Masco sells Behr paint, Delta and hansgrohe faucets, and other home improvement products through retailers and distributors. In the second quarter ended June 30, 2026, a $95 million net benefit from tariff refunds more than explained its $58 million increase in operating profit. The benefit strengthened earnings, but lower North American sales and borrowing to fund share repurchases leave Masco with two separate tasks: rebuild product demand and preserve cash for its business commitments.
Analysis period: April–June 2026, with January–June comparisons where stated. Research cutoff: October 19, 2026, New York time. The latest operating evidence used here is Home Depot’s August 18 release; Masco’s financial results and outlook are from July 29.
Source: Masco second-quarter 2026 Form 10-Q, statements of operations, pp. 2 and 17–18; liquidity discussion, pp. 21–22.
1. Refunds explain the profit increase, even in Masco’s adjusted results
The refund benefit exceeded the entire increase in operating profit. Masco reported operating profit of $470 million, up from $412 million. Removing only the disclosed $95 million net tariff-refund benefit produces approximately $375 million, about 9% below the prior-year reported result.
This is a calculation to show the benefit’s importance, not an estimate of recurring earnings. It retains other current-period costs, including restructuring charges. The $95 million is already a net operating benefit, principally in Plumbing Products; it is neither the gross refund claim nor an after-tax amount.
The reported accounts show where the improvement entered. The amount left after product costs—gross profit—rose while sales declined. Higher prices and cost savings helped, alongside lower tariff costs including refunds. Lower volumes, higher commodity costs and a less favorable mix of products worked against those gains. Spending on employees, legal and professional services, and other administrative activities also increased.
| Consolidated results, US$ million except margins and EPS | Second quarter 2025 | Second quarter 2026 | First half 2025 | First half 2026 |
|---|---|---|---|---|
| Net sales | 2,051 | 1,992 | 3,852 | 3,910 |
| Gross profit | 772 | 868 | 1,416 | 1,553 |
| Selling, general and administrative expenses | 361 | 397 | 719 | 766 |
| Operating profit | 412 | 470 | 698 | 787 |
| Operating margin, reported | 20.1% | 23.6% | 18.1% | 20.1% |
| Net income attributable to Masco | 270 | 318 | 456 | 531 |
| Diluted earnings per share, US$ | 1.28 | 1.60 | 2.15 | 2.64 |
Source: Masco Form 10-Q, pp. 2 and 17–19. Margins are Masco’s published percentages; amounts are independently rounded.
Masco’s adjusted profit removes restructuring costs but retains refunds. Subtracting the refund benefit gives approximately $387 million versus $413 million for the quarter, and $712 million versus $701 million for the first half. The longer period therefore shows better resilience. The reconciliation is below.
The reported net-income increase also benefited from lower expenses outside operations and a lower tax rate. Second-quarter interest expense rose to $28 million from $26 million, while other net expenses fell to $2 million from $7 million. The effective tax rate declined to 24.3% from 25.1%.
Fewer shares amplified the per-share result. Average diluted shares fell to about 199 million from 211 million, a 5.7% reduction. Consequently, diluted EPS rose 25%, faster than the approximately 18% increase in income attributable to Masco. Repurchases helped each remaining share represent more of the company’s earnings; they did not produce the operating profit itself.
Sources: Masco earnings release, July 29, 2026, Exhibit A operating-profit reconciliation; Form 10-Q, Notes H–I and pp. 18–19. The calculation notes below reconcile reported and adjusted operating profit and explain the EPS share-count basis.
2. Higher prices have not restored North American sales volume
Masco’s first-half sales growth largely came from translating foreign sales into dollars. Reported sales increased $58 million. Currency translation supplied $52 million of that increase. After removing this effect, sales were approximately flat: higher prices offset lower North American volume.
The second quarter was weaker. Masco attributed a five-percentage-point reduction in consolidated sales to lower North American volume. Higher prices and greater international volume each contributed approximately one percentage point in the other direction. These are rounded contributions to company sales growth, not changes in every product’s price or unit sales.
