Masco (MAS) 10-Q 24 Apr 24 2024 Q1 Quarterly report Financial data

Cover

Cover	3 Months Ended
	Mar. 31, 2024 shares
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2024
Current Fiscal Year End Date	--12-31
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	220,244,380
Entity Central Index Key	0000062996
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Current assets:
Cash and cash investments	$ 368	$ 634
Receivables	1,310	1,090
Inventories	1,059	1,022
Prepaid expenses and other	112	110
Total current assets	2,850	2,856
Property and equipment, net	1,111	1,121
Goodwill	598	604
Other intangible assets, net	367	377
Operating lease right-of-use assets	262	268
Other assets	148	139
Total assets	5,336	5,363
Current liabilities:
Accounts payable	899	840
Notes payable	52	3
Accrued liabilities	690	852
Total current liabilities	1,641	1,695
Long-term debt	2,945	2,945
Noncurrent operating lease liabilities	252	258
Other liabilities	340	349
Total liabilities	5,179	5,247
Commitments and contingencies (Note L)
Redeemable noncontrolling interest	0	18
Masco Corporation's shareholders' equity:
Common shares, par value $1 per share Authorized shares: 1,400,000,000; Issued and outstanding: 2024 – 220,200,000; 2023 – 220,600,000	220	221
Preferred shares authorized: 1,000,000; Issued and outstanding: 2024 and 2023 – None	0	0
Paid-in capital	0	0
Retained deficit	(527)	(596)
Accumulated other comprehensive income	231	249
Total Masco Corporation's shareholders' deficit	(75)	(126)
Noncontrolling interest	232	224
Total equity	157	98
Total liabilities and equity	$ 5,336	$ 5,363

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Mar. 31, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Common shares, 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)	220,200,000	220,600,000
Common shares, shares outstanding (in shares)	220,200,000	220,600,000
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
	Mar. 31, 2024	Mar. 31, 2023
Income Statement [Abstract]
Net sales	$ 1,926	$ 1,979
Cost of sales	1,241	1,310
Gross profit	685	669
Selling, general and administrative expenses	367	354
Operating profit	318	315
Other income (expense), net:
Interest expense	(25)	(28)
Other, net	(5)	(2)
Other income (expense), net	(30)	(30)
Income before income taxes	289	285
Income tax expense	60	64
Net income	229	221
Less: Net income attributable to noncontrolling interest	14	16
Net income attributable to Masco Corporation	$ 215	$ 205
Basic:
Net income, basic (in dollars per share)	$ 0.97	$ 0.91
Diluted:
Net income, diluted (in dollars per share)	$ 0.97	$ 0.90

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Statement of Comprehensive Income [Abstract]
Net income	$ 229	$ 221
Less: Net income attributable to noncontrolling interest	14	16
Net income attributable to Masco Corporation	215	205
Other comprehensive (loss) income, net of tax:
Cumulative translation adjustment	(24)	22
Other comprehensive (loss) income, net of tax	(24)	22
Less: Other comprehensive (loss) income attributable to noncontrolling interest	(6)	5
Other comprehensive (loss) income attributable to Masco Corporation	(18)	17
Total comprehensive income	205	243
Less: Total comprehensive income attributable to noncontrolling interest	8	21
Total comprehensive income attributable to Masco Corporation	$ 197	$ 222

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
CASH FLOWS FROM (FOR) OPERATING ACTIVITIES:
Cash provided by operations	$ 314	$ 286
Increase in receivables	(258)	(194)
(Increase) decrease in inventories	(44)	45
Decrease in accounts payable and accrued liabilities, net	(107)	(104)
Net cash (for) from operating activities	(94)	33
CASH FLOWS FROM (FOR) FINANCING ACTIVITIES:
Purchase of Company common stock	(145)	(53)
Cash dividends paid	(64)	(65)
Purchase of redeemable noncontrolling interest	(15)	0
Proceeds from revolving credit borrowings, net	49	210
Proceeds from the exercise of stock options	75	9
Employee withholding taxes paid on stock-based compensation	(33)	(20)
Decrease in debt, net	(1)	(3)
Net cash (for) from financing activities	(134)	78
CASH FLOWS FROM (FOR) INVESTING ACTIVITIES:
Capital expenditures	(31)	(61)
Other, net	(2)	2
Net cash for investing activities	(33)	(59)
Effect of exchange rate changes on cash and cash investments	(6)	6
CASH AND CASH INVESTMENTS:
(Decrease) increase for the period	(266)	58
At January 1	634	452
At March 31	$ 368	$ 510

