10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2013

Commission file number: 1-5794

Masco Corporation

(Exact name of Registrant as Specified in its Charter)

Delaware	38-1794485
(State or Other Jurisdiction of Incorporation)	(IRS Employer Identification No.)

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

(313) 274-7400

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    x  Yes    ¨  No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    x  Yes    ¨  No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	x	Accelerated filer	¨
Non-accelerated filer	¨  (Do not check if a smaller reporting company)	Smaller reporting company	¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    ¨  Yes    x  No

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Class	Shares Outstanding at July 26, 2013
Common stock, par value $1.00 per share	356,940,100

MASCO CORPORATION

INDEX

		Page No.
PART I.	FINANCIAL INFORMATION
Item 1.	Financial Statements:
	Condensed Consolidated Balance Sheets - as at June 30, 2013 and December 31, 2012		1
	Condensed Consolidated Statements of Operations for the Three and Six Months Ended June  30, 2013 and 2012		2
	Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three and Six Months Ended June 30, 2013 and 2012		3
	Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2013 and 2012		4
	Consolidated Statements of Shareholders’ Equity for the Six Months Ended June  30, 2013 and 2012		5
	Notes to Condensed Consolidated Financial Statements		6-23
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		24-30
Item 4.	Controls and Procedures		31
PART II.	OTHER INFORMATION		32-34
Item 1.	Legal Proceedings		32
Item 1A.	Risk Factors		32
Item 6.	Exhibits		33
	Signature		34

MASCO CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

June 30, 2013 and December 31, 2012

(In Millions, Except Share Data)

	June 30, 2013			December 31, 2012
ASSETS
Current assets:
Cash and cash investments	$	1,223		$	1,351
Receivables		1,255			933
Prepaid expenses and other		109			107
Assets held for sale		101			100
Inventories:
Finished goods		435			368
Raw material		261			266
Work in process		95			92
		791			726
Total current assets		3,479			3,217
Property and equipment, net		1,276			1,326
Goodwill		1,894			1,894
Other intangible assets, net		149			151
Other assets		173			184
Assets held for sale		91			103
Total assets	$	7,062		$	6,875
LIABILITIES
Current liabilities:
Notes payable	$	207		$	206
Accounts payable		998			788
Accrued liabilities		789			823
Liabilities held for sale		48			45
Total current liabilities		2,042			1,862
Long-term debt		3,421			3,422
Deferred income taxes and other		1,050			1,053
Liabilities held for sale		—			4
Total liabilities		6,513			6,341
Commitments and contingencies
EQUITY
Masco Corporation’s shareholders’ equity:
Common shares, par value $1 per share Authorized shares: 1,400,000,000; issued and outstanding: 2013 – 349,200,000; 2012 – 349,000,000		349			349
Preferred shares authorized: 1,000,000; issued and outstanding: 2013 – None; 2012 – None		—			—
Paid-in capital		—			16
Accumulated deficit		(40	)		(102	)
Accumulated other comprehensive income		47			59
Total Masco Corporation’s shareholders’ equity		356			322
Noncontrolling interest		193			212
Total equity		549			534
Total liabilities and equity	$	7,062		$	6,875

See notes to condensed consolidated financial statements.

1

MASCO CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

For the Three and Six Months Ended June 30, 2013 and 2012

(In Millions, Except Per Common Share Data)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2013			2012			2013			2012
Net sales	$	2,149		$	1,945		$	4,025		$	3,751
Cost of sales		1,540			1,424			2,908			2,746
Gross profit		609			521			1,117			1,005
Selling, general and administrative expenses		421			392			797			769
Charge for litigation settlements, net		—			75			—			73
Operating profit		188			54			320			163
Other income (expense), net:
Interest expense		(60	)		(68	)		(120	)		(132	)
Other, net		3			2			10			17
		(57	)		(66	)		(110	)		(115	)
Income (loss) from continuing operations before income taxes		131			(12	)		210			48
Income taxes		39			31			53			38
Income (loss) from continuing operations		92			(43	)		157			10
Loss from discontinued operations		(5	)		(24	)		(14	)		(33	)
Net income (loss)		87			(67	)		143			(23	)
Less: Net income attributable to noncontrolling interest		10			8			19			19
Net income (loss) attributable to Masco Corporation	$	77		$	(75	)	$	124		$	(42	)
Income (loss) per common share attributable to Masco Corporation:
Basic:
Income (loss) from continuing operations	$	.23		$	(.15	)	$	.39		$	(.03	)
Loss from discontinued operations		(.01	)		(.07	)		(.04	)		(.09	)
Net income (loss)	$	.22		$	(.22	)	$	.35		$	(.12	)
Diluted:
Income (loss) from continuing operations	$	.23		$	(.15	)	$	.38		$	(.03	)
Loss from discontinued operations		(.01	)		(.07	)		(.04	)		(.09	)
Net income (loss)	$	.21		$	(.22	)	$	.34		$	(.12	)
Amounts attributable to Masco Corporation:
Income (loss) from continuing operations	$	82		$	(51	)	$	138		$	(9	)
Loss from discontinued operations		(5	)		(24	)		(14	)		(33	)
Net income (loss)	$	77		$	(75	)	$	124		$	(42	)

See notes to condensed consolidated financial statements.

2

MASCO CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited)

For the Three and Six Months Ended June 30, 2013 and 2012

(In Millions)

	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2013		2012			2013			2012
Net income (loss)	$	87	$	(67	)	$	143		$	(23	)
Less: Net income attributable to noncontrolling interest		10		8			19			19
Net income (loss) attributable to Masco Corporation	$	77	$	(75	)	$	124		$	(42	)
Other comprehensive income (loss), net of tax (see Note K):
Cumulative translation adjustment		10		(57	)		(26	)		(27	)
Interest rate swaps, net of income tax of $— and $—, respectively		1		—			1			—
Unrecognized pension prior service cost and net loss, net of income tax of $— and $—, respectively		4		4			9			8
Other comprehensive income (loss)		15		(53	)		(16	)		(19	)
Less: Other comprehensive income (loss) attributable to noncontrolling interest		4		(11	)		(4	)		(4	)
Other comprehensive income (loss) attributable to Masco Corporation	$	11	$	(42	)	$	(12	)	$	(15	)
Total comprehensive income (loss)	$	102	$	(120	)	$	127		$	(42	)
Less: Total comprehensive income (loss) attributable to the noncontrolling interest		14		(3	)		15			15
Total comprehensive income (loss) attributable to Masco Corporation	$	88	$	(117	)	$	112		$	(57	)

See notes to condensed consolidated financial statements.

3

MASCO CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

For the Six Months Ended June 30, 2013 and 2012

(In Millions)

	Six Months Ended
	June 30,
	2013			2012
CASH FLOWS FROM (FOR) OPERATING ACTIVITIES:
Cash provided by operations	$	299		$	109
Increase in receivables		(348	)		(303	)
Increase in inventories		(69	)		(81	)
Increase in accounts payable and accrued liabilities, net		177			271
Net cash from (for) operating activities		59			(4	)
CASH FLOWS FROM (FOR) FINANCING ACTIVITIES:
Cash dividends paid		(54	)		(53	)
Dividend payment to noncontrolling interest		(34	)		(40	)
Purchase of Company common stock		(35	)		(8	)
New Credit Agreement costs		(4	)		—
Issuance of Notes, net of issuance costs		—			396
Retirement of Notes		—			(46	)
Payment for settlement of swaps		—			(25	)
Payment of debt, net		—			(1	)
Net cash (for) from financing activities		(127	)		223
CASH FLOWS FROM (FOR) INVESTING ACTIVITIES:
Capital expenditures		(59	)		(52	)
Acquisition of companies, net of cash acquired		(5	)		—
Proceeds from disposition of:
Other financial investments		11			30
Property and equipment		7			24
Purchases of other financial investments		—			(2	)
Other, net		(5	)		(15	)
Net cash (for) investing activities		(51	)		(15	)
Effect of exchange rate changes on cash and cash investments		(9	)		(7	)
CASH AND CASH INVESTMENTS:
(Decrease) increase for the period		(128	)		197
At January 1		1,351			1,656
At June 30	$	1,223		$	1,853

See notes to condensed consolidated financial statements.

4

MASCO CORPORATION

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (Unaudited)

For The Six Months Ended June 30, 2013 and 2012

(In Millions)

	Total			Common Shares ($1 par value)			Paid-In Capital			(Accumulated Deficit) Retained Earnings			Accumulated Other Comprehensive Income			Noncontrolling Interest
Balance, January 1, 2012		742			348			65			38			76			215
Total comprehensive income (loss)		(42	)								(42	)		(15	)		15
Shares issued		—			2			(2	)
Shares retired:
Repurchased		(8	)		(1	)		(7	)
Surrendered (non-cash)		(8	)		(1	)		(7	)
Cash dividends declared		(53	)					(27	)		(26	)
Dividend payment to noncontrolling interest		(40	)														(40	)
Stock-based compensation		28						28
Balance, June 30, 2012	$	619		$	348		$	50		$	(30	)	$	61		$	190
Balance, January 1, 2013		534			349			16			(102	)		59			212
Total comprehensive income (loss)		127									124			(12	)		15
Shares issued		—			2			(2	)
Shares retired:
Repurchased		(35	)		(2	)		(11	)		(22	)
Surrendered (non-cash)		(18	)					(18	)
Cash dividends declared		(54	)					(14	)		(40	)
Dividend payment to noncontrolling interest		(34	)														(34	)
Stock-based compensation		29						29
Balance, June 30, 2013	$	549		$	349		$	—		$	(40	)	$	47		$	193

See notes to consolidated financial statements.

5

MASCO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

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 June 30, 2013 and the results of operations for the three months and six months ended June 30, 2013 and 2012 and cash flows for the six months ended June 30, 2013 and 2012. The condensed consolidated balance sheet at December 31, 2012 was derived from audited financial statements.

Certain prior-year amounts have been reclassified to conform to the 2013 presentation in the condensed consolidated financial statements. In the Company’s condensed consolidated balance sheets, assets and liabilities related to the 2013 discontinued operations have been separately presented at June 30, 2013 and December 31, 2012. The results of operations related to the 2013 discontinued operations have been separately stated in the accompanying condensed consolidated statements of operations for the three months and six months ended June 30, 2013 and 2012. In the Company’s condensed consolidated statements of cash flows for the six months ended June 30, 2013 and 2012, cash flows from discontinued operations are not separately classified.

Recently Issued Accounting Pronouncements. On January 1, 2013, the Company adopted new accounting guidance requiring disclosure of amounts reclassified from accumulated other comprehensive income. The adoption of this new guidance did not have an impact on the Company’s financial position or its results of operations.

B. In the first quarter of 2013, the Company determined that Tvilum, its Danish ready-to-assemble cabinet business, is no longer core to its long-term growth strategy and, accordingly, the Company has embarked on a plan for disposition. The Company has accounted for this business and those which were sold in 2012 as discontinued operations. Selected financial information for the discontinued operations, during the period owned by the Company, was as follows, in millions:

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2013			2012			2013			2012
Net Sales	$	60		$	80		$	119		$	169
Operating loss from discontinued operations	$	(5	)	$	(10	)	$	(8	)	$	(21	)
Impairment of assets		—			—			(10	)		—
Loss on disposal of discontinued operations, net		—			(2	)		—			(3	)
Loss before income tax		(5	)		(12	)		(18	)		(24	)
Income tax expense (benefit)		—			12			(4	)		9
Loss from discontinued operations, net	$	(5	)	$	(24	)	$	(14	)	$	(33	)

Included in impairment of assets in 2013 is the impairment of fixed assets held for sale. During the first quarter of 2013, the Company estimated the fair value of the business held for sale, using unobservable inputs (Level 3). After considering the currency translation gains reported in Accumulated Other Comprehensive Income, the Company recorded an impairment of $10 million in the first quarter of 2013; no further adjustment was made in the second quarter of 2013.

6

MASCO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (continued)

Note B – concluded:

The unusual relationship between income tax expense and loss before income tax in 2012 results primarily from the increase in the deferred tax liability associated with the abandonment of tax basis in indefinite-lived intangibles due to the disposition of certain discontinued operations.

The following balance sheet items have been reclassified as held for sale:

	June 30,		December 31,
	2013		2012
Receivables	$	36	$	32
Inventories		64		66
Prepaid expenses and other		1		2
Property and equipment, net		91		103
Total assets	$	192	$	203
Accounts payable	$	36	$	31
Accrued liabilities		12		14
Deferred income taxes		—		4
Total liabilities	$	48	$	49

7

MASCO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (continued)

C. The changes in the carrying amount of goodwill for the six months ended June 30, 2013, by segment, were as follows, in millions:

	Gross Goodwill		Accumulated			Net Goodwill
	At		Impairment			At
	June 30, 2013		Losses			June 30, 2013
Cabinets and Related Products	$	240	$	(59	)	$	181
Plumbing Products		541		(340	)		201
Installation and Other Services		1,806		(762	)		1,044
Decorative Architectural Products		294		(75	)		219
Other Specialty Products		983		(734	)		249
Total	$	3,864	$	(1,970	)	$	1,894

	Gross Goodwill		Accumulated			Net Goodwill							Net Goodwill
	At		Impairment			At							At
	Dec. 31, 2012		Losses			Dec. 31, 2012		Other (A)			Additions (B)		June 30, 2013
Cabinets and Related Products	$	240	$	(59	)	$	181	$	—		$	—	$	181
Plumbing Products		544		(340	)		204		(3	)		—		201
Installation and Other Services		1,806		(762	)		1,044		—			—		1,044
Decorative Architectural Products		294		(75	)		219		—			—		219
Other Specialty Products		980		(734	)		246		—			3		249
Total	$	3,864	$	(1,970	)	$	1,894	$	(3	)	$	3	$	1,894

(A) Other principally includes the effect of foreign currency translation.

(B) Additions include the acquisition of a U.K. door business in the first quarter of 2013.

Other indefinite-lived intangible assets were $132 million at both June 30, 2013 and December 31, 2012, and principally included registered trademarks. The carrying value of the Company’s definite-lived intangible assets was $17 million (net of accumulated amortization of $59 million) at June 30, 2013 and $19 million (net of accumulated amortization of $57 million) at December 31, 2012, and principally included customer relationships and non-compete agreements.

8

MASCO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (continued)

D. Depreciation and amortization expense, including discontinued operations, was $94 million and $104 million, including accelerated depreciation (relating to business rationalization initiatives) of $9 million for each of the six months ended June 30, 2013 and 2012.

E. 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:

	June 30, 2013		December 31, 2012
Auction rate securities	$	22	$	22
Total recurring investments		22		22
Private equity funds		65		69
Other investments		4		4
Total non-recurring investments		69		73
Total	$	91	$	95

The Company’s investments in available-for-sale securities at June 30, 2013 and December 31, 2012 were as follows, in millions:

			Pre-tax
			Unrealized		Unrealized		Recorded
	Cost Basis		Gains		Losses		Basis
June 30, 2013	$	19	$	3	$	—	$	22
December 31, 2012	$	19	$	3	$	—	$	22

Recurring Fair Value Measurements. Financial investments 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
	June 30, 2013		Quoted Market Prices (Level  1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Auction rate securities	$	22		—		—	$	22
Total	$	22	$	—	$	—	$	22

			Fair Value Measurements Using
	Dec. 31, 2012		Quoted Market Prices (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Auction rate securities	$	22	$	—	$	—	$	22
Total	$	22	$	—	$	—	$	22

9

MASCO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (continued)

Note E – continued:

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 table summarizes the changes in Level 3 financial assets measured at fair value on a recurring basis for the six months ended June 30, 2013 and the year ended December 31, 2012, in millions:

	June 30, 2013 Auction Rate Securities		December 31, 2012 Auction Rate Securities
Fair value at beginning of period	$	22	$	22
Total losses included in earnings		—		—
Unrealized (losses)		—		—
Purchases		—		—
Settlements		—		—
Transfer from Level 3 to Level 2		—		—
Fair value at period end	$	22	$	22

Non-Recurring Fair Value Measurements. During the three months and six months ended June 30, 2013, the Company did not measure any financial investments at fair value on a non-recurring basis, as there was no other-than-temporary decline in the estimated value of private equity funds.

During the three months and six months ended June 30, 2012, the Company measured $4 million of private equity investments using level 3 inputs due to an other-than-temporary decline in the estimated value, resulting in a $2 million impairment.

The Company did not have any transfers between Level 1 and Level 2 financial assets in the three months or six months ended June 30, 2013 or 2012.

