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Masco — Feb 10, 2026 release

Fiscal 2025 fourth-quarter results · 8-K Item 2.02 · Exhibit 99.1 · 0000062996-26-000004
Open on SEC.gov ↗
Showing in the filing
Quarterly dividend
“$0.32 per share”
Period
FY2026
Measure
Declared action
Source
Prose
All guidance in this release · 11
Earnings per share for FY2026
“$3.91 - $4.11 per share”
Additional rationalization/restructuring cha… for FY2026
“approximately $50 million”
Sales for FY2026
“roughly flat to up low-single digits”
Sales growth, adjusted for currency for FY2026
“roughly flat to up low-single digits”
Adjusted earnings per share for FY2026
“$4.10 to $4.30 per share”
Quarterly dividend for FY2026
“$0.32 per share”
Share repurchase program authorization for FY2026
“$2.0 billion”
Share repurchase program
“$2.0 billion”
Net income per common share
“$3.91”
Rationalization charges
“0.19”
Net income per common share, as adjusted
“$4.10”
Exhibit 99.1 · full document
Exhibit 99   MASCO CORPORATION REPORTS FOURTH QUARTER AND 2025 YEAR-END RESULTS Highlights • Fourth quarter net sales decreased 2 percent to $1,793 million • Fourth quarter earnings per share was $0.80; adjusted earnings per share decreased 8 percent to $0.82 • Full year 2025 net sales decreased 3 percent to $7,562 million; in local currency and excluding divestitures, net sales decreased 2 percent • Full year earnings per share was $3.86; adjusted earnings per share decreased 3 percent to $3.96 • Expect 2026 earnings per share in the range of $3.91 - $4.11 per share, and on an adjusted basis, $4.10 - $4.30 per share LIVONIA, Mich. (February 10, 2026) - Masco Corporation (NYSE: MAS), one of the world’s leading manufacturers of branded home improvement and building products, reported its fourth quarter and full-year 2025 results. 2025 Fourth Quarter Results • On a reported basis, compared to the fourth quarter 2024: • Net sales decreased 2 percent to $1,793 million; net sales decreased 3 percent in local currency ◦ Plumbing Products’ net sales increased 5 percent; in local currency net sales increased 3 percent ◦ Decorative Architectural Products’ net sales decreased 15 percent ◦ In local currency, North American sales decreased 5 percent and International sales increased 1 percent • Gross margin decreased 80 basis points to 33.9 percent from 34.7 percent • Operating profit decreased 14 percent to $248 million from $290 million • Operating margin decreased 210 basis points to 13.8 percent from 15.9 percent • Net income decreased 6 percent to $0.80 per share, compared to $0.85 per share • Compared to fourth quarter 2024, results for key financial measures, as adjusted for certain items (see Exhibit A) and with a normalized tax rate of 24.5 percent, were as follows: • Gross margin decreased 110 basis points to 33.7 percent from 34.8 percent • Operating profit decreased 11 percent to $259 million from $291 million • Operating margin decreased 150 basis points to 14.4 percent from 15.9 percent • Net income decreased 8 percent to $0.82 per share, compared to $0.89 per share • Liquidity at the end of the fourth quarter was $1,647 million (including availability under our revolving credit facility) 2025 Full Year Results • On a reported basis, compared to the full year 2024: • Net sales decreased 3 percent to $7,562 million; in local currency and excluding divestitures, net sales decreased 2 percent ◦ Plumbing Products’ net sales increased 3 percent; in local currency net sales increased 2 percent ◦ Decorative Architectural Products’ net sales decreased 14 percent; in local currency and excluding divestitures, net sales decreased 8 percent ◦ In local currency, North American sales decreased 5 percent and International sales increased 1 percent • Gross margin decreased 80 basis points to 35.4 percent from 36.2 percent • Operating profit decreased 8 percent to $1,248 million from $1,363 million • Operating margin decreased 90 basis points to 16.5 percent from 17.4 percent • Net income increased 3 percent to $3.86 per share, compared to $3.76 per share 1 • Compared to full year 2024, results for key financial measures, as adjusted for certain items (see Exhibit A) and with a normalized tax rate of 24.5 percent, were as follows: • Gross margin decreased 80 basis points to 35.5 percent from 36.3 percent • Operating profit decreased 7 percent to $1,272 million from $1,372 million • Operating margin decreased 70 basis points to 16.8 percent from 17.5 