EX-99 2 a8-kexhibit9906302017.htm EXHIBIT 99 Exhibit


Exhibit 99
 mascoa06.jpg                                            
 
MASCO CORPORATION REPORTS SECOND QUARTER 2017 RESULTS

Key Highlights

•
Sales for the second quarter increased 3 percent to $2.1 billion; in local currencies, sales increased 4 percent
•
Operating profit for the quarter grew 7 percent to $357 million; adjusted operating profit grew 4 percent to $357 million
•
Earnings per share for the quarter grew 9 percent to $0.49 per common share; adjusted earnings per share grew 30 percent to $0.60 per common share
•
Updating our 2017 earnings per share target range to $1.93 to $2.00 from $1.90 to $2.00 per common share
•
Board announces intent to increase annual dividend by $0.02 per share to $0.42 per share, beginning in the fourth quarter

LIVONIA, Mich. (July 27, 2017) - Masco Corporation (NYSE: MAS), one of the world’s leading manufacturers of branded home improvement and building products, reported solid net sales and operating profit growth in the second quarter of 2017.

“We continued to execute on our strategic plan in the second quarter,” said Masco President and CEO, Keith Allman. “Our Plumbing Products and Decorative Architectural Products segments once again delivered strong results, and I am extremely pleased with the progress we have made in our Windows business. In our Cabinetry Products segment, we exited certain lower margin builder business and are now pivoting towards growth. Additionally, we continued our disciplined capital allocation by returning approximately $74 million to shareholders through dividends and share repurchases in the quarter.”

2017 Second Quarter Commentary

•
On a reported basis, compared to second quarter 2016:
•
Net sales increased 3 percent to $2.1 billion
•
In local currency, North American sales and international sales increased 4 percent
•
Gross margins improved 80 basis points to 35.8 percent from 35.0 percent
•
Operating margins improved 70 basis points to 17.4 percent from 16.7 percent
•
Net income was $0.49 per common share compared to $0.45 per common share
•
Compared to second quarter 2016, results for key financial measures, as adjusted for certain items (see Exhibit A) and with a normalized tax rate of 34 percent (36 percent in 2016), were as follows:
•
Gross margins improved to 35.8 percent compared to 35.2 percent
•
Operating margins improved to 17.4 percent compared to 17.1 percent
•
Net income was $0.60 per common share, compared to $0.46 per common share (which included $40 million, or approximately $0.08 per share, in debt extinguishment costs in 2016)
•
Liquidity at the end of the second quarter was approximately $1.1 billion
•
1.2 million shares were repurchased in the second quarter

2017 Second Quarter Operating Segment Highlights

•
Plumbing Products’ net sales increased 3 percent (5 percent excluding the impact of foreign currency translation), driven by North America and international growth
•
Decorative Architectural Products’ net sales increased 5 percent with growth from builders’ hardware and Behr’s pro initiative
•
Cabinetry Products’ net sales decreased 4 percent (3 percent excluding the impact of foreign currency translation) due to the previously announced exit of lower margin business in the builder channel and lower sales in our United Kingdom cabinet operation
•
Windows and Other Specialty Products’ net sales increased 4 percent. Excluding the impact of foreign currency translation, net sales increased 7 percent, driven by strong sales of windows in North America

Outlook

“As we presented during our Investor Day in May, the demand drivers underlying our business are strong and very supportive of continued, long-term growth,” said Allman. “We are confident in our plans to leverage our strong brands, industry leading positions, and our Masco Operating System to capitalize on these robust, long-term demand drivers. We are pleased with our pe

1


rformance this year, and accordingly, we are updating our 2017 earnings per share target to the range of $1.93 to $2.00. Looking forward, we are committed to achieving our 2019 earnings per share target of $2.50 that we introduced at our Investor Day. Reflecting confidence in our plans and Masco’s outlook, our Board of Directors intends to increase our annual dividend by $0.02 per share to $0.42 per share, beginning with the quarterly dividend to be paid in the fourth quarter of 2017.”

