QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Commission file number: 1-5794 |
Delaware | 38-1794485 | |||||
(State or Other | (IRS Employer | |||||
Jurisdiction | Identification No.) | |||||
of Incorporation) | ||||||
21001 Van Born Road, Taylor, Michigan | 48180 | |||||
(Address of Principal Executive Offices) | (Zip Code) |
Large accelerated filer þ
|
Accelerated filer o | Non-accelerated filer o | Smaller reporting company o | |||
(Do not check if a smaller reporting company) |
Class | Shares Outstanding at October 25, 2011 | |
Common stock, par value $1.00 per share | 357,800,000 |
Page No. | ||||||||
PART I. FINANCIAL INFORMATION |
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Item 1. Financial Statements: |
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1 | ||||||||
2 | ||||||||
3 | ||||||||
4 | ||||||||
5-19 | ||||||||
20-26 | ||||||||
27 | ||||||||
28-30 | ||||||||
EX-12 | ||||||||
EX-31.A | ||||||||
EX-31.B | ||||||||
EX-32 | ||||||||
EX-101 INSTANCE DOCUMENT | ||||||||
EX-101 SCHEMA DOCUMENT | ||||||||
EX-101 CALCULATION LINKBASE DOCUMENT | ||||||||
EX-101 LABELS LINKBASE DOCUMENT | ||||||||
EX-101 PRESENTATION LINKBASE DOCUMENT | ||||||||
EX-101 DEFINITION LINKBASE DOCUMENT |
September 30, | December 31, | |||||||
2011 | 2010 | |||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash investments |
$ | 1,610 | $ | 1,715 | ||||
Receivables |
1,133 | 888 | ||||||
Prepaid expenses and other |
118 | 129 | ||||||
Inventories: |
||||||||
Finished goods |
457 | 393 | ||||||
Raw material |
297 | 246 | ||||||
Work in process |
96 | 93 | ||||||
850 | 732 | |||||||
Total current assets |
3,711 | 3,464 | ||||||
Property and equipment, net |
1,656 | 1,737 | ||||||
Goodwill |
2,387 | 2,383 | ||||||
Other intangible assets, net |
256 | 269 | ||||||
Other assets |
202 | 287 | ||||||
Total assets |
$ | 8,212 | $ | 8,140 | ||||
LIABILITIES |
||||||||
Current liabilities: |
||||||||
Notes payable |
$ | 806 | $ | 66 | ||||
Accounts payable |
866 | 602 | ||||||
Accrued liabilities |
813 | 819 | ||||||
Total current liabilities |
2,485 | 1,487 | ||||||
Long-term debt |
3,224 | 4,032 | ||||||
Deferred income taxes and other |
1,016 | 1,039 | ||||||
Total liabilities |
6,725 | 6,558 | ||||||
Commitments and contingencies |
||||||||
EQUITY |
||||||||
Masco Corporations shareholders equity: |
||||||||
Common shares, par value $1 per share
Authorized shares: 1,400,000,000; issued
and outstanding: 2011 347,800,000;
2010 348,600,000 |
348 | 349 | ||||||
Preferred shares authorized: 1,000,000; issued
and outstanding: 2011 None; 2010 None |
| | ||||||
Paid-in capital |
50 | 42 | ||||||
Retained earnings |
638 | 720 | ||||||
Accumulated other comprehensive income |
231 | 273 | ||||||
Total Masco Corporations shareholders
equity |
1,267 | 1,384 | ||||||
Noncontrolling interest |
220 | 198 | ||||||
Total equity |
1,487 | 1,582 | ||||||
Total liabilities and equity |
$ | 8,212 | $ | 8,140 | ||||
1
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Net sales |
$ | 2,006 | $ | 1,957 | $ | 5,800 | $ | 5,857 | ||||||||
Cost of sales |
1,511 | 1,463 | 4,348 | 4,325 | ||||||||||||
Gross profit |
495 | 494 | 1,452 | 1,532 | ||||||||||||
Selling, general and administrative expenses |
393 | 392 | 1,238 | 1,233 | ||||||||||||
Operating profit |
102 | 102 | 214 | 299 | ||||||||||||
Other income (expense), net: |
||||||||||||||||
Interest expense |
(63 | ) | (63 | ) | (190 | ) | (188 | ) | ||||||||
Impairment charge for financial investments |
| | | (33 | ) | |||||||||||
Other, net |
22 | (1 | ) | 74 | (2 | ) | ||||||||||
(41 | ) | (64 | ) | (116 | ) | (223 | ) | |||||||||
Income before income taxes |
61 | 38 | 98 | 76 | ||||||||||||
Income tax expense |
12 | 31 | 63 | 53 | ||||||||||||
Net income |
49 | 7 | 35 | 23 | ||||||||||||
Less: Net income attributable to
noncontrolling interest |
13 | 12 | 37 | 32 | ||||||||||||
Net income (loss) attributable to Masco
Corporation |
$ | 36 | $ | (5 | ) | $ | (2 | ) | $ | (9 | ) | |||||
Earnings (loss) per common share attributable
to Masco Corporation: |
||||||||||||||||
Basic: |
||||||||||||||||
Net income (loss) |
$ | .10 | $ | (.02 | ) | $ | (.01 | ) | $ | (.03 | ) | |||||
Diluted: |
||||||||||||||||
Net income (loss) |
$ | .10 | $ | (.02 | ) | $ | (.01 | ) | $ | (.03 | ) | |||||
Amounts attributable to Masco Corporation: |
||||||||||||||||
Net income (loss) |
$ | 36 | $ | (5 | ) | $ | (2 | ) | $ | (9 | ) | |||||
2
Nine Months Ended | ||||||||
September 30, | ||||||||
2011 | 2010 | |||||||
CASH FLOWS FROM (FOR) OPERATING ACTIVITIES: |
||||||||
Cash provided by operations |
$ | 210 | $ | 333 | ||||
Increase in receivables |
(245 | ) | (136 | ) | ||||
Increase in inventories |
(118 | ) | (64 | ) | ||||
Increase in accounts payable and accrued
liabilities, net |
248 | 103 | ||||||
Net cash from operating activities |
95 | 236 | ||||||
CASH FLOWS FROM (FOR) FINANCING ACTIVITIES: |
||||||||
Increase in debt |
| 2 | ||||||
Payment of debt |
(3 | ) | (3 | ) | ||||
Issuance of Notes, net of issuance costs |
| 494 | ||||||
Retirement of Notes |
(58 | ) | (359 | ) | ||||
Purchase of Company common stock |
(30 | ) | (45 | ) | ||||
Cash dividends paid |
(80 | ) | (81 | ) | ||||
Dividend payment to noncontrolling interest |
(18 | ) | (15 | ) | ||||
Credit Agreement costs |
(1 | ) | (9 | ) | ||||
Net cash for financing activities |
(190 | ) | (16 | ) | ||||
CASH FLOWS FROM (FOR) INVESTING ACTIVITIES: |
||||||||
Capital expenditures |
(106 | ) | (88 | ) | ||||
Proceeds from disposition of: |
||||||||
Marketable securities |
49 | 5 | ||||||
Other financial investments, net |
43 | 6 | ||||||
Property and equipment |
19 | 16 | ||||||
Purchases of other financial investments |
(7 | ) | | |||||
Other, net |
(7 | ) | (26 | ) | ||||
Net cash for investing activities |
(9 | ) | (87 | ) | ||||
Effect of exchange rate changes on cash and cash
investments |
(1 | ) | (9 | ) | ||||
CASH AND CASH INVESTMENTS: |
||||||||
(Decrease) increase for the period |
(105 | ) | 124 | |||||
At January 1 |
1,715 | 1,413 | ||||||
At September 30 |
$ | 1,610 | $ | 1,537 | ||||
3
Accumulated | ||||||||||||||||||||||||
Common | Other | |||||||||||||||||||||||
Shares | Paid-In | Retained | Comprehensive | Noncontrolling | ||||||||||||||||||||
Total | ($1 par value) | Capital | Earnings | Income | Interest | |||||||||||||||||||
Balance, January 1, 2010 |
$ | 2,817 | $ | 350 | $ | 42 | $ | 1,871 | $ | 366 | $ | 188 | ||||||||||||
Net (loss) income |
23 | (9 | ) | 32 | ||||||||||||||||||||
Cumulative translation adjustments |
(37 | ) | (28 | ) | (9 | ) | ||||||||||||||||||
Unrealized (loss) on marketable
securities,
net of income tax (benefit) of $(1) |
(4 | ) | (4 | ) | ||||||||||||||||||||
Unrecognized prior service cost
and net |
||||||||||||||||||||||||
loss, net of income tax of $3 |
5 | 5 | ||||||||||||||||||||||
Total comprehensive loss |
(13 | ) | ||||||||||||||||||||||
Shares issued |
(1 | ) | 1 | (2 | ) | |||||||||||||||||||
Shares retired: |
||||||||||||||||||||||||
Repurchased |
(45 | ) | (3 | ) | (42 | ) | ||||||||||||||||||
Surrendered (non-cash) |
(6 | ) | (6 | ) | ||||||||||||||||||||
Cash dividends declared |
(81 | ) | (81 | ) | ||||||||||||||||||||
Dividend payment to noncontrolling
interest |
(15 | ) | (15 | ) | ||||||||||||||||||||
Stock-based compensation |
44 | 44 | ||||||||||||||||||||||
Balance, September 30, 2010 |
$ | 2,700 | $ | 348 | $ | 36 | $ | 1,781 | $ | 339 | $ | 196 | ||||||||||||
Balance, January 1, 2011 |
1,582 | 349 | 42 | 720 | 273 | 198 | ||||||||||||||||||
Net (loss) income |
35 | (2 | ) | 37 | ||||||||||||||||||||
Cumulative translation adjustments |
8 | 5 | 3 | |||||||||||||||||||||
Unrealized (loss) on marketable
securities,
net of income tax of $ |
(38 | ) | (38 | ) | ||||||||||||||||||||
Unrealized (loss) on interest rate
swaps,
net of income tax of $ |
(17 | ) | (17 | ) | ||||||||||||||||||||
Unrecognized prior service cost
and net
loss, net of income tax of $ |
8 | 8 | ||||||||||||||||||||||
Total comprehensive income |
(4 | ) | ||||||||||||||||||||||
Shares issued |
| 2 | (2 | ) | ||||||||||||||||||||
Shares retired: |
||||||||||||||||||||||||
Repurchased |
(30 | ) | (2 | ) | (28 | ) | ||||||||||||||||||
Surrendered (non-cash) |
(8 | ) | (1 | ) | (7 | ) | ||||||||||||||||||
Cash dividends declared |
(80 | ) | (80 | ) | ||||||||||||||||||||
Dividend payment to noncontrolling
interest |
(18 | ) | (18 | ) | ||||||||||||||||||||
Stock-based compensation |
45 | 45 | ||||||||||||||||||||||
Balance, September 30, 2011 |
$ | 1,487 | $ | 348 | $ | 50 | $ | 638 | $ | 231 | $ | 220 | ||||||||||||
4
A. | In the opinion of the Company, the accompanying unaudited condensed consolidated financial statements contain all adjustments, of a normal recurring nature, necessary to present fairly its financial position as at September 30, 2011 and the results of operations for the three months and nine months ended September 30, 2011 and 2010 and cash flows and shareholders equity for the nine months ended September 30, 2011 and 2010. The condensed consolidated balance sheet at December 31, 2010 was derived from audited financial statements. | |
