8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of report (Date of earliest event reported) February 14, 2011

Masco Corporation

(Exact name of Registrant as Specified in Charter)

Delaware	1-5794	38-1794485
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

21001 Van Born Road, Taylor, Michigan	48180
(Address of Principal Executive Offices)	(Zip Code)

(313) 274-7400

Registrant’s telephone number, including area code

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

     o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

     o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

     o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

     o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

TABLE OF CONTENTS

EX-99

Item 2.02. Results of Operations and Financial Condition.

     Attached and incorporated herein by reference as Exhibit 99 is a copy of a press release dated February 14, 2011 reporting Masco Corporation’s financial results for the fourth quarter and full-year of 2010 and certain other information and supplemental information prepared for use in connection with the financial results for the fourth quarter and full-year 2010. On February 15, 2011, Masco Corporation will hold an investor conference call and web cast to discuss financial results for the fourth quarter and full-year 2010.

     This information, including the Exhibits attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liabilities of that section.

Item 9.01. Financial Statements and Exhibits.

     (d) Exhibits.

99 Press Release of Masco Corporation dated February 14, 2011 reporting Masco Corporation’s financial results for the fourth quarter and full-year 2010 and certain other information and supplemental information prepared for use in connection with the financial results for the fourth quarter and full-year 2010.

SIGNATURE

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

MASCO CORPORATION
By:	/s/ John G. Sznewajs
	Name:	John G. Sznewajs
	Title:	Vice President, Treasurer and Chief Financial Officer

February 14, 2011

EXHIBIT INDEX

99 Press Release of Masco Corporation dated February 14, 2011 reporting Masco Corporation’s financial results for the fourth quarter and full-year 2010 and certain other information and supplemental information prepared for use in connection with the financial results for the fourth quarter and full-year 2010.

EX-99

FOR IMMEDIATE RELEASE Exhibit 99

Investor / Media Contact
Maria Duey
Vice President — Investor Relations and Communications
313.792.5500
maria_duey@mascohq.com

MASCO CORPORATION REPORTS 2010 RESULTS

     2010 Full-Year Commentary

• Sales declined three percent to $7.6 billion.

• Results for key financial measures, as adjusted for certain items (see Exhibit A) and with a normalized tax rate of 36 percent, compared to the full-year of 2009 were as follows:

• Gross profit margins were 26.4 percent compared to 26.5 percent.

• Operating profit margins were 5.7 percent compared to 5.6 percent.

• Income was $.16 per common share compared to $.31 per common share.

• (Loss) from continuing operations, as reported was $(3.00) per common share compared to $(.41) per common share for the full-year of 2009.

• We recorded a valuation allowance related to U.S. deferred tax assets and an impairment charge for goodwill and other intangible assets. These charges reduced our reported earnings by $(2.76) per common share for the full-year and fourth quarter of 2010.

• Working capital as a percent of sales improved to 13.4 percent at December 31, 2010, compared to 14.7 percent at December 31, 2009.

• Free cash flow (cash from operations, less capital expenditures, before dividends) approximated $290 million.

• We ended 2010 with over $1.7 billion of cash.

Taylor, Mich., (February 14, 2011) — Masco Corporation (NYSE: MAS) today reported that net sales from continuing operations for the year ended December 31, 2010 decreased three percent to $7.6 billion. North American sales decreased three percent and International sales were flat. In local currencies, International sales increased five percent compared with 2009.

Income from continuing operations was $.16 per common share and $.31 per common share for 2010 and 2009, respectively, excluding the items in Exhibit A and with a normalized tax rate of 36 percent. Including these items, loss from continuing operations, as reported was $(3.00) per common share and $(.41) per common share for the years ended December 31, 2010 and 2009, respectively.

“Industry conditions in 2010 continued to be challenging and it was a tough year for Masco. In many ways 2010 was a tale of two halves. We came out of 2009 with good momentum and our sales in the first half of 2010 were up two percent. As the year progressed, the expiration of the home buyer tax credit, increasing commodity costs and the competitive environment made the second half of 2010 much more challenging and our sales were down seven percent compared to second half 2009. Our installation and cabinet businesses, which are tied to new home construction and “big ticket” repair and remodel activity, were particularly hard hit. We are encouraged that in a difficult environment, our full-year adjusted gross margins (26.4 percent) and operating profit (5.7 percent) were essentially flat with 2009 even though sales were down three percent. We accomplished a lot in 2010 as we focused on strengthening our brands and improving our execution. We continued to implement the Masco Business System (MBS) across the enterprise, introduced innovative new products

1

including Delta ® Touch₂0 ® faucets, Arrow ® RED ® line of staplers, and Kilz ® Pro-X™ paint, and enhanced our financial flexibility, ending the year with $1.7 billion of cash,” said Masco’s CEO Tim Wadhams.

We continue to focus on the rationalization of our businesses, including business consolidations, plant closures, headcount reductions, system implementations and other initiatives. During 2010 and 2009, we incurred costs and charges of $208 million pre-tax ($.38 per common share, after tax) and $94 million pre-tax ($.17 per common share, after tax), respectively, related to these initiatives.

In 2010, we recorded non-cash, pre-tax impairment charges for goodwill and other intangible assets and deferred tax assets valuation allowance aggregating $1,092 million ($2.76 per common share, after tax). The impairment charge for goodwill and other intangible assets is primarily related to our Installation and Other Services segment and reflects our expectation that the recovery in new home construction will be modestly slower than previously anticipated. The charge for deferred tax assets valuation allowance reflects accounting guidance that requires a valuation allowance on deferred tax assets because we are in a three-year cumulative loss position, due to U.S. operating losses and the U.S. goodwill impairment charge, that primarily occurred in the fourth quarter of 2010. These losses negated our ability to utilize our previously identified tax planning strategy. During 2009, we recorded a non-cash pre-tax impairment charge for goodwill (in the fourth quarter) of $262 million ($.51 per common share, after tax).

We recently successfully amended our revolving credit facility to reflect the impact of our impairment charges for goodwill and other intangible assets and the valuation allowance for our deferred tax assets on our net worth; we continue to have borrowing capacity of approximately $1 billion available under the revolving credit facility.

Fourth Quarter 2010

2010 Fourth Quarter Commentary

• Sales decreased nine percent to $1.7 billion.

• Results for key financial measures, as adjusted for certain items (see Exhibit B) and with a normalized tax rate of 36 percent, compared to the fourth quarter of 2009 were as follows:

• Gross profit margins were 23.2 percent compared to 26.9 percent.

• Operating profit margins were 1.6 percent compared to 4.8 percent.

• (Loss) income was $(.08) per common share compared to $.05 per common share.

• (Loss) income from continuing operations, as reported was $(2.96) per common share compared to $(.49) per common share in the fourth quarter of 2009.

Fourth quarter 2010 net sales from continuing operations decreased nine percent to $1.7 billion compared with $1.9 billion for the fourth quarter of 2009. North American sales decreased nine percent and International sales decreased seven percent. In local currencies, International sales were flat compared with the fourth quarter of 2009.

(Loss) income from continuing operations was $(.08) per common share and $.05 per common share, for the fourth quarters of 2010 and 2009, respectively, excluding the items in Exhibit B and with a normalized tax rate of 36 percent. Including these items, loss from continuing operations, as reported, was $(2.96) per common share in the fourth quarter of 2010 compared to $(.49) per common share in the fourth quarter of 2009.

During the fourth quarters of 2010 and 2009, we incurred business rationalization costs and charges of $104 million pre-tax ($.19 per common share, after tax; this includes a non-cash, pre-tax charge of $67 million related to a fourth quarter 2010 decision to close a cabinet facility that had previously been idled) and $27 million pre-tax ($.05 per common share, after tax), respectively.

2

Outlook 2011

“The trends impacting our business including depressed new home construction, the deferral of “big ticket” repair and remodel activity and commodity cost pressures have continued into early 2011. We expect a challenging business environment, particularly in the first half of 2011; we expect the second half of 2011 to be stronger. The MBS continues to drive positive change across Masco: although we are incurring short-term costs, our Cabinet integration is on plan and we expect will ultimately drive fixed cost reductions and share gains; we have strengthened our brands, our focus on innovation is driving new opportunities and we have added outstanding talent to our leadership teams to enhance the development and execution of our business strategies,” said Tim Wadhams.

