date fair value $ 57 $ 53 At March 31, 2022 and 2021, there was $30 million and $23 million, respectively, of unrecognized compensation expense related to unvested restricted stock units; such units had a weighted average remaining vesting period of two years at both March 31, 2022 and 2021. The total market value (at the vesting date) of restricted stock units which vested was $18 million and $7 million during the three-month periods ended March 31, 2022 and 2021, respectively. 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 three-month period ended March 31, 2022, we granted 91,820 performance restricted stock units with a grant date fair value of approximately $55 per share and 167,903 shares were issued. No performance restricted stock units were forfeited during the three-month period ended March 31, 2022. During the three-month period ended March 31, 2021, we granted 85,360 performance restricted stock units with a grant date fair value of approximately $53 per share and 104,757 shares were issued. No performance restricted stock units were forfeited during the three-month period ended March 31, 2021. Stock Options. Stock options are granted to certain key employees. We granted 337,790 shares of stock options in the three-month period ended March 31, 2022 with a grant date weighted average exercise price of approximately $59 per share. J. STOCK-BASED COMPENSATION (Continued) Our stock option activity was as follows, shares in millions: Three Months Ended March 31, 2022 2021 Option shares outstanding, January 1 3 2 Weighted average exercise price $ 37 $ 33 Option shares granted — 1 Weighted average exercise price $ 59 $ 56 Option shares exercised — — Aggregate intrinsic value on date of exercise (A) $ — $ — Weighted average exercise price $ 38 $ — Option shares forfeited — — Weighted average exercise price $ 37 $ 11 Option shares outstanding, March 31 3 3 Weighted average exercise price $ 39 $ 36 Weighted average remaining option term (in years) 6 7 Option shares vested and expected to vest, March 31 3 3 Weighted average exercise price $ 39 $ 36 Aggregate intrinsic value (A) $ 40 million $ 65 million Weighted average remaining option term (in years) 6 6 Option shares exercisable (vested), March 31 2 2 Weighted average exercise price $ 34 $ 30 Aggregate intrinsic value (A) $ 36 million $ 51 million Weighted average remaining option term (in years) 5 5 (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. At March 31, 2022 and 2021, there was $4 million and $6 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 two years at both March 31, 2022 and 2021. 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: Three Months Ended March 31, 2022 2021 Weighted average grant date fair value $ 14.66 $ 13.61 Risk-free interest rate 1.90 % 0.75 % Dividend yield 1.89 % 1.67 % Volatility factor 29.00 % 30.00 % Expected option life 6 years 6 years J. STOCK-BASED COMPENSATION (Concluded) 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. We did not grant shares of long-term stock awards in the three-month periods ended March 31, 2022 and 2021. Our long-term stock award activity was as follows, shares in millions: Three Months Ended March 31, 2022 2021 Unvested stock award shares at January 1 1 1 Weighted average grant date fair value $ 37 $ 36 Stock award shares vested 1 — Weighted average grant date fair value $ 37 $ 34 Stock award shares forfeited — — Weighted average grant date fair value $ 37 $ 37 Unvested stock award shares at March 31 — 1 Weighted average grant date fair value $ 38 $ 37 At March 31, 2022 and 2021, there was $8 million and $18 million, respectively, of total unrecognized compensation expense related to unvested stock awards; such awards had a weighted average remaining vesting period of two years at both March 31, 2022 and 2021. The total market value (at the vesting date) of stock award shares which vested was $20 million and $26 million during the three-month periods ended March 31, 2022 and 2021, respectively.

EMPLOYEE RETIREMENT PLANS

EMPLOYEE RETIREMENT PLANS	3 Months Ended
	Mar. 31, 2022
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, net, in our condensed consolidated statements of operations. Net periodic pension cost for our defined-benefit pension plans was as follows, in millions: Three Months Ended March 31, 2022 2021 Qualified Non-Qualified Qualified Non-Qualified Service cost $ 1 $ — $ 1 $ — Interest cost 1 1 8 1 Expected return on plan assets (1) — (4) — Amortization of net loss 1 1 6 1 Net periodic pension cost $ 2 $ 2 $ 11 $ 2 In December 2019, our Board of Directors approved the termination of our qualified domestic defined-benefit pension plans and in the second quarter of 2021, we settled these pension plans.