Recently Issued Accounting Pronouncements | ||
Effective January 1, 2011, the Company adopted new accounting guidance which addresses how to determine whether a sales arrangement involves multiple deliverables or contains more than one unit of accounting, and how the sales arrangement consideration should be allocated among the separate units of accounting. The Company evaluated this new guidance and the adoption did not have an impact on the Companys financial position or its results of operations. | ||
In June 2011, new accounting guidance was issued regarding the presentation and disclosure of comprehensive income. The new guidance will require presentation of other comprehensive income items in the Companys consolidated statement of income; such items will no longer be included in the statement of shareholders equity. The new guidance will also require additional disclosure for reclassification of items from other comprehensive income to the Companys statement of income. The new guidance will be effective for the Company January 1, 2012. The Company does not expect this guidance to have a material impact on the Companys financial condition or its results of operations. | ||
In September 2011, new accounting guidance was issued regarding impairment testing of goodwill. The new guidance would allow the Company to make a qualitative determination regarding potential goodwill impairment before performing the quantitative impairment test. The new guidance will be effective for the Company January 1, 2012. The Company does not anticipate utilizing the qualitative provisions of the new guidance. |
5
B. | The changes in the carrying amount of goodwill for the nine months ended September 30, 2011, by segment, were as follows, in millions: |
Gross Goodwill | Accumulated | Net Goodwill | ||||||||||
At | Impairment | At | ||||||||||
Sep. 30, 2011 | Losses | Sep. 30, 2011 | ||||||||||
Cabinets and Related
Products |
$ | 588 | $ | (364 | ) | $ | 224 | |||||
Plumbing Products |
539 | (340 | ) | 199 | ||||||||
Installation and Other
Services |
1,819 | (762 | ) | 1,057 | ||||||||
Decorative Architectural
Products |
294 | | 294 | |||||||||
Other Specialty Products |
980 | (367 | ) | 613 | ||||||||
Total |
$ | 4,220 | $ | (1,833 | ) | $ | 2,387 | |||||
Gross Goodwill | Accumulated | Net Goodwill | ||||||||||||||||||
At | Impairment | At | At | |||||||||||||||||
Dec. 31, 2010 | Losses | Dec. 31, 2010 | Other(A) | Sep. 30, 2011 | ||||||||||||||||
Cabinets and Related
Products |
$ | 587 | $ | (364 | ) | $ | 223 | $ | 1 | $ | 224 | |||||||||
Plumbing Products |
536 | (340 | ) | 196 | 3 | 199 | ||||||||||||||
Installation and Other
Services |
1,819 | (762 | ) | 1,057 | | 1,057 | ||||||||||||||
Decorative Architectural
Products |
294 | | 294 | | 294 | |||||||||||||||
Other Specialty Products |
980 | (367 | ) | 613 | | 613 | ||||||||||||||
Total |
$ | 4,216 | $ | (1,833 | ) | $ | 2,383 | $ | 4 | $ | 2,387 | |||||||||
(A) Other principally includes the effect of foreign currency translation. |
Other indefinite-lived intangible assets were $185 million at both September 30, 2011 and December 31, 2010, respectively, and principally included registered trademarks. The carrying value of the Companys definite-lived intangible assets was $71 million (net of accumulated amortization of $80 million) at September 30, 2011 and $84 million (net of accumulated amortization of $75 million) at December 31, 2010, and principally included customer relationships and non-compete agreements. | ||
As a result of continued losses in the commercial businesses in the Installation and Other Services segment, at September 30, 2011, the Company recorded a pre-tax impairment charge of $7 million related to certain intangible assets for these businesses. The Company then assessed the goodwill associated with these businesses and determined no impairment was necessary at September 30, 2011. |
6
C. | Depreciation and amortization expense was $188 million and $209 million for the nine months ended September 30, 2011 and 2010, respectively. |
D. | The Company has maintained investments in available-for-sale securities and a number of private equity funds, principally as part of its tax planning strategies, as any gains enhance the utilization of any current and future tax capital losses. Financial investments included in other assets were as follows, in millions: |
September 30, | December 31, | |||||||
2011 | 2010 | |||||||
Auction rate securities |
$ | 22 | $ | 22 | ||||
TriMas Corporation common stock |
| 40 | ||||||
Total recurring investments |
22 | 62 | ||||||
Private equity funds |
92 | 106 | ||||||
Other investments |
5 | 13 | ||||||
Total non-recurring investments |
97 | 119 | ||||||
Total |
$ | 119 | $ | 181 | ||||
The Companys investments in available-for-sale securities at September 30, 2011 and December 31, 2010 were as follows, in millions: |
Pre-tax | ||||||||||||||||
Unrealized | Unrealized | Recorded | ||||||||||||||
Cost Basis | Gains | Losses | Basis | |||||||||||||
September 30, 2011 |
$ | 19 | $ | 3 | $ | | $ | 22 | ||||||||
December 31, 2010 |
$ | 22 | $ | 40 | $ | | $ | 62 |
Recurring Fair Value Measurements. Financial assets and (liabilities) measured at fair value on a recurring basis at each reporting period and the amounts for each level within the fair value hierarchy were as follows, in millions: |
Fair Value Measurements Using | ||||||||||||||||
Significant | ||||||||||||||||
Quoted | Other | Significant | ||||||||||||||
Market | Observable | Unobservable | ||||||||||||||
Sep. 30, | Prices | Inputs | Inputs | |||||||||||||
2011 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
Auction rate securities |
$ | 22 | $ | | $ | | $ | 22 | ||||||||
Total |
$ | 22 | $ | | $ | | $ | 22 | ||||||||
Fair Value Measurements Using | ||||||||||||||||
Significant | ||||||||||||||||
Quoted | Other | Significant | ||||||||||||||
Market | Observable | Unobservable | ||||||||||||||
Dec. 31, | Prices | Inputs | Inputs | |||||||||||||
2010 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
Auction rate securities |
$ | 22 | $ | | $ | | $ | 22 | ||||||||
TriMas Corporation |
40 | 40 | | | ||||||||||||
Total |
$ | 62 | $ | 40 | $ | | $ | 22 | ||||||||
7
The fair value of the auction rate securities held by the Company have been estimated, on a recurring basis, using a discounted cash flow model (Level 3 input). The significant inputs in the discounted cash flow model used to value the auction rate securities include: expected maturity of auction rate securities, discount rate used to determine the present value of expected cash flows and the assumptions for credit defaults, since the auction rate securities are backed by credit default swap agreements. | ||
The following tables summarize the changes in Level 3 financial assets measured at fair value on a recurring basis for the nine months ended September 30, 2011 and the year ended December 31, 2010, in millions: |
Auction Rate | ||||
Securities | ||||
Fair value January 1, 2011 |
$ | 22 | ||
Total losses included in earnings |
| |||
Unrealized (losses) |
| |||
Purchases |
| |||
Settlements |
| |||
Transfer from Level 3 to Level 2 |
| |||
Fair value at September 30, 2011 |
$ | 22 | ||
During 2010, the Company converted all of its holdings in Asahi Tec preferred stock into common stock, which was sold in its entirety in 2010 in open market transactions. |
Asahi Tec | Auction Rate | |||||||||||
Preferred Stock | Securities | Total | ||||||||||
Fair value January 1, 2010 |
$ | 71 | $ | 22 | $ | 93 | ||||||
Total losses included in earnings |
(28 | ) | | (28 | ) | |||||||
Unrealized losses |
(23 | ) | | (23 | ) | |||||||
Purchases, issuances, settlements |
| | | |||||||||
Transfers from Level 3 to Level 2 |
(20 | ) | | (20 | ) | |||||||
Fair value
at December 31, 2010 |
$ | | $ | 22 | $ | 22 | ||||||
Non-Recurring Fair Value Measurements. For the nine months ended September 30, 2011 and 2010, the Company did not measure any financial investments on a non-recurring basis, as there was no other-than-temporary decline in the estimated value of private equity funds. Financial investments measured at fair value on a non-recurring basis during 2010 and the amounts for each level within the fair value hierarchy were as follows, in millions: |
Fair Value Measurements Using | ||||||||||||||||||||
Significant | ||||||||||||||||||||
Quoted | Other | Significant | ||||||||||||||||||
Market | Observable | Unobservable | Total | |||||||||||||||||
Dec. 31, | Prices | Inputs | Inputs | Gains | ||||||||||||||||