Geography makes the pressure clearer. Second-quarter North American sales fell to $1,554 million from $1,638 million. International sales rose to $438 million from $413 million, with growth of 4% in local currencies. International improvement softened the decline, but North America still generated about 78% of sales.
| Segment results, US$ million | Second quarter 2025 | Second quarter 2026 | First half 2025 | First half 2026 |
|---|---|---|---|---|
| Plumbing Products sales | 1,372 | 1,337 | 2,618 | 2,700 |
| Plumbing Products operating profit | 285 | 352 | 509 | 595 |
| Decorative Architectural Products sales | 679 | 655 | 1,234 | 1,209 |
| Decorative Architectural Products operating profit | 147 | 147 | 236 | 251 |
Reporting basis: Both years include Liberty Hardware in Plumbing Products following its integration into Delta Faucet. Segment profit includes allocated corporate costs; consolidated operating profit also deducts unallocated corporate expenses. Bristan remains included through June 30.
Sources: Masco Form 10-Q, Notes A, B and G, and pp. 17–20; July 29 earnings release, geographic sales discussion.
Plumbing generated most of the profit improvement, but it also received most of the refund benefit. The filing does not allocate the entire $95 million between segments, so subtracting all of it from Plumbing would overstate the precision of the evidence. Its sales fell despite international volume growth, with weaker North American volume the main disclosed cause.
The paint-focused Decorative Architectural Products business provides stronger evidence of operating resilience. Its quarterly profit stayed at $147 million despite lower sales. Higher prices and cost savings offset lower volume and higher commodity costs. Its reported margin improved to 22.4% from 21.6%. This shows that Masco can defend profit in a weak sales environment, even though it has not yet restored volume growth.
Source: Masco Form 10-Q, Note G and segment discussion, pp. 19–20.
3. Masco needs stronger customer orders to meet its growth targets
Masco has room to improve its commercial execution, but the industry evidence remains mixed. Its brands give it established routes to customers. That access also creates dependence: Home Depot accounted for 38% of Masco’s 2025 sales, and Behr grants the retailer exclusivity in North American retail channels. A strong relationship can support broad distribution, while leaving Masco exposed to one customer’s purchasing decisions and negotiating power.
Source: Masco 2025 Form 10-K, Business and Risk Factors, pp. 4 and 11.
Later evidence offers both encouragement and a reason for caution. Home Depot reported that U.S. comparable sales increased 1.3% in its quarter ended August 2, 2026, and described continued customer spending on smaller projects. That supports the opportunity for products such as paint and faucets. It does not measure purchases of Masco products specifically, and its reporting period extends beyond Masco’s June quarter.
Meanwhile, Moen owner Fortune Brands reported Water Innovations sales of $605.0 million for the thirteen weeks ended June 27, down 6.5% from $646.9 million. That decline supports the view that Masco faces broader plumbing-market pressure. Differences in geography and product mix prevent using the two growth rates as a direct measure of market-share gains.
Sources: Home Depot second-quarter release, August 18, 2026, opening discussion and reporting-period tables; Fortune Brands second-quarter release, August 4, 2026, segment sales table and company description.
Management’s response combines selling initiatives with changes inside the business. Its May strategy update targets average annual organic sales growth of approximately 3–4%, assuming low-single-digit industry growth, and an adjusted operating margin of at least 18% by 2028. Organic growth means growth from the existing business after removing acquisitions, divestitures and currency effects. The targets are management’s ambitions, not an achieved growth rate.
The intended benefit is to use Masco’s brands more effectively through better commercial capabilities and operations. First-half price increases show some ability to recover costs. However, approximately flat currency-adjusted sales and falling North American volume leave the sales target unproven. The decisive improvement would be more customer orders without sacrificing the price gains that help pay for materials and labor.
Source: Masco strategic update, May 13, 2026, strategy and 2028 targets; Form 10-Q, p. 17.
Masco is also integrating Liberty Hardware into Delta Faucet to streamline operations. Its broader restructuring program incurred $20 million of charges in the first half, with about $50 million expected for the full year. The implied remaining expense is approximately $30 million if that plan holds. Consolidating activities and reducing staffing can lower future costs, but the filing does not provide a separate dollar target for the savings, so the program’s payback cannot yet be measured.
The July 28 sale of Bristan also narrows the business portfolio. Masco disclosed a price of £49 million, or $65 million, net of cash disposed, plus up to £6 million, or $8 million, if performance conditions are met. The proceeds belong after the June balance-sheet date. Future sales will exclude Bristan, making reported growth harder to interpret unless comparisons remove its prior-period contribution. Masco did not classify the sale as discontinued operations.
Source: Masco Form 10-Q, Note K and p. 16. The additional sale consideration is conditional, not cash already received.