10

MASCO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (continued)

Note E – concluded:

Realized Gains (Losses). Income (loss) from financial investments, net, included in other, net, within other income (expense), net, was as follows, in millions:

	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2013		2012			2013		2012
Realized gains from private equity funds	$	4	$	2		$	7	$	18
Income from other investments, net		1		—			1		—
Total income from financial investments	$	5	$	2		$	8	$	18
Impairment charges – private equity funds	$	—	$	(2	)	$	—	$	(2	)

The fair value of the Company’s short-term and long-term fixed-rate debt instruments is based principally upon modeled 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 June 30, 2013 was approximately $3.9 billion, compared with the aggregate carrying value of $3.6 billion. The aggregate estimated market value of short-term and long-term debt at December 31, 2012 was approximately $4.0 billion, compared with the aggregate carrying value of $3.6 billion.

F. The Company is exposed to global market risk as part of its normal daily business activities. To manage these risks, the Company enters into various derivative contracts. These contracts include interest rate swap agreements, foreign currency exchange contracts and contracts intended to hedge the Company’s exposure to copper and zinc. The Company reviews its hedging program, derivative positions and overall risk management on a regular basis.

Interest Rate Swap Agreements. In March 2012, in connection with the issuance of $400 million of debt, the Company terminated the interest rate swap hedge relationships that it entered into in August 2011. These interest rate swaps were designated as cash flow hedges and effectively fixed interest rates on the forecasted debt issuance to variable rates based on 3-month LIBOR. Upon termination, the ineffective portion of the cash flow hedges of approximately $2 million loss was recognized in the Company’s consolidated statement of income in other, net. The remaining loss of approximately $23 million from the termination of these swaps is being amortized as an increase to interest expense over the remaining term of the debt, through March 2022. At June 30, 2013, the balance remaining in Accumulated Other Comprehensive Income was $20 million.

11

MASCO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (continued)

Note F – continued:

Foreign Currency Contracts. The Company’s net cash inflows and outflows exposed to the risk of changes in foreign currency exchange rates arise from the sale of products in countries other than the manufacturing source, foreign currency denominated supplier payments, debt and other payables, and investments in subsidiaries. To mitigate this risk during 2013 and 2012, the Company, including certain European operations, entered into foreign currency forward contracts and foreign currency exchange contracts.

Gains (losses) related to foreign currency forward and exchange contracts are recorded in the Company’s condensed consolidated statements of operations in other income (expense), net. In the event that the counterparties fail to meet the terms of the foreign currency forward contracts, the Company’s exposure is limited to the aggregate foreign currency rate differential with such institutions.

Metal Contracts. During 2013 and 2012, the Company entered into several contracts to manage its exposure to increases in the price of copper and zinc. (Losses) gains related to these contracts are recorded in the Company’s condensed consolidated statements of operations in cost of sales.

The pre-tax (loss) gain included in the Company’s consolidated statements of operations is as follows, in millions:

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2013			2012			2013			2012
Foreign Currency Contracts
Exchange Contracts	$	—		$	9		$	7		$	4
Forward Contracts		—			—			2			(1	)
Metal Contracts		(5	)		(6	)		(9	)		1
Total (loss) gain	$	(5	)	$	3		$	—		$	4

12

MASCO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (continued)

Note F – concluded:

The Company presents its derivatives, net by counterparty due to the right of offset under master netting arrangements in current assets or current liabilities in the condensed consolidated balance sheet. The notional amounts being hedged and the fair value of those derivative instruments, on a gross basis, are as follows, in millions:

	At June 30, 2013
	Notional
	Amount		Assets		Liabilities
Foreign Currency Contracts
Exchange Contracts	$	103
Current assets			$	3	$	—
Forward Contracts		63
Current assets				1		—
Metal Contracts		46
Current liabilities				—		8
Total			$	4	$	8

	At December 31, 2012
	Notional
	Amount		Assets		Liabilities
Foreign Currency Contracts
Exchange Contracts	$	172
Current liabilities			$	—	$	5
Forward Contracts		76
Current assets				1		1
Metal Contracts		35
Current liabilities				1		2
Total			$	2	$	8

The fair value of all metal and foreign currency derivative contracts is estimated on a recurring basis using Level 2 inputs (significant other observable inputs).

13

MASCO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (continued)

G. Changes in the Company’s warranty liability were as follows, in millions:

	Six Months Ended			Twelve Months Ended
	June 30, 2013			December 31, 2012
Balance at January 1	$	118		$	102
Accruals for warranties issued during the period		18			42
Accruals related to pre-existing warranties		4			16
Settlements made (in cash or kind) during the period		(20	)		(38	)
Other, net		1			(4	)
Balance at end of period	$	121		$	118

H. On March 28, 2013, the Company entered into a credit agreement (the “New Credit Agreement”) with a bank group, with an aggregate commitment of $1.25 billion and a maturity date of March 28, 2018. Upon entry into the New Credit Agreement, the Company’s credit agreement dated as of June 21, 2010, as amended, with an aggregate commitment of $1.25 billion, was terminated.

The New Credit Agreement provides for an unsecured revolving credit facility available to the Company and one of its foreign subsidiaries, in U.S. dollars, European euros and certain other currencies. Borrowings under the revolver denominated in euros are limited to $500 million, equivalent. The Company can also borrow swingline loans up to $150 million and obtain letters of credit of up to $250 million; any outstanding Letters of Credit reduce the Company’s borrowing capacity. At June 30, 2013, the Company had $95 million of outstanding and unused Letters of Credit, reducing the Company’s borrowing capacity by such amount.

Revolving credit loans bear interest under the New Credit Agreement, at the Company’s option, at (A) a rate per annum equal to the greater of (i) the prime rate, (ii) the Federal Funds effective rate plus 0.50% and (iii) LIBOR plus 1.0% (the “Alternative Base Rate”); plus an applicable margin based upon the then applicable corporate credit ratings of the Company; or (B) LIBOR plus an applicable margin based upon the then applicable corporate credit ratings of the Company. The foreign currency revolving credit loans bear interest at a rate equal to LIBOR plus an applicable margin based upon the then applicable corporate credit ratings of the Company.

The New Credit Agreement contains financial covenants requiring the Company to maintain (A) a maximum debt to total capitalization ratio, as adjusted for certain items, of 65 percent, and (B) a minimum interest coverage ratio, as adjusted for certain items, equal to or greater than 2.5 to 1.0. The debt to total capitalization ratio allows the add-back, if incurred, of up to the first $250 million of certain non-cash charges, including goodwill and other intangible asset impairment charges, occurring from and after January 1, 2012 that would negatively impact shareholders’ equity.

Based on the limitations of the debt to total capitalization ratio covenant in the New Credit Agreement, at June 30, 2013, the Company had additional borrowing capacity, subject to availability, of up to $910 million. Additionally, at June 30, 2013, the Company could absorb a reduction to shareholders’ equity of approximately $490 million and remain in compliance with the debt to total capitalization covenant.

14

MASCO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (continued)

Note H – concluded:

In order for the Company to borrow under the New Credit Agreement, there must not be any default in the Company’s covenants in the New 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 Company’s representations and warranties in the New 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, 2012, 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 June 30, 2013.

I. The Company’s 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 June 30, 2013, 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				Six Months Ended
	June 30,				June 30,
	2013		2012		2013		2012
Long-term stock awards	$	11	$	11	$	20	$	19
Stock options		5		4		10		9
Phantom stock awards and stock appreciation rights		—		1		3		6
Total	$	16	$	16	$	33	$	34
Income tax benefit (37 percent tax rate – before valuation allowance)	$	6	$	6	$	12	$	13

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 in the open market. The Company granted 1,623,080 shares of long-term stock awards in the six months ended June 30, 2013.

15

MASCO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (continued)

Note I – continued:

The Company’s long-term stock award activity was as follows, shares in millions:

	Six Months Ended
	June 30,
	2013		2012
Unvested stock award shares at January 1		8		10
Weighted average grant date fair value	$	16	$	17
Stock award shares granted		2		1
Weighted average grant date fair value	$	20	$	12
Stock award shares vested		2		2
Weighted average grant date fair value	$	16	$	17
Stock award shares forfeited		—		—
Weighted average grant date fair value	$	18	$	18
Unvested stock award shares at June 30		8		9
Weighted average grant date fair value	$	17	$	16

At June 30, 2013 and 2012, there was $83 million and $92 million, respectively, of total unrecognized compensation expense related to unvested stock awards; such awards had a weighted average remaining vesting period of four years in both periods.

The total market value (at the vesting date) of stock award shares which vested during the six months ended June 30, 2013 and 2012 was $32 million and $23 million, respectively.

Stock Options. Stock options are granted to key employees of the Company. The exercise price equals the market price of the Company’s 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 869,000 of stock option shares in the six months ended June 30, 2013 with a grant date exercise price approximating $20 per share. In the first six months of 2013, 1,182,470 stock option shares were forfeited (including options that expired unexercised).

16

MASCO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (continued)

Note I – continued:

The Company’s stock option activity was as follows, shares in millions:

	Six Months Ended
	June 30,
	2013		2012
Option shares outstanding, January 1		30		36
Weighted average exercise price	$	21	$	21
Option shares granted, including restoration options		1		1
Weighted average exercise price	$	20	$	12
Option shares exercised		2		—
Aggregate intrinsic value on date of exercise (A)	$	21 million	$	1 million
Weighted average exercise price	$	11	$	9
Option shares forfeited		1		3
Weighted average exercise price	$	23	$	19
Option shares outstanding, June 30		28		34
Weighted average exercise price	$	22	$	21
Weighted average remaining option term (in years)		4		5
Option shares vested and expected to vest, June 30		28		34
Weighted average exercise price	$	22	$	21
Aggregate intrinsic value (A)	$	69 million	$	29 million
Weighted average remaining option term (in years)		4		5
Option shares exercisable (vested), June 30		23		26
Weighted average exercise price	$	24	$	24
Aggregate intrinsic value (A)	$	37 million	$	15 million
Weighted average remaining option term (in years)		3		4

(A) Aggregate intrinsic value is calculated using the Company’s stock price at each respective date, less the exercise price (grant date price) multiplied by the number of shares.

At June 30, 2013 and 2012, there was $12 million and $24 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 two years and three years in 2013 and 2012, respectively.

17

MASCO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (continued)

Note I – concluded:

The weighted average grant date fair value of option shares granted and the assumptions used to estimate those values using a Black-Scholes option pricing model were as follows:

	Six Months Ended
	June 30,
	2013			2012
Weighted average grant date fair value	$	8.33		$	4.44
Risk-free interest rate		1.20	%		1.10	%
Dividend yield		1.47	%		2.57	%
Volatility factor		49.00	%		51.00	%
Expected option life		6 years			6 years

J. Net periodic pension cost for the Company’s defined-benefit pension plans was as follows, in millions:

	Three Months Ended June 30,
	2013					2012
	Qualified			Non-Qualified		Qualified			Non-Qualified
Service cost	$	1		$	—	$	1		$	—
Interest cost		10			2		10			2
Expected return on plan assets		(9	)		—		(9	)		—
Amortization of net loss		4			—		4			—
Net periodic pension cost	$	6		$	2		6			2

	Six Months Ended June 30,
	2013					2012
	Qualified			Non-Qualified		Qualified			Non-Qualified
Service cost	$	2		$	—	$	3		$	—
Interest cost		20			3		20			3
Expected return on plan assets		(18	)		—		(17	)		—
Amortization of net loss		8			1		7			1
Net periodic pension cost	$	12		$	4	$	13		$	4

The Company participates in 20 regional multi-employer pension plans, principally related to building trades; none of the plans are considered significant to the Company.

Effective January 1, 2010, the Company froze all future benefit accruals under substantially all of the Company’s domestic qualified and non-qualified defined benefit pension plans. Future benefit accruals related to the Company’s foreign non-qualified plans were frozen several years ago.

18

MASCO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (continued)

K. The reclassifications from accumulated other comprehensive income (loss) to the income statement were as follows, in millions:

	Amount Reclassified
Accumulated Other Comprehensive Income (Loss)	Three Months Ended				Six Months Ended
	June 30,				June 30,				Income Statement
	2013		2012		2013		2012		Line Item
Amortization of defined benefit pension:
Actuarial losses, net	$	4	$	4	$	9	$	8	Selling, General & Administrative Expense
		—		—		—		—	Tax expense
	$	4	$	4	$	9	$	8	Net of tax
Interest rate swaps	$	1	$	—	$	1	$	—	Interest expense

19

MASCO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (continued)

L. Information about the Company by segment and geographic area was as follows, in millions:

	Three Months Ended June 30,										Six Months Ended June 30,
	2013		2012		2013			2012			2013		2012		2013			2012
	Net Sales (A)				Operating Profit (Loss)						Net Sales (A)				Operating Profit (Loss)
The Company’s operations by segment were:
Cabinets and Related Products	$	265	$	253	$	2		$	(5	)	$	501	$	481	$	(2	)	$	(21	)
Plumbing Products		802		738		102			70			1,564		1,480		188			167
Installation and Other Services		357		296		8			(9	)		669		574		4			(23	)
Decorative Architectural Products		565		517		104			95			997		951		193			168
Other Specialty Products		160		141		11			6			294		265		10			1
Total	$	2,149	$	1,945	$	227		$	157		$	4,025	$	3,751	$	393		$	292
The Company’s operations by geographic area were:
North America	$	1,765	$	1,587	$	185		$	125		$	3,275	$	3,018	$	325		$	213
International, principally Europe		384		358		42			32			750		733		68			79
Total	$	2,149	$	1,945		227			157		$	4,025	$	3,751		393			292
General corporate expense, net						(39	)		(33	)						(73	)		(61	)
Gain from sale of fixed assets (B)						—			5							—			5
Charge for litigation settlements, net (B)						—			(75	)						—			(73	)
Operating profit						188			54							320			163
Other income (expense), net						(57	)		(66	)						(110	)		(115	)
Income (loss) before income taxes					$	131		$	(12	)					$	210		$	48

(A) Inter-segment sales were not material.

(B) In 2012, gain on sale of fixed assets relates to a business unit in the Other Specialty Products segment. For the three months and six months ended June 30, 2012, the charge for litigation settlements, net, includes $75 million related to a business unit in the Installation and Other Services segment.

M. As part of the Company’s continuing review of its operations to improve cost structure and business processes, actions were taken during 2013 and 2012 to respond to market conditions. The Company recorded charges related to severance and early retirement programs of $12 million and $5 million for the six months ended June 30, 2013 and 2012, respectively. Such charges are principally reflected in the statement of operations in selling, general and administrative expenses.

20

MASCO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (continued)

N. Other, net, which is included in other income (expense), net, was as follows, in millions:

	Three Months Ended June 30,						Six Months Ended June 30,
	2013			2012			2013		2012
Income from cash and cash investments	$	1		$	2		$	2	$	4
Income from financial investments (Note E)		5			2			8		18
Impairment of financial investments (Note E)		—			(2	)		—		(2	)
Other items, net		(3	)		—			—		(3	)
Total other net	$	3		$	2		$	10	$	17

Other items, net, included $(2) million and $1 million of currency (losses) gains for the three months and six months ended June 30, 2013, respectively. Other items, net, included $— million and $1 million of currency losses for the three months and six months ended June 30, 2012, respectively.

O. Reconciliations of the numerators and denominators used in the computations of basic and diluted earnings per common share were as follows, in millions:

	Three Months Ended June 30,						Six Months Ended June 30,
	2013			2012			2013			2012
Numerator (basic and diluted):
Income (loss) from continuing operations	$	82		$	(51	)	$	138		$	(9	)
Allocation to unvested restricted stock awards		(2	)		(1	)		(3	)		(1	)
Income (loss) from continuing operations attributable to common shareholders		80			(52	)		135			(10	)
Loss from discontinued Operations, net		(5	)		(24	)		(14	)		(33	)
Net income (loss) available to common shareholders	$	75		$	(76	)	$	121		$	(43	)
Denominator:
Basic common shares (based upon weighted average)		349			349			349			349
Add:
Contingent common shares		—			—			—			—
Stock option dilution		3			—			3			—
Diluted common shares		352			349			352			349

For the three months and six months ended June 30, 2013 and 2012, the Company allocated dividends and undistributed earnings (only in 2013) to the unvested restricted stock awards (participating securities).

21

MASCO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (continued)

Note O – concluded:

Additionally, 14 million common shares for both the three months and six months ended June 30, 2013 and 34 million common shares for both the three months and six months ended June 30, 2012 related to stock options were excluded from the computation of diluted earnings per common share due to their antidilutive effect.

In the first six months of 2013, the Company granted 1.6 million shares of long-term stock awards; to offset the dilutive impact of these awards and awards granted in late 2012, the Company also repurchased and retired 1.7 million shares of Company common stock, for cash aggregating approximately $35 million. At June 30, 2013, the Company had 22.6 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 $.15 ($.15), respectively for the three months and six months ended June 30, 2013 and June 30, 2012.