2010 | (Level 1) | (Level 2) | (Level 3) | (Losses) | ||||||||||||||||
Private equity funds |
$ | 2 | $ | | $ | | $ | 2 | $ | (4 | ) | |||||||||
Other private
investments |
| | | | (2 | ) | ||||||||||||||
$ | 2 | $ | | $ | | $ | 2 | $ | (6 | ) | ||||||||||
8
The Company did not have any transfers between Level 1 and Level 2 financial assets in the first nine months of 2011 or in the full-year 2010. |
Income and impairment charges for financial investments were as follows, in millions: |
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Realized gains (losses) |
||||||||||||||||
from: |
||||||||||||||||
TriMas Corporation
common stock |
$ | | $ | | $ | 41 | $ | | ||||||||
Private equity funds |
19 | | 28 | | ||||||||||||
Other financial investments |
| (3 | ) | | (2 | ) | ||||||||||
Total realized gains |
$ | 19 | $ | (3 | ) | $ | 69 | $ | (2 | ) | ||||||
Impairment charges: |
||||||||||||||||
Asahi Tec Preferred Stock |
$ | | $ | | $ | | $ | (28 | ) | |||||||
Private equity funds |
| | | (3 | ) | |||||||||||
Other private investments |
| | | (2 | ) | |||||||||||
Total impairment charges |
$ | | $ | | $ | | $ | (33 | ) | |||||||
The fair value of the Companys short-term and long-term fixed-rate debt instruments is based principally upon quoted market prices for the same or similar issues or the current rates available to the Company for debt with similar terms and remaining maturities. The aggregate estimated market value of short-term and long-term debt at September 30, 2011 was approximately $3.9 billion, compared with the aggregate carrying value of $4.0 billion. The aggregate estimated market value of short-term and long-term debt at December 31, 2010 was approximately $4.2 billion, compared with the aggregate carrying value of $4.1 billion. |
E. | In August 2011, the Company entered into new interest rate swap agreements to hedge the volatility in interest payments associated with the expected debt issuance planned to occur in 2012. These interest rate swaps are designed as cash flow hedges and effectively fix interest rates on the forecasted debt issuance based on 3-month LIBOR. The average fixed rate on the interest rate swaps is 2.8%. At September 30, 2011, the interest rate swap agreements covered a notional amount of $400 million, which we expect to issue in connection with the maturity of the Companys $791 million fixed-rate debt due July 15, 2012 with an interest rate of 5.875%. At September 30, 2011, the interest rate swaps are considered 100 percent effective; therefore, the market valuation of $17 million is recorded in other comprehensive income in the Companys statement of shareholders equity with a corresponding increase to accrued liabilities in the Companys condensed consolidated balance sheet at September 30, 2011. |
9
During 2011 and 2010, the Company entered into foreign currency exchange contracts to hedge currency fluctuations related to intercompany loans denominated in non-functional currencies. Based upon period-end market prices, the Company had recorded assets (liabilities) of $5 million and $(2) million to reflect contract prices at September 30, 2011 and December 31, 2010, respectively. Such gains (losses) are partially offset by gains (losses) related to the translation of loans and accounts denominated in non-functional currencies. Gains (losses) related to these contracts are recorded in the Companys consolidated statements of income in other income (expense), net. For the nine months ended September 30, 2011 and 2010, the Company had recorded gains net of $1 million and $2 million, respectively, related to these foreign currency exchange contracts. For the three months ended September 30, 2011 and 2010, the Company had recorded gains (losses) net of $8 million and $(8) million, respectively, related to these foreign currency exchange contracts. | ||
During 2011 and 2010, the Company, including certain of its European operations, also entered into foreign currency forward contracts to manage a portion of its exposure to currency fluctuations in the European euro and the U.S. dollar. Based upon period-end market prices, the Company had recorded liabilities of $ million and $3 million to reflect contract prices at September 30, 2011 and December 31, 2010, respectively. Gains (losses) related to these contracts are recorded in the Companys consolidated statements of income in other income (expense), net. For the nine months ended September 30, 2011 and 2010, the Company had recorded gains (losses) net of $3 million and $(1) million, respectively, related to these foreign currency exchange contracts. For the three months ended September 30, 2011 and 2010, the Company had recorded gains net of $2 million and $1 million, respectively, related to these foreign currency exchange contracts. | ||
In the event that the counterparties fail to meet the terms of the foreign currency forward contracts, the Companys exposure is limited to the aggregate foreign currency rate differential with such institutions. | ||
During 2011 and 2010, the Company entered into several contracts to manage its exposure to increases in the price of copper and zinc. Based upon period-end market prices, the Company had recorded (liabilities) assets of $(5) million and $7 million to reflect contract prices at September 30, 2011 and December 31, 2010, respectively. Gains (losses) related to these contracts are recorded in the Companys consolidated statements of income in cost of goods sold. For the nine months ended September 30, 2011 and 2010, the Company had recorded (losses) gains net of $(10) million and $3 million, respectively, related to these commodity contracts. For the three months ended September 30, 2011 and 2010, the Company had recorded (losses) gains net of $(11) million and $4 million, respectively, related to these commodity contracts. | ||
The fair value of these derivative contracts is estimated on a recurring basis, quarterly, using Level 2 inputs (significant other observable inputs). |
10
F. | Changes in the Companys warranty liability were as follows, in millions: |
Nine Months Ended | Twelve Months Ended | |||||||
September 30, 2011 | December 31, 2010 | |||||||
Balance at January 1 |
$ | 107 | $ | 109 | ||||
Accruals for warranties
issued during the period |
20 | 42 | ||||||
Accruals related to
pre-existing warranties |
7 | (4 | ) | |||||
Settlements made (in cash or
kind) during the period |
(29 | ) | (37 | ) | ||||
Other, net |
(2 | ) | (3 | ) | ||||
Balance at end of period |
$ | 103 | $ | 107 | ||||
G. | Based on the limitations of the debt to total capitalization covenant, at September 30, 2011, the Company had additional borrowing capacity, subject to availability, of up to $979 million. Additionally, at September 30, 2011, the Company could absorb a reduction to shareholders equity of approximately $527 million, and remain in compliance with the debt to total capitalization covenant. | |
In order to borrow under the Credit Agreement, there must not be any default in the Companys covenants in the credit agreement (i.e., in addition to the two financial covenants, principally limitations on subsidiary debt, negative pledge restrictions, legal compliance requirements and maintenance of properties and insurance) and the Companys representations and warranties in the 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, 2009, and, in each case, no material ERISA or environmental non-compliance and no material tax deficiency). The Company was in compliance with all covenants and no borrowings have been made at September 30, 2011. | ||
At September 30, 2011, no principal amount at maturity of Zero Coupon Convertible Senior Notes due 2031 (Notes) was outstanding. During the third quarter of 2011, holders of $108.1 million principal amount at maturity with an accreted value of $58.1 million of Notes required the Company to repurchase the Notes for cash of $57.9 million; the remaining Notes were retired. |
H. | The Companys 2005 Long Term Stock Incentive Plan (the 2005 Plan) provides for the issuance of stock-based incentives in various forms to employees and non-employee Directors of the Company. At September 30, 2011, outstanding stock-based incentives were in the form of long-term stock awards, stock options, phantom stock awards and stock appreciation rights. Pre-tax compensation expense and the related income tax benefit, for these stock-based incentives, were as follows, in millions: |
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Long-term stock awards |
$ | 9 | $ | 9 | $ | 28 | $ | 28 | ||||||||
Stock options |
6 | 6 | 17 | 17 | ||||||||||||
Phantom stock awards and stock
appreciation rights |
(5 | ) | 1 | (3 | ) | | ||||||||||
Total |
$ | 10 | $ | 16 | $ | 42 | $ | 45 | ||||||||
Income tax benefit (before
valuation allowance) |
$ | 4 | $ | 6 | $ | 16 | $ | 17 | ||||||||
11