4. Less cash went into inventory, but receivables still tied up funds
Operating cash improved mainly because inventory and payment timing were less demanding than a year earlier. First-half operating cash flow rose to $417 million from $148 million. Masco needed much less additional cash for inventory, while changes in supplier bills and other accrued expenses provided cash instead of consuming it.
That improvement matters because Masco records a sale before it necessarily collects payment. It also records a probable tariff refund before all the money arrives. Receivables rose to $1,342 million from $1,028 million at year-end, and their cash-flow movement consumed $327 million during the first half. This category therefore cannot be read as unpaid customer invoices alone. Masco began receiving refunds in the second quarter but did not separately disclose the unpaid refund balance or cash collected.
| First-half operating cash bridge, US$ million | 2025 | 2026 |
|---|---|---|
| Cash before the three working-capital movements below | 606 | 705 |
| Cash tied up in additional receivables | -271 | -327 |
| Cash tied up in additional inventory | -133 | -22 |
| Cash from / used by supplier bills and accrued expenses | -55 | 61 |
| Rounding difference to published total | 1 | 0 |
| Operating cash flow | 148 | 417 |
Source: Masco Form 10-Q, cash-flow statement, p. 4; Note A on tariff-refund receivables. Working capital here means the three specified cash-flow movements, not every current asset minus every current liability.
Inventory on the balance sheet increased only modestly, to $1,060 million from $1,046 million. Finished products accounted for $626 million, raw materials $324 million and unfinished production $110 million. The cash tied up in inventory still increased; the improvement was that the increase was much smaller than in the first half of 2025. It was not a cash release from shrinking inventory.
Suppliers also helped fund operations through unpaid bills. Accounts payable rose to $890 million from $810 million, while accrued liabilities fell slightly to $754 million from $761 million. Masco says it works to extend supplier payment terms. Its supplier-finance program remained small: $39 million of confirmed obligations were included in accounts payable, of which $19 million was owed to participating financial institutions. These amounts are already included in operating liabilities and must not be added again as separate financing debt.
Sources: Masco Form 10-Q, balance sheet, Notes C and E, and liquidity discussion, p. 21.
Masco invested $77 million in property additions during the first half, including $60 million in Plumbing Products. Its stated investment purposes include manufacturing and distribution productivity, customer service and product innovation. Those purposes explain why spending continues during weak demand, but the company does not divide this spending into maintenance and expansion.
After subtracting the $77 million of cash capital expenditures from operating cash flow, calculated free cash flow was $340 million, versus $80 million a year earlier. That amount was available before dividends, repurchases and other financing uses. The business generated substantially more cash, but the payment of refunds and the future settlement of supplier bills still matter to how much of the improvement can continue.
Sources: Masco Form 10-Q, cash-flow statement and Note G property additions; 2025 Form 10-K, Capital Expenditures, p. 24. The free-cash-flow calculation uses cash capital expenditures and makes no acquisition or asset-sale adjustment.
5. Share repurchases used more cash than the business generated after investment
Masco retained substantial borrowing capacity, while choosing to increase debt to retire shares. Its capital-allocation policy includes reinvestment, an investment-grade credit rating, dividends, and repurchases or acquisitions. Retiring shares reduces the number sharing future earnings. In this first half, that choice also used more cash than operations supplied after capital spending.
| First-half cash allocation, US$ million | 2025 | 2026 |
|---|---|---|
| Operating cash flow | 148 | 417 |
| Capital spending, positive cash use | 68 | 77 |
| Cash remaining after capital spending | 80 | 340 |
| Common-share repurchases paid | 231 | 592 |
| Common dividends paid | 132 | 129 |
| Shortfall after these repurchases and dividends | -283 | -381 |
Reporting basis: The shortfall excludes repurchase excise tax and all other financing items. It compares cash actually paid with cash generated in the same six months.
Sources: Masco Form 10-Q, p. 4 and pp. 21–22; 2025 Form 10-K, capital-allocation policy, p. 24.
Masco explicitly states that the $300 million drawn on its new term loan was used to repurchase shares. Cash nevertheless declined from $647 million to $548 million. Financing debt, measured as short-term notes plus long-term debt, increased from $2,947 million to $3,247 million. Debt less cash therefore increased by a calculated $399 million, to $2,699 million.
