MASCO CORP /DE/ - Annual Report 2016

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM ll - K

FOR ANNUAL REPORTS OF EMPLOYEE STOCK

PURCHASE, SAVINGS AND SIMILAR PLANS

PURSUANT TO SECTION 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

( Mark O ne ) :
x	ANNU A L RE PORT PURSUA NT T O SE C T I ON 1 5 ( d ) O F T H E S E CURITI E S E X CH ANG E ACT OF 1 93 4
F o r the fis c al year ended December 31 , 2015
OR
¨	TRANSITION REP O RT PUR S UANT TO SE C TION 15 ( d ) OF THE S ECU RIT I E S EX CHA NGE A C T O F 1934
For the t ransit i on p e riod from ___ to _____
C ommission file number 001-05794
A.	Full title of th e p l an and the addres s o f the plan, if di ff er e nt fr o m that of the issuer named below :
M asco Cor p o ration H o urly 4 0 1 ( k ) Plan
B.	Name of issuer o f th e se cu rities held pu r suan t t o t he pla n an d the address o f its prin ci pal ex e cutive office :
Masco Corporation
21001 Van Born Road
Taylor, Michigan 48180

MASCO CORPORATION HOURLY 401(k) PLAN

TABLE OF CONTENTS

	Pages
Report of Independent Registered Public Accounting Firm	3
Financial Statements:
Statements of Net Assets Available for Benefits at December 31, 2015 and 2014	4
Statement of Changes in Net Assets Available for Benefits for the year ended December 31, 2015	5
Notes to Financial Statements	6
Supplemental Schedule:
Schedule H, line 4i - Schedule of Assets (Held at End of Year)	12
Note: Other schedules required by Section 2520.103-10 of the Department of Labor's Rules and Regulations for Reporting and Disclosure under ERISA have been omitted because they are not applicable.

Report of Independent Registered Public Accounting Firm

To the Trustee and Participants of

Masco Corporation Hourly 401(k) Plan

We have audited the accompanying statements of net assets available for benefit s of Masco Corpo r ation Hourly 401(k) Plan (the "Plan") as of December 31, 2015 and 2014 , and the related statement of changes in net assets available for benefits for the year ended December 31, 2015 . These financial statements are the responsibility of the Plan ' s mana g ement . Our responsibility is to express an opinion on these finan ci al stat e ments based on our aud i ts .

We conducted our audits in accordance with the standards of the Public Company Acco u nting Oversight Boa r d (United States). T h ose standards require that we plan a nd perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. We were not engaged to perform an audit of the Plan ' s interna l control over financia l reporting . Our audit s included cons i derati o n of internal control over financia l reporting as a basis fo r design i ng audit procedures that are appropriate in the ci r cumstances, but not for the purpose of expressing an opin i on on the effectiveness of the Plan ' s internal control over financ i al reporting . Accordingly , we express no such opinion . An audit al s o includes exam in ing , on a t e st basis , evidence supporting the amounts and disclosures in the financial statements , assessing the accounting principles used and s i gnificant estimates made by management , as well as evaluating the overall financial statement pres e ntation . We believe that our audits provide a reasonable basis for our opin i on .

In our opinion , the financial statements referred to above present fair l y , in al l material respects , the net assets available fo r benefits of Masco Corporat i on Hourly 401( k ) P l an as of December 31, 2015 and 2014 , and the changes in net asset s avail ab le f or benefits for the year ended December 31, 2015 in conformity with accounting principles generally accepted in the United States of America .

The s upplem e ntal i nformation in the accompanying schedule , Schedule H , Line 4i Schedule of Assets (Held at End of Year) as of December 31, 2015 has been subjected to aud i t procedures performed in conjunction with the audit of Masco Corporation Hourly 401(k) Plan ' s fin a ncial statements. The supplement al information is pre s ented for purp o ses o f addit i onal analysis and is not a requi r ed part of the basic finan c ial statements but include supplemental info r mation required by the Department of Labor ' s Rules and Regulations fo r Reporting and Disclosure under the Employee Retirement Income Security Act of 1974 . The supplementary information is the respon s ibilit y of the P lan ' s management . Our audit procedures included determining whether the supplemental information reconciles t o the basic financial statements or the unde rl ying accounting and other records , as applicable , and performing procedures to test the completeness and acc u racy of the information presented in the suppleme n tal info r mation . In forming our opinion on the s u pplemental information in the accompanying schedule , we evaluated whether the supplemental information , includ i ng its form and content , is presented in conformity with the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirem e nt In co me Secu r ity Ac t of 1974. In our opinion , the supplemental information referred to above is fairly stated , in all material respects , in relation to the basic financial statements taken as a whole .