RECLASSIFICATIONS FROM ACCUMULA

RECLASSIFICATIONS FROM ACCUMULATED OTHER COMPREHENSIVE INCOME	3 Months Ended
	Mar. 31, 2022
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]
RECLASSIFICATIONS FROM ACCUMULATED OTHER COMPREHENSIVE INCOME	RECLASSIFICATIONS FROM ACCUMULATED OTHER COMPREHENSIVE INCOME The reclassifications from accumulated other comprehensive income to the condensed consolidated statements of operations were as follows, in millions: Amounts Reclassified Accumulated Other Comprehensive Income Three Months Ended March 31, Statement of Operations Line Item 2022 2021 Amortization of defined-benefit pension and other post-retirement benefits: Actuarial losses, net $ 2 $ 7 Other, net Tax (benefit) (1) (2) Net of tax $ 1 $ 5 Interest rate swaps (A) $ — $ 2 Interest expense Tax expense — 5 Net of tax $ — $ 7 (A) Upon full repayment and retirement of the 5.950% Notes due March 15, 2022, in the first quarter of 2021, we recognized the remaining interest rate swap loss and related disproportionate tax expense.

SEGMENT INFORMATION

SEGMENT INFORMATION	3 Months Ended
	Mar. 31, 2022
Segment Reporting [Abstract]
SEGMENT INFORMATION	SEGMENT INFORMATION Information by segment and geographic area was as follows, in millions: Three Months Ended March 31, 2022 2021 2022 2021 Net Sales (A) Operating Profit Operations by segment: Plumbing Products $ 1,359 $ 1,249 $ 228 $ 252 Decorative Architectural Products 842 721 155 142 Total $ 2,201 $ 1,970 $ 383 $ 394 Operations by geographic area: North America $ 1,734 $ 1,529 $ 300 $ 308 International, principally Europe 467 441 83 86 Total $ 2,201 $ 1,970 383 394 General corporate expense, net (30) (29) Operating profit 353 365 Other income (expense), net (26) (208) Income before income taxes $ 327 $ 157 (A) Inter-segment sales were not material.

OTHER INCOME (EXPENSE), NET

OTHER INCOME (EXPENSE), NET	3 Months Ended
	Mar. 31, 2022
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 March 31, 2022 2021 Foreign currency transaction gains $ 4 $ — Contingent consideration (A) (4) — Gain on sale of business (B) 2 — Net periodic pension and post-retirement benefit cost (2) (11) Dividend income — 3 Equity investment income, net — 2 Other items, net (1) — Total other, net $ (1) $ (6) (A) In the first quarter of 2022, we recognized $4 million of expense from the revaluation of contingent consideration related to a prior acquisition. Refer to Note G for additional information. (B) Represents a pre-tax post-closing gain related to the finalization of working capital items related to the divestiture of Hüppe.

INCOME PER COMMON SHARE

INCOME PER COMMON SHARE	3 Months Ended
	Mar. 31, 2022
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 March 31, 2022 2021 Numerator (basic and diluted): Net income $ 233 $ 94 Less: Allocation to redeemable noncontrolling interest (1) 6 Less: Allocation to unvested restricted stock awards — — Net income attributable to common shareholders $ 234 $ 88 Denominator: Basic common shares (based upon weighted average) 239 256 Add: Stock option dilution 2 1 Diluted common shares 241 257 For the three-month period ended March 31, 2022, we allocated dividends and undistributed earnings to the unvested restricted stock awards. For the three-month period ended March 31, 2021, we allocated undistributed earnings to the unvested restricted stock awards. Additionally, 265,000 and 188,000 common shares for the three-month periods ended March 31, 2022 and 2021, respectively, related to stock options were excluded from the computation of diluted income per common share due to their antidilutive effect. Effective February 10, 2021, 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, replacing the previous Board of Directors authorization established in 2019. We repurchased and retired 6.1 million shares of our common stock in the three-month period ended March 31, 2022 for approximately $364 million. This included 0.6 million shares to offset the dilutive impact of restricted stock units granted in the three-month period ended March 31, 2022. At March 31, 2022, we had $764 million remaining under the 2021 authorization. On the basis of amounts paid (declared), cash dividends per common share were $0.280 ($0.280) for the three-month period ended March 31, 2022 and $0.140 for the three-month period ended March 31, 2021, respectively.

OTHER COMMITMENTS AND CONTINGEN

OTHER COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 31, 2022
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, product compliance and insurance coverage. We believe we have adequate defenses in these matters. We are also subject to product safety regulations, product recalls and direct claims for product liabilities. We believe the likelihood that the outcome of these claims, litigation and product safety 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 or penalties, 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	3 Months Ended
	Mar. 31, 2022
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXESOur effective tax rate was 23 percent and 27 percent for the three-month periods ended March 31, 2022 and 2021, respectively. The decrease in the rate was primarily due to a $5 million income tax expense from the elimination of a disproportionate tax effect from accumulated other comprehensive income, relating to our interest rate swap, following the retirement of the related debt in March 2021 and a $5 million increase to income tax expense from a loss on the termination of our qualified domestic defined-benefit pension plans in 2021 providing no tax benefit in certain jurisdictions.