“In addition, we recently announced our agreement between Masco Contractor Services and Owens Corning, which we believe will grow sales, create efficiencies in logistics, lower working capital, provide consistent supply and better service for our customers. We are confident about the long-term fundamentals for the new home construction and home improvement markets and we are optimistic about the future. We expect that improvements in our markets and consumer spending together with the changes we are driving across Masco will create significant value for our shareholders and want to thank the Masco Team for their continued dedication to making it all happen,” said Tim Wadhams.

Headquartered in Taylor, Michigan, Masco Corporation is one of the world’s leading manufacturers of home improvement and building products, as well as a leading provider of services that include the installation of insulation and other building products.

The 2010 fourth quarter supplemental material, including a presentation in PDF format, will be distributed after the market closes on February 14, 2011 and will be available on the Company’s Web site at www.masco.com.

A conference call regarding items contained in this release is scheduled for Tuesday, February 15, 2011 at 8:00 a.m. ET. Participants in the call are asked to register five to ten minutes prior to the scheduled start time by dialing (913) 312-1393 (confirmation #5663649). The conference call will be webcast simultaneously on the Company’s Web site at www.masco.com and supplemental material, including the financial data referred to on the call and a reconciliation of non-GAAP information provided on the call, will also be available on the Web site.

A replay of the call will be available on Masco’s Web site or by phone by dialing (719) 457-0820 (replay access code #5663649) approximately two hours after the end of the call and will continue through February 22, 2011.

Masco Corporation’s press releases and other information are available through the Company’s toll free number, 1-888-MAS-NEWS, or under the Investor Relations section of Masco’s Web site at www.masco.com.

# # #

3

Statements contained in this press release that reflect our views about our future performance constitute “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “believe,” “anticipate,” “appear,” “may,” “will,” “intend,” “plan,” “estimate,” “expect,” “assume,” “seek,” and similar references to future periods. These views involve risks and uncertainties that are difficult to predict and, accordingly, our actual results may differ materially from the results discussed in our forward-looking statements. We caution you against relying on any of these forward-looking statements. Our future performance may be affected by our reliance on new home construction and home improvement, our reliance on key customers, the cost and availability of raw materials, shifts in consumer preferences and purchasing practices, and our ability to achieve cost savings through the Masco Business System and other initiatives. These and other factors are discussed in detail in Item 1A, “Risk Factors” in our Annual Report on Form 10-K, as well as in our Quarterly Reports on Form 10-Q and in other filings we make with the Securities and Exchange Commission. Our forward-looking statements in this press release speak only as of the date of this press release. Factors or events that could cause our actual results to differ may emerge from time to time, and is not possible for us to predict all of them. We undertake no obligation to update publicly any forward-looking statements as a result of new information, future events or otherwise.

The Company believes that the non-GAAP performance measures and ratios that are contained herein, used in managing the business, may provide users of this financial information with additional meaningful comparisons between current results and results in prior periods. Non-GAAP performance measures and ratios should be viewed in addition to, and not as an alternative for, the Company’s reported results under accounting principles generally accepted in the United States. Additional information about the Company is contained in the Company’s filings with the Securities and Exchange Commission and is available on Masco’s Web site at www.masco.com.

4

MASCO CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS — UNAUDITED

For the Three Months and Twelve Months Ended December 31, 2010 and 2009
(In Millions, Except Per Common Share Data)

	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
	2010			2009			2010			2009
Net sales	$	1,735		$	1,898		$	7,592		$	7,792
Cost of sales		1,427			1,403			5,752			5,774
Gross profit		308			495			1,840			2,018
Selling, general and administrative expenses		385			430			1,618			1,693
Impairment charges for goodwill and other intangible assets		721			262			721			262
Charge for defined-benefit plan curtailment		—			—			—			8
Operating (loss) profit		(798	)		(197	)		(499	)		55
Other income (expense), net		(55	)		(49	)		(278	)		(206	)
Loss from continuing operations before income taxes		(853	)		(246	)		(777	)		(151	)
Income tax expense (benefit)		172			(84	)		225			(49	)
Loss from continuing operations		(1,025	)		(162	)		(1,002	)		(102	)
Loss from discontinued operations, net		—			(12	)		—			(43	)
Net loss		(1,025	)		(174	)		(1,002	)		(145	)
Less: Net income attributable to non-controlling interest		9			11			41			38
Net loss attributable to Masco Corporation	$	(1,034	)	$	(185	)	$	(1,043	)	$	(183	)
Loss per common share attributable to Masco
Corporation (diluted):
Loss from continuing operations	$	(2.96	)	$	(0.49	)	$	(3.00	)	$	(0.41	)
Loss from discontinued operations, net		—			(0.03	)		—			(0.12	)
Net loss attributable to Masco Corporation	$	(2.96	)	$	(0.53	)	$	(3.00	)	$	(0.53	)
Average diluted common shares outstanding		349			352			349			351
Amounts attributable to Masco Corporation:
Loss from continuing operations	$	(1,034	)	$	(173	)	$	(1,043	)	$	(140	)
Loss from discontinued operations, net		—			(12	)		—			(43	)
Net loss attributable to Masco Corporation	$	(1,034	)	$	(185	)	$	(1,043	)	$	(183	)

Page 1

MASCO CORPORATION
Reconciliations — Exhibit A
For the Twelve Months Ended December 31, 2010 and 2009
(In Millions, Except Per Common Share Data)

Gross Profit and Operating (Loss) Profit Reconciliations

	Twelve Months Ended
	December 31,
	2010			2009
Sales	$	7,592		$	7,792
Gross profit, as reported	$	1,840		$	2,018
Rationalization charges		166			43
Gross profit, as adjusted	$	2,006		$	2,061
Gross margin, as reported		24.2	%		25.9	%
Gross margin, as adjusted		26.4	%		26.5	%
Operating (loss) profit, as reported	$	(499	)	$	55
Rationalization charges		208			94
Other one-time charges		—			23
Impairment charges for goodwill and other intangible assets		721			262
Operating profit, as adjusted	$	430		$	434
Operating margin, as reported		-6.6	%		0.7	%
Operating margin, as adjusted		5.7	%		5.6	%

Earnings Per Common Share Reconciliation

	Twelve Months Ended
	December 31,
	2010			2009
(Loss) from continuing operations before income taxes — as reported	$	(777	)	$	(151	)
Rationalization charges		208			94
Other one-time charges		—			23
Impairment charges for goodwill and other intangible assets		721			262
Income from continuing operations before income taxes — as adjusted		152			228
Tax at 36% rate		(55	)		(82	)
Less: Net income attributable to non-controlling interest		(41	)		(38	)
Net Income — as adjusted	$	56		$	108
Earnings per common share — as adjusted	$	0.16		$	0.31
Shares outstanding		349			351

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

Page 2

MASCO CORPORATION
Reconciliations — Exhibit B
For the Three Months Ended December 31, 2010 and 2009
(In Millions, Except Per Common Share Data)

Gross Profit and Operating (Loss) Profit Reconciliations

	Three Months Ended
	December 31,
	2010			2009
Sales	$	1,735		$	1,898
Gross profit, as reported	$	308		$	495
Rationalization charges		95			15
Gross profit, as adjusted	$	403		$	510
Gross margin, as reported		17.8	%		26.1	%
Gross margin, as adjusted		23.2	%		26.9	%
Operating (loss) profit, as reported	$	(798	)	$	(197	)
Rationalization charges		104			27
Other one-time charges		—			—
Impairment charges for goodwill and other intangible assets		721			262
Operating profit, as adjusted	$	27		$	92
Operating margin, as reported		-46.0	%		-10.4	%
Operating margin, as adjusted		1.6	%		4.8	%

Earnings Per Common Share Reconciliation

	Three Months Ended
	December 31,
	2010			2009
(Loss) from continuing operations before income taxes — as reported	$	(853	)	$	(246	)
Rationalization charges		104			27
Other one-time charges		—			—
Impairment charges for goodwill and other intangible assets		721			262
Income from continuing operations before income taxes — as adjusted		(28	)		43
Tax at 36% rate		10			(15	)
Less: Net income attributable to non-controlling interest		(9	)		(11	)
Net Income — as adjusted	$	(27	)	$	17
Earnings per common share — as adjusted	$	(0.08	)	$	0.05
Shares outstanding		349			352