CONSOLIDATED STATEMENTS OF SHAR

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) - USD ($) $ in Millions	Total	Common Shares ($1 par value)	Paid-In Capital	Retained (Deficit) Earnings	Accumulated Other Comprehensive Income (Loss)	Noncontrolling Interest
Beginning balance at Dec. 31, 2022	$ (262)	$ 225	$ 16	$ (947)	$ 226	$ 218
Increase (Decrease) in Stockholders' Equity
Total comprehensive income (loss)	243			205	17	21
Total comprehensive income (loss)	243
Shares issued	6	1	5
Shares retired:
Repurchased	(56)	(1)	(32)	(23)
Surrendered (non-cash)	(17)			(17)
Cash dividends declared	(65)			(65)
Stock-based compensation	11		11
Ending balance at Mar. 31, 2023	(140)	225	0	(847)	243	239
Beginning balance at Dec. 31, 2023	98	221	0	(596)	249	224
Increase (Decrease) in Stockholders' Equity
Total comprehensive income (loss)	205			215	(18)	8
Shares issued	56	2	54
Shares retired:
Repurchased	(148)	(2)	(77)	(68)
Surrendered (non-cash)	(14)			(13)
Cash dividends declared	(64)			(64)
Redemption of redeemable noncontrolling interest	4		4
Stock-based compensation	20		20
Ending balance at Mar. 31, 2024	$ 157	$ 220	$ 0	$ (527)	$ 231	$ 232

CONSOLIDATED STATEMENTS OF SH_2

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) (Parenthetical) - $ / shares	Mar. 31, 2024	Dec. 31, 2023	Mar. 31, 2023
Statement of Stockholders' Equity [Abstract]
Common shares, par value (in dollars per share)	$ 1	$ 1	$ 1

ACCOUNTING POLICIES

ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2024
Accounting Policies [Abstract]
ACCOUNTING POLICIES	A. 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, 2024, and our results of operations, comprehensive income (loss), cash flows and changes in shareholders' equity for the three months ended March 31, 2024 and 2023. The condensed consolidated balance sheet at December 31, 2023 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. Within the financial statements and tables presented, certain columns and rows may not add due to the use of rounded numbers for disclosure purposes. Recently Adopted Accounting Pronouncements. In November 2023, the Financial Accounting Standards Board ("FASB") issued ASU 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures,” which requires additional disclosures regarding an entity's reportable segments, particularly regarding significant segment expenses, as well as information relating to the chief operating decision maker. We adopted this standard on a retrospective basis for annual periods beginning January 1, 2024, and will adopt this standard for interim periods beginning in 2025. The adoption of this guidance will modify our annual disclosures in 2024, but will not have an impact on our financial position and results of operations. In March 2023, the FASB issued ASU 2023-02, "Investments – Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method,” which permits an entity to elect to account for their tax equity investments using the proportional amortization method if certain conditions are met, regardless of the tax credit program from which the income tax credits are received. We adopted this standard beginning January 1, 2024. The adoption of this new standard did not have an impact on our financial position or results of operations. In September 2022, the FASB issued ASU 2022-04, "Liabilities – Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations,” which requires that an entity that uses a supplier finance program in connection with the purchase of goods or services disclose information about the program’s nature, activity during the period, changes from period to period, and potential magnitude. We adopted this standard for annual periods on a retrospective basis, including interim periods within those annual periods, beginning January 1, 2023. We also adopted the amendment on rollforward information, which became effective prospectively for annual periods beginning January 1, 2024. The adoption of this guidance modified our disclosures and will modify our annual disclosures for the rollforward information in 2024, but did not have an impact on our financial position and results of operations. Recently Issued Accounting Pronouncements . In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures,” which requires additional income tax disclosures, particularly regarding the effective tax rate reconciliation and income taxes paid. ASU 2023-09 is effective on a prospective basis for annual periods beginning January 1, 2025, with early adoption permitted. The adoption of this guidance will modify our disclosures, but will not have an impact on our financial position and results of operations.