percent • Net income decreased 3 percent to $3.96 per share, compared to $4.10 per share “Overall, our fourth quarter operating results were largely in line with our expectations, as we continued to navigate through a dynamic geopolitical and macroeconomic environment,” said Jon Nudi, Masco’s President and Chief Executive Officer. “We delivered adjusted operating profit of $259 million and adjusted earnings per share of $0.82 during the quarter. Additionally, our capital allocation strategy enabled us to return $281 million to shareholders in the quarter through dividends and share repurchases.” “For the full year 2025, we delivered solid adjusted operating profit margins of 16.8 percent and adjusted earnings per share of $3.96, and we returned $832 million to shareholders through dividends and share repurchases,” continued Nudi. “We are taking decisive actions to further position our business to drive results and deliver long-term shareholder value. We recently established an Executive Committee with dual corporate and business unit representation to fully leverage our enterprise strengths, which will enable us to continue to deliver strong execution and accelerate growth moving forward.” “We also began to implement various restructuring actions to further streamline our business, reduce headcount, and optimize operations. In connection with these actions, we incurred charges of approximately $18 million in the fourth quarter of 2025, and we expect to incur approximately $50 million in additional charges in 2026. We anticipate the savings generated from these actions will fund additional growth initiatives and contribute to future margin expansion.” “As we move into 2026, we are announcing the integration of Liberty Hardware into Delta Faucet Company. This realignment is a key component of our consumer driven strategy to leverage our brands, capabilities, and scale across our organization,” said Nudi. “As a result of this integration, Liberty Hardware, which was previously reported in the Decorative Architectural Products segment, will be reported within our Plumbing Products segment moving forward.” “For 2026, we believe sales across the global repair and remodel markets will be roughly flat. We expect our sales to be roughly flat to up low-single digits when adjusted for currency, as we expect to continue to outperform the market in 2026,” said Nudi. “Based on the market outlook, our expected operating performance, and our capital deployment actions, we anticipate full year adjusted earnings per share to be in the range of $4.10 to $4.30 per share. With our industry leading brands, consumer-focused product portfolio, strong balance sheet, and disciplined capital allocation, we believe Masco is well positioned to continue to deliver long-term shareholder value.” Dividend Declaration and Share Repurchase Authorization Masco’s Board of Directors declared a quarterly dividend of $0.32 per share, payable on March 9, 2026 to shareholders of record on February 20, 2026. The Board also authorized a new $2.0 billion share repurchase program effective February 10, 2026, replacing the existing authorization. “Our dividend and our share repurchase program are important pillars of our capital allocation strategy to deliver value to our shareholders. The new $2.0 billion share repurchase program underscores Masco’s resilient business model, strong financial position and the Board’s confidence in our future performance,” concluded Nudi. About Masco Headquartered in Livonia, Michigan, Masco Corporation is a global leader in the design, manufacture and distribution of branded home improvement and building products. Our portfolio of industry-leading brands includes Behr ® paint; Delta ® and hansgrohe ® faucets, bath and shower fixtures; Liberty ® branded decorative and functional hardware; and HotSpring ® spas. We leverage our powerful brands across product categories, sales channels and geographies to create value for our customers and shareholders. For more information about Masco Corporation, visit www.masco.com. The 2025 fourth quarter and full year supplemental material, including a presentation in PDF format, is available on the Company’s website at www.masco.com. 2 Conference Call Details A conference call regarding items contained in this release is scheduled for Tuesday, February 10, 2026 at 8:00 a.m. ET. Participants in the call are asked to register five to ten minutes prior to the scheduled start