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; KraftMaid® and Merillat® cabinets; Milgard® windows and doors; and Hot Spring® 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 2017 second quarter supplemental material, including a presentation in PDF format, is available on Masco’s website at www.masco.com.

Conference Call Details

A conference call regarding items contained in this release is scheduled for Thursday, July 27, 2017 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 (855) 226-2726 (855-22MASCO) and from outside the U.S. at (706) 679-3614. Please use the conference identification number 36385520. The conference call will be webcast simultaneously and in its entirety through Masco’s website. Shareholders, media representatives and others interested in Masco may participate in the webcast by registering through the Investor Relations section on Masco’s website.

A replay of the call will be available on Masco’s website or by phone by dialing (855) 859-2056 and from outside the U.S. at (404) 537-3406. Please use the conference identification number 36385520. The telephone replay will be available approximately two hours after the end of the call and continue through August 27, 2017.

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 “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 home improvement activity and new home construction, our ability to maintain our strong brands and to develop and introduce new and improved products, our ability to maintain our competitive position in our industries, our reliance on key customers, our ability to achieve the anticipated benefits of our strategic initiatives, our ability to improve our under-performing U.S. window business, the cost and availability of raw materials, our dependence on third party suppliers, and risks associated with international operations and global strategies. 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. The forward-looking statements in this press release speak only as of the date of this press release. 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

David Chaika
Vice President, Treasurer and Investor Relations    
313.792.5500
david_chaika@mascohq.com
# # #

2
MASCO CORPORATION
Condensed Consolidated Statements of Operations - Unaudited
For the Three Months and Six Months Ended June 30, 2017 and 2016

(in millions, except per common share data)
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2017
 
2016
 
2017
 
2016
Net sales
$
2,057

 
$
2,001

 
$
3,834

 
$
3,721

Cost of sales
1,320

 
1,301

 
2,489

 
2,452

Gross profit
737

 
700

 
1,345

 
1,269

 
 
 
 
 
 
 
 
Selling, general and administrative expenses
380

 
365

 
735

 
700

Operating profit
357

 
335

 
610

 
569

 
 
 
 
 
 
 
 
Other income (expense), net:
 
 
 
 
 
 
 
Interest expense
(153
)
 
(87
)
 
(196
)
 
(143
)
Other, net
51

 
5

 
54

 
4

 
(102
)
 
(82
)
 
(142
)
 
(139
)
Income before income taxes
255

 
253

 
468

 
430

 
 
 
 
 
 
 
 
Income tax expense
84

 
90

 
147

 
148

Net income
171

 
163

 
321

 
282

Less: Net income attributable to noncontrolling interest
13

 
13

 
23

 
23

Net income attributable to Masco Corporation
$
158

 
$
150

 
$
298

 
$
259

 
 
 
 
 
 
 
 
Income per common share attributable to Masco Corporation (diluted):
 

 
 

 
 

 
 

Net income
$
0.49

 
$
0.45

 
$
0.92

 
$
0.77

 
 
 
 
 
 
 
 
Average diluted common shares outstanding
319

 
331

 
320

 
333

 
Historical information is available on our website.


3
MASCO CORPORATION
Exhibit A: Reconciliations - Unaudited
For the Three Months and Six Months Ended June 30, 2017 and 2016


(in millions, except per common share data)
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2017
 
2016
 
2017
 
2016
Gross Profit, Selling, General and Administrative Expenses, and Operating Profit Reconciliations
 

 
 

 
 

 
 

 
 
 
 
 
 
 
 
Net sales
$
2,057

 
$
2,001

 
$
3,834

 
$
3,721

 
 
 
 
 
 
 
 
Gross profit, as reported
$
737

 
$
700

 
$
1,345

 
$
1,269

Rationalization charges
—

 
5

 
2

 
6

Gross profit, as adjusted
$
737

 
$
705

 
$
1,347

 
$
1,275

 
 
