The 10-K states that in the third quarter of 2024, Masco completed the divestiture of its Kichler Lighting business for $125 million, net of cash disposed. This aligns with the company's strategy of actively managing its portfolio.

In the third quarter of 2023, Masco acquired all of the share capital of Sauna360 for approximately €124 million ($136 million), net of cash acquired. This expands Masco's portfolio in the plumbing products segment.

Masco repurchased and retired 10.0 million shares of its common stock in 2024 for approximately $757 million, inclusive of excise tax. The company anticipates using approximately $600 million for share repurchases in 2025.

The 10-K mentions that Masco continues to leverage the Masco Operating System, its methodology to drive growth and productivity, and continuous improvement initiatives across the enterprise to identify additional opportunities to improve business operations.

Due to changing market conditions, Masco is experiencing lower market demand and elevated costs. The company aims to offset the potential unfavorable impact with productivity improvements, pricing, and other initiatives.

The Board of Directors declared a quarterly dividend of $0.31 per share in the first quarter of 2025 with the intention to increase the annual dividend 7 percent to $1.24 per share.

Masco's business strategy is focused on residential repair and remodeling activity and, to a lesser extent, on new home construction activity, both of which are impacted by a number of economic and other factors.

Global cybersecurity vulnerabilities, threats and more frequent, sophisticated and targeted attacks pose a risk to our information technology systems and to critical third-party information technology platforms we utilize.

Masco's sales are concentrated with three significant customers, and this concentration may continue to increase. In 2024, net sales to The Home Depot were $3.0 billion (approximately 38 percent of consolidated net sales).

Masco believes that brand reputation is an important factor affecting product selection and that it competes on the basis of product features, innovation, quality, customer service, warranty and price.

Certain of our customers sell products sourced from low-cost foreign manufacturers under their own private label brands, which directly compete with our brands. As a result of this trend, we have experienced and may in the future experience lower demand for our products.

Masco's Behr business grants Behr brand exclusivity in the retail sales channel in North America to The Home Depot. The granting of exclusivity impacts our ability to sell those products and brands to other customers and can increase the complexity of our product offerings and our costs.

Due to changing market conditions, we are experiencing, and may continue to experience, lower market demand for our products. We also have been experiencing, and may continue to experience, elevated commodity and other input costs, as well as employee-related cost inflation. We aim to offset the potential unfavorable impact of our elevated costs and lower demand for our products with productivity improvements, pricing, and other initiatives.

Capital expenditures for 2024 were $168 million, compared with $243 million for 2023. The decrease in capital expenditures in 2024 was primarily due to capacity expansion plans in our Plumbing Products and Decorative Architectural Products segments in 2023.

Many of the suppliers we rely upon are located in countries outside of the United States. The differences in business practices, shipping and delivery requirements and costs, changes in economic conditions and trade policies and laws and regulations, together with the limited number of suppliers available to us, have increased the complexity of our supply chain logistics and the potential for interruptions in our production scheduling.

Within our Plumbing Products segment we develop connected water products that enhance the experience with water in homes and businesses.

We rely on many on-site and cloud-based information systems and technology to process, transmit, store and manage information to support our business activities. We may be adversely impacted if these information systems breakdown, fail, or if delays in system upgrades or replacements stretch those systems beyond support by third-party service providers, including cloud platform providers.

We continue to invest in new technology systems throughout our company, including implementations of and upgrades to critical systems at our business units. System implementations and upgrades are complex and require significant management oversight.

Our capital allocation strategy includes reinvesting in our business, maintaining an investment grade credit rating, maintaining a relevant dividend and deploying excess free cash flow to share repurchases or acquisitions.

The Board of Directors declared a quarterly dividend of $0.31 per share in the first quarter of 2025 with the intention to increase the annual dividend 7 percent to $1.24 per share.

Consistent with past practice and as part of our long-term capital allocation strategy, outside of any potential acquisitions, we anticipate using approximately $600 million of cash for share repurchases in 2025.

Stakeholders are increasingly scrutinizing companies' ESG practices, and stakeholders' expectations regarding ESG practices are diverse and rapidly changing.

We may not be able to align our ESG practices with such evolving expectations within the timeframes expected by stakeholders or without incurring significant costs.

We may not be able to achieve our aspirational goals related to our ESG initiatives, which are and may continue to be impacted by many complexities and variables, such as renewable energy infrastructure and availability, a challenging economic environment, changes to our operations and changes to our portfolio of businesses via acquisitions or divestitures.

Due to changing market conditions, we are experiencing, and may continue to experience, lower market demand for our products.

Our results of operations and financial position are also impacted by changes in currency exchange rates. Unfavorable currency exchange rates, particularly the euro, the Chinese renminbi, the Canadian dollar, the British pound sterling and the Mexican peso, have in the past adversely impacted us, and could adversely impact us in the future.

Extreme weather events, such as severe winter and other storms, hurricanes, fires, floods, tornados and droughts, as a result of climate change or other factors, have negatively impacted and may in the future negatively impact our business.