/s/ Grant Thornton LLP

Southfield , Michigan

Jun e 24 , 2016

MASCO CORPORATION HOURLY 401(k) PLAN

STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS

December 31, 2015 and 2014

	2015	2014
ASSETS
Investments, at fair value:
Collective trust funds	$ 108,197,069	$ —
Mutual funds	98,128,548	183,196,798
Stock funds	2,003,670	2,240,428
Brokerage account	368,145	305,828
Total investments	208,697,432	185,743,054
Receivables:
Notes receivable from participants	17,261,140	11,691,845
Participant contributions	126	114,033
Employer contributions	3,509,825	68,107
Total receivables	20,771,091	11,873,985
Net Assets Available for Benefits	$ 229,468,523	$ 197,617,039

The acco mpanying notes a re an integr al part o f t he financial stat e m e n ts .

MASCO CORPORATION HOURLY 401(k) PLAN

STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS

For the year ended December 31, 2015

Additions:
Investment activity:
Net depreciation in fair value of investments	$ (6,997,861	)
Interest and dividend income	7,627,108
Total investment activity	629,247
Participant contributions	12,393,604
Participant rollover contributions	412,677
Employer contributions	10,108,883
Interest income on notes receivable from participants	519,052
Total additions	24,063,463
Deductions:
Benefit payments	(20,145,990	)
Other, net	(39,905	)
Total deductions	(20,185,895	)
Transfers:
Net transfers into the Plan (Note A)	27,973,916
Net increase	31,851,484
Net assets available for benefits:
Beginning of year	197,617,039
End of year	$ 229,468,523

The accompa nying note s are an i ntegral pa r t o f t h e fin a n ci a l statements.

MASCO CORPORATION HOURLY 401(k) PLAN

NOTES TO FINANCIAL STATEMENTS

A. DESCRIPTION OF PLAN

The fol l o w i ng description of the M asco C o rporat i on ( " Company " ) Hourly 40 1 (k) Plan ( " Plan " ) pr ovides o nly general inf o r mat i o n . Part i c i pants sh o uld refer to the Plan document f or a m o re c o mplete descri pti o n of the Pl a n ' s pro v i sions .