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

Page 3

Masco Corporation
Key Financial Data As Reported — Unaudited
Q4 — 2010 and 2009
(In Millions, Except Earnings Per Share)

Sales & Earnings	12/31/2010			12/31/2009			Change
Net Sales	$	1,735		$	1,898			-9	%
Operating Loss	$	(798	)	$	(197	)		N/A
Operating (Loss) % of Net Sales		-46.0	%		-10.4	%		(3,560	)bps
Other Income (Expense), Net	$	(55	)	$	(49	)	$	(6	)
Income Tax Expense (Benefit)	$	172		$	(84	)		N/A
Loss From Continuing Operations Attributable to Masco Corporation	$	(1,034	)	$	(173	)		N/A
Diluted EPS from Continuing Operations	$	(2.96	)	$	(0.49	)		N/A

Operating Expenses	12/31/2010			12/31/2009			Change
Cost of Sales	$	1,427		$	1,403		$	24
Gross Margin		17.8	%		26.1	%		(830	)bps
SG&A Expenses (Including GCE)	$	385		$	430		$	(45	)
SG&A as a % of net sales		22.2	%		22.7	%		50	bps
General Corporate Expense (GCE)	$	26		$	44		$	(18	)
General Corp Expense as a % of net sales		1.5	%		2.3	%		80	bps

Business Segments	12/31/2010			12/31/2009			Change
Cabinets and Related Products:
Net Sales	$	304		$	426			-29	%
Operating (Loss)	$	(137	)	$	(8	)		N/A
Operating (Loss) % of Net Sales		-45.1	%		-1.9	%		(4,320	)bps
Plumbing Products:
Net Sales	$	661		$	671			-1	%
Operating Profit	$	64		$	35			N/A
Operating Profit % of Net Sales		9.7	%		5.2	%		450	bps
Installation and Other Services:
Net Sales	$	273		$	295			-7	%
Operating (Loss)	$	(747	)	$	(27	)		N/A
Operating (Loss) % of Net Sales		-273.6	%		-9.2	%		(26,440	)bps
Decorative Architectural Products:
Net Sales	$	336		$	349			-4	%
Operating Profit	$	45		$	62			N/A
Operating Profit % of Net Sales		13.4	%		17.8	%		(440	)bps
Other Specialty Products:
Net Sales	$	161		$	157			3	%
Operating Profit (Loss)	$	3		$	(215	)		N/A
Operating Profit (Loss) % of Net Sales		1.9	%		-136.9	%		13,880	bps
Total Segment Reported:
Net Sales	$	1,735		$	1,898			-9	%
Operating (Loss)	$	(772	)	$	(153	)		N/A
Operating (Loss) % of Net Sales		-44.5	%		-8.1	%		(3,640	)bps

Page 4

Masco Corporation
Key Financial Data As Reported — Unaudited
Q4 — 2010 and 2009
(In Millions, Except Earnings Per Share)

Business Regions	12/31/2010			12/31/2009			Change
North America
Net Sales	$	1,312		$	1,441			-9	%
Operating (Loss)	$	(800	)	$	(168	)		N/A
Operating (Loss) % of Net Sales		-61.0	%		-11.7	%		(4,930	)bps
International, principally Europe
Net Sales	$	423		$	457			-7	%
Operating Profit	$	28		$	15			N/A
Operating Profit % of Net Sales		6.6	%		3.3	%		330	bps
Other	12/31/2010			12/31/2009
Dividend Payments	$	27		$	27
Cash Paid for Share Repurchases	$	—		$	—
Common Shares Repurchased		—			—
CAPEX	$	49		$	55
Depreciation and Amortization	$	137		$	64
Average diluted common shares outstanding		349			352

Page 5

Masco Corporation
Key Financial Data As Reported — Unaudited
Year-to-Date December 31, 2010 and 2009
(In Millions, Except Earnings Per Share and Working Capital Days)

Sales & Earnings	12/31/2010			12/31/2009			Change
Net Sales	$	7,592		$	7,792			-3	%
Operating (Loss) Profit	$	(499	)	$	55			N/A
Operating (Loss) Profit % of Net Sales		-6.6	%		0.7	%		(730	)bps
Other Income (Expense), Net	$	(278	)	$	(206	)	$	(72	)
Income Tax Expense (Benefit)	$	225		$	(49	)		N/A
Loss From Continuing Operations Attributable to Masco Corporation	$	(1,043	)	$	(140	)		N/A
Diluted EPS from Continuing Operations	$	(3.00	)	$	(0.41	)		N/A

Operating Expenses	12/31/2010			12/31/2009			Change
Cost of Sales	$	5,752		$	5,774		$	(22	)
Gross Margin		24.2	%		25.9	%		(170	)bps
SG&A Expenses (Including GCE)	$	1,618		$	1,701		$	(83	)
SG&A as a % of net sales		21.3	%		21.8	%		50	bps
General Corporate Expense (GCE)	$	110		$	140		$	(30	)
General Corp Expense as a % of net sales		1.4	%		1.8	%		40	bps

Business Segments	12/31/2010			12/31/2009			Change
Cabinets and Related Products:
Net Sales	$	1,464		$	1,674			-13	%
Operating (Loss)	$	(250	)	$	(64	)		N/A
Operating (Loss) % of Net Sales		-17.1	%		-3.8	%		(1,330	)bps
Plumbing Products:
Net Sales	$	2,692		$	2,564			5	%
Operating Profit	$	331		$	237			N/A
Operating Profit % of Net Sales		12.3	%		9.2	%		310	bps
Installation and Other Services:
Net Sales	$	1,147		$	1,256			-9	%
Operating (Loss)	$	(834	)	$	(131	)		N/A
Operating (Loss) % of Net Sales		-72.7	%		-10.4	%		(6,230	)bps
Decorative Architectural Products:
Net Sales	$	1,693		$	1,714			-1	%
Operating Profit	$	345		$	375			N/A
Operating Profit % of Net Sales		20.4	%		21.9	%		(150	)bps
Other Specialty Products:
Net Sales	$	596		$	584			2	%
Operating Profit (Loss)	$	19		$	(199	)		N/A
Operating Profit (Loss) % of Net Sales		3.2	%		-34.1	%		3,730	bps
Total Segment Reported:
Net Sales	$	7,592		$	7,792			-3	%
Operating (Loss) Profit	$	(389	)	$	218			N/A
Operating (Loss) Profit % of Net Sales		-5.1	%		2.8	%		(790	)bps

Page 6

Masco Corporation
Key Financial Data As Reported — Unaudited
Year-to-Date December 31, 2010 and 2009
(In Millions, Except Earnings Per Share and Working Capital Days)

Business Regions	12/31/2010			12/31/2009			Change
North America
Net Sales	$	5,929		$	6,135			-3	%
Operating (Loss) Profit	$	(543	)	$	93			N/A
Operating (Loss) Profit % of Net Sales		-9.2	%		1.5	%		(1,070	)bps
International, principally Europe
Net Sales	$	1,663		$	1,657			0	%
Operating Profit	$	154		$	125			N/A
Operating Profit % of Net Sales		9.3	%		7.5	%		180	bps

Working Capital	12/31/2010			12/31/2009			Change
Receivable Days		47			48			(1	)
Inventory Days		49			48			1
Payable Days		51			47			4
Working Capital (Receivables+Inventory-Payables)	$	1,018		$	1,148		$	(130	)
Working Capital as a % of Sales (As Reported TTM1)		13.4	%		14.7	%		130	bps
Other	12/31/2010			12/31/2009
Dividend Payments	$	108		$	166
Cash Paid for Share Repurchases2	$	45		$	11
Common Shares Repurchased2		3			2
CAPEX	$	137		$	125
Depreciation and Amortization	$	279		$	254
Return on Invested Capital (As Reported TTM1)		-7.1	%		0.5	%
Return on Invested Capital (As Reconciled TTM1)		2.9	%		3.6	%
Average diluted common shares outstanding		349			351
Balance Sheet Information	12/31/2010			12/31/2009
Long-Term Debt	$	4,032		$	3,604
Notes Payable	$	66		$	364
Total Debt	$	4,098		$	3,968
Shareholders’ Equity	$	1,582		$	2,817
Debt to Capital		72	%		58	%
Cash	$	1,715		$	1,413

1 -	Trailing twelve months.
2 -	Common shares were repurchased to offset the effect of stock award grants in the first quarters of 2010 and 2009.