P. We are subject to claims, charges, litigation and other proceedings in the ordinary course of our business, including those arising from or related to contractual matters, intellectual property, personal injury, environmental matters, product liability, product recalls, construction defect, insurance coverage, personnel and employment disputes and other matters, including class actions. We believe we have adequate defenses in these matters and that the outcome of these matters is not likely to have a material adverse effect on us. However, there is no assurance that we will prevail in these matters, and we could in the future incur judgments, enter into settlements of claims or revise our expectations regarding the outcome of these matters, which could materially impact our results of operations.

Q. Our effective tax rate was 30 percent and 25 percent for the three months and six months ended June 30, 2013, respectively, primarily due to the decrease in the valuation allowance resulting from the partial utilization of our U.S. Federal net operating loss carryforward. The effective tax rate for the first half of 2013 includes an $11 million state income tax benefit on uncertain tax positions primarily due to the expiration of applicable statutes of limitation.

In the second quarter of 2012, the Company incurred income tax expense of $31 million on a pre-tax loss from continuing operations of $12 million and for the first half of 2012 the effective tax rate was 79 percent. The unusual 2012 tax rate is primarily due to losses in certain jurisdictions providing no tax benefit and an increase in the valuation allowance related to net operating losses. The effective tax rate for the first half of 2012 includes a $21 million state income tax benefit on uncertain tax positions primarily from the expiration of applicable statutes of limitations in various jurisdictions and certain audit closings.

As a result of expirations of applicable statutes of limitations in various jurisdictions expected to transpire or occur 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 $3 million.

22

MASCO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (concluded)

Note Q – concluded:

The accounting guidance for income taxes requires that the future realization of deferred tax assets depends on the existence of sufficient taxable income in future periods. Possible sources of taxable income include taxable income in carryback periods, the future reversal of existing taxable temporary differences recorded as a deferred tax liability, tax-planning strategies that generate future income or gains in excess of anticipated losses in the carryforward period and projected future taxable income.

If, based upon all available evidence, both positive and negative, it is more likely than not (more than 50 percent likely) such deferred tax assets will not be realized, a valuation allowance is recorded. Significant weight is given to positive and negative evidence that is objectively verifiable. A company’s three-year cumulative loss position is significant negative evidence in considering whether deferred tax assets are realizable and the accounting guidance restricts the amount of reliance that can be placed on projected taxable income to support the recovery of the deferred tax assets.

In the fourth quarter of 2010, we recorded a $372 million valuation allowance against our U.S. Federal deferred tax assets as a non-cash charge to income tax expense. In reaching this conclusion, we considered the weaker retail sales of certain of our building products and the slower than anticipated recovery in the U.S. housing market which led to U.S. operating losses and significant U.S. goodwill impairment charges, that primarily occurred in the fourth quarter of 2010, causing us to be in a three-year cumulative U.S. loss position.

During 2012 and 2011, objective and verifiable negative evidence, such as U.S. operating losses and significant impairment charges for U.S. goodwill in 2011 and other intangible assets, continued to outweigh positive evidence necessary to reduce the valuation allowance. As a result, we recorded increases of $65 million and $89 million in the valuation allowance related to our U.S. Federal deferred tax assets as a non-cash charge to income tax expense in 2012 and 2011, respectively.

A return to sustainable profitability in the U.S. is required before we would change our judgment regarding the need for a valuation allowance against our deferred tax assets.

Although the recent strengthening in new home construction activity has resulted in profitability in the Company’s U.S. operations during the first half of 2013, we continue to record a full valuation allowance against the U.S. Federal deferred tax assets as the Company is expected to remain in a three-year cumulative loss position throughout 2013.

It is reasonably possible that the continued improvements in our U.S. operations could result in the objective positive evidence necessary to warrant the reversal of all or a portion of the valuation allowance as early as the fourth quarter of 2014. Until such time, the profits from our U.S. operations will be offset by the net operating loss carryforward resulting in a lower U.S. effective tax rate.

23

MASCO CORPORATION

Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

SECOND QUARTER 2013 AND THE FIRST SIX MONTHS 2013 VERSUS

SECOND QUARTER 2012 AND THE FIRST SIX MONTHS 2012

SALES AND OPERATIONS

The following table sets forth the Company’s net sales and operating profit margins by business segment and geographic area, dollars in millions:

	Three Months Ended June 30,				Percent Increase
	2013		2012		2013 vs. 2012
Net Sales:
Cabinets and Related Products	$	265	$	253		5	%
Plumbing Products		802		738		9	%
Installation and Other Services		357		296		21	%
Decorative Architectural Products		565		517		9	%
Other Specialty Products		160		141		13	%
Total	$	2,149	$	1,945		10	%
North America	$	1,765	$	1,587		11	%
International, principally Europe		384		358		7	%
Total	$	2,149	$	1,945		10	%
	Six Months Ended June 30,
	2013		2012
Net Sales:
Cabinets and Related Products	$	501	$	481		4	%
Plumbing Products		1,564		1,480		6	%
Installation and Other Services		669		574		17	%
Decorative Architectural Products		997		951		5	%
Other Specialty Products		294		265		11	%
Total	$	4,025	$	3,751		7	%
North America	$	3,275	$	3,018		9	%
International, principally Europe		750		733		2	%
Total	$	4,025	$	3,751		7	%

	Three Months Ended June 30,						Six Months Ended June 30,
	2013			2012			2013			2012
Operating Profit (Loss) Margins: (A)
Cabinets and Related Products		0.8	%		(2.0	%)		(0.4	%)		(4.4	%)
Plumbing Products		12.7	%		9.5	%		12.0	%		11.3	%
Installation and Other Services		2.2	%		(3.0	%)		0.6	%		(4.0	%)
Decorative Architectural Products		18.4	%		18.4	%		19.4	%		17.7	%
Other Specialty Products		6.9	%		4.3	%		3.4	%		0.4	%
North America		10.5	%		7.9	%		9.9	%		7.1	%
International, principally Europe		10.9	%		8.9	%		9.1	%		10.8	%
Total		10.6	%		8.1	%		9.8	%		7.8	%
Total operating profit margin, as reported		8.7	%		2.8	%		8.0	%		4.3	%

(A) Before general corporate expense, net, gain from sale of fixed assets, and charge for litigation settlements, net; see Note L to the condensed consolidated financial statements.

24

MASCO CORPORATION

Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

We report our financial results in accordance with generally accepted accounting principles (“GAAP”) in the United States. However, we believe that certain non-GAAP performance measures and ratios used in managing the business may provide users of this financial information with additional meaningful comparisons between current results and results in prior periods. Non-GAAP performance measures and ratios should be viewed in addition to, and not as an alternative for, our reported results.

NET SALES

Net sales increased ten percent and seven percent for the three-month and six-month periods ended June 30, 2013, respectively, from the comparable periods of 2012. Currency translation and the sales related to the acquisition of a small U.K door business did not significantly affect our sales. The following table reconciles reported net sales to net sales, excluding acquisitions and the effect of currency translation, in millions:

	Three Months Ended June 30,					Six Months Ended June 30,
	2013			2012		2013			2012
Net sales, as reported	$	2,149		$	1,945	$	4,025		$	3,751
Acquisitions		(3	)		—		(6	)		—
Net sales, excluding acquisitions		2,146			1,945		4,019			3,751
Currency translation		(3	)		—		(3	)		—
Net sales, excluding acquisitions and the effect of currency translation	$	2,143		$	1,945	$	4,016		$	3,751

North American net sales were positively impacted by increased sales volume of cabinets (such increase in cabinets was completely offset by a less favorable product mix), installation and other services, plumbing products, paints and stains, windows and builders’ hardware, which, in the aggregate, increased sales by ten percent and seven percent for the three-month and six-month periods ended June 30, 2013, respectively, from the comparable periods of 2012. Net sales in both periods were also positively affected by net selling price increases, primarily related to cabinets, installation and other services and windows, which increased sales by one percent for both the three-month and six-month periods ended June 30, 2013, from the comparable periods of 2012.

A weaker U.S. dollar increased International net sales by one percent in the three-month period ended June 30, 2013 compared to the same period of 2012. In local currencies, net sales from International operations increased six percent and two percent for the three-month and six-month periods ended June 30, 2013, respectively, primarily due to increased sales volume and selling price increases of International plumbing products.

Net sales of Cabinets and Related Products increased due to increased sales volume and selling prices of North American cabinets, resulting in sales growth in this segment of 12 percent and 11 percent in the three-month and six-month periods ended June 30, 2013, respectively, from the comparable periods of 2012. Such increases were offset by a less favorable product mix related to North American cabinets, which reduced sales in this segment by seven percent for both the three-month and six-month periods ended June 30, 2013 from the comparable periods of 2012.

25

MASCO CORPORATION

Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Net sales of Plumbing Products increased due to increased sales volume and increased selling prices of both North American and international operations, which, on a combined basis, increased sales by nine percent and six percent for the three-month and six-month periods ended June 30, 2013, from the comparable periods of 2012, respectively.

Net sales of Installation and Other Services increased for the three-month and six-month periods ended June 30, 2013, primarily due to increased sales volume related to a higher level of activity in new home construction, as well as increased sales volume of retrofit and commercial sales. Net sales in this segment were also positively affected by increased selling prices.

Net sales of Decorative Architectural Products increased for the three-month and six-month periods ended June 30, 2013, due to increased sales volume of paints and stains and builders’ hardware, partially offset by lower selling prices.

Net sales of Other Specialty Products increased for the three-month and six-month periods ended June 30, 2013, compared with the same periods in 2012, due to increased sales volume and increased selling prices of North American windows in the Western U.S. A stronger U.S. dollar decreased sales by one percent in both the three-month and six-month periods ended June 30, 2013 compared to 2012.

OPERATING MARGINS

Our gross profit margins were 28.3 percent and 27.8 percent for the three-month and six-month periods ended June 30, 2013, respectively, compared with 26.8 percent for each of the comparable periods of 2012. Selling, general and administrative expenses, as a percentage of sales, were 19.6 percent and 19.8 percent for the three-month and six-month periods ended June 30, 2013, respectively, compared to 20.2 percent and 20.5 percent, respectively, for the comparable periods of 2012.

Gross profit margins and selling, general and administrative expenses for both the three-month and six-month periods ended June 30, 2013 were positively affected by increased sales volume, which offset the impact of increased business rationalization costs. Gross profit for the six-month period ended June 30, 2013 was also positively affected by a more favorable relationship between selling prices and commodity costs.

We have been focused on the strategic rationalization of our businesses, including business consolidations, plant closures, headcount reductions, system implementations and other initiatives. Operating profit for the three-month and six-month periods ended June 30, 2013 includes $18 million and $26 million, respectively, of costs and charges related to our business rationalizations and other initiatives. For the three-month and six-month periods ended June 30, 2012, we incurred costs and charges of $7 million and $18 million, respectively, related to these initiatives.

We anticipate that full-year 2013 rationalization charges for the entire Company will aggregate approximately $55 million compared to our previous estimate of $40 million. The increase in our full-year estimate of business rationalization costs is due to additional plant closures and headcount reductions related to a business integration within our Plumbing Products segment. We continue to evaluate our businesses for opportunities to improve our cost structure and business processes, which may result in additional rationalization charges.

26

MASCO CORPORATION

Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Operating margins in the Cabinets and Related Products segment for the three-month and six-month periods ended June 30, 2013 reflect a more favorable relationship between selling prices and commodity costs and the benefits associated with business rationalization activities and other cost savings initiatives, partially offset by a less favorable product mix and increased business rationalization costs.

Operating margins in the Plumbing Products segment for the three-month and six-month periods ended June 30, 2013 were positively impacted by increased sales volume, a more favorable relationship between selling prices and commodity costs (including the impact of the metal hedge contracts), partially offset by a less favorable product mix.

Operating margins in the Installation and Other Services segment for the three-month and six-month periods ended June 30, 2013 were positively impacted by increased sales volume and the related absorption of fixed costs.

Operating margins in the Decorative Architectural Products segment for the three-month period ended June 30, 2013 were positively affected by increased sales volume; such increases were completely offset by a less favorable relationship between selling prices and commodity costs and increased advertising costs. For the six-month period ended June 30, 2013, this segment was positively affected by increased sales volume.

Operating margins in the Other Specialty Products segment for the three-month and six-month periods ended June 30, 2013 reflect increased sales volume and the related absorption of fixed costs, as well as a more favorable relationship between selling prices and commodity costs, partially offset by increased business rationalization costs.

OTHER INCOME (EXPENSE), NET

Interest expense for the three-month and six-month periods ended June 30, 2013 decreased $8 million and $12 million, respectively, from the comparable periods of 2012 primarily due to the repurchase and retirement of $791 million of 5.875% Notes in 2012, partially offset by the issuance of 5.95% Notes due 2022. This activity resulted in a net debt reduction of $400 million in 2012.

Other items, net, for the three-month and six-month periods ended June 30, 2013 included $(2) million and $1 million, respectively, of currency transaction (losses) gains. Other items, net, for the six-month period ended June 30, 2012 included $1 million of currency transaction losses.

Other, net, for the three-month and six-month periods ended June 30, 2013 included income of $5 million and $8 million, respectively, related to distributions from private equity funds and income from other financial investments. Other, net, for the three-month and six-month periods ended June 30, 2012 included gains of $2 million and $18 million, respectively, related to distributions from private equity funds. Other, net for the three-month and six-month periods ended June 30, 2012 included impairment of $2 million related to a private equity fund.

27

MASCO CORPORATION

Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

INCOME (LOSS) PER COMMON SHARE FROM CONTINUING OPERATIONS – Attributable to Masco Corporation

Income (loss) for the three-month and six-month periods ended June 30, 2013 was $82 million and $138 million compared with $(51) million and $(9) million for the comparable periods of 2012. Diluted earnings (loss) per common share for the three-month and six-month periods ended June 30, 2013 was $.23 per common share and $.38 per common share, respectively, compared with $(.15) per common share and $(.03) per common share, respectively, for the comparable periods of 2012. (Loss) for both the three-month and six-month periods ended June 30, 2012 included a charge for litigation settlement of $75 million.

Our effective tax rate was 30 percent and 25 percent for the three months and six months ended June 30, 2013, respectively, primarily due to the decrease in the valuation allowance resulting from the partial utilization of our U.S. Federal net operating loss carryforward. The effective tax rate for the first half of 2013 includes an $11 million state income tax benefit on uncertain tax positions primarily due to the expiration of applicable statutes of limitation.

In the second quarter of 2012, the Company incurred income tax expense of $31 million on a pre-tax loss from continuing operations of $12 million and for the first half of 2012 the effective tax rate was 79 percent. The 2012 tax rate is higher than our normalized tax rate of 36 percent primarily due to losses in certain jurisdictions providing no tax benefit and an increase in the valuation allowance related to net operating losses. The effective tax rate for the first half of 2012 includes a $21 million state income tax benefit on uncertain tax positions primarily from the expiration of applicable statutes of limitations in various jurisdictions and certain audit closings.

A return to sustainable profitability in the U.S. is required before we would change our judgment regarding the need for a valuation allowance against our deferred tax assets. It is reasonably possible that the continued improvements in our U.S. operations could result in the objective positive evidence necessary to warrant the reversal of all or a portion of the valuation allowance as early as the end of 2014. Until such time, the profits from our U.S. operations will be offset by the net operating loss carryforward resulting in a lower U.S. effective tax rate.

OTHER FINANCIAL INFORMATION

Our current ratio was 1.7 to 1 at both June 30, 2013 and December 31, 2012.

For the six months ended June 30, 2013, cash of $59 million was provided by operating activities. First half 2013 cash from operations was affected by an expected and annually recurring seasonal first half increase in accounts receivable and inventories compared with December 31, 2012.

Net cash used for financing activities was $127 million. Financing activities include $54 million for the payment of cash dividends, $34 million for the payment of dividends to noncontrolling interests and $35 million for the acquisition of Company common stock in open-market transactions to offset the dilutive impact of long-term stock awards granted in 2013. Net cash used for investing activities was $51 million, including $59 million for capital expenditures, partially offset by net proceeds from financial investments of $11 million and net proceeds from the sale of fixed assets of $7 million.

28

MASCO CORPORATION

Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Our cash and cash investments were $1.2 billion and $1.4 billion at June 30, 2013 and December 31, 2012, respectively. Our cash and cash investments consist of overnight interest bearing money market demand and time deposit accounts, money market mutual funds and government securities.

Of the $1.2 billion and the $1.4 billion of cash and cash investments held at June 30, 2013 and December 31, 2012, $483 million and $572 million, respectively, is held in foreign subsidiaries. If these funds were needed for our operations in the U.S., their repatriation into the U.S. may result in additional U.S. income taxes or foreign withholding taxes. The amount of such taxes is dependent on the income tax laws and circumstances at the time of distribution.