ACQUISITIONS

ACQUISITIONS	3 Months Ended
	Mar. 31, 2024
Business Combination and Asset Acquisition [Abstract]
ACQUISITIONS	B. ACQUISITIONS In the third quarter of 2023, we acquired all of the share capital of Sauna360 Group Oy (“Sauna360”) for approximately €124 million ($136 million), net of cash acquired. Sauna360 has a portfolio of products that includes traditional, infrared, and wood-burning saunas as well as steam showers. The business is included within the Plumbing Products segment. In connection with this acquisition, we recognized $22 million of indefinite-lived intangible assets, which is related to trademarks, and $45 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 16 years. We also recognized $60 million of goodwill, which is not tax deductible, and is related primarily to the expected synergies from combining the operations into our business. During the fourth quarter of 2023, we updated the allocation of the purchase price to certain identifiable assets and liabilities based on analysis of information as of the acquisition date, which resulted in a $1 million decrease to goodwill. The purchase price allocation for this acquisition is based on analysis of information as of the acquisition date that was available through March 31, 2024, and will be updated through the measurement period, if necessary. In the first quarter of 2021, our Hansgrohe SE subsidiary acquired a 75.1 percent equity interest in Easy Sanitary Solutions B.V. ("ESS"). The remaining 24.9 percent equity interest in ESS was subject to a call and put option that was exercisable by Hansgrohe SE or the sellers, respectively, any time after December 31, 2023. The redemption value of the call and put option was 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 were recorded as temporary equity in the condensed consolidated balance sheets. We elected to adjust the redeemable noncontrolling interest to its full redemption amount directly into retained deficit. In the first quarter of 2024, the sellers exercised their put option to sell the remaining 24.9 percent equity interest in ESS for €13 million ($15 million). The transaction was accounted for as an equity purchase transaction.

REVENUE

REVENUE	3 Months Ended
	Mar. 31, 2024
Revenue from Contract with Customer [Abstract]
REVENUE	C. REVENUE Our revenues are derived from sales to customers in the following geographic areas: North America and International, which are particularly in Europe. Net sales from these geographic areas, by segment, were as follows, in millions: Three Months Ended March 31, 2024 Plumbing Products Decorative Architectural Products Total Primary geographic areas: North America $ 792 $ 734 $ 1,526 International 400 — 400 Total $ 1,192 $ 734 $ 1,926 Three Months Ended March 31, 2023 Plumbing Products Decorative Architectural Products Total Primary geographic areas: North America $ 798 $ 757 $ 1,555 International 424 — 424 Total $ 1,222 $ 757 $ 1,979 We recognized an increase to revenue of $1 million for the three months ended March 31, 2023 related to performance obligations settled in previous years. C. REVENUE (Concluded) Our contract asset balance was $3 million at both March 31, 2024 and December 31, 2023. Our contract liability balance was $21 million and $45 million at March 31, 2024 and December 31, 2023, respectively. Changes in the allowance for credit losses deducted from accounts receivable were as follows, in millions: Three Months Ended March 31, 2024 Twelve Months Ended December 31, 2023 Balance at January 1 $ 11 $ 8 Provision for expected credit losses during the period — 7 Write-offs charged against the allowance (3) (6) Recoveries of amounts previously written off 1 1 Balance at end of period $ 9 $ 11

DEPRECIATION AND AMORTIZATION

DEPRECIATION AND AMORTIZATION	3 Months Ended
	Mar. 31, 2024
Depreciation, Depletion and Amortization [Abstract]
DEPRECIATION AND AMORTIZATION	D. DEPRECIATION AND AMORTIZATION Depreciation and amortization expense was $38 million and $35 million for the three months ended March 31, 2024 and 2023, respectively.

INVENTORIES

INVENTORIES	3 Months Ended
	Mar. 31, 2024
Inventory Disclosure [Abstract]
INVENTORIES	E. INVENTORIES The components of inventory were as follows, in millions: At March 31, 2024 At December 31, 2023 Finished goods $ 661 $ 630 Raw materials 306 298 Work in process 92 94 Total $ 1,059 $ 1,022

GOODWILL AND OTHER INTANGIBLE A

GOODWILL AND OTHER INTANGIBLE ASSETS	3 Months Ended
	Mar. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL AND OTHER INTANGIBLE ASSETS	F. GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill at March 31, 2024, by segment, was as follows, in millions: Gross Goodwill At March 31, 2024 Accumulated Impairment Losses Net Goodwill At March 31, 2024 Plumbing Products $ 671 $ (301) $ 371 Decorative Architectural Products 366 (139) 227 Total $ 1,037 $ (440) $ 598 The changes in the carrying amount of goodwill for the three months ended March 31, 2024, by segment, were as follows, in millions: Gross Goodwill At December 31, 2023 Accumulated Impairment Losses Net Goodwill At December 31, 2023 Foreign Currency Translation Net Goodwill At March 31, 2024 Plumbing Products $ 677 $ (301) $ 377 $ (6) $ 371 Decorative Architectural Products 366 (139) 227 — 227 Total $ 1,043 $ (440) $ 604 $ (6) $ 598 F. GOODWILL AND OTHER INTANGIBLE ASSETS (Concluded)