time by dialing 800-549-8228 or 289-819-1520. Please use the conference identification number 68091. The conference call will be webcast simultaneously and in its entirety through the Company’s website. Shareholders, media representatives and others interested in Masco may participate in the webcast by registering through the Investor Relations section on the Company’s website. A replay of the call will be available on Masco’s website or by phone by dialing 888-660-6264 or 289-819-1325. Please use the playback passcode 68091#. The telephone replay will be available approximately two hours after the end of the call and continue through March 10, 2026. Safe Harbor Statement This press release contains statements that reflect our views about our future performance and constitute “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “outlook,” “believe,” “anticipate,” “appear,” “may,” “will,” “should,” “intend,” “plan,” “estimate,” “expect,” “assume,” “seek,” “forecast,” and similar references to future periods. Our views about future performance 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 the levels of residential repair and remodel activity, and to a lesser extent, new home construction, our ability to maintain our strong brands, to develop innovative products and respond to changing consumer purchasing practices and preferences, our ability to maintain our public image and reputation, our ability to maintain our competitive position in our industries, our reliance on key customers, the cost and availability of materials, our dependence on suppliers and service providers, extreme weather events and changes in climate, risks associated with our international operations and global strategies, the impact on demand, pricing and product costs resulting from tariffs, our ability to achieve the anticipated benefits of our strategic initiatives, our ability to successfully execute our acquisition strategy and integrate businesses that we have acquired and may in the future acquire, our ability to attract, develop and retain a talented workforce, risks associated with cybersecurity vulnerabilities, threats and attacks and risks associated with our reliance on information systems and technology. These and other factors are discussed in detail in Item 1A. "Risk Factors" in our most recent Annual Report on Form 10-K, as well as in our Quarterly Reports on Form 10-Q and in other filings we make with the Securities and Exchange Commission. Any forward-looking statement made by us speaks only as of the date on which it was made. 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. Investor Contact Robin Zondervan Vice President, Investor Relations and FP&A 313.792.5500 MascoInvestorRelations@mascohq.com # # # 3 MASCO CORPORATION Condensed Consolidated Statements of Operations - Unaudited For the Three Months and Years Ended December 31, 2025 and 2024 (in millions, except per common share data) Three Months Ended December 31, Year Ended December 31,   2025 2024 2025 2024 Net sales $ 1,793  $ 1,828  $ 7,562  $ 7,828  Cost of sales 1,186  1,192  4,883  4,997  Gross profit 607  635  2,679  2,831  Selling, general and administrative expenses 354  346  1,426  1,468  Impairment charge for other intangible assets 5  —  5  —  Operating profit 248  290  1,248  1,363  Other income (expense), net: Interest expense (24) (24) (101) (99) Other, net 4  (8) (12) (103) (21) (32) (114) (202) Income before income taxes 227  258  1,135  1,161  Income tax expense 51  65  277  287  Net income 176  193  858  874  Less: Net income attributable to noncontrolling interest 11  11  48  52  Net income attributable to Masco Corporation $ 165  $ 182  $ 810  $ 822  Income per common share attributable to Masco Corporation (diluted): Net income $ 0.80  $ 0.85  $ 3.86  $ 3.76  Average diluted common shares outstanding 207  215  210  219    Historical information is available on our website. Amounts may not add due to rounding. 