Masco corporation

The tax expense related to the available-for-sale securities includes $14 million related to the disproportionate tax effect that we recognized as a result of the redemption of all of our auction rate securities. Refer to Note S to the consolidated financial statements for additional information.

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MASCO CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

P. SEGMENT INFORMATION

Our reportable segments are as follows:

Plumbing Products –  principally includes faucets; plumbing fittings and valves; showerheads and hand showers; bathtubs and shower enclosures; toilets; spas; and exercise pools.

Decorative Architectural Products –  principally includes paints and other coating products; and cabinet, door, window and other hardware.

Cabinetry Products –  principally includes assembled kitchen and bath cabinets; home office workstations; entertainment centers; and storage products.

Windows and Other Specialty Products –  principally includes windows; window frame components; patio doors; staple gun tackers; staples; and other fastening tools.

The above products are sold to the home improvement and new home construction markets through home center retailers, mass merchandisers, hardware stores, homebuilders, distributors and other outlets for consumers and contractors and direct to the customer.

Our operations are principally located in North America and Europe. Our country of domicile is the United States of America.

Corporate assets consist primarily of real property, equipment, cash and cash investments and other investments.

Our segments are based upon similarities in products and represent the aggregation of operating units, for which financial information is regularly evaluated by our corporate operating executive in determining resource allocation and assessing performance, and is periodically reviewed by the Board of Directors. Accounting policies for the segments are the same as those for us. We primarily evaluate performance based upon operating profit (loss) and, other than general corporate expense, allocate specific corporate overhead to each segment. The evaluation of segment operating profit (loss) also excludes the income from litigation settlements.

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

	Net Sales (1)(2)(3)(4)(5)												Operating Profit (Loss) (5)(6)												Assets at December 31 (8)
	2016				2015				2014				2016				2015				2014				2016				2015				2014
Our operations by segment were: (9)
Plumbing Products	$	3,526			$	3,341			$	3,308			$	642			$	512			$	512			$	2,009			$	1,972			$	1,989
Decorative Architectural Products	2,092				2,020				1,998				430				403				360				894				874				857
Cabinetry Products	970				1,025				999				93				51				(62		)		537				567				608
Windows and Other Specialty Products	769				756				701				(3		)		57				47				743				748				702
Total	$	7,357			$	7,142			$	7,006			$	1,162			$	1,023			$	857			$	4,183			$	4,161			$	4,156
Our operations by geographic area were:
North America	$	5,834			$	5,645			$	5,377			$	961			$	841			$	643			$	3,001			$	2,925			$	2,861
International, principally Europe	1,523				1,497				1,629				201				182				214				1,182				1,236				1,295
Total, as above	$	7,357			$	7,142			$	7,006			1,162				1,023				857				4,183				4,161				4,156
General corporate expense, net (6)													(109		)		(109		)		(145		)
Income from litigation settlements (7)													—				—				9
Operating profit, as reported													1,053				914				721
Other income (expense), net													(223		)		(225		)		(214		)
Income from continuing operations before income taxes													$	830			$	689			$	507
Corporate assets (10)																									954				1,503				1,576
Assets held for sale																									—				—				1,476
Total assets																									$	5,137			$	5,664			$	7,208

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