Page 7

Masco Corporation — 4th Quarter 2010

Page
1	Condensed Consolidated Statements of Operations — 2010 & 2009 by Quarter — Unaudited
2	Notes to Condensed Consolidated Statements of Operations — 2010 & 2009 by Quarter — Unaudited
3	2010 Quarterly Segment Data Excluding Costs and Charges for Business Rationalizations and Other Initiatives — Unaudited
4	2010 Quarterly Segment Data Including Costs and Charges for Business Rationalizations and Other Initiatives — Unaudited
5	2010 Costs and Charges for Business Rationalizations and Other Initiatives — Unaudited
6	2009 Quarterly Segment Data Excluding Costs and Charges for Business Rationalizations and Other Initiatives and Impairment Charges for Goodwill and Other Intangible Assets — Unaudited
7	2009 Quarterly Segment Data Including Costs and Charges for Business Rationalizations and Other Initiatives and Impairment Charges for Goodwill and Other Intangible Assets — Unaudited
8	2009 Costs and Charges for Business Rationalizations and Other Initiatives and Impairment Charges for Goodwill and Other Intangible Assets — Unaudited
9	Other Income (Expense), Net — 2010 & 2009 by Quarter — Unaudited
10	Condensed Consolidated Balance Sheets — Unaudited
	GAAP Reconciliations:
11	Sales Growth Excluding the Effect of Acquisitions and Currency Translation — Unaudited
12	Operating Profit and Margins — Unaudited
13	Operating Profit and Shareholders’ Equity — Unaudited

Index

MASCO CORPORATION
Condensed Consolidated Statements of Operations
2010 & 2009 — by Quarter — Unaudited
(dollars in millions, except per share data)

		2010															2009
		Year			Qtr. 4			Qtr. 3			Qtr. 2			Qtr. 1			Year			Qtr. 4			Qtr. 3			Qtr. 2			Qtr. 1
	Net Sales	$	7,592		$	1,735		$	1,957		$	2,048		$	1,852		$	7,792		$	1,898		$	2,084		$	2,013		$	1,797
	Cost of Sales		5,752			1,427			1,463			1,502			1,360			5,774			1,403			1,517			1,470			1,384
	Gross Profit		1,840			308			494			546			492			2,018			495			567			543			413
	(Gross Margin as a % of Sales)		24.2	%		17.8	%		25.2	%		26.7	%		26.6	%		25.9	%		26.1	%		27.2	%		27.0	%		23.0	%
	SG&A Expense (before lines 1, 2, 3, 4)		1,508			359			365			400			384			1,546			386			386			400			374
	(S,G&A Expense as a % of Sales)		19.9	%		20.7	%		18.7	%		19.5	%		20.7	%		19.8	%		20.3	%		18.5	%		19.9	%		20.8	%
	Operating Profit (before lines 1, 2, 3, 4)		332			(51	)		129			146			108			472			109			181			143			39
	(Operating Margin as a % of Sales)		4.4	%		-2.9	%		6.6	%		7.1	%		5.8	%		6.1	%		5.7	%		8.7	%		7.1	%		2.2	%
1	General Corporate Expense (GCE), Net		110			26			27			27			30			140			44			36			27			33
	S,G&A Expense as a % of Sales (including lines 1,2,3,4)		30.8	%		63.7	%		20.0	%		20.8	%		22.4	%		25.2	%		36.5	%		20.6	%		21.2	%		23.1	%
2	Charge for Defined-Benefit Plan Curtailment		—			—			—			—			—			8			—			—			—			8
3	Charge for Litigation Settlement		—			—			—			—			—			7			—			7			—			—
4	Impairment Charges for Goodwill and Other Intangible Assets		721			721			—			—			—			262			262			—			—			—
	Operating Profit (Loss) per F/S	$	(499	)	$	(798	)	$	102		$	119		$	78		$	55		$	(197	)	$	138		$	116		$	(2	)
	(Loss) Income Per Common Share Attributable to Masco Corporation (Diluted):
	(Loss) Income from Continuing Operations	$	(3.00	)	$	(2.96	)	$	(0.02	)	$	0.01		$	(0.02	)	$	(0.41	)	$	(0.49	)	$	0.14		$	0.19		$	(0.24	)
	(Loss) Income from Discontinued Operations, Net		—			—			—			—			—			(0.12	)		(0.03	)		(0.06	)		(0.03	)		0.01
	Net (Loss) Income	$	(3.00	)	$	(2.96	)	$	(0.02	)	$	0.01		$	(0.02	)	$	(0.53	)	$	(0.53	)	$	0.08		$	0.15		$	(0.23	)

Please see page 2 for Notes.

Page 1

MASCO CORPORATION
Notes To Condensed Consolidated Statements of Operations
2010 & 2009 — by Quarter — Unaudited

Notes:

- Data exclude discontinued operations.

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

- Operating results for the fourth quarter of 2010 include non-cash impairment charges for goodwill and other intangible assets of $721 million pre-tax ($1.70 per common share, after tax).

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

- Operating results for the fourth quarter of 2009 include non-cash impairment charges for goodwill and other intangible assets of $262 million pre-tax ($.51 per common share, after tax).

- Operating results for the first, second, third and fourth quarters of 2009 include costs and charges related to business rationalizations and other initiatives of $24 million pre-tax ($.04 per common share, after tax), $22 million pre-tax ($.04 per common share, after tax), $21 million pre-tax ($.04 per common share, after tax), and $27 million pre-tax ($.05 per common share, after tax), respectively.

- Operating results for the third quarter of 2009 include litigation settlement expense of $7 million pre-tax ($.01 per common share, after tax).

- Operating results for the second quarter of 2009 include accelerated stock compensation expense of $6 million pre-tax ($.01 per common share, after tax).

- Operating results for the first quarter of 2009 include a non-cash charge of $8 million pre-tax ($.01 per common share, after tax) related to the curtailment and remeasurement of certain of the Company’s defined-benefit pension plans.

- Income from continuing operations for the first and second quarters of 2009 includes non-cash impairment charges for financial investments of $3 million pre-tax ($.01 per common share, after tax) and $7 million pre-tax ($.01 per common share, after tax), respectively.

- (Loss) income from discontinued operations for the fourth quarter of 2009 include loss of $19 million pre-tax ($.04 per common share, after tax) on the disposition of a European business unit in the Plumbing Products segment.

- (Loss) income from discontinued operations for the third quarter of 2009 include loss of $22 million pre-tax ($.06 per common share, after tax) on the disposition of a European business unit in the Plumbing Products segment.