ACCOUNTING POLICIES (Policies)

ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2022
Accounting Policies [Abstract]
Recently Adopted Accounting Pronouncements	Recently Adopted Accounting Pronouncements. In August 2020, the Financial Accounting Standards Board ("FASB") issued ASU 2020-06, “Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity.” ASU 2020-06 simplifies the accounting for convertible instruments by reducing the number of accounting models for convertible debt instruments and convertible preferred stock. We adopted this standard for annual periods beginning January 1, 2022. The adoption of this new standard did not impact our financial position or results of operations. In October 2021, the FASB issued ASU 2021-08, “Business Combinations (Topic 805): Accounting for Acquired Contract Assets and Contract Liabilities from Contracts with Customers.” ASU 2021-08 requires contract assets and contract liabilities acquired in a business combination to be recognized in accordance with Topic 606 as if the acquirer had originated the contracts. We adopted this standard for annual periods beginning January 1, 2022. The adoption of this new standard did not impact our financial position or results of operations.

REVENUE (Tables)

REVENUE (Tables)	3 Months Ended
	Mar. 31, 2022
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 March 31, 2022 Plumbing Products Decorative Architectural Products Total Primary geographic markets: North America $ 892 $ 842 $ 1,734 International, principally Europe 467 — 467 Total $ 1,359 $ 842 $ 2,201 Three Months Ended March 31, 2021 Plumbing Products Decorative Architectural Products Total Primary geographic markets: North America $ 808 $ 721 $ 1,529 International, principally Europe 441 — 441 Total $ 1,249 $ 721 $ 1,970
Financing Receivable, Allowance for Credit Loss	Changes in the allowance for credit losses deducted from accounts receivable were as follows, in millions: Three Months Ended Twelve Months Ended December 31, 2021 Balance at January 1 $ 6 $ 7 Provision for expected credit losses during the period 2 1 Write-offs charged against the allowance (1) (2) Recoveries of amounts previously written off 1 1 Other (A) — (1) Balance at end of period $ 8 $ 6 (A) As a result of Hüppe being divested in May 2021, $1 million for the year end December 31, 2021 was removed from allowance for credit losses.

GOODWILL AND OTHER INTANGIBLE_2

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)	3 Months Ended
	Mar. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of changes in carrying amount of goodwill	Goodwill at March 31, 2022, by segment, was as follows, in millions: Gross Goodwill At March 31, 2022 Accumulated Net Goodwill At March 31, 2022 Plumbing Products $ 620 $ (301) $ 319 Decorative Architectural Products 366 (120) 246 Total $ 986 $ (421) $ 565 The changes in the carrying amount of goodwill for the three-month period ended March 31, 2022, by segment, were as follows, in millions: Gross Goodwill At December 31, 2021 Accumulated Net Goodwill At December 31, 2021 Other (B) Net Goodwill At March 31, 2022 Plumbing Products (A) $ 623 $ (301) $ 322 $ (3) $ 319 Decorative Architectural Products 366 (120) 246 — 246 Total $ 989 $ (421) $ 568 $ (3) $ 565 (A) As a result of Hüppe being divested in May 2021, both gross goodwill and accumulated impairment losses for the Plumbing Products segment were reduced by $39 million. (B) Other consists of the effect of foreign currency translation.

WARRANTY LIABILITY (Tables)

WARRANTY LIABILITY (Tables)	3 Months Ended
	Mar. 31, 2022
Product Warranties Disclosures [Abstract]
Schedule of changes in the Company's warranty liability	Changes in our warranty liability were as follows, in millions: Three Months Ended Twelve Months Ended December 31, 2021 Balance at January 1 $ 80 $ 83 Accruals for warranties issued during the period 9 38 Accruals related to pre-existing warranties 1 (8) Settlements made (in cash or kind) during the period (8) (31) Other, net (including currency translation and acquisitions) — (2) Balance at end of period $ 82 $ 80