On March 28, 2013, the Company entered into a credit agreement (the “New Credit Agreement”) with a bank group, with an aggregate commitment of $1.25 billion and a maturity date of March 28, 2018. Upon entry into the New Credit Agreement, the Company’s credit agreement dated as of June 21, 2010, as amended, with an aggregate commitment of $1.25 billion, was terminated. See Note H to the financial statements.

Based on the limitations of the debt to total capitalization covenant in the New Credit Agreement, at June 30, 2013, the Company had additional borrowing capacity, subject to availability, of up to $910 million. Additionally, at June 30, 2013, the Company could absorb a reduction to shareholders’ equity of approximately $490 million and remain in compliance with the debt to total capitalization covenant.

We were in compliance with all covenants and had no borrowings under our credit agreement at June 30, 2013.

We have $200 million of 7.125% Notes due August 15, 2013 (“Notes”). We plan to use available cash to retire the Notes.

We believe that our present cash balance, cash flows from operations and, to the extent necessary, bank borrowings and future financial market activities, are sufficient to fund our working capital and other investment needs.

OUTLOOK FOR THE COMPANY

We continue to make progress on our strategic initiatives, which include leveraging our brands, reducing our costs, improving our Installation and Cabinets segments and strengthening our balance sheet. We are encouraged by the continued strength in new home construction activity, driven by the stabilization and improvement of home prices in many areas of the U.S., increasing affordability and demographics. These factors should continue to drive demand for new homes over the next several years. Increased new home construction activity benefits virtually all of our businesses.

We believe and are confident that the long-term fundamentals for the new home construction and home improvement markets continue to be positive. We believe that our strong financial position, together with our current strategy of investing in leadership brands, including KRAFTMAID^® and MERILLAT^® cabinets, DELTA^® and HANSGROHE^® faucets, BEHR^® paint and MILGARD^® windows, our continued focus on innovation and our commitment to lean principles, will allow us to drive long-term growth and create value for our shareholders.

29

MASCO CORPORATION

Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

FORWARD-LOOKING STATEMENTS

Statements contained in this report that reflect our views about our future performance constitute “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “believe,” “anticipate,” “appear,” “may,” “will,” “intend,” “plan,” “estimate,” “expect,” “assume,” “seek,” “should,” “forecast,” and similar references to future periods. These views involve risks and uncertainties that are difficult to predict and, accordingly, our actual results may differ materially from the results discussed in our forward-looking statements. We caution you against relying on any of these forward-looking statements. Our future performance may be affected by our reliance on new home construction and home improvement, our reliance on key customers, the cost and availability of raw materials, the uncertainty in the international economy, shifts in consumer preferences and purchasing practices, our ability to improve our underperforming businesses and our ability to maintain our competitive positions in our industries. These and other factors are discussed in detail in Item 1A, “Risk Factors” in our most recent Annual Report on Form 10-K. Our forward-looking statements in this report speak only as of the date of this report. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. Unless required by law, we undertake no obligation to update publicly any forward-looking statements as a result of new information, future events or otherwise.

30

MASCO CORPORATION

Item 4. CONTROLS AND PROCEDURES

a. Evaluation of Disclosure Controls and Procedures.

The Company’s principal executive officer and principal financial officer have concluded, based on an evaluation of the Company’s disclosure controls and procedures (as defined in the Securities Exchange Act of 1934 Rules 13a-15(e) or 15d-15(e)) as required by paragraph (b) of Exchange Act Rules 13a-15 or 15d-15 that, as of June 30, 2013, the Company’s disclosure controls and procedures were effective.

b. Changes in Internal Control over Financial Reporting.

In connection with the evaluation of the Company’s “internal control over financial reporting” that occurred during the quarter ended June 30, 2013, 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.

31

MASCO CORPORATION

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

Information regarding legal proceedings involving us is set forth in Note P to our condensed consolidated financial statements included in Part I, Item 1 of this Report and is incorporated herein by reference.

Item 1A. Risk Factors

There have been no material changes to the risk factors of the Company set forth in Item 1A, “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012.

32

MASCO CORPORATION

PART II. OTHER INFORMATION (continued)

Item 6. Exhibits

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

33

MASCO CORPORATION

PART II. OTHER INFORMATION, concluded

SIGNATURE

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

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

July 31, 2013

34

MASCO CORPORATION

EXHIBIT INDEX

Exhibit
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

EX-12

Exhibit 12

MASCO CORPORATION

Computation of Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends

	(Dollars in Millions)
	Six Months Ended June 30,		Year Ended December 31,
	2013		2012		2011			2010			2009			2008
Earnings Before Income Taxes, Preferred Stock Dividends and Fixed Charges:
Income (loss) from continuing operations before income taxes	$	210	$	73	$	(392	)	$	(745	)	$	(151	)	$	(145	)
Deduct equity in undistributed earnings of fifty-percent-or-less-owned companies		—		—		—			—			—			(1	)
Add interest on indebtedness, net		118		249		250			249			224			228
Add amortization of debt expense		3		7		7			7			5			4
Add estimated interest factor for rentals		15		31		33			36			44			51
Earnings (loss) before income taxes, noncontrolling interest, net, fixed charges and preferred stock dividends	$	346	$	360	$	(102	)	$	(453	)	$	122		$	137
Fixed Charges:
Interest on indebtedness	$	117	$	248	$	249		$	246		$	221		$	228
Amortization of debt expense		3		7		7			7			5			4
Estimated interest factor for rentals		15		31		33			36			44			51
Total fixed charges	$	135	$	286	$	289		$	289		$	270		$	283
Preferred stock dividends (a)	$	—	$	—	$	—		$	—		$	—		$	—
Combined fixed charges and preferred stock dividends	$	135	$	286	$	289		$	289		$	270		$	283
Ratio of earnings to fixed charges		2.6		1.3		(0.4	)		(1.6	)		0.5			0.5
Ratio of earnings to combined fixed charges and preferred stock dividends		2.6		1.3		(0.4	)		(1.6	)		0.5			0.5
Ratio of earnings to combined fixed charges and preferred stock dividends excluding certain items (b)		2.6		1.7		1.2			1.0			1.5			2.2

(a) Represents amount of income before provision for income taxes required to meet the preferred stock dividend requirements of the Company.

(b) Excludes the 2012 non-cash, pre-tax impairment charge for other intangible assets of $42 million and litigation expense of $77 million; the 2011 non-cash, pre-tax impairment charge for goodwill and other intangible assets of $450 million and litigation expense of $9 million; the 2010 non-cash, pre-tax impairment charge for goodwill and other intangible assets of $698 million and non-cash, pre-tax impairment charges 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; and 2008 non-cash, pre-tax impairment charge for goodwill and other intangible assets of $415 million, financial investments of $58 million and litigation expense of $9 million.

35

EX-31.(A)

Exhibit 31a

MASCO CORPORATION

Certification Required by Rule 13a-14(a) or 15d-14(a)

of the Securities Exchange Act of 1934

I, Timothy Wadhams, certify that:

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 registrant’s 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 registrant’s 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 registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s 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 registrant’s 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 registrant’s internal control over financial reporting.

Date: July 31, 2013	By:	/s/ Timothy Wadhams
		Timothy Wadhams
		President and Chief Executive Officer

36

EX-31.(B)

Exhibit 31b

MASCO CORPORATION

Certification Required by Rule 13a-14(a) or 15d-14(a)

of the Securities Exchange Act of 1934

I, John G. Sznewajs, certify that:

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 registrant’s 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 registrant’s 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 registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s 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 registrant’s 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 registrant’s internal control over financial reporting.

Date: July 31, 2013	By:	/s/ John G. Sznewajs
		John G. Sznewajs
		Vice President, Treasurer and Chief Financial Officer

37

EX-32

Exhibit 32

MASCO CORPORATION

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

The certification set forth below is being submitted in connection with the Masco Corporation Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2013 (the “Report”) for the purpose of complying with Rule 13a-14(b) or Rule 15d-14(b) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Section 1350 of Chapter 63 of Title 18 of the United States Code.

Timothy Wadhams, the President and Chief Executive Officer, and John G. Sznewajs, the Vice President, Treasurer and Chief Financial Officer, of Masco Corporation, each certifies that, to the best of his knowledge:

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:	July 31, 2013	/s/ Timothy Wadhams
		Name:	Timothy Wadhams
		Title:	President and Chief Executive Officer
Date:	July 31, 2013	/s/ John G. Sznewajs
		Name:	John G. Sznewajs
		Title:	Vice President, Treasurer and Chief Financial Officer

38

XML

Stock-Based Compensation

6 Months Ended

Jun. 30, 2013

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Stock-Based Compensation

I. The Company’s 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 June 30, 2013, 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				Six Months Ended
	June 30,				June 30,
	2013		2012		2013		2012
Long-term stock awards	$	11	$	11	$	20	$	19
Stock options		5		4		10		9
Phantom stock awards and stock appreciation rights		—		1		3		6
Total	$	16	$	16	$	33	$	34
Income tax benefit (37 percent tax rate – before valuation allowance)	$	6	$	6	$	12	$	13

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 in the open market. The Company granted 1,623,080 shares of long-term stock awards in the six months ended June 30, 2013.

The Company’s long-term stock award activity was as follows, shares in millions:

	Six Months Ended
	June 30,
	2013		2012
Unvested stock award shares at January 1		8		10
Weighted average grant date fair value	$	16	$	17
Stock award shares granted		2		1
Weighted average grant date fair value	$	20	$	12
Stock award shares vested		2		2
Weighted average grant date fair value	$	16	$	17
Stock award shares forfeited		—		—
Weighted average grant date fair value	$	18	$	18
Unvested stock award shares at June 30		8		9
Weighted average grant date fair value	$	17	$	16

At June 30, 2013 and 2012, there was $83 million and $92 million, respectively, of total unrecognized compensation expense related to unvested stock awards; such awards had a weighted average remaining vesting period of four years in both periods.

The total market value (at the vesting date) of stock award shares which vested during the six months ended June 30, 2013 and 2012 was $32 million and $23 million, respectively.

Stock Options. Stock options are granted to key employees of the Company. The exercise price equals the market price of the Company’s 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 869,000 of stock option shares in the six months ended June 30, 2013 with a grant date exercise price approximating $20 per share. In the first six months of 2013, 1,182,470 stock option shares were forfeited (including options that expired unexercised).

The Company’s stock option activity was as follows, shares in millions:

	Six Months Ended
	June 30,
	2013		2012
Option shares outstanding, January 1		30		36
Weighted average exercise price	$	21	$	21
Option shares granted, including restoration options		1		1
Weighted average exercise price	$	20	$	12
Option shares exercised		2		—
Aggregate intrinsic value on date of exercise (A)	$	21 million	$	1 million
Weighted average exercise price	$	11	$	9
Option shares forfeited		1		3
Weighted average exercise price	$	23	$	19
Option shares outstanding, June 30		28		34
Weighted average exercise price	$	22	$	21
Weighted average remaining option term (in years)		4		5
Option shares vested and expected to vest, June 30		28		34
Weighted average exercise price	$	22	$	21
Aggregate intrinsic value (A)	$	69 million	$	29 million
Weighted average remaining option term (in years)		4		5
Option shares exercisable (vested), June 30		23		26
Weighted average exercise price	$	24	$	24
Aggregate intrinsic value (A)	$	37 million	$	15 million
Weighted average remaining option term (in years)		3		4

(A) Aggregate intrinsic value is calculated using the Company’s stock price at each respective date, less the exercise price (grant date price) multiplied by the number of shares.

At June 30, 2013 and 2012, there was $12 million and $24 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 two years and three years in 2013 and 2012, respectively.

The weighted average grant date fair value of option shares granted and the assumptions used to estimate those values using a Black-Scholes option pricing model were as follows:

	Six Months Ended
	June 30,
	2013			2012
Weighted average grant date fair value	$	8.33		$	4.44
Risk-free interest rate		1.20	%		1.10	%
Dividend yield		1.47	%		2.57	%
Volatility factor		49.00	%		51.00	%
Expected option life		6 years			6 years

XML

Warranty - Changes in Warranty Liability (Detail) (USD $) In Millions, unless otherwise specified	6 Months Ended	12 Months Ended
	Jun. 30, 2013	Dec. 31, 2012
Warrant Liability [Abstract]
Balance at beginning of period	$ 118	$ 102
Accruals for warranties issued during the period	18	42
Accruals related to pre-existing warranties	4	16
Settlements made (in cash or kind) during the period	(20)	(38)
Other, net	1	(4)
Balance at end of period	$ 121	$ 118

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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Income Statement [Abstract]
Net sales	$ 2,149	$ 1,945	$ 4,025	$ 3,751
Cost of sales	1,540	1,424	2,908	2,746
Gross profit	609	521	1,117	1,005
Selling, general and administrative expenses	421	392	797	769
Charge for litigation settlements, net		75		73
Operating profit	188	54	320	163
Other income (expense), net:
Interest expense	(60)	(68)	(120)	(132)
Other, net	3	2	10	17
Total other income (expense), net	(57)	(66)	(110)	(115)
Income (loss) from continuing operations before income taxes	131	(12)	210	48
Income taxes	39	31	53	38
Income (loss) from continuing operations	92	(43)	157	10
Loss from discontinued operations	(5)	(24)	(14)	(33)
Net income (loss)	87	(67)	143	(23)
Less: Net income attributable to noncontrolling interest	10	8	19	19
Net income (loss)	77	(75)	124	(42)
Basic:
Income (loss) from continuing operations	$ 0.23	$ (0.15)	$ 0.39	$ (0.03)
Loss from discontinued operations	$ (0.01)	$ (0.07)	$ (0.04)	$ (0.09)
Net income (loss)	$ 0.22	$ (0.22)	$ 0.35	$ (0.12)
Diluted:
Income (loss) from continuing operations	$ 0.23	$ (0.15)	$ 0.38	$ (0.03)
Loss from discontinued operations	$ (0.01)	$ (0.07)	$ (0.04)	$ (0.09)
Net income (loss)	$ 0.21	$ (0.22)	$ 0.34	$ (0.12)
Amounts attributable to Masco Corporation:
Income (loss) from continuing operations	82	(51)	138	(9)
Loss from discontinued operations	(5)	(24)	(14)	(33)
Net income (loss)	$ 77	$ (75)	$ 124	$ (42)

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Discontinued Operations

6 Months Ended

Jun. 30, 2013

Discontinued Operations And Disposal Groups [Abstract]

Discontinued Operations

B. In the first quarter of 2013, the Company determined that Tvilum, its Danish ready-to-assemble cabinet business, is no longer core to its long-term growth strategy and, accordingly, the Company has embarked on a plan for disposition. The Company has accounted for this business and those which were sold in 2012 as discontinued operations. Selected financial information for the discontinued operations, during the period owned by the Company, was as follows, in millions:

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2013			2012			2013			2012
Net Sales	$	60		$	80		$	119		$	169
Operating loss from discontinued operations	$	(5	)	$	(10	)	$	(8	)	$	(21	)
Impairment of assets		—			—			(10	)		—
Loss on disposal of discontinued operations, net		—			(2	)		—			(3	)
Loss before income tax		(5	)		(12	)		(18	)		(24	)
Income tax expense (benefit)		—			12			(4	)		9
Loss from discontinued operations, net	$	(5	)	$	(24	)	$	(14	)	$	(33	)

Included in impairment of assets in 2013 is the impairment of fixed assets held for sale. During the first quarter of 2013, the Company estimated the fair value of the business held for sale, using unobservable inputs (Level 3). After considering the currency translation gains reported in Accumulated Other Comprehensive Income, the Company recorded an impairment of $10 million in the first quarter of 2013; no further adjustment was made in the second quarter of 2013.

The unusual relationship between income tax expense and loss before income tax in 2012 results primarily from the increase in the deferred tax liability associated with the abandonment of tax basis in indefinite-lived intangibles due to the disposition of certain discontinued operations.

The following balance sheet items have been reclassified as held for sale:

	June 30,		December 31,
	2013		2012
Receivables	$	36	$	32
Inventories		64		66
Prepaid expenses and other		1		2
Property and equipment, net		91		103
Total assets	$	192	$	203
Accounts payable	$	36	$	31
Accrued liabilities		12		14
Deferred income taxes		—		4
Total liabilities	$	48	$	49

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Other Commitments and Contingencies

6 Months Ended

Jun. 30, 2013

Commitments And Contingencies Disclosure [Abstract]

Other Commitments and Contingencies

P.

We are subject to claims, charges, litigation and other proceedings in the ordinary course of our business, including those arising from or related to contractual matters, intellectual property, personal injury, environmental matters, product liability, product recalls, construction defect, insurance coverage, personnel and employment disputes and other matters, including class actions. We believe we have adequate defenses in these matters and that the outcome of these matters is not likely to have a material adverse effect on us. However, there is no assurance that we will prevail in these matters, and we could in the future incur judgments, enter into settlements of claims or revise our expectations regarding the outcome of these matters, which could materially impact our results of operations.