Page 2

MASCO CORPORATION
Quarterly Segment Data — 2010
Excluding Costs and Charges for Business Rationalizations and Other Initiatives
and Impairment Charges for Goodwill and Other Intangible Assets — Unaudited
(dollars in millions)

	Year			Qtr. 4			Qtr. 3			Qtr. 2			Qtr. 1
Net Sales:
- Cabinets and Related Products	$	1,464		$	304		$	357		$	400		$	403
- Plumbing Products		2,692			661			686			682			663
- Installation and Other Services		1,147			273			292			309			273
- Decorative Architectural Products		1,693			336			463			505			389
- Other Specialty Products		596			161			159			152			124
- Total	$	7,592		$	1,735		$	1,957		$	2,048		$	1,852
- North America	$	5,929		$	1,312		$	1,528		$	1,659		$	1,430
- International, principally Europe		1,663			423			429			389			422
- Total, as above	$	7,592		$	1,735		$	1,957		$	2,048		$	1,852
Operating (Loss) Profit:
- Cabinets and Related Products	$	(71	)	$	(46	)	$	(27	)	$	6		$	(4	)
- Plumbing Products		347			70			100			92			85
- Installation and Other Services		(106	)		(25	)		(20	)		(21	)		(40	)
- Decorative Architectural Products		350			50			104			109			87
- Other Specialty Products		19			3			11			11			(6	)
- Total	$	539		$	52		$	168		$	197		$	122
- North America	$	373		$	21		$	116		$	160		$	76
- International, principally Europe		166			31			52			37			46
- Total, as above	$	539		$	52		$	168		$	197		$	122
General Corporate Expense (GCE), Net		109			25			27			27			30
Operating Profit (after GCE and Adjustments)		430			27			141			170			92
Other Income (Expense), Net		(278	)		(55	)		(64	)		(103	)		(56	)
Income from Continuing Operations before Income Taxes	$	152		$	(28	)	$	77		$	67		$	36
Margins:
- Cabinets and Related Products		-4.8	%		-15.1	%		-7.6	%		1.5	%		-1.0	%
- Plumbing Products		12.9	%		10.6	%		14.6	%		13.5	%		12.8	%
- Installation and Other Services		-9.2	%		-9.2	%		-6.8	%		-6.8	%		-14.7	%
- Decorative Architectural Products		20.7	%		14.9	%		22.5	%		21.6	%		22.4	%
- Other Specialty Products		3.2	%		1.9	%		6.9	%		7.2	%		-4.8	%
- Total		7.1	%		3.0	%		8.6	%		9.6	%		6.6	%
- North America		6.3	%		1.6	%		7.6	%		9.6	%		5.3	%
- International, principally Europe		10.0	%		7.3	%		12.1	%		9.5	%		10.9	%
- Total, as above		7.1	%		3.0	%		8.6	%		9.6	%		6.6	%

Notes:
-	Data exclude discontinued operations.
-	Operating (loss) profit and margins by segment and geographic area are before general corporate expense.
-	See 2010 Costs and Charges for Business Rationalizations and Other Initiatives — page 5.

Page 3

MASCO CORPORATION
Quarterly Segment Data — 2010
Including Costs and Charges for Business Rationalizations and Other Initiatives
and Impairment Charges for Goodwill and Other Intangible Assets — Unaudited
(dollars in millions)

	Year			Qtr. 4			Qtr. 3			Qtr. 2			Qtr. 1
Net Sales:
- Cabinets and Related Products	$	1,464		$	304		$	357		$	400		$	403
- Plumbing Products		2,692			661			686			682			663
- Installation and Other Services		1,147			273			292			309			273
- Decorative Architectural Products		1,693			336			463			505			389
- Other Specialty Products		596			161			159			152			124
- Total	$	7,592		$	1,735		$	1,957		$	2,048		$	1,852
- North America	$	5,929		$	1,312		$	1,528		$	1,659		$	1,430
- International, principally Europe		1,663			423			429			389			422
- Total, as above	$	7,592		$	1,735		$	1,957		$	2,048		$	1,852
Operating (Loss) Profit:
- Cabinets and Related Products	$	(250	)	$	(137	)	$	(61	)	$	(37	)	$	(15	)
- Plumbing Products		331			64			97			86			84
- Installation and Other Services		(834	)		(747	)		(22	)		(23	)		(42	)
- Decorative Architectural Products		345			45			104			109			87
- Other Specialty Products		19			3			11			11			(6	)
- Total	$	(389	)	$	(772	)	$	129		$	146		$	108
- North America	$	(543	)	$	(800	)	$	79		$	114		$	64
- International, principally Europe		154			28			50			32			44
- Total, as above	$	(389	)	$	(772	)	$	129		$	146		$	108
General Corporate Expense (GCE), Net		110			26			27			27			30
Operating Profit (after GCE and Adjustments)		(499	)		(798	)		102			119			78
Other Income (Expense), Net		(278	)		(55	)		(64	)		(103	)		(56	)
Income from Continuing Operations before Income Taxes	$	(777	)	$	(853	)	$	38		$	16		$	22
Margins:
- Cabinets and Related Products		-17.1	%		-45.1	%		-17.1	%		-9.3	%		-3.7	%
- Plumbing Products		12.3	%		9.7	%		14.1	%		12.6	%		12.7	%
- Installation and Other Services		-72.7	%		-273.6	%		-7.5	%		-7.4	%		-15.4	%
- Decorative Architectural Products		20.4	%		13.4	%		22.5	%		21.6	%		22.4	%
- Other Specialty Products		3.2	%		1.9	%		6.9	%		7.2	%		-4.8	%
- Total		-5.1	%		-44.5	%		6.6	%		7.1	%		5.8	%
- North America		-9.2	%		-61.0	%		5.2	%		6.9	%		4.5	%
- International, principally Europe		9.3	%		6.6	%		11.7	%		8.2	%		10.4	%
- Total, as above		-5.1	%		-44.5	%		6.6	%		7.1	%		5.8	%

Notes:
-	Data exclude discontinued operations.
-	Operating (loss) profit and margins by segment and geographic area are before general corporate expense.
-	See 2010 Costs and Charges for Business Rationalizations and Other Initiatives — page 5.

Page 4

MASCO CORPORATION
Quarterly Segment Data — 2010
Costs and Charges for Business Rationalizations and Other Initiatives
and Impairment Charges for Goodwill and Other Intangible Assets — Unaudited
(in millions)

	Year		Qtr. 4		Qtr. 3		Qtr. 2		Qtr. 1
Business Rationalizations & Other Initiatives
- Cabinets and Related Products	$	179	$	91	$	34	$	43	$	11
- Plumbing Products		15		5		3		6		1
- Installation and Other Services		8		2		2		2		2
- Decorative Architectural Products		5		5		—		—		—
- Other Specialty Products		—		—		—		—		—
- Total	$	207	$	103	$	39	$	51	$	14
- North America	$	195	$	100	$	37	$	46	$	12
- International, principally Europe		12		3		2		5		2
- Total, as above	$	207	$	103	$	39	$	51	$	14
General Corporate Expense (GCE), Net		1		1		—		—		—
- Total	$	208	$	104	$	39	$	51	$	14
Goodwill and Other Intangible Assets Impairment
- Cabinets and Related Products	$	—	$	—	$	—	$	—	$	—
- Plumbing Products		1		1		—		—		—
- Installation and Other Services		720		720		—		—		—
- Decorative Architectural Products		—		—		—		—		—
- Other Specialty Products		—		—		—		—		—
- Total	$	721	$	721	$	—	$	—	$	—
- North America	$	721	$	721	$	—	$	—	$	—
- International, principally Europe		—		—		—		—		—
- Total, as above	$	721	$	721	$	—	$	—	$	—

Notes:
-	Data exclude discontinued operations.
-	Business rationalizations and other initiatives include costs and charges for business consolidations, plant closures, headcount reductions, system implementations and other initiatives.

Page 5

MASCO CORPORATION
Quarterly Segment Data – 2009
Excluding Costs and Charges for Business Rationalizations and Other Initiatives
and Impairment Charges for Goodwill and Other Intangible Assets – Unaudited
(dollars in millions)

