Masco corporation

MASCO CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

H. GOODWILL AND OTHER INTANGIBLE ASSETS (Concluded)

	Gross Goodwill At December 31, 2014				Accumulated Impairment Losses				Net Goodwill At December 31, 2014				Additions (A)				Other (B)				Net Goodwill At December 31, 2015
Plumbing Products	$	531			$	(340	)		$	191			$	8			$	(14	)		$	185
Decorative Architectural Products	294				(75		)		219				—				—				219
Cabinetry Products	240				(59		)		181				—				—				181
Windows and Other Specialty Products	983				(734		)		249				6				(1		)		254
Total	$	2,048			$	(1,208	)		$	840			$	14			$	(15	)		$	839

                                                             

(A)		Additions consist of acquisitions.
(B)	Other principally includes the effect of foreign currency translation.

We completed our annual impairment testing of goodwill and other indefinite-lived intangible assets in the fourth quarters of 2016 , 2015 and 2014 . There was no impairment of goodwill for any of our reporting units for any of these years.

Other indefinite-lived intangible assets were $136 million and $137 million at December 31, 2016 and 2015 , respectively, and principally included registered trademarks. In 2016 and 2015 , the impairment test indicated there was no impairment of other indefinite-lived intangible assets for any of our business units. In 2014 , we recognized an insignificant impairment charge for other indefinite-lived intangible assets. As a result of our 2015 acquisitions, other indefinite lived intangible assets increased by $7 million as of the acquisition dates.

The carrying value of our definite-lived intangible assets was $18 million (net of accumulated amortization of $16 million ) at December 31, 2016 and $23 million (net of accumulated amortization of $49 million ) at December 31, 2015 and principally included customer relationships with a weighted average amortization period of 10 years in 2016 and 2015 . Amortization expense related to the definite-lived intangible assets of continuing operations was $4 million , $6 million and $4 million in 2016 , 2015 and 2014 , respectively. As a result of our 2015 acquisitions, definite-lived intangible assets increased by $17 million as of the acquisition dates.

At December 31, 2016 , amortization expense related to the definite-lived intangible assets during each of the next five years was as follows: 2017 – $3 million ; 2018 – $2 million ; 2019 – $2 million , 2020 –  $2 million and 2021 – $2 million .

I. OTHER ASSETS

	(In Millions) At December 31
	2016				2015
Financial investments (Note E)	$	18			$	48
In-store displays, net	42				56
Deferred tax assets (Note S)	68				184
Other	29				22
Total	$	157			$	310

In-store displays are amortized using the straight-line method over the expected useful life of three to five years ; we recognized amortization expense related to in-store displays of $25 million , $20 million and $15 million in 2016 , 2015 and 2014 , respectively. Cash spent for displays was $11 million , $43 million and $30 million in 2016 , 2015 and 2014 , respectively, and are included in other, net within investing activities on the consolidated statements of cash flows.
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MASCO CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

J. ACCRUED LIABILITIES

	(In Millions) At December 31
	2016				2015
Salaries, wages and commissions	$	191			$	171
Advertising and sales promotion	146				132
Interest	51				62
Warranty (Note U)	56				50
Employee retirement plans	52				48
Insurance reserves	41				44
Property, payroll and other taxes	19				25
Dividends payable	32				32
Other	70				86
Total	$	658			$	650

K. DEBT

	(In Millions) At December 31
	2016				2015
Notes and debentures:
6.125%, due October 3, 2016	$	—			$	1,000
5.850%, due March 15, 2017	—				300
6.625%, due April 15, 2018	114				114
7.125%, due March 15, 2020	500				500
3.500%, due April 1, 2021	399				—
5.950%, due March 15, 2022	400				400
4.450%, due April 1, 2025	500				500
4.375%, due April 1, 2026	498				—
7.750%, due August 1, 2029	296				296
6.500%, due August 15, 2032	300				300
Other	9				13
Prepaid debt issuance costs	(19		)		(16		)
	2,997				3,407
Less: Current portion	2				1,004
Total long-term debt	$	2,995			$	2,403

All of the notes and debentures above are senior indebtedness and, other than the 6.625% notes due 2018 and the 7.75% notes due 2029, are redeemable at our option.

On March 17, 2016 , we issued $400 million of 3.5% Notes due April 1, 2021 and $500 million of 4.375% Notes due April 1, 2026. We received proceeds of $896 million , net of discount, for the issuance of these Notes. The Notes are senior indebtedness and are redeemable at our option at the applicable redemption price. On April 15, 2016, proceeds from the debt issuances, together with cash on hand, were used to repay and early retire all of our $1 billion , 6.125% Notes which were due on October 3, 2016 and all of our $300 million , 5.85% Notes which were due on March 15, 2017. In connection with these early retirements, we incurred $40 million of debt extinguishment costs, which we recorded as interest expense.

On June 15, 2015 , we repaid and retired all of our $500 million , 4.8% Notes on the scheduled retirement date.

On March 24, 2015 , we issued $500 million of 4.45% Notes due April 1, 2025.

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