G e n e ral . Th e P l a n is a defi ne d con t ri bution plan cov eri n g h o ur l y emp l o y ee s at c e rtain div isi on s and subsidiaries o f the Compan y . El i g i ble employees m ay pa r t i c i pate in t h e Pl an on the i r da t e o f h ire . The P la n i s subj e ct t o t h e pro v isi ons of th e Emp lo ye e Re ti re men t I n co me S e curit y Ac t o f 1974 , as amend e d ( " ERI S A " ) .
Contri butions . Particip ant s m ay co ntribut e u p to 5 0 percent o f th e ir p retax annual co mpensation , as defi ne d i n th e Pl an. A l l employees who a re e ligibl e to pa rticipa t e und e r th i s Pl a n a nd who ha v e a ttai ned the age of 50 bef o r e the clo se of the pla n y ear s hall be eligib l e to make c a tch - u p con trib utions . Pa r t i c ip ants m ay also mak e roll ov er cont ri bu t i ons representing dist r ibutions from i ndivid u al IRAs , SEP s , 4 03(b) a n d 457 p l ans o r o t her e m plo y e r s ' tax qual ifie d pl a ns. The Compan y m ak es m atchi ng and/ or pr o f i t shar i ng cont ri buti o ns in ac c o rdanc e with t h e p r ov ision s of the P lan . These Compan y co ntr i buti ons , i f applicabl e , v ar y by div ision or subs i d i a ry and are i nvested purs ua n t t o the partic i pant ' s in v es t men t elect i on . Cont r ibu tio ns a re s ubject to ce rtai n Interna l Re v e nu e Serv i ce ( " IRS " ) l i mit ati ons . P arti c ipant s ma y direc t co ntrib ut i ons i n one pe r c ent in c r e m ents in a ny of the variou s inves tment option s. T hese options i nc l ud e pro f ess i ona ll y m a naged mu t ual fu nds , collective trust funds, sto c k f u nds a nd a b r o ker age account which all ows partici p a nts to buy , s e l l or trade m os t pu b l i c l y l is t ed comm on s tocks , co rporate and government bond s o r c e r t i ficates o f depos i t ; these o pti ons vary in t h eir resp ec t i ve strat egi e s , risks a n d g o a ls . Part i cipants m ay ch a nge thei r inv est m e nt o pt i o n s d aily . At December 31, 2015, profit sharing employer contributions receivable totaled $3,470,733.
P a r ticipa nt A ccoun ts . Each a ct i ve particip a nt ' s a cco u nt is cr ed ited with the pa rt ic i pan t ' s cont ri buti on s a n d a l loc a tions o f ( a ) th e C ompany ' s cont ri butions ( i f app li cab l e ) , and ( b ) investm e n t earnings , as defined in the Pl an . P lan adm i n istra ti v e ex p enses ar e paid b y the Company and n ot charg e d to participa nts ' account s . Ce rt ai n expense s m a y be incurred by i n d ivid ua l part ic ipant s fo r special ser v i ces re l a tin g t o the i r accounts . Thes e costs are charg e d di r e c tly to the i n di vidual part i c i pa n t ' s account . T he ben efit to wh i c h a pa r t i ci pant i s entitl ed is the be n ef it th a t can be prov i d ed fr om the p articipa nt ' s v es te d account .
V es ting a n d F orf eited Employer Con tribution s . Par t icipants are i mme di ate l y vest e d in th ei r cont r ibutions pl u s ac tual earning s ther eo n . Partici pa nts ar e also i mme d i ately v e sted in the C om pa n y match i ng cont r ibuti on plus earnin gs thereon . V esting in Company p r o fit s haring c o ntr i bu t i ons oc cu rs a fter th r ee yea rs of s ervice comm enci ng at d a t e of h i re . A t December 31, 2015 and 2014 , f orfe ited non vested e mployer contribu t ions tot a l e d $218,221 and $34,769 , r espec t ively . All forfeit e d amoun ts wer e us e d in each s uccee din g y ea r t o red uce employer co nt rib ution s .
Voting R ights . Each parti cipant w h o has an i nterest i n either the Masco Corporation Company S toc k Fund or the TopBuild Corp. Stock Fund is enti tle d to ex ercise vot i ng r ights attributa b l e to the sh ares alloc ated to his or he r Company Stoc k Fund account and i s n ot i fied b y t he Tru s te e ( Fidelit y Manag e ment Tru st C o m pany ( "F idel i ty " ) as defi ne d by t he Plan ) p r i o r to th e tim e that such rights are to be exe r c ise d . If t he Tru s te e d oe s n o t re c ei v e timely i nstruct i on s , the Trustee its e l f o r by proxy sha ll vot e all s uch shares in t he s a me rat i o as the share s with respe ct to wh i ch inst r u ctions were r ec ei v ed fr o m pa r ti ci p a nts .
Notes Re ce i v a ble from P arti c i pants . Gen erally, par tic i pant s may borrow fr o m their accoun t a m in i m u m of $ 1 , 0 0 0 up t o a m axim u m eq u al t o the lesser of $50,000 or 5 0 perc ent o f their ves t e d ac co unt bala nce at th e t ime of the loan . Loan terms g en e rally range fr om 1- 5 ye ars, or up to 15 yea rs in lim ite d circumstance s . The loans a re co ll ate rali z ed b y the b al ance in t h e participant ' s account a n d ge n era lly bear inte rest at a r a t e equa l to the Prime R a t e on t he la s t bus i n ess da y of t he month pri or to the da te o f the l oa n a pplicati on . Princip al a n d interest ar e pai d ratably t h rou g h pa y r o ll dedu c ti on s .
Pay m e nt of Be nefit s. G e ne r ally , afte r separa tion from service due to terminati o n, de a t h , disabilit y o r r et ir e m ent , a p a r t i cip a nt may elect t o receive an a mo un t e qual to the va l u e of th e partici pant ' s ve sted interest in his or her a c c o u nt i n either a single l ump-sum amoun t o r in an nual installment s over a peri o d n o t to exceed fi v e ye ar s. In - ser v i c e an d h a rdship withdrawa ls are distrib uted in a s i ngle p ayment .