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Other Income (Expenses), Net - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Other Income And Expenses [Abstract]
Currency gains (losses) included in other items, net	$ (2)		$ 1	$ (1)

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Stock-Based Compensation - Pre-Tax Compensation Expense and Related Income Tax Benefit for Stock-Based Incentives (Parenthetical) (Detail)	6 Months Ended
	Jun. 30, 2013
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Tax rate - before valuation allowance	37.00%

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Employee Retirement Plans

6 Months Ended

Jun. 30, 2013

Compensation And Retirement Disclosure [Abstract]

Employee Retirement Plans

J. Net periodic pension cost for the Company’s defined-benefit pension plans was as follows, in millions:

	Three Months Ended June 30,
	2013					2012
	Qualified			Non-Qualified		Qualified			Non-Qualified
Service cost	$	1		$	—	$	1		$	—
Interest cost		10			2		10			2
Expected return on plan assets		(9	)		—		(9	)		—
Amortization of net loss		4			—		4			—
Net periodic pension cost	$	6		$	2		6			2

	Six Months Ended June 30,
	2013					2012
	Qualified			Non-Qualified		Qualified			Non-Qualified
Service cost	$	2		$	—	$	3		$	—
Interest cost		20			3		20			3
Expected return on plan assets		(18	)		—		(17	)		—
Amortization of net loss		8			1		7			1
Net periodic pension cost	$	12		$	4	$	13		$	4

The Company participates in 20 regional multi-employer pension plans, principally related to building trades; none of the plans are considered significant to the Company.

Effective January 1, 2010, the Company froze all future benefit accruals under substantially all of the Company’s domestic qualified and non-qualified defined benefit pension plans. Future benefit accruals related to the Company’s foreign non-qualified plans were frozen several years ago.

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Fair Value of Financial Investments and Liabilities - Additional Information (Detail) (USD $)			3 Months Ended	6 Months Ended
	Jun. 30, 2013	Dec. 31, 2012	Jun. 30, 2012 Assets at Fair Value (Level 3) [Member]	Jun. 30, 2012 Assets at Fair Value (Level 3) [Member]
Investment Holdings [Line Items]
Aggregate carrying value of remaining private equity funds			$ 4,000,000	$ 4,000,000
Impairment charges - private equity funds			2,000,000	2,000,000
Estimated market value of long-term and short-term debt	3,900,000,000	4,000,000,000
Aggregate carrying value of long-term and short-term debt	$ 3,600,000,000	$ 3,600,000,000

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Stock-Based Compensation - Additional Information (Detail) (USD $) In Millions, except Share data, unless otherwise specified	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Long-term stock awards, including restoration options	1,000,000	1,000,000
Total unrecognized compensation expense	$ 12	$ 24
Weighted average remaining vesting period in years	2 years	3 years
Total market value (at the vesting date) of stock award shares	32	23
Stock awards granted subsequent to January 1, 2010 have a vesting period, in years	4 years	5 years
Expiration date	6 years	6 years
Grant date exercise price per share	$ 20	$ 12
Stock option shares forfeited	1,000,000	3,000,000
Unvested Awards [Member]
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Total unrecognized compensation expense	$ 83	$ 92
Weighted average remaining vesting period in years	4 years	4 years
Stock Option [Member]
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Stock awards granted subsequent to January 1, 2010 have a vesting period, in years	5 years	5 years
Stock option shares granted	869,000
Grant date exercise price per share	$ 20
Stock option shares forfeited	1,182,470
Long-Term Stock Awards [Member]
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Long-term stock awards, including restoration options	1,623,080
Maximum [Member]
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Expiration date	10 years	10 years

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Discontinued Operations - Financial Information for Discontinued Operations (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended			6 Months Ended
	Jun. 30, 2013	Mar. 31, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Discontinued Operations And Disposal Groups [Abstract]
Net Sales	$ 60		$ 80	$ 119	$ 169
Operating loss from discontinued operations	(5)		(10)	(8)	(21)
Impairment of assets	0	(10)		(10)
Loss on disposal of discontinued operations, net			(2)		(3)
Loss before income tax	(5)		(12)	(18)	(24)
Income tax expense (benefit)			12	(4)	9
Loss from discontinued operations, net	$ (5)		$ (24)	$ (14)	$ (33)

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Discontinued Operations (Tables)

6 Months Ended

Jun. 30, 2013

Discontinued Operations And Disposal Groups [Abstract]

Financial Information for Discontinued Operations

Selected financial information for the discontinued operations, during the period owned by the Company, was as follows, in millions:

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2013			2012			2013			2012
Net Sales	$	60		$	80		$	119		$	169
Operating loss from discontinued operations	$	(5	)	$	(10	)	$	(8	)	$	(21	)
Impairment of assets		—			—			(10	)		—
Loss on disposal of discontinued operations, net		—			(2	)		—			(3	)
Loss before income tax		(5	)		(12	)		(18	)		(24	)
Income tax expense (benefit)		—			12			(4	)		9
Loss from discontinued operations, net	$	(5	)	$	(24	)	$	(14	)	$	(33	)

Balance Sheet Items Reclassified as Held for Sale

The following balance sheet items have been reclassified as held for sale:

	June 30,		December 31,
	2013		2012
Receivables	$	36	$	32
Inventories		64		66
Prepaid expenses and other		1		2
Property and equipment, net		91		103
Total assets	$	192	$	203
Accounts payable	$	36	$	31
Accrued liabilities		12		14
Deferred income taxes		—		4
Total liabilities	$	48	$	49

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Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2013

Accounting Policies [Abstract]

Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements. On January 1, 2013, the Company adopted new accounting guidance requiring disclosure of amounts reclassified from accumulated other comprehensive income. The adoption of this new guidance did not have an impact on the Company’s financial position or its results of operations.

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Fair Value of Financial Investments and Liabilities - Recurring Fair Value Measurements (Detail) (USD $) In Millions, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, fair value disclosure	$ 91	$ 95
Recurring Investments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, fair value disclosure	22	22
Auction Rate Securities [Member] | Recurring Investments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, fair value disclosure	22	22
Assets at Fair Value (Level 1) [Member] | Recurring Investments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, fair value disclosure
Assets at Fair Value (Level 1) [Member] | Auction Rate Securities [Member] | Recurring Investments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, fair value disclosure
Assets at Fair Value (Level 2) [Member] | Recurring Investments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, fair value disclosure
Assets at Fair Value (Level 2) [Member] | Auction Rate Securities [Member] | Recurring Investments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, fair value disclosure
Assets at Fair Value (Level 3) [Member] | Recurring Investments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, fair value disclosure	22	22
Assets at Fair Value (Level 3) [Member] | Auction Rate Securities [Member] | Recurring Investments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, fair value disclosure	$ 22	$ 22

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Accumulated Other Comprehensive Income (loss) (Tables)

6 Months Ended

Jun. 30, 2013

Equity [Abstract]

Reclassifications from Accumulated Other Comprehensive Income (Loss) to Income Statement

The reclassifications from accumulated other comprehensive income (loss) to the income statement were as follows, in millions:

	Amount Reclassified
Accumulated Other Comprehensive Income (Loss)	Three Months Ended				Six Months Ended
	June 30,				June 30,				Income Statement
	2013		2012		2013		2012		Line Item
Amortization of defined benefit pension:
Actuarial losses, net	$	4	$	4	$	9	$	8	Selling, General & Administrative Expense
		—		—		—		—	Tax expense
	$	4	$	4	$	9	$	8	Net of tax
Interest rate swaps	$	1	$	—	$	1	$	—	Interest expense

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Discontinued Operations - Balance Sheet Items Reclassified as Held for Sale (Detail) (Held For Sale [Member], USD $) In Millions, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Held For Sale [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Receivables	$ 36	$ 32
Inventories	64	66
Prepaid expenses and other	1	2
Property and equipment, net	91	103
Total assets	192	203
Accounts payable	36	31
Accrued liabilities	12	14
Deferred income taxes		4
Total liabilities	$ 48	$ 49

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Fair Value of Financial Investments and Liabilities - Income from Financial Investments Net, Included in Other, Net, Within Other Income (Expense), Net (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Schedule of Investments [Line Items]
Total income from financial investments	$ 5	$ 2	$ 8	$ 18
Private Equity Funds [Member]
Schedule of Investments [Line Items]
Realized gains from private equity funds	4	2	7	18
Income from other investments, net	1		1
Impairment charges - private equity funds		$ (2)		$ (2)

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Warranty (Tables)

6 Months Ended

Jun. 30, 2013

Guarantees [Abstract]

Changes in Warranty Liability

G. Changes in the Company’s warranty liability were as follows, in millions:

	Six Months Ended			Twelve Months Ended
	June 30, 2013			December 31, 2012
Balance at January 1	$	118		$	102
Accruals for warranties issued during the period		18			42
Accruals related to pre-existing warranties		4			16
Settlements made (in cash or kind) during the period		(20	)		(38	)
Other, net		1			(4	)
Balance at end of period	$	121		$	118

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Segment Information - Company by Segment and Geographic Area (Parenthetical) (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Segment Reporting Information [Line Items]
Charge for litigation settlements, net		$ 75		$ 73
Installation and Other Services [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Charge for litigation settlements, net		$ 75		$ 75

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Segment Information - Company by Segment and Geographic Area (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Segment Reporting Information [Line Items]
Net sales	$ 2,149	$ 1,945	$ 4,025	$ 3,751
Operating profit	188	54	320	163
Gain from sale of fixed assets		5		5
(Charge) income for litigation settlements, net		(75)		(73)
Other income (expense), net	(57)	(66)	(110)	(115)
(Loss) income before income taxes	131	(12)	210	48
North America [Member]
Segment Reporting Information [Line Items]
Net sales	1,765	1,587	3,275	3,018
Operating profit	185	125	325	213
International, Principally Europe [Member]
Segment Reporting Information [Line Items]
Net sales	384	358	750	733
Operating profit	42	32	68	79
Combined Reporting Segments [Member]
Segment Reporting Information [Line Items]
Net sales	2,149	1,945	4,025	3,751
Operating profit	227	157	393	292
Operating Segments [Member] | Installation and Other Services [Member]
Segment Reporting Information [Line Items]
Net sales	357	296	669	574
Operating profit	8	(9)	4	(23)
(Charge) income for litigation settlements, net		(75)		(75)
Operating Segments [Member] | Cabinets and Related Products [Member]
Segment Reporting Information [Line Items]
Net sales	265	253	501	481
Operating profit	2	(5)	(2)	(21)
Operating Segments [Member] | Plumbing Products [Member]
Segment Reporting Information [Line Items]
Net sales	802	738	1,564	1,480
Operating profit	102	70	188	167
Operating Segments [Member] | Decorative Architectural Products [Member]
Segment Reporting Information [Line Items]
Net sales	565	517	997	951
Operating profit	104	95	193	168
Operating Segments [Member] | Other Specialty Products [Member]
Segment Reporting Information [Line Items]
Net sales	160	141	294	265
Operating profit	11	6	10	1
Corporate, Non-Segment [Member]
Segment Reporting Information [Line Items]
Operating profit	$ (39)	$ (33)	$ (73)	$ (61)

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Depreciation and Amortization Expense - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
Property Plant And Equipment Useful Life And Values [Abstract]
Depreciation and amortization expense	$ 94	$ 104
Accelerated depreciation	$ 9	$ 9

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Earnings Per Common Share - Additional Information (Detail) (USD $) In Millions, except Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive effect on computation of diluted earnings per common share	14,000,000	34,000,000	14,000,000	34,000,000
Grant of long term stock awards			1,000,000	1,000,000
Repurchase and retirement of common stock to offset the dilutive impact of long term stock awards			1,700,000
Repurchase and retirement of common stock cash aggregate to offset the dilutive effect			$ 35
Common stock outstanding under repurchase authorization	22,600,000		22,600,000
Cash dividends per common share paid	$ 0.075	$ 0.075	$ 0.150	$ 0.150
Cash dividends per common share declared	$ 0.075	$ 0.075	$ 0.150	$ 0.150
Long-Term Stock Awards [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Grant of long term stock awards			1,600,000

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Income Taxes

6 Months Ended

Jun. 30, 2013

Income Tax Disclosure [Abstract]

Income Taxes

Q. Our effective tax rate was 30 percent and 25 percent for the three months and six months ended June 30, 2013, respectively, primarily due to the decrease in the valuation allowance resulting from the partial utilization of our U.S. Federal net operating loss carryforward. The effective tax rate for the first half of 2013 includes an $11 million state income tax benefit on uncertain tax positions primarily due to the expiration of applicable statutes of limitation.

In the second quarter of 2012, the Company incurred income tax expense of $31 million on a pre-tax loss from continuing operations of $12 million and for the first half of 2012 the effective tax rate was 79 percent. The unusual 2012 tax rate is primarily due to losses in certain jurisdictions providing no tax benefit and an increase in the valuation allowance related to net operating losses. The effective tax rate for the first half of 2012 includes a $21 million state income tax benefit on uncertain tax positions primarily from the expiration of applicable statutes of limitations in various jurisdictions and certain audit closings.

As a result of expirations of applicable statutes of limitations in various jurisdictions expected to transpire or occur 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 $3 million.

The accounting guidance for income taxes requires that the future realization of deferred tax assets depends on the existence of sufficient taxable income in future periods. Possible sources of taxable income include taxable income in carryback periods, the future reversal of existing taxable temporary differences recorded as a deferred tax liability, tax-planning strategies that generate future income or gains in excess of anticipated losses in the carryforward period and projected future taxable income.

If, based upon all available evidence, both positive and negative, it is more likely than not (more than 50 percent likely) such deferred tax assets will not be realized, a valuation allowance is recorded. Significant weight is given to positive and negative evidence that is objectively verifiable. A company’s three-year cumulative loss position is significant negative evidence in considering whether deferred tax assets are realizable and the accounting guidance restricts the amount of reliance that can be placed on projected taxable income to support the recovery of the deferred tax assets.

In the fourth quarter of 2010, we recorded a $372 million valuation allowance against our U.S. Federal deferred tax assets as a non-cash charge to income tax expense. In reaching this conclusion, we considered the weaker retail sales of certain of our building products and the slower than anticipated recovery in the U.S. housing market which led to U.S. operating losses and significant U.S. goodwill impairment charges, that primarily occurred in the fourth quarter of 2010, causing us to be in a three-year cumulative U.S. loss position.

During 2012 and 2011, objective and verifiable negative evidence, such as U.S. operating losses and significant impairment charges for U.S. goodwill in 2011 and other intangible assets, continued to outweigh positive evidence necessary to reduce the valuation allowance. As a result, we recorded increases of $65 million and $89 million in the valuation allowance related to our U.S. Federal deferred tax assets as a non-cash charge to income tax expense in 2012 and 2011, respectively.

A return to sustainable profitability in the U.S. is required before we would change our judgment regarding the need for a valuation allowance against our deferred tax assets.

Although the recent strengthening in new home construction activity has resulted in profitability in the Company’s U.S. operations during the first half of 2013, we continue to record a full valuation allowance against the U.S. Federal deferred tax assets as the Company is expected to remain in a three-year cumulative loss position throughout 2013.

It is reasonably possible that the continued improvements in our U.S. operations could result in the objective positive evidence necessary to warrant the reversal of all or a portion of the valuation allowance as early as the fourth quarter of 2014. Until such time, the profits from our U.S. operations will be offset by the net operating loss carryforward resulting in a lower U.S. effective tax rate.