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	3 Months Ended
	Mar. 31, 2022
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 for these stock-based incentives was as follows, in millions: Three Months Ended March 31, 2022 2021 Restricted stock units $ 19 $ 19 Performance restricted stock units 1 2 Stock options 5 4 Long-term stock awards 2 3 Phantom stock awards — 2 Total $ 27 $ 30
Schedule of restricted stock unit activity	Our restricted stock unit activity was as follows, units in millions: Three Months Ended March 31, 2022 2021 Unvested restricted stock units at January 1 1 — Weighted average grant date fair value $ 54 $ 47 Restricted stock units granted 1 1 Weighted average grant date fair value $ 59 $ 56 Restricted stock units vested 1 — Weighted average grant date fair value $ 53 $ 48 Restricted stock units forfeited — — Weighted average grant date fair value $ 55 $ 53 Unvested restricted stock units at March 31 1 1 Weighted average grant date fair value $ 57 $ 53
Schedule of the Company's stock option activity	Our stock option activity was as follows, shares in millions: Three Months Ended March 31, 2022 2021 Option shares outstanding, January 1 3 2 Weighted average exercise price $ 37 $ 33 Option shares granted — 1 Weighted average exercise price $ 59 $ 56 Option shares exercised — — Aggregate intrinsic value on date of exercise (A) $ — $ — Weighted average exercise price $ 38 $ — Option shares forfeited — — Weighted average exercise price $ 37 $ 11 Option shares outstanding, March 31 3 3 Weighted average exercise price $ 39 $ 36 Weighted average remaining option term (in years) 6 7 Option shares vested and expected to vest, March 31 3 3 Weighted average exercise price $ 39 $ 36 Aggregate intrinsic value (A) $ 40 million $ 65 million Weighted average remaining option term (in years) 6 6 Option shares exercisable (vested), March 31 2 2 Weighted average exercise price $ 34 $ 30 Aggregate intrinsic value (A) $ 36 million $ 51 million Weighted average remaining option term (in years) 5 5 (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: Three Months Ended March 31, 2022 2021 Weighted average grant date fair value $ 14.66 $ 13.61 Risk-free interest rate 1.90 % 0.75 % Dividend yield 1.89 % 1.67 % Volatility factor 29.00 % 30.00 % Expected option life 6 years 6 years
Schedule of the Company's long-term stock award activity	Our long-term stock award activity was as follows, shares in millions: Three Months Ended March 31, 2022 2021 Unvested stock award shares at January 1 1 1 Weighted average grant date fair value $ 37 $ 36 Stock award shares vested 1 — Weighted average grant date fair value $ 37 $ 34 Stock award shares forfeited — — Weighted average grant date fair value $ 37 $ 37 Unvested stock award shares at March 31 — 1 Weighted average grant date fair value $ 38 $ 37

EMPLOYEE RETIREMENT PLANS (Tabl

EMPLOYEE RETIREMENT PLANS (Tables)	3 Months Ended
	Mar. 31, 2022
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, net, in our condensed consolidated statements of operations. Net periodic pension cost for our defined-benefit pension plans was as follows, in millions: Three Months Ended March 31, 2022 2021 Qualified Non-Qualified Qualified Non-Qualified Service cost $ 1 $ — $ 1 $ — Interest cost 1 1 8 1 Expected return on plan assets (1) — (4) — Amortization of net loss 1 1 6 1 Net periodic pension cost $ 2 $ 2 $ 11 $ 2

RECLASSIFICATIONS FROM ACCUMU_2

RECLASSIFICATIONS FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables)	3 Months Ended
	Mar. 31, 2022
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 income to the condensed consolidated statements of operations were as follows, in millions: Amounts Reclassified Accumulated Other Comprehensive Income Three Months Ended March 31, Statement of Operations Line Item 2022 2021 Amortization of defined-benefit pension and other post-retirement benefits: Actuarial losses, net $ 2 $ 7 Other, net Tax (benefit) (1) (2) Net of tax $ 1 $ 5 Interest rate swaps (A) $ — $ 2 Interest expense Tax expense — 5 Net of tax $ — $ 7 (A) Upon full repayment and retirement of the 5.950% Notes due March 15, 2022, in the first quarter of 2021, we recognized the remaining interest rate swap loss and related disproportionate tax expense.

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	3 Months Ended
	Mar. 31, 2022
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 March 31, 2022 2021 2022 2021 Net Sales (A) Operating Profit Operations by segment: Plumbing Products $ 1,359 $ 1,249 $ 228 $ 252 Decorative Architectural Products 842 721 155 142 Total $ 2,201 $ 1,970 $ 383 $ 394 Operations by geographic area: North America $ 1,734 $ 1,529 $ 300 $ 308 International, principally Europe 467 441 83 86 Total $ 2,201 $ 1,970 383 394 General corporate expense, net (30) (29) Operating profit 353 365 Other income (expense), net (26) (208) Income before income taxes $ 327 $ 157 (A) Inter-segment sales were not material.

OTHER INCOME (EXPENSE), NET (Ta

OTHER INCOME (EXPENSE), NET (Tables)	3 Months Ended
	Mar. 31, 2022
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 March 31, 2022 2021 Foreign currency transaction gains $ 4 $ — Contingent consideration (A) (4) — Gain on sale of business (B) 2 — Net periodic pension and post-retirement benefit cost (2) (11) Dividend income — 3 Equity investment income, net — 2 Other items, net (1) — Total other, net $ (1) $ (6) (A) In the first quarter of 2022, we recognized $4 million of expense from the revaluation of contingent consideration related to a prior acquisition. Refer to Note G for additional information. (B) Represents a pre-tax post-closing gain related to the finalization of working capital items related to the divestiture of Hüppe.