MASCO CORPORATION HOURLY 401(k) PLAN

NOTES TO FINANCIAL STATEMENTS, Continued

A. DESCRIPTION OF PLAN (Concluded)

Transfe r s. On March 20, 2015 , certai n participants ' a ccounts of t he Ma sco Corpora tion Fut ure Ser v i ce P r ofit Sh ari ng P l an and Masco Corpora t ion M aster Defi ned Cont r i butio n Plan were mer ge d into the P l a n . Pa r t i c i pants i n the Masco Corpo ratio n Future Servic e Pr ofit Sharing P l an and Masco Corporat i on Maste r Defined C ontribut i on Plan b e c a me participants in the P l an . As a result of the merger, transfers of net assets into the Plan totaled $82,338,309. On June 30, 2015, the Company completed the spin off of its Installation and Other Services business into an independent, publicly-traded company named TopBuild Corp. ("TopBuild") through a tax-free distribution of the stock of TopBuild to the Company's stockholders. Upo n TopBu ild ' s sepa ration f rom the Company , certain part i cip ant s ' account balanc es were trans ferred out of the Plan i nto a newly create d p la n for TopBuild em p loyees . As a result of the spin off, transfers of net assets out of the Plan totaled $55,101,229. During 2015, other transfers of net assets into the Plan totaled $736,836. Total transf ers o f net ass et s into th e Plan am o un ted t o $27,973,916 f o r the ye ar ended December 31, 2015 .

B. S UMMARY OF SIGNIFICANT ACCOUNTING POLICIES

T he following i s a summ ar y of sig n i fic a nt acco u nt ing po li c i e s ( in a cco rdan ce w it h acco unting pri nciples gen erally ac cepted in the Un ited State s o f Am e rica ( " GAAP " ) f ollow ed in the p re parat i o n of t he s e f i nancial state m e nts .

Basis o f Ac co un t in g. The accompa ny in g f i n a n c ial st a t e m ent s are prepared on t he ac crual basis o f ac counting.

Use of Est imates. The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of additions and deductions during the reporting period. Actual results could differ from these estimates and assumptions.

Risks a n d Uncertainties. The Pla n provides for v ar i ous in v estment options in collective trust funds, mut ua l fund s an d oth er i nvestm ent secu r i tie s . Inv es tment sec uri ties a r e exposed to var ious r i sk s , i ncludin g interest rate , ma r ket a n d credit risks . Due t o the lev e l of ris k ass o ciat e d with ce r tain collective trust funds, m utu a l fun d s and in v estment securities and th e l e v el o f un c e r ta i nty related t o c hanges i n the val u e o f in v es t ment securiti e s , it is reasonab l y poss i b l e t hat changes in risks in the n e ar term could mater ia lly affec t p artic ipan ts ' account ba l ance s a n d t h e am ounts re p orted in t he statem ents o f n et a ssets avai lable f o r benefits a nd the st at ement o f changes in net asse ts a vai l a b l e for ben efi ts .

I n v estment V a l uat i on and Income R e co gnition. I nvest ments are s ta ted at fa i r va l ue as dete r min e d by Fide lit y Pric ing a nd Ca sh M anagem ent Servic es , Inc . Mutual funds and common stock are valued u s ing quoted market p ri ces at December 31, 2015 a nd 2014 . The fair values of the collective trust funds are determined on a daily basis by the Trustee using the net asset value ("NAV") of units held of the funds. The NAV is based on the fair value of the underlying investments held by each collective trust fund less its liabilities.

I n v es tm e nt transact i ons are r e fle c te d on a t ra d e - d a te ba si s . Interest inc o me i s recogni ze d on the accrua l ba si s of accounting . Div i dend income is reco rde d on th e e x - div id e nd da t e . Income f rom othe r sec uri t i e s i s r eco rde d as e arned on a n accrual bas is .

The Plan p r esents in the stat e ment of ch a nges i n n e t assets available for benef i ts t he ne t a pprec i at i o n ( depreciati o n ) in the fair v a lue o f it s in v estm e nts , which consist s of the rea li zed ga in s or losses and the un rea lized a ppr eciatio n (d epre ci a ti on) of th ose inve s tments .

Notes R ece ivable f r om Participan t s. Notes r ecei v ab l e f r om pa r tic i pants are measu r ed at their unp a id princi pa l balanc e p l us any a ccrued bu t u npaid in tere s t . I nterest income is r ec orded on the a c cru al b as i s . De linquen t notes rec e ivab l e fr o m part i c ip ants ar e r ecorde d a s b ene fi t paymen ts b ased upon the term s of the P la n.

Payment of Benefit s. B enef i t s ar e r eco r d e d when p a i d.

MASCO CORPORATION HOURLY 401(k) PLAN

NOTES TO FINANCIAL STATEMENTS, Continued

B. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Concluded)

Recently Issued Account i n g Prono unc e me n ts. I n May 2015, th e Fi nanc ial Acc ount i ng S t an da r ds B o ard ("FASB") i ss ue d Accounting Standards Update 2015-07 ("ASU 2015-07") , "Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent)", which exempts investments measured using the NAV (or its equivalent) practical expedient in ASC 820, Fair Value Measurement, from categorization within the fair value hierarchy. The guidance is effective for the Plan for fiscal years beginning after December 15, 2015 and shall be applied retrospectively to all periods presented. The Plan's administrator is currently evaluating the impact adoption of the standard will have on the Plan's financial statements.