SUPPLIER FINANCE PROGRAM

SUPPLIER FINANCE PROGRAM	3 Months Ended
	Mar. 31, 2024
Supplier Finance Program [Abstract]
SUPPLIER FINANCE PROGRAM	G. SUPPLIER FINANCE PROGRAM We facilitate a voluntary supply chain finance program (the "program") to provide certain of our suppliers with the opportunity to sell receivables due from us to participating financial institutions at the sole discretion of both the suppliers and the financial institutions. A third party administers the program; our responsibility is limited to making payment on the terms originally negotiated with our supplier, regardless of whether the supplier sells its receivable to a financial institution. We do not enter into agreements with any of the participating financial institutions in connection with the program. Our current payment terms with a majority of our suppliers generally range from 45 to 90 days. The range of payment terms we negotiate with our suppliers is consistent, irrespective of whether a supplier participates in the program.

DEBT

DEBT	3 Months Ended
	Mar. 31, 2024
Debt Disclosure [Abstract]
DEBT	H. DEBT 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, 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 2022 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 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 the equivalent of $500 million. We can also borrow swingline loans up to $125 million and obtain letters of credit of up to $25 million. Outstanding letters of credit under the 2022 Credit Agreement reduce our borrowing capacity and we had no outstanding letters of credit under the 2022 Credit Agreement at March 31, 2024. The 2022 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) an interest coverage ratio, as adjusted for certain items, not less than 2.5 to 1.0. In order for us to borrow under the 2022 Credit Agreement, there must not be any default in our covenants in the 2022 Credit Agreement (i.e., in addition to the two financial covenants described above, principally limitations on subsidiary debt, negative pledge restrictions, and requirements relating to legal compliance, maintenance of our properties and insurance) and our representations and warranties in the 2022 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, 2021, no material ERISA or environmental non-compliance, and no material tax deficiency). We were in compliance with all covenants and $49 million was borrowed and outstanding at a weighted average interest rate of 6.560% at March 31, 2024. H. DEBT (Concluded) 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. At both March 31, 2024 and December 31, 2023, the aggregate estimated market value of our short-term and long-term debt was approximately $2.6 billion, compared with the aggregate carrying value of $3.0 billion.

SEGMENT INFORMATION

SEGMENT INFORMATION	3 Months Ended
	Mar. 31, 2024
Segment Reporting [Abstract]
SEGMENT INFORMATION	I. SEGMENT INFORMATION Information by segment and geographic area was as follows, in millions: Three Months Ended March 31, 2024 2023 2024 2023 Net Sales (A) Operating Profit Our operations by segment were: Plumbing Products $ 1,192 $ 1,222 $ 226 $ 206 Decorative Architectural Products 734 757 124 132 Total $ 1,926 $ 1,979 $ 350 $ 338 Our operations by geographic area were: North America $ 1,526 $ 1,555 $ 285 $ 266 International 400 424 65 72 Total, as above $ 1,926 $ 1,979 350 338 General corporate expense, net (31) (23) Operating profit 318 315 Other income (expense), net (30) (30) Income before income taxes $ 289 $ 285 (A) Inter-segment sales were not material.

INCOME TAXES

INCOME TAXES	3 Months Ended
	Mar. 31, 2024
Income Tax Disclosure [Abstract]
INCOME TAXES	J. INCOME TAXES Our effective tax rate was 21 percent and 22 percent for the three months ended March 31, 2024 and 2023, respectively. Our effective tax rate for the three months ended March 31, 2024 and 2023 was favorably impacted by $16 million and $11 million of income tax benefits, respectively. For both periods, the income tax benefits primarily resulted from stock-based compensation and a reduction in the liability for uncertain tax positions resulting from the expiration of statutes of limitation.