INCOME PER COMMON SHARE (Tables

INCOME PER COMMON SHARE (Tables)	3 Months Ended
	Mar. 31, 2022
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 March 31, 2022 2021 Numerator (basic and diluted): Net income $ 233 $ 94 Less: Allocation to redeemable noncontrolling interest (1) 6 Less: Allocation to unvested restricted stock awards — — Net income attributable to common shareholders $ 234 $ 88 Denominator: Basic common shares (based upon weighted average) 239 256 Add: Stock option dilution 2 1 Diluted common shares 241 257

ACQUISITIONS (Details)

ACQUISITIONS (Details) € in Millions, $ in Millions	3 Months Ended
	Sep. 30, 2021USD ($)	Mar. 31, 2021USD ($)	Mar. 31, 2021EUR (€)	Dec. 31, 2020USD ($)	Mar. 31, 2022USD ($)	Dec. 31, 2021USD ($)	Jan. 04, 2021
Easy Sanitary Solutions B.V.
Business Acquisition [Line Items]
Noncontrolling interest ownership							24.90%
Easy Sanitary Solutions B.V.
Business Acquisition [Line Items]
Payments to acquire businesses		$ 52
Finite-lived intangible assets acquired		$ 32
Weighted average useful life (in years)		10 years	10 years
Goodwill, acquired during period		$ 35
Equity interest acquired							75.10%
Consideration transferred		58	€ 47
Liabilities incurred		$ 6
Liabilities incurred, payment period		2 years	2 years
Kraus USA Inc
Business Acquisition [Line Items]
Payments to acquire businesses				$ 103
Finite-lived intangible assets acquired				$ 49
Weighted average useful life (in years)				10 years
Goodwill, acquired during period				$ 20
Contingent consideration, liability				8	$ 28	$ 24
Increase in other indefinite-lived intangible assets				25
Decrease to goodwill		$ 1
Kraus USA Inc | Maximum
Business Acquisition [Line Items]
Contingent consideration, liability				$ 50
Steamist, Inc.
Business Acquisition [Line Items]
Payments to acquire businesses	$ 56
Finite-lived intangible assets acquired	$ 31
Weighted average useful life (in years)	11 years
Goodwill, acquired during period	$ 29

DIVESTITURES - Narrative (Detai

DIVESTITURES - Narrative (Details) $ in Millions	3 Months Ended
	Mar. 31, 2022USD ($)
Discontinued Operations, Disposed of by Sale | Hüppe
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain on disposal of discontinued operations, net	$ 2

REVENUE - Disaggregation of Rev

REVENUE - Disaggregation of Revenue (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Disaggregation of Revenue [Line Items]
Net sales	$ 2,201	$ 1,970
Plumbing Products
Disaggregation of Revenue [Line Items]
Net sales	1,359	1,249
Decorative Architectural Products
Disaggregation of Revenue [Line Items]
Net sales	842	721
North America
Disaggregation of Revenue [Line Items]
Net sales	1,734	1,529
North America | Plumbing Products
Disaggregation of Revenue [Line Items]
Net sales	892	808
North America | Decorative Architectural Products
Disaggregation of Revenue [Line Items]
Net sales	842	721
International, principally Europe
Disaggregation of Revenue [Line Items]
Net sales	467	441
International, principally Europe | Plumbing Products
Disaggregation of Revenue [Line Items]
Net sales	467	441
International, principally Europe | Decorative Architectural Products
Disaggregation of Revenue [Line Items]
Net sales	$ 0	$ 0

REVENUE - Narrative (Details)

REVENUE - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Revenue from Contract with Customer [Abstract]
Contract with customer, asset, gross, current	$ 2		$ 1
Contract with customer, liability	28		$ 67
Performance obligation satisfied in previous period	$ 5	$ 1

REVENUE - Changes in the allowa

REVENUE - Changes in the allowance for credit losses (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at January 1	$ 6	$ 7
Provision for expected credit losses during the period	2	1
Write-offs charged against the allowance	(1)	(2)
Recoveries of amounts previously written off	1	1
Other	0	1
Balance at end of period	$ 8	6
Hüppe
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Financing receivable, allowance for credit losses, disposal group		$ 1

DEPRECIATION AND AMORTIZATION (

DEPRECIATION AND AMORTIZATION (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Depreciation, Depletion and Amortization [Abstract]
Depreciation and amortization expense	$ 35	$ 43

GOODWILL AND OTHER INTANGIBLE_3

GOODWILL AND OTHER INTANGIBLE ASSETS - Goodwill Rollforward (Details) - USD ($) $ in Millions	1 Months Ended	3 Months Ended
	May 31, 2021	Mar. 31, 2022	Dec. 31, 2021
Goodwill [Line Items]
Gross goodwill		$ 986	$ 989
Accumulated Impairment Losses		(421)	(421)
Net goodwill		565	568
Goodwill [Roll Forward]
Beginning balance		568
Other		(3)
Ending balance		565
Plumbing Products
Goodwill [Line Items]
Gross goodwill		620	623
Accumulated Impairment Losses		(301)	(301)
Net goodwill		319	322
Goodwill [Roll Forward]
Beginning balance		322
Other		(3)
Ending balance		319
Goodwill, written off related to sale of business unit	$ 39
Decorative Architectural Products
Goodwill [Line Items]
Gross goodwill		366	366
Accumulated Impairment Losses		(120)	(120)
Net goodwill		246	$ 246
Goodwill [Roll Forward]
Beginning balance		246
Other		0
Ending balance		$ 246