In July 2015, th e FASB i ss ue d Accounting Standards Update 2015-12 ("ASU 2015-12") , "Plan Accounting: Defined Benefit Pension Plans (Topic 960), Defined Contribution Pension Plans (Topic 962), and Health and Welfare Benefit Plans (Topic 965): Part (I) Fully Benefit-Responsive Investment Contracts, Part (II) Plan Investment Disclosures, Part (III) Measurement Date Practical Expedient". This three-part standard simplifies employee benefit plan reporting with respect to fully benefit-responsive investment contracts and plan investment disclosures, and provides for a measurement-date practical expedient. We retrospectively adopted Part II of the new standard as of December 31, 2015. As a result of the retrospective adoption of Part II of this standard, we removed the disclosures for individual investments greater than 5 percent of net assets, the aggregation of net appreciation (depreciation) by type of investment in the Plan's investments disclosure (Note C), and grouped our investments only by general type, as opposed to disaggregating by nature and risk (Note D). Parts I and III are not applicable to this Plan.

C. INVESTMENTS

During 2015 , t he Pl an ' s in v estmen t s ( in c luding realized gains an d l osse s on investments sold during the year, as well as unrealized appreciation (depreciation) on investments held at year-end) depreciated in value by $6,997,861 .

At December 31, 2015 , the s tock funds were mad e u p o f the Masco Corporat io n Company Stock Fund totaling $1,801,139 (which was comprised exclusively of Masco Corporation Common Stock), and the TopBuild Corp. Stock Fund totaling $202,531 . At December 31, 2014 , the stock funds were mad e u p exclusively of Masco Corporation Common Stock Fund, which was comprised o f Masco Corporat io n Co mmon Sto c k t ota ling $2,202,713 , and cash and m o ne y market investments o f $37,715 .

D. FAIR VALUE MEASUREMENTS

Accounting Poli cy . T he Plan foll ows f a i r v alue g uidan ce ( A SC 820) that defin es fa ir value , es tab l ishes a fra mewor k for measuring f a ir val u e and expa nds d i sclosures about f air v alue meas urem en ts . T h e g uida nce d efin e s fair val ue as "t h e price tha t wou l d be received to se ll an a sset or p aid to tr ansf e r a li ab i l ity in an orderl y t r an s act i on bet w ee n mark e t part icipa n ts at the m e as u r e ment dat e ." Fur t her , i t de f ine s a fai r v al u e h i era r ch y , a s follo w s : L e v e l l inpu ts as qu ote d p ri c es in a c ti ve ma rket s fo r ide nt i cal asset s or liab iliti e s ; Leve l 2 inp u t s as ob ser v a b le inpu t s ot h e r than Le vel 1 p rices , such as quot e d ma rket prices fo r s imi l ar assets o r liab i lities o r oth e r i n p u ts that ar e observ able or can be c o rroborated b y ma rk et data; and Le ve l 3 i n p ut s as unobser v abl e inputs that are supported by little or no market act ivi t y a nd t hat are fi na n c i a l instruments whose value is determin e d u s ing pricing m o d e ls or ins t rumen t s for which the determination of fa ir v al u e r e quires si gni f icant m a n a g e me nt judgment o r e stimation .

A desc ri ption of the valua ti on metho dol o gi e s u sed fo r assets m e asur ed at f air value is as follows:

Collective trust funds: Valued based on NAV, which approximates fair value as of December 31, 2015 . Such basis is determined by reference to the respective fund’s underlying assets, which are primarily marketable equity and fixed income securities.

Mutual funds: Valu e d at the daily c losing price as rep o rt e d by the fund . Mutual funds held by th e Plan are open - end mutual fun d s that are r e gistered with the S ecurities and E xc ha nge Commissi o n. T hese funds are r equi r ed to publish t he ir d a ily NAV and t r a n s ac t at tha t pric e . Th e m u tual funds h eld b y the Plan ar e de e med to be acti v e ly tr aded .

Stock funds : V al ue d at t he c l o s ing p r ice re p o rted on the a ctive market on whi c h th e individual s ec u ri ties are t ra d e d .

MASCO CORPORATION HOURLY 401(k) PLAN

NOTES TO FINANCIAL STATEMENTS, Continued

D. FAIR VALUE MEASURMENTS (Continued)

B r ok erage acc ount : Part icipant dir ected inve stments coul d inclu de c o mm on st ocks , mutual funds, c o rpo rate o r go v er nment b o nds o r other i nvestment s.