INCOME PER COMMON SHARE

INCOME PER COMMON SHARE	3 Months Ended
	Mar. 31, 2024
Earnings Per Share [Abstract]
INCOME PER COMMON SHARE	K. 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, 2024 2023 Numerator (basic and diluted): Net income $ 215 $ 205 Less: Allocation to unvested restricted stock awards — — Net income attributable to common shareholders $ 215 $ 205 Denominator: Basic common shares (based upon weighted average) 221 226 Add: Dilutive effect of stock options and other stock-based incentives 1 1 Diluted common shares 221 227 For the three months ended March 31, 2024 and 2023, we allocated dividends and undistributed earnings to the unvested restricted stock awards. The following stock options, restricted stock units and performance restricted stock units were excluded from the computation of weighted-average diluted common shares outstanding due to their anti-dilutive effect, in thousands: Three Months Ended March 31, 2024 2023 Number of stock options 109 789 Number of restricted stock units — 272 Number of performance restricted stock units — 15 Effective October 20, 2022, our Board of Directors authorized the repurchase, for retirement, of up to $2.0 billion of shares of our common stock, exclusive of excise tax, in open-market transactions or otherwise. We repurchased and retired approximately 2.1 million shares of our common stock in the three months ended March 31, 2024 for approximately $148 million. These share repurchases included 0.4 million shares to offset the dilutive impact of restricted stock units granted in the three months ended March 31, 2024. Cash paid for share repurchases was approximately $145 million in the three months ended March 31, 2024. At March 31, 2024, we had approximately $1.5 billion remaining under the 2022 authorization.

OTHER COMMITMENTS AND CONTINGEN

OTHER COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 31, 2024
Commitments and Contingencies Disclosure [Abstract]
OTHER COMMITMENTS AND CONTINGENCIES	L. OTHER COMMITMENTS AND CONTINGENCIES Litigation. 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: advertising, competition, contract, data privacy, employment, environmental, insurance coverage, intellectual property, personal injury, product compliance, product liability, securities and warranty. 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. Warranty. Changes in our warranty liability were as follows, in millions: Three Months Ended March 31, 2024 Twelve Months Ended December 31, 2023 Balance at January 1 $ 83 $ 80 Accruals for warranties issued during the period 9 35 Accruals related to pre-existing warranties 1 7 Settlements made (in cash or kind) during the period (11) (42) Other, net (including currency translation and acquisitions) (1) 2 Balance at end of period $ 81 $ 83

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ 215	$ 205

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Mar. 31, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

ACCOUNTING POLICIES (Policies)

ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2024
Accounting Policies [Abstract]
Recently Adopted Accounting Pronouncements	Recently Adopted Accounting Pronouncements. In November 2023, the Financial Accounting Standards Board ("FASB") issued ASU 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures,” which requires additional disclosures regarding an entity's reportable segments, particularly regarding significant segment expenses, as well as information relating to the chief operating decision maker. We adopted this standard on a retrospective basis for annual periods beginning January 1, 2024, and will adopt this standard for interim periods beginning in 2025. The adoption of this guidance will modify our annual disclosures in 2024, but will not have an impact on our financial position and results of operations. In March 2023, the FASB issued ASU 2023-02, "Investments – Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method,” which permits an entity to elect to account for their tax equity investments using the proportional amortization method if certain conditions are met, regardless of the tax credit program from which the income tax credits are received. We adopted this standard beginning January 1, 2024. The adoption of this new standard did not have an impact on our financial position or results of operations. In September 2022, the FASB issued ASU 2022-04, "Liabilities – Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations,” which requires that an entity that uses a supplier finance program in connection with the purchase of goods or services disclose information about the program’s nature, activity during the period, changes from period to period, and potential magnitude. We adopted this standard for annual periods on a retrospective basis, including interim periods within those annual periods, beginning January 1, 2023. We also adopted the amendment on rollforward information, which became effective prospectively for annual periods beginning January 1, 2024. The adoption of this guidance modified our disclosures and will modify our annual disclosures for the rollforward information in 2024, but did not have an impact on our financial position and results of operations. Recently Issued Accounting Pronouncements . In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures,” which requires additional income tax disclosures, particularly regarding the effective tax rate reconciliation and income taxes paid. ASU 2023-09 is effective on a prospective basis for annual periods beginning January 1, 2025, with early adoption permitted. The adoption of this guidance will modify our disclosures, but will not have an impact on our financial position and results of operations.

