Masco corporation

See notes to consolidated financial statements.

37

MASCO CORPORATION and Consolidated Subsidiaries

CONSOLIDATED STATEMENTS OF OPERATIONS

for the years ended December 31, 2016 , 2015 and 2014

	(In Millions, Except Per Common Share Data)
	2016				2015				2014
Net sales	$	7,357			$	7,142			$	7,006
Cost of sales	4,901				4,889				4,946
Gross profit	2,456				2,253				2,060
Selling, general and administrative expenses	1,403				1,339				1,347
Income from litigation settlements	—				—				(9		)
Impairment charge for other intangible assets	—				—				1
Operating profit	1,053				914				721
Other income (expense), net:
Interest expense	(229		)		(225		)		(225		)
Other, net	6				—				11
	(223		)		(225		)		(214		)
Income from continuing operations before income taxes	830				689				507
Income tax expense (benefit)	296				293				(361		)
Income from continuing operations	534				396				868
(Loss) income from discontinued operations, net	—				(2		)		35
Net income	534				394				903
Less: Net income attributable to noncontrolling interest	43				39				47
Net income attributable to Masco Corporation	$	491			$	355			$	856
Income (loss) per common share attributable to Masco Corporation:
Basic:
Income from continuing operations	$	1.49			$	1.04			$	2.31
(Loss) income from discontinued operations, net	—				(0.01		)		0.10
Net income	$	1.49			$	1.03			$	2.40
Diluted:
Income from continuing operations	$	1.47			$	1.03			$	2.28
(Loss) income from discontinued operations, net	—				(0.01		)		0.10
Net income	$	1.47			$	1.02			$	2.38
Amounts attributable to Masco Corporation:
Income from continuing operations	$	491			$	357			$	821
(Loss) income from discontinued operations, net	—				(2		)		35
Net income	$	491			$	355			$	856

   

See notes to consolidated financial statements.

38

MASCO CORPORATION and Consolidated Subsidiaries

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

for the years ended December 31, 2016 , 2015 and 2014

	(In Millions)
	2016				2015				2014
Net income	$	534			$	394			$	903
Less: Net income attributable to noncontrolling interest	43				39				47
Net income attributable to Masco Corporation	$	491			$	355			$	856
Other comprehensive income (loss), net of tax (Note O):
Cumulative translation adjustment	$	(78	)		$	(96	)		$	(124	)
Interest rate swaps	1				2				1
Pension and other post-retirement benefits	(15		)		26				(140		)
Realized loss on available-for-sale securities	12				—				—
Other comprehensive (loss)	(80		)		(68		)		(263		)
Less: Other comprehensive income (loss) attributable to the noncontrolling interest:
Cumulative translation adjustment	$	(10	)		$	(16	)		$	(31	)
Pension and other post-retirement benefits	—				2				(6		)
	(10		)		(14		)		(37		)
Other comprehensive (loss) attributable to Masco Corporation	$	(70	)		$	(54	)		$	(226	)
Total comprehensive income	$	454			$	326			$	640
Less: Total comprehensive income attributable to noncontrolling interest	33				25				10
Total comprehensive income attributable to Masco Corporation	$	421			$	301			$	630

   

See notes to consolidated financial statements.

39