T h e methods desc r ib e d ab o v e m a y pr oduc e a f air value ca lcu lat io n that may not be i ndicative of n et r ealizable va lu e or re flective of f ut ure fair values . Furthermore , while t h e Pla n belie v e s i ts va l uation meth o d s are appropriate and consistent with oth er market partici p ants , the use of dif f er e nt methodologies or assumptions to d e term in e the fair v alue of certain fina nc i a l i nstruments cou l d result in a dif fe re nt fair value me a su r e m e nt at the rep o r t in g da t e.

T h e f ollowing table sets fort h by l ev e l , w it hi n t h e fair value hierarchy , th e P l a n 's assets at fair value as o f December 31, 2015 and 2014 .

	Assets at Fair Value as of December 31, 2015 — Level 1	Level 2	Level 3	Total
Collective trust funds	$ —	$ 108,197,069	$ —	$ 108,197,069
Mutual funds	98,128,548	—	—	98,128,548
Stock funds	2,003,670	—	—	2,003,670
Br ok e r a ge account	368,145	—	—	368,145
Total assets at fair value	$ 100,500,363	$ 108,197,069	$ —	$ 208,697,432

	Assets at Fair Value as of December 31, 2014 — Level 1	Level 2	Level 3	Total
Mutual funds	$ 183,196,798	$ —	$ —	$ 183,196,798
Stock funds	2,240,428	—	—	2,240,428
Br ok e r a ge account	305,828	—	—	305,828
Total assets at fair value	$ 185,743,054	$ —	$ —	$ 185,743,054

MASCO CORPORATION HOURLY 401(k) PLAN

NOTES TO FINANCIAL STATEMENTS, Continued

D. FAIR VALUE MEASUREMENTS (Concluded)

The following table summarizes investments measured at fair value using the NAV per share practical expedient as of December 31, 2015 . Were the Plan to initiate a full redemption of the collective trust fund, the investment adviser reserves the right to temporarily delay withdrawal from the trust in order to ensure the securities liquidations will be carried out in an orderly business manner.

December 31, 2015	Fair Value	Unfunded Commitments	Redemption Frequency (if currently eligible)	Redemption Notice Period
Collective trust funds:
FIAM Small Capitalization Core Commingled Pool Class D 1	$ 3,150,678	None	Daily	30 days
Fidelity® Diversified International Commingled Pool	$ 6,525,648	None	Daily	90 days
Fidelity® Low-Priced Stock Commingled Pool	$ 5,298,013	None	Daily	90 days
FIAM Target Date 2005 Commingled Pool Class X 1	$ 130,586	None	Daily	30 days
FIAM Target Date 2010 Commingled Pool Class X 1	$ 1,171,794	None	Daily	30 days
FIAM Target Date 2015 Commingled Pool Class X 1	$ 3,835,854	None	Daily	30 days
FIAM Target Date 2020 Commingled Pool Class X 1	$ 11,491,277	None	Daily	30 days
FIAM Target Date 2025 Commingled Pool Class X 1	$ 12,949,837	None	Daily	30 days
FIAM Target Date 2030 Commingled Pool Class X 1	$ 15,314,829	None	Daily	30 days
FIAM Target Date 2035 Commingled Pool Class X 1	$ 12,158,052	None	Daily	30 days
FIAM Target Date 2040 Commingled Pool Class X 1	$ 9,898,675	None	Daily	30 days
FIAM Target Date 2045 Commingled Pool Class X 1	$ 7,876,073	None	Daily	30 days
FIAM Target Date 2050 Commingled Pool Class X 1	$ 4,533,431	None	Daily	30 days
FIAM Target Date 2055 Commingled Pool Class X 1	$ 2,046,582	None	Daily	30 days
FIAM Target Date 2060 Commingled Pool Class X 1	$ 410,346	None	Daily	30 days
FIAM Target Date Income Commingled Pool Class X 1	$ 491,592	None	Daily	30 days
FIAM Core Plus Commingled Pool Class K 1	$ 10,913,802	None	Daily	30 days
Total Investments Measured at NAV	$ 108,197,069

1 These funds changed their legal names on February 12, 2016. The fund names listed represent the new legal name of the funds.

E. INCOME TAX STATUS

The IRS determined and informed the Company by letter dated November 6, 2014 that the Plan is designed in accordance with the applicable sections of the Internal Revenue Code ("Code"). The Plan has since been amended; however, the Plan administrator believes that the Plan is currently designed and being operated in compliance with the applicable requirements of the Code. Therefore, no provision for income taxes has been included in the Plan's financial statements.