 
 
 
 
 
 
Gross margin, as reported
35.8
%
 
35.0
%
 
35.1
%
 
34.1
%
Gross margin, as adjusted
35.8
%
 
35.2
%
 
35.1
%
 
34.3
%
 
 
 
 
 
 
 
 
Selling, general and administrative expenses, as reported
$
380

 
$
365

 
$
735

 
$
700

Rationalization charges
—

 
2

 
—

 
4

Selling, general and administrative expenses, as adjusted
$
380

 
$
363

 
$
735

 
$
696

 
 
 
 
 
 
 
 
Selling, general and administrative expenses as percent of net sales, as reported
18.5
%
 
18.2
%
 
19.2
%
 
18.8
%
Selling, general and administrative expenses as percent of net sales, as adjusted
18.5
%
 
18.1
%
 
19.2
%
 
18.7
%
 
 
 
 
 
 
 
 
Operating profit, as reported
$
357

 
$
335

 
$
610

 
$
569

Rationalization charges
—

 
7

 
2

 
10

Operating profit, as adjusted
$
357

 
$
342

 
$
612

 
$
579

 
 
 
 
 
 
 
 
Operating margin, as reported
17.4
%
 
16.7
%
 
15.9
%
 
15.3
%
Operating margin, as adjusted
17.4
%
 
17.1
%
 
16.0
%
 
15.6
%
 
 
 
 
 
 
 
 
Earnings Per Common Share Reconciliations
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income before income taxes, as reported
$
255

 
$
253

 
$
468

 
$
430

Rationalization charges
—

 
7

 
2

 
10

(Gain) from auction rate securities
—

 
(1
)
 
—

 
(1
)
(Gains) from private equity funds, net
(1
)
 
(1
)
 
(2
)
 
(1
)
(Earnings) from equity investments, net
(1
)
 
—

 
(1
)
 
(1
)
Loss on extinguishment of debt
107

 
—

 
107

 
—

(Gain) on sale of business
(49
)
 
—

 
(49
)
 
—

Income before income taxes, as adjusted
311


258

 
525

 
437

Tax at 34% rate (36% for 2016)
(106
)

(93
)
 
(179
)
 
(157
)
Less: Net income attributable to noncontrolling interest
13


13

 
23

 
23

Net income, as adjusted
$
192


$
152

 
$
323

 
$
257

 
 
 
 
 
 
 
 
Net income per common share, as adjusted
$
0.60


$
0.46

 
$
1.01

 
$
0.77

 
 
 
 
 
 
 
 
Average diluted common shares outstanding
319

 
331

 
320

 
333

Historical information is available on our website.

4
MASCO CORPORATION
Exhibit A: Reconciliations - Unaudited
Outlook for the Twelve Months Ended December 31, 2017



 
 
Twelve Months Ended
December 31, 2017
 
 
Low End
 
High End
Outlook
 
 
 
 
 
 
 
 
 
Net income per common share
 
$
1.81

 
$
1.88

Loss on extinguishment of debt
 
0.22

 
0.22

(Gain) on sale of business
 
(0.10
)
 
(0.10
)
Net income per common share, as adjusted
 
$
1.93

 
$
2.00

Historical information is available on our website.


5
MASCO CORPORATION
Condensed Consolidated Balance Sheets and Other Financial Data - Unaudited
June 30, 2017 and December 31, 2016


(dollars in millions)
 
June 30, 2017
 
December 31, 2016
Balance Sheet
 

 
 

Assets
 

 
 

Current Assets:
 

 
 

Cash and cash investments
$
992

 
$
990

Short-term bank deposits
144

 
201

Receivables
1,231

 
917

Inventories
850

 
712

Prepaid expenses and other
89

 
114

Total Current Assets
3,306

 
2,934

 
 
 
 
Property and equipment, net
1,080

 
1,060

Goodwill
797

 
832

Other intangible assets, net
156

 
154

Other assets
150

 
157

Total Assets
$
5,489

 
$
5,137

 
 