4 MASCO CORPORATION Exhibit A: Reconciliations - Unaudited For the Three Months and Years Ended December 31, 2025 and 2024 (dollars in millions) Three Months Ended December 31, Year Ended December 31,   2025 2024 2025 2024 Gross Profit, Selling, General and Administrative Expenses, and Operating Profit Reconciliations         Net sales $ 1,793  $ 1,828  $ 7,562  $ 7,828  Gross profit, as reported $ 607  $ 635  $ 2,679  $ 2,831  Rationalization (income) charges (1) (2) 1  8  7  Gross profit, as adjusted $ 605  $ 636  $ 2,688  $ 2,838  Gross margin, as reported 33.9  % 34.7  % 35.4  % 36.2  % Gross margin, as adjusted 33.7  % 34.8  % 35.5  % 36.3  % Selling, general and administrative expenses, as reported $ 354  $ 346  $ 1,426  $ 1,468  Rationalization charges 8  —  11  2  Selling, general and administrative expenses, as adjusted $ 346  $ 345  $ 1,416  $ 1,466  Selling, general and administrative expenses as a percent of net sales, as reported 19.7  % 18.9  % 18.9  % 18.8  % Selling, general and administrative expenses as a percent of net sales, as adjusted 19.3  % 18.9  % 18.7  % 18.7  % Operating profit, as reported $ 248  $ 290  $ 1,248  $ 1,363  Rationalization charges 6  1  19  9  Impairment charge for other intangible assets 5  —  5  —  Operating profit, as adjusted $ 259  $ 291  $ 1,272  $ 1,372  Operating margin, as reported 13.8  % 15.9  % 16.5  % 17.4  % Operating margin, as adjusted 14.4  % 15.9  % 16.8  % 17.5  % (1) Represents income for the three months ended December 31, 2025 due to the $12 million gain on the sale of a building that was related to a previous rationalization activity, partially offset by rationalization charges. Historical information is available on our website. Amounts may not add due to rounding. 5 MASCO CORPORATION Exhibit A: Reconciliations - Unaudited For the Three Months and Years Ended December 31, 2025 and 2024 (in millions, except per common share data) Three Months Ended December 31, Year Ended December 31,   2025 2024 2025 2024 Income Per Common Share Reconciliations Income before income taxes, as reported $ 227   $ 258   $ 1,135   $ 1,161   Rationalization charges 6  1  19  9  Impairment charge for other intangible assets 5  —  5  —  Loss on sale of business (1) —  8  —  88  Realized losses (gains) from private equity funds, net —  —  4  (1) Income before income taxes, as adjusted 238   267   1,163   1,257   Tax at 24.5% rate (58) (65) (285) (308) Less: Net income attributable to noncontrolling interest 11  11  48  52  Net income, as adjusted $ 169   $ 191   $ 830   $ 897   Net income per common share, as adjusted $ 0.82   $ 0.89   $ 3.96   $ 4.10   Average diluted common shares outstanding 207  215  210  219  (1) Represents the loss for the three months and year ended December 31, 2024 from the sale of our Kichler Lighting business. Outlook for the Year Ended December 31, 2026 Year Ended December 31, 2026 Low End High End Income Per Common Share Reconciliation Net income per common share $ 3.91   $ 4.11   Rationalization charges 0.19  0.19  Net income per common share, as adjusted $ 4.10   $ 4.30   Historical information is available on our website. Amounts may not add due to rounding. 6 MASCO CORPORATION Condensed Consolidated Balance Sheets and Other Financial Data - Unaudited December 31, 2025 and 2024 (dollars in millions) December 31, 2025 December 31, 2024 Balance Sheet     Assets     Current assets:     Cash and cash investments $ 647  $ 634  Receivables 1,028  1,035  Inventories 1,046  938  Prepaid expenses and other 119  123  Total current assets 2,840  2,730  Property and equipment, net 1,195  1,116  Goodwill 623  597  Other intangible assets, net 205  220  Operating lease right-of-use assets 233  231  Other assets 105  123  Total assets $ 5,201  $ 5,016  Liabilities     Current liabilities:     Accounts payable $ 810  $ 789  Notes payable 2  3  Accrued liabilities 761  767  Total current liabilities 1,573  1,560  Long-term debt 2,945  2,945  Noncurrent operating lease liabilities 221  223  Other liabilities 387  342  Total liabilities 5,125  5,069  Equity 76  (53) Total liabilities and equity $ 5,201  $ 5,016    As of December 31, 2025 2024 Other Financial Data     Working capital days     Receivable days 51  51  Inventory days 83  72  Payable days 70  70  Working capital $ 1,264  $ 1,184  Working capital as a % of sales (LTM) 16.7  % 15.1  % Historical information is available on our website. Amounts may not add due to rounding. 