Acco un ti ng p r inciples generall y ac c ep t ed i n the United States of Ame ri c a require Pla n m a n age ment to evaluate tax pos i t i o ns taken b y the Plan and recogn ize a tax liabili ty if the Plan has take n an uncer t ai n position that more l i k e ly t h an not would not b e s ustained upon exa m inat i o n b y the IRS. The Plan admini s t rator has anal y zed th e tax positions take n b y t he Pla n , and has conclud e d t h at as of December 31, 2015 , there are n o un c e rt ai n positions taken or exp e ct e d to be taken that would r e qu i re recognition of a li ab ili t y or disclosure i n th e financial state m e n ts. The Plan is subject to r o u tine audits by taxing ju risdictions; ho w e v er, th e re a re currently no audi t s f o r an y tax period in prog ress.

MASCO CORPORATION HOURLY 401(k) PLAN

NOTES TO FINANCIAL STATEMENTS, Concluded

F. PLAN TERMINATION

Altho ugh the Company has not e xpressed an i n t e nt to do so , the Com pany h a s the right at an y time to discontinue its contribu ti on s a n d to terminat e t h e Plan , subjec t to the provisions of ERISA . At the date o f a n y such termin a t i on , all partic ipan t s would become fully vested in their accounts and the Adm ini st r ative Committ ee of the Pl a n shall direct the T r u s t ee to dist rib ut e to the participant s all assets of th e Plan , net of any t er minatio n expen s e s w hi ch wi ll be prorat e d among the partici pa nts ' accou n ts .

G. RELATED PARTY TRANSACTIONS

Cert ain Plan invest m ents a r e shar es of collective trust funds and m utual funds managed by Fidel ity . Fid e l ity is also the T rustee as defin ed by t he P l an and , th eref ore , the purch ases and sales qual ify as pa rty - in - interest transactions . The r e were no fees paid by the Pla n for in v est m e nt management ser v i ces for the year ended December 31, 2015 . Notes receiv a b le f r om participant s ar e also considered party -i n - interest t ran s actions.

The Pla n inv e sts in a Masco Co r poration Common Stock Fund . As of December 31, 2015 a n d 2014 , t h e v a lue of Masco Corporation Comm o n Stock Fund was $1,801,139 and $2,240,428 , respect i vely .

H . SUBSEQUENT EVENTS

On January 1, 2016, Wellness Marketing Corporation was added as a currently participating employer; as a result, $447,382 in net assets were transferred into the Plan.

Effective January 1, 2016, Milgard Corporation's hourly employees are no longer eligible for profit sharing benefits.

The Plan has evaluated subsequ e nt events through th e date the financ ial s t a t eme n ts wer e issued .

MASCO CORPORATION HOURLY 401(k) PLAN

SCHEDULE H, LINE 4i - SCHEDULE OF ASSETS (HELD AT END OF YEAR)

December 31, 2015

(a)	(b) Identity of Issue, Borrower or Similar Party	(c) Description of Investment Including Maturity Date, Rate of Interest, Collateral, Par or Maturity Value and Number of Shares Outstanding	(e) Current Value
	Artisan Mid Cap Fund	Mutual Fund
	- Institutional Class	92,873 shares	$ 3,958,201
	JP Morgan Mid Cap Value Fund	Mutual Fund
	- Institutional Class	206,099 shares	7,001,184
	Vanguard Wellington Fund ™	Mutual Fund
	- Admiral™ Shares	324,075 shares	20,591,748
	Dodge & Cox Stock Fund	Mutual Fund
		27,113 shares	4,413,129
	Harbor Capital Appreciation Fund	Mutual Fund
	- Institutional Class	265,910 shares	16,169,966
**	Spartan® Extended Market Index Fund	Mutual Fund
	- Fidelity Advantage Class	53 shares	2,673
**	Fidelity® Institutional Money Market	Mutual Fund
	Government Portfolio - Institutional Class	23,621,330 shares	23,621,330
**	Fidelity® Independence Fund - Class K	Mutual Fund
		240,832 shares	8,667,529
**	Spartan® 500 Index Fund	Mutual Fund
	- Institutional Class	154,381 shares	11,086,076
**	Fidelity® Emerging Markets Fund - Class K	Mutual Fund
		74,899 shares	1,629,045
**	Spartan® International Index Fund	Mutual Fund
	- Fidelity Advantage Class	14,164 shares	508,929
**	Spartan® U.S. Bond Index Fund	Mutual Fund
	- Fidelity Advantage Class	41,666 shares	478,738
**	Fidelity® Diversified International	Collective Trust Fund
	Commingled Pool	615,627 shares	6,525,648
**	Fidelity® Low-Priced Stock	Collective Trust Fund
	Commingled Pool	490,557 shares	5,298,013
**	FIAM Small Capitalization Core	Collective Trust Fund
	Commingled Pool Class D	34,452 shares	3,150,678
**	FIAM Target Date Income	Collective Trust Fund
	Commingled Pool Class X	40,394 shares	491,592
**	FIAM Core Plus	Collective Trust Fund
	Commingled Pool Class K	612,103 shares	10,913,802