REVENUE (Tables)

REVENUE (Tables)	3 Months Ended
	Mar. 31, 2024
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	Our revenues are derived from sales to customers in the following geographic areas: North America and International, which are particularly in Europe. Net sales from these geographic areas, by segment, were as follows, in millions: Three Months Ended March 31, 2024 Plumbing Products Decorative Architectural Products Total Primary geographic areas: North America $ 792 $ 734 $ 1,526 International 400 — 400 Total $ 1,192 $ 734 $ 1,926 Three Months Ended March 31, 2023 Plumbing Products Decorative Architectural Products Total Primary geographic areas: North America $ 798 $ 757 $ 1,555 International 424 — 424 Total $ 1,222 $ 757 $ 1,979
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 March 31, 2024 Twelve Months Ended December 31, 2023 Balance at January 1 $ 11 $ 8 Provision for expected credit losses during the period — 7 Write-offs charged against the allowance (3) (6) Recoveries of amounts previously written off 1 1 Balance at end of period $ 9 $ 11

INVENTORIES (Tables)

INVENTORIES (Tables)	3 Months Ended
	Mar. 31, 2024
Inventory Disclosure [Abstract]
Schedule of Inventories	The components of inventory were as follows, in millions: At March 31, 2024 At December 31, 2023 Finished goods $ 661 $ 630 Raw materials 306 298 Work in process 92 94 Total $ 1,059 $ 1,022

GOODWILL AND OTHER INTANGIBLE_2

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)	3 Months Ended
	Mar. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Changes in Carrying Amount of Goodwill	Goodwill at March 31, 2024, by segment, was as follows, in millions: Gross Goodwill At March 31, 2024 Accumulated Impairment Losses Net Goodwill At March 31, 2024 Plumbing Products $ 671 $ (301) $ 371 Decorative Architectural Products 366 (139) 227 Total $ 1,037 $ (440) $ 598 The changes in the carrying amount of goodwill for the three months ended March 31, 2024, by segment, were as follows, in millions: Gross Goodwill At December 31, 2023 Accumulated Impairment Losses Net Goodwill At December 31, 2023 Foreign Currency Translation Net Goodwill At March 31, 2024 Plumbing Products $ 677 $ (301) $ 377 $ (6) $ 371 Decorative Architectural Products 366 (139) 227 — 227 Total $ 1,043 $ (440) $ 604 $ (6) $ 598

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	3 Months Ended
	Mar. 31, 2024
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, 2024 2023 2024 2023 Net Sales (A) Operating Profit Our operations by segment were: Plumbing Products $ 1,192 $ 1,222 $ 226 $ 206 Decorative Architectural Products 734 757 124 132 Total $ 1,926 $ 1,979 $ 350 $ 338 Our operations by geographic area were: North America $ 1,526 $ 1,555 $ 285 $ 266 International 400 424 65 72 Total, as above $ 1,926 $ 1,979 350 338 General corporate expense, net (31) (23) Operating profit 318 315 Other income (expense), net (30) (30) Income before income taxes $ 289 $ 285 (A) Inter-segment sales were not material.

INCOME PER COMMON SHARE (Tables

INCOME PER COMMON SHARE (Tables)	3 Months Ended
	Mar. 31, 2024
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, 2024 2023 Numerator (basic and diluted): Net income $ 215 $ 205 Less: Allocation to unvested restricted stock awards — — Net income attributable to common shareholders $ 215 $ 205 Denominator: Basic common shares (based upon weighted average) 221 226 Add: Dilutive effect of stock options and other stock-based incentives 1 1 Diluted common shares 221 227
Schedule of Weighted Average Number of Shares	The following stock options, restricted stock units and performance restricted stock units were excluded from the computation of weighted-average diluted common shares outstanding due to their anti-dilutive effect, in thousands: Three Months Ended March 31, 2024 2023 Number of stock options 109 789 Number of restricted stock units — 272 Number of performance restricted stock units — 15

OTHER COMMITMENTS AND CONTING_2

OTHER COMMITMENTS AND CONTINGENCIES (Tables)	3 Months Ended
	Mar. 31, 2024
Commitments and Contingencies Disclosure [Abstract]
Schedule of Changes in the Company's Warranty Liability	Changes in our warranty liability were as follows, in millions: Three Months Ended March 31, 2024 Twelve Months Ended December 31, 2023 Balance at January 1 $ 83 $ 80 Accruals for warranties issued during the period 9 35 Accruals related to pre-existing warranties 1 7 Settlements made (in cash or kind) during the period (11) (42) Other, net (including currency translation and acquisitions) (1) 2 Balance at end of period $ 81 $ 83