GOODWILL AND OTHER INTANGIBLE_4

GOODWILL AND OTHER INTANGIBLE ASSETS - Narrative (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Other indefinite-lived intangible assets	$ 109	$ 109
Carrying value of definite-lived intangible assets	270	279
Accumulated amortization	$ 83	$ 75

FAIR VALUE OF FINANCIAL INVES_2

FAIR VALUE OF FINANCIAL INVESTMENTS (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Kraus USA Inc
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Contingent consideration, undiscounted amount, maximum	$ 50
Contingent consideration, liability	28	$ 24	$ 8
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	3,200
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	$ 3,200	$ 3,000

WARRANTY LIABILITY (Details)

WARRANTY LIABILITY (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward]
Balance at the beginning of the period	$ 80	$ 83
Accruals for warranties issued during the period	9	38
Accruals related to pre-existing warranties	1	(8)
Settlements made (in cash or kind) during the period	(8)	(31)
Other, net (including currency translation and acquisitions)	0	(2)
Balance at the end of the period	$ 82	$ 80

DEBT (Details)

DEBT (Details)	Apr. 26, 2022USD ($)	Dec. 21, 2021	Mar. 22, 2021USD ($)	Mar. 04, 2021USD ($)	Mar. 13, 2019USD ($)	Mar. 31, 2022USD ($)	Mar. 31, 2021USD ($)
Debt
Proceeds from issuance of debt				$ 1,495,000,000
Repayments and retirement of notes						$ 0	$ 1,326,000,000
Loss on extinguishment of debt			$ (168,000,000)
1.5 Notes and Debentures Due February 15, 2028
Debt
Long-term debt issued				$ 600,000,000
Interest rate				1.50%
2.0% Notes and Debentures Due February 15, 2031
Debt
Long-term debt issued				$ 600,000,000
Interest rate				2.00%
3.125 Notes and Debentures Due February 15, 2051
Debt
Long-term debt issued				$ 300,000,000
Interest rate				3.125%
5.95 Notes and Debentures Due March 15, 2022
Debt
Interest rate			5.95%				5.95%
Repayments and retirement of notes			$ 326,000,000
4.45 Notes and Debentures Due April 1, 2025
Debt
Interest rate			4.45%
Repayments and retirement of notes			$ 500,000,000
4.375 Notes and Debentures Due April 1, 2026
Debt
Interest rate			4.375%
Repayments and retirement of notes			$ 500,000,000
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						$ 263,000,000
Weighted average interest rate (as a percent)						1.5798%
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
Amended Credit Agreement | Federal funds effective rate
Debt
Interest rate, basis spread (as a percent)		0.50%
Amended Credit Agreement | Libor rate
Debt
Interest rate, basis spread (as a percent)		1.00%
Amended Credit Agreement | Canadian Interest Rate
Debt
Interest rate, basis spread (as a percent)		1.00%
Amended Credit Agreement | Daily Sterling Overnight Index Average
Debt
Interest rate, basis spread (as a percent)		0.0326%
Year 2022 Credit Agreement | Subsequent Event
Debt
Borrowing capacity, maximum	$ 1,000,000,000
Year 2022 Credit Agreement | Swingline loans | Subsequent Event
Debt
Borrowing capacity, maximum	125,000,000
Unsecured Term Loan | Subsequent Event
Debt
Debt instrument face amount	$ 500,000,000
Unsecured Term Loan | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Subsequent Event
Debt
Interest rate, basis spread (as a percent)	0.70%

STOCK-BASED COMPENSATION - Pre-

STOCK-BASED COMPENSATION - Pre-tax Compensation Expense (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Stock-based compensation
Pre-tax compensation expense	$ 27	$ 30
Restricted stock units
Stock-based compensation
Pre-tax compensation expense	19	19
Performance restricted stock units
Stock-based compensation
Pre-tax compensation expense	1	2
Stock options
Stock-based compensation
Pre-tax compensation expense	5	4
Long-term stock awards
Stock-based compensation
Pre-tax compensation expense	2	3
Phantom stock awards
Stock-based compensation
Pre-tax compensation expense	$ 0	$ 2