	Year			Qtr. 4			Qtr. 3			Qtr. 2			Qtr. 1
Net Sales:
- Cabinets and Related Products	$	1,674		$	426		$	434		$	419		$	395
- Plumbing Products		2,564			671			678			631			584
- Installation and Other Services		1,256			295			332			312			317
- Decorative Architectural Products		1,714			349			474			505			386
- Other Specialty Products		584			157			166			146			115
- Total	$	7,792		$	1,898		$	2,084		$	2,013		$	1,797
- North America	$	6,135		$	1,441		$	1,630		$	1,630		$	1,434
- International, principally Europe		1,657			457			454			383			363
- Total, as above	$	7,792		$	1,898		$	2,084		$	2,013		$	1,797
Operating (Loss) Profit:
- Cabinets and Related Products	$	(21	)	$	9		$	(9	)	$	(2	)	$	(19	)
- Plumbing Products		295			80			99			78			38
- Installation and Other Services		(107	)		(25	)		(27	)		(27	)		(28	)
- Decorative Architectural Products		376			62			123			116			75
- Other Specialty Products		27			8			16			8			(5	)
- Total	$	570		$	134		$	202		$	173		$	61
- North America	$	394		$	75		$	139		$	141		$	39
- International, principally Europe		176			59			63			32			22
- Total, as above	$	570		$	134		$	202		$	173		$	61
General Corporate Expense (GCE), Net		136			42			36			27			31
Accelerated Stock Compensation Expense		6			—			—			6			—
Loss on Corporate Fixed Assets, Net		2			—			—			2			—
Charge for Litigation Settlement		7			—			7			—			—
Charge for Defined-Benefit Plan Curtailment		8			—			—			—			8
Operating Profit (after GCE and Adjustments)		411			92			159			138			22
Other Income (Expense), Net		(206	)		(49	)		(49	)		(49	)		(59	)
Income (Loss) from Continuing Operations before Income Taxes	$	205		$	43		$	110		$	89		$	(37	)
Margins:
- Cabinets and Related Products		-1.3	%		2.1	%		-2.1	%		-0.5	%		-4.8	%
- Plumbing Products		11.5	%		11.9	%		14.6	%		12.4	%		6.5	%
- Installation and Other Services		-8.5	%		-8.5	%		-8.1	%		-8.7	%		-8.8	%
- Decorative Architectural Products		21.9	%		17.8	%		25.9	%		23.0	%		19.4	%
- Other Specialty Products		4.6	%		5.1	%		9.6	%		5.5	%		-4.3	%
- Total		7.3	%		7.1	%		9.7	%		8.6	%		3.4	%
- North America		6.4	%		5.2	%		8.5	%		8.7	%		2.7	%
- International, principally Europe		10.6	%		12.9	%		13.9	%		8.4	%		6.1	%
- Total, as above		7.3	%		7.1	%		9.7	%		8.6	%		3.4	%

Notes:
-	Data exclude discontinued operations.
-	Operating (loss) profit and margins by segment and geographic area are before general corporate expense, charge for defined-benefit plan curtailment, accelerated stock compensation expense, loss on corporate fixed assets, net and charge for litigation settlement.
-	See 2009 Costs and Charges for Business Rationalizations and Other Initiatives — page 8.

Page 6

MASCO CORPORATION
Quarterly Segment Data — 2009
Including Costs and Charges for Business Rationalizations and Other Initiatives
and Impairment Charges for Goodwill and Other Intangible Assets — Unaudited
(dollars in millions)

	Year			Qtr. 4			Qtr. 3			Qtr. 2			Qtr. 1
Net Sales:
- Cabinets and Related Products	$	1,674		$	426		$	434		$	419		$	395
- Plumbing Products		2,564			671			678			631			584
- Installation and Other Services		1,256			295			332			312			317
- Decorative Architectural Products		1,714			349			474			505			386
- Other Specialty Products		584			157			166			146			115
- Total	$	7,792		$	1,898		$	2,084		$	2,013		$	1,797
- North America	$	6,135		$	1,441		$	1,630		$	1,630		$	1,434
- International, principally Europe		1,657			457			454			383			363
- Total, as above	$	7,792		$	1,898		$	2,084		$	2,013		$	1,797
Operating (Loss) Profit:
- Cabinets and Related Products	$	(64	)	$	(8	)	$	(16	)	$	(12	)	$	(28	)
- Plumbing Products		237			35			93			74			35
- Installation and Other Services		(131	)		(27	)		(34	)		(34	)		(36	)
- Decorative Architectural Products		375			62			122			116			75
- Other Specialty Products		(199	)		(215	)		16			7			(7	)
- Total	$	218		$	(153	)	$	181		$	151		$	39
- North America	$	93		$	(168	)	$	123		$	119		$	19
- International, principally Europe		125			15			58			32			20
- Total, as above	$	218		$	(153	)	$	181		$	151		$	39
General Corporate Expense (GCE), Net		140			44			36			27			33
Accelerated Stock Compensation Expense		6			—			—			6			—
Loss on Corporate Fixed Assets, Net		2			—			—			2			—
Charge for Litigation Settlement		7			—			7			—			—
Charge for Defined-Benefit Plan Curtailment		8			—			—			—			8
Operating (Loss) Profit (after GCE and Adjustments)		55			(197	)		138			116			(2	)
Other Income (Expense), Net		(206	)		(49	)		(49	)		(49	)		(59	)
Income (Loss) from Continuing Operations before Income Taxes	$	(151	)	$	(246	)	$	89		$	67		$	(61	)
Margins:
- Cabinets and Related Products		-3.8	%		-1.9	%		-3.7	%		-2.9	%		-7.1	%
- Plumbing Products		9.2	%		5.2	%		13.7	%		11.7	%		6.0	%
- Installation and Other Services		-10.4	%		-9.2	%		-10.2	%		-10.9	%		-11.4	%
- Decorative Architectural Products		21.9	%		17.8	%		25.7	%		23.0	%		19.4	%
- Other Specialty Products		-34.1	%		-136.9	%		9.6	%		4.8	%		-6.1	%
- Total		2.8	%		-8.1	%		8.7	%		7.5	%		2.2	%
- North America		1.5	%		-11.7	%		7.5	%		7.3	%		1.3	%
- International, principally Europe		7.5	%		3.3	%		12.8	%		8.4	%		5.5	%
- Total, as above		2.8	%		-8.1	%		8.7	%		7.5	%		2.2	%

Notes:
-	Data exclude discontinued operations.
-	Operating (loss) profit and margins by segment and geographic area are before general corporate expense, charge for defined benefit plan curtailment, accelerated stock compensation expense, loss on corporate fixed assets, net and charge for litigation settlement.
-	See 2009 Costs and Charges for Business Rationalizations and Other Initiatives — page 8.

Page 7

MASCO CORPORATION
Quarterly Segment Data — 2009
Costs and Charges for Business Rationalizations and Other Initiatives
and Impairment Charges for Goodwill and Other Intangible Assets — Unaudited
(in millions)

	Year		Qtr. 4		Qtr. 3		Qtr. 2		Qtr. 1
Business Rationalizations & Other Initiatives
- Cabinets and Related Products	$	43	$	17	$	7	$	10	$	9
- Plumbing Products		19		6		6		4		3
- Installation and Other Services		24		2		7		7		8
- Decorative Architectural Products		1		—		1		—		—
- Other Specialty Products		3		—		—		1		2
- Total	$	90	$	25	$	21	$	22	$	22
- North America	$	78	$	20	$	16	$	22	$	20
- International, principally Europe		12		5		5		—		2
- Total, as above	$	90	$	25	$	21	$	22	$	22
General Corporate Expense (GCE), Net		4		2		—		—		2
- Total	$	94	$	27	$	21	$	22	$	24
Goodwill and Other Intangible Assets Impairment
- Cabinets and Related Products	$	—	$	—	$	—	$	—	$	—
- Plumbing Products		39		39		—		—		—
- Installation and Other Services		—		—		—		—		—
- Decorative Architectural Products		—		—		—		—		—
- Other Specialty Products		223		223		—		—		—
- Total	$	262	$	262	$	—	$	—	$	—
- North America	$	223	$	223	$	—	$	—	$	—
- International, principally Europe		39		39		—		—		—
- Total, as above	$	262	$	262	$	—	$	—	$	—

Notes:
-	Data exclude discontinued operations.
-	Business rationalizations and other initiatives include costs and charges for business consolidations, plant closures, headcount reductions, system implementations and other initiatives.

Page 8

MASCO CORPORATION
Other Income (Expense), Net
2010 & 2009 — by Quarter — Unaudited
(in millions)

	2010															2009
	Year			Qtr. 4			Qtr. 3			Qtr. 2			Qtr. 1			Year			Qtr. 4			Qtr. 3			Qtr. 2			Qtr. 1
Interest Expense	$	(251	)	$	(63	)	$	(63	)	$	(67	)	$	(58	)	$	(225	)	$	(56	)	$	(56	)	$	(57	)	$	(56	)
Income from Cash and Cash Investments		6			2			2			1			1			7			1			2			1			3
Other Interest Income		1			—			—			—			1			2			1			1			—			—
Realized Gains (Losses) from Financial Investments, Net		9			11			(3	)		1			—			3			3			—			—			—
Impairment Charges for Financial Investments		(34	)		(1	)		—			(33	)		—			(10	)		—			—			(7	)		(3	)
Other, Net		(9	)		(4	)		—			(5	)		—			17			2			4			14			(3	)
Total Other Income (Expense), Net	$	(278	)	$	(55	)	$	(64	)	$	(103	)	$	(56	)	$	(206	)	$	(49	)	$	(49	)	$	(49	)	$	(59	)

Notes:
-	Data exclude discontinued operations.
-	Other, Net, in 2010 includes currency (losses) gains of ($1) million, ($5) million, $4 million and $-— for the first, second, third and fourth quarters, respectively.
-	Other, Net, in 2009 includes currency (losses) gains of ($2) million, $11 million, $5 million, and $3 million for the first, second, third and fourth quarters, respectively.