ACQUISITIONS - Narrative (Detai

ACQUISITIONS - Narrative (Details) € in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2024 USD ($)	Mar. 31, 2024 EUR (€)	Dec. 31, 2023 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2023 EUR (€)	Mar. 31, 2021
Acquisitions
Goodwill	$ 598		$ 604
Easy Sanitary Solutions B.V.
Acquisitions
Noncontrolling interest ownership	24.90%					24.90%
Sauna360
Acquisitions
Consideration transferred				$ 136	€ 124
Indefinite-lived intangible assets acquired				22
Definite lived intangible assets				$ 45
Weighted average amortization period				16 years
Goodwill				$ 60
Decrease to goodwill			$ 1
Easy Sanitary Solutions B.V.
Acquisitions
Consideration transferred	$ 15	€ 13
Equity interest acquired						75.10%

REVENUE - Revenue (Details)

REVENUE - Revenue (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Disaggregation of Revenue [Line Items]
Net sales	$ 1,926	$ 1,979
North America
Disaggregation of Revenue [Line Items]
Net sales	1,526	1,555
International
Disaggregation of Revenue [Line Items]
Net sales	400	424
Plumbing Products
Disaggregation of Revenue [Line Items]
Net sales	1,192	1,222
Plumbing Products | North America
Disaggregation of Revenue [Line Items]
Net sales	792	798
Plumbing Products | International
Disaggregation of Revenue [Line Items]
Net sales	400	424
Decorative Architectural Products
Disaggregation of Revenue [Line Items]
Net sales	734	757
Decorative Architectural Products | North America
Disaggregation of Revenue [Line Items]
Net sales	734	757
Decorative Architectural Products | International
Disaggregation of Revenue [Line Items]
Net sales	$ 0	$ 0

REVENUE - Narrative (Details)

REVENUE - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2024	Dec. 31, 2023
Revenue Recognition and Deferred Revenue [Abstract]
Performance obligation satisfied in previous period	$ 1
Contract asset		$ 3	$ 3
Contract liability		$ 21	$ 45

REVENUE - Rollforward (Details)

REVENUE - Rollforward (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at January 1	$ 11	$ 8
Provision for expected credit losses during the period	0	7
Write-offs charged against the allowance	(3)	(6)
Recoveries of amounts previously written off	1	$ 1
Balance at end of period	$ 9

DEPRECIATION AND AMORTIZATION (

DEPRECIATION AND AMORTIZATION (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Depreciation, Depletion and Amortization [Abstract]
Depreciation and amortization expense	$ 38	$ 35

INVENTORIES (Details)

INVENTORIES (Details) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Inventory Disclosure [Abstract]
Finished goods	$ 661	$ 630
Raw materials	306	298
Work in process	92	94
Total	$ 1,059	$ 1,022

GOODWILL AND OTHER INTANGIBLE_3

GOODWILL AND OTHER INTANGIBLE ASSETS - Goodwill, Net (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Goodwill [Line Items]
Goodwill, Gross	$ 1,037	$ 1,043
Accumulated Impairment Losses	(440)	(440)
Net Goodwill	598	604
Foreign Currency Translation	(6)
Plumbing Products
Goodwill [Line Items]
Goodwill, Gross	671	677
Accumulated Impairment Losses	(301)	(301)
Net Goodwill	371	377
Foreign Currency Translation	(6)
Decorative Architectural Products
Goodwill [Line Items]
Goodwill, Gross	366	366
Accumulated Impairment Losses	(139)	(139)
Net Goodwill	227	$ 227
Foreign Currency Translation	$ 0

GOODWILL AND OTHER INTANGIBLE_4

GOODWILL AND OTHER INTANGIBLE ASSETS - Narrative (Details) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Other indefinite-lived intangible assets	$ 107	$ 108
Carrying value of definite-lived intangible assets	259	269
Accumulated amortization	$ 128	$ 120

SUPPLIER FINANCE PROGRAM (Detai

SUPPLIER FINANCE PROGRAM (Details) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Supplier Finance Program [Line Items]
Accounts payable	$ 59	$ 53
Current obligation	$ 35	$ 28
Minimum
Supplier Finance Program [Line Items]
Current payment terms	45 days
Maximum
Supplier Finance Program [Line Items]
Current payment terms	90 days

DEBT - Narrative (Details)