STOCK-BASED COMPENSATION - Narr

STOCK-BASED COMPENSATION - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)	337,790
Grant date intrinsic value (in dollars per share)	$ 59
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)	581,660	1,000,000
Granted (in dollars per share)	$ 59	$ 56
unrecognized compensation expense	$ 30	$ 23
Weighted average remaining vesting period	2 years	2 years
Total market value (at the vesting date) of stock award shares	$ 18	$ 7
Forfeited (in shares)	0	0
Long-term stock awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average remaining vesting period	2 years	2 years
Total market value (at the vesting date) of stock award shares	$ 20	$ 26
Forfeited (in shares)	0	0
Total unrecognized compensation expense	$ 8	$ 18
Performance restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Period for recognition	3 years
Performance restricted stock units | LTIP Program
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)	91,820	85,360
Granted (in dollars per share)	$ 55	$ 53
Shares issued in period (in shares)	167,903	104,757
Forfeited (in shares)	0	0
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average remaining vesting period	2 years	2 years
Granted (in shares)	0	1,000,000
Total unrecognized compensation expense	$ 4	$ 6

STOCK-BASED COMPENSATION - Rest

STOCK-BASED COMPENSATION - Restricted Stock Units Activity (Details) - $ / shares	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Long-term stock awards
Unvested stock award shares
Beginning balance (in shares)	1,000,000	1,000,000
Vested (in shares)	1,000,000	0
Forfeited (in shares)	0	0
Ending balance (in shares)	0	1,000,000
Weighted average grant date fair value
Nonvested, weighted average grant date fair value. beginning of period (in dollars per share)	$ 37	$ 36
Vested (in dollars per share)	37	34
Forfeited (in dollars per share)	37	37
Nonvested, weighted average grant date fair value. end of period (in dollars per share)	$ 38	$ 37
Restricted stock units
Unvested stock award shares
Beginning balance (in shares)	1,000,000	0
Granted (in shares)	581,660	1,000,000
Vested (in shares)	1,000,000	0
Forfeited (in shares)	0	0
Ending balance (in shares)	1,000,000	1,000,000
Weighted average grant date fair value
Nonvested, weighted average grant date fair value. beginning of period (in dollars per share)	$ 54	$ 47
Granted (in dollars per share)	59	56
Vested (in dollars per share)	53	48
Forfeited (in dollars per share)	55	53
Nonvested, weighted average grant date fair value. end of period (in dollars per share)	$ 57	$ 53

STOCK-BASED COMPENSATION - Stoc

STOCK-BASED COMPENSATION - Stock Options (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Shares
Granted (in shares)	337,790
Stock options
Shares
Outstanding at the beginning of the period (in shares)	3,000,000	2,000,000
Granted (in shares)	0	1,000,000
Exercised (in shares)	0	0
Forfeited (in shares)	0	0
Outstanding at the end of the period (in shares)	3,000,000	3,000,000
Exercisable at the end of the period (in shares)	2,000,000	2,000,000
Weighted average exercise price
Outstanding at the beginning of the period (in dollars per share)	$ 37	$ 33
Granted (in dollars per share)	59	56
Exercised (in dollars per share)	38	0
Forfeited (in dollars per share)	37	11
Outstanding at the end of the period (in dollars per share)	39	36
Exercisable at the end of the period (in dollars per share)	$ 34	$ 30
Aggregate intrinsic value
Exercised	$ 0	$ 0
Exercisable at the end of the period	$ 36	$ 51
Weighted average remaining option term
Outstanding at the end of the period	6 years	7 years
Vested and expected to vest at the end of the period	6 years	6 years
Exercisable at the end of the period	5 years	5 years
Vested and expected to vest at the end of the period (in shares)	3,000,000	3,000,000
Vested and expected to vest at the end of the period (in dollars per share)	$ 39	$ 36
Vested and expected to vest at the end of the period	$ 40	$ 65

STOCK-BASED COMPENSATION - Opti

STOCK-BASED COMPENSATION - Option Pricing Assumptions and Estimates (Details) - Stock options - $ / shares	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average grant date fair value (in dollars per share)	$ 14.66	$ 13.61
Risk-free interest rate (as a percent)	1.90%	0.75%
Dividend yield (as a percent)	1.89%	1.67%
Volatility factor (as a percent)	29.00%	30.00%
Expected option life	6 years	6 years

STOCK-BASED COMPENSATION - Long

STOCK-BASED COMPENSATION - Long-Term Stock Award (Details) - Long-term stock awards - $ / shares shares in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Unvested stock award shares
Beginning balance (in shares)	1	1
Vested (in shares)	1	0
Forfeited (in shares)	0	0
Ending balance (in shares)	0	1
Weighted average grant date fair value
Nonvested, weighted average grant date fair value. beginning of period (in dollars per share)	$ 37	$ 36
Vested (in dollars per share)	37	34
Forfeited (in dollars per share)	37	37
Nonvested, weighted average grant date fair value. end of period (in dollars per share)	$ 38	$ 37