MASCO CORPORATION HOURLY 401(k) PLAN

SCHEDULE H, LINE 4i - SCHEDULE OF ASSETS (HELD AT END OF YEAR), Concluded

December 31, 2015

(a)	(b) Identity of Issue, Borrower or Similar Party	(c) Description of Investment Including Maturity Date, Rate of Interest, Collateral, Par or Maturity Value and Number of Shares Outstanding	(e) Current Value
**	FIAM Target Date 2005	Collective Trust Fund
	Commingled Pool Class X	10,250 shares	130,586
**	FIAM Target Date 2010	Collective Trust Fund
	Commingled Pool Class X	86,543 shares	1,171,794
**	FIAM Target Date 2015	Collective Trust Fund
	Commingled Pool Class X	284,559 shares	3,835,854
**	FIAM Target Date 2020	Collective Trust Fund
	Commingled Pool Class X	875,860 shares	11,491,277
**	FIAM Target Date 2025	Collective Trust Fund
	Commingled Pool Class X	957,828 shares	12,949,837
**	FIAM Target Date 2030	Collective Trust Fund
	Commingled Pool Class X	1,172,652 shares	15,314,829
**	FIAM Target Date 2035	Collective Trust Fund
	Commingled Pool Class X	914,827 shares	12,158,052
**	FIAM Target Date 2040	Collective Trust Fund
	Commingled Pool Class X	755,048 shares	9,898,675
**	FIAM Target Date 2045	Collective Trust Fund
	Commingled Pool Class X	597,578 shares	7,876,073
**	FIAM Target Date 2050	Collective Trust Fund
	Commingled Pool Class X	348,994 shares	4,533,431
**	FIAM Target Date 2055	Collective Trust Fund
	Commingled Pool Class X	146,919 shares	2,046,582
**	FIAM Target Date 2060	Collective Trust Fund
	Commingled Pool Class X	43,981 shares	410,346
	TopBuild Corp. Stock Fund	Other Stock Fund
		6,582 shares	202,531
**	Masco Corporation Company Stock Fund	Company Stock Fund
		63,644 shares	1,801,139
	Brokerage account	Brokerage Account
		368,145 shares	368,145
**	Notes Receivable from Participants	Ranging 1-15 years maturity with Rates of Interest, 3.25% - 8.25%	17,261,140
			$ 225,958,572

His t orical cost informa tio n is no lo nger req u ir ed on t he Sch edule o f As se ts ( He l d a t En d o f Year ) for par t ic ipant directed in v es tme nts .

** Th ese inv estments are with a party - i n -interes t.

MASCO CORPORATION HOURLY 401(k) PLAN

SIGNATURE

The Plan . Pursuant to t h e re qu ire m ents o f t h e Sec u rities Exchange Act o f 1 934, the tr u s t ees (or other persons who adm i n i s t er the employee benefit plan) h a v e duly caused t h is a nnual report to be sig n ed o n i t s behalf by the undersigned h ere u nto duly authorize d .

Masco Corporation Hourly 401(k) Plan
By:	Masco Corporation, Plan Administrator of the Masco Corporation Hourly 401(k) Plan

Date:
John G. Sznewajs
Vice President, Chief Financial Officer
Authorized Signatory

MASCO CORPORATION HOURLY 401 (k) PLAN

EXHIBIT INDEX

Exhibit Number	Description
23.1	Consent of Grant Thornton LLP relating to the Plan's financial statements

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We have issued our report dated June 24 , 2016 , with respect to the financial statements and supplemental schedule included in the Annual Report of the Masco Corporation Hourly 401(k) Plan on Form ll-K for the year ended December 31, 2015 . We hereb y consent to the incorporation by reference of said report in the Registration Statements of Masco Corporation on Form S-8 (File Nos. 333-74815 and 333-168827).

/s/ Grant Thornton LLP

Southfield, Michigan

June 24, 2016

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