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Parenthetical) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Statement Of Income And Comprehensive Income [Abstract]
Income tax on interest rate swaps
Income tax on unrecognized pension prior service cost and net loss

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CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (USD $) In Millions, unless otherwise specified	Total	Common Shares ($1 par value) [Member]	Paid-In Capital [Member]	(Accumulated Deficit) Retained Earnings [Member]	Accumulated Other Comprehensive Income [Member]	Noncontrolling Interest [Member]
Beginning balance at Dec. 31, 2011	$ 742	$ 348	$ 65	$ 38	$ 76	$ 215
Total comprehensive income (loss)	(42)			(42)	(15)	15
Shares issued		2	(2)
Shares retired:
Repurchased	(8)	(1)	(7)
Surrendered (non-cash)	(8)	(1)	(7)
Cash dividends declared	(53)		(27)	(26)
Dividend payment to noncontrolling interest	(40)					(40)
Stock-based compensation	28		28
Ending balance at Jun. 30, 2012	619	348	50	(30)	61	190
Beginning balance at Dec. 31, 2012	534	349	16	(102)	59	212
Total comprehensive income (loss)	127			124	(12)	15
Shares issued		2	(2)
Shares retired:
Repurchased	(35)	(2)	(11)	(22)
Surrendered (non-cash)	(18)		(18)
Cash dividends declared	(54)		(14)	(40)
Dividend payment to noncontrolling interest	(34)					(34)
Stock-based compensation	29		29
Ending balance at Jun. 30, 2013	$ 549	$ 349		$ (40)	$ 47	$ 193

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Goodwill and Other Intangible Assets

6 Months Ended

Jun. 30, 2013

Goodwill And Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

C. The changes in the carrying amount of goodwill for the six months ended June 30, 2013, by segment, were as follows, in millions:

	Gross Goodwill		Accumulated			Net Goodwill
	At		Impairment			At
	June 30, 2013		Losses			June 30, 2013
Cabinets and Related Products	$	240	$	(59	)	$	181
Plumbing Products		541		(340	)		201
Installation and Other Services		1,806		(762	)		1,044
Decorative Architectural Products		294		(75	)		219
Other Specialty Products		983		(734	)		249
Total	$	3,864	$	(1,970	)	$	1,894

	Gross Goodwill		Accumulated			Net Goodwill							Net Goodwill
	At		Impairment			At							At
	Dec. 31, 2012		Losses			Dec. 31, 2012		Other (A)			Additions (B)		June 30, 2013
Cabinets and Related Products	$	240	$	(59	)	$	181	$	—		$	—	$	181
Plumbing Products		544		(340	)		204		(3	)		—		201
Installation and Other Services		1,806		(762	)		1,044		—			—		1,044
Decorative Architectural Products		294		(75	)		219		—			—		219
Other Specialty Products		980		(734	)		246		—			3		249
Total	$	3,864	$	(1,970	)	$	1,894	$	(3	)	$	3	$	1,894

(A) Other principally includes the effect of foreign currency translation.

(B) Additions include the acquisition of a U.K. door business in the first quarter of 2013.

Other indefinite-lived intangible assets were $132 million at both June 30, 2013 and December 31, 2012, and principally included registered trademarks. The carrying value of the Company’s definite-lived intangible assets was $17 million (net of accumulated amortization of $59 million) at June 30, 2013 and $19 million (net of accumulated amortization of $57 million) at December 31, 2012, and principally included customer relationships and non-compete agreements.

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Accounting Policies

6 Months Ended

Jun. 30, 2013

Accounting Policies [Abstract]

Accounting Policies

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 June 30, 2013 and the results of operations for the three months and six months ended June 30, 2013 and 2012 and cash flows for the six months ended June 30, 2013 and 2012. The condensed consolidated balance sheet at December 31, 2012 was derived from audited financial statements.

Certain prior-year amounts have been reclassified to conform to the 2013 presentation in the condensed consolidated financial statements. In the Company’s condensed consolidated balance sheets, assets and liabilities related to the 2013 discontinued operations have been separately presented at June 30, 2013 and December 31, 2012. The results of operations related to the 2013 discontinued operations have been separately stated in the accompanying condensed consolidated statements of operations for the three months and six months ended June 30, 2013 and 2012. In the Company’s condensed consolidated statements of cash flows for the six months ended June 30, 2013 and 2012, cash flows from discontinued operations are not separately classified.

Recently Issued Accounting Pronouncements. On January 1, 2013, the Company adopted new accounting guidance requiring disclosure of amounts reclassified from accumulated other comprehensive income. The adoption of this new guidance did not have an impact on the Company’s financial position or its results of operations.

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Goodwill and Other Intangible Assets - Changes in Carrying Amount of Goodwill (Detail) (USD $) In Millions, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Goodwill [Line Items]
Gross Goodwill	$ 3,864	$ 3,864
Accumulated Impairment Losses	(1,970)	(1,970)
Net Goodwill	1,894	1,894
Other	(3)
Additions	3
Net Goodwill	1,894	1,894
Cabinets and Related Products [Member]
Goodwill [Line Items]
Gross Goodwill	240	240
Accumulated Impairment Losses	(59)	(59)
Net Goodwill	181	181
Other
Additions
Net Goodwill	181	181
Plumbing Products [Member]
Goodwill [Line Items]
Gross Goodwill	541	544
Accumulated Impairment Losses	(340)	(340)
Net Goodwill	201	204
Other	(3)
Additions
Net Goodwill	201	204
Installation and Other Services [Member]
Goodwill [Line Items]
Gross Goodwill	1,806	1,806
Accumulated Impairment Losses	(762)	(762)
Net Goodwill	1,044	1,044
Other
Additions
Net Goodwill	1,044	1,044
Decorative Architectural Products [Member]
Goodwill [Line Items]
Gross Goodwill	294	294
Accumulated Impairment Losses	(75)	(75)
Net Goodwill	219	219
Other
Additions
Net Goodwill	219	219
Other Specialty Products [Member]
Goodwill [Line Items]
Gross Goodwill	983	980
Accumulated Impairment Losses	(734)	(734)
Net Goodwill	249	246
Other
Additions	3
Net Goodwill	$ 249	$ 246

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Goodwill and Other Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2013

Goodwill And Intangible Assets Disclosure [Abstract]

Changes in Carrying Amount of Goodwill

The changes in the carrying amount of goodwill for the six months ended June 30, 2013, by segment, were as follows, in millions:

	Gross Goodwill		Accumulated			Net Goodwill
	At		Impairment			At
	June 30, 2013		Losses			June 30, 2013
Cabinets and Related Products	$	240	$	(59	)	$	181
Plumbing Products		541		(340	)		201
Installation and Other Services		1,806		(762	)		1,044
Decorative Architectural Products		294		(75	)		219
Other Specialty Products		983		(734	)		249
Total	$	3,864	$	(1,970	)	$	1,894

	Gross Goodwill		Accumulated			Net Goodwill							Net Goodwill
	At		Impairment			At							At
	Dec. 31, 2012		Losses			Dec. 31, 2012		Other (A)			Additions (B)		June 30, 2013
Cabinets and Related Products	$	240	$	(59	)	$	181	$	—		$	—	$	181
Plumbing Products		544		(340	)		204		(3	)		—		201
Installation and Other Services		1,806		(762	)		1,044		—			—		1,044
Decorative Architectural Products		294		(75	)		219		—			—		219
Other Specialty Products		980		(734	)		246		—			3		249
Total	$	3,864	$	(1,970	)	$	1,894	$	(3	)	$	3	$	1,894

(A) Other principally includes the effect of foreign currency translation.

(B) Additions include the acquisition of a U.K. door business in the first quarter of 2013.

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Stock-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2013

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Pre-Tax Compensation Expense and Related Income Tax Benefit for Stock-Based Incentives

 Pre-tax compensation expense and the related income tax benefit for these stock-based incentives were as follows, in millions:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2013		2012		2013		2012
Long-term stock awards	$	11	$	11	$	20	$	19
Stock options		5		4		10		9
Phantom stock awards and stock appreciation rights		—		1		3		6
Total	$	16	$	16	$	33	$	34
Income tax benefit (37 percent tax rate – before valuation allowance)	$	6	$	6	$	12	$	13

Company's Long-Term Stock Award Activity

The Company’s long-term stock award activity was as follows, shares in millions:

	Six Months Ended
	June 30,
	2013		2012
Unvested stock award shares at January 1		8		10
Weighted average grant date fair value	$	16	$	17
Stock award shares granted		2		1
Weighted average grant date fair value	$	20	$	12
Stock award shares vested		2		2
Weighted average grant date fair value	$	16	$	17
Stock award shares forfeited		—		—
Weighted average grant date fair value	$	18	$	18
Unvested stock award shares at June 30		8		9
Weighted average grant date fair value	$	17	$	16

Company's Stock Option Activity

The Company’s stock option activity was as follows, shares in millions:

	Six Months Ended
	June 30,
	2013		2012
Option shares outstanding, January 1		30		36
Weighted average exercise price	$	21	$	21
Option shares granted, including restoration options		1		1
Weighted average exercise price	$	20	$	12
Option shares exercised		2		—
Aggregate intrinsic value on date of exercise (A)	$	21 million	$	1 million
Weighted average exercise price	$	11	$	9
Option shares forfeited		1		3
Weighted average exercise price	$	23	$	19
Option shares outstanding, June 30		28		34
Weighted average exercise price	$	22	$	21
Weighted average remaining option term (in years)		4		5
Option shares vested and expected to vest, June 30		28		34
Weighted average exercise price	$	22	$	21
Aggregate intrinsic value (A)	$	69 million	$	29 million
Weighted average remaining option term (in years)		4		5
Option shares exercisable (vested), June 30		23		26
Weighted average exercise price	$	24	$	24
Aggregate intrinsic value (A)	$	37 million	$	15 million
Weighted average remaining option term (in years)		3		4

(A) Aggregate intrinsic value is calculated using the Company’s stock price at each respective date, less the exercise price (grant date price) multiplied by the number of shares.

Weighted Average Grant Date Fair Value of Option Shares Granted and Assumptions Used to Estimate Those Values Using Black-Scholes Option Pricing Model

The weighted average grant date fair value of option shares granted and the assumptions used to estimate those values using a Black-Scholes option pricing model were as follows:

	Six Months Ended
	June 30,
	2013			2012
Weighted average grant date fair value	$	8.33		$	4.44
Risk-free interest rate		1.20	%		1.10	%
Dividend yield		1.47	%		2.57	%
Volatility factor		49.00	%		51.00	%
Expected option life		6 years			6 years

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Earnings Per Common Share (Tables)

6 Months Ended

Jun. 30, 2013

Earnings Per Share [Abstract]

Numerators and Denominators Used in Computations of Basic and Diluted Earnings Per Common Share

Reconciliations of the numerators and denominators used in the computations of basic and diluted earnings per common share were as follows, in millions:

	Three Months Ended June 30,						Six Months Ended June 30,
	2013			2012			2013			2012
Numerator (basic and diluted):
Income (loss) from continuing operations	$	82		$	(51	)	$	138		$	(9	)
Allocation to unvested restricted stock awards		(2	)		(1	)		(3	)		(1	)
Income (loss) from continuing operations attributable to common shareholders		80			(52	)		135			(10	)
Loss from discontinued Operations, net		(5	)		(24	)		(14	)		(33	)
Net income (loss) available to common shareholders	$	75		$	(76	)	$	121		$	(43	)
Denominator:
Basic common shares (based upon weighted average)		349			349			349			349
Add:
Contingent common shares		—			—			—			—
Stock option dilution		3			—			3			—
Diluted common shares		352			349			352			349

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Income Taxes - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended			6 Months Ended		12 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Dec. 31, 2010	Jun. 30, 2013 M	Jun. 30, 2012	Dec. 31, 2012	Dec. 31, 2011
Income Tax Disclosure [Abstract]
Effective tax rate	30.00%			25.00%	79.00%
State income tax benefit				$ 11	$ 21
Income tax expense	39	31		53	38
Pre-tax loss on continuing operations	(131)	12		(210)	(48)
Reduction in the liability for unrecognized tax benefits	3			3
Time limits for tax audit closings, settlements and expiration of applicable statutes of limitations in various jurisdictions				12
Deferred tax assets expected to be realized				More than 50 percent
Increase in tax expense from repatriation of foreign earnings			372
Increase in tax expense from repatriation of foreign earnings						$ 65	$ 89

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Stock-Based Compensation - Pre-Tax Compensation Expense and Related Income Tax Benefit for Stock-Based Incentives (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Long-term stock awards	$ 11	$ 11	$ 20	$ 19
Stock options	5	4	10	9
Phantom stock awards and stock appreciation rights		1	3	6
Total	16	16	33	34
Income tax benefit (37 percent tax rate - before valuation allowance)	$ 6	$ 6	$ 12	$ 13

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Derivative Instruments and Hedging Activities - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended	6 Months Ended
	Mar. 31, 2012	Jun. 30, 2013
Derivative Instruments And Hedging Activities Disclosure [Abstract]
Issued notes	$ 400
Forecasted debt issuance variable rate period	3-month LIBOR
Ineffective portion of the cash flow hedges	2
Loss from the termination of the interest rate swap agreement	23
Balance remaining in Accumulated Other Comprehensive Income		$ 20

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Fair Value of Financial Investments and Liabilities - Company's Investments in Available-for-Sale Securities (Detail) (USD $) In Millions, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Fair Value Disclosures [Abstract]
Cost Basis	$ 19	$ 19
Pre-tax Unrealized Gains	3	3
Pre-tax Unrealized Losses
Recorded Basis	$ 22	$ 22

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CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Jun. 30, 2013	Dec. 31, 2012
Statement Of Financial Position [Abstract]
Common shares, par value	$ 1	$ 1
Common shares, shares Authorized	1,400,000,000	1,400,000,000
Common shares, shares issued	349,200,000	349,000,000
Common shares, shares outstanding	349,200,000	349,000,000
Preferred shares, shares authorized	1,000,000	1,000,000
Preferred shares, shares issued	0	0
Preferred shares, shares outstanding	0	0

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Derivative Instruments and Hedging Activities

6 Months Ended

Jun. 30, 2013

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities

F. The Company is exposed to global market risk as part of its normal daily business activities. To manage these risks, the Company enters into various derivative contracts. These contracts include interest rate swap agreements, foreign currency exchange contracts and contracts intended to hedge the Company’s exposure to copper and zinc. The Company reviews its hedging program, derivative positions and overall risk management on a regular basis.

Interest Rate Swap Agreements. In March 2012, in connection with the issuance of $400 million of debt, the Company terminated the interest rate swap hedge relationships that it entered into in August 2011. These interest rate swaps were designated as cash flow hedges and effectively fixed interest rates on the forecasted debt issuance to variable rates based on 3-month LIBOR. Upon termination, the ineffective portion of the cash flow hedges of approximately $2 million loss was recognized in the Company’s consolidated statement of income in other, net. The remaining loss of approximately $23 million from the termination of these swaps is being amortized as an increase to interest expense over the remaining term of the debt, through March 2022. At June 30, 2013, the balance remaining in Accumulated Other Comprehensive Income was $20 million.

Foreign Currency Contracts. The Company’s net cash inflows and outflows exposed to the risk of changes in foreign currency exchange rates arise from the sale of products in countries other than the manufacturing source, foreign currency denominated supplier payments, debt and other payables, and investments in subsidiaries. To mitigate this risk during 2013 and 2012, the Company, including certain European operations, entered into foreign currency forward contracts and foreign currency exchange contracts.

Gains (losses) related to foreign currency forward and exchange contracts are recorded in the Company’s condensed consolidated statements of operations in other income (expense), net. In the event that the counterparties fail to meet the terms of the foreign currency forward contracts, the Company’s exposure is limited to the aggregate foreign currency rate differential with such institutions.

Metal Contracts. During 2013 and 2012, the Company entered into several contracts to manage its exposure to increases in the price of copper and zinc. (Losses) gains related to these contracts are recorded in the Company’s condensed consolidated statements of operations in cost of sales.

The pre-tax (loss) gain included in the Company’s consolidated statements of operations is as follows, in millions:

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2013			2012			2013			2012
Foreign Currency Contracts
Exchange Contracts	$	—		$	9		$	7		$	4
Forward Contracts		—			—			2			(1	)
Metal Contracts		(5	)		(6	)		(9	)		1
Total (loss) gain	$	(5	)	$	3		$	—		$	4

The Company presents its derivatives, net by counterparty due to the right of offset under master netting arrangements in current assets or current liabilities in the condensed consolidated balance sheet. The notional amounts being hedged and the fair value of those derivative instruments, on a gross basis, are as follows, in millions:

	At June 30, 2013
	Notional
	Amount		Assets		Liabilities
Foreign Currency Contracts
Exchange Contracts	$	103
Current assets			$	3	$	—
Forward Contracts		63
Current assets				1		—
Metal Contracts		46
Current liabilities				—		8
Total			$	4	$	8

	At December 31, 2012
	Notional
	Amount		Assets		Liabilities
Foreign Currency Contracts
Exchange Contracts	$	172
Current liabilities			$	—	$	5
Forward Contracts		76
Current assets				1		1
Metal Contracts		35
Current liabilities				1		2
Total			$	2	$	8

The fair value of all metal and foreign currency derivative contracts is estimated on a recurring basis using Level 2 inputs (significant other observable inputs).