Long-Term Stock Awards | ||
Long-term stock awards are granted to key employees and non-employee Directors of the Company and do not cause net share dilution inasmuch as the Company continues the practice of repurchasing and retiring an equal number of shares on the open market. | ||
The Companys long-term stock award activity was as follows, shares in millions: |
Nine Months Ended | ||||||||
September 30, | ||||||||
2011 | 2010 | |||||||
Unvested stock award shares at January 1 |
10 | 9 | ||||||
Weighted average grant date fair value |
$ | 19 | $ | 21 | ||||
Stock award shares granted |
2 | 3 | ||||||
Weighted average grant date fair value |
$ | 13 | $ | 14 | ||||
Stock award shares vested |
2 | 2 | ||||||
Weighted average grant date fair value |
$ | 20 | $ | 23 | ||||
Stock award shares forfeited |
| | ||||||
Weighted average grant date fair value |
$ | 18 | $ | 19 | ||||
Unvested stock award shares at September 30 |
10 | 10 | ||||||
Weighted average grant date fair value |
$ | 17 | $ | 19 |
At September 30, 2011 and 2010, there was $122 million and $136 million, respectively, of total unrecognized compensation expense related to unvested stock awards; such awards had a weighted average remaining vesting period of five years in both periods. | ||
The total market value (at the vesting date) of stock award shares which vested during the nine months ended September 30, 2011 and 2010 was $28 million and $22 million, respectively. | ||
Stock Options | ||
Stock options are granted to key employees of the Company. The exercise price equals the market price of the Companys common stock at the grant date. These options generally become exercisable (vest ratably) over five years beginning on the first anniversary from the date of grant and expire no later than 10 years after the grant date. | ||
The Company granted 2,372,500 of stock option shares in the nine months ended September 30, 2011 with a grant date exercise price approximating $13 per share. In the first nine months of 2011, 2,830,000 stock option shares were forfeited (including options that expired unexercised). |
12
MASCO CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (continued) |
The Companys stock option activity was as follows, shares in millions: |
Nine Months Ended | ||||||||
September 30, | ||||||||
2011 | 2010 | |||||||
Option shares outstanding, January 1 |
37 | 36 | ||||||
Weighted average exercise price |
$ | 21 | $ | 23 | ||||
Option shares granted, including restoration
options |
2 | 5 | ||||||
Weighted average exercise price |
$ | 13 | $ | 14 | ||||
Option shares exercised |
| | ||||||
Aggregate intrinsic value on date of
exercise (A) |
$1 million | $1 million | ||||||
Weighted average exercise price |
$ | 8 | $ | 8 | ||||
Option shares forfeited |
3 | 4 | ||||||
Weighted average exercise price |
$ | 22 | $ | 23 | ||||
Option shares outstanding, September 30 |
36 | 37 | ||||||
Weighted average exercise price |
$ | 21 | $ | 21 | ||||
Weighted average remaining option term
(in years) |
6 | 6 | ||||||
Option shares vested and expected to vest,
September 30 |
36 | 37 | ||||||
Weighted average exercise price |
$ | 21 | $ | 22 | ||||
Aggregate intrinsic value (A) |
$million | $15 million | ||||||
Weighted average remaining option term
(in years) |
6 | 6 | ||||||
Option shares exercisable (vested),
September 30 |
24 | 22 | ||||||
Weighted average exercise price |
$ | 24 | $ | 25 | ||||
Aggregate intrinsic value (A) |
$million | $3 million | ||||||
Weighted average remaining option term
(in years) |
4 | 4 |
(A) Aggregate intrinsic value is calculated using the Companys stock price at each respective date, less the exercise price (grant date price) multiplied by the number of shares. |
At September 30, 2011 and 2010, there was $39 million and $50 million, respectively, of unrecognized compensation expense (using the Black-Scholes option pricing model) related to unvested stock options; such options had a weighted average vesting period of three years in both 2011 and 2010. |
13
The weighted average grant date fair value of option shares granted and the assumptions used to estimate those values using a Black-Scholes option pricing model, were as follows: |
Nine Months Ended | ||||||||
September 30, | ||||||||
2011 | 2010 | |||||||
Weighted average grant date fair value |
$ | 5.10 | $ | 5.30 | ||||
Risk-free interest rate |
2.72 | % | 2.77 | % | ||||
Dividend yield |
2.34 | % | 2.17 | % | ||||
Volatility factor |
49.00 | % | 46.01 | % | ||||
Expected option life |
6 years | 6 years |
I. | The Company sponsors qualified defined-benefit or defined-contribution retirement plans for most of its employees. In addition to the Companys qualified defined-benefit pension plans, the Company has unfunded non-qualified defined-benefit pension plans covering certain employees, which provide for benefits in addition to those provided by the qualified pension plans. Substantially all salaried employees participate in non-contributory defined-contribution retirement plans, to which payments are determined annually by the Organization and Compensation Committee of the Board of Directors. | |
During the nine months ended September 30, 2011, the Company adjusted certain employee expense related accruals which resulted in a $5 million reduction to expenses related to the fourth quarter of 2010. The effect was not material to the previously issued financial statements. | ||
Effective January 1, 2010, the Company froze all future benefit accruals under substantially all of the Companys domestic qualified and non-qualified defined-benefit pension plans. Future benefit accruals related to the Companys foreign non-qualified plans were frozen several years ago. | ||
Net periodic pension cost for the Companys defined-benefit pension plans was as follows, in millions: |
Three Months Ended September 30, | ||||||||||||||||
2011 | 2010 | |||||||||||||||
Qualified | Non-Qualified | Qualified | Non-Qualified | |||||||||||||
Service cost |
$ | 1 | $ | | $ | 2 | $ | | ||||||||
Interest cost |
12 | 2 | 11 | 3 | ||||||||||||
Expected return on plan assets |
(9 | ) | | (9 | ) | | ||||||||||
Amortization of prior service cost |
| | | | ||||||||||||
Amortization of net loss |
2 | 1 | 3 | | ||||||||||||
Net periodic pension cost |
$ | 6 | $ | 3 | 7 | 3 | ||||||||||
Nine Months Ended September 30, | ||||||||||||||||
2011 | 2010 | |||||||||||||||
Qualified | Non-Qualified | Qualified | Non-Qualified | |||||||||||||
Service cost |
$ | 2 | $ | | $ | 4 | $ | | ||||||||
Interest cost |
34 | 6 | 34 | 7 | ||||||||||||
Expected return on plan assets |
(25 | ) | | (27 | ) | | ||||||||||
Amortization of prior service cost |
| | | | ||||||||||||
Amortization of net loss |
7 | 1 | 8 | | ||||||||||||
Net periodic pension cost |
$ | 18 | $ | 7 | $ | 19 | $ | 7 | ||||||||
14
At December 31, 2010, the Company reported a net liability of $522 million, of which $163 million was related to our non-qualified, supplemental retirement plans, which are not subject to the funding requirements of the Pension Protection Act. In accordance with the Pension Protection Act of 2006, the Adjusted Funding Target Attainment Percentage (AFTAP) for the various defined-benefit pension plans ranges from 62 percent to 86 percent. At December 31, 2010, the Company had one plan that offered accelerated benefits (i.e., lump sum distributions) and the AFTAP for that plan is less than 80 percent; therefore, the plan is prohibited from allowing participants to receive any lump sum distribution in excess of 50 percent of the benefit value. In addition, plan amendments increasing benefits or liabilities for that plan are also prohibited. |
15
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||
2011 | 2010 | 2011 | 2010 | 2011 | 2010 | 2011 | 2010 | |||||||||||||||||||||||||
Net Sales(A) | Operating Profit (Loss) | Net Sales(A) | Operating Profit (Loss) | |||||||||||||||||||||||||||||
The Companys operations by |
||||||||||||||||||||||||||||||||
segment were: |
||||||||||||||||||||||||||||||||
Cabinets and Related Products |
$ | 307 | $ | 357 | $ | (34 | ) | $ | (61 | ) | $ | 944 | $ | 1,160 | $ | (111 | ) | $ | (113 | ) | ||||||||||||
Plumbing Products |
768 | 686 | 91 | 97 | 2,239 | 2,031 | 270 | 267 | ||||||||||||||||||||||||
Installation and Other Services |
315 | 292 | (27 | ) | (22 | ) | 863 | 874 | (93 | ) | (87 | ) | ||||||||||||||||||||
Decorative Architectural Products |
455 | 463 | 88 | 104 | 1,322 | 1,357 | 247 | 300 | ||||||||||||||||||||||||
Other Specialty Products |
161 | 159 | 12 | 11 | 432 | 435 | 2 | 16 | ||||||||||||||||||||||||
Total |
$ | 2,006 | $ | 1,957 | $ | 130 | $ | 129 | $ | 5,800 | $ | 5,857 | $ | 315 | $ | 383 | ||||||||||||||||
The Companys operations by
geographic area were: |
||||||||||||||||||||||||||||||||
North America |
$ | 1,524 | $ | 1,528 | $ | 80 | $ | 79 | $ | 4,420 | $ | 4,617 | $ | 178 | $ | 257 | ||||||||||||||||