Page 9

MASCO CORPORATION
Condensed Consolidated Balance Sheets- Unaudited
(in millions)

	December 31,		December 31,
	2010		2009
Assets
Current Assets:
Cash and Cash Investments	$	1,715	$	1,413
Receivables		888		983
Inventories		732		743
Prepaid Expenses and Other		129		312
Total Current Assets		3,464		3,451
Property and Equipment, Net		1,737		1,981
Goodwill		2,383		3,108
Other Intangible Assets, Net		269		290
Other Assets		287		345
Total Assets	$	8,140	$	9,175
Liabilities
Current Liabilities:
Notes Payable	$	66	$	364
Accounts Payable		602		578
Accrued Liabilities		819		839
Total Current Liabilities		1,487		1,781
Long-Term Debt		4,032		3,604
Deferred Income Taxes and Other		1,039		973
Total Liabilities		6,558		6,358
Shareholders’ Equity		1,582		2,817
Total Liabilities and Shareholders’ Equity	$	8,140	$	9,175

Page 10

MASCO CORPORATION
GAAP Reconciliation of Sales Growth
Excluding the Effect of Acquisitions and Currency Translation- Unaudited
(dollars in millions)

	Three Months Ended
	December 31,
	2010			2009		% ∆
Net Sales, As Reported	$	1,735		$	1,898		-9	%
- Acquisitions		—			—
- Currency Translation		30			—
Net Sales, Excluding Acquisitions and Currency Translation	$	1,765		$	1,898		-7	%
North America Net Sales, As Reported	$	1,312		$	1,441		-9	%
- Acquisitions		—			—
- Currency Translation		(2	)		—
North America Net Sales, Excluding Acquisitions and Currency Translation	$	1,310		$	1,441		-9	%
International Net Sales, As Reported	$	423		$	457		-7	%
- Acquisitions		—			—
- Currency Translation		32			—
International Net Sales, Excluding Acquisitions and Currency Translation	$	455		$	457		0	%

	Twelve Months Ended
	December 31,
	2010			2009		% ∆
As Reported	$	7,592		$	7,792		-3	%
- Acquisitions		—			—
- Currency Translation		48			—
Net Sales, Excluding Acquisitions and Currency Translation	$	7,640		$	7,792		-2	%
North America Net Sales, As Reported	$	5,929		$	6,135		-3	%
- Acquisitions		—			—
- Currency Translation		(22	)		—
North America Net Sales, Excluding Acquisitions and Currency Translation	$	5,907		$	6,135		-4	%
International Net Sales, As Reported	$	1,663		$	1,657		0	%
- Acquisitions		—			—
- Currency Translation		70			—
International Net Sales, Excluding Acquisitions and Currency Translation	$	1,733		$	1,657		5	%

Notes:
-	Data exclude discontinued operations.
-	The Company presents information comparing results from one period to another excluding the results of businesses acquired in order to assess the performance of the underlying businesses and to assess to what extent acquisitions are impacting growth.
-	The Company also presents information comparing results of International operations from one period to another using constant exchange rates. Current period results for foreign entities are converted into U.S. dollars using the prior period’s exchange rates, rather than exchange rates for the current period. The Company presents this information to assess how the underlying businesses performed in local currencies before taking into account currency fluctuations.
-	The currency translation effect on North American net sales includes currency translation related to Canadian business units.

Page 11

MASCO CORPORATION
GAAP Reconciliation of Operating (Loss) Profit and Margins- Unaudited
(dollars in millions)

	Three Months Ended December 31,
	2010						2009
	$			Margin			$			Margin
Operating (Loss) Profit, As Reported	$	(798	)		-46.0	%	$	(197	)		-10.4	%
Impairment Charges for Goodwill and Other
Intangible Assets		721						262
Business Rationalizations and Other Initiatives		104						27
Charge for Litigation Settlement		—						—
Charge for Defined-Benefit Plan Curtailment		—						—
Operating Profit, As Reconciled	$	27			1.6	%	$	92			4.8	%

	Twelve Months Ended December 31,
	2010						2009
	$			Margin			$		Margin
Operating (Loss) Profit, As Reported	$	(499	)		-6.6	%	$	55		0.7	%
Impairment Charges for Goodwill and Other		721						262
Intangible Assets
Business Rationalizations and Other Initiatives		208						94
Charge for Litigation Settlement		—						7
Charge for Defined-Benefit Plan Curtailment		—						8
Loss on Sale of Corporate Assets, Net		—						2
Accelerated Stock Compensation Expense		—						6
Operating Profit, As Reconciled	$	430			5.7	%	$	434		5.6	%

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

Page 12

MASCO CORPORATION
GAAP Reconciliation of Operating Loss and Shareholders’ Equity- Unaudited
(in millions)

	Twelve
	Months Ended
	31-Dec
	2010
Operating Loss, As Reported	$	(499	)
Impairment Charges for Goodwill and Other Intangible Assets, Continuing Operations		721
Charge for Defined-Benefit Plan Curtailment		—
Charge for Litigation Settlement		—
Operating Profit, As Reconciled	$	222

	Twelve Months Ended
	December 31,
	2010		2009
Shareholders’ Equity, As Reported	$	1,582	$	2,817
Impairment Charges for Goodwill and Other Intangible Assets (after tax)		593		180
Charge for Defined-Benefit Plan Curtailment (after tax)		—		5
Charge for Litigation Settlement (after tax)		—		4
Shareholders’ Equity, As Reconciled	$	2,175	$	3,006

Notes:
-	Data exclude discontinued operations.
-	The Company believes that certain non-GAAP performance measures and ratios used in managing the business may provide additional meaningful comparisons between current results and results in prior periods. Non-GAAP performance measures and ratios should be viewed in addition to, and not as an alternative for, the Company’s reported results under accounting principles generally accepted in the United States.
-	This information is provided as detail for the calculation of return on invested capital (“ROIC”) which is after-tax operating profit (last twelve months, as reconciled) divided by the total of average debt (net of average cash) and average shareholders’ equity.