The company repurchased and retired approximately 7.8 million shares in the first half, including 0.4 million to offset restricted-stock dilution. Shares outstanding fell from approximately 204.3 million to 197.2 million; employee share issuance partly offset retirements. In July, Masco received another approximately 0.8 million shares when its prepaid accelerated repurchase settled, with no additional payment. Those July shares are outside the June count.
The result also explains the negative book equity. Masco earned a profit, but retiring shares and declaring dividends reduced the owners’ recorded interest in the balance sheet. Total equity fell from $76 million to negative $118 million. Within that total, Masco shareholders’ deficit was $365 million, offset partly by $247 million belonging to minority owners of consolidated subsidiaries. The relevant funding question is whether cash generation and available credit can meet obligations; the negative equity figure alone does not answer it.
Source: Masco Form 10-Q, balance sheet, equity statements, Note I and pp. 21–22. See the equity reconciliation in the calculation notes.
At June 30, Masco had $548 million of cash and an undrawn $1 billion revolving credit facility, giving $1,548 million of stated liquidity. The revolver runs to March 2031. Of the cash, $316 million was held by foreign subsidiaries; Masco said repatriation would not create significant additional taxes, except for legally restricted earnings.
The next important debt concentration is in 2028, when the new $300 million term loan comes due alongside $600 million of existing notes. A $300 million note matures in November 2027. This gives Masco time to retain cash or arrange refinancing, but continuing large repurchases uses some of that flexibility.
| Selected debt commitments, US$ million | Principal | Maturity | Annual interest rate |
|---|---|---|---|
| Existing notes | 300 | November 2027 | 3.500% |
| Existing notes | 600 | February 2028 | 1.500% |
| New term loan drawn at June 30 | 300 | April 2028 | 4.499% |
| Existing notes | 235 | August 2029 | 7.750% |
Reporting basis: This is a selected maturity schedule, not all debt. The term-loan rate floats and is the June 30 rate. The older notes come from the year-end debt schedule; the 2026 filing reports the added term borrowing.
Sources: 2025 Form 10-K, Note K, pp. 52–53; 2026 Form 10-Q, Note F and pp. 20–21.
At its June rate, the drawn term loan would cost approximately $13.5 million in annual interest if the balance and rate stayed unchanged. A one-percentage-point rate increase would add $3 million annually on that borrowing. Separately, the year-end contractual schedule showed $98 million of interest payments due during 2026, before the new term loan. This separates the borrowing’s additional cost from Masco’s existing interest commitments.
The credit agreements limit debt relative to earnings and require earnings to cover interest by a minimum amount. Their defined net-leverage ratio cannot exceed 4.0 times, and interest coverage cannot fall below 2.5 times. Masco reported compliance. These tests use contractual adjustments, so the article’s simple debt and profit figures do not reproduce the lender calculations.
Source: Masco Form 10-Q, Note F; 2025 Form 10-K, contractual obligations, p. 27. Interest illustrations are calculations, not forecasts.
6. Leases and product warranties add to Masco’s cash commitments
Receivables grew while the factory and equipment base stayed nearly unchanged. Net property and equipment was nearly unchanged at $1,191 million versus $1,195 million at year-end. Goodwill declined by $5 million to $618 million because of currency translation. Other intangible assets fell to $194 million from $205 million; these principally represent trademarks and customer relationships. The quarterly note does not provide a complete movement schedule for that decline.
This leaves Masco dependent on getting more sales and cash from its existing business base. It also continues to commit to leased facilities and equipment. The recorded right to use operating-leased assets increased to $253 million from $233 million, while noncurrent operating-lease obligations rose to $246 million from $221 million. Those obligations are separate from the financing-debt measure used above.
The last full lease schedule, at December 2025, showed $336 million of undiscounted operating-lease payments, including $60 million due in 2026. The higher June lease balances mean that schedule is historical context, not a refreshed estimate of remaining payments. Rent commitments continue even when sales weaken.
Sources: Masco Form 10-Q, balance sheet and Note D; 2025 Form 10-K, Note F, p. 49.
Product promises also have a cost. Warranty obligations rose to $94 million from $88 million. Masco added $18 million for warranties issued during the first half and $6 million for older warranties, while settling $18 million in cash or replacement products. The additional estimate for older products shows that servicing products can cost more than first expected, even after the original sale is complete.