International, principally Europe |
482 | 429 | 50 | 50 | 1,380 | 1,240 | 137 | 126 | ||||||||||||||||||||||||
Total |
$ | 2,006 | $ | 1,957 | 130 | 129 | $ | 5,800 | $ | 5,857 | 315 | 383 | ||||||||||||||||||||
General corporate expense, net |
(27 | ) | (27 | ) | (95 | ) | (84 | ) | ||||||||||||||||||||||||
Charge for litigation settlement (B) |
(1 | ) | | (6 | ) | | ||||||||||||||||||||||||||
Operating profit |
102 | 102 | 214 | 299 | ||||||||||||||||||||||||||||
Other income (expense), net |
(41 | ) | (64 | ) | (116 | ) | (223 | ) | ||||||||||||||||||||||||
Income before income taxes |
$ | 61 | $ | 38 | $ | 98 | $ | 76 | ||||||||||||||||||||||||
(A) | Inter-segment sales were not material. | |
(B) | Charge for litigation settlement relates to a business unit in the Cabinets and Related Products segment and the Other Specialty Products segment. |
16
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Income from cash and |
||||||||||||||||
cash investments |
$ | 2 | $ | 2 | $ | 5 | $ | 4 | ||||||||
Other interest income |
1 | | 1 | 1 | ||||||||||||
Income (loss) from
financial investments |
||||||||||||||||
(Note D) |
19 | (3 | ) | 69 | (2 | ) | ||||||||||
Other items, net |
| | (1 | ) | (5 | ) | ||||||||||
Total other net |
$ | 22 | $ | (1 | ) | $ | 74 | $ | (2 | ) | ||||||
Other items, net, included $1 million and $ million of currency gains for the three months and nine months ended September 30, 2011, respectively. Other items, net, included $4 million and $(2) million of currency gains (losses) for the three months and nine months ended September 30, 2010, respectively. |
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Numerator (basic and diluted): |
||||||||||||||||
Net income (loss) |
$ | 36 | $ | (5 | ) | $ | (2 | ) | $ | (9 | ) | |||||
Allocation to unvested
restricted stock awards |
(1 | ) | (1 | ) | (2 | ) | (2 | ) | ||||||||
Net income (loss) attributable
to common shareholders |
35 | (6 | ) | (4 | ) | (11 | ) | |||||||||
Net income (loss) available to
common shareholders |
$ | 35 | $ | (6 | ) | $ | (4 | ) | $ | (11 | ) | |||||
Denominator: |
||||||||||||||||
Basic common shares (based
upon weighted average) |
348 | 349 | 348 | 349 | ||||||||||||
Add: |
||||||||||||||||
Contingent common shares |
| | | | ||||||||||||
Stock option dilution |
| | | | ||||||||||||
Diluted common shares |
348 | 349 | 348 | 349 | ||||||||||||
17
In the first nine months of 2011, the Company granted 2 million shares of long-term stock awards; to offset the dilutive impact of these awards, the Company also repurchased and retired approximately 2 million shares of Company common stock, for cash aggregating $30 million. At September 30, 2011, the Company had 25 million shares of its common stock remaining under the July 2007 Board of Directors repurchase authorization. |
On the basis of amounts paid (declared), cash dividends per common share were $.075 ($.075) and $.225 ($.225), respectively, for the three months and nine months ended September 30, 2011 and the three months and nine months ended September 30, 2010. |
As previously disclosed, a lawsuit was brought against the Company and a number of its insulation installation companies alleging that certain of their practices violated provisions of the federal antitrust laws. The case was filed in October 2004 in the United States District Court for the Northern District of Georgia by Columbus Drywall & Insulation, Inc., Leo Jones Insulation, Inc., Southland Insulators, Inc., Southland Insulators of Maryland, Inc. d/b/a Devere Insulation, Southland Insulators of Delaware LLC d/b/a Delmarva Insulation, and Whitson Insulation Company of Grand Rapids, Inc. against the Company, its subsidiaries Masco Contractors Services Group Corp., Masco Contractor Services Central, Inc. (MCS Central) and Masco Contractor Services East, Inc., and several insulation manufacturers (the Columbus Drywall case). In February 2009, the court certified a class of 377 insulation contractors. Another suit was filed in March 2003 in the United States District Court for the Northern District of Georgia by Wilson Insulation Company, Wilson Insulation of Augusta, Inc. and The Wilson Insulation Group, Inc. against the Company, Masco Contractor Services, Inc., and MCS Central that alleged anticompetitive conduct. This case has been removed from the courts active docket. In March 2007, Albert Von Der Werth and Valerie Good filed suit in the United States District Court for the Northern District of California against the Company, its subsidiary Masco Contractor Services, and several insulation manufacturers seeking class action status and alleging anticompetitive conduct. This case was subsequently transferred to the United States District Court for the Northern District of Georgia and has been administratively stayed by the court. An additional suit, which was filed in September 2005 and alleged anticompetitive conduct, was dismissed with prejudice in December 2006. |
The Company is vigorously defending the Columbus Drywall case. Based upon the advice of its outside counsel, the Company believes that the conduct of the Company and its insulation installation companies, which is the subject of the above-described lawsuits, has not violated any antitrust laws. The Company is unable at this time to reliably estimate any potential liability which might occur from an adverse judgment. There cannot be any assurance that the Company will ultimately prevail in these lawsuits, or, if unsuccessful, that the ultimate liability would not be material and would not have a material adverse effect on its businesses or the methods used by its insulation installation companies in doing business. |
18
N. | The effective tax rate was 64 percent for the nine months ended September 30, 2011 primarily due to an increase in the valuation allowance related to net operating losses and losses in certain jurisdictions providing no tax benefit. |
As a result of tax audit closings, settlements and expiration of applicable statutes of limitations in various jurisdictions within the next 12 months, the Company anticipates that it is reasonably possible that the liability for uncertain tax positions could be reduced by approximately $6 million. |
O. | In October 2011, the Company determined that several businesses in the Installation and Other Services segment related to commercial drywall installation, millwork and framing are not core to the Companys long-term growth strategy and, accordingly, has embarked on a plan of disposition. The businesses had combined 2010 net sales of approximately $100 million and aggregate operating losses of $10 million (excluding any impairment charges). The Company expects proceeds from the dispositions will be less than the net book value of the businesses. The dispositions are expected to be completed within the next twelve months. |
19
Item 2. | MANAGEMENTS DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
Three Months Ended | Percent | |||||||||||
September 30, | (Decrease) Increase | |||||||||||
2011 | 2010 | 2011 vs. 2010 | ||||||||||
Net Sales: |
||||||||||||
Cabinets and Related Products |
$ | 307 | $ | 357 | (14 | %) | ||||||
Plumbing Products |
768 | 686 | 12 | % | ||||||||
Installation and Other Services |
315 | 292 | 8 | % | ||||||||
Decorative Architectural Products |
455 | 463 | (2 | %) | ||||||||
Other Specialty Products |
161 | 159 | 1 | % | ||||||||
Total |
$ | 2,006 | $ | 1,957 | 3 | % | ||||||
North America |
$ | 1,524 | $ | 1,528 | | % | ||||||
International, principally Europe |
482 | 429 | 12 | % | ||||||||
Total |
$ | 2,006 | $ | 1,957 | 3 | % | ||||||
Nine Months Ended | ||||||||||||
September 30, | ||||||||||||
2011 | 2010 | |||||||||||
Net Sales: |
||||||||||||
Cabinets and Related Products |
$ | 944 | $ | 1,160 | (19 | %) | ||||||
Plumbing Products |
2,239 | 2,031 | 10 | % | ||||||||
Installation and Other Services |
863 | 874 | (1 | %) | ||||||||
Decorative Architectural Products |
1,322 | 1,357 | (3 | %) | ||||||||
Other Specialty Products |
432 | 435 | (1 | %) | ||||||||
Total |
$ | 5,800 | $ | 5,857 | (1 | %) | ||||||
North America |
$ | 4,420 | $ | 4,617 | (4 | %) | ||||||
International, principally Europe |
1,380 | 1,240 | 11 | % | ||||||||
Total |
$ | 5,800 | $ | 5,857 | (1 | %) | ||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Operating Profit (Loss) Margins: (A) |
||||||||||||||||
Cabinets and Related Products |
(11.1 | %) | (17.1 | %) | (11.8 | %) | (9.7 | %) | ||||||||
Plumbing Products |
11.8 | % | 14.1 | % | 12.1 | % | 13.1 | % | ||||||||
Installation and Other Services |
(8.6 | %) | (7.5 | %) | (10.8 | %) | (10.0 | %) | ||||||||
Decorative Architectural Products |
19.3 | % | 22.5 | % | 18.7 | % | 22.1 | % | ||||||||
Other Specialty Products |
7.5 | % | 6.9 | % | .5 | % | 3.7 | % | ||||||||
