<SEC-DOCUMENT>0001193125-12-148008.txt : 20120515
<SEC-HEADER>0001193125-12-148008.hdr.sgml : 20120515
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ACCESSION NUMBER:		0001193125-12-148008
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20120403

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			MASCO CORP /DE/
		CENTRAL INDEX KEY:			0000062996
		STANDARD INDUSTRIAL CLASSIFICATION:	MILLWOOD, VENEER, PLYWOOD & STRUCTURAL WOOD MEMBERS [2430]
		IRS NUMBER:				381794485
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		21001 VAN BORN RD
		CITY:			TAYLOR
		STATE:			MI
		ZIP:			48180
		BUSINESS PHONE:		3132747400

	MAIL ADDRESS:	
		STREET 1:		21001 VAN BORN ROAD
		CITY:			TAYLOR
		STATE:			MI
		ZIP:			48180

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	MASCO SCREW PRODUCTS CO
		DATE OF NAME CHANGE:	19731025
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 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">April&nbsp;3, 2012 </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2">Mr.&nbsp;John Hartz </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Senior Assistant Chief Accountant </FONT></P>
<P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Division of Corporation Finance </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">United States
Securities and Exchange Commission </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">100 F Street NE </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2">Washington, D.C. 20549-0404 </FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="5%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Re:</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Masco Corporation</B> </FONT></TD></TR></TABLE>
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<TD WIDTH="5%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>&nbsp;</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Form 10-K for the year ended December&nbsp;31, 2011</B> </FONT></TD></TR></TABLE>
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<TD WIDTH="5%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>&nbsp;</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Filed February&nbsp;21, 2012</B> </FONT></TD></TR></TABLE>
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<TD WIDTH="5%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>&nbsp;</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>File No.&nbsp;1-5794</B> </FONT></TD></TR></TABLE> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Dear
Mr.&nbsp;Hartz: </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">I am writing in response to your comment letter dated March&nbsp;22, 2012, relating to the above referenced Form 10-K.
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">For your convenience, the text of each comment is stated in full in italicized text, and our response follows each comment. </FONT></P>
<P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>Form 10-K for Fiscal Year Ended December&nbsp;31, 2011 </U></B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B><U>Financial Statements </U></B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>Note A- Accounting Policies </U></B></FONT></P>
<P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>Customer Promotion Costs, Page 48 </U></B></FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>1.</I></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>We note your accounting policy regarding cooperative advertising arrangements and your treatment of such costs as a reduction of revenue. Please refer to ASC 605-50,
(in particular, example 3 in ASC 605-50-55-14) and help us better understand your accounting for cooperative advertising arrangements. Please also quantify for us the amount you have recognized in your financial statements for each period presented.
</I></FONT></TD></TR></TABLE> <P STYLE="margin-top:18px;margin-bottom:0px; margin-left:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>Response</U>: </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%"><FONT
STYLE="font-family:Times New Roman" SIZE="2">For the calendar years ended December&nbsp;31, 2011, 2010 and 2009, we recorded as a reduction of revenue costs related to cooperative advertising programs of approximately $107 million, $105 million and
$109 million, respectively, or approximately 1.4% of reported sales, which is not considered significant. Cash consideration given to a customer by a vendor is presumed to be contra revenue or a reduction of selling prices. That presumption is
overcome when both of the conditions in ASC 605-50-45-2 are met. These include: </FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">a.</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">The vendor receives an identifiable benefit in exchange for the consideration. </FONT></TD></TR></TABLE>

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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">b.</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">The vendor can reasonably estimate the fair value of the benefit identified under condition a. </FONT></TD></TR></TABLE>
<P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">Masco Corporation (the &#147;Company&#148;) has cooperative advertising arrangements with a number of national retail chains whereby the
Company offers a discount, in return for local, regional and/or national advertising expenditures. For those arrangements where the customer does not submit evidence that they are using the advertising allowance in accordance with the terms of the
contract, the Company cannot demonstrate it is receiving an identifiable benefit from its customers as required under ASC 605-50-45-2. Therefore, the Company properly recognizes the cost of these agreements as a reduction of revenue. </FONT></P>
<P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>Note M &#150; Employee Retirement Plans, page 71 </U></B></FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>2.</I></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>We note your disclosure which indicates you participate in 20 regional multi-employer pension plans. Please clarify for us your statement which indicates &#147;none
of the plans are considered significant.&#148; In that regard, please tell us how you have considered the disclosure requirements contemplated in ASU 2011-09 (Subtopic 715-80). </I></FONT></TD></TR></TABLE>
<P STYLE="margin-top:18px;margin-bottom:0px; margin-left:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>Response</U>: </FONT></P>
<P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">As noted in footnote M, the Company&#146;s contributions to multi-employer pension plans were $3 million, $3 million and $4 million for
the years ended December&nbsp;31, 2011, 2010 and 2009, respectively. The Company&#146;s conclusion that none of the plans were considered significant was based upon the estimated aggregate withdrawal liability of approximately $32 million and our
estimate of our participation in the plans as evidenced by the Company&#146;s contributions as a percent of the total contribution which ranged from approximately .03% to 1.08% over the 20 plans. As such, the Company reviewed the disclosure
requirements of ASU 2011-09 (Subtopic 715-80) and determined that the plans are not significant to the Company&#146;s financial statements taken as a whole and no further disclosure was warranted. </FONT></P>
<P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>Note O &#150; Segment Information, page 78 </U></B></FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>3.</I></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>We note you have various products and brands within each of your reportable segments. Please revise future filings to disclose revenues by product line for each
reportable segment as required by ASC 280-10-50-40. </I></FONT></TD></TR></TABLE> <P STYLE="margin-top:18px;margin-bottom:0px; margin-left:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>Response</U>: </FONT></P>
<P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">ASC 280-10-50-40 requires the Company to report the revenues from external customers for each product or each group of similar products if
its segments are not reported in that manner. ASC 280 does not define &#147;similar&#148; products and services. Therefore, the determination of whether two or more products are similar and can be combined for purposes of the entity-wide disclosures
depends on the facts and circumstances of the </FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">2 </FONT></P>