For litigation, recalls and regulatory proceedings, management assessed the likelihood of a material adverse effect as remote. The quarterly footnote gives no separate reasonably possible loss range. An adverse outcome could still reduce profit and cash, although management does not currently expect a material effect. The last annual disclosure also carried $88 million of uncertain tax positions including interest and penalties, without a reliable settlement timetable.
Sources: Masco Form 10-Q, Note J, p. 14; 2025 Form 10-K, Note P, p. 67, and contractual-obligations discussion, p. 27. The tax amount is a December 2025 disclosure, not a newly measured June balance.
7. Masco has financial capacity, but its next improvement must come from the business
Masco has cash and available credit, but refunds explain the quarter’s profit improvement. Paint held profit despite weaker sales, international demand provided some support, and inventory required less additional cash. Those are useful strengths. North American volume weakness and the reliance on tariff refunds remain the clearest limits on the earnings improvement.
Management’s July outlook raised full-year adjusted EPS to $4.40–$4.60 from $4.10–$4.30, citing an expected $85 million full-year net refund benefit. Reported EPS guidance was $4.21–$4.41; the $0.19 difference removes restructuring charges. Management said underlying performance remained largely consistent with its earlier outlook.
Source: Masco earnings release, July 29, 2026, outlook and Exhibit A. These are management forecasts, not actual full-year results.
The business assessment would strengthen if customer orders recover while pricing and cost savings protect margins, and if recorded receivables turn into cash. With available credit and no large bond maturity in 2026, Masco has time to execute. Its planned approximately $1 billion of 2026 repurchases, however, increases the importance of cash discipline before the 2027–2028 maturities. Successful execution means turning its brands and operational changes into more product sales and cash, while retaining enough funding capacity to meet those commitments.
Source: Masco Form 10-Q, business outlook and liquidity discussion, pp. 16 and 20–22; 2025 Form 10-K, Note K.
Reporting basis and calculation notes
Reporting basis: Masco Corporation, SEC CIK 0000062996, Form 10-Q, accession 0000062996-26-000027, filed July 29, 2026, for the quarter ended June 30, 2026. The unaudited quarterly financial statements cover Masco and its consolidated subsidiaries under U.S. GAAP. Quarter comparisons cover April 1–June 30; first-half comparisons cover January 1–June 30. Balance-sheet comparisons use June 30, 2026 and December 31, 2025. No parent-only accounts are substituted.
Sources: SEC filing index; extracted XBRL instance. Checks of the electronic filing data, called XBRL, used the 2026 U.S. GAAP reporting definitions and Masco’s additional definitions. Company totals were distinguished from segment figures, and dates and units were matched. Dollar figures are rounded to millions; the electronic data do not supply hidden precision.
Calculation notes: Earnings comparisons. Second-quarter sales growth is $1,992 million divided by $2,051 million, less one: -2.9%. Operating-profit growth is $470 million divided by $412 million, less one: 14.1%. First-half sales growth is 1.5%, reported by Masco as 2% at whole-percentage precision. Currency-adjusted first-half sales are $3,910 million less $52 million, or $3,858 million, versus $3,852 million. These calculations retain the restated Liberty segment treatment.
| Operating-profit reconciliation, US$ million | Second quarter 2025 | Second quarter 2026 | First half 2025 | First half 2026 |
|---|---|---|---|---|
| Reported operating profit | 412 | 470 | 698 | 787 |
| Add restructuring charges | 2 | 12 | 4 | 20 |
| Published rounding difference | -1 | 0 | -1 | 0 |
| Management-adjusted operating profit | 413 | 482 | 701 | 807 |
| Subtract disclosed net refund benefit | 0 | -95 | 0 | -95 |
| Calculated adjusted profit after that subtraction | 413 | 387 | 701 | 712 |
Calculation notes: All rows above are before income tax. The final row shows the subtraction used in section 1. Against reported profit alone, $470 million less $95 million equals $375 million, down 9.0% from $412 million; the first-half equivalent is $692 million versus $698 million. EPS uses the average number of shares during the quarter. The agreement to complete the accelerated repurchase also carried rights to dividends and earnings, so Masco allocated approximately $1 million to that agreement before calculating second-quarter EPS. Published EPS uses unrounded inputs.
Sources: July 29 earnings release, Exhibit A; Form 10-Q, Notes G–I.