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Statement Of Income And Comprehensive Income [Abstract]
Net income (loss)	$ 87	$ (67)	$ 143	$ (23)
Less: Net income attributable to noncontrolling interest	10	8	19	19
Net income (loss) attributable to Masco Corporation	77	(75)	124	(42)
Other comprehensive income (loss), net of tax (see Note K):
Cumulative translation adjustment	10	(57)	(26)	(27)
Interest rate swaps, net of income tax of $- and $-, respectively	1		1
Unrecognized pension prior service cost and net loss, net of income tax of $- and $-, respectively	4	4	9	8
Other comprehensive income (loss)	15	(53)	(16)	(19)
Less: Other comprehensive income (loss) attributable to noncontrolling interest	4	(11)	(4)	(4)
Other comprehensive income (loss) attributable to Masco Corporation	11	(42)	(12)	(15)
Total comprehensive income (loss)	102	(120)	127	(42)
Less: Total comprehensive income (loss) attributable to the noncontrolling interest	14	(3)	15	15
Total comprehensive income (loss) attributable to Masco Corporation	$ 88	$ (117)	$ 112	$ (57)

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Stock-Based Compensation - Company's Long-Term Stock Award Activity (Detail) (USD $) In Millions, except Per Share data, unless otherwise specified	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Unvested stock award shares, Beginning balance	8	10
Weighted average grant date fair value	$ 16	$ 17
Stock award shares granted	2	1
Weighted average grant date fair value	$ 20	$ 12
Stock award shares vested	2	2
Weighted average grant date fair value	$ 16	$ 17
Stock award shares forfeited
Weighted average grant date fair value	$ 18	$ 18
Unvested stock award shares, Ending balance	8	9
Weighted average grant date fair value	$ 17	$ 16

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CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) In Millions, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Current assets:
Cash and cash investments	$ 1,223	$ 1,351
Receivables	1,255	933
Prepaid expenses and other	109	107
Assets held for sale	101	100
Inventories:
Finished goods	435	368
Raw material	261	266
Work in process	95	92
Inventories	791	726
Total current assets	3,479	3,217
Property and equipment, net	1,276	1,326
Goodwill	1,894	1,894
Other intangible assets, net	149	151
Other assets	173	184
Assets held for sale	91	103
Total assets	7,062	6,875
Current liabilities:
Notes payable	207	206
Accounts payable	998	788
Accrued liabilities	789	823
Liabilities held for sale	48	45
Total current liabilities	2,042	1,862
Long-term debt	3,421	3,422
Deferred income taxes and other	1,050	1,053
Liabilities held for sale		4
Total liabilities	6,513	6,341
Commitments and contingencies
Masco Corporation's shareholders' equity:
Common shares, par value $1 per share Authorized shares: 1,400,000,000; issued and outstanding: 2013 - 349,200,000; 2012 - 349,000,000	349	349
Preferred shares authorized: 1,000,000; issued and outstanding: 2013 - None; 2012 - None
Paid-in capital		16
Accumulated deficit	(40)	(102)
Accumulated other comprehensive income	47	59
Total Masco Corporation's shareholders' equity	356	322
Noncontrolling interest	193	212
Total equity	549	534
Total liabilities and equity	$ 7,062	$ 6,875

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Derivative Instruments and Hedging Activities - Pre-Tax (Loss) Gain (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Derivative [Line Items]
Total (loss) gain	$ (5)	$ 3		$ 4
Exchange Contracts [Member]
Derivative [Line Items]
Total (loss) gain		9	7	4
Forward Contracts [Member]
Derivative [Line Items]
Total (loss) gain			2	(1)
Metals Contracts [Member]
Derivative [Line Items]
Total (loss) gain	$ (5)	$ (6)	$ (9)	$ 1

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Fair Value of Financial Investments and Liabilities (Tables)

6 Months Ended

Jun. 30, 2013

Fair Value Disclosures [Abstract]

Financial Investments Included in Other Assets

E. 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:

	June 30, 2013		December 31, 2012
Auction rate securities	$	22	$	22
Total recurring investments		22		22
Private equity funds		65		69
Other investments		4		4
Total non-recurring investments		69		73
Total	$	91	$	95

Company's Investments in Available-for-Sale Securities

The Company’s investments in available-for-sale securities at June 30, 2013 and December 31, 2012 were as follows, in millions:

			Pre-tax
			Unrealized		Unrealized		Recorded
	Cost Basis		Gains		Losses		Basis
June 30, 2013	$	19	$	3	$	—	$	22
December 31, 2012	$	19	$	3	$	—	$	22

Recurring Fair Value Measurements

Financial investments 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
	June 30, 2013		Quoted Market Prices (Level  1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Auction rate securities	$	22		—		—	$	22
Total	$	22	$	—	$	—	$	22

			Fair Value Measurements Using
	Dec. 31, 2012		Quoted Market Prices (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Auction rate securities	$	22	$	—	$	—	$	22
Total	$	22	$	—	$	—	$	22

Changes in Level 3 Financial Assets Measured at Fair Value on Recurring Basis

The following table summarizes the changes in Level 3 financial assets measured at fair value on a recurring basis for the six months ended June 30, 2013 and the year ended December 31, 2012, in millions:

	June 30, 2013 Auction Rate Securities		December 31, 2012 Auction Rate Securities
Fair value at beginning of period	$	22	$	22
Total losses included in earnings		—		—
Unrealized (losses)		—		—
Purchases		—		—
Settlements		—		—
Transfer from Level 3 to Level 2		—		—
Fair value at period end	$	22	$	22

Income from Financial Investments Net, Included in Other, Net, Within Other Income (Expense), Net

Income (loss) from financial investments, net, included in other, net, within other income (expense), net, was as follows, in millions:

	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2013		2012			2013		2012
Realized gains from private equity funds	$	4	$	2		$	7	$	18
Income from other investments, net		1		—			1		—
Total income from financial investments	$	5	$	2		$	8	$	18
Impairment charges – private equity funds	$	—	$	(2	)	$	—	$	(2	)

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Earnings Per Common Share

6 Months Ended

Jun. 30, 2013

Earnings Per Share [Abstract]

Earnings Per Common Share

O. Reconciliations of the numerators and denominators used in the computations of basic and diluted earnings per common share were as follows, in millions:

	Three Months Ended June 30,						Six Months Ended June 30,
	2013			2012			2013			2012
Numerator (basic and diluted):
Income (loss) from continuing operations	$	82		$	(51	)	$	138		$	(9	)
Allocation to unvested restricted stock awards		(2	)		(1	)		(3	)		(1	)
Income (loss) from continuing operations attributable to common shareholders		80			(52	)		135			(10	)
Loss from discontinued Operations, net		(5	)		(24	)		(14	)		(33	)
Net income (loss) available to common shareholders	$	75		$	(76	)	$	121		$	(43	)
Denominator:
Basic common shares (based upon weighted average)		349			349			349			349
Add:
Contingent common shares		—			—			—			—
Stock option dilution		3			—			3			—
Diluted common shares		352			349			352			349

For the three months and six months ended June 30, 2013 and 2012, the Company allocated dividends and undistributed earnings (only in 2013) to the unvested restricted stock awards (participating securities).

Additionally, 14 million common shares for both the three months and six months ended June 30, 2013 and 34 million common shares for both the three months and six months ended June 30, 2012 related to stock options were excluded from the computation of diluted earnings per common share due to their antidilutive effect.

In the first six months of 2013, the Company granted 1.6 million shares of long-term stock awards; to offset the dilutive impact of these awards and awards granted in late 2012, the Company also repurchased and retired 1.7 million shares of Company common stock, for cash aggregating approximately $35 million. At June 30, 2013, the Company had 22.6 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 $.15 ($.15), respectively for the three months and six months ended June 30, 2013 and June 30, 2012.

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Fair Value of Financial Investments and Liabilities - Financial Investments Included in Other Assets (Detail) (USD $) In Millions, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, fair value disclosure	$ 91	$ 95
Recurring Investments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, fair value disclosure	22	22
Recurring Investments [Member] | Auction Rate Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, fair value disclosure	22	22
Non-Recurring Investments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, fair value disclosure	69	73
Non-Recurring Investments [Member] | Private Equity Funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, fair value disclosure	65	69
Non-Recurring Investments [Member] | Other Investments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, fair value disclosure	$ 4	$ 4

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Debt - Additional Information (Detail) (USD $)	6 Months Ended
	Jun. 30, 2013	Mar. 31, 2013	Jun. 21, 2010
Proforma Debt Instrument [Line Items]
Aggregate amount add back to future non-cash charges		$ 1,250,000,000	$ 1,250,000,000
Credit agreement, maturity date	Mar. 28, 2018
Non-cash charges, including goodwill and other intangible asset impairment charges	250,000,000
Debt to total adjusted capitalization ratio	65.00%
Additional borrowing capacity	910,000,000
Absorption of reduction to shareholders' equity to remain in compliance with covenant	490,000,000
Federal Funds Effective Rate [Member]
Proforma Debt Instrument [Line Items]
Either rate per annum equal to lower of prime rate Federal Funds effective LIBOR plus one percent plus applicable margin	0.50%
Libor Rate [Member]
Proforma Debt Instrument [Line Items]
Either rate per annum equal to lower of prime rate Federal Funds effective LIBOR plus one percent plus applicable margin	1.00%
Euros Denominated Revolver [Member]
Proforma Debt Instrument [Line Items]
Borrowing capacity, maximum	500,000,000
Swingline Loans [Member]
Proforma Debt Instrument [Line Items]
Borrowing capacity, maximum	150,000,000
Letters of Credit [Member]
Proforma Debt Instrument [Line Items]
Borrowing capacity, maximum	250,000,000
Outstanding and unused Letters of Credit	$ 95,000,000
Maximum [Member]
Proforma Debt Instrument [Line Items]
Minimum interest coverage ratio	2.5
Minimum [Member]
Proforma Debt Instrument [Line Items]
Minimum interest coverage ratio	1.0

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Severance and Early Retirement Programs - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
Asset Retirement Obligation Disclosure [Abstract]
Charges related to severance and early retirement programs	$ 12	$ 5

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Discontinued Operations - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Mar. 31, 2013	Jun. 30, 2013
Discontinued Operations And Disposal Groups [Abstract]
Impairment of assets	$ 0	$ 10	$ 10

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Segment Information (Tables)

6 Months Ended

Jun. 30, 2013

Segment Reporting [Abstract]

Company by Segment and Geographic Area

Information about the Company by segment and geographic area was as follows, in millions:

	Three Months Ended June 30,										Six Months Ended June 30,
	2013		2012		2013			2012			2013		2012		2013			2012
	Net Sales (A)				Operating Profit (Loss)						Net Sales (A)				Operating Profit (Loss)
The Company’s operations by segment were:
Cabinets and Related Products	$	265	$	253	$	2		$	(5	)	$	501	$	481	$	(2	)	$	(21	)
Plumbing Products		802		738		102			70			1,564		1,480		188			167
Installation and Other Services		357		296		8			(9	)		669		574		4			(23	)
Decorative Architectural Products		565		517		104			95			997		951		193			168
Other Specialty Products		160		141		11			6			294		265		10			1
Total	$	2,149	$	1,945	$	227		$	157		$	4,025	$	3,751	$	393		$	292
The Company’s operations by geographic area were:
North America	$	1,765	$	1,587	$	185		$	125		$	3,275	$	3,018	$	325		$	213
International, principally Europe		384		358		42			32			750		733		68			79
Total	$	2,149	$	1,945		227			157		$	4,025	$	3,751		393			292
General corporate expense, net						(39	)		(33	)						(73	)		(61	)
Gain from sale of fixed assets (B)						—			5							—			5
Charge for litigation settlements, net (B)						—			(75	)						—			(73	)
Operating profit						188			54							320			163
Other income (expense), net						(57	)		(66	)						(110	)		(115	)
Income (loss) before income taxes					$	131		$	(12	)					$	210		$	48

(A) Inter-segment sales were not material.

(B) In 2012, gain on sale of fixed assets relates to a business unit in the Other Specialty Products segment. For the three months and six months ended June 30, 2012, the charge for litigation settlements, net, includes $75 million related to a business unit in the Installation and Other Services segment.

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Other Income (Expense), Net (Tables)

6 Months Ended

Jun. 30, 2013

Other Income And Expenses [Abstract]

Other, Net, Included in Other Income (Expense), Net

Other, net, which is included in other income (expense), net, was as follows, in millions:

	Three Months Ended June 30,						Six Months Ended June 30,
	2013			2012			2013		2012
Income from cash and cash investments	$	1		$	2		$	2	$	4
Income from financial investments (Note E)		5			2			8		18
Impairment of financial investments (Note E)		—			(2	)		—		(2	)
Other items, net		(3	)		—			—		(3	)
Total other net	$	3		$	2		$	10	$	17

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Fair Value of Financial Investments and Liabilities

6 Months Ended

Jun. 30, 2013

Fair Value Disclosures [Abstract]

Fair Value of Financial Investments and Liabilities

E. 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:

	June 30, 2013		December 31, 2012
Auction rate securities	$	22	$	22
Total recurring investments		22		22
Private equity funds		65		69
Other investments		4		4
Total non-recurring investments		69		73
Total	$	91	$	95

The Company’s investments in available-for-sale securities at June 30, 2013 and December 31, 2012 were as follows, in millions:

			Pre-tax
			Unrealized		Unrealized		Recorded
	Cost Basis		Gains		Losses		Basis
June 30, 2013	$	19	$	3	$	—	$	22
December 31, 2012	$	19	$	3	$	—	$	22

Recurring Fair Value Measurements. Financial investments 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
	June 30, 2013		Quoted Market Prices (Level  1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Auction rate securities	$	22		—		—	$	22
Total	$	22	$	—	$	—	$	22

			Fair Value Measurements Using
	Dec. 31, 2012		Quoted Market Prices (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Auction rate securities	$	22	$	—	$	—	$	22
Total	$	22	$	—	$	—	$	22

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 table summarizes the changes in Level 3 financial assets measured at fair value on a recurring basis for the six months ended June 30, 2013 and the year ended December 31, 2012, in millions:

	June 30, 2013 Auction Rate Securities		December 31, 2012 Auction Rate Securities
Fair value at beginning of period	$	22	$	22
Total losses included in earnings		—		—
Unrealized (losses)		—		—
Purchases		—		—
Settlements		—		—
Transfer from Level 3 to Level 2		—		—
Fair value at period end	$	22	$	22

Non-Recurring Fair Value Measurements. During the three months and six months ended June 30, 2013, the Company did not measure any financial investments at fair value on a non-recurring basis, as there was no other-than-temporary decline in the estimated value of private equity funds.

During the three months and six months ended June 30, 2012, the Company measured $4 million of private equity investments using level 3 inputs due to an other-than-temporary decline in the estimated value, resulting in a $2 million impairment.

The Company did not have any transfers between Level 1 and Level 2 financial assets in the three months or six months ended June 30, 2013 or 2012.

Realized Gains (Losses). Income (loss) from financial investments, net, included in other, net, within other income (expense), net, was as follows, in millions:

	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2013		2012			2013		2012
Realized gains from private equity funds	$	4	$	2		$	7	$	18
Income from other investments, net		1		—			1		—
Total income from financial investments	$	5	$	2		$	8	$	18
Impairment charges – private equity funds	$	—	$	(2	)	$	—	$	(2	)

The fair value of the Company’s short-term and long-term fixed-rate debt instruments is based principally upon modeled 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 June 30, 2013 was approximately $3.9 billion, compared with the aggregate carrying value of $3.6 billion. The aggregate estimated market value of short-term and long-term debt at December 31, 2012 was approximately $4.0 billion, compared with the aggregate carrying value of $3.6 billion.