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 <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">
particular entity. The Company discloses the types of products within each of the Company&#146;s segments, and in management&#146;s judgment, the products within each of the Company&#146;s
segments are sufficiently similar such that their grouping within the Company&#146;s segment disclosure satisfies the requirements of ASC 280-10-50-40. The Company considers the products within its segments to be similar in the most important
respects, including product characteristics and end-use, as well as the channels that bring the products to the consumer, as described below: </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><U>Cabinets and Related Products</U> &#150; principally includes assembled and ready-to-assemble kitchen and bath cabinets; home office workstations; entertainment centers; storage products; bookcases;
and kitchen utility products. The Company considers these products to be similar in that the products are principally used in the home for storage and sold to retailers and home centers, dealers, and builders. </FONT></P>
<P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>Plumbing Products</U> &#150; principally includes faucets; plumbing fittings and valves; showerheads and hand showers; bathtubs and
shower enclosures; and spas. The Company considers these products to be similar in that they facilitate the distribution, use and/or consumption of water and are sold to retailers and home centers, dealers, and builders. </FONT></P>
<P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>Installation and Other Services</U> &#150; principally includes the sale, installation and distribution of insulation and other
building products. The Company considers these products to be similar in that the products are principally used in the new home construction market and principally sold to new home builders and contractors involved in the new home construction
market. </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>Decorative Architectural Products</U> &#150; principally includes paints and stains; and cabinet, door, window and
other hardware. The Company considers these products to be similar in that the products are principally used to complement the design or architectural features of the home color, texture or style and are principally sold through similar channels
such as big box retailers and home centers. </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>Other Specialty Products</U> &#150; principally includes windows, window frame
components and patio doors; staple gun tackers, staples and other fastening tools. The Company acknowledges that the end use of a window and/or a patio door is not similar to that of a staple gun tacker. In addition, the distribution channels are
somewhat different as windows are principally sold to new home construction and the repair and remodel market, including home repair contractors and dealers with limited sales to retailers, while staple gun tackers are principally sold to retail.
However, the Company concluded that reporting the individual revenues of these two product lines would not be meaningful to the financial statements, as total segment revenue represents approximately 8% of consolidated revenue, which is not
considered significant. </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">Based on the foregoing, the Company believes its reportable segment disclosures satisfy the provisions
of ASC 280-10-50-40. </FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">3 </FONT></P>


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 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">In connection with our responses to the Staff&#146;s comments, I acknowledge, on behalf of Masco
Corporation, that: </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">Masco Corporation is responsible for the adequacy and accuracy of the disclosures in its filings;
</FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">Staff comments or changes to disclosure in response to staff comments do not foreclose the Commission from taking any action
with respect to the filing; and </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">Masco Corporation may not assert staff comments as a defense in any proceeding initiated by
the Commission or any person under federal securities laws of the United States. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">If you have any further questions or comments, please
contact me at (313)&nbsp;792-6044. </FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P><DIV ALIGN="right">
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<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Sincerely,</FONT></TD></TR>
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<TD HEIGHT="16"></TD></TR>
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<TD VALIGN="top" STYLE="border-bottom:1px solid #000000"> <P STYLE="margin-top:0px;margin-bottom:1px"><FONT STYLE="font-family:Times New Roman" SIZE="2">/s/ John G. Sznewajs</FONT></P></TD></TR>
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<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">John G. Sznewajs</FONT></TD></TR>
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<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Vice President, Treasurer and</FONT></TD></TR>
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<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Chief Financial Officer</FONT></TD></TR>
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 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">4 </FONT></P>

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