North America |
5.2 | % | 5.2 | % | 4.0 | % | 5.6 | % | ||||||||
International, principally Europe |
10.4 | % | 11.7 | % | 9.9 | % | 10.2 | % | ||||||||
Total |
6.5 | % | 6.6 | % | 5.4 | % | 6.5 | % | ||||||||
Total operating profit margin,
as reported |
5.1 | % | 5.2 | % | 3.7 | % | 5.1 | % |
(A) | Before general corporate expense, net and the charge for litigation settlement; see Note J to the condensed consolidated financial statements. |
20
Item 2. | MANAGEMENTS DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Net sales, as reported |
$ | 2,006 | $ | 1,957 | $ | 5,800 | $ | 5,857 | ||||||||
Acquisitions (none) |
| | | | ||||||||||||
Net sales, excluding
acquisitions |
2,006 | 1,957 | 5,800 | 5,857 | ||||||||||||
Currency translation |
(40 | ) | | (94 | ) | | ||||||||||
Net sales, excluding
acquisitions and the
effect of currency
translation |
$ | 1,966 | $ | 1,957 | $ | 5,706 | $ | 5,857 | ||||||||
21
Item 2. | MANAGEMENTS DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
22
Item 2. | MANAGEMENTS DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
23
Item 2. | MANAGEMENTS DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
24
Item 2. | MANAGEMENTS DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
25
Item 2. | MANAGEMENTS DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
26
a. | Evaluation of Disclosure Controls and Procedures. |
The Company, with the participation of the Chief Executive Officer and Chief Financial Officer, conducted an evaluation of its disclosure controls and procedures as required by Exchange Act Rules 13a-15(b) and 15d-15(b) as of September 30, 2011. Based on this evaluation, the Companys management, including the Chief Executive Officer and Chief Financial Officer, concluded that the Companys disclosure controls and procedures were effective. |
b. | Changes in Internal Control over Financial Reporting. |
In connection with the evaluation of the Companys internal control over financial reporting that occurred during the quarter ended September 30, 2011, which is required under the Securities Exchange Act of 1934 by paragraph (d) of Exchange Rules 13a-15 or 15d-15 (as defined in paragraph (f) of Rule 13a-15), management determined that there was no change that materially affected or is reasonably likely to materially affect internal control over financial reporting. |
27
28
12
|
- | Computation of Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends | ||
31a
|
- | Certification by Chief Executive Officer Required by Rule 13a- 14(a) or 15d-14(a) of the Securities Exchange Act of 1934 | ||
31b
|
- | Certification by Chief Financial Officer Required by Rule 13a- 14(a) or 15d-14(a) of the Securities Exchange Act of 1934 | ||
32
|
- | Certification Required by Rule 13a-14(b) or 15d-14(b) of the Securities Exchange Act of 1934 and Section 1350 of Chapter 63 of Title 18 of the United States Code | ||
101
|
- | Interactive Data File |
29
MASCO CORPORATION |
||||
By: | /s/ John G. Sznewajs | |||
Name: | John G. Sznewajs | |||
October 28, 2011 | Title: | Vice President, Treasurer and Chief Financial Officer | ||
30
Exhibit 12
|
Computation of Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends | |
Exhibit 31a
|
Certification by Chief Executive Officer Required by Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934 | |
Exhibit 31b
|
Certification by Chief Financial Officer Required by Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934 | |
Exhibit 32
|
Certification Required by Rule 13a-14(b) or 15d-14(b) of the Securities Exchange Act of 1934 and Section 1350 of Chapter 63 of Title 18 of the United States Code | |
Exhibit 101
|
Interactive Data File |
31
(Dollars in Millions) | ||||||||||||||||||||||||
Nine | ||||||||||||||||||||||||
Months | ||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||
Sep. 30, | Year Ended December 31, | |||||||||||||||||||||||
2011 | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||||||
Earnings Before Income Taxes,
Preferred Stock Dividends
and Fixed Charges: |
||||||||||||||||||||||||
Income (loss) from continuing
operations before income taxes |
$ | 98 | $ | (777 | ) | $ | (151 | ) | $ | (193 | ) | $ | 876 | $ | 891 | |||||||||
Deduct equity in undistributed loss
(earnings) of fifty-percent-or-
less-owned companies |
| | | (1 | ) | (2 | ) | (1 | ) | |||||||||||||||
Add interest on indebtedness, net |
189 | 249 | 224 | 228 | 258 | 241 | ||||||||||||||||||
Add amortization of debt expense |
5 | 7 | 5 | 4 | 5 | 4 | ||||||||||||||||||
Add estimated interest factor for
rentals |
25 | 36 | 44 | 51 | 55 | 52 | ||||||||||||||||||
Earnings before income taxes,
noncontrolling interest, net,
fixed charges and preferred
stock dividends |
$ | 317 | $ | (485 | ) | $ | 122 | $ | 89 | $ | 1,192 | $ | 1,187 | |||||||||||
Fixed Charges: |
||||||||||||||||||||||||
Interest on indebtedness |
$ | 186 | $ | 246 | $ | 221 | $ | 228 | $ | 259 | $ | 241 | ||||||||||||
Amortization of debt expense |
5 | 7 | 5 | 4 | 5 | 4 | ||||||||||||||||||
Estimated interest factor for
rentals |
25 | 36 | 44 | 51 | 55 | 52 | ||||||||||||||||||
Total fixed charges |
$ | 216 | $ | 289 | $ | 270 | $ | 283 | $ | 319 | $ | 297 | ||||||||||||
Preferred stock dividends(a) |
$ | | $ | | $ | | $ | | $ | | $ | | ||||||||||||
Combined fixed charges and
preferred stock dividends |
$ | 216 | $ | 289 | $ | 270 | $ | 283 | $ | 319 | $ | 297 | ||||||||||||
Ratio of earnings to fixed charges |
1.5 | (1.7 | ) | 0.5 | 0.3 | 3.7 | 4.0 | |||||||||||||||||
Ratio of earnings to combined fixed
charges and preferred stock
dividends |
1.5 | (1.7 | ) | 0.5 | 0.3 | 3.7 | 4.0 | |||||||||||||||||
Ratio of earnings to combined fixed
charges and preferred stock dividends
excluding certain items (b) |
1.5 | 0.9 | 1.5 | 2.2 | 4.2 | 5.4 | ||||||||||||||||||
(a) | Represents amount of income before provision for income taxes required to meet the preferred stock dividend requirements of the Company. | |
(b) | Excludes the 2011 litigation expense of $6 million and non-cash pre-tax impairment charge for other intangible assets of $7 million; the 2010 non-cash pre-tax impairment charge for goodwill and other intangible assets of $721 million and non-cash, pre-tax impairment charge for financial investments of $34 million; the 2009 non-cash, pre-tax charge for goodwill impairment of $262 million; non-cash, pre-tax impairment charge for financial investments of $10 million and litigation expense of $7 million; 2008 non-cash, pre-tax impairment charge for goodwill and other intangible assets of $467 million, financial investments of $58 million and litigation expense of $9 million; 2007 non-cash, pre-tax impairment charges for goodwill and other intangible assets of $119 million and the non-cash, pre-tax charge for financial investments of $22 million; and the 2006 non-cash, pre-tax impairment charges for goodwill and financial investments of $317 million and $101 million, respectively, and the pre-tax income related to the Behr litigation settlement of $1 million. |
32
1. | I have reviewed this quarterly report on Form 10-Q of Masco Corporation (the Registrant); | |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; | |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; | |
4. | The registrants other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | ||
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | ||
(c) | Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | ||
(d) | Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter (the registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
5. | The registrants other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize and report financial information; and | ||
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting. |
Date: October 28, 2011 | By: | /s/ Timothy Wadhams | ||
Timothy Wadhams | ||||
President and Chief Executive Officer | ||||
33
1. | I have reviewed this quarterly report on Form 10-Q of Masco Corporation (the Registrant); | |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; | |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; | |
4. | The registrants other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | ||
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | ||
(c) | Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | ||
(d) | Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter (the registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
5. | The registrants other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize and report financial information; and | ||
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting. |
Date: October 28, 2011 | By: | /s/ John G. Sznewajs | ||
John G. Sznewajs | ||||
Vice President, Treasurer and Chief Financial Officer |
||||
34
1. | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