 
 
Liabilities
 

 
 

Current Liabilities:
 

 
 

Accounts payable
$
960

 
$
800

Notes payable
117

 
2

Accrued liabilities
615

 
658

Total Current Liabilities
1,692

 
1,460

 
 
 
 
Long-term debt
2,967

 
2,995

Other liabilities
760

 
785

Total Liabilities
5,419

 
5,240

 
 
 
 
Equity
70

 
(103
)
Total Liabilities and Equity
$
5,489

 
$
5,137

 
 
As of June 30,
 
2017
 
2016
Other Financial Data
 

 
 

Working Capital Days
 

 
 

Receivable days
52

 
50

Inventory days
63

 
57

Payable days
72

 
71

Working capital
$
1,121

 
$
965

Working capital as a % of sales (LTM)
15.0
%
 
13.3
%
 
Historical information is available on our website.

6
MASCO CORPORATION
Condensed Consolidated Statements of Cash Flows and Other Financial Data - Unaudited
For the Six Months Ended June 30, 2017 and 2016


(dollars in millions)
 
Six Months Ended June 30,
 
2017
 
2016
Cash Flows From (For) Operating Activities:
 

 
 

Cash provided by operating activities
$
536

 
$
433

Working capital changes
(381
)
 
(243
)
Net cash from operating activities
155

 
190

 
 
 
 
Cash Flows From (For) Financing Activities:
 

 
 

Retirement of notes
(535
)
 
(1,300
)
Purchase of Company common stock
(134
)
 
(168
)
Cash dividends paid
(64
)
 
(63
)
Dividend paid to noncontrolling interest
(35
)
 
(31
)
Issuance of notes, net of issuance costs
593

 
889

Debt extinguishment costs
(104
)
 
(40
)
Issuance of Company common stock
—

 
1

Employee withholding taxes paid on stock-based compensation
(27
)
 
(24
)
Increase (decrease) in debt, net
1

 
(2
)
Net cash for financing activities
(305
)
 
(738
)
 
 
 
 
Cash Flows From (For) Investing Activities:
 

 
 

Capital expenditures
(77
)
 
(79
)
Proceeds from disposition of business
126

 
—

Other, net
75

 
124

Net cash from investing activities
124

 
45

 
 
 
 
Effect of exchange rate changes on cash and cash investments
28

 
(9
)
 
 
 
 
Cash and Cash Investments:
 

 
 

Increase (decrease) for the period
2

 
(512
)
At January 1
990

 
1,468

At June 30
$
992

 
$
956

 
 
As of June 30,
 
2017
 
2016
Liquidity
 

 
 

Cash and cash investments
$
992

 
$
956

Short-term bank deposits
144

 
135

Total Liquidity
$
1,136

 
$
1,091

 
Historical information is available on our website.


7
MASCO CORPORATION
Segment Data - Unaudited
For the Three Months and Six Months Ended June 30, 2017 and 2016


(dollars in millions)
 
Three Months Ended June 30,
 
 
 
Six Months Ended June 30,
 
 
 
2017
 
2016
 
Change
 
2017
 
2016
 
Change
Plumbing Products
 

 
 

 
 

 
 
 
 
 
 
Net sales
$
949

 
$
923

 
3
 %
 
$
1,812

 
$
1,736

 
4
 %
 
 
 
 
 
 
 
 
 
 
 
 
Operating profit, as reported
$
198

 
$
188

 
 

 
$
354

 
$
317

 
 
Operating margin, as reported
20.9
%
 
20.4
%
 
 

 
19.5
%
 
18.3
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rationalization charges
—

 
4

 
 

 
—

 
6

 
 
Operating profit, as adjusted
198

 
192

 
(192
)
 
354

 
323

 
 
Operating margin, as adjusted
20.9
%
 
20.8
%
 
 
 
19.5
%
 
18.6
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
15

 
14

 
 