Page 13

GRAPHIC 3 k50044k5004400.gif GRAPHIC begin 644 k50044k5004400.gif M1TE&.#EA@@`@`/<``'FES!5CJ$J%N_#T^=7B[5V2POCZ^@%8I!EFJ6R=R`Q= MI-GF\-OF[Q%AIY&UU>7M\OGZ_#5YM`%6H1UHJU".OVJ:QL'5Y]+@[?+V^+S2 MY?;Y^O'U]K3,X2EQL"IPKX.LT(&JS@E'J\E2-P.[S][K0Y?3W^?CY^\G: MZ=[H\)V]VNSR]LW=ZF"4P\[=['*@R>?N]"5MKJG%W?K[^Z[)X(RQTCEZM3Y] MMJW'WNCN];C0XYFZV+'*X#%UL05:I%2,OI2VUM;D[O[^_46"N72AR^[R]D&! MN$!^MRURL*7"VJ;"W4.!N%B.P(BNT>;M]4V(O-#>[(JPT\37Z7VHS6:8Q:S( MW@18HF^?R>KQ]?7X^2%JK/S[^IFYU%&*OA!>I?+V^OW^_F.6Q-_I\J'`VN3L M]0=:HXVRU)J\V;3-XNKP]UF-O<;9Z?S\_B%LK`)8H2INK:/!W)6XUBYTL@%8 MH3!UM!]JJ_GZ^??Z^_;X^/7X^N_T]NGP]0E;I.#H\X6MT`A:H_G\_`1:H_'U M^.KR]^/L\N+K\]SG\@]@I=/@Z\KCP]@I< MI"=NKS1WL\38YU2*OH^TU"1KK3I[MC!SL`98HP%8H@%8H_W]_/W\_`!8HOW\ M_0%9HOS\^_S\_?S]^_W\^P)8H@)8H_____O]_?O]_/W]^_O\_`!9H_O\^P)9 MH_O\_0!8H_S]^OO]^P)9H@-8HOK[_/_^_OS\^@!9HOK\^@19H_W\^@-8H_K] M^@%:H_?Z_/[\^_K\_?K]_/W^_3AYL]?D[_[^__[__OO[_`59H46$NO[]_:C$ MW0Q?IY>YV?K]_;S2Y!]GJ?+X^;;.XU"(N^/L]#AWLE6+NRARL.?O]>3N]/OZ M^.#K]#U\M`-:I'BCRYR[V/G\^?G]^G"=QMWI\OS]^?#U^G.BRW2CS(FOT/[_ M___^_____OW]^M_I\>GQ\VB9PVV$OB0HL.!Q&X=$[CQX[&'Q!""*9F1';); MMQIVA(C*U[Y_.'/B=)?JILZ?.'FEZ@3T7R=AJG[R^UB.#V)8@5!A")J ME+0ETY=JE8D4^J#^&Q5,U:!$5<:,X4$`PCY5];C!P;`TYSY^O$3Q(Q3-@3PU MC"J8651HRUN?.E%I:-&%@N/'%*YD$24VYS!1<"`_[O(,D$Y^H"?=L"5VW[YH MUQ`,^7%#VA,I)!;\N+)*K(DDWAI,>F'&3Q@/;\ZD0#'B3YI43Z/NXX;&&Y\` M%="X@+(H70`^DY0`2YYX+X=EG#BY_]D4*I0;1:DJX^0'(\*!\J$V';)$`$/8 MG/Q&R?#A(]JJ?43E)`PK=\3#!Q!%B-()*QM$`_TC%3S1T[**)']JL0N$^8>GAQR&OQ("#.)3EA(HG MKL@BB`"GA.#/D:8D8(!Z_X@RAA9\;+*)/R'@@$LIHP2X'BLW'"F`,'7EA(L) M%9SR@1VJ?)BB/GJ\X$,L1H"B$RBD9'#$+H%$8<(LHMP$&C^B:+##!)Q(<$&` M_&SP0@.F>$&#'5B&^0\_,_`0@#]E5"!"8J:ELD4T93ABRB>?F"))$/J85MH/ M+31BBC^?Q/^0!RG\>$)A3IX$$0DGK3CSCJ3_K")#&7^\(THI/MW%B@F,G-(# M!#C16@H/6IRR23X:\`,@HO_0.L,8(7""`JW\?)&/#[3X$,<,_*0JJ;:NG+'+ M)KO\L`**J."T#QLK-.)`)$>*ITXIM8I5B`L\),29;S2P0P/XZ2/)\*H$$`.1V]SR2F]<%+#>F+IX\H`".#_`(HH9X0R MQR8-&'*?6)WL0T`93IL21]$X@:+/`(0U\H$),C) M)#^6R(Z(%P=\PDD!J2A?&C];8&+M)LX44HK1D@_0@!,P3*`YQ4_PD[91_)3@ M`0DIF([Z3YYHDXD3/)31RB:G((&/*)YKP?;488=4E*(HI$B$-G"2@0"$@F(% M((7UU(,%*-PA`=+#5#-(L;Z?Z.,_-7@%)_PQARDD`WR3:P`,A#$%3CS0'PW8 MQI]TL@]1/*$)JBC=PDZG-9WH`PX_T`4>_Y`0BTUPXA0\4-4_J#"J`QPB'"98 MA2@$L"I3BB;0@F*<8((&)L4DG`@C!B/T1RPX M0,<`:(-&0QAA*`Z``!.`QH=`.`(K^"$&^?4P)S1X`BM$F0@$',D?H#S@/RZ@ MA6?Z(QF`H@6_H2!0\N80*#&C-`HY`%`9X`@V1Q MP`I'V@0"NH&35)C@!58XQ0AC&E-:(``$]WC**%91@'B>@@D=:V?]#G&D5GR" M!BUE$BB*=Z1<&,$$]1Q``.[A.WZHHVZD*H,+ZK(/`U"A`LO\QT$+J2]^O*`& MKO")*$@@"7^DU!0@N,M=,``.!1PIIIH[12A>(0`"\`,4JX!GSCA!!9[_EM,3 M!``8K#ZQB+RJ$1SQ_$0$SA%8!-PC)R28@%M-B!-6L"`&QLB29)\:%1-<(@6> MT(=V1\$/(+QJA&W(0S+D5(ID1`,)KWC=Q)[I`10,8Q^8B"4GKG"KR2,`SW8"$3?U#%B`0P!;J,ED>!D@?U$"' M@NXCIT)$HA8/Y`0-:A,L7XC"!&.H@RG*8TU.>&`/L+#!E,+S@OJ6DP5&@I4$ MJ-'?21$!M:W`Q!>*BP^?\,,"`<:2X3)PA+*?0!FE)@@`8V<&'`Q-H%6Q@A_ZN($HQ2+)S10!STZ8,]/D"\XP"!H M$B!J%CC8YP@CL092=`$`,X#T4TEA@`J`P!Y%V4<6M/!`_N7#%@!=#\'V(0)& MA">KX`#!"&/QBB4((M90D9H1IA2+4Q"!%:QL92KDL#!_2$`&=*P#"=S)#T%T M@&(Y4P,6O(`"&T>Z$Z2@1`_N(8L^FG,<:_\#`"T.T(I8".`+HIB:QR37C4,<@!._.,0#Z*B%`7@P M'/&$(0"&L$IE(]1AI:`";6R,JUF\@U'Q-"$OQ'+D>>4L&_-``LX^408>?+"< MI0@'DK.*`!;`0N9`&84^2`&$4[PJ%`"`A='^D8H!:$$/7MP'/+R0"Z>]0ADX MN`ND=Y4U3Y2CO4JD7^)^L(EZ>X`!OL65"1HPUA^P8@JT&*$$`%`*->4-=.7P M`B$J`.!VUV`?:*>?)U1Q!"/Z0P$BV`?X5*$-!)#`BZM/P":<=HH`X$,54Q,# MX3_1@1.H(@QA*'IEX,"'%]:B"9X'"BA M@`;V0`\[\`TY4P9)<("X(@Y,L'N?(`!X`#GLXP<2L`9>U`G<=02<<`"!@"KF MU%6>8`B1T`H!V`$:0`02@`(J:!,/F+`!L^!P>H$"C'(`U?``8_84J``*H.`)%O`*H3`")C`*J`=0=M`#G,`% MI'`369(*8](L[T%\#H`Y*>@)[7*`H@`(U7`*K7``$M`+`0`%^S`4I"!!^I`! M9;`)(_``6P".K>@))Q`%#1`*96`&,R`CJ7*,6.(^2_``L\!=V@(*MD`#DD`+ MIH`)T?4/8U8KQI@$RJ4,32`(^I`E%((*&X<&DN!V(4`%QN`*87$K^E`#[Z,F MX"@*6)``.78D#1``K^`/E_\0!]I`,-H"%?I0`IIP"@@@!VU@!0C@!PP@#`IE M#%/0`'4`!'IP<>M!*03P`@BP"P*@`@P@"!A`")1@!DN`!$"`!?I`B>P1!\6P M"PC0`CB0`H(P``L`!P(0"0AP!1?@"D"!"A5@!(=@"K3@!J%@"G5@+V.F-D%@ M!IV@//N`"(PP";L`F/`A<;3PEV4@!P*`1I&'$Q@P`6'@`O=0#CAP!<4P"4_` M!#]P#3!) M!C,OP`P>`08R,`,(`0'6L`![,`H>01<`>*(`4B8`L9\9X'T1%?``-[<`+X 'V0^H$!``.S\_ ` end -----END PRIVACY-ENHANCED MESSAGE-----