7 MASCO CORPORATION Condensed Consolidated Statements of Cash Flows and Other Financial Data - Unaudited For the Years Ended December 31, 2025 and 2024 (dollars in millions) Year Ended December 31,   2025 2024 Cash Flows From (For) Operating Activities:     Cash provided by operating activities $ 1,098  $ 1,205  Working capital changes (76) (130) Net cash from operating activities 1,022  1,075  Cash Flows From (For) Financing Activities:     Purchase of Company common stock (571) (751) Excise tax paid on the purchase of Company common stock (6) (3) Cash dividends paid (261) (254) Purchase of redeemable noncontrolling interest —  (15) Dividends paid to noncontrolling interest (45) (37) Proceeds from the exercise of stock options 6  79  Employee withholding taxes paid on stock-based compensation (10) (35) Payment of debt (2) (3) Net cash for financing activities (888) (1,017) Cash Flows From (For) Investing Activities:     Capital expenditures (156) (168) Acquisition of business —  (4) Proceeds from disposition of: Business, net of cash disposed —  126  Property and equipment 14  1  Other, net (3) (5) Net cash for investing activities (144) (50) Effect of exchange rate changes on cash and cash investments 25  (9) Cash and Cash Investments:     Increase (decrease) for the year 14  (1) At January 1 634  634  At December 31 $ 647  $ 634      As of December 31,   2025 2024 Liquidity Cash and cash investments $ 647  $ 634  Revolver availability 1,000  1,000  Total Liquidity $ 1,647  $ 1,634    Historical information is available on our website. Amounts may not add due to rounding. 8 MASCO CORPORATION Segment Data - Unaudited For the Three Months and Years Ended December 31, 2025 and 2024 (dollars in millions) Three Months Ended December 31, Year Ended December 31,   2025 2024 Change 2025 2024 Change Plumbing Products             Net sales $ 1,248  $ 1,189  5  % $ 4,992  $ 4,853  3  % Operating profit, as reported $ 207  $ 198  $ 895  $ 911  Operating margin, as reported 16.6  % 16.7  % 17.9  % 18.8  % Rationalization (income) charges (3) 1  9  9  Accelerated depreciation related to rationalization activity —  —  1  —  Operating profit, as adjusted 204  200  904  920  Operating margin, as adjusted 16.3  % 16.8  % 18.1  % 19.0  % Depreciation and amortization 30  28  110  107  EBITDA, as adjusted $ 234  $ 228  $ 1,014  $ 1,027  Decorative Architectural Products Net sales $ 545  $ 639  (15) % $ 2,570  $ 2,975  (14) % Operating profit, as reported $ 62  $ 113  $ 443  $ 549  Operating margin, as reported 11.4  % 17.7  % 17.2  % 18.5  % Rationalization charges 8  —  9  1  Impairment charge for other intangible assets 5  —  5  —  Operating profit, as adjusted 76  113  457  550  Operating margin, as adjusted 13.9  % 17.7  % 17.8  % 18.5  % Depreciation and amortization 8  7  30  35  EBITDA, as adjusted $ 83  $ 120  $ 487  $ 585  Total Net sales $ 1,793  $ 1,828  (2) % $ 7,562  $ 7,828  (3) % Operating profit, as reported - segment $ 269  $ 311  $ 1,338  $ 1,460  General corporate expense, net (22) (21) (89) (97) Operating profit, as reported 248  290  1,248  1,363  Operating margin, as reported 13.8  % 15.9  % 16.5  % 17.4  % Rationalization charges - segment 6  1  18  9  Accelerated depreciation related to rationalization activity - segment —  —  1  —  Impairment charge for other intangible assets 5  —  5  —  Operating profit, as adjusted 259  291  1,272  1,372  Operating margin, as adjusted 14.4  % 15.9  % 16.8  % 17.5  % Depreciation and amortization - segment 38  35  140  143  Depreciation and amortization - other 2  2  7  7  EBITDA, as adjusted $ 298  $ 328  $ 1,420  $ 1,522  Historical information is available on our website. Amounts may not add due to rounding. 9 MASCO CORPORATION Recasted Segment Data - Unaudited For the Years Ended December 31, 2025 and 2024 (dollars in millions) Year Ended December 31, 2025 Year Ended December 31, 2024   Reported Adjustment (1) Recasted Reported Adjustment (1) Recasted Plumbing Products             Net sales $ 4,992  $ 218  $ 5,209  $ 4,853  $ 260  $ 5,113  Operating profit, as reported $ 895  $ 12  $ 906  $ 911  $ 43  $ 954  Operating margin, as reported 17.9  % 17.4  % 18.8  % 18.7  % Rationalization charges 9  1  10  9  —  9  Accelerated depreciation related to rationalization activity 1  —  1  —  —  —  Operating profit, as adjusted $ 904  $ 13  $ 917  $ 920  $ 43  $ 962  Operating margin, as adjusted 18.1  % 17.6  % 19.0  % 18.8  % Decorative Architectural Products Net sales $ 2,570  $ (218) $ 2,353  $ 2,975  $ (260) $ 2,715  Operating profit, as reported $ 443  $ (12) $ 431  $ 549  $ (43) $ 507  Operating margin, as reported 17.2  % 18.3  % 18.5  % 18.7  % Rationalization charges 9  (1) 8  1  —  1  Impairment charge for other intangible assets 5  —  5  —  —  —  Operating profit, as adjusted $ 457  $ (13) $ 444  $ 550  $ (43) $ 507  Operating margin, as adjusted 17.8  % 18.9  % 18.5  % 18.7  % Total Net sales $ 7,562  $ —  $ 7,562  $ 7,828  $ —  $ 7,828  Operating profit, as reported - segment $ 1,338  $ —  $ 1,338  $ 1,460  $ —  $ 1,460  General corporate expense, net (89) —  (89) (97) —  (97) Operating profit, as reported 1,248  —  1,248  1,363  —  1,363  Operating margin, as reported 16.5  % 16.5  % 17.4  % 17.4  % Rationalization charges - segment 18  —  18  9  —  9  Accelerated depreciation related to rationalization activity - segment 1  —  1  —  —  —  Impairment charge for other intangible assets 5  —  5  —  —  —  Operating profit, as adjusted $ 1,272  $ —  $ 1,272  $ 1,372  $ —  $ 1,372  Operating margin, as adjusted 16.8  % 16.8  % 17.5  % 17.5  % (1) Represents the impact of the internal reorganization resulting in the integration of our Liberty Hardware business into our Delta Faucet business. Historical information is available on our website. Amounts may not add due to rounding. 10 MASCO CORPORATION Recasted Segment Data - Unaudited For the Three Months Ended March 31, 2025 and June 30, 2025 (dollars in millions) Three Months Ended March 31, 2025 Three Months Ended June 30, 2025   Reported Adjustment (1) Recasted Reported Adjustment (1) Recasted Plumbing Products             Net sales $ 1,185  $ 61  $ 1,246  $ 1,312  $ 60  $ 1,372  Operating profit, as reported $ 217  $ 7  $ 225  $ 275  $ 10  $ 285  Operating margin, as reported 18.3  % 18.1  % 21.0  % 20.8  % Rationalization charges 2  —  2  2  —  2  Operating profit, as adjusted $ 219  $ 7  $ 227  $ 276  $ 10  $ 286  Operating margin, as adjusted 18.5  % 18.2  % 21.0  % 20.8  % Decorative Architectural Products Net sales $ 617  $ (61) $ 556  $ 738  $ (60) $ 679  Operating profit, as reported $ 96  $ (7) $ 88  $ 157  $ (10) $ 147  Operating margin, as reported 15.6  % 15.8  % 21.3  % 21.6  % Total Net sales $ 1,801  $ —  $ 1,801  $ 2,051  $ —  $ 2,051  Operating profit, as reported - segment $ 313  $ —  $ 313  $ 432  $ —  $ 432  General corporate expense, net (27) —  (27) (20) —  (20) Operating profit, as reported 286  —  286  412  —  412  Operating margin, as reported 15.9  % 15.9  % 20.1  % 20.1  % Rationalization charges - segment 2  —  2  2  —  2  Operating profit, as adjusted $ 288  $ —  $ 288  $ 413  $ —  $ 413  Operating margin, as adjusted 16.0  % 16.0  % 20.1  % 20.1  % (1) Represents the impact of the internal reorganization resulting in the integration of our Liberty Hardware business into our Delta Faucet business. Historical information is available on our website. Amounts may not add due to rounding. 11 MASCO CORPORATION Recasted Segment Data - Unaudited For the Three Months Ended September 30, 2025 and December 31, 2025 (dollars in millions) Three Months Ended September 30, 2025 Three Months Ended December 31, 2025   Reported Adjustment (1) Recasted Reported Adjustment (1) Recasted Plumbing Products             Net sales $ 1,247  $ 43  $ 1,290  $ 1,248  $ 54  $ 1,302  Operating profit, as reported $ 196  $ —  $ 196  $ 207  $ (6) $ 201  Operating margin, as reported 15.7  % 15.2  % 16.6  % 15.4  % Rationalization charges (income) 8  1  8  (3) —  (2) Operating profit, as adjusted $ 204  $ 1  $ 205  $ 204  $ (5) $ 199  Operating margin, as adjusted 16.4  % 15.9  % 16.3  % 15.3  % Decorative Architectural Products Net sales $ 670  $ (43) $ 627  $ 545  $ (54) $ 491  Operating profit, as reported $ 128  $ —  $ 127  $ 62  $ 6  $ 68  Operating margin, as reported 19.1  % 20.3  % 11.4  % 13.8  % Rationalization charges 1  (1) —  8  —  8  Impairment charge for other intangible assets —  —  —  5  —  5  Operating profit, as adjusted $ 128  $ (1) $ 127  $ 76  $ 5  $ 81  Operating margin, as adjusted 19.1  % 20.3  % 13.9  % 16.5  % Total Net sales $ 1,917  $ —  $ 1,917  $ 1,793  $ —  $ 1,793  Operating profit, as reported - segment $ 324  $ —  $ 324  $ 269  $ —  $ 269  General corporate expense, net (20) —  (20) (22) —  (22) Operating profit, as reported 303  —  303  248  —  248  Operating margin, as reported 15.8  % 15.8  % 13.8  % 13.8  % Rationalization charges - segment 8  —  8  6  —  6  Impairment charge for other intangible assets —  —  —  5  —  5  Operating profit, as adjusted $ 312  $ —  $ 312  $ 259  $ —  $ 259  Operating margin, as adjusted 16.3  % 16.3  % 14.4  % 14.4  % (1) Represents the impact of the internal reorganization resulting in the integration of our Liberty Hardware business into our Delta Faucet business. Historical information is available on our website. Amounts may not add due to rounding. 12
the item shown at left
other guidance in this release
Text is the filed exhibit, verbatim.