 
29

 
28

 
 
 
 
 
 
 
 
 
 
 
 
 
 
EBITDA, as adjusted
$
213

 
$
206

 
 

 
$
383

 
$
351

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Decorative Architectural Products
 

 
 

 
 

 
 
 
 
 
 
Net sales
$
653

 
$
620

 
5
 %
 
$
1,158

 
$
1,113

 
4
 %
 
 
 
 
 
 
 
 
 
 
 
 
Operating profit, as reported
$
141

 
$
139

 
 
 
$
242

 
$
244

 
 
Operating margin, as reported
21.6
%

22.4
%
 
 
 
20.9
%
 
21.9
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
4

 
4

 
 

 
8

 
8

 
 
 
 
 
 
 
 
 
 
 
 
 
 
EBITDA
$
145

 
$
143

 
 

 
$
250

 
$
252

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cabinetry Products
 

 
 

 
 

 
 
 
 
 
 
Net sales
$
251

 
$
261

 
(4
)%
 
$
482

 
$
497

 
(3
)%
 
 
 
 
 
 
 
 
 
 
 
 
Operating profit, as reported
$
30

 
$
34

 
 

 
$
46

 
$
58

 
 
Operating margin, as reported
12.0
%

13.0
%
 
 

 
9.5
%
 
11.7
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rationalization charges
—

 
3

 
 

 
2

 
4

 
 
Operating profit, as adjusted
30

 
37

 
 
 
48

 
62

 
 
Operating margin, as adjusted
12.0
%
 
14.2
%
 
 
 
10.0
%
 
12.5
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
4

 
5

 
 

 
8

 
10

 
 
 
 
 
 
 
 
 
 
 
 
 
 
EBITDA, as adjusted
$
34

 
$
42

 
 

 
$
56

 
$
72

 
 
 
Historical information is available on our website.









8
MASCO CORPORATION
Segment Data - Unaudited
For the Three Months and Six Months Ended June 30, 2017 and 2016


(dollars in millions)
 
Three Months Ended June 30,
 
 
 
Six Months Ended June 30,
 
 
 
2017
 
2016
 
Change
 
2017
 
2016
 
Change
Windows and Other Specialty Products
 

 
 

 
 

 
 
 
 
 
 

Net sales
$
204

 
$
197

 
4
%
 
$
382

 
$
375

 
2
%
 
 
 
 
 
 
 
 
 
 
 
 
Operating profit (loss), as reported
$
18

 
$
(2
)
 
 

 
$
24

 
$
1

 
 

Operating margin, as reported
8.8
%

(1.0
)%
 
 

 
6.3
%
 
0.3
%
 
 

 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
6

 
5

 
 

 
11

 
10

 
 

 
 
 
 
 
 
 
 
 
 
 
 
EBITDA
$
24

 
$
3

 
 

 
$
35

 
$
11

 
 

 
 
 
 
 
 
 
 
 
 
 
 
Total
 

 
 

 
 

 
 
 
 
 
 

Net sales
$
2,057

 
$
2,001

 
3
%
 
$
3,834

 
$
3,721

 
3
%
 
 
 
 
 
 
 
 
 
 
 
 
Operating profit, as reported - segment
$
387

 
$
359

 
 

 
$
666

 
$
620

 
 

General corporate expense, net (GCE)
(30
)
 
(24
)
 
 

 
(56
)
 
(51
)
 
 

Operating profit, as reported
357

 
335

 
 

 
610

 
569

 
 

Operating margin, as reported
17.4
%
 
16.7
 %
 
 

 
15.9
%
 
15.3
%
 
 

 
 
 
 
 
 
 
 
 
 
 
 
Rationalization charges - segment
—

 
7

 
 

 
2

 
10

 
 

Operating profit, as adjusted
357

 
342

 
-$336,000,000
 
612

 
579

 
-$336,000,000
Operating margin, as adjusted
17.4
%
 
17.1
 %
 
 
 
16.0
%
 
15.6
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization - segment
29

 
28

 
 

 
56

 
56

 
 

Depreciation and amortization - non-operating
4

 
6

 
 

 
8

 
10

 
 

 
 
 
 
 
 
 
 
 
 
 
 
EBITDA, as adjusted
$
390

 
$
376

 
 

 
$
676

 
$
645

 
 

 
Historical information is available on our website.