DEBT - Narrative (Details)	Apr. 26, 2022 USD ($)	Mar. 31, 2024 USD ($)
Fair Value
Debt
Long-term and short-term debt		$ 2,600,000,000
Carrying Value
Debt
Debt, long-term and short-term		3,000,000,000
2022 Credit Agreement | Line of Credit | Revolver
Debt
Borrowing capacity, maximum	$ 1,000,000,000
Increase in maximum borrowing capacity	$ 500,000,000
Amended Credit Agreement
Debt
Maximum net leverage ratio	4
Minimum interest coverage ratio	2.5
Amount borrowed		49,000,000
Amended Credit Agreement | Revolver
Debt
Borrowing capacity, maximum	$ 500,000,000
Amended Credit Agreement | Swingline loans
Debt
Borrowing capacity, maximum	125,000,000
Amended Credit Agreement | Letters of credit
Debt
Borrowing capacity, maximum	$ 25,000,000
Outstanding and unused Letters of Credit		$ 0
Amended Credit Agreement | Line of Credit
Debt
Weighted average interest rate		6.56%

SEGMENT INFORMATION (Details)

SEGMENT INFORMATION (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Net Sales
Net sales	$ 1,926	$ 1,979
Operating Profit	318	315
Other income (expense), net	(30)	(30)
Income before income taxes	289	285
North America
Net Sales
Net sales	1,526	1,555
International
Net Sales
Net sales	400	424
Plumbing Products
Net Sales
Net sales	1,192	1,222
Plumbing Products | North America
Net Sales
Net sales	792	798
Plumbing Products | International
Net Sales
Net sales	400	424
Decorative Architectural Products
Net Sales
Net sales	734	757
Decorative Architectural Products | North America
Net Sales
Net sales	734	757
Decorative Architectural Products | International
Net Sales
Net sales	0	0
Operating Segments
Net Sales
Net sales	1,926	1,979
Operating Profit	350	338
Operating Segments | North America
Net Sales
Net sales	1,526	1,555
Operating Profit	285	266
Operating Segments | International
Net Sales
Net sales	400	424
Operating Profit	65	72
Operating Segments | Plumbing Products
Net Sales
Net sales	1,192	1,222
Operating Profit	226	206
Operating Segments | Decorative Architectural Products
Net Sales
Net sales	734	757
Operating Profit	124	132
Corporate, Non-Segment
Net Sales
General corporate expense, net	$ (31)	$ (23)

INCOME TAXES - Narrative (Detai

INCOME TAXES - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Income Tax Disclosure [Abstract]
Effective tax rate	21%	22%
Income tax benefits	$ 16	$ 11

INCOME PER COMMON SHARE - Recon

INCOME PER COMMON SHARE - Reconciliations of the Numerators and Denominators Used in the Computations of Basic and Diluted Earnings per Common Share (Details) - USD ($) shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Numerator (basic and diluted):
Net income	$ 215	$ 205
Less: Allocation to unvested restricted stock awards	0	0
Net income attributable to common shareholders	$ 215	$ 205
Denominator:
Basic common shares (based upon weighted average) (in shares)	221	226
Add: Dilutive effect of stock options and other stock-based incentives (in shares)	1	1
Diluted common shares (in shares)	221	227

INCOME PER COMMON SHARE - Antid

INCOME PER COMMON SHARE - Antidilutive Securities (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Stock Options
Antidilutive securities excluded from computation of earnings per share
Antidilutive effect on computation of diluted earnings per common share (in shares)	109	789
Restricted Stock Units
Antidilutive securities excluded from computation of earnings per share
Antidilutive effect on computation of diluted earnings per common share (in shares)	0	272
Performance Restricted Stock Units
Antidilutive securities excluded from computation of earnings per share
Antidilutive effect on computation of diluted earnings per common share (in shares)	0	15

INCOME PER COMMON SHARE - Narra

INCOME PER COMMON SHARE - Narrative (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Oct. 20, 2022
Earnings Per Share [Abstract]
Stock repurchase program, authorized amount			$ 2,000
Repurchase and retirement of common stock (in shares)	2.1
Stock repurchased during period	$ 148
Repurchase and retirement of common stock to offset the dilutive impact of the grant of long-term stock awards (in shares)	0.4
Payments for repurchase of common stock	$ 145	$ 53
Remaining authorized repurchase amount	$ 1,500
Cash dividends per common share paid (in dollars per share)	$ 0.290	$ 0.285

OTHER COMMITMENTS AND CONTING_3

OTHER COMMITMENTS AND CONTINGENCIES - Warranty (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Changes in the company's warranty liability
Balance at January 1	$ 83	$ 80
Accruals for warranties issued during the period	9	35
Accruals related to pre-existing warranties	1	7
Settlements made (in cash or kind) during the period	(11)	(42)
Other, net (including currency translation and acquisitions)	(1)	2
Balance at end of period	$ 81	$ 83