2. | The information contained in the Report fairly presents, in all material respects, the consolidated financial condition and results of operations of Masco Corporation. |
Date: October 28, 2011 | /s/ Timothy Wadhams | |||
Name: | Timothy Wadhams | |||
Title: | President and Chief Executive Officer |
|||
Date: October 28, 2011 | /s/ John G. Sznewajs | |||
Name: | John G. Sznewajs | |||
Title: | Vice President, Treasurer and Chief Financial Officer |
|||
35
Subsequent Events (Details) (Sale [Member], USD $) In Millions | 9 Months Ended |
---|---|
Sep. 30, 2011 | |
Sale [Member] | |
Subsequent Events (Textuals) [Abstract] | |
Net Sales | $ 100 |
Operating losses | 10 |
Impairment related to goodwill and intangible assets | $ 0 |
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | Sep. 30, 2011 | Dec. 31, 2010 |
---|---|---|
Masco Corporation's shareholders' equity: | ||
Common shares, par value | $ 1 | $ 1 |
Common shares, shares authorized | 1,400,000,000 | 1,400,000,000 |
Common shares, shares issued | 347,800,000 | 348,600,000 |
Common shares, shares outstanding | 347,800,000 | 348,600,000 |
Preferred shares, shares authorized | 1,000,000 | 1,000,000 |
Preferred shares, shares issued | ||
Preferred shares, shares outstanding |
Condensed Consolidated Statements of Income (Unaudited) (USD $) In Millions, except Per Share data | 3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2011 | Sep. 30, 2010 | Sep. 30, 2011 | Sep. 30, 2010 | |
Condensed Consolidated Statements of Income [Abstract] | ||||
Net sales | $ 2,006 | $ 1,957 | $ 5,800 | $ 5,857 |
Cost of sales | 1,511 | 1,463 | 4,348 | 4,325 |
Gross profit | 495 | 494 | 1,452 | 1,532 |
Selling, general and administrative expenses | 393 | 392 | 1,238 | 1,233 |
Operating profit | 102 | 102 | 214 | 299 |
Other income (expense), net: | ||||
Interest expense | (63) | (63) | (190) | (188) |
Impairment charge for financial investments | 0 | 0 | 0 | (33) |
Other, net | 22 | (1) | 74 | (2) |
Total other income (expense), net | (41) | (64) | (116) | (223) |
Income before income taxes | 61 | 38 | 98 | 76 |
Income tax expense | 12 | 31 | 63 | 53 |
Net income | 49 | 7 | 35 | 23 |
Less: Net income attributable to noncontrolling interest | 13 | 12 | 37 | 32 |
Net income (loss) attributable to Masco Corporation | 36 | (5) | (2) | (9) |
Basic: | ||||
Net income (loss) | $ 0.10 | $ (0.02) | $ (0.01) | $ (0.03) |
Diluted: | ||||
Net income (loss) | $ 0.10 | $ (0.02) | $ (0.01) | $ (0.03) |
Amounts attributable to Masco Corporation: | ||||
Net income (loss) | $ 36 | $ (5) | $ (2) | $ (9) |
Accounting Policies (Policies) | 9 Months Ended | ||||||||||||||||
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Sep. 30, 2011 | |||||||||||||||||
Accounting Policies (Policies) [Abstract] | |||||||||||||||||
Recently Issued Accounting Pronouncements |
|
Document and Entity Information | 9 Months Ended | |
---|---|---|
Sep. 30, 2011 | Oct. 25, 2011 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | MASCO CORP /DE/ | |
Entity Central Index Key | 0000062996 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2011 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2011 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding (actual number) | 357,800,000 |
Other Commitments and Contingencies (Details) | 9 Months Ended |
---|---|
Sep. 30, 2011
Year
Lawsuits
Contractor | |
Other Commitments and Contingencies (Textuals) [Abstract] | |
Number of additional lawsuits filed on behalf of several of Masco's competitors in insulation installation business | 2 |
Number of insulation installation contractors certified by the federal court in Atlanta | 377 |
Number of additional lawsuits pending | 1 |
Warranty (Tables) | 9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2011 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Warranty (Tables) [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Warranty liability |
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Derivatives | 9 Months Ended | ||||||||||||||||||||||
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Sep. 30, 2011 | |||||||||||||||||||||||
Derivatives [Abstract] | |||||||||||||||||||||||
Derivatives |
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Stock-Based Compensation (Tables) | 9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Stock-Based Compensation (Tables) [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pre-tax compensation expense and related income tax benefit for stock-based incentives |
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Company's long-term stock award activity |
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Company's stock option activity |
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Weighted average grant date fair value of option shares granted and the assumptions used to estimate those values using a black-scholes option pricing model |
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Fair Value of Financial Investments and Liabilities (Tables) | 9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Fair Value of Financial Investments and Liabilities (Tables) [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial investments included in other assets |
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Company's investments in available-for-sale securities |
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Recurring Fair Value Measurements |
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Changes in Level 3 financial assets measured at fair value on a recurring basis |
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Non-Recurring Fair Value Measurements |
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Income from financial investments, net, included in other, net, within other income (expense), net, and impairment charges for financial investments |
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Segment Information | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information |
J. Information about the Company by segment and geographic area was as follows, in millions:
|
Accounting Policies | 9 Months Ended | |||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2011 | ||||||||||||||||||||
Accounting Policies [Abstract] | ||||||||||||||||||||
Accounting Policies |
|
Recurring Fair Value Measurements (Details 1) (USD $) In Millions | Sep. 30, 2011 | Dec. 31, 2010 |
---|---|---|
Financial investments included in other assets | ||
Total recurring investments | $ 22 | $ 62 |
Auction rate securities [Member] | Quoted Market Prices (Level 1) [Member] | ||
Financial investments included in other assets | ||
Total recurring investments | 0 | 0 |
Trimas Corporation Common Stock [Member] | Quoted Market Prices (Level 1) [Member] | ||
Financial investments included in other assets | ||
Total recurring investments | 40 | |
Quoted Market Prices (Level 1) [Member] | ||
Financial investments included in other assets | ||
Total recurring investments | 0 | 40 |
Auction rate securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Financial investments included in other assets | ||
Total recurring investments | 0 | 0 |
Trimas Corporation Common Stock [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Financial investments included in other assets | ||
Total recurring investments | 0 | |
Significant Other Observable Inputs (Level 2) [Member] | ||
Financial investments included in other assets | ||
Total recurring investments | 0 | 0 |
Auction rate securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Financial investments included in other assets | ||
Total recurring investments | 22 | 22 |
Trimas Corporation Common Stock [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Financial investments included in other assets | ||
Total recurring investments | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | ||
Financial investments included in other assets | ||
Total recurring investments | 22 | 22 |
Auction rate securities [Member] | ||
Financial investments included in other assets | ||
Total recurring investments | 22 | 22 |
Trimas Corporation Common Stock [Member] | ||
Financial investments included in other assets | ||
Total recurring investments | $ 0 | $ 40 |
Debt | 9 Months Ended | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2011 | ||||||||||||
Debt [Abstract] | ||||||||||||
Debt |
|
Earning Per Common Share | 9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2011 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earning Per Common Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Common Share |
L. Reconciliations of the numerators and denominators used in the computations
of basic and diluted earnings per common share were as follows, in millions:
For the three months and nine months ended September 30, 2011 and 2010, the Company allocated
dividends to the unvested restricted stock awards (participating securities).