9
MASCO CORPORATION
North American and International Data - Unaudited
For the Three Months and Six Months Ended June 30, 2017 and 2016


(dollars in millions)
 
Three Months Ended June 30,
 
 
 
Six Months Ended June 30,
 
 
 
2017

2016
 
Change
 
2017
 
2016
 
Change
North American
 

 
 

 
 

 
 

 
 

 
 
Net sales
$
1,660

 
$
1,598

 
4
 %
 
$
3,071

 
$
2,948

 
4
 %
 
 
 
 
 
 
 
 
 
 
 
 
Operating profit, as reported
$
330

 
$
299

 
 

 
$
569

 
$
514

 
 
Operating margin, as reported
19.9
%
 
18.7
%
 
 

 
18.5
%
 
17.4
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rationalization charges
—

 
5

 
 

 
2

 
7

 
 
Operating profit, as adjusted
330

 
304

 
 

 
571

 
521

 
 
Operating margin, as adjusted
19.9
%
 
19.0
%
 
 

 
18.6
%
 
17.7
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
20

 
19

 
 

 
38

 
38

 
 
 
 
 
 
 
 
 
 
 
 
 
 
EBITDA, as adjusted
$
350

 
$
323

 
 

 
$
609

 
$
559

 
 
 
 
 
 
 
 
 
 
 
 
 
 
International
 

 
 

 
 

 
 

 
 

 
 
Net sales
$
397

 
$
403

 
(1
)%
 
$
763

 
$
773

 
(1
)%
 
 
 
 
 
 
 
 
 
 
 
 
Operating profit, as reported
$
57

 
$
60

 
 

 
$
97

 
$
106

 
 
Operating margin, as reported
14.4
%
 
14.9
%
 
 

 
12.7
%
 
13.7
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rationalization charges
—

 
2

 
 

 
—

 
3

 
 
Operating profit, as adjusted
57

 
62

 
 

 
97

 
109

 
 
Operating margin, as adjusted
14.4
%
 
15.4
%
 
 

 
12.7
%
 
14.1
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
9

 
9

 
 

 
18

 
18

 
 
 
 
 
 
 
 
 
 
 
 
 
 
EBITDA, as adjusted
$
66

 
$
71

 
 

 
$
115

 
$
127

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 

 
 

 
 

 
 

 
 

 
 
Net sales
$
2,057

 
$
2,001

 
3
 %
 
$
3,834

 
$
3,721

 
3
 %
 
 
 
 
 
 
 
 
 
 
 
 
Operating profit, as reported - segment
$
387

 
$
359

 
 

 
$
666

 
$
620

 
 
General corporate expense, net (GCE)
(30
)
 
(24
)
 
 

 
(56
)
 
(51
)
 
 
Operating profit, as reported
357

 
335

 
 

 
610

 
569

 
 
Operating margin, as reported
17.4
%
 
16.7
%
 
 

 
15.9
%
 
15.3
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rationalization charges - segment
—

 
7

 
 

 
2

 
10

 
 
Operating profit, as adjusted
357

 
342

 
 

 
612

 
579

 
 
Operating margin, as adjusted
17.4
%
 
17.1
%
 
 

 
16.0
%
 
15.6
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization - segment
29

 
28

 
 

 
56

 
56

 
 
Depreciation and amortization - non-operating
4

 
6

 
 

 
8

 
10

 
 
 
 
 
 
 
 
 
 
 
 
 
 
EBITDA, as adjusted
$
390

 
$
376

 
 

 
$
676

 
$
645

 
 

Historical information is available on our website.

10