EMPLOYEE RETIREMENT PLANS (Deta

EMPLOYEE RETIREMENT PLANS (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Qualified
Net periodic pension cost for the company's defined-benefit pension plans
Service cost	$ 1	$ 1
Interest cost	1	8
Expected return on plan assets	(1)	(4)
Amortization of net loss	1	6
Net periodic pension cost	2	11
Non-Qualified
Net periodic pension cost for the company's defined-benefit pension plans
Service cost	0	0
Interest cost	1	1
Expected return on plan assets	0	0
Amortization of net loss	1	1
Net periodic pension cost	$ 2	$ 2

RECLASSIFICATIONS FROM ACCUMU_3

RECLASSIFICATIONS FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Mar. 22, 2021
Reclassifications from accumulated other comprehensive (loss) income
Other, net	$ 26	$ 208
Tax (benefit)	75	43
Reclassifications, after tax	(252)	(114)
Interest expense	25	$ 202
5.95 Notes and Debentures Due March 15, 2022
Reclassifications from accumulated other comprehensive (loss) income
Interest rate		5.95%	5.95%
Reclassification out of Accumulated Other Comprehensive Income | Actuarial losses, net
Reclassifications from accumulated other comprehensive (loss) income
Other, net	2	$ 7
Tax (benefit)	(1)	(2)
Reclassifications, after tax	1	5
Reclassification out of Accumulated Other Comprehensive Income | Interest rate swaps | Interest Rate Swaps
Reclassifications from accumulated other comprehensive (loss) income
Tax (benefit)	0	5
Reclassifications, after tax	0	(7)
Interest expense	$ 0	$ 2

SEGMENT INFORMATION (Details)

SEGMENT INFORMATION (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Segment Information
Net sales	$ 2,201	$ 1,970
Operating Profit (Loss)	353	365
Other income (expense), net	(26)	(208)
Income before income taxes	327	157
North America
Segment Information
Net sales	1,734	1,529
International, principally Europe
Segment Information
Net sales	467	441
Plumbing Products
Segment Information
Net sales	1,359	1,249
Plumbing Products | North America
Segment Information
Net sales	892	808
Plumbing Products | International, principally Europe
Segment Information
Net sales	467	441
Decorative Architectural Products
Segment Information
Net sales	842	721
Decorative Architectural Products | North America
Segment Information
Net sales	842	721
Decorative Architectural Products | International, principally Europe
Segment Information
Net sales	0	0
Operating Segments
Segment Information
Net sales	2,201	1,970
Operating Profit (Loss)	383	394
Operating Segments | Plumbing Products
Segment Information
Net sales	1,359	1,249
Operating Profit (Loss)	228	252
Operating Segments | Decorative Architectural Products
Segment Information
Net sales	842	721
Operating Profit (Loss)	155	142
Geographic Areas
Segment Information
Net sales	2,201	1,970
Operating Profit (Loss)	383	394
Geographic Areas | North America
Segment Information
Net sales	1,734	1,529
Operating Profit (Loss)	300	308
Geographic Areas | International, principally Europe
Segment Information
Net sales	467	441
Operating Profit (Loss)	83	86
Corporate, Non-Segment
Segment Information
General corporate expense, net	$ (30)	$ (29)

OTHER INCOME (EXPENSE), NET (De

OTHER INCOME (EXPENSE), NET (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Other Income and Expenses [Abstract]
Foreign currency transaction gains	$ 4	$ 0
Contingent consideration	(4)	0
Gain on sale of business	2	0
Net periodic pension and post-retirement benefit cost	(2)	(11)
Dividend income	0	3
Equity investment income, net	0	2
Other items, net	(1)	0
Total other, net	$ (1)	$ (6)

INCOME PER COMMON SHARE - Sched

INCOME PER COMMON SHARE - Schedule of Earnings Per Share. Basic and Diluted (Details) - USD ($) shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Numerator (basic and diluted):
Net income	$ 233	$ 94
Less: Allocation to redeemable noncontrolling interest	(1)	6
Less: Allocation to unvested restricted stock awards	0	0
Net income attributable to common shareholders	$ 234	$ 88
Denominator:
Basic common shares (based upon weighted average) (in shares)	239	256
Add: Stock option dilution (in shares)	2	1
Diluted common shares (in shares)	241	257

INCOME PER COMMON SHARE - Narra

INCOME PER COMMON SHARE - Narrative (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Feb. 10, 2021
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Amount authorized for repurchase			$ 2,000
Stock repurchased during period (in shares)	6,100
Payments for repurchase of common stock	$ 364	$ 303
Remaining authorized repurchase amount	$ 764
Cash dividends per common share paid (in dollars per share)	$ 0.280	$ 0.140
Cash dividends per common share declared (in dollars per share)	$ 0.280
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)	265	188
Restricted stock units
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)	600

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Income Tax Disclosure [Abstract]
Effective tax rate (as a percent)	23.00%	27.00%
Income tax expense, elimination of disproportionate tax		$ 5
Income tax expense from anticipated loss		$ 5