Additionally, 37 million common shares for the three months and nine months ended September 30,
2011 and 2010 related to stock options were excluded from the computation of diluted earnings per
common share due to their antidilutive effect.
|
Stock-Based Compensation | 9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2011 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation |
|
Warranty | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Warranty [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Warranty |
|
Goodwill and Other Intangible Assets | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Other Intangible Assets [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Other Intangible Assets |
|
Earning Per Common Share (Tables) | 9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Earning Per Common Share (Tables) [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Numerators and denominators used in the computations of basic and diluted earnings per common share |
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Depreciation and Amortization Expense | 9 Months Ended | |||
---|---|---|---|---|
Sep. 30, 2011 | ||||
Depreciation and Amortization Expense [Abstract] | ||||
Depreciation and Amortization Expense |
|
Debt (Details) (USD $) | 9 Months Ended |
---|---|
Sep. 30, 2011 | |
Debt (Textuals) [Abstract] | |
Additional borrowing capacity | $ 979,000,000 |
Absorption of reduction to shareholders' equity to remain in compliance with covenant | 527,000,000 |
Financial covenants | 2 |
Borrowings under Five Year Revolving Credit Agreement | 0 |
Principal amount of Zero Coupon Convertible Senior Notes | 0 |
Principal amount of Zero Coupon Convertible Senior Notes due 2031 | 108,100,000 |
Accreted value principal amount of Zero Coupon Convertible Senior Notes | 58,100,000 |
Zero Coupon Convertible Senior Notes due 2031 [Member] | |
Short-term Debt [Line Items] | |
Repurchase of senior notes for cash | $ 57,900,000 |
Employee Retirement Plans (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Employee Retirement Plans (Tables) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net periodic pension cost for defined-benefit pension plans |
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Depreciation and Amortization Expense (Details Textuals) (USD $) In Millions | 9 Months Ended | |
---|---|---|
Sep. 30, 2011 | Sep. 30, 2010 | |
Depreciation and Amortization Expense (Textuals) [Abstract] | ||
Depreciation and amortization expense | $ 188 | $ 209 |
Warranty (Details) (USD $) In Millions | 9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2011 | Dec. 31, 2010 | |
Warranty liability | ||
Balance at January 1 | $ 107 | $ 109 |
Accruals for warranties issued during the period | 20 | 42 |
Accruals related to pre-existing warranties | 7 | (4) |
Settlements made (in cash or kind) during the period | (29) | (37) |
Other, net | (2) | (3) |
Balance at end of period | $ 103 | $ 107 |
Other Income (Expense), Net (Tables) | 9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Other Income (Expense), Net (Tables) [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other, net |
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Other Income (Expense), Net | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Other Income (Expense), Net [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income (Expense), Net |
K. Other, net, which is included in other income (expense), net, was as follows, in millions:
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Fair Value of Financial Investments and Liabilities | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Fair Value of Financial Investments and Liabilities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Investments and Liabilities |
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Income Taxes | 9 Months Ended | ||||||
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Sep. 30, 2011 | |||||||
Income Taxes [Abstract] | |||||||
Income Taxes |
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Fair Value of Financial Investments and Liabilities (Details Textuals) (USD $) In Billions | Sep. 30, 2011 | Dec. 31, 2010 |
---|---|---|
Fair Value of Financial Investments and Liabilities (Textuals) [Abstract] | ||
Estimated market value of long-term and short-term debt | $ 3.9 | $ 4.2 |
Aggregate carrying value of long-term and short-term debt | $ 4.0 | $ 4.1 |
Segment Information (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information (Tables) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Company by segment and geographic area |
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Subsequent Events | 9 Months Ended | |||
---|---|---|---|---|
Sep. 30, 2011 | ||||
Subsequent Events [Abstract] | ||||
Subsequent Events |
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Employee Retirement Plans (Details) (USD $) In Millions, unless otherwise specified | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | |||||
---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2011 | Dec. 31, 2010
Plan | Sep. 30, 2011
Qualified [Member] | Sep. 30, 2010
Qualified [Member] | Sep. 30, 2011
Qualified [Member] | Sep. 30, 2010
Qualified [Member] | Sep. 30, 2011
Non-Qualified [Member] | Sep. 30, 2010
Non-Qualified [Member] | Sep. 30, 2011
Non-Qualified [Member] | Sep. 30, 2010
Non-Qualified [Member] | Dec. 31, 2010
Non-Qualified [Member] | |
Net periodic pension cost for defined-benefit pension plans | |||||||||||
Service cost | $ 1 | $ 2 | $ 2 | $ 4 | $ 0 | $ 0 | $ 0 | $ 0 | |||
Interest cost | 12 | 11 | 34 | 34 | 2 | 3 | 6 | 7 | |||
Expected return on plan assets | (9) | (9) | (25) | (27) | 0 | 0 | 0 | 0 | |||
Amortization of prior service cost | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Amortization of net loss | 2 | 3 | 7 | 8 | 1 | 0 | 1 | 0 | |||
Net periodic pension cost | 6 | 7 | 18 | 19 | 3 | 3 | 7 | 7 | |||
Net Liability of defined-benefit pension plans | 522 | 163 | |||||||||
Employee Retirement Plans (Textuals) [Abstract] | |||||||||||
Minimum adjusted funding target attainment percentage of defined-benefit pension plans | 62.00% | ||||||||||
Maximum adjusted funding target attainment percentage of defined-benefit pension plans | 86.00% | ||||||||||
Number of plan offered for accelerated benefit | 1 | ||||||||||
Adjusted Funding Target Attainment Percentage | less than 80 percent | ||||||||||
Prohibited percentage of lump sum distribution | excess of 50 percent | ||||||||||
Reduction in employee expenses related accruals | $ 5 |
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Goodwill and Other Intangible Assets (Tables) [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in carrying amount of goodwill |
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Consolidated Statements of Shareholders' Equity (Unaudited) (Parenthetical) (USD $) In Millions | 9 Months Ended | |
---|---|---|
Sep. 30, 2011 | Sep. 30, 2010 | |
Income tax benefit on unrealized (loss) on marketable securities | $ 0 | $ (1) |
Income tax benefit on unrecognized prior service cost | 0 | 3 |
Income tax benefit on unrealized gain (loss) on interest rate swaps | 0 | |
Accumulated Other Comprehensive Income | ||
Income tax benefit on unrealized (loss) on marketable securities | 0 | (1) |
Income tax benefit on unrecognized prior service cost | 0 | 3 |
Income tax benefit on unrealized gain (loss) on interest rate swaps | $ 0 |
Employee Retirement Plans | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Retirement Plans [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Retirement Plans |
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Financial Investments Included in Other Assets (Details) (USD $) In Millions | 9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2011 | Dec. 31, 2010 | |
Financial investments included in other assets | ||
Total recurring investments | $ 22 | $ 62 |
Total non-recurring investments | 97 | 119 |
Total | 119 | 181 |
Company's investments in available-for-sale securities | ||
Cost Basis | 19 | 22 |
Pre-tax Unrealized Gains | 3 | 40 |
Pre-tax Unrealized Losses | 0 | 0 |
Recorded Basis | 22 | 62 |
Auction rate securities [Member] | ||
Financial investments included in other assets | ||
Total recurring investments | 22 | 22 |
Trimas Corporation Common Stock [Member] | ||
Financial investments included in other assets | ||
Total recurring investments | 0 | 40 |
Private Equity Funds [Member] | ||
Financial investments included in other assets | ||
Total non-recurring investments | 92 | 106 |
Other investments [Member] | ||
Financial investments included in other assets | ||
Total non-recurring investments | $ 5 | $ 13 |
Other Commitments and Contingencies | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Sep. 30, 2011 | |||||||
Other Commitments and Contingencies [Abstract] | |||||||
Other Commitments and Contingencies |
M. The Company is subject to lawsuits and pending or asserted claims with respect to matters
generally arising in the ordinary course of business.
|