Calculation notes: Profit to cash. Profit includes costs that do not immediately require cash. For example, depreciation spreads the cost of equipment across the years it is used, and share awards compensate employees with ownership. Masco’s condensed cash statement does not separately explain every adjustment between profit and its starting cash subtotal.
| First-half profit-to-cash check, US$ million | 2025 | 2026 |
|---|---|---|
| Consolidated net income, including minority owners | 482 | 561 |
| Depreciation and amortization | 71 | 75 |
| Stock compensation recorded in equity | 22 | 19 |
| Remaining adjustments, calculated difference | 31 | 50 |
| Published subtotal before receivables, inventory and payables | 606 | 705 |
Calculation notes: The remaining adjustments are left unassigned; the filing does not support calling them cash-tax savings or collected refunds. The inventory cash requirement improved by $111 million and the payable/accrual movement by $116 million, partly offset by $56 million more cash tied up in receivables. Those changes contributed $171 million of improvement. Together with the $99 million increase in the starting subtotal, they explain the $269 million operating-cash increase within $1 million of rounding.
| First-half cash movement, US$ million | 2025 | 2026 |
|---|---|---|
| Opening cash and cash investments | 634 | 647 |
| Operating cash flow | 148 | 417 |
| Investing cash flow | -70 | -78 |
| Financing cash flow | -344 | -433 |
| Currency translation effect | 22 | -6 |
| Rounding difference to closing cash | 0 | 1 |
| Closing cash and cash investments | 390 | 548 |
Calculation notes: The filing identifies no separate restricted-cash balance requiring addition. Balance-sheet movements can include translation and other noncash effects, so they need not equal cash-flow movements. Share retirements were recorded at approximately $596 million, while the cash statement reports $592 million of repurchases plus $5 million of excise tax. The amounts have different statement bases and independent rounding; the cash-allocation table uses the cash statement.
Source: Masco Form 10-Q, pp. 2–6, Notes G and I, and liquidity discussion.
Calculation notes: Equity and asset checks. The following table explains changes in owners’ recorded balances. Shares repurchased are retired rather than accumulated in a separate treasury-stock account.
| Equity balance, US$ million | December 31, 2025 | Net change | June 30, 2026 |
|---|---|---|---|
| Common shares at par value | 204 | -7 | 197 |
| Paid-in capital | 0 | 6 | 6 |
| Retained deficit | -688 | -161 | -849 |
| Other comprehensive income accumulated in equity | 298 | -18 | 280 |
| Minority owners’ interest | 261 | -14 | 247 |
| Total equity, published | 76 | -194 | -118 |
Calculation notes: Retained earnings record accumulated profit after distributions and certain share-retirement charges. Here, the opening $688 million deficit grew despite $531 million of profit: share repurchases charged $555 million to this account, surrendered shares another $10 million, and declared dividends $128 million. A $1 million rounding difference reconciles the closing $849 million deficit.
Paid-in capital records contributions associated with issuing shares and share awards. It received $21 million from issuance and $19 million from stock compensation, while retirements removed $35 million. A $1 million rounding difference gives the $6 million closing balance. Common-share capital fell by $8 million from retirements, partly offset by $1 million of issuance.
Currency translation principally explains the $18 million decline in other comprehensive income. Minority owners’ interest rose by $22 million of comprehensive income, then fell by $37 million of declared dividends; $1 million of rounding reconciles the closing balance. Comprehensive income includes profit and changes such as currency translation that go directly to equity.
At June 30, Masco shareholders’ components sum to negative $366 million versus the published negative $365 million because components are rounded. Adding published minority interest of $247 million to the published parent deficit gives total equity of negative $118 million. Total assets reconcile exactly on the published totals: $5,401 million = $5,519 million liabilities − $118 million equity. At year-end: $5,201 million = $5,125 million liabilities + $76 million equity. Paid dividends can differ from declared dividends; the equity table uses declarations.
Other asset balances were $77 million versus $105 million at year-end, while the combined “Prepaid expenses and other” balance was unchanged at $119 million. The quarterly filing does not separately explain the $28 million decline in other assets, so no cash-release cause is assigned to it.
The credit-loss allowance reduces receivables for amounts Masco expects it may not collect. It reconciles as $12 million opening balance + $2 million provision − $1 million write-offs = $13 million closing balance.
The warranty roll-forward is $88 million + $18 million for new warranties + $6 million for older warranties − $18 million settlements − $1 million other movements + $1 million rounding = $94 million.
Source: Masco Form 10-Q, balance sheet, equity statements and Notes B and J.
This analysis is for information and education and is not investment advice.