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Accumulated Other Comprehensive Income (loss) - Reclassifications from Accumulated Other Comprehensive Income (Loss) to Income Statement (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Amortization of defined benefit pension:
Accumulated other comprehensive income, defined benefit pension, Tax Expense	$ (39)	$ (31)	$ (53)	$ (38)
Accumulated other comprehensive income, defined benefit pension net of tax	75	(76)	121	(43)
Amount Reclassified [Member] | Accumulated Defined Benefit Plans Adjustment [Member]
Amortization of defined benefit pension:
Accumulated other comprehensive income, defined benefit pension net of tax	4	4	9	8
Selling, General & Administrative Expense [Member] | Amount Reclassified [Member] | Accumulated Defined Benefit Plans Adjustment [Member]
Amortization of defined benefit pension:
Accumulated other comprehensive income, defined benefit pension, Selling, General and Administrative Expense	4	4	9	8
Tax expense [Member] | Amount Reclassified [Member] | Accumulated Defined Benefit Plans Adjustment [Member]
Amortization of defined benefit pension:
Accumulated other comprehensive income, defined benefit pension, Tax Expense
Interest expense [Member] | Amount Reclassified [Member] | Accumulated Defined Benefit Plans Adjustment [Member]
Amortization of defined benefit pension:
Interest rate swaps	$ 1		$ 1

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Derivative Instruments and Hedging Activities (Tables)

6 Months Ended

Jun. 30, 2013

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Pre-Tax (Loss) Gain

The pre-tax (loss) gain included in the Company’s consolidated statements of operations is as follows, in millions:

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2013			2012			2013			2012
Foreign Currency Contracts
Exchange Contracts	$	—		$	9		$	7		$	4
Forward Contracts		—			—			2			(1	)
Metal Contracts		(5	)		(6	)		(9	)		1
Total (loss) gain	$	(5	)	$	3		$	—		$	4

Fair Value of Derivative Instruments Presented on Gross Basis

The notional amounts being hedged and the fair value of those derivative instruments, on a gross basis, are as follows, in millions:

	At June 30, 2013
	Notional
	Amount		Assets		Liabilities
Foreign Currency Contracts
Exchange Contracts	$	103
Current assets			$	3	$	—
Forward Contracts		63
Current assets				1		—
Metal Contracts		46
Current liabilities				—		8
Total			$	4	$	8

	At December 31, 2012
	Notional
	Amount		Assets		Liabilities
Foreign Currency Contracts
Exchange Contracts	$	172
Current liabilities			$	—	$	5
Forward Contracts		76
Current assets				1		1
Metal Contracts		35
Current liabilities				1		2
Total			$	2	$	8

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Goodwill and Other Intangible Assets - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Goodwill And Intangible Assets Disclosure [Abstract]
Other indefinite-lived intangible assets	$ 132	$ 132
Carrying value of definite-lived intangible assets	17	19
Accumulated amortization	$ 59	$ 57

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Debt

6 Months Ended

Jun. 30, 2013

Debt Disclosure [Abstract]

Debt

H. On March 28, 2013, the Company entered into a credit agreement (the “New Credit Agreement”) with a bank group, with an aggregate commitment of $1.25 billion and a maturity date of March 28, 2018. Upon entry into the New Credit Agreement, the Company’s credit agreement dated as of June 21, 2010, as amended, with an aggregate commitment of $1.25 billion, was terminated.

The New Credit Agreement provides for an unsecured revolving credit facility available to the Company and one of its foreign subsidiaries, in U.S. dollars, European euros and certain other currencies. Borrowings under the revolver denominated in euros are limited to $500 million, equivalent. The Company can also borrow swingline loans up to $150 million and obtain letters of credit of up to $250 million; any outstanding Letters of Credit reduce the Company’s borrowing capacity. At June 30, 2013, the Company had $95 million of outstanding and unused Letters of Credit, reducing the Company’s borrowing capacity by such amount.

Revolving credit loans bear interest under the New Credit Agreement, at the Company’s option, at (A) a rate per annum equal to the greater of (i) the prime rate, (ii) the Federal Funds effective rate plus 0.50% and (iii) LIBOR plus 1.0% (the “Alternative Base Rate”); plus an applicable margin based upon the then applicable corporate credit ratings of the Company; or (B) LIBOR plus an applicable margin based upon the then applicable corporate credit ratings of the Company. The foreign currency revolving credit loans bear interest at a rate equal to LIBOR plus an applicable margin based upon the then applicable corporate credit ratings of the Company.

The New Credit Agreement contains financial covenants requiring the Company to maintain (A) a maximum debt to total capitalization ratio, as adjusted for certain items, of 65 percent, and (B) a minimum interest coverage ratio, as adjusted for certain items, equal to or greater than 2.5 to 1.0. The debt to total capitalization ratio allows the add-back, if incurred, of up to the first $250 million of certain non-cash charges, including goodwill and other intangible asset impairment charges, occurring from and after January 1, 2012 that would negatively impact shareholders’ equity.

Based on the limitations of the debt to total capitalization ratio covenant in the New Credit Agreement, at June 30, 2013, the Company had additional borrowing capacity, subject to availability, of up to $910 million. Additionally, at June 30, 2013, the Company could absorb a reduction to shareholders’ equity of approximately $490 million and remain in compliance with the debt to total capitalization covenant.

In order for the Company to borrow under the New Credit Agreement, there must not be any default in the Company’s covenants in the New 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 Company’s representations and warranties in the New 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, 2012, 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 June 30, 2013.

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Depreciation and Amortization Expense

6 Months Ended

Jun. 30, 2013

Property Plant And Equipment [Abstract]

Depreciation and Amortization Expense

D. Depreciation and amortization expense, including discontinued operations, was $94 million and $104 million, including accelerated depreciation (relating to business rationalization initiatives) of $9 million for each of the six months ended June 30, 2013 and 2012.

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Millions, unless otherwise specified	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
CASH FLOWS FROM (FOR) OPERATING ACTIVITIES:
Cash provided by operations	$ 299	$ 109
Increase in receivables	(348)	(303)
Increase in inventories	(69)	(81)
Increase in accounts payable and accrued liabilities, net	177	271
Net cash from (for) operating activities	59	(4)
CASH FLOWS FROM (FOR) FINANCING ACTIVITIES:
Cash dividends paid	(54)	(53)
Dividend payment to noncontrolling interest	(34)	(40)
Purchase of Company common stock	(35)	(8)
New Credit Agreement costs	(4)
Issuance of Notes, net of issuance costs		396
Retirement of Notes		(46)
Payment for settlement of swaps		(25)
Payment of debt, net		(1)
Net cash (for) from financing activities	(127)	223
CASH FLOWS FROM (FOR) INVESTING ACTIVITIES:
Capital expenditures	(59)	(52)
Acquisition of companies, net of cash acquired	(5)
Proceeds from disposition of:
Other financial investments	11	30
Property and equipment	7	24
Purchases of other financial investments		(2)
Other, net	(5)	(15)
Net cash (for) investing activities	(51)	(15)
Effect of exchange rate changes on cash and cash investments	(9)	(7)
CASH AND CASH INVESTMENTS:
(Decrease) increase for the period	(128)	197
At January 1	1,351	1,656
At June 30	$ 1,223	$ 1,853

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Derivative Instruments and Hedging Activities - Fair Value of Derivative Instruments Presented on Gross Basis (Detail) (USD $) In Millions, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Fair Values Of Financial Assets And Liabilities Including Derivative Financial Instruments [Line Items]
Current liabilities	$ 8	$ 8
Current assets	4	2
Notional Amount
Exchange Contracts [Member]
Fair Values Of Financial Assets And Liabilities Including Derivative Financial Instruments [Line Items]
Current liabilities
Assets, Contracts
Current assets	3
Notional Amount	103	172
Exchange Contracts [Member] | Current assets [Member]
Fair Values Of Financial Assets And Liabilities Including Derivative Financial Instruments [Line Items]
Current liabilities	0
Notional Amount
Exchange Contracts [Member] | Current liabilities [Member]
Fair Values Of Financial Assets And Liabilities Including Derivative Financial Instruments [Line Items]
Current liabilities		5
Forward Contracts [Member]
Fair Values Of Financial Assets And Liabilities Including Derivative Financial Instruments [Line Items]
Current liabilities
Assets, Contracts
Current assets	1	1
Notional Amount	63	76
Forward Contracts [Member] | Current assets [Member]
Fair Values Of Financial Assets And Liabilities Including Derivative Financial Instruments [Line Items]
Current liabilities	0	1
Notional Amount
Metals Contracts [Member]
Fair Values Of Financial Assets And Liabilities Including Derivative Financial Instruments [Line Items]
Current liabilities
Assets, Contracts
Current liabilities		1
Notional Amount	46	35
Metals Contracts [Member] | Current liabilities [Member]
Fair Values Of Financial Assets And Liabilities Including Derivative Financial Instruments [Line Items]
Current liabilities	8	2
Notional Amount

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Fair Value of Financial Investments and Liabilities - Changes in Level 3 Financial Assets Measured at Fair Value on Recurring Basis (Detail) (Auction Rate Securities [Member], USD $) In Millions, unless otherwise specified	6 Months Ended	12 Months Ended
	Jun. 30, 2013	Dec. 31, 2012
Auction Rate Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair value at beginning of period	$ 22	$ 22
Total losses included in earnings
Unrealized (losses)
Purchases
Settlements
Transfer from Level 3 to Level 2
Fair value at period end	$ 22	$ 22

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Employee Retirement Plans (Tables)

6 Months Ended

Jun. 30, 2013

Compensation And Retirement Disclosure [Abstract]

Net Periodic Pension Cost for Defined-Benefit Pension Plans

Net periodic pension cost for the Company’s defined-benefit pension plans was as follows, in millions:

	Three Months Ended June 30,
	2013					2012
	Qualified			Non-Qualified		Qualified			Non-Qualified
Service cost	$	1		$	—	$	1		$	—
Interest cost		10			2		10			2
Expected return on plan assets		(9	)		—		(9	)		—
Amortization of net loss		4			—		4			—
Net periodic pension cost	$	6		$	2		6			2

	Six Months Ended June 30,
	2013					2012
	Qualified			Non-Qualified		Qualified			Non-Qualified
Service cost	$	2		$	—	$	3		$	—
Interest cost		20			3		20			3
Expected return on plan assets		(18	)		—		(17	)		—
Amortization of net loss		8			1		7			1
Net periodic pension cost	$	12		$	4	$	13		$	4

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Other Income (Expense), Net - Other, Net, Included in Other Income (Expense), Net (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Other Income And Expenses [Abstract]
Income from cash and cash investments	$ 1	$ 2	$ 2	$ 4
Income from financial investments (Note E)	5	2	8	18
Impairment of financial investments (Note E)		(2)		(2)
Other items, net	(3)			(3)
Total other net	$ 3	$ 2	$ 10	$ 17

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Stock-Based Compensation - Company's Stock Option Activity (Detail) (USD $) In Millions, except Per Share data, unless otherwise specified	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Option shares outstanding, Beginning balance	30	36
Weighted average exercise price	$ 21	$ 21
Option shares granted, including restoration options	1	1
Weighted average exercise price	$ 20	$ 12
Option shares exercised	2
Aggregate intrinsic value on date of exercise	$ 21	$ 1
Weighted average exercise price	$ 11	$ 9
Option shares forfeited	1	3
Weighted average exercise price	$ 23	$ 19
Option shares outstanding, Ending balance	28	34
Weighted average exercise price	$ 22	$ 21
Weighted average remaining option term (in years)	4 years	5 years
Option shares vested and expected to vest, Ending balance	28	34
Weighted average exercise price	$ 22	$ 21
Aggregate intrinsic value	69	29
Weighted average remaining option term (in years)	4 years	5 years
Option shares exercisable (vested), Ending balance	23	26
Weighted average exercise price	$ 24	$ 24
Aggregate intrinsic value	$ 37	$ 15
Weighted average remaining option term (in years)	3 years	4 years

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Accumulated Other Comprehensive Income (loss)

6 Months Ended

Jun. 30, 2013

Equity [Abstract]

Accumulated Other Comprehensive Income (loss)

K. The reclassifications from accumulated other comprehensive income (loss) to the income statement were as follows, in millions:

	Amount Reclassified
Accumulated Other Comprehensive Income (Loss)	Three Months Ended				Six Months Ended
	June 30,				June 30,				Income Statement
	2013		2012		2013		2012		Line Item
Amortization of defined benefit pension:
Actuarial losses, net	$	4	$	4	$	9	$	8	Selling, General & Administrative Expense
		—		—		—		—	Tax expense
	$	4	$	4	$	9	$	8	Net of tax
Interest rate swaps	$	1	$	—	$	1	$	—	Interest expense

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Warranty

6 Months Ended

Jun. 30, 2013

Guarantees [Abstract]

Warranty

G. Changes in the Company’s warranty liability were as follows, in millions:

	Six Months Ended			Twelve Months Ended
	June 30, 2013			December 31, 2012
Balance at January 1	$	118		$	102
Accruals for warranties issued during the period		18			42
Accruals related to pre-existing warranties		4			16
Settlements made (in cash or kind) during the period		(20	)		(38	)
Other, net		1			(4	)
Balance at end of period	$	121		$	118

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Earnings Per Common Share - Numerators and Denominators Used in Computations of Basic and Diluted Earnings Per Common Share (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Numerator (basic and diluted):
(Loss) income from continuing operations	$ 82	$ (51)	$ 138	$ (9)
Allocation to unvested restricted stock awards	(2)	(1)	(3)	(1)
(Loss) income from continuing operations attributable to common shareholders	80	(52)	135	(10)
Loss from discontinued operations	(5)	(24)	(14)	(33)
Net (loss) income available to Common shareholders	$ 75	$ (76)	$ 121	$ (43)
Denominator:
Basic common shares (based upon weighted average)	349	349	349	349
Contingent common shares
Stock option dilution	3		3
Diluted common shares	352	349	352	349

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Other Income (Expense), Net

6 Months Ended

Jun. 30, 2013

Other Income And Expenses [Abstract]

Other Income (Expense), Net

N. Other, net, which is included in other income (expense), net, was as follows, in millions:

	Three Months Ended June 30,						Six Months Ended June 30,
	2013			2012			2013		2012
Income from cash and cash investments	$	1		$	2		$	2	$	4
Income from financial investments (Note E)		5			2			8		18
Impairment of financial investments (Note E)		—			(2	)		—		(2	)
Other items, net		(3	)		—			—		(3	)
Total other net	$	3		$	2		$	10	$	17

Other items, net, included $(2) million and $1 million of currency (losses) gains for the three months and six months ended June 30, 2013, respectively. Other items, net, included $— million and $1 million of currency losses for the three months and six months ended June 30, 2012, respectively.

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Segment Information

6 Months Ended

Jun. 30, 2013

Segment Reporting [Abstract]

Segment Information

L. Information about the Company by segment and geographic area was as follows, in millions:

	Three Months Ended June 30,										Six Months Ended June 30,
	2013		2012		2013			2012			2013		2012		2013			2012
	Net Sales (A)				Operating Profit (Loss)						Net Sales (A)				Operating Profit (Loss)
The Company’s operations by segment were:
Cabinets and Related Products	$	265	$	253	$	2		$	(5	)	$	501	$	481	$	(2	)	$	(21	)
Plumbing Products		802		738		102			70			1,564		1,480		188			167
Installation and Other Services		357		296		8			(9	)		669		574		4			(23	)
Decorative Architectural Products		565		517		104			95			997		951		193			168
Other Specialty Products		160		141		11			6			294		265		10			1
Total	$	2,149	$	1,945	$	227		$	157		$	4,025	$	3,751	$	393		$	292
The Company’s operations by geographic area were:
North America	$	1,765	$	1,587	$	185		$	125		$	3,275	$	3,018	$	325		$	213
International, principally Europe		384		358		42			32			750		733		68			79
Total	$	2,149	$	1,945		227			157		$	4,025	$	3,751		393			292
General corporate expense, net						(39	)		(33	)						(73	)		(61	)
Gain from sale of fixed assets (B)						—			5							—			5
Charge for litigation settlements, net (B)						—			(75	)						—			(73	)
Operating profit						188			54							320			163
Other income (expense), net						(57	)		(66	)						(110	)		(115	)
Income (loss) before income taxes					$	131		$	(12	)					$	210		$	48

(A) Inter-segment sales were not material.

(B) In 2012, gain on sale of fixed assets relates to a business unit in the Other Specialty Products segment. For the three months and six months ended June 30, 2012, the charge for litigation settlements, net, includes $75 million related to a business unit in the Installation and Other Services segment.

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Document and Entity Information	6 Months Ended
	Jun. 30, 2013	Jul. 26, 2013
Document Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2013
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q2
Trading Symbol	MAS
Entity Registrant Name	MASCO CORP /DE/
Entity Central Index Key	0000062996
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		356,940,100

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Severance and Early Retirement Programs

6 Months Ended

Jun. 30, 2013

Asset Retirement Obligation Disclosure [Abstract]

Severance and Early Retirement Programs

M. As part of the Company’s continuing review of its operations to improve cost structure and business processes, actions were taken during 2013 and 2012 to respond to market conditions. The Company recorded charges related to severance and early retirement programs of $12 million and $5 million for the six months ended June 30, 2013 and 2012, respectively. Such charges are principally reflected in the statement of operations in selling, general and administrative expenses.

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Employee Retirement Plans - Net Periodic Pension Cost for Defined Benefit Pension Plans (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Non-Qualified Plans [Member]
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Service cost
Interest cost	2	2	3	3
Expected return on plan assets
Amortization of net loss			1	1
Net periodic pension cost	2	2	4	4
Qualified Plans [Member]
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Service cost	1	1	2	3
Interest cost	10	10	20	20
Expected return on plan assets	(9)	(9)	(18)	(17)
Amortization of net loss	4	4	8	7
Net periodic pension cost	$ 6	$ 6	$ 12	$ 13

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Stock-Based Compensation - Weighted Average Grant Date Fair Value of Option Shares Granted and Assumptions Used to Estimate Those Values Using Black-Scholes Option Pricing Model (Detail) (USD $)	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Weighted average grant date fair value	$ 8.33	$ 4.44
Risk-free interest rate	1.20%	1.10%
Dividend yield	1.47%	2.57%
Volatility factor	49.00%	51.00